Palmal Group of Industries

Palmal’s Background

• Established in the year 1984, Palmal group of industries ensure its quality, standards and is engaged in manufacturing of all kinds of knitted garments.
• Engr. Nurul Haque Sikder is the founder of company. Now he is present chairman of group.
• Managing director Mr. Nafis Sikder, son of Engr.
• Nurul Haque Sikder took the leadership in the year 2001. He is guiding the group with his wide experience and skill.

Business Intervention

Palmal is mainly RMG focused group of industries. Expanding in the areas of knit composite and other backward linkage industries.

Palmal’s Vision

Palmal stands behind its garments products with quality assurance. Palmal believes that quality is never an accident. It is always the result of high intention, sincere effort, intelligent direction and skilful execution. To provide customers with the most comprehensive sourcing, production, design & product development service, guaranteeing quality, competitive pricing & quick turnaround times with an excellent professional personalized service.

Palmal’s Mission

Palmal’s mission is to be the market leader, in providing clothing from Bangladesh to its customers around the globe. To be a market leader it is committed to develop high quality, sophisticated and deviation-free products in its capacity and make on time delivery to its customers.

Objectives of Palmal

Palmal has name objective for the development of the society.

The objectives of palmal are giving below:

1. To increase the economic development of the country.
2. To create employment opportunity.
3. To play positive in the process of industrial development of Bangladesh.
4. Palmal Assures quality and customer services.

Palmal’s Commitment

• Regular production updates to the Importer.
• Facilitate & Co-ordinate the Buyer’s visits to Bangladesh.
• Handle orders of any volume, style & color.
• Short lead times & in time delivery.
• Best quality and first service.
• Handle orders of any volume, style & color
• Excellent customer service.
• Best service from others.
• •A headache & hassle free one stop solution to Importers
• 100% clients satisfaction

Under the corporate strategy, it determines for which customers or clients it will produce product, which new product it will produce in future, which new strategy it will take for international market to survive. Operations strategy: To do its daily activities palmal takes operations strategy. These strategy help palmal to achieve the company’s corporate strategy. By using these strategies, it takes decisions about when the products produce, where it produces the products, how many workers it needs, what are the training requirements of the worker, what is the target level of quality for the products, how should suppliers be selected, what is expected from the suppliers, what types of technology it should be used to develop its product etc.

Palmal’s product

This company produces knit garments product especially. The main products of palmal are:

• Man’s T-shirt
• Sport wear
• Long sleeves polo shirt
• Man’s sweater
• Women’s sweater
• Man’s jacket
• Women’s jacket
• Corporate uniform
• Baby long sleeve T-shirt
• Baby suit

Technology used in Plamal

Palmal group uses version types of technology to run their daily activities such as

1. Telephone
2. Fax
3. Entrance control system: This is the system that controls employee entrance and leave employee uses their entry card to enter office. A central computer record employee they use the card and computer saves their leaving time.
4. E-mail: Palmal widely use e-mail. To communicate with its customers and suppliers. They order raw material through e-mail. They also receive order by mail. The employees of Palmal use e-mail to communicate among themselves. This type of communication helps interdepartmental communication. Palmal is not using ERP because management thinks that ERP will disclose confidential data to employers. However, at present its management team have award about the importance of ERP.

They are planning to implement ERP in their organization very soon, as they are facing many types of problem not for using ERP.

Manufacturing strategy

To produce products palmal applies Make-to-order strategy. After taking the order from the buyers then it produces the product. Therefore, inventory is kept at a minimum level.

Manufacturing process

Palmal follows assembly process to produce the product. It collects different finished goods from its suppliers. After collecting various finished goods then it produces a whole product. To produce a shirt as a whole product it collects buttons, nylon fabrics, and such kinds of different finished goods.

Different Stitch Number and their applications

• 100 Stitch Class – Basting Button sewing BTN whole spot taking
• Chain Stitch – hamming, belt loops filling
• Blind Stitch – 200 Stitch Class
• Back Stitch – To attach laise and elastic
• Catch Stitch
• Running Stitch
• 300 Stitch Class – To lock parts of bodies bottom rolling
• Lock Stitch – 400 Stitch Class – |To attach main seam permanent edges
• Chain Stitch – 500 Stitch Class |
• Over lock C/S
• Surging blind hemming
• Seaming Surgin
• Break open Surging

Stitching process

All the above stitch used to make any garments. But what stitch will follow in which process will be notified by the buyer. By following that instruction, Palmal can only stitch the garments. Stitch also depends on the process of stitching. For heavy fabric or critical process, the stitch will be different and for the thin fabric and easy style, stitch will not be same.

Quality Assurance

Palmal group is highly committed to produce and supply highly quality product to its customers. To produce high quality garments products they collect high quantity raw material from their suppliers.

Palmal groups have quality assurance department that is responsible to control and check the quality of raw products from their suppliers. As customers of Palmal group requires high quality products, they emphasis on high quality product. Their production control department ensures production is exactly as approved quality standards. Three or more inspections are carried out during the production process. Initial inspection, checks on fabric, wlor thread and first run of production. Second inspection and final inspection check on products and ensure whole production is up to quality standard. Palmal group believe quality products are the key to repeat business.

Turnover of Palmal

In 2007:

Approximately US$ 100 Millions equivalent to Tk. >700 Cores from Export.

In 2008:

Approximately US$ 110 Millions from Export.

In 2009:

Projected Turnover is US$120 Millions from Export

Embroidery capacity

• 6 threads with different color at the same time.
• 20 lines in each machine
• 650 Stitches per minute.

Same machine cannot be used for diff. jobs at the same time.

Why Palmal is the order winner?

