Divine Textile

Internship Report
On
Recruitment and
Selection Process
Of
Divine Textile Limited
Prepared for:
Ms. Abida Sayeeda Mallika

Faculty of Business Administration (Marketing)
INTERNSHIP [BBA]
Stamford University Bangladesh
Prepared by:
Md . Rieadh Rahman
ID # BBA- 03009659
Batch – 30th
Bachelor of Business Administration (Marketing)
Letter of Transmittal
May 02nd , 2010

Abida Sayeeda Mollika
Faculty of Business Administration
Subject: Submission of Internship Report.
Dear Madam,
It's a great pleasure to submit the Internship report titled “Recruitment and
Selection Process of Divine Textiles Limited ”. That has been assigned to me
for the partial fulfillment of the requirements of BBA degree.
I have tried my best to give the report a presentable shape and make informative to
fulfill the objectives of the study. I have enjoyed a lot during the preparation of
this report.
I would like to convey my gratitude and thanks to you for giving me an
opportunity to work on such a report that is very much relevant to my study. I
sincerely believe that the practical knowledge and experiences gathered from this
report will be very much helpful in my future life for doing any type of work.
If any confusion arises or any further explanation is needed. I will be readily
available to explain the matter to you, as the situation required.
Thanks.
Sincerely,
………………………………….
.(Md.Rieadh Rahman)
CERTIFICATE
This is to certify that Md. Rieadh Rahman Id- BBA 03009659

Batch- 30 student of BBA, Business Administration department ,
Stamford University Bangladesh has successfully completed the
comprehensive internship program at Devine Textile Ltd
Mohakhali Dhaka . During the period of internship he acquired
practical knowledge of the company office . His overall
performance was satisfactory.
He is permitted to submit the internship report.
………………………………….
Ms. Abida Sayeeda Mallika
Lecturer:
Department of Business Administration
PREFACE
Internship is an integral part of BBA program, because it gives us the practical
knowledge of what we have learnt during our study period. This report is written
to fulfill the requirement of BBA degree. Trading keeps much importance in
human life. This practice started when the human beings thought to live together
in the formal way. Small groups of people came together and small colonies were
established. This change in living style started exchange of the things. So when the
first thing was exchanged the trade was come into being.
Now a day the business environment keeps on changing everywhere. New
dimensions of business are coming before us. These dramatic and dynamic
changes in business world require the specialties about the all aspects of business
of today. Because of these requirements, business knowledge becomes important
and business education becomes the need of time. Only he person with latest
knowledge can survive in this vast field.
But practical knowledge is also necessary along with the theoretical knowledge.
This made the internship an integral part of BBA. One can see how the theories
and knowledge are being practically implemented. This report is about Divine
Textile Ltd. I did my internship here for Three months and this report carries the
information about history, organizational structure, marketing strategies and
SWOT analysis of Divine Textile Ltd. Divine Textile Limited an organization in
textile sector was assigned to me for internship. This report is about my experience
and knowledge, which I have gained during my internship program. In this report I
have made a humble attempt to express most efficiently and effectively what I
experienced and observe at (DTL). I think that this report will be really helpful for
those who want to know about (DTL).
ACKNOWLEDGEMENT
Up and above anything else, all praise to Almighty Allah alone, the Omnipresent
and the most Merciful and compassionate. The words are bound, knowledge is
limited and time is short to express his dignity. It is one of infinite blessings of
Allah that he bestowed me with the potential and ability to contribution towards
the deep oceans of knowledge already existing.
I pay hum-age to greatest personality of the universe; HOLY PROPHET

HAZARATMUHAMMAD (S) who is forever source and spring of guidance in
every sphere of life.
Without the declaration and contribution of the following numbers of individual,

this report has been not possible. I take this opportunity to express my grateful
thanks to my teacher Ms. Abida Sayeeda Mallika , Lecturer of the Stamford
University Bangladesh, for his officious and praiseworthy guidelines and
suggestion. He inspired me with this valuable guideline to complete this project
report successfully.
My sincere thanks to Mr.Razaul Karim , Executive Officer, Administration and to

those who working parts and helps in other ways contributed directly to its
development. Included among those making contributions were Mr. Ziaul Azam,
.
EXECUTIVE SUMMARY
Textiles have been an extremely important part of Bangladesh's economy for a

very long time for a number of reasons. The textile industry is concerned with
meeting the demand for clothing, which is a basic necessity of life. It is an
industry that is more labor intensive than any other in Bangladesh, and thus plays
a critical role in providing employment for people. Currently, the textile industry
accounts for 45% of all industrial employment in the country and contributes 5%
of the total national income. Recent year around 76% of the country's total export
income comes from this sector.
Divine Textiles Ltd. started its journey by establishing the first unit in 1997. One
year later the second unit was established. Divine Textile is a subsidiary company
of Divine Group. The Company was incorporated as a public limited company in
the year of 1994. The operation was started in middle of 1997. Within a very short
time of span the company achieved some significance success. Divine Textile
receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000.
Authorized capital of the company is tk. 40.00 crore. It’s paid- up capital is TK.
50.00 lakh. The business lines of Divine Textiles Limited are manufacturing and
marketing of garments and fabric. The factory is located in Kaliakoir, Gazipur of
Bangladesh. Its head office is located at Mohakhali in Dhaka.
Human resource planning is concerned with the flow of people into, through, and
out of an organization. HR planning involves anticipating the need for labor and
the supply of labor and then planning the programs necessary to ensure that the
organization will have the right mix of employees and skills when and where they
are needed. The forecasting methods described below provide key input for these
processes.
Selecting and recruiting good employees for an organization is indeed one of the
most crucial and critical aspects of running an organization as the decisions so
taken to this respect can either take the organization to the heights of success, or a
mistake or wrong decision in the same can altogether destroy the organization. In
this respect, it must be borne in mind that each individual has a valuable
contribution, irrespective of the position or status of the employee in the respective
organization. In the correct age of information and the equally competitive
business environment, it would be somewhat of a futile exercise to select and
recruit an employee simply upon the selector's gut feeling, the handsome
appearance, or even the fast talking candidate trying to show that he or she knows
everything needed for the respective position for which she or he is applying for.
Hence, the importance given to the various checks and measures for selecting and
recruiting good employees, and where possible the adoption of scientific
processes, even though all the checks, measures, and precautions taken for
selection and recruitment may prove to be wrong and may even possibly damage
the company's reputation. Then there is the important, yet equally crucial element
of rising number of candidates for each job or vacancy, compared to the number of
job openings, and the difference seems to be rising every year with graduates and
post-graduates entering the job market not by the hundreds, but by the thousands.
This then calls for selection and recruitment measures that are truly beneficial for
the organization, even though the best of techniques can prove an employer's
hiring decision as being wrong.
The report beginning introduced introduction of Divine Textile Limited. Then the
report shows mission statement, strategic goals and objective , production
principle, organizational overview: Marketing Overview, Operational Plan,
Management, Human Resource Management , Scope of the Project, Methodology
of the Research Work: Analysis and Discussion in Divine Textile Limited , SWOT
Analysis PEST analysis : The last part shows Findings of the study,
Recommendations and Conclusion and Bibliography
Contents Page No
Textile Industry in Bangladesh 11-25

Company Profile 26-27
Divine Group 28
Vision Statement 29
Mission Statement 30
Corporate Objective 31
Group Management Profile 32
Management Information 33
Managerial Strategy 34
Marketing Strategy 35-36
Marketing Activities 37-38
Marketing Department 39
Export Department Objectives 40-43
Export Sales Department 44-50
Export Purchase Department 51-52
Finance Department 53-56
SWOT Analysis 57-58
Detail of SWOT Analysis 59-61
PEST Analysis 62
Challenge of Textile Sector in Bangladesh 63-64
Competitive Strategy 65
Competitor Analysis 66-68
Personal Activities 69-70
Benefits and Facilities 71
Responsibilities 72
Work done during Internship 73
Recommendations 74
Conclusion 75
Bibliography 76
Textile Industry in Bangladesh
Immediately after the founding of Bangladesh, tea and jute were the most export-
oriented sectors. But with the constant threat of flooding, declining jute fiber
prices and a significant decrease in world demand, the contribution of the jute
sector to the country’s economy has deteriorated. The garment industry in
Bangladesh became the main export sector and a major source of foreign exchange
starting in 1980, and exported about $5 billion USD in 2002.
The industry employs about 3 million workers of whom 90% are women. Two
non- market factors have played a crucial role in ensuring the garment sector’s
continual success namely (a) quotas under Multi-Fiber Arrangement1 (MFA) in
the North American market and (b) preferential market access to European
markets. From 1995-2005 the WTO Agreement on Textiles and Clothing (ATC)
was in effect, wherein more industrialized countries consented to export fewer
textiles while less industrialized countries enjoyed increased quotas for exporting
their textiles. Throughout the 10 year agreement, Bangladesh’s economy
benefited from quota-free access to European markets and desirable quotas for the
American markets.
export market USA (textile) USA (clothing) EU (textile) EU (clothing)
market share in 1995 <3% 4% <3% 3%
market share in 2004 3% 2% 3% 4%
Divine Textiles Limited 11

