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Company profile COMPOSITE KNIT TEXTILE A Concern of Faiyaz Group

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Company profile

CCOOMMPPOOSSIITTEE KKNNIITT TTEEXXTTIILLEE

A Concern of Faiyaz Group

C o m p a n y P r o f i l e 2 0 1 0 | 1

C

O

N

T

E

N

T

S

Executive Summary 2

Mission Statement 3

Mission Objectives 3

Foundation & History 4

Our Customers 5

Our Market 5

Product Ranges 6

Company Data 6

Factory Layout 7

Product Flow 8

Production data 9

Sales History 9

Knitting Equipment 10

Dyeing Equipment 11

Garments Equipment 13

Our People 14

Management Profile 15

Compliance Issues 16

Contact Us 18

C o m p a n y P r o f i l e 2 0 1 0 | 2

Executive Summary

Apparels Village Limited or AVL is a concern of Faiyaz Group (FG). AVL is a vertical knit

composite textile unit and is the biggest of the three units under the group of companies. It has

an average daily production capacity of 30,000 pieces of garments with a well balanced mix of

ladies, gents and kids items. As a composite knit textile, AVL boasts a state of the art high

temperature dyeing unit with a production capacity of 6.5 tonnes. Regular capital re-

investment is an integrated part of the company’s management idea and has resulted in an

almost new knitting unit with a production capacity of 6 tonnes per day. As an export oriented

company, AVL mostly caters for customers based in the European and the American (north &

south) countries.

C o m p a n y P r o f i l e 2 0 1 0 | 3

Mission Objectives

Achieve six sigma states of

quality in manufactured

products.

Zero rechecks and quality

issues received from the

customers.

Monitor all points of inventory

movement within the

production process.

Achieve the profit sharing

scheme, in forms of employee

bonuses every year.

Employee turnover to be

reduced to below 10% by the

year 2012.

On-time shipment of

merchandise for 100% of the

customers.

Mission Statement

AVL like its sister companies, Faiyaz

Apparels Limited (FAL) & The Faiyaz

Limited (TFL), follows the one mission

statement engraved deeply in the

group’s business outlook:-

EXCELLENCE IN

QUALITY. QUALITY IN

PEOPLE.

By this the company stresses that its

fame in producing good quality

products does not come from its

expensive and state of the art

machinery. Rather, it’s a product of

the quality of its employees that the

company has developed over the

years. We pride ourselves in the

quality of our products. That is why;

the control of quality is deeply

engraved within our production

process

C o m p a n y P r o f i l e 2 0 1 0 | 4

2002

•AprilFactory StartupGarments 3 LinesKnitting 6 Circular Machines 2 Flat Knit MachinesTotal Power generation -338 KW

•DecemberDyeing 5 Tonne HT dyeing, 3.5 Tonne Heat Setting

2004

•Expansion ++

•Garments - 2 Lines acquired

•Knitting - 2 Flat Knit Machines acquired

2005

•Expansion ++

•Garments 3 Lines acquired

2006

•Expansion ++

•Dyeing - 450 kg HT dyeing machine acquired

•Knitting - 2 Circular knit machines, 2 Flat Knit Machines acquired

•Garments - 4 Lines acquired

•Generator - 1MW total Power

2007

•Expansion++

•Dyeing - 600 kg HT dyeing machine acquired50 kg HT dyeing machine acquired

•Knitting - 1 Circular Knit Machine acquired

2008

•Expansion ++

•Dyeing - 1 Tube compacting & 1 Sqeezer machine acquired

2009

•Expansion++

•Garments - 16 Lines

PRESENT DAY

•Expansion++

•Garments - 18 Lines

•Knitting - 19 Circular Knit Machines, 6 Flat Knit Machines

•Dyeing - 7.9 tonnes of HT dyeing Capacity, 11 tonne Bruckner stentering & heat setting machine.

