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Business Trade Analysis of Denim Product.
Business Trade Analysis of Denim Product
Business Trade Analysis of Denim Product.
“All lAstInG BusInEss Is BuIlt on FrIEnDsHIp”
- Alfred A. Montaper
“A sAtIsFIED CustomEr Is tHE BEst BusInEss
strAtEGy oF All”
-Michael LeBoeuf
Business Trade Analysis of Denim Product.
Shanto-Mariam University of Creative technology
Course Name: ELECTRONIC COMMERCE
Course code: MMBA 705:
Assignment
On
Business Trade Analysis of Denim Product
Submitted To
A.H. Shohel Ahmed
Assistant Professor,
Department of CSE
Of SMUCT
Submitted By:
Group members of “INFINITY ’’
3rd
Semester
8th
Batch
MBA in PFM
Submission Date: July 11, 2015
Business Trade Analysis of Denim Product.
July 11, 2015
TO
A.H. Shohel Ahmed
Assistant Professor
Department of CSE
Of SMUCT
Subject: Acknowledgement on the project of Business Trade Analysis of Denim Product
Honorable Sir,
With due respect that, we would like to inform that, it is great pleasure for us to submit
the report on Business Trade Analysis of Denim Product We really learned a lot and
valuable experience and knowledge from collecting information; we have tried our level
best to prepare the report for your required standard.
We therefore, pray and hope that you would be kind enough to grant our report and
your kind review and consideration.
Sincerely yours
…………………
Md.Belal Uddin
Group Leader INFINITY
Business Trade Analysis of Denim Product.
S/L Name ID
1 Md. BelalUddin (Leader) 142153024
2 Md.RayhanLatif 142153022
3 Md. Nazmul Islam 142153021
4 Md. Shamim Hasnat 142153073
5 Md. Jewel Rana 142153029
6 Md. Abul Hasnat 142153056
7 Marjana Ashrafi 142153035
8 Mohammad Imrul Haque 142152030
9 Habib Md. Ruhul Amin 142153028
10 Abul Kasem Majumder 142153020
11 Md. Aslam Hossain 142153026
12 Sanowar Hossen 142153025
Business Trade Analysis of Denim Product.
Table of content
1. Introduction………………………………………………….…………01
 Pre-sale……………………………………………………..…………..02
 Execution…………………………………………………….………..02
 Settlement………………………………………………….………….02
2. Company details…………………………………………….…….03-05
3. Product detail……………………………………………….……..06-12
4. Product presale value ……………………………………………….13
5. Presale value define …………………………………………………13
6. Product raw material…………………………………………………14
7. Product cost specification ……………………………..…………..15
8. Total product cost…………………………………………………….16
9. Determine pre sell value ………………………………………….…17
10.Market compare (relative company)……………………………18-19
11.Web cost ………………………………………………………...……..19
12.Total taka invest……………………………………….………….…..20
13. How money will return if it is idle in bank …………………..…..21
14.Profit percentage …………………………………………………......22
15.Per sell value for market ………………………………………..…..23
16.Compare company ………………………………………………...…24
17.Discount with shop ………………………………………………..…24
18.Facilities compare ……………………………………………...…….25
19.Summary ………………………………………………………....……25
20.Conclusion ……………………………………………………….……26
Business Trade Analysis of Denim Product. Page 1
Introduction:
In Bangladesh E-commerce is already in operation for years. Export sector has the
great use of it. A major field of the use of e-commerce is ready made garments (RMG)
sector. A specific use of internet technology would be to access The Bangladesh
Garment Manufacturer Exporter Association’s (BGMEA) website, which provides a list
of member companies and key information regarding those firms. In addition, The three
dimensions of e-commerce are Business-to-Consumers (B2C), Business-to -Business
(B2B) and Business-to-Government (B2G). B2C e-commerce is unlikely to be of much
use in the near future in Bangladesh because of low per capita income, a weak
infrastructural and legal environment, lack of trust between business and consumers.
B2C for cross border trade is also limited by the factors suggested for the domestic
front.In addition, non-availability of international credit cards, foreign currency
remittance restrictions, delays and informal payments at customs clearance
evenfor small value and quantity items will discourage B2C.The B2B applicationalready
exists in the export sector of Bangladesh, especially in the Ready Made Garments
(RMG) industry. RMG has the lion’s share of the export earnings in Bangladesh. The
RMG sector has begun to use the Internet, and its dependence one commerce is likely
to grow in the coming years. The Internet would enable them to seek information about
potential buyer as well as raw material suppliers. Similarly the practice of posting
website individual producers has begun. However, if Bangladeshi producers are unable
to accommodate electronic transfer of payment and other facets of e-commerce,
the business opportunity will move on to countries that have developed such systems
Business Trade Analysis of Denim Product. Page 2
Presale :
Presale is a process or a set of activities normally carried out before a customer is acquired,
though sometimes presales also extends into the period the product or service is delivered to the
customer. In a denim production unit supplier should search buyer and negotiate to confirm
desire order. Manufacturer can get the whole idea of raw material sourcing on behalf of presale
activities.
Execution:
In the execution period supplier would follow up on the sourcing materials, production
planning and procedure and maintaining delivery works.
Settlement:
Settlement is an arrangement or adjustment, as of business affairs or a disagreement between two or
more business parties. As a garments manufacturer, supplier should settle the commercial issue
regarding on production quantity, quality, delivery date and the incoterms.
Search
Negotiate
Order
Deliver
Invoice
Payment
After Sales
Pre-Sale
Execution
Settlement
After Sale
EDI
Business Trade Analysis of Denim Product. Page 3
Company details:
We are selected the OPEX &SINHA GROUP
GENERAL
Opex is one of the largest garment manufacturing conglomerates in Asia and has a
complete vertical integrated setup in woven, Denim, knit and sweater with most
modern state of the art machineries from USA, Europe and Japan It is a private owned
company with an annual turnover of US g.350 million and annual export is about US g
250 million.
GARMENTS DIVISION
opex has over 18000 sewing machines distributed to 300 production lines including 44
Knit garment Production lines and 2000 Sweater machinesIt produces over 220,000
pieces of garments every day. The Production lines are broadly earmarked for Bottom,
Shirt and Knit separately.
BOTTOM FACTORIES
Opex has over 200 bottom production lines and produce over 140,000 pieces of
garments daily. These lines organized into dress pant, casual pant, cargo pant/short
and jeans. Dress and casual pant lines have some specialized sewing machines like
pocket welting machines, pattern Sewing machines, blind stitch machines, fly J-stitch
machines, etc. Finishing of casual and dress pant is done with lager and topper press
machines, seam opening and pressing machines, curing oven etc. Other than
standard denim production line Opex also has 16 dedicated specialized denim
production lines, equipped with fully automated computerized sewing and finishing
range machines from V.I.B.E Italy. Each line produces 2300-2500 pieces per day,
Totaling to 35,000 - 40,0000 pieces daily.
SHIRT FACTORIES
Opex has 48 dedicated shirt lines which produces 35,000 to 40,000 pieces of casual,
sports and formal dress shirts daily. The formal and dress shirt lines are equipped with
Droukoff Adler sewing machines of Germany fitted with servo motors and trimmers
which ensures consistency in sewing and eliminates puckering effects. Collar & cuff
making and setting, placket making, pocket making & setting and arm hole fusing are all
done with computer controlled automatic machines. The finishing units have automatic
collar, cuff, arm hole and body pressing machines for perfect finish.