As the above table shows, the market shares for Bangladeshi textiles in the USA
and both textiles and clothing in the European Union have changed during the
time period of the ATC. It is uncertain whether these favorable export markets
will remain since the expiration of the ATC in 2005. Textile exports from
Bangladesh to the United States did increase by 10% in 2009.
The textile industry has played an important role in Bangladesh’s economy for a
long time. Currently, the textile industry in Bangladesh accounts for 45 percent of
all industrial employment and contributes 5 percent to the total national income.
A huge 78 percent of the country’s export earnings come from textiles and
apparel, according to the latest figures available. Bangladesh exports its apparel
products worth nearly $5 billion per year to the United States, European Union
(EU), Canada and other countries of the world. It is the sixth largest apparel
supplier to the United States and EU
countries.
Major products exported from Bangladesh include polyester filament fabrics, man-
made filament mixed fabrics, PV fabrics, viscose filament fabrics and man-made
spun yarns. Major garments exported include knitted and woven shirts and
blouses, trousers, skirts, shorts, jackets, sweaters and sportswear, among other
fashion apparel. Bangladesh’s textile industry can be divided into three main
categories: public sector; handloom sector; and the organized private sector. The
private sector is the fastest .
The handloom industry provides employment for a large segment of the
population of Bangladesh and supplies a large portion of the fabric required by
the local market.

Textiles play an important role in the economic life of Bangladesh. The sector, in
addition to meeting the demand of fabrics and apparel domestically, contributes
significantly to the textiles and clothing (T&C) export trade. At present, more
than 78 %of the country’s export earnings come from T&C. The sector provides
employment to a workforce of 4.5 million and contributes 40 per cent value
addition to the manufacturing sector. Textiles as a whole play the most significant
role in the alleviation of poverty, provision of employment to rural women and
economic empowerment of women. The sector provides 200,000 jobs in the waste
recycling industry related to ready-made garments (RMG), contributes 10.5 per
cent to GDP, provides indirect employment for an 800,000-workforce in
accessories industries related to T&C and generates a huge cliental base for
banking, insurance, shipping, transport, hotel, cosmetics, toiletries and
related economic activities. Bangladesh entered the international T&C trade in the
early part of the 1980s, when the Government opted for a market-oriented
economy. Investments in the primary textile sector (PTS), i.e., spinning, weaving
and dyeing-printing-finishing (textile product processors), started at the same time
as the expansion and entry of ready-made garments (apparels and clothing) into
international markets. When Bangladesh entered the global T&C markets, export
earnings were insignificant. For example, during fiscal year 1981/82 (July-June),
the share of T&C in total export earnings was 1.1 per cent (comprising only
woven garments). Over the years, that share increased to 78 per cent of the total
earnings, to reach US$ 8.1 billion during fiscal 2005/06. Immediately after
liberation in 1972, the Government opted for a socialistic

economic policy by nationalizing all big industries. At that time, all large textile
mills were nationalized. However, when the Government opted for a market-
oriented economic policy, the textile mills were gradually handed over to the
private sector in phases. Ministry of Textiles records show that as of 2006 there
were 23 textile mills under Government ownership with 400,000 installed spindles
and a total capacity of 40 million kg of yarn production. However, most of the
mills are non-functional and the machinery is obsolete. Although the performance
of public sector mills has slowly declined, private sector mills have flourished
under the supportive policy of successive governments. Table 1 provides an
overview of the growth pattern of primary textile mills. Since the T&C sector
comprises spinning, weaving, dyeing-printing-finishing, handlooms and power
looms, export-oriented ready-made garment units and other ancillary textile units
table 2 provides a comprehensive idea about the size and contribution of each
sector in the national economy: There are different types of mills in the overall
T&C structure of Bangladesh. Table 3 shows the size and ownership of mills and
the average number of employees (three shifts).

Table 1. Growth pattern of primary textile mills in Bangladesh
Year No of Mill Spindle Capacity Growth sin spindle
capacity compared
with previous year (%)
1983 21 511 084 -
1982 49 922 934 -
1984 76 1 423 366 43.44
1985 84 1 701 823 19.56
2000 116 2 289 280 34.52
2001 145 2 252 310 02.75
2002 163 3 390 026 44.11
2003 174 3 419 504 0.87
2004 197 3 931 624 4.90
2005 230 4 937 363 25.58
2006 250 5 500 000 11.39
A. Trends in Bangladesh production and exports by markets
Since the T&C sector occupies a very important position in Bangladesh’s
economic life, significant support has been provided by the Government in
meeting the challenges of globalization as well as the negative effect of the
abolition of the Multi- Fiber Arrangement (MFA). The Government initiated some
positive efforts in enhancing the competitiveness of T&C in order to put the sector
on a par with competing countries. As a result, a large investment has been made
during the past few years, mainly in spinning (see table 1). With the increase in
investment, the level of productivity has also risen, providing support for local
exported-oriented RMG units in competing on international markets. Tables 4 to
11 provide an overall view of production, export trade, destinations etc.

Ownership and size of mills
Type of Mill Ownership structure Average number of

employees
(a) Spinning mills, 97% Private Ltd Co.
1000
(b) Spinning mills, 3% Public Ltd Co.
1500
(a) Weaving mills (SMEs), 70% Proprietorship
175 t0 185
(b) Weaving mills, 30% Private Ltd Co.
225
Specialized textile and power Proprietorship
40
looms
Handlooms (Small) Proprietorship
5 to 6
Knitting, knit dyeing (SMEs) (GF) Proprietorship
110 to 120
(GF) Proprietorship 110 to 120 Proprietorship
110
Dyeing and finishing.
Export Oriented RMG Units Private Ltd Co.
500
Private Ltd Co.
Others (Trade Association, -15
buying houses, sewing
thread, local agents etc.).

Table 4. Annual production of yarn and fabrics
Yean production (million Kg) Fabric production (million Kg)
Year Public Private Total Public Private Total

Sector Sector Sector Sector
1995/96 15.90 157.01 172.91 2.79 1 262.43 1 265.22
1
2000/01 15.81 186.76 271.57 - 1 845.00 1 845.00
2001/02 15.39 204.81 298.50 - 2 050.00 2 050.00
2002/03 9.35 330.65 340.00 - 2 200.00 2 200.00
2003/04 9.70 370.30 380.00 - 2 750.00 2 750.00
2004/05 9.48 440.52 450.00 - 3 100.00 3 100.00
2005/06 8.00 530.00 538.00 - 3 500.00 3 500.00
It is clear from table that the performance of the public sector is gradually
going down in terms of yarn production and total stoppage in fabric production.
An in-depth analysis of table 5 shows that during recent years exports of
knitwear items have almost overtaken woven garments. Although woven garments,
knitwear, home textiles and textile fabrics all achieved persistent growth during the past
five years, the growth rate in knitwear has been phenomenal compared with the other
categories. This growth pattern has been attributed to the expanding domestic availability
of raw materials due to expansion of the spinning subsector as well as an active
marketing approach by entrepreneurs, supported by a favorable policy package.

Table 5. Exports of textile products
(unit US$ Million)
Year 2005/06 2004/05 2003/04 2002/03 2001/02
Knit woven 3 816.98 2 819.47 2 148.02 1 653.83 1 459.25
Woven 4 083.82 3 598.20 3 538.07 3 258.27 3 124.56

garment
Home 165.25 156.14 135.49 71.38 75.58
textile
Textile 36.88 16.96 27.15 21.70 48.08
fabrics
Table 6 shows that in woven garments, trousers rank first in terms of export
value. Although woven shirts are in second place, their growth rate is not worth
mentioning when compared with the exports during the past five years. Jackets
have shown a fluctuating trend.
Table 6. Export trend of woven garments
(unit US$ Million)
Year 2005/06 2004/05 2003/04 2002/03 2001/02
Shirts 1 056.87 1 053.34 1 116.57 1 019.88 871.22
Trousers 2 165.25 1 667.72 1 334.85 643.66 636.61
Jackets 389.52 430.28 364.78 464.51 412.34
Others 472.17 446.87 721.86 1 130.23 1 204.39

Table 7 indicates that knitwear items have achieved a continuous steady growth.
In fact, items such as T-shirts, sweaters and other items have enjoyed constant
growth. Table 8 provides an analysis of knitwear exports in terms of
destination/market for 2004/05 and 2003/04. Compared with figures for the United
States, Canada and Mexico markets, imports of knitwear items by the European
Union have been very high
Table 7. Export trends for knitwear
(Unit: US$ million)
Year 2005/06 2004/05 2003/2004 2002/03 2001/02
T-shirts 1 781.15 1 349.71 1 062.11 642.62 546.28

Sweaters 1 042.61 893.12 616.31 578.38 517.83
Others 992.85 576.63 469.60 432.83 395.14
Table 8. Knitwear exports by destination
Year 2004/05 2003/04 2004/05 2003/04

United States 401.061 236.543 14.22 11.01
Canada 118.652 70.788 4.21 3.30
European 2 232.459 1 789.995 79.18 83.33
Union
Mexico 6.109 5.499 0.22 0.26
Others 61.191 45.197 2.17 2.10
Total 2 819.472 2 148.022 100.00 100.00
(79.18 per cent and 83.33 per cent, respectively, for 2004/05 and 2003/04). In
comparison, the United States, Canada and Mexico collectively absorbed a total of
18.65 per cent and 14.57 per cent, respectively, in the same period. However, in
both regions there was a significant upward trend.