Our History

C o m p a n y P r o f i l e 2 0 1 0 | 5

Our Customers

Our customers come from

all parts of the world;

however, the year 2011

has seen us work the

most for leading Italian

brands such as Gruppo

Coin & Unitessile as well

as EU customers such as

Primark & Pennys.

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or the summary of an interesting

point. You can position the text box

anywhere in the document. Use the

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OVS54%

Primark26%

Local7%

Walmart4%

UNITESSILE S.P.A4% TOKMANNI

OY1%

Simons1%

Navigare1%

US Polo1%

Others1%

Export USD

C o m p a n y P r o f i l e 2 0 1 0 | 6

Our Products

Business Overview

Business type Apparel Exporter & Manufacturer

Nature of production Composite Knit

Export percentage 100%

Annual sales volume US $ 21.12 million (2011)

Land area 1, 65,000 Sft.

Total covered area 1, 10,000 Sft

Year of establishment 2001

Year of commercial production 2002

No of production lines 18

Minimum work age 18 years (certified by a medical officer).

Minimum wages BDT 3,000

Working hours 8 hours a day

Working days 301 days a year

Membership BGMEA

Trade Bank Name: 1. AGRANI BANK LIMITED

2. AL-ARAFAH ISLAMI BANK LIMITED

Styles:-

T-shirts Polo Shirts Tank Tops Hoodies PJ Sets Baby Suits Shorts Underwear Trousers

Fabric:-

French terry

Lycra,

Single jersey,

Double jersey,

Cotton fabrics,

Interlock,

Lacoste

Polyester

Fleece etc.

Age Range:-

Kids

Girls

Boys

Gents

Ladies

Babies

C o m p a n y P r o f i l e 2 0 1 0 | 7

Factory Lay-out

1. Entrance

2. Security Booth and Guard Station

3. Central Office

4. Canteen, New Knitting Section & Yarn Warehouse

5. Old Knitting Section

6. Generator Room

7. New Brückner Heat Setting & Stentering Machine.

8. Multi-storied Garments Unit

9. Finished Fabric Store & Finished Garments Store

10. Dyeing & Effluent Treatment Plant

11. Chemical Warehouse & Boiler Unit.

C o m p a n y P r o f i l e 2 0 1 0 | 8

BUYER

PRODUCT

ENQUIRY

MERCHANDISER

KNITTING

PRICE

QUOTATION CONFIRMED

ORDER

FINISHED GOODS

WAREHOUSE

PACKING

FINISHING

GREY FABRIC

DYEING

CUTTING

GARMENTS

FINISHED GARMENTS

SEWING

PRESSING

FOLDING

ACCESSORIES

SHIPMENT

PREPARE EXPORT

DOCUMENTS

FINISHED FABRIC

CUT GARMENTS QC

SEWED GARMENTS

QC

QC

VARIOUS CONFORMITY CHECKS: - metal detection etc.

QC

QC

QC

QC

YARN

DYES &

CHEMICA

LS

PURCHASING

DEPARTMENT

SEWING RAW

MATERIALS

BOM

GOODS MARKED FOR

SHIPMENT

QC

THE

PRODUCT

FLOW

QC

DYED FABRIC

Understanding the Production Process

C o m p a n y P r o f i l e 2 0 1 0 | 9

Average prices have

also gone up

considerably during

the year. However

with a trend of basic

items being shipped at

the end of the year,

the revenue showed a

slowing down in

growth.

0

2

4

6

8

10

12

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Ship

ped

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red

Th

ou

san

ds

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Sale

s $

'00

0

Month 2009

Production Data

Sales History

[Even during the world

economic downturn of 2011,

AVL has experienced a fairly

steady flow of export value,

Thanks to the more successful

customers of AVL such as

primark and OVS.]