KNIT GARMENT FACTORIES
Opex's 44 Knit garment lines have over 2000 sewing machines and it produces about
60,000 pieces of T-Shift, Polo Shirts and Fleece Top daily
SWEATER FACTORY
Business Trade Analysis of Denim Product. Page 4
Our major production is on 12 gauge. However we have production facilities in 10 , 7 , 5
and 3 gauges. Presently our production capacity is 100,000 pcs per month, recently
have gone into expansion this will in hands our capacities by two hundred thousand
from Dec 2009.
DRY AND WET PROCESSING FACILITIES
Our in-house Dry and Wet processing units includes Hand sand, brushing, chemical
spraying, laser blasting Flexi, Crash machine etc and post cure wrinkle free
processing facilities. It has most Advance machine like MARGARETA, for 3D effect.
Recently we have added FLEXI 25O laser Machine, G2 from GFK Spain and much
equipment including conveyor oven and chamber type Oven for external dry finish
effect Opex has one of the most modern denim washing facilities in the country
equipped with computer controlled front loading European machines. Denim wash
capacity is about 1,00,000 pieces daily. It also has 55 belly type machines to take care
of other soft washes.
BACKWARD LINKAGE AND VERTICAL SETUP OF OPEX
Customer's increasing need of varied range of fabric, shofter lead time, sharper price
and consistent quality, LedOpex to set up its own vertical set up in 1995, named as
Sinha Textile Group. The objectives of these Facilities are; attaining consistency in
fabric quality, developing specialized fabric & offering competitive price
and shorter lead time. Opex today has the entire chain of backward linkage facilities
for woven and knits comprising of spinning, weaving, knitting, yarn dyeing, fabric
dyeing, printing and special finishes. With State of the art machinery and texllles
"*p6,ti from'horie& abroad h5ve been combined together to make wide range of high
quality fabric.
SUPPORTING ESTABLISH M ENTS
To support garments manufacturing, Opex has its own button, label , Sewing Thread,
Carton and Poly bagin-housefacitity. We also have in-house embroidery and screen
printing facility.
DENIM VILLAGE
We have established a massive project named denim village where we have both
dyeing ranges(Slasher.& Rope). Both dyeing units are capable of dyeing 3 Million yards
per month, ranging from 4'00 ozlsq yards to iS.OOozlsq yards. We are able io produce
puie -Indigo (any depth), Sulpherbottomings and toppings, our finishing range is state of
the art only of its kind in Bangladesh can finish Flat, over dyeing in one go' Opex can
convert all its fabric into Garments and produce about 2 Million Jeans and Jacket per
day' Opex has a design team located in New York city to be in constant touch with
customer and give design & development support.
Buyers
Currently we are working with: LEVI'S, VF, AMERICAN TCP, HANES, HAGGERS, G-
TEX, PERRY ELLIS, SEARS, EAGLE, NAUTICA, JCPenney, TARGET, PVFIi
GAP,OXFORD, I ONE(Japanese), OSHKOSH and many more.t,
Business Trade Analysis of Denim Product. Page 5
CONCLUSION
Opex with over 45,000 work forces is in business for more than two decades. It always
tries and maintains its commitment of on time delivery, quality and competitive price.
Over the years, the business relations with all customers and partners have grown
stronger based on mutual trust and commitment. Opex is an ethical and compliant
company, putting in maximum emphasize on developing human values, qualities of
human life and comfort of work environment. It is committed to ensure ethical source
place for the customer.
OFFICES
OpexDenim Ltd.
House#56/1, Block-C,
Section - 13, Mirpur,
Dhaka-1216, Bangladesh
HONGKONG:
Joyful Miles Ltd.,
168 Alpha House
27-33 Nathan road, Tsimshatsui
Tel :2721-1950(5 lines), Fax : 272L-L967
E-mail :mhkhan@opexhkg.com,hk
USA
17130 Dallas Parkway, Dallas Texas :75248
Tel : 214-403-7444, Fax z 2L4-403-7 LL6
EUROPE:
GrafenbergerAllee 163
D-40237 Dusseldrof/Germany
Tel : (49) 2LL-96266-L0, Fax : (49) 211-9626-LLl22
Cell : (a9) L772-241-B5BL
E-mail : smirza@t-online.de, mirza-fashion@t-online.de
China:
RM 2607 Jingan China Tower No. 17O1 Beijing
West Road, JinganDest. Shanghai 20040, China
Tel : 86-52884870-2, E-mail : cathy@opexsh.com
Business Trade Analysis of Denim Product. Page 6
Product detail:
Our desire product is basic five pocket denim pant with enzyme and silicone wash with
grinding
SAMPLE TO BE - FABRIC AND WASH AS ORIGINAL
Business Trade Analysis of Denim Product. Page 7
PLEASE ENSURE FABRIC AND WASH IS FOLLOWED EXACTLY AS
SAMPLE
Business Trade Analysis of Denim Product. Page 8
Back pocket:
HEATSEAL AS NEW
BRANDING PACK
BACK POCKET
LSAW - MIRROR
ON OPPOSITE SIDE
Business Trade Analysis of Denim Product. Page 9
LABELLING ON PAGE 50 OF MANUAL
Business Trade Analysis of Denim Product. Page 10
OVER RIDER PG 12 OF MANUAL
Business Trade Analysis of Denim Product. Page 11
Business Trade Analysis of Denim Product. Page 12
Business Trade Analysis of Denim Product. Page 13
Product presale value:
OPEX & SINHA GROUP determine their denim pant presale value as $3.80 / pcs.this
value comes from their denim production unit.
Presale value define:
At first OPEX & SINHA GROUP find their cost and then they fixed presale value
PARTICULARS
Factory Production Cost (with 2% profit)
FABRIC COST + 5% (import commercial cost).
ACCYS COST + 2% (import commercial cost)
Wash (Enzyme wash + Silicon)
Dry Process (Hand Sand atfrnt& back)
Tint
Emb
Print
Any other value addition
LAB TEST
Export Commercial / Finance Cost
Marketing & Merchandising Cost
Commercial & Finance Overhead
Head Office/Common Overhead Cost
After analyzing above matters, the company can define the presale value.
Business Trade Analysis of Denim Product. Page 14
Product raw materials:
Materials Sourcing Company
1. Denim fabric ……………………………………… Sinha textile Group
2. Sewing threads…………………………………………….….Montrims Ltd.
3. Main label …………………………………………..Avery Denison BD Ltd.
4. Size label…………………………………………... Avery Denison BD Ltd.
5. Care label ……………………………………….….Avery Denison BD Ltd.
6. Price tag ………………………………………….…Avery Denison BD Ltd.
7. Security tag …………………………………….…..Avery Denison BD Ltd.
8. Hang tag……………………………………….……Avery Denison BD Ltd.
9. Patch …………………………………………….… Avery Denison BD Ltd.
10.Button …………………………………………..…shikder Accessories Ltd.
11.Shank button………………………………..…… shikder Accessories Ltd.
12.Snap button …………………………………..…. shikder Accessories Ltd.
13.Rivet ………………………………………….….. shikder Accessories Ltd.
14.Gum tape ………………………………………….. Avery Denison BD Ltd.
15.Zipper ……………………………………………………...……YKK BD Ltd.
