1.

Introduction

Large-scale production of readymade garments (RMG) in organized factories is a relativelynew

phenomenon in Bangladesh. Until early sixties, individual tailors made garments as perspecifications

provided by individual customers who supplied the fabrics. Since the late1970s, the RMG industry started

developing in Bangladesh primarily as an export-orientedindustry. The sector rapidly attained high

importance in terms of employment, foreignexchange earnings and its contribution to GDP. With the

growth of RMG industry, linkageindustries supplying fabrics, yarns, accessories, packaging materials,

etc. have also expanded.In addition, demand for services like transportation, banking, shipping and

insurance hasincreased. The total indirect employment created by the RMG industry in Bangladesh

isestimated to be some 65000 workers. The hundred percent export-oriented RMG industryexperienced

phenomenal growth during the last 15 with the government giving high priorityto the development of

RMG industry.

One of the largest garment manufacturers is Beximco Group who has widespread contributionto the

success of RMG sector in Bangladesh. This report is based on one of the nine strategicbusiness units of

Beximco Group which is called International Knitwear & Apparels Ltd., acomplete knit composite unit. I

have tried my level best to analyze the entire work process interms of departmental coordination of this

unit. I have also tried to identify majorshortcomings of various departments as well as potential risk

factors which affect overallmarketing of Beximco Fabrics Ltd.

1.1 Origin of the study

As a fresh graduate from the department of MBA of Prime University Bangladesh, I wasrequired to meet

the requirements of Project work as a part of MBA program. Consequently,my orientation to Beximco

Fabrics Ltd. to serve this purpose has given me the chance to makemyself familiar with the organizational

culture, behavior and other aspects. In addition, I amsupposed to conduct a research and submit it in the

form of a report in accordance with thecompany’s interest as well as the academic requisition. Hence, this

report is proposed andassigned by my administrative supervisor Mr. Ferdous Hossain (Factory

Manager,International Knitwear & Apparels Ltd. ) and approved by my academic supervisor Md.Azizur

Rahman (Lecturer, Department of Business Administration, Prime University). In thisregard, I would like

to add that this report is completely confidential and prepared with a viewto expose myself to the practical

exposure and knowledge.

Project Report on International Knitwear & Apparels Limited of Beximco Group
6
RMG Earnings
Amount
(billion US$)
As Percentage of GDP
Tot
4.1 Introduction to Beximco Group

Beximco Group is one of the market leaders in RMG sector of Bangladesh, started in 1991and since then

it has expanded its business from the Far East to the West with Europe,America and Canada. The Group
has nine units with 11456 skilled professionals, 227 set ofCircular Knitting Machine, 1213 set of Sewing

Machine and 465 set of Sweater Machine.Moreover, all the companies of Mondol Group are interwoven

in such a way that eachcompany if necessary will receive active supports in production from other

concerned. So,The Beximco Group never fears the heavy rush of orders from buyers. Beximco

Groupalways tries to keep confidence of buyers from around the world. The group has a team ofdedicated

professional workers (5,560) who are earnestly sincere and careful about theirresponsibilities to produce

garments products.

Project Report on International Knitwear & Apparels Limited of Beximco

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Diagram-3: Graphical view of total volume in ERP System
Organogram: Beximco Group
4.2 Introduction to Beximco Fabrics
Beximco fabrics is a complete composite unit of Beximco Group which is having all kinds of
major facilities in-house to manufacturing garments.Facilities are knitting, dyeing, cutting,
5.4 Product Life cycle

The product life cycle concept suggests that a product passes through four stages of

evolution:Introduction, growth, maturity and decline. As a product evolves and passes through thesesfour

stages profit is affected and different strategies have to be employed to ensure that theproduct is a success

within its market.

Project Report on International Knitwear & Apparels Limited of Beximco

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advantages better and to overcome interdepartmental conflict. Decision support system arecomputer

systems develop to aid managerial decision making by employing state-of-the-artquantitative models that

analyze proposed actions by evaluating how those actions wouldaffect all primary areas of an

organization.
5.4 Product Life cycle

The product life cycle concept suggests that a product passes through four stages of

evolution:Introduction, growth, maturity and decline. As a product evolves and passes through thesesfour

stages profit is affected and different strategies have to be employed to ensure that theproduct is a success

within its market.

Diagram-4: PLC
Introduction: As a new product much time will be spent by the organization to create
awareness of it presence amongst its target market.
Growth: If consumers clearly feel that this product will benefit them in some ways and they
accept it, the organization will see a period of rapid sales growth.
Maturity: Sales slow down as the product sales reach peak as it is accepted by most buyers.
Decline: Sales and profits start to decline, the organization may try to change their pricing
strategy to stimulate growth, and the product will either have to be re-modified, o
6.1 Departmental work process Beximco Fabrics Ltd.
Montex Fabrics Ltd. is consists of 5 major departments as follow:
1.Departments of Marketing
2.Departments of Merchandising
3.Departments of Production
4.Departments of Logistics
5.Departments of Commercial

Beside above, it has two more departments; one is Finance, which basically serves for entirenine SBU of

Beximco Group. This department performs accounts, HR, admin and otherfinancial tasks for the entire

group. Another department is IT (Information Technology) whichalso serves each units of Beximco

Group by providing timely data and IT solutions.