Table 9 shows exports of woven items by destination. The data reflect the export
figures of 2004/05 and 2003/04. In this regard, the European Union ranks first but
the market share is much below that which has been achieved for knitwear (43.30
per cent and 53.04 per cent, respectively, during 2004/05 and 2003/04). In
comparison, the United States, Canada and Mexico occupied first place in 2004/05
with 50.57 per cent and second position in 2003/04 with 44.84 per cent. However,
in both regions there has been overall growth.
Table 10 shows that exports of home textiles (a new item added to Bangladesh’s
textile export basket) have been growing. Most of the products under this heading
are for the European Union market. The European Union market share was 83.12
per cent and 77.50 per cent, respectively in 2004/05 and 2004/04. This is due to
the presence of European Union multinationals such as IKEA having buying
offices in Dhaka. The American region imported around 14.54 per cent and 18.88
per cent, respectively, during 2004/05 and 2003/04, respectively.
Table 9. Woven garment exports by destination
Year 2004/05 2003/04 2004/05 2003/04
United States 1 622.902 1 391.637 45.10 39.34
Canada 188.601 185.912 5.24 5.25
European 1 704.855 1 878.243 47.39 53.09
Union
Mexico 8.316 8.986 0.23 0.25
Others 73.531 73.288 2.04 2.07
Total 3 598.205 3 538.066 100.00 100.00

Table 10. Home textiles export trends
Year 2004/05 2003/04 2004/05 2003/04
United States 12.923 13.761 8.28 10.16
Canada 9.822 11.812 6.29 8.72
European 129.789 105.023 83.12 77.50
Union
Others 3.604 4.899 2.31 3.62
Total 156.138 135.495 100.00 100.00
Table 11 provides an interesting picture. The major buyers of textile fabrics are
local exporters of ready-made garments. They buy the fabrics either to meet export
orders or to use as pocketing material. In that regard, local consumption amounted
Table 11. Textile fabric exports trends
Value (US$ million) Percentage of market share by destination
(%)
Year 2004/05 2003/04 2004/05 2003/04
Domestic sales 7.099 6.622 41.83 24.39
United States 3.526 13.485 20.78 49.67
European 2.391 4.041 14.10 14.89
Union
Canada 0.126 0.650 0.74 2.39
Mexico 0.110 0.800 0.65 2.95
Others 3.718 1.549 21.90 5.71
Total 16.961 27.147 100.00 100.00
to 41.83 per cent and 29.39 per cent, respectively of the total market share of
textile fabrics during 2004/05 and 2003/04. On the other hand, the American
region

accounted for 22.17 per cent and 55.01 per cent, respectively, during 2004/05
and 2003/04. The European Union market consumed 14.10 per cent and 14.89 per
cent of the fabric, respectively, during 2004/05 and 2003/04. In both the American
and European Union region markets, the share declined in 2004/05 compared with
2003/04. B. General export trends for some new products
1. Denim trousers Bangladesh emerged as the number one supplier of denim
clothes to the European market, commanding a 27 per cent share of import during
the first half of 2006. Exporters said that increasing availability of locally-
produced denim fabrics and the enhanced ability to offer the most competitive
prices helped Bangladesh gain a greater market share. Restrictions in the European
Union on certain types of apparel from some Asian countries have also benefited
the Bangladesh denim sector to a great extent.
In terms of earnings, however, Bangladesh ranked third because of the exporters’
concentration on low-cost dresses. The latest compilation of European Union data
shows that, during January-June 2006, Bangladeshi apparel manufacturers shipped
about 24 million pairs of denim jeans in the men’s and boys category to European
importers. Export volume during the same period increased by 26.15 per cent and
stood at the top with 26.76 per cent of total European imports of denims. On
average, Bangladeshi denim exporters charged a 4.03 unit price for men’s and
boys’ jeans, whereas the20 global average was 7.38 per unit.
In the women’s and girls’ denim category, Bangladeshi exporters saw the volume
increase by more than 91 per cent to about 17 million pairs during January-June
2006. Bangladesh also topped the list in this category with 18.59 per cent of the
European Union market share, which was more than double the share for the
previous year. However, Bangladesh lagged behind in terms of earnings from
women’s and girls’ denim

clothes. Local capacity for producing denim fabrics has expanded significantly in
recent years, which has helped apparel manufacturers to cater to the demand from
European buyers.
2. Diversity in sweater exports The country’s sweater exporters have recently
earned an encouraging response from buyers in the European Union by exporting
high-value woolen products made of cashmere, the very fine, soft fabric made
from the hair of Kashmiri goats. Bangladesh’s exporters have doubled their
European Union market share in recent years. The export growth in high-value
cashmere items indicates a very encouraging diversity in the sweater sub sector.
Exports of cashmere items from Bangladesh grew by 108 per cent during January-
August 2006. Bangladesh has emerged as the third-largest cashmere sweater
supplier to the European Union. Currently, the market share of Bangladesh-made
cashmere sweaters is 12.2 per cent while China and Hong
Kong, China, jointly hold 39 per cent, followed by Madagascar at 17 per cent.
Bangladeshi manufacturers mainly depend on wool of Mongolian origin. Since
cashmere sweaters are made of expensive raw materials and need sophistication in
the production process, production is a risk that exporters are afraid to take. If
entrepreneurs want to capitalize on the demand for this product, policy support
will be needed. The emerging trend in the global sweater market is apparel made
of wool and natural fibers. If the industry can exploit the market and gain high-
value business, it may emerge as the ultimate winner.
3. Demand-supply gap in textile products and investment opportunities
in the primary textile sector With the continuous development and penetration in
the textile market as well as diversification in products, there has been a
significant demand for fabrics and yarn during the past five years. However,
domestic fabric manufacturing mills cannot cope with the demand. As such, a vast
scope exists for investment in fabric production

Table 12. Total demand-production gap between fabrics for domestic
and export-oriented RMG Units
Demand for fabrics Unit: Million meters)
Financial Domestic Export- Total Domestic Demand
year oriented production production
RMG gap
2000/01 1 595 2 246 3 841 1 800 2 041
2001/02 1 618 2 568 4 186 2 050 2 136
2002/03 1 754 2 779 4 533 2 280 2 253
2003/04 1 865 3 323 5 188 2 750 2 438
2004/05 1 960 3 880 5 840 3 200 2 640
Table 13. Projected demand for fabrics for domestic

and export-oriented RMG
(Unit: Million meters)
Year Domestic Knitwear Woven Total Grand total
market (growth
(growth rate rate 3%)c
4.75%)a
2004/05 1 960 2 140 1 740 3 880 5 840
(Base year)
Projected 2 050 2 675 1 790 4 465 6 515
2005/06
2006/07 2 150 3 210 1 845 5 055 7 205
2007/08 2 252 3 720 1 900 5 620 7 872
2008/09 2 360 4 200 1 960 6 160 8 520

Notes:
a Projected demand for fabrics for domestic consumption assumed to increase at
4.75 per cent per annum up to 2009/10.
b Projected knitwear exports assumed to increase at a declining rate from 2004/05
to 2009/10 at 25 percent, 20 per cent, 16 per cent and 13 per cent, respectively, per
year.
c Projected woven garments exports assumed to increase at an average rate of 3
per cent per year from 2004/05 to 2008/09.