Palmal’s Knowledge and commitment has made it a multi product company with clients all over the world. It works hard to address the expectations of its customer in an innovative way. It tries to maintain long listing relation with its clients and ensures serving best to them based on following parameters:

• High Product facility
• Sourcing of products from reliable manufacturers at competitive prices
• Good quality & on time delivery
• Believes in cost effective productivity
• Enjoys a reputation for “clean business practices
• Strong network of manufacturers and vendors
• Regular Supervision of products right from the production to the shipment stage .

Ordering system of Palmal

At this time, Palmal does not offer on-line ordering. Before ordering the product clients should communicate with the company through fax, telephone, letter or e-mail. Clients should print out the order form, fill it out completely and send with a check, money order, or credit card information to the address at the offices. They should also send the sample of the product to the company.

If everything is favorable for the company then Palmal take the offer from the clients.

Palmal’s client list

It is Palmal’s ambition to has a lateral thought process which will help in designing unique and innovative range of apparels. All its endeavors are well appreciated by its clients, which has motivated it to go beyond the expectations of its clients. As an accomplished house, it has clients across the globe. The customer satisfaction it is acquired has led to a strong credibility for UK & Europe in market. It is established its export market in Germany, Italy, France, Bangkok, Mexico, UK, Europe.

List of major clients or buyers:

• Gap Inc.
• Walmart USA
• Walmart Canada
• Charming Shoppes
• New Wave
• GEORGE
• Primark
• Zara
• Nygard
• K. Mart
• SEARS
• TESCO
• TARGET-Stores
• Li & Fung

Supplier’s selection criteria of Palmal

• To select suppliers Palmal follows some rules. Such as
• Quality-to purchase raw materials from suppliers at first it thinks the quality of the product. Because the future of garments factories heavily depends on quality.
• Cost- it thinks about the cost of the raw materials which it will purchase
• Delivery-on time delivery is a major to select a supplier
• Financial soundness-before purchasing it considers the financial soundness of the suppliers.

Inventory control system of Palmal

Palmal controls inventory to meet its future customers demand. It controls the inventory based on quantity. This system is designed to ensure that an item will be available on an ongoing basis throughout the year.

Types of inventory Palmal maintain

Palmal stock some important goods for its future safety. Like:

• Nylon fabrics
• Cotton fabrics
• Different kinds of buttons
• Plain Machine
• Button Attach machine
• Chain stitch machine

Palmal’s layout

The factories under the palmal group of industries are designed in such a way so that they can do their work properly. In factories similar machines are grouped together to do work. For example, to sew all sewing machines are grouped together in one area. Cutting sections are separated from other sections to do its cutting work. Inspection sectors are detached from others for checking fabrics.

Select a location for a new factory of Palmal

To establish a new factory Palmal basically thinks about

• Trade Zone
• Transportation facility
• Labor cost
• Export – Import facility
• Power supplies
• Rent
• Political environment
• Near to the competitor

SWOT analysis of Palmal

Palmal group of industries has achieved great success over a short time of period. However, the global market environment for textile and clothing industries is in transitional stage and will change at the end of the phasing out quota. This change in global trade will create new challenges for the company. Therefore, high productivity, free access in backward supply line, shorter lead-time determines the company’s competitiveness. The following analysis of strength, weakness, opportunities and threats (SWOT) concisely sum up the conclusion of the competitiveness of palmal group of industries.

Strength

• Low labor cost.
• Energy at low price.
• Easily accessible infrastructure like sea road, railroad, river and air communication.
• Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD & Cellular services.
• Scope for career development.
• Country leading Pay Master in RMG Sector.
• People developer.
• Having fully complint Factories.
• Consider people as “Resources”.
• Avoid discriminations to the best possible extent.
• Exercising fair practices in Employment.
• Value good workers and avoid troublemakers.
• Assure workplace safety.
• Factory is located in industrial area where company can enjoy uninterrupted power supply. Labor union is not all owed in the KDS groups since all labor related matters are dealt by KDS industrial area.
• Factory is able to ratify of their customer in the specific market according to their demand.

Weakness

• Lack of marketing tactics.
• A small number of manufacturing methods.
• Time-consuming custom clearance.
• Subject to natural calamities.
• Most of the raw materials from abroad, this is cause of high price, which are affected the production cost.

Opportunity

• Cheap and abundant labor force.
• Availability of foreign buyer in Steel Products.
• Palmal has a chance to create his own market by showing the quality of the products and working condition of the factory.
• To establish a new factory without long term agreement which is also based on the another buyer or customer by showing the new technology which is now at present

Threat

• Political situation of under developed country like Bangladesh is a major threat for Palmal.
• Technology is developing day by day. Therefore, technology is also changing rapidly.
• There is hardly any local source of raw materials Palmal, since backward linkage industries have not been developed in our country. Therefore, it is a threat for Palmal.

Awards

For consistence and good product and service provided to their customers, “Palmal Groups” won several national and international awards.

• “National Award”

For their contribution to the national economy and for successful operational activities “Palmal Groups” achieved President best Performance Award in two consecutive years.

• International Award

Palmal is always committed to provide their customers with high quality product and service. In return, of their quality maintenances they have got several awards from international buyers. The awards are— Best supplier award from “Wal-Mart” in 2004, 2006 and 2007

Recommendations & Conclusion

The company does not apply Operation Research models as well as tools. Initiative steps should be taken to apply Operation Research models as well as tools as early as possible to establish efficiency, productivity, competitive advantages etc. in the company. Palmal should use modern technology and software to develop its productivity and to increase its profit.

However, Palmal has strong managerial support for which over a period of last seven years the company’s business growth is more than 300%.