16.Poly bag …………………………………………… Avery Denison BD Ltd.
17.Poly sticker ……………………………………….. Avery Denison BD Ltd.
18.Swift sticker ………………………………………. Avery Denison BD Ltd.
19.Tag pin ……………………………………………. Avery Denison BD Ltd.
20.Ring ……………………………………………….. Avery Denison BD Ltd.
21.Twill tape…………………………………………... Avery Denison BD Ltd.
22.Elastic……………………………………………… Avery Denison BD Ltd.
23. Threads ………………………………………….. Avery Denison BD Ltd.
24.Wash label ……………………………………….. Avery Denison BD Ltd.
25.Leather sticker …………………………………… Avery Denison BD Ltd.
26.Carton ………………………………………………..….. Mukta Enterprise.
Business Trade Analysis of Denim Product. Page 15
Product cost specification:
FABRIC FABRIC CONSTRUCTION
(per
yd) YY PRICE
Shell - 98% CTN 2 % S
DEX RING SPUN - 9.60 OZ $2.40 1.67 $4.01
Pocket - COTTON FRONT POCKET $0.58 0.26 $0.15
Fusi Inter Lining $0.06 0.25 $0.02
Fabric Total Cost $4.17
CM $1.20
WASH
(IF ANY TINT COST WILL INCREASE $ .20 PER
GARMENTS) $0.55
Trims & Packaging ITEM U P
CON
PG PRICE
Sewing Thread $0.15
Shank Button - Waist 32 Line (WIL) $0.030 1.05 $0.03
Shank Button - FLY 24 Line (WIL) $0.025 3.15 $0.08
Rivet 1 x 4 (WIL) $0.010 4.2 $0.04
Back pocket EMB (M J L )
$
- 0 $0.00
Heat Seal Label (WIL) $0.050 1.03 $0.05
Care Label (WIL) $0.025 1.03 $0.03
Sewing Ticket (WIL) $0.030 1.03 $0.03
Over Rider (WIL) $0.020 1.03 $0.02
Warning Ticket (WIL) $0.060 1.03 $0.06
Leg Sticker (WIL) $0.080 1.03 $0.08
Kimball Sticker (WIL) $0.010 1.03 $0.01
Poly Bag (M J L ) $0.050 1.03 $0.05
Carton Box (M J L ) $0.100 1.03 $0.10
Packing material $0.02
Business Trade Analysis of Denim Product. Page 16
Total product cost:
COST BREAK DOWN(New Format)
SL
#
PARTICULARS Cost $
%
1 Fty Production Cost (with 2% profit) $ 7.27
14.95
2
FABRIC COST + 5% (import commercial cost).
Please see below note
$ 23.18 47.70
3 ACCYS COST + 2% (import commercial cost) $ 8.16 17.94
4 Wash (Enzyme wash + Silicon) $ 2.50 5.14
5 Dry Process ( Hand Sand at front & back) $ 2.00 4.12
6 Tint $ 0.80 1.65
7 Emb $ - 0.00
8 Print
9 Any other value addition
10 LAB TEST $ 0.10 0.21
11 Export Commercial / Finance Cost $0.05/Pc
$
2.28
/Dzn
1.23
12 Marketing & Merchandising Cost $0.07/Pc 1.73
13 Commercial & Finance Overhead $0.02/Pc 0.49
14 Head Office/Common Overhead Cost $0.05/Pc 1.23
15 Total (serial 1 to 14) $ 46.28
16 5% miscellaneous cost on serial 15 $ 2.31 4.76
17 Total (serial 15+16) $ 48.59
18 Buyer Commission (if applicable)
19 FOB (serial 17 + 18) $ 48.59
20 Deferred payment (if applicable)
21 Final FOB (Serial 19 +20) as per cost analysis $ 48.59
22 CONFIRMED FOB $ 45.47
Business Trade Analysis of Denim Product. Page 17
Summary of Cost B/down
PARTICULARS
CM With
Commercial
CM Without
commercial
Fabric cost 22.08 $ 23.18
Accys cost 8.00 $ 8.16
Wash (Enzyme
wash + Silicon)
$ 2.50 $ 2.50
Dry Process (
Hand Sand at
frnt& back)
$ 2.00 $ 2.00
Tint $ 0.80 $ 0.80
Emb $ - $ -
Lab Test $ 0.10 $ 0.10
CM
$
10.00
$ 8.74
FOB per Doz 45.47 $ 45.47
$ 3.79 /PC
Determine presale value:
So assuming the entire cost Opex Sinha group set a final presale value of $ 4.90 / pc
with profit for this denim pant.
Business Trade Analysis of Denim Product. Page 18
Markets compare (Relative company)
Comparing with other companies is a very much important issue for business. Its helps
to determine the perfect value of any product regarding on quality and quantity, for our
product we compare with Experience Clothing Company Ltd. Partex DenimLtd. and
Mahmud jeans Ltd.
The descriptions of above competitors are given below:
Experience Clothing Company Ltd.
Experience Clothing Company Ltd. is a renowned woven manufacturing company in
DEPZ. It’s a Europe based Pakistani owned factory which established on 1995. They
have large number of denim orders from various buyer of European market.
Partex Denim Ltd.
Partex Denim Ltd. is one of the biggest denim producing factories in Bangladesh which
also owned by Bangladeshi owner. It is a sister concern of Partex Group which founded
by Mr. M.A Hasem in 1959. But the denim production unit established on 2005 and now they
are a leading denim supplier in Asian, European and American Market for their competitive
price and high class quality.
Mahmud Jeans Ltd.
Mahmud Jeans Ltd is a sisters concern of Mahmud Group which established on 1997 at
Chittagong. In 2006 Relying on its strong past experience Mahmud Group decided to
reshapeits business by taking significant step towards leading the denim industry at
Chandra,Kaliakoir,Gazipurand came up with composite state of the art denim mill.
Consisting of Mahmud Spinning Ltd, Mahmud Denims Ltd, Mahmud Jeans Ltd &
Mahmud Washing Ltd; Mahmud Group is now one of the leading denim companies of
the country.
Business Trade Analysis of Denim Product. Page 19
Website Cost:
Website is the set of related web pages typically served from a single web domain. A
website is hosted on at least one web server, accessible via a network such as
the Internet or a private local area network through an Internet address known as
a uniform resource locator (URL) called the web address. All publicly accessible
websites collectively constitute the World Wide Web.
Websites can be divided into two broad categories - static and dynamic or interactive.
Interactive sites are part of the Web 2.0 community of sites, and allow for interactivity
between the site owner and site visitors. Static sites serve or capture information but do
not allow engagement with the audience directly.
Some web sites are informational or produced by enthusiasts or for personal use or
entertainment. Many web sites do aim to make money, using one or more business
models and E-commerce activities.
Opex Sinha Group has a dynamic website addressed http://sinhagroup.com/ which
developed and maintained by e-soft solutions bd. Their website cost is 30000tk. but on
this project yearly maintaining cost is 9000tk.
Company
Name
Total
Machineries
Production
Capacity
Target
Market
Unite
Price
Annual
Turnover
Comments
OpexSinha
Group Ltd.
18000 Nos. 220000 pcs.
/Day
Asian,
European,
American
$ 3.80
per pcs.
US$ 350
Million
Reasonable
price & good
quality
Experience
Clothing
Company
Ltd.
5100 Nos. 60000 pcs.
/Day
European,
American
$ 5.60
per pcs.