Company Profile
Divine Textile Limited (DTL) has an existing knit textile unit housed in the four
storied RCC and one storied steel truss and steel sheet roof building at kaliakor
Gazipur. The factory was set up with the financial assistance of Tk 5.00 crore
from IFIC Bank Limited in1997. financial help was taken from the Bank for
import of brand new knitting, dyeing and finishing machinery of the project .
After successful implementation of the project, the company went to production
since middies of 1997. Presently the project is operation with annual knitting
capacity of 12 lac kg knit fabric and 1.50 lac dozen of knit garments.
DTL has been manufacturing knit garments mainly in Europe market at a
attractable FOB price .Besides, they also supplies their knit fabrics to local 100%
export oriented garment industries under back to back L/C arrangement.
According to loan (TK 5.00 crore) sanction terms of the financial institution
(IFIC) payment would be started from the last quarter of 1999 and the loan will be
expired in 2005. The factory is manufacturing and marketing their products with
very high satisfaction. The sponsors of the company have already paid above TK
923.16 lakh toward adjustment of bank loan from the factories own generation.
However payment is to yet start as per schedule provided by bank and the project
is enjoying grace period. Present balance in the loan account is TK. 325.26lakh.
Besides project loan DTL has also been availing running capital facilities from
IFIC in the shape of Back to Back L/C and sod limit. They are regularly paying
interest and commission to the bank against SOD drawing and opening of Back to
Back L/C. In the operation of first year company had earned net profit at 1.50
crore as per audit balance sheet. In the fiscal year July 1998 to Jun 1999 the
companies operating profit was TK 4.50 crore as per provisional balance sheet.
The company has been generated tax holiday for seven years within effect from
1997 by NBR. So there is no income tax burden on the company seven years.

The company is now manufacturing dyed knit fabric and garments and exporting
the same mainly to Europe. But currently fleece garments is a very thrust item in
the present world market.
If DTL can make baby terry , micro fleece and polar fleece garments then there
will be a great scope for them to penetrate in the new market zone in Europe.
Except this , the fleece garments is high value added item and the project can
make its profit maximum which such kind of product.
The company has been receiving a lot of enquiries for fleece garments from its
European buyers . Recently they have already undertaken to an agreement with its
principal buyers
of Germany for export of at least 2.00 million pieces of fleece garments per year
initially.

The Divine Group
The Divine Textile is a part of Divine group. Which has established about 30
companies
in various part of the country. The major sector of the group is an under.
Listed Companies:
· Divine Textile Limited
· Divine Textile Limited ( unit-2)
· Divine Cold Storage Limited
· Divine Fabrics Limited
· Divine Elastic Limited
· Divine Sourcing Limited
· Chowgacha Apparels Limited
· Chowgacha Printing Limited
· Alliance International
· Nice Thread

Vision Statement
 Attain highest standards of quality in its all business activities.
 Sustained growth in real terms.
 Have professionally trained high quality motivated workforce, working as a
team in all environments.
 Attain past glorious position and be recognized locally as well as possible.
internationally as a dynamic, quality conscious and progressive company and
industry leader.

Mission Statement
To manufacture quality products for customer satisfaction through :
 Honoring the commitment.
 Continuous endeavor for improvement through adoption of most modern technology in production.
 Strict adherence to quality control.
 Developing a sense of high reliability through fair dealing.
 Becoming a part of country’s development and economic prosperity.

Corporate Objectives
Following are some main objectives of Divine Textile :
Ø To arrange timely production and maintain quality goods for entire satisfaction
of the
Customers.
Ø To make Divine Textile a first choice for the foreign customers by improving
its quality and services.
Ø To extend exports all over the world through better services.
Ø To establish and develop excellent working environment in the departments.
Ø Computerization
Ø Incline a sense of civic responsibility in the staff members
Ø To achieve company’s objective
Ø To provide the employees a friendly atmosphere to increase their commitment

and
loyalty towards their organization.

Group Management Profile
Board of Directors :
Mr. Md Maruful Islam (Chairman)
Mr. Md Hasnuzzaman (Managing Director)
Mr. Md Anwar Hossain (Director)
Mr. Abu Mohammad Sahidul Islam (Director)

Management Information
Board of Director
↓
Managing Director
↓
Production Manager
Dyeing Manager Knitting Manager
Quality Controller Account Manager Quality Controller
Boiler Attendant Commercial Officer Line Chief
Skilled Labor ↓ Supervisor
Un-Skilled Labor Security Gard Stitching Labor

Managerial Strategy
As it’s major competitors are in the country as well as in the foreign markets,
while concerning with the countrywide competitors, there are major competitors
like Square Textile Mills Limited, Beximco textile limited, Akij textile limited
along with major competitors in European market.
There is strictly needed a strategic focus to face the present intense competitive
situation. The market for textile products is becoming more competitive every
year. The customers are emphasizing on quality over all other thing and can easily
search the most cost-effective supplier anywhere in the world. Keeping this in
mind, Divine Textile focus has been on meeting its customer’s demands and
requirements, improving its competitiveness, increasing productivity, and
enhancing its existing quality control systems. So it has emphasized on the
implementation of the developed strategies. Every element of cost and quality is
continually scrutinized and measured according to worldwide standards by the
SGS Bangladesh limited. Each unit is independently analyzed as a cost center to
make cuts wherever and wherever possible. The Quality Assurance department
has been further strengthened with the addition of trained staff and state-of the art
equipment.

Marketing Strategy
Although it may be the duty of the government to ensure availability of cotton at a

reasonable price, it is the exclusive responsibility of Divine Textile to implement
the total quality management concept. If units are able to minimize wastage,
optimize cost of production, improve quality standards, ensure product
diversification and learn to market the finished products, no country can compete
with Pakistan. Taiwan, Hong Kong, Korea, Japan, are the large manufacturers and
exporters of value added textile products, but are dependent on Bangladesh and
other countries for their requirements of cotton, cotton yarn and fabric. Their edge
is in finishing good quality fabric; producing attractively designed garments
maintaining quality standards and abide by delivery commitments. These
countries also follow different marketing strategies, while the Bangladeshi
manufacturers first produce a product and then try to locate a customer; other
countries produce what the importers demand. Not only this, buyers are often
willing to pay a premium for odd specifications, short delivery time or immediate
commencement of shipments of small lots, extra care in meeting specification and
better quality standards, using better quality package which may not cost as much
as the premium offered. Lately, the manufacturers of yarn having pragmatic
thinking and realizing the tough completion have started producing dyed cones.
They have not only tabbed a new market segment but also get better return. Isn’t
it not innovative marketing?

Divine Textile has to realize the harsh reality that the days of cheap domestic
cotton are over, the import of textile products is being gradually open and quota
regime will be phased out gradually. They know their capabilities as well as
shortcomings, products they can produce and the products the foreign buyers
demand, we have to plan today how would they market their products is the days
to come.

Marketing Activities
Supply and trade information

Raw cotton is purchased directly from ginning factories or import on cash
payment basis, the company carries around 6 month’s supply of raw cotton at
time. The buffer stock for raw cotton is 25-30 days during lean months.
Purchasing usually starts at the beginning of the season and the company emphasis
on acquisition of the best possible quality of cotton each year. Cotton purchasing
for on season lasts for about 4-5 months. But during last 2 years purchase process
continued throughout the year.
Spare parts and dyes, chemical etc are imported. Dyes and packing materials are
purchased locally. The credit period for local purchases is 45 days and 15 days on
dyes and packing material respectively.
Distribution and selecting terms
The company exports are the major portion of both its yarn as well as cloth
production. In the local market yarn is sold directly to brokers who in turn sell it to
other mills for further processing.
Managing marketing information
Marketing consist of people, equipment and procedures to get, sort, analyze,
evaluate and distribute needed timely and accurate information.
Internal record systems
The basic information system used by marketing managers is the internal record
system. It includes order to payment cycle, sales reporting system prices,
inventory level etc. By receiving these information’s, managers can spot important
opportunities and problems.

The Divine Textile is maintaining its internal records by keeping order to payment
cycle. In this system sales/marketing department keep order up-date total order
quantity, balance quantity etc. excise dep’t. Prepared invoice under the instruction
of sales dept and goods are sent to their respective orders by special delivery.
Every firm has maintain its marketing intelligence system for the feed back from
customers and agents etc that what has been happening in the market.
Marketing intelligence system is a set of procedures and sources used by managers
to obtain their every day information about pertinent development on the
marketing environment. The production staffs of Divinr Textile visit the end users
for gathering information about their product results and they visit to end-user to
solve their problems.
Marketing research systems
Every manager is required to conduct marketing research, formal research on
specific problems and opportunities; they conduct a market survey and product
preference test and a sales forecast.