However, the business of RMG starts with buyer’s confirmation of an order (for example,50000 pieces T-

shirts) to Beximco Fabrics. Terms of payments and all transactions are settledby opening LC (letter of

credit) by both buyer and seller in their respective origin banks. Afterthat marketing department of

Beximco Fabrics receives order sheet and pass it tomerchandising department to create sample as per

buyer’s requirements. Once sample isapproved, production department starts production as per

instructions of merchandisingdepartment. Raw materials for production are ordered and purchased by

merchandisingdepartment from suppliers against back-to-back L/C against the original/master L/C. Limit

ofback-to-back L/C is up to 80% of the total value of original L/C. Once production completes,logistics

department pack the goods and send to buyer nominated forwarder/carrier to ship outthe goods towards

destination. Commercial department, in this occasion, prepares and provideall documentations of entire

shipment as per buyer and organizational requirements andspecifications. Once goods sailed, commercial

department submits all documents to the L/Copening bank who again endorse and send those to buyer’s

L/C opening bank for payment ofgoods being shipped out. Buyer needs to release necessary documents

from their bank bypayment of goods and use those documents for releasing goods from the

custom/carrier. Once
 Project Report on International Knitwear & Apparels Limited of Beximco
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buyer paid to his bank, they instructed seller’s bank to pay the seller. Thus the seller gets their
payment through their L/C opening bank.

Above tasks are performed by major five departments of Beximco Fabrics, which are wellestablished and

work in great concert in carrying on each of its orders. From importing rawmaterials to production and

from packaging to ship out, Beximco Fabrics provides itscustomers highest value by ensuring quality

production and on time delivery with full securityand compliance. Behind the success of Beximco Fabrics

is ensuring customer solutionthrough commitment towards quality, operational performance and timely

delivery.
Now let’s have a look at below departmental work processes and work coordination among all
of them:
6.1.1 Marketing Department

Marketing department of BFL plays the vital role for the entire business. Orders from buyerscame

through this department and all sorts of communication also pass through the marketingpeople. Thus

marketers of Beximco Fabrics must possess high quality and high knowledge ofthe entire operational

procedures as well as both exporting and importing countries’ laws andregulations.As involved in

International Marketing, BFL has two types of buyers, such asdirect buyers (who place orders directly

with Mondol) and buyers through buying agents (whoplace orders via buying agents). Beximco Fabrics

believes its marketing process shouldencompass three aspects as follows:

Handling: The marketer should carefully handle all needs and wants of buyer keeping own
interest intact.
Managing: Managing all requirements of buyers from start to end of an order process.
Execution: An effective execution of the entire order process that requires utmost
coordination of all departments and value chain partners of the company.

MFL marketing policy is to serve its existing buyers with priority as they have long termrelations with the

existing buyers (10 years with most of the buyers) and also to seek newbuyers through websites, trade

fairs and from other sources. Currently BFL has target USmarket which is emerging one.
However, Beximco Fabrics marketers approach a new buyer with a well-equippedpresentation. The
marketer needs high skills of communication, clarity, appealedconversation, leadership, technically and
analytically sound and must have knowledge of alreas in order to introduce the company in a confident
and realistic manner. A BFL marketer

also possesses followings to perform all related marketing tasks:

1.Extensive knowledge of the associated service to be rendered.

2.Sound knowledge of merchandising and procurement of raw materials.

3.Industry knowledge of own region as well as those of the competitive regions.

4.A complete idea of own company’s strengths and weaknesses as well as potential
threats and market opportunities in order to gain more buyers.
5.Technologically and operationally sound and be well-known of the company’s
capacity of producing units. Beximco’s volume handling capacity (two million units)
is also used as an effective marketing tool by its marketers.
6.Outstanding knowledge of product costing and pricing policies.
7.Last but not the least, Beximco’s principle of business is quality and on time delivery

for which its marketers must have commitment. To observe this commitments,marketers duty not only

ends by getting orders but also follow up with otheroperational departments to provide buyers confidence

and feel happy about BeximcoGroup. This practice also adds value to overall corporate image of the

organization
Project Report on International Knitwear & Apparels Limited of Beximco
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Organogram of Merchandising Department
Prime University
DIRECTOR
Bulding-01
Bulding-02
A.G.M.(Mr.Robiul
Alam)
G.M.(Mr.Abul
Kalam Azad)
Knitting (J)
Dyeing (J)
Sewing (A+J)
Quality (A+J)
Sample (A+J)
Merchandising (A+J)
Mr.Mannan & His Associates
(A+J)
Mr.Reza & His Associates
(A+J)
Knitt