US $ 125
Million
High quality
with much
price
Partex
Denim Ltd.
1600 Nos. 26000 pcs.
/Day
North
American,
Europe,
Middle
East
$ 3.20
per pcs.
US $ 60
Million
Product
quality is
good with
competitive
price
Mahmud
jeans Ltd.
3200 Nos. 35000 pcs.
/Day
European,
Asian,
Middle
East
$ 4.10
per pcs.
US $ 102
Million
Better quality
with good
price
Business Trade Analysis of Denim Product. Page 20
Total Taka Invest
Investment is time, energy, or matter spent in the hope of future benefits actualized
within a specified date or time frame. Investment has a different meaning
in finance from that in economics.
In finance, investment is buying or creating an asset with the expectation of
capital appreciation, dividends (profit), interest earnings, rents, or some combination of
these returns. This may or may not be backed by research and analysis. Most or all
forms of investment involve some form of risk, such as investment in equities, property,
and even fixed interest securities which are subject, among other things, to inflation risk.
It is indispensable for project investors to identify and manage the risks related to the
investment.
In Opex Sinha Group, investments of an order of 3600pcs Denim pant for Ellece Price
Buyer. The investment regarding on this order is given below:
Land Depreciation…………………………………….16000/-
Fabric Cost……………………………………………..514800/-
Accessories Cost………………………………………187200/-
Wages/salary ………………………………………….120000/-
Machinery Depreciation ……………………………...24400/-
Website cost …………………………………………...9000/-
Transport cost …………………………………………10800/-
Utility ……………………………………………………10500/-
Wash+Dye+ Emb………………………………………80000/-
Miscellaneous Cost …………………….……………..95000/-
-----------------------------------------------------------------------------------
Total = 1067700/-
Business Trade Analysis of Denim Product. Page 21
How money will return if it is idle in bank
Suppose, if the money keeps idle or deposited to a bank in Bangladesh as like as Brac
Bank, then the return is;
FV= PV Here,
= 1067700 FV = Future Value
= 1126423.5 PV = Present value
i = Interest rate (5.5%)
n = Year
So, if the money will be idle for a year in Brac Bank, then the return is BDT. 11,26,423.5.
Business Trade Analysis of Denim Product. Page 22
Profit percentage
Total Selling Price 1375920 ($1=78tk.)
Total Cost - 1067700
Total profit = 308220/-
We know,
Profit percentage = (total profit / total cost) 100
= (308220 / 1067700) 100
= 28.87 %
These Denim projects give 28.87% profit where the Bank usually gives 5.5% interest.
So investing on this project is more profitable then keeps this money idle in Bank.
Business Trade Analysis of Denim Product. Page 23
Per sell Value for Market
Company Product Value (on Retail/Market)
Asian European American
Opex Sinha
Group.
Denim Pant $17.14
(Oshkosh)
$67.50
(NAUTICA)
$53.20(LEVI'S)
Experience
clothing
company Ltd.
Denim Pant --------
£30.00 (Tesco) $35 (Wal Mart –
Wrangler )
Partex Denim
Ltd.
Denim Pant -------- £35.00 ( NEXT) $43.74(H&M)
Mahmud Jeans
Ltd.
Denim Pant $45.56
(JC Penny)
£31.25
(Charles
Vogele)
$40.40 (Marks)
Business Trade Analysis of Denim Product. Page 24
Market Compare & Discount with Shop
Opex Sinha Group, Experience Clothing company Ltd., Partex Denim Ltd. And Mahmud
Jeans Ltd. are maintaining business with some buyers and brands in Asian, European
and American Market. Their nominal Buyers are. So, the competitive scenario of those
Brands on mentioned Markets are shown below…
Company Product Price (on Retail/Market) Comments
Asian European American
Opex Sinha
Group.
Denim Pant $12.00
(Oshkosh)
After 30% off
$44.50
(NAUTICA) After
40% off
$39.90
(LEVI'S) After
25% off
Sell on
reasonable
price to
renowned
brands
Experience
clothing
company Ltd.
Denim Pant --------
£15.00 (Tesco)
After 50% off
$35 (Wal Mart
– Wrangler ) Legitimate
price with
high
standard
Partex
Denim Ltd.
Denim Pant -------- £35.00
( NEXT)
$34.99
(H&M) After
20% off
Proper
standard
products with
modest price
Mahmud
Jeans Ltd.
Denim Pant $36.45 (JC
Penny) After
25% off
£25.00
(Charles
Vogele) After
20% off
$49.99
(Marks) After
10% off
Condign
price having
better
standard
with brand
Business Trade Analysis of Denim Product. Page 25
Facilities Compare
Company Comparing Issues Comments
Quality
Standar
d
Fire &
Safety
Complianc
e
Location After
Sale
Service
Opex
Sinha
Group.
Maintain
AQL 2.5
& 4
Mostly
Maintain
Modern
equipmen
t &
regular
maneuver
ISO
9001:2000
ILL’06
And
Maintain
Oeko-tex,
WRAP,BSCI,
Moody,
Mirpur-13
Dhaka Return
on Mould
problem,
Discount
on repeat
order
Having
production
friendly
environment
with proper
management
Experienc
e clothing
company
Ltd
Maintain
AQL4.0
mostly
and lean
program
Maintain
Modern
equipmen
t &
regular
maneuver
ISO
9001:2000
ILL’06 and
maintain
REACH,
MSN.
WRAP
BSCI,
DEPZ
Ashulia,Dhak
a
N/A Locate on
industrial
friendly area
with proper
compliance &
standard
goods
Partex
Denim
Ltd.
Maintain
AQL 2.5
& 4
Mostly &
lean
program
Maintain
Modern
equipmen
t &
regular
maneuver
ISO
9001:2000
ILL’06, and
maintain
Oeko-tex
WRAP,BSCI,
REACH
Rajendrapur,
Gazipur
N/A They believe
in quality and
safe working
environment
Mahmud
Jeans Ltd.
Maintain
AQL 2.5
& 4
Mostly
Maintain
Modern
equipmen
t &
regular
maneuver
ISO
9001:2000
ILL’06 and
maintain
MSN, Oeko-
tex, BSCI,
WRAP
Chandra,Gazi
pur
N/A The Place of
total
compliance
with better
service
Business Trade Analysis of Denim Product. Page 26
Summery
In this assignment we come to know about a view on denim market by the source of
Opex Sinha Group, Experience Clothing Company Ltd., Partex Denim Ltd. and Mahmud
Jeans Ltd. as well as the International Market of Asia, Europe and American region. It
also describes the raw material sourcing, proper pricing & merchandising, costing &
consumption with a comparison with relative companies. It shows pay back on the
investment of a denim project. It also gives a review on the mood of relation between
Buyer & Seller with Manufacturers. We can also find out the demand of Denims in the
market with effective price. By a research on this assignment anyone can understand
about the forward and backward linkage of denim industry as well as RMG sector.
Denim is now a fashion icon. So, it’s a pleasure to doing a project on denim with its total
information with total contiguity of honorable A.H. Shohel Ahmed Sir.