Marketing Department
Marketing department of for the execution of orders as well as marketing of the

products in foreign countries. The main objective of the department is to generate
the export business with quality products and better services as well as to provide
efficient after sales services.
Division O f Marketing Department Marketing department of DTL has two
divisions as following Export Sale Local Sale Now a day, export sale &local sale
departments are under logistics but work coordination of export marketing.
EXPORT DEPARTMENT
Divine has major business of exports, round about 80% of total sales are from
exports. As export market of Divine is divided geographically into four segments,
so to deal each segment a separate group op person is allocated who are
responsible for all the orders of that specific territory / segment.
Export in Europe
Export in Germany
Export in France
The process of flow of work in these sections of export departments is same, so I
have explained generally the process and functions of export department.
The export department is situated within the finance department. There are a lot of
workers, which perform different functions.

Export Department Objectives
Following are objectives of export department:
To survive in the world market
To earn foreign exchange for the development of the country.
Increase export for the growth of the company and the country.
To increase exports for the sake to obtain incentives and privileges of excise and
taxation
Increase exports for obtaining the optimum reputation in the foreign markets
To get the self-reliance and prosperity level of the company.
Functions of export department
Following are the main functions of export department:
Ø Getting orders from aboard
Ø Costing
Ø Making contracts
Ø Order completion one per sample
Ø Delivery of goods
PROCESS
Work in export is divided into four sections geographically for proper distribution
and handling of work. Following is the brief process for all sections of export
departments.
Finding Of Customers
General manager marketing and manager marketing of Divine makes contact with
the potential buyers through e-mail, telephone, faxes to get orders.

Similarly marketing manager along with the Chief Executive attend different
international trades fairs and present their products to get the buyer attention and
order.
Making Contracts
Marketing department of DTL takes following steps to make a contract with the
buyer:
1) Inquiry
Customer’s inquiries are received via telex, letters, e-mails or during meeting with
the customers. Inquiry documents are directly sent to CEO for review and
comments; if any absence of CEO, the inquiry documents are send to the GMM
for review. After CEO review, these are sent to the department in charge who after
reviewing distributes these documents to the relevant staff looking concerned
marker segments.
2) Feasibility and Availability Of Goods
Concerned sectional in charg reviews the customer’s requirements completely
before quoting price to customers and ensure that:
Ø The requirements are adequately defined
Ø Factory has capability to meet the customers desire or requirements.
Ø Conformation of raw material in house / from outside.
3) Costing The Approvals
After conformation inside / outside, sectional in charge prepare costing sheet of
department in charge review and approval of CEO / GMM.
CEO / GMM gives acceptable price or may suggest new price on costing sheet. In
absence of CEO / GMM gives acceptance. if both are not available then the
department in charge is authorized too.
4) Quote Price Offer to the Customer
After getting the approval of costing and review of customer requirements, price is
quoted to the customer for conformation.

5) Customer Approval
Customer accepts offer or may reject, if reject then the costing sheet again repaired
and the approval procedure repeated.
6) Contract Review And Issue
After reviewing the confirmation or purchase order, concern staff issues contract
after complete review and note it in export order register.
7) Amendment To Contract
Once the contract is established for quality, quantity, price and delivery. Any
request from the customer for change in assortment of design or increase /
decrease in quantity resets, L/C terms, price and delivery.
Customer may ask for any of the following changes
Ø L/C terms
Ø Quality increase / decrease
Ø Assortment of design
Ø Color ways
Ø Shipment schedule
8)- Review Activity
After receiving the amendments by customers, possibility of amendments is
reviewed of it is not possible then regret with the customer. Other wise impact of
changes in price, delivery communicated to the customer and its copy is retained
in the file for future references. The amendments copy with regards to quality
assortments, shipping or packing instructions and shipment schedule is send to the
department for implementation and follows ups.
9) Checking Artwork
After finalizing the contract and making entry in export order register, now
concerns A.M receives art work for the customer for processing the clothes per
customer’s desire.
Artwork contains no of colors and designed used for the final cloth and also the
packing, labeling and stitching instructions as well as telling about the sample size.
10) Making Strike Off
When A.M receives artwork then he gives instructions to the concerned
production staff to prepare strike off (sample) as per artwork send by customer.
After completion of strike off, these are checked by concerned A.M and are
delivered to the customer after the final approval, so the production on large scale
can be started.
If the customer approves the sample the export staff order of large production.
Other wise they only receive the cost incurred on the preparation of the strike off.

Export Sales Department
Functions
Arrangement of cloth for the export orders.
Demand
When the procurement department receives demand from PPC to purchase cloth
o now it is their responsibility to arrange required quality and construction of
cloth. So they adopt three ways:
Ø Purchase of grey cloth from the local manufactures
Ø Using Divine own cloth .
Entry in register and computer
After receiving demand grey procurement department enters the demand in to the
register and computer and 1 copy of these reports send to the CEO
Contract with local parties
Now production department contract with the different mills to provide them
required construction of cloth provided by Divine .
If the party agrees to take product from Divine and ready to make cloth with t their
machines that is a power loom or auto looms then a contract is finalized after
setting a suitable price with the approval of CEO.
Quotation
As the primary purpose of export sales is to manufacture the fabric from
subcontractors at conversion rate by providing the product from mills or outside.
These conversion rates and per meter yarn weight provided by the mills are quoted
by the party to get business. At the offer of export sales department, the vendor
and subcontractors send their quotation to export sales. The offers are made to
those vendors that are already working with Divine.

Comparative report
After receiving of quotation the comparative report is made and sent to CEO for
approval. In that report all the comparison is made subcontractors according to the
rate offered by them.
Price Approval
CEO gives the price approval at the quotation of vendor or subcontractor. If the
price quotation is rejected it is negotiated with party again and revised quotation is
send to CEO for approval.
Contract Issue
After the price approval by CEO, a contract is made including all the terms and
conditions settled with party. The contract contains the name of party, the date of
issuing the contract, quantity and quality of fabric, counts and number of bags of
yarn. Per meter weight in lbs of cloth.
.
Marinating Record
When a contract is finalized then production department is responsible to maintain
record which is supplied to the parties and cloth, is received against that from
these parties. Similarly it also maintain the record of Divine cloth delivery to
PPC department. For this purpose the production department updates two reports
daily and submit them to CEO.
Inspection report to export sales section
After receiving the cloth god owns its inspection is made and inspection report is
prepared. On the basis of inspection report the cloth status report is prepared. The
report is in triplicate form and sent to export sales department. One copy is send to
party and other is sent to the sales account and third is retained to the office
record. The quantity of grey cloth is entered in party wise register according to the
inspection report.

Rejected goods to party
The rejected goods are returned back to the party. The rejected grey cloth is
bought from the party only after the approval of CEO at reduced rates as compared
to normal rates. Rejected grey cloth is used in printing. Orders booked by the
customers considering for end use. The rejection can also be sold in the local
market.
Bills from Party
Bills are received from the party against manufacturing or purchasing of cloth.
The quality, quantity and the width verified in view the contract made with party
by export sales department. Verification of the bills is made through the records
(that records is maintained in party wise register and relevant files). After
verification the bills are sent to sales account department for payment.
Payment
The payment is made after the approval of CEO in the form of cheques. The
cheques are issued in favor of party against the execution of contract.
Export documentation
In the modern world all countries whether developed or under developed are pre-
occupied with problems of selling merchandises in foreign countries. When goods
are exported a number of documents are to be prepared unless the overseas trade is
properly documented, the exporter cannot receive payment and the importer
cannot make it.The major documents involved in the export process or in the
foreign trade are:
Invoice/indent

Letter of credit
Transportation documentation
Packing list
Certificate of origin
Certificate of inspection
Procedure list
Bill of exchange
Before going into elaboration of these documentations, one must know all about
them. No person can export any goods until he is registered as an exporter with
Director general of Export Promotion Bureau.
Invoice/indent
A commercial invoice is a commercial document by which the seller charges the
goods to the buyer. The in formations, which this document provides to the
exporter and the importer, are as follows:
§ Date
§ Invoice number
§ Name and address of the buyer and the seller
§ Order/contract number, description of the goods, quality, unit price and the total
amount of goods exported
§ Terms and conditions of the payments
§ Shipment details
§ Certification on the invoice
Letter of credit
The terms of letter of credit is defined as:

“The confidence of man in man”
In financial and commercial transactions this confidence is displayed by the
willingness of a creditor to grant to a debtor time for payment of the debt either on
the oral or written assurance of the letter that such payment will be duly effected.
The procedure and the parties involved in the letter of credit are as follows:
§ Buyer
§ Opening bank
§ Advising and negotiating bank
§ Shipper/Beneficiary
§ Contract of sales
Transportation document
International trade involves the movement of goods from the warehouse of the
exporter to the warehouse of importer. There are several modes of transporting
goods and several types of documents involved in transportation process
Mode Carrier Transportation document
By sea Shipping Co. Bill of lading
By air Airline Co Air way bill
By post Postal Services Post parcel receipt
By rail Railway service Railway
By road Trucking Co Road way bill
The transportation documents is the most important document because it is the
evidence the goods are being transported and it enables the importer to obtain the
delivery of the goods in due course.
Transportation document can be classified into two main types, which are as
follows:
Negotiable document