C o m p a n y P r o f i l e 2 0 1 0 | 10

Our Equipments

Knitting unit

Our knitting unit has an array of latest, computer controlled knitting machines from

reputed international brands. There are knit jacquards, interlocks, ribs and jerseys in any

pattern or structure as needed. Total floor area in knitting is about 8000 sft. The capacity is

5 tones per day. There are 6 flat knitting machines that can knit jacquards, plain, stripes

and self-designs with a capacity of 8500 pieces per day.

Type of Knitting Machine Manufacturer Qty Remarks

Auto Stripe Circular Myer & Cie 3 Feeder Stripe, Engineering/Auto Stripe, Fleece

Option & with Full Lycra Attachment

Single Jersey Circular Myer & Cie 8 Feeder Stripe, Fleece Option & With Full Lycra

Attachment

Single Jersey Circular Sanda 2 Feeder Stripe, Fleece Option

Interlock Circular Myer & Cie 2 Interlock, Fleece Option & With Full Lycra

Attachment

Rib-Interlock Circular Myer & Cie 1 Interlock, Fleece Option & With Full Lycra

Attachment

Rib Circular Myer & Cie 2 Interlock, Fleece Option & With Full Lycra

Attachment

Auto Stripe Circular Pai Lung 1 Engineering/Auto Stripe

A total of 19 circular machines

Flat Bed Matsuya 4 Country of Manufacture - Japan

Flat Bed Flying Horse 2 Country of Manufacture - Taiwan

A total of 6 Flat Bed machines

C o m p a n y P r o f i l e 2 0 1 0 | 11

Dyeing unit

The total floor area in dyeing unit is about 8000 sft. Besides machine set- up space, there is

space for batch preparation, wet fabric storage. In order to dissipate the heat evolve from

dyeing machines, the shed height has kept to av. 24ft. With enough window opening and

air exhaust systems. The machine description of this unit are as follows :

Type of Dyeing Machine Manufacturer Capacity (KG) Daily Production (KG)

DMS 12 High Temperature & Eco Flow Dilmenler 800 2400

DMS 12 High Temperature & Eco Flow Dilmenler 600 1800

DMS 12 High Temperature & Air Flow Dilmenler 500 2000

DMS 12 High Temperature & Eco Flow Dilmenler 450 1350

DMS 12 High Temperature & Eco Flow Dilmenler 400 1200

DMS 12 High Temperature & Eco Flow Dilmenler 200 600

DMS 12 High Temperature & Eco Flow Dilmenler 100 300

DMS 12 High Temperature & Eco Flow Dilmenler 50 150

Sample Machine Evergreen 30 90

DMS 12 High Temperature & Eco Flow Dilmenler 10 30

High Temperature, High Pressure & Airflow Then 500 1500

A Total Dyeing Capacity of 9.4 Tonnes per day* *at 80% efficiency

LAB SECTION

The laboratory and office space has been set-up in between dyeing and finishing unit at

first floor level. It has constructed in see through provision so that the activities in dyeing

and finishing unit can be observe entirely from that space. This space is fully covered under

ac system to ensure smooth and comfortable working environment.

Type of Machine Manufacturer Capacity

Atmospheric machine Ugolini 10 becar

Sample dryer Ocean 5 kgs

High Temperature Sample dyeing Ugolini 16 becar

High Temperature Sample dyeing Ugolini 8 becar

Color matching cabinet Ugolini 1

Spectro Photo Meter Gretagmacbeth 1

Shrinkage Test Machine Siemens 5 kgs

Color fastness Innolab 8 becar

Wight measuring machine Daratex 400 g

C o m p a n y P r o f i l e 2 0 1 0 | 12

Dyeing unit

FINISHING UNIT

The total floor area in finishing unit is about 8000 sft. Besides machine set- up space, there

is space for batch preparation, wet fabric storage. In order to dissipate the heat evolve

from machines, the shed height has kept to av. 4ft. With enough window opening and air

exhaust systems.