Conclusion
Ready Made Garment industry is the leading economic sector in Bangladesh. However
RMG sector has emerged as the biggest earner of foreign currency. The RMG sector
has experienced an exponential growth since the 1980s. The sector contributes
significantly to the GDP. It also provides employment to around 4.2 million
Bangladeshis, mainly women from low income families. This sector also contributes
around 13 percent to the GDP, which was only around 3 percent in 1991. More than
thirteen thousand factories are running successfully in this country now. In spite of some
incoherent problem this sector has bright potentiality. Denim has a big share on this
market. A very big amount of denim based order completed by the factories every year.
Among them many companies started fully separate denim production unit to perfectly
go through with orders. So, the importance of denim is undeniable for the RMG sector
of Bangladesh. So, the government and proper authorities should take necessary steps
to make this sector more fruitful for our economy
Business Trade Analysis of Denim Product. Page 27
Some Memorable Moment
Business Trade Analysis of Denim Product. Page 28
Some Memorable Moment
Business Trade Analysis of Denim Product. Page 29
Business Trade Analysis of Denim Product. Page 30
Business Trade Analysis of Denim Product. Page 31
Business Trade Analysis of Denim Product. Page 32
Business Trade Analysis of Denim Product. Page 33
Thanks

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Business Trade Analysis of New Product

  • 1. Business Trade Analysis of Denim Product. Business Trade Analysis of Denim Product
  • 2. Business Trade Analysis of Denim Product. “All lAstInG BusInEss Is BuIlt on FrIEnDsHIp” - Alfred A. Montaper “A sAtIsFIED CustomEr Is tHE BEst BusInEss strAtEGy oF All” -Michael LeBoeuf
  • 3. Business Trade Analysis of Denim Product. Shanto-Mariam University of Creative technology Course Name: ELECTRONIC COMMERCE Course code: MMBA 705: Assignment On Business Trade Analysis of Denim Product Submitted To A.H. Shohel Ahmed Assistant Professor, Department of CSE Of SMUCT Submitted By: Group members of “INFINITY ’’ 3rd Semester 8th Batch MBA in PFM Submission Date: July 11, 2015
  • 4. Business Trade Analysis of Denim Product. July 11, 2015 TO A.H. Shohel Ahmed Assistant Professor Department of CSE Of SMUCT Subject: Acknowledgement on the project of Business Trade Analysis of Denim Product Honorable Sir, With due respect that, we would like to inform that, it is great pleasure for us to submit the report on Business Trade Analysis of Denim Product We really learned a lot and valuable experience and knowledge from collecting information; we have tried our level best to prepare the report for your required standard. We therefore, pray and hope that you would be kind enough to grant our report and your kind review and consideration. Sincerely yours ………………… Md.Belal Uddin Group Leader INFINITY
  • 5. Business Trade Analysis of Denim Product. S/L Name ID 1 Md. BelalUddin (Leader) 142153024 2 Md.RayhanLatif 142153022 3 Md. Nazmul Islam 142153021 4 Md. Shamim Hasnat 142153073 5 Md. Jewel Rana 142153029 6 Md. Abul Hasnat 142153056 7 Marjana Ashrafi 142153035 8 Mohammad Imrul Haque 142152030 9 Habib Md. Ruhul Amin 142153028 10 Abul Kasem Majumder 142153020 11 Md. Aslam Hossain 142153026 12 Sanowar Hossen 142153025
  • 6. Business Trade Analysis of Denim Product. Table of content 1. Introduction………………………………………………….…………01  Pre-sale……………………………………………………..…………..02  Execution…………………………………………………….………..02  Settlement………………………………………………….………….02 2. Company details…………………………………………….…….03-05 3. Product detail……………………………………………….……..06-12 4. Product presale value ……………………………………………….13 5. Presale value define …………………………………………………13 6. Product raw material…………………………………………………14 7. Product cost specification ……………………………..…………..15 8. Total product cost…………………………………………………….16 9. Determine pre sell value ………………………………………….…17 10.Market compare (relative company)……………………………18-19 11.Web cost ………………………………………………………...……..19 12.Total taka invest……………………………………….………….…..20 13. How money will return if it is idle in bank …………………..…..21 14.Profit percentage …………………………………………………......22 15.Per sell value for market ………………………………………..…..23 16.Compare company ………………………………………………...…24 17.Discount with shop ………………………………………………..…24 18.Facilities compare ……………………………………………...…….25 19.Summary ………………………………………………………....……25 20.Conclusion ……………………………………………………….……26
  • 7. Business Trade Analysis of Denim Product. Page 1 Introduction: In Bangladesh E-commerce is already in operation for years. Export sector has the great use of it. A major field of the use of e-commerce is ready made garments (RMG) sector. A specific use of internet technology would be to access The Bangladesh Garment Manufacturer Exporter Association’s (BGMEA) website, which provides a list of member companies and key information regarding those firms. In addition, The three dimensions of e-commerce are Business-to-Consumers (B2C), Business-to -Business (B2B) and Business-to-Government (B2G). B2C e-commerce is unlikely to be of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front.In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance evenfor small value and quantity items will discourage B2C.The B2B applicationalready exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry. RMG has the lion’s share of the export earnings in Bangladesh. The RMG sector has begun to use the Internet, and its dependence one commerce is likely to grow in the coming years. The Internet would enable them to seek information about potential buyer as well as raw material suppliers. Similarly the practice of posting website individual producers has begun. However, if Bangladeshi producers are unable to accommodate electronic transfer of payment and other facets of e-commerce, the business opportunity will move on to countries that have developed such systems
  • 8. Business Trade Analysis of Denim Product. Page 2 Presale : Presale is a process or a set of activities normally carried out before a customer is acquired, though sometimes presales also extends into the period the product or service is delivered to the customer. In a denim production unit supplier should search buyer and negotiate to confirm desire order. Manufacturer can get the whole idea of raw material sourcing on behalf of presale activities. Execution: In the execution period supplier would follow up on the sourcing materials, production planning and procedure and maintaining delivery works. Settlement: Settlement is an arrangement or adjustment, as of business affairs or a disagreement between two or more business parties. As a garments manufacturer, supplier should settle the commercial issue regarding on production quantity, quality, delivery date and the incoterms. Search Negotiate Order Deliver Invoice Payment After Sales Pre-Sale Execution Settlement After Sale EDI