These are the documents whose title can be transferred from one person to another
person. The delivery of goods can be made to the final or existing holder of the
document. These include bill of lading, railway receipts etc.
Non-negotiable instruments
These are the documents where the title of the goods in not transferable. The
delivery of the goods is only made on the names of the consignee on
identification. Parties & documentation involved in export
The carrier
The firm, company or authority engaged in the business of the transportation the
goods, such as steam Ship Company, airline comp etc.
The shipper
The seller of the goods who wants to export his goods from his country to another
country is called shipper.
The consignee
The consignee is one to whom are the goods are to be exported. It may be an
international bank or the buyer himself.
Certificate of origin
It is a signed statement providing evidence of the origin of the goods. These are
often required by the authorities in the importing countries in order to satisfy
themselves that the goods originates from a country from which imports are
permitted or to support a claim for the professional import duty.
Packing list
It is a document, which lists each package and shows the contents of each package
including in particular shipment.
The following are the important features of packing list document:
§ It must list each package by number
§ It must show the contents of each package
§ It usually shows the weight and measurement of each package.
It is a document issued by the exporter bank on a written request signed by the
authorized signatory. Through form E State Bank of Pakistan exercises absolute
control over export process.
§ Known customers
§ Regular exporter
§ Regular customer but exporting first time
Bills of exchange
Bills of exchange is legally defined as,” An unconditional order in writing,
addressed by person to another, signed by the person giving it, requiring the
person to; whom it is addressed to pay on demand or at a fix or determinable
future time as uncertain in a money or to the order of a specified person, or to the
bearer.
Submission to export finance
After competition of these entire documents before the mentioned date, these
documents are finally checked in the S&D department. And are handed over the
export finance department to submit them in the bank, which send them to the
buyer bank and finally the documents are received by the buyers.
Quota management
This is also a separate section with in shipping and documentation department,
which is responsible to manage the purchase and sales of textile quota.
Textile quota is a restriction from certain countries like USA, and some European
countries like turkey. Pakistan can not export more then that fixed limits in these
quota countries.
This quota is distributed in different textile organizations including Divine through
textile associations like APTMA on the basis of yearly performance.
The quota section in S&D department of Divine perform following functions.

Export Purchase Department
Purchase department :
The department is located within the factory. There are eight employees working
in the purchase department.
The decision of the purchase of raw material is med by the top management or
when any new machinery or plant is to be acquired. At the time of the cultivation
of the cotton crop, the decision is made with considering the other factors like
requirement, price, quality etc that how much we should purchase and from whom
we should purchase and through what sources we can finance this purchase. So in
this regard, the Chairman with the consultation of the Mill Manager, General
Manager Finance and Technical Manager make the bulk orders.
The finance division helps them in this regard to arrange eh funds. So in this
regard, the select the bank that provides financing facility at lower rate of interest.
As far as the purchase of raw material is concerned, the purchased department
fully contributed its efforts in this regard. Whenever any section of the mills or he
head office requires any thing they make and purchase indent to the purchase
department. At mill, the storekeeper made this indent, on the other hand of the
required thing is available with him, he makes the delivery to that section.
When the supplier dispatches the goods to the mill, a dispatch advice is made by
the department t other store keeper that the items are dispatched to you. At mill, an
inward gate pass is made and the items sent to the store where the storekeeper
prepares goods receipt note after inspecting the items and this one copy is sent to
the purchase office and one copy is sent to the account s office

Function of purchase department
Following are functions of purchase department:
o Provide link between the workers and management
o Ensure the implementation of the rule and regulations of the company
o Inquires of the complaints against the workers
o To solve the problems and grievances of the workers.

Finance Department
This is the major department of the company. Finance department is located with
the factory. It prepares different kinds of financial reports and gives information to
management for decision-making purposes.
Finance department prepares the Income statements, Balance sheet, Trail balance,
Cash flows, Production report for the whole month, stock taking report yield
comparison report etc. these all reports are helpful for the management to make
production plan, financing decisions and other important matters. The head of the
department in finance manager. He is an accountant.
Function of finance department
Following are the main functions of finance department:
1. To prepare monthly and half-yearly reports
2. To keep the record of inventory and stock
3. To maintain a liquid position
4. To maintain adequate cash to run the operations of business
5. To reconcile the bank statements
6. To make payments to the suppliers
7. To maintain debt and credit balances of the customers
8. To deal with the sales tax and income tax departments
9. Preparations of vouchers
10. Prepare profit and loss accounts & income statements
11. Keep record for the payment of salaries

Components of finance department
Finance department consists of the following sections:
Payable, Contractors, Misc.
Bank negotiation & reconciliation
Store costing
Sales account costing
Excise
Audit
Payables, contractors, misc:
In this section usually payables are paid to the suppliers of all goods including
stationary, maintenance goods, cement etc. payable is made according to the
contract and according to the instructions of the CEO. Bill of the supplier,
inspection & receipt note, store purchase. Journal voucher is received after
inspection by store dept to this section and then bill is paid according to the due
date.
Bank negotiation & reconciliation :
This department starts working when documents reach back to Dhaka office.
Documents are recorded in document receipt register and in bank register.
Payments are received by two methods:
L/C = Sight, CDA, 120 days, 90 days
Contract = Bill of exchange:
If payment is required as according to L/C or contract without factoring then bank
charges the service charges and make payments on the due date. If post shipment
payment is required then bank works as a factor and makes payments after
deduction of mark-up.
A report is given to the G.M finance, on daily basis about the customer and
payment date. He makes decision either to grant discount to him or not.

Dividend :
Dividend is decided in the board of directors meeting and percentage is decided on
each share. Divine Textile posts dividends warrants to share holders at their home
addresses. In reply, for dividends. Checks are issued to the after checking their
records in register.
Store costing :
Inspection receipt note, the store costing section receives bill of the related. There
are checked against purchased order and Performa invoice in terms of quantity,
specification, price etc. After this, a bank payment voucher is prepared and sent to
payable section, which issue the checks to the related party and posted in the
ledger.
For import when advice from bank is received the work of store costing starts. It is
recorded in L/C ledger with all expenses and the arrival of Bill of Lading. It is also
recorded in ledger and payment is made to the exporter through bank.
Excise :
Excise section deals with the outgoing products for issuance of Gate pass. The
working of excise section starts after sale; when a loading program is received
from export sale & local sale processing. According to that program, gate pass are
prepared and issued to the god own keeper. After issuing Gate pass, its details are
recorded in the register and then sale invoices are prepared in which actual value
and sales tax value is mentioned.
Audit:
The internal audit section performs three types of audit:
1. Pre-audit
2. Post-audit
3. Physical verification
Pre audit deals with the local purchase, TA/DA, utility bills, while post audit deals
with L/C, cotton purchase, dry port, civil works etc.
The working of audit section starts from the receptions of voucher/checks, L/C;
ledger after this pre/post audit is started. At the completion of audit it is installed
and stamped and returned to finance and account department.
Vouchers :
●Store purchase Journal voucher
It is a voucher, which is used to record the store purchases.
●Bank payment voucher
It is the voucher, which is used to record the payments, which are made through
the bank.
●Bank voucher
The bank uses thin voucher to record the amount from the credit advice, which is
issued.
●Journal voucher
It is issued to record the entry in the books of account.
●Sales journal voucher
It is used to record the sales & sales tax.
●Cash payment voucher
It is used to pay the amount in cash
●Head office cash receipt
This receipt is used to record the proceeds of sales
●Bank receipt
When cash or check are deposited for credit to Divine Textile account, the bank
issue a credit advice and that is attached with the voucher.

SWOT Analysis
Strength: Weakness:
►ISO 9001-2000 ►High cost of

Production
►Strong Security System
►High quality product ►Centralized decision
making
►Latest mechanized machinery.
►Tremendous market positioning ►Less promotional
activities
►Highly qualified and skilled management
►Highly Motivated Workforce
►Adequate financial resources
►Competitive advantage

Opportunity : Threats:
►Organization Can
expand product lines. ►New Entry of
competitors
►Organization Can capture

new market segments around the world ► Buyer needs
demands changes
►Organization Can reduce the cost by proper

utilization of resources. ►Political
instability
►Organization Can hire more

well-educated and experienced person. ►Change of
government
policies
►Globally
Economic
instability

Detail of SWOT Analysis
Strengths:
ISO 9001-2000:
DTL is certified under ISO 9001-2000 and so it meets the requirement of
international standard and has a value in the mind of concern people.
Strong Security System
Divine has a greater security system. There are different hidden security cameras
which capture all the moments.
High quality product
Divine is using advance technology like they have modern machinery by which
the quality of product produced is very high.
Latest mechanized machinery.
They are using modern looms which they have purchased from Japan, Germany
and France. And by using that latest machinery the productivity of the employees
are very high.
Tremendous market positioning
Divine is one of the Pioneer Textile Group in the Pakistan so it has got the position
in the mind of its customer. And being an old textile company people are loyal
with it. Divine has a better position in the mind of its customers.
Highly qualified and skilled management
The management of Divine is skilled they have hired graduate people in their
management and also experienced people from all over the country.