Type of Machine Manufacturer Capacity (Tonnes)

Squeezer Daraio-tex 4,000

Squeezer mersen 6,000

Fabric turning Daroi-tex 4,000

Compactor calendar (tube) Tube tex 6,500

Dryer machine Alea 3,500

Tumble dryer Triveneta 700

Slitting Daroi-tex 4,000

Quality control machine Daroi-tex 4,000

Compactor (open) Daroi-tex 4,000

Stanter Alea 4,000

Stanter Bruckner 11,000

Weight Scale (electronic) Seimens 100

Weight Scale (manual) T h sons 500

Weight Scale (manual) T h sons 1,500

Weight Scale (electronic) Seimens 300

C o m p a n y P r o f i l e 2 0 1 0 | 13

GARMENTS UNIT

The total floor area in garments is about 82,500 sft spanning over five floors. This area is

comprises of machine area, office space, cutting section, finishing section, finished goods

space and rest-room facilities. Amenity provisions are at two sides of each floor, one for

male one for female. The full area is covered with false ceiling to ensure an aesthetic view

as well as a good working environment. The total floor is equipped with adequate lighting

and ventilation systems.

Production capacity – 30,000 pcs per day.

Type of Machine Manufacturer Qty

Plain machine auto Juki/ Yamata/ Homry/ Pegasus 174

Plain machine manual Juki/ Yamata/ Homry/ Pegasus 110

Over lock Juki/ Yamata/ Homry/ Pegasus 188

Flat lock Cylinder bed Juki/ Yamata/ Homry/ Pegasus 64

Flat lock flat bed Juki/ Yamata/ Homry/ Pegasus 29

Button hole Juki 10

Button stitch Juki 10

Rib cutting Ida 8

Picoding Kansai 2

Eskabling Kansai 2

Pmd (kanchai machine) Kansai 4

Feed of the arm Brother 3

Zig zag three stripe Singer 3

Snap button Local 8

Bartteck Juki 3

Cutting machine K.M. 9

Heat transfer Seimens 2

Vacuum ironing table Oshima 52

Metal detector Needle Lock 1

Thread sucking oshima 4

Total Number of Machines 686

C o m p a n y P r o f i l e 2 0 1 0 | 14

1%

4%

2%

83%

1%4%

5%

Staff Break Down

Office

Admin

Inventory

Garments

Maintenance

Knitting

Dyeing

Female48%

Male52%

Worker Classification

Our People

AVL has a close knit family of more than 2500

employees. Out of them, approx 250 are at managerial

level. This gives us a considerable management

advantage with a supervision ratio of 1 manager to 10

production staff.

Finished garments

production being the most

labour intensive process

naturally employs most of

our employees.

Unlike most Bangladeshi

factories, our company

boasts an almost equal

number of male workers to

female workers. We at AVL

pride ourselves at this

achievement towards non-

discrimination.

C o m p a n y P r o f i l e 2 0 1 0 | 15

The management of AVL comprises of both centralised and de-centralised functions.

The system is in place to achieve optimum decision times in the fast-paced manufacturing

world. The top management has also been divided & located into two distinct groups

(with individual lines of accountability) for clearer communication lines.

The Board of directors consist of three directors who in turn are answerable to the

Chairperson of the Group. The chairperson also functions as a non-executive director to

the company for better corporate governance.