  • 9. Business Trade Analysis of Denim Product. Page 3 Company details: We are selected the OPEX &SINHA GROUP GENERAL Opex is one of the largest garment manufacturing conglomerates in Asia and has a complete vertical integrated setup in woven, Denim, knit and sweater with most modern state of the art machineries from USA, Europe and Japan It is a private owned company with an annual turnover of US g.350 million and annual export is about US g 250 million. GARMENTS DIVISION opex has over 18000 sewing machines distributed to 300 production lines including 44 Knit garment Production lines and 2000 Sweater machinesIt produces over 220,000 pieces of garments every day. The Production lines are broadly earmarked for Bottom, Shirt and Knit separately. BOTTOM FACTORIES Opex has over 200 bottom production lines and produce over 140,000 pieces of garments daily. These lines organized into dress pant, casual pant, cargo pant/short and jeans. Dress and casual pant lines have some specialized sewing machines like pocket welting machines, pattern Sewing machines, blind stitch machines, fly J-stitch machines, etc. Finishing of casual and dress pant is done with lager and topper press machines, seam opening and pressing machines, curing oven etc. Other than standard denim production line Opex also has 16 dedicated specialized denim production lines, equipped with fully automated computerized sewing and finishing range machines from V.I.B.E Italy. Each line produces 2300-2500 pieces per day, Totaling to 35,000 - 40,0000 pieces daily. SHIRT FACTORIES Opex has 48 dedicated shirt lines which produces 35,000 to 40,000 pieces of casual, sports and formal dress shirts daily. The formal and dress shirt lines are equipped with Droukoff Adler sewing machines of Germany fitted with servo motors and trimmers which ensures consistency in sewing and eliminates puckering effects. Collar & cuff making and setting, placket making, pocket making & setting and arm hole fusing are all done with computer controlled automatic machines. The finishing units have automatic collar, cuff, arm hole and body pressing machines for perfect finish. KNIT GARMENT FACTORIES Opex's 44 Knit garment lines have over 2000 sewing machines and it produces about 60,000 pieces of T-Shift, Polo Shirts and Fleece Top daily SWEATER FACTORY
  • 10. Business Trade Analysis of Denim Product. Page 4 Our major production is on 12 gauge. However we have production facilities in 10 , 7 , 5 and 3 gauges. Presently our production capacity is 100,000 pcs per month, recently have gone into expansion this will in hands our capacities by two hundred thousand from Dec 2009. DRY AND WET PROCESSING FACILITIES Our in-house Dry and Wet processing units includes Hand sand, brushing, chemical spraying, laser blasting Flexi, Crash machine etc and post cure wrinkle free processing facilities. It has most Advance machine like MARGARETA, for 3D effect. Recently we have added FLEXI 25O laser Machine, G2 from GFK Spain and much equipment including conveyor oven and chamber type Oven for external dry finish effect Opex has one of the most modern denim washing facilities in the country equipped with computer controlled front loading European machines. Denim wash capacity is about 1,00,000 pieces daily. It also has 55 belly type machines to take care of other soft washes. BACKWARD LINKAGE AND VERTICAL SETUP OF OPEX Customer's increasing need of varied range of fabric, shofter lead time, sharper price and consistent quality, LedOpex to set up its own vertical set up in 1995, named as Sinha Textile Group. The objectives of these Facilities are; attaining consistency in fabric quality, developing specialized fabric & offering competitive price and shorter lead time. Opex today has the entire chain of backward linkage facilities for woven and knits comprising of spinning, weaving, knitting, yarn dyeing, fabric dyeing, printing and special finishes. With State of the art machinery and texllles "*p6,ti from'horie& abroad h5ve been combined together to make wide range of high quality fabric. SUPPORTING ESTABLISH M ENTS To support garments manufacturing, Opex has its own button, label , Sewing Thread, Carton and Poly bagin-housefacitity. We also have in-house embroidery and screen printing facility. DENIM VILLAGE We have established a massive project named denim village where we have both dyeing ranges(Slasher.& Rope). Both dyeing units are capable of dyeing 3 Million yards per month, ranging from 4'00 ozlsq yards to iS.OOozlsq yards. We are able io produce puie -Indigo (any depth), Sulpherbottomings and toppings, our finishing range is state of the art only of its kind in Bangladesh can finish Flat, over dyeing in one go' Opex can convert all its fabric into Garments and produce about 2 Million Jeans and Jacket per day' Opex has a design team located in New York city to be in constant touch with customer and give design & development support. Buyers Currently we are working with: LEVI'S, VF, AMERICAN TCP, HANES, HAGGERS, G- TEX, PERRY ELLIS, SEARS, EAGLE, NAUTICA, JCPenney, TARGET, PVFIi GAP,OXFORD, I ONE(Japanese), OSHKOSH and many more.t,
  • 11. Business Trade Analysis of Denim Product. Page 5 CONCLUSION Opex with over 45,000 work forces is in business for more than two decades. It always tries and maintains its commitment of on time delivery, quality and competitive price. Over the years, the business relations with all customers and partners have grown stronger based on mutual trust and commitment. Opex is an ethical and compliant company, putting in maximum emphasize on developing human values, qualities of human life and comfort of work environment. It is committed to ensure ethical source place for the customer. OFFICES OpexDenim Ltd. House#56/1, Block-C, Section - 13, Mirpur, Dhaka-1216, Bangladesh HONGKONG: Joyful Miles Ltd., 168 Alpha House 27-33 Nathan road, Tsimshatsui Tel :2721-1950(5 lines), Fax : 272L-L967 E-mail :mhkhan@opexhkg.com,hk USA 17130 Dallas Parkway, Dallas Texas :75248 Tel : 214-403-7444, Fax z 2L4-403-7 LL6 EUROPE: GrafenbergerAllee 163 D-40237 Dusseldrof/Germany Tel : (49) 2LL-96266-L0, Fax : (49) 211-9626-LLl22 Cell : (a9) L772-241-B5BL E-mail : smirza@t-online.de, mirza-fashion@t-online.de China: RM 2607 Jingan China Tower No. 17O1 Beijing West Road, JinganDest. Shanghai 20040, China Tel : 86-52884870-2, E-mail : cathy@opexsh.com
  • 12. Business Trade Analysis of Denim Product. Page 6 Product detail: Our desire product is basic five pocket denim pant with enzyme and silicone wash with grinding SAMPLE TO BE - FABRIC AND WASH AS ORIGINAL
  • 13. Business Trade Analysis of Denim Product. Page 7 PLEASE ENSURE FABRIC AND WASH IS FOLLOWED EXACTLY AS SAMPLE
  • 14. Business Trade Analysis of Denim Product. Page 8 Back pocket: HEATSEAL AS NEW BRANDING PACK BACK POCKET LSAW - MIRROR ON OPPOSITE SIDE
  • 15. Business Trade Analysis of Denim Product. Page 9 LABELLING ON PAGE 50 OF MANUAL
  • 16. Business Trade Analysis of Denim Product. Page 10 OVER RIDER PG 12 OF MANUAL
  • 17. Business Trade Analysis of Denim Product. Page 11
  • 18. Business Trade Analysis of Denim Product. Page 12
  • 19. Business Trade Analysis of Denim Product. Page 13 Product presale value: OPEX & SINHA GROUP determine their denim pant presale value as $3.80 / pcs.this value comes from their denim production unit. Presale value define: At first OPEX & SINHA GROUP find their cost and then they fixed presale value PARTICULARS Factory Production Cost (with 2% profit) FABRIC COST + 5% (import commercial cost). ACCYS COST + 2% (import commercial cost) Wash (Enzyme wash + Silicon) Dry Process (Hand Sand atfrnt& back) Tint Emb Print Any other value addition LAB TEST Export Commercial / Finance Cost Marketing & Merchandising Cost Commercial & Finance Overhead Head Office/Common Overhead Cost After analyzing above matters, the company can define the presale value.