Highly Motivated Workforce
They are providing better pay to their employees and also bonus to them which
motivate the workforce and they are doing well at work setting. Apart from that
they are giving their employees facilities of Convenience like personal car along
with fuel provided by the company too, which is a big deal for motivating the
employees.
Adequate financial resources
The owners of Divine are one of the richest persons of the Bangladesh and they
have more plant and investment in other industries . They have adequate financial
resources to meet their requirements.
Competitive advantage
Because it is an old textile originating from 1950’s and it has still kept its position
in the textile market on all competitors nationwide, which is its competitive
advantage.
Own Power Generation Plant
They have own power generation plant and Divine is the private organization
who start the power generation.
Weaknesses:
High cost of production
The production cost is high because of un-proper utilization of resources.
Centralized decision making
The decisions are made by the upper management which is weakness of the
Divine because they have not any proper idea about the prevailing situation and
their decision can be un-fruitful for the company.
Less promotional activities
The advertising and promotional cost of the Divine is very low it can take
advantage for more turn outs.

Opportunity:
Organization can expand Product Lines
Currently the Divine is not dealing in knitwear they can expand their product line
by producing knitwear. They have plants and the extra cost for the production will
be low for Divine. They also have better market repute.
Organization can reduce the cost by proper utilization of resources
If the cost of different matters which are not been utilized properly, is controlled
by the Divine management they can produce more at less costs. It has to develop a
further systematic process for controlling and managing resources.
Organization can hire more well-educated and experienced person
They can take advantages by hiring more skilled people and they should hire
young, fresh and energetic staff for their betterment. Because being human, you
always have the room for betterment in any aspect.
Threats:
Buyer needs demands changes
Because of the research & development the design and the product of Divine is
just satisfactory as compared to competitors in the global environment and they
are not fulfilling the demand of customers.
Political instability
Political instability effects the Divine because of the quota system, Government
can restrict the Company to export.
Changed of government policies
Government policies are changing day by day so it is always a threat for not only
Divine but for any company to survive in such an environment.
Globally Economic instability
Because of the economic instability the Divine and the “Dumping system” which
is rising on daily basis in the world can create many problems for the company
and any uncertainty in the world like 9/11 may also affect its overall exports.

PEST Analysis
Political Instability
The political situation of Bangladesh is not satisfactory. Due to the rapid change
in the Government every government sets its own new trade policies.
Govt. should apply sustainable policies for the beneficial of the exporters as well
as the investors.
Economic situation:
The economic condition of Bangladesh can also affect the foreign investors
increasing inflation rate make the cost of production high and thus reduce the
profit margin of the investor.
Social situation:
The change in the lifestyle of the people affects the growing demand of the
Divine products. The change in the lifestyle and needs in different demographics
also affect the demand of the customers.
Technological factor:
Technological advancement in all the sectors of the country has changed the entire
socio-economic environment. Especially in the textile sector there is a lot of
technological development.
Divine’s excellent computerized machines and devices have made extension in its
present setup of well advanced technology imported from Japan, Germany,
France, Hong Kong and UK.

Challenge of Textile Sector in Bangladesh
Presently the apparel export sector is multi-billion dollar manufacturing and export
oriented industry in Bangladesh. The success of ready-made garment exports from
the country over the last 30 years that has surpassed the most optimistic
expectations. Necessity of cloth was felt with the commencement of civilization.
Its demand not only increased in items of quantity but also flourished too many
splendor varieties. It is the largest sector in terms of its contribution to
employment, income generation and foreign exchange earnings. Recently, the
number of export oriented textile mills double from 2002, also doubling the
employment in the garments sector as well as the textile sector. But they faced the
trend of smuggling through the porous border, import on false declaration and
under invoicing increased at an alarming rate in the last few years. The blames
also angered both BGMEA and BKMEA as the manufacturers and exporters of
garments, including knitwear, mainly import textiles as raw materials. The
uprising ready-made garments industry and its export earnings are a big success
for Bangladesh. It is necessary to develop the textile sectors for a developing and
surviving export oriented garments industry. DDMCL always confident of
scrapping the old equipment, induction of new equipment, the trained manpower
and the newly installed machinery to increase the volume of production enabling
to secure new markets and thereby increasing the sales. The demand for the new
range of products in the export and local market remains very high. Increase in
productivity and efficiency is expected to have a positive impact in the cash flow
of the company. The management and staff of DDMCL always committed to
steady growth of the Company. It is able to maintain the positive trend of the
company and continues to improve the performance. Consequently the company is
to utilize its full efforts to achieve the target of production as well as the export
and local sales. However, the team is working hard to make the company more
profitable with increased productivity with rational production cost; now the

company is one of the best textile mills in this country. Bangladesh Textiles Mills
Association (BTMA) proposed to the government to set up a Central Bonded
Warehouse (CBWH) as well as SAARC commutation, which would benefit both
the textiles and garment sectors of Bangladesh. Earlier the cabinet decision
rejected the proposal but they decided to increase facilities quickening the land
and seaport formalities helping reduce the “lead time”. As a whole Printing,
Dyeing and Garment industries of Bangladesh have no treatment plant for the
waste products or flow out water. Therefore, there is a fall on its adverse impact
on environment.
We, therefore conclude that the DDMCL has bright future to contribute through
production of quality yarn and fabrics for meeting our garment’s demand. This
depends on sincere efforts of our human resources engaged in the textile industries
and wide participation in global market through consciousness, product
development and diversification.

Competitive Strategy
As for as Divine Group is concerned its own name is its competitive advantage.
Being an
group it has its own name in the field of Textile as well as sugar. As I have told in
the
above segment that it has business of Methane gas in Europe it is its competitive
advantage. As dealing in one different side gives you edge over competitors in
other
field.
Furthermore, its financial assets are also an edge for the group. As being late in
paying
any party makes future problems which result in delivery of any product to be late
and
resulting in bad image of the company.
It’s has many competitor like as the Akij group, Square group, Beximco group etc
.

Competitor analysis
The business environment of Divine Textile is facing tough competition.

Its major competitors are also inside the country as well as in the foreign markets.
While concerning with the countrywide competitors, there are major competitors
and there are also other major competitors in the European markets.
The market for textile product is becoming more competitive every year. The
customer is emphasizing on quality over all other things and can easily search the
most cost effective supplier anywhere in the world. Keeping this in view, Crescent
Textile Mills focus has been on meeting its customer’s demands and requirements,
improving its competitiveness, increasing productivity and enhancing its existing
quality control systems.
Following are some findings of our report:
Ø There are no motivating factors for the employees
Ø Companies personal policies are not good
Ø The performance appraisal are not carried regularly
Ø Company is facing the main problem of textile industry crises in the country due
to floods, leaf curl virus etc.
Ø The company is unable to use its full plant capacity, which shows that technical
staff is not up to the standards
Ø The employees are not much aware of latest available computer programs
Ø The management is not doing anything for the purpose of satisfying and
motivating their employees and the workers, which may lead towards the more
productivity.
Ø Changing Government policies are providing problems for the company
exports policies The short-term solvency and long term solvency of the company
is better and still acceptable, because there is still a margin of getting long-term
loan.

Following are some suggestions:
Ø A proper training should be given to the employees and the workers to enhance
their skills to increase their productivity and ultimately of the company.
Ø The management should make the market survey time to time to get more and
latest information about the market factors like the price, demand, current
consumer trends etc.
Ø As the world has become a global village, the management should have the
latest knowledge and information’s about the world because now a little change in
any corner of the world can affect your business.
Ø The top management should give the autonomy and the flexibility to every
manage to make decisions according to the situation at any time and in the absence
of the top managers.
Ø All the duties and responsibilities of the employees and the workers should be
clearly defined.
Ø The computer technology should also be used in decision making as well as in
storing and feeding the data.
Ø The company should make it possible to deliver the goods to the buyers at the
agreed time.
Ø The company should adopt an efficient appraisal system and give rewards to the
employees who have done well.
Ø The management should recruit right persons for the right job.
Ø The management should be able to assess the problems before it’s occurring so
that they are able to find the ways of their solution.
Ø The management should hire multi-skilled workers to get economy of scale.
Ø The company should emphasize on its personnel department immediately on
emergency basis.
Ø Long-term solvency is good but time interest ratio should also be improved.