Management Profile

C o m p a n y P r o f i l e 2 0 1 0 | 16

Compliance Issues

Laws & Regulations: The production process operates in full compliance with the laws and regulations of the jurisdictions in which they manufacture. We at AVL always endeavour to comply fully with the legal requirements of the countries with which we do business and our buyers are required to do likewise at all times. Employment Age: Workers may not be younger than 18 years of age. In addition to the general requirement that all buyers will extend the principle of fair and honest dealings to all other with whom they do business, we also have specific Procedure relating to employment conditions. Based on respect for fundamental human rights, these Procedures apply not only to our production but also to production for any subcontractors we work with. The use of child labor is absolutely unacceptable. Forced Labor: The company's recruitment and production policies do not use involuntary or forced labor – indentured, bonded or otherwise. We do not allow forced labour or labour which involves physical or mental abuse or any form of corporal punishment. Wage and Benefits: The company compensates its employees fairly by providing compensation packages comprising wages and benefits that are more than the mandated minimum standards. Each employee is provided with a clear, written accounting for each pay period. Employees are compensated for overtime according to local law. The principle of the profit sharing scheme helps increase the total effective annual wages of the employees much above that of the local rates of pay. Hours of Work: Companies facilities ensure employees hours worked shall not, on a regularly scheduled basis, exceed the legal limitations on regular and overtime hours in the jurisdiction in which they manufacture or 60 hours per week including overtime. Except in extraordinary business circumstances, all employees are entitled to enjoy one day off in every seven-day period. Health and Safety: Companies facilities provide their employees with a clean, Safe and healthy work environment, designed to prevent accidents and injury to health arising out of or occurring during the course of work. All Companies facilities comply with all applicable, legally mandated standards for workplace health and safety. All the workers and staff enjoy free medical treatment. Company doctors are available full time. Discrimination: The company respects cultural differences, employment–including hiring, remuneration, benefits, advancement, termination and not on belief or any other personal characteristics. The company's policies do not discriminate on the basis of race, age, color, national origin, gender, religion, sexual orientation, disability or similar factors. Harassment: The company's policies treat all employees with respect and dignity. Companies facilities do not subject employees to corporal punishment, physical, sexual, psychological or verbal harassment or abuse. Woman’s Rights: The company's policies ensure women workers receive equal treatment in all aspects of their employment. Pregnancy test is not a condition of employment, and pregnancy testing – to the extent provided by Silva Group facilities – will be at the option of the worker. Employees are not exposed to hazards that may endanger their reproductive health, and employees are not forced to use contraception. Fully equipped CRECHES are available for the female workers having babies. Monitoring and compliance: Companies facilities maintain on site all documentation necessary to demonstrate compliance with Global compliance Principles, Companies and its subsidiaries undertake affirmative measures, to monitor compliance with Global Compliance Principles. The company’s facilities allow Buyer’s representatives full access to production facilities, employee records and employees for confidential interviews in connection with monitoring visits. In addition Companies facilities respond promptly to reasonable inquiries by Buyer’s representatives concerning the subjects addressed in an audit.

C o m p a n y P r o f i l e 2 0 1 0 | 17

Moreover we ensure that standards of compliance on the part of our own employees and buyers are actively audited and monitored and are an integral part of the day-to-day management process. Suppliers & buyers relationship We seek to develop long-term business relationships with our Buyer’s who should have natural respect for our ethical standards in the context of their own particular culture, Our relationships with Buyer’s are based on the principle of fair and honest dealings at all times and in all ways. We specifically require our suppliers to extend the same principle of fair and honest dealing to all others with whom they do business including employees, sub-contractors and other third parties, For example, this principle also means that gifts or favors cannot be offered nor accepted at any time. Environmental aspects The realization of environmental standards is a complex issue – especially in developing countries. It therefore needs to be continuously reviewed within the limits of what is achievable per country. We will work without buyers to help them to meet our joint obligations towards the environment. Our environmental endeavours include an on-site ETP plant and recycling of process heat to reduce carbon foot prints. Freedom of association We recognize and respect the freedom of employees to choose whether or not to associate with any group of their own choosing, as long as such groups are legal in our country. Thus we have a Worker’s Participation Committee on site which undertakes its own meeting within worker representatives regularly and independently (from management control). Awareness & training We take all necessary steps to ensure that our employees and buyers are made fully aware of our standards and requirements. Necessary training is provided to all personnel on site to promote full understanding and co-operation with the aims and objectives of the code. Development of the code We accept the need for continuity and consistency; we continue to recognize that this Code must be developed over time in the light of practical experience and changing circumstances. We shall continue to ensure that the Code is reviewed on a regular basis and revised when appropriate.