  • 20. Business Trade Analysis of Denim Product. Page 14 Product raw materials: Materials Sourcing Company 1. Denim fabric ……………………………………… Sinha textile Group 2. Sewing threads…………………………………………….….Montrims Ltd. 3. Main label …………………………………………..Avery Denison BD Ltd. 4. Size label…………………………………………... Avery Denison BD Ltd. 5. Care label ……………………………………….….Avery Denison BD Ltd. 6. Price tag ………………………………………….…Avery Denison BD Ltd. 7. Security tag …………………………………….…..Avery Denison BD Ltd. 8. Hang tag……………………………………….……Avery Denison BD Ltd. 9. Patch …………………………………………….… Avery Denison BD Ltd. 10.Button …………………………………………..…shikder Accessories Ltd. 11.Shank button………………………………..…… shikder Accessories Ltd. 12.Snap button …………………………………..…. shikder Accessories Ltd. 13.Rivet ………………………………………….….. shikder Accessories Ltd. 14.Gum tape ………………………………………….. Avery Denison BD Ltd. 15.Zipper ……………………………………………………...……YKK BD Ltd. 16.Poly bag …………………………………………… Avery Denison BD Ltd. 17.Poly sticker ……………………………………….. Avery Denison BD Ltd. 18.Swift sticker ………………………………………. Avery Denison BD Ltd. 19.Tag pin ……………………………………………. Avery Denison BD Ltd. 20.Ring ……………………………………………….. Avery Denison BD Ltd. 21.Twill tape…………………………………………... Avery Denison BD Ltd. 22.Elastic……………………………………………… Avery Denison BD Ltd. 23. Threads ………………………………………….. Avery Denison BD Ltd. 24.Wash label ……………………………………….. Avery Denison BD Ltd. 25.Leather sticker …………………………………… Avery Denison BD Ltd. 26.Carton ………………………………………………..….. Mukta Enterprise.
  • 21. Business Trade Analysis of Denim Product. Page 15 Product cost specification: FABRIC FABRIC CONSTRUCTION (per yd) YY PRICE Shell - 98% CTN 2 % S DEX RING SPUN - 9.60 OZ $2.40 1.67 $4.01 Pocket - COTTON FRONT POCKET $0.58 0.26 $0.15 Fusi Inter Lining $0.06 0.25 $0.02 Fabric Total Cost $4.17 CM $1.20 WASH (IF ANY TINT COST WILL INCREASE $ .20 PER GARMENTS) $0.55 Trims & Packaging ITEM U P CON PG PRICE Sewing Thread $0.15 Shank Button - Waist 32 Line (WIL) $0.030 1.05 $0.03 Shank Button - FLY 24 Line (WIL) $0.025 3.15 $0.08 Rivet 1 x 4 (WIL) $0.010 4.2 $0.04 Back pocket EMB (M J L ) $ - 0 $0.00 Heat Seal Label (WIL) $0.050 1.03 $0.05 Care Label (WIL) $0.025 1.03 $0.03 Sewing Ticket (WIL) $0.030 1.03 $0.03 Over Rider (WIL) $0.020 1.03 $0.02 Warning Ticket (WIL) $0.060 1.03 $0.06 Leg Sticker (WIL) $0.080 1.03 $0.08 Kimball Sticker (WIL) $0.010 1.03 $0.01 Poly Bag (M J L ) $0.050 1.03 $0.05 Carton Box (M J L ) $0.100 1.03 $0.10 Packing material $0.02
  • 22. Business Trade Analysis of Denim Product. Page 16 Total product cost: COST BREAK DOWN(New Format) SL # PARTICULARS Cost $ % 1 Fty Production Cost (with 2% profit) $ 7.27 14.95 2 FABRIC COST + 5% (import commercial cost). Please see below note $ 23.18 47.70 3 ACCYS COST + 2% (import commercial cost) $ 8.16 17.94 4 Wash (Enzyme wash + Silicon) $ 2.50 5.14 5 Dry Process ( Hand Sand at front & back) $ 2.00 4.12 6 Tint $ 0.80 1.65 7 Emb $ - 0.00 8 Print 9 Any other value addition 10 LAB TEST $ 0.10 0.21 11 Export Commercial / Finance Cost $0.05/Pc $ 2.28 /Dzn 1.23 12 Marketing & Merchandising Cost $0.07/Pc 1.73 13 Commercial & Finance Overhead $0.02/Pc 0.49 14 Head Office/Common Overhead Cost $0.05/Pc 1.23 15 Total (serial 1 to 14) $ 46.28 16 5% miscellaneous cost on serial 15 $ 2.31 4.76 17 Total (serial 15+16) $ 48.59 18 Buyer Commission (if applicable) 19 FOB (serial 17 + 18) $ 48.59 20 Deferred payment (if applicable) 21 Final FOB (Serial 19 +20) as per cost analysis $ 48.59 22 CONFIRMED FOB $ 45.47
  • 23. Business Trade Analysis of Denim Product. Page 17 Summary of Cost B/down PARTICULARS CM With Commercial CM Without commercial Fabric cost 22.08 $ 23.18 Accys cost 8.00 $ 8.16 Wash (Enzyme wash + Silicon) $ 2.50 $ 2.50 Dry Process ( Hand Sand at frnt& back) $ 2.00 $ 2.00 Tint $ 0.80 $ 0.80 Emb $ - $ - Lab Test $ 0.10 $ 0.10 CM $ 10.00 $ 8.74 FOB per Doz 45.47 $ 45.47 $ 3.79 /PC Determine presale value: So assuming the entire cost Opex Sinha group set a final presale value of $ 4.90 / pc with profit for this denim pant.
  • 24. Business Trade Analysis of Denim Product. Page 18 Markets compare (Relative company) Comparing with other companies is a very much important issue for business. Its helps to determine the perfect value of any product regarding on quality and quantity, for our product we compare with Experience Clothing Company Ltd. Partex DenimLtd. and Mahmud jeans Ltd. The descriptions of above competitors are given below: Experience Clothing Company Ltd. Experience Clothing Company Ltd. is a renowned woven manufacturing company in DEPZ. It’s a Europe based Pakistani owned factory which established on 1995. They have large number of denim orders from various buyer of European market. Partex Denim Ltd. Partex Denim Ltd. is one of the biggest denim producing factories in Bangladesh which also owned by Bangladeshi owner. It is a sister concern of Partex Group which founded by Mr. M.A Hasem in 1959. But the denim production unit established on 2005 and now they are a leading denim supplier in Asian, European and American Market for their competitive price and high class quality. Mahmud Jeans Ltd. Mahmud Jeans Ltd is a sisters concern of Mahmud Group which established on 1997 at Chittagong. In 2006 Relying on its strong past experience Mahmud Group decided to reshapeits business by taking significant step towards leading the denim industry at Chandra,Kaliakoir,Gazipurand came up with composite state of the art denim mill. Consisting of Mahmud Spinning Ltd, Mahmud Denims Ltd, Mahmud Jeans Ltd & Mahmud Washing Ltd; Mahmud Group is now one of the leading denim companies of the country.
  • 25. Business Trade Analysis of Denim Product. Page 19 Website Cost: Website is the set of related web pages typically served from a single web domain. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet address known as a uniform resource locator (URL) called the web address. All publicly accessible websites collectively constitute the World Wide Web. Websites can be divided into two broad categories - static and dynamic or interactive. Interactive sites are part of the Web 2.0 community of sites, and allow for interactivity between the site owner and site visitors. Static sites serve or capture information but do not allow engagement with the audience directly. Some web sites are informational or produced by enthusiasts or for personal use or entertainment. Many web sites do aim to make money, using one or more business models and E-commerce activities. Opex Sinha Group has a dynamic website addressed http://sinhagroup.com/ which developed and maintained by e-soft solutions bd. Their website cost is 30000tk. but on this project yearly maintaining cost is 9000tk. Company Name Total Machineries Production Capacity Target Market Unite Price Annual Turnover Comments OpexSinha Group Ltd. 18000 Nos. 220000 pcs. /Day Asian, European, American $ 3.80 per pcs. US$ 350 Million Reasonable price & good quality Experience Clothing Company Ltd. 5100 Nos. 60000 pcs. /Day European, American $ 5.60 per pcs. US $ 125 Million High quality with much price Partex Denim Ltd. 1600 Nos. 26000 pcs. /Day North American, Europe, Middle East $ 3.20 per pcs. US $ 60 Million Product quality is good with competitive price Mahmud jeans Ltd. 3200 Nos. 35000 pcs. /Day European, Asian, Middle East $ 4.10 per pcs. US $ 102 Million Better quality with good price
  • 26. Business Trade Analysis of Denim Product. Page 20 Total Taka Invest Investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame. Investment has a different meaning in finance from that in economics. In finance, investment is buying or creating an asset with the expectation of capital appreciation, dividends (profit), interest earnings, rents, or some combination of these returns. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk. It is indispensable for project investors to identify and manage the risks related to the investment. In Opex Sinha Group, investments of an order of 3600pcs Denim pant for Ellece Price Buyer. The investment regarding on this order is given below: Land Depreciation…………………………………….16000/- Fabric Cost……………………………………………..514800/- Accessories Cost………………………………………187200/- Wages/salary ………………………………………….120000/- Machinery Depreciation ……………………………...24400/- Website cost …………………………………………...9000/- Transport cost …………………………………………10800/- Utility ……………………………………………………10500/- Wash+Dye+ Emb………………………………………80000/- Miscellaneous Cost …………………….……………..95000/- ----------------------------------------------------------------------------------- Total = 1067700/-
  • 27. Business Trade Analysis of Denim Product. Page 21 How money will return if it is idle in bank Suppose, if the money keeps idle or deposited to a bank in Bangladesh as like as Brac Bank, then the return is; FV= PV Here, = 1067700 FV = Future Value = 1126423.5 PV = Present value i = Interest rate (5.5%) n = Year So, if the money will be idle for a year in Brac Bank, then the return is BDT. 11,26,423.5.
  • 28. Business Trade Analysis of Denim Product. Page 22 Profit percentage Total Selling Price 1375920 ($1=78tk.) Total Cost - 1067700 Total profit = 308220/- We know, Profit percentage = (total profit / total cost) 100 = (308220 / 1067700) 100 = 28.87 % These Denim projects give 28.87% profit where the Bank usually gives 5.5% interest. So investing on this project is more profitable then keeps this money idle in Bank.
  • 29. Business Trade Analysis of Denim Product. Page 23 Per sell Value for Market Company Product Value (on Retail/Market) Asian European American Opex Sinha Group. Denim Pant $17.14 (Oshkosh) $67.50 (NAUTICA) $53.20(LEVI'S) Experience clothing company Ltd. Denim Pant -------- £30.00 (Tesco) $35 (Wal Mart – Wrangler ) Partex Denim Ltd. Denim Pant -------- £35.00 ( NEXT) $43.74(H&M) Mahmud Jeans Ltd. Denim Pant $45.56 (JC Penny) £31.25 (Charles Vogele) $40.40 (Marks)
  • 30. Business Trade Analysis of Denim Product. Page 24 Market Compare & Discount with Shop Opex Sinha Group, Experience Clothing company Ltd., Partex Denim Ltd. And Mahmud Jeans Ltd. are maintaining business with some buyers and brands in Asian, European and American Market. Their nominal Buyers are. So, the competitive scenario of those Brands on mentioned Markets are shown below… Company Product Price (on Retail/Market) Comments Asian European American Opex Sinha Group. Denim Pant $12.00 (Oshkosh) After 30% off $44.50 (NAUTICA) After 40% off $39.90 (LEVI'S) After 25% off Sell on reasonable price to renowned brands Experience clothing company Ltd. Denim Pant -------- £15.00 (Tesco) After 50% off $35 (Wal Mart – Wrangler ) Legitimate price with high standard Partex Denim Ltd. Denim Pant -------- £35.00 ( NEXT) $34.99 (H&M) After 20% off Proper standard products with modest price Mahmud Jeans Ltd. Denim Pant $36.45 (JC Penny) After 25% off £25.00 (Charles Vogele) After 20% off $49.99 (Marks) After 10% off Condign price having better standard with brand
  • 31. Business Trade Analysis of Denim Product. Page 25 Facilities Compare Company Comparing Issues Comments Quality Standar d Fire & Safety Complianc e Location After Sale Service Opex Sinha Group. Maintain AQL 2.5 & 4 Mostly Maintain Modern equipmen t & regular maneuver ISO 9001:2000 ILL’06 And Maintain Oeko-tex, WRAP,BSCI, Moody, Mirpur-13 Dhaka Return on Mould problem, Discount on repeat order Having production friendly environment with proper management Experienc e clothing company Ltd Maintain AQL4.0 mostly and lean program Maintain Modern equipmen t & regular maneuver ISO 9001:2000 ILL’06 and maintain REACH, MSN. WRAP BSCI, DEPZ Ashulia,Dhak a N/A Locate on industrial friendly area with proper compliance & standard goods Partex Denim Ltd. Maintain AQL 2.5 & 4 Mostly & lean program Maintain Modern equipmen t & regular maneuver ISO 9001:2000 ILL’06, and maintain Oeko-tex WRAP,BSCI, REACH Rajendrapur, Gazipur N/A They believe in quality and safe working environment Mahmud Jeans Ltd. Maintain AQL 2.5 & 4 Mostly Maintain Modern equipmen t & regular maneuver ISO 9001:2000 ILL’06 and maintain MSN, Oeko- tex, BSCI, WRAP Chandra,Gazi pur N/A The Place of total compliance with better service
  • 32. Business Trade Analysis of Denim Product. Page 26 Summery In this assignment we come to know about a view on denim market by the source of Opex Sinha Group, Experience Clothing Company Ltd., Partex Denim Ltd. and Mahmud Jeans Ltd. as well as the International Market of Asia, Europe and American region. It also describes the raw material sourcing, proper pricing & merchandising, costing & consumption with a comparison with relative companies. It shows pay back on the investment of a denim project. It also gives a review on the mood of relation between Buyer & Seller with Manufacturers. We can also find out the demand of Denims in the market with effective price. By a research on this assignment anyone can understand about the forward and backward linkage of denim industry as well as RMG sector. Denim is now a fashion icon. So, it’s a pleasure to doing a project on denim with its total information with total contiguity of honorable A.H. Shohel Ahmed Sir. Conclusion Ready Made Garment industry is the leading economic sector in Bangladesh. However RMG sector has emerged as the biggest earner of foreign currency. The RMG sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis, mainly women from low income families. This sector also contributes around 13 percent to the GDP, which was only around 3 percent in 1991. More than thirteen thousand factories are running successfully in this country now. In spite of some incoherent problem this sector has bright potentiality. Denim has a big share on this market. A very big amount of denim based order completed by the factories every year. Among them many companies started fully separate denim production unit to perfectly go through with orders. So, the importance of denim is undeniable for the RMG sector of Bangladesh. So, the government and proper authorities should take necessary steps to make this sector more fruitful for our economy
  • 33. Business Trade Analysis of Denim Product. Page 27 Some Memorable Moment
  • 34. Business Trade Analysis of Denim Product. Page 28 Some Memorable Moment
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  • 39. Business Trade Analysis of Denim Product. Page 33 Thanks