Ø There should be decentralization in decision-making
Ø An effective relationship and coordination between the departments must be
there.
Ø It should be realized to be very clear about the advantages and disadvantages of
each strategy to take effective decision about its continuity to make an effective
strategic implementation.
Ø Divine Textile should also introduce its brands in local markets.
Ø Company should give proper attention to deal with dead fabric and made ups.

Personal Activities
There is a separate personal department, which performs personal functions in

factory.
Recruitment and selection
The personal department helps the upper level management in selecting
employees. Vacancies are filled on the basis of experience, competency and
capacity.
Internal sources
If some vacancies are vacant and some junior person fulfills the condition then he
is promoted to that seat.
External source
There are following methods of external sources:
Employee referrals
Some jobs are fulfilled through the reference of the employees already working in
the Divine Textile.
Unsolicited application
Some times vacancies are filled by choosing among the persons who have send the
applications for the job.
Advertising
If there is any vacancy, an add is placed in the newspaper for that job.
Office working hours
9.30 A.M TO 1 PM
1 PM TO 2.00 Lunch Break
2.00 PM TO 5 PM ( HOLIDAY: Friday)

LABOUR TIMING
7 AM TO 12 PM
12 PM TO 12.30 PM Lunch Break
12.30 PM TO 5.30 PM
Retirement age
The employee is retired at the age of 58
Training and development
Training is mean through which a man learns how to do work and how one can
increase one’s efficiency. In Divine Textile training opportunities are available.
Job rotation
There is job rotation system in Divine Textile. In this way employees are able to
learn more about the system and procedure of the organization
Health and safety
Health facilities are available in Divine Textile for the employee whose salary is
below RS.3000
However following health and safety measures are taken in at the factory
v Fire extinguishers have been hanged on the walls to be more prominent.
v Incase of industrial injury, first aid is provided to the injured at the spot.
v The cotton is stocked in go down to prevent from fire moisture etc.
v No much woodwork has been carried inside the factory building.
V Sometimes provides Diabetic Medicine.

Benefits and Facilities
Medical facility
All employees enjoy medical facilities
Workers participation fund
All the permanent employees are entitled to become a member. The company
contributes every year some amount of profit for permanent employees.
Leaves
32 leaves per annum are allowed under different categories like sick leave, causal
leaves etc.
The top management is provided with fully maintained cars. Conveyance
allowance is provided to employees.
Traveling allowance
Conveyance allowance
T.A is paid to the employees if they travel for the purpose of the business

Responsibilities
Divine textiles have some responsibilities to the employee and labor :
1. Compliance with Laws and Workplace Regulations

2. Prohibition of Forced Labor
3. Prohibition of Child Labor
4. Prohibition of Harassment or Abuse
5. Compensations and Benefits
6. Hours of Work
7. Prohibition of Discrimination
8. Health and Safety
9. Freedom of Association and Collective Bargaining
10. Environment
11. Customs Compliance
12. Security

Work done during Internship
Under the guidance and supervision of the Marketing Program will be responsible
the following activities:
► Implementation of the marketing program

► Assist Help develop the brand strategy.
► Act as a brand ambassador – monitor correct use and promotion of the brand
Internally and externally.
► Assist with the production of marketing collateral e.g. brochures, information
flyers, etc.
► Liaise with different departments to understand their marketing needs and
respond
to them in a timely fashion.
► Assist with the development of a marketing and promotional campaign for a
new
publication launch.
► Responsible for internal communications newsletter.
► Assist in the organization and promotion of events .
► Assist with all other day to day marketing activities .
► Work as a key part of the Marketing team providing insight, ideas and support.

Recommendation
Divine Textiles Limited:
 The first and most recommendation is to eliminate one man show prevailing in
the
company.
 There must be a proper system for training of employees and supervisors.
 Importance should be given to employees’ turnover.
 Different training courses should be arranged for the up lifting and improving
the
quality of work for employees.
 There is also a problem of work overload for the employees and it should be
control
properly so that the employees are motivated. As I have seen employees working
till 8
PM. And I have come to know that sometimes they work till 1 AM late night
without any
incentive.
 Employees should be paid extra for the work which they do after working
hours.
Conclusion
We got a lot of experience from Divine Textile . During our internship we came to
know that how the different activities take place, what are the procedures
The Divine Textile is on the way of progress. It has been earning profit for the
last five years. The management is professionally qualified and experienced.
The Divine Textile should motivate their employees by providing different
incentives. Their salary package is also not attractive. The performance of the
Human
Resource department is also satisfactory.
Divine Textile product is of high quality. The demand of Divine
Textile products are increasing with the passage of time. The company should
expand its capacity as soon as possible to satisfy the demands of their customers.
Bibliography
Sources from where I have collected data:
Mr Ziaul Azam , Executive on Divine Dextile Limited, Report on Divine Textile Ltd. Dhaka.
Md.Humayan Kabir, Executive Officer, Administration, SWOT Analysis,

PEST Analysis, Internship Report on Square Textile Ltd. . Dhaka.
Source from Ministry of Textiles and Jute.
Source from Mr Towfique G. K .M. Hassan, Secretary-General, Bangladesh

Textile Manufacturers Association.
Source of Bangladesh export statistics, Bangladesh Export Promotion

Bureau.
Source from Bangladesh Textile Mills Corporation (BTMC)
Daffodil International University Journal of Business and Economics, Vol -1.

Textile Machinery Picture
(Flat Embroidery Machine) (High Precision Single Jersey Circular Knitting Machine)
(Knitting Machine) ( Quilting Machine)
(PET Fiber Production Line)

(Axial Fan)
(Fully Automatic Terminal Crimping Machine) (Computerized Quilting Machine)
Factory Interior Picture

Divine Textile

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Internship Report

Ms. Abida Sayeeda Mallika

May 02nd , 2010

Subject: Submission of Internship Report.

This is to certify that Md. Rieadh Rahman Id- BBA 03009659

He is permitted to submit the internship report.

I pay hum-age to greatest personality of the universe; HOLY PROPHET

Without the declaration and contribution of the following numbers of individual,

My sincere thanks to Mr.Razaul Karim , Executive Officer, Administration and to

Textiles have been an extremely important part of Bangladesh's economy for a

Textile Industry in Bangladesh 11-25

export market USA (textile) USA (clothing) EU (textile) EU (clothing)

market share in 1995 <3% 4% <3% 3%

market share in 2004 3% 2% 3% 4%

Divine Textiles Limited 11

Divine Textiles Limited 12

Divine Textiles Limited 13

Divine Textiles Limited 14

Divine Textiles Limited 15

Type of Mill Ownership structure Average number of

Divine Textiles Limited 16

Yean production (million Kg) Fabric production (million Kg)

Year Public Private Total Public Private Total

2001/02 15.39 204.81 298.50 - 2 050.00 2 050.00

2002/03 9.35 330.65 340.00 - 2 200.00 2 200.00

2003/04 9.70 370.30 380.00 - 2 750.00 2 750.00

2004/05 9.48 440.52 450.00 - 3 100.00 3 100.00

2005/06 8.00 530.00 538.00 - 3 500.00 3 500.00

An in-depth analysis of table 5 shows that during recent years exports of

of raw materials due to expansion of the spinning subsector as well as an active

marketing approach by entrepreneurs, supported by a favorable policy package.

Divine Textiles Limited 17

(unit US$ Million)

Year 2005/06 2004/05 2003/04 2002/03 2001/02

Knit woven 3 816.98 2 819.47 2 148.02 1 653.83 1 459.25

Woven 4 083.82 3 598.20 3 538.07 3 258.27 3 124.56

Shirts 1 056.87 1 053.34 1 116.57 1 019.88 871.22

Trousers 2 165.25 1 667.72 1 334.85 643.66 636.61

Jackets 389.52 430.28 364.78 464.51 412.34

Others 472.17 446.87 721.86 1 130.23 1 204.39

Divine Textiles Limited 18

Table 7. Export trends for knitwear

(Unit: US$ million)

Year 2005/06 2004/05 2003/2004 2002/03 2001/02

T-shirts 1 781.15 1 349.71 1 062.11 642.62 546.28

Table 8. Knitwear exports by destination

Year 2004/05 2003/04 2004/05 2003/04

Divine Textiles Limited 19

Divine Textiles Limited 20

Divine Textiles Limited 21

Divine Textiles Limited 22

Divine Textiles Limited 23

Table 13. Projected demand for fabrics for domestic

2007/08 2 252 3 720 1 900 5 620 7 872

2008/09 2 360 4 200 1 960 6 160 8 520

Divine Textiles Limited 24

Divine Textiles Limited 25

Divine Textiles Limited 26

Divine Textiles Limited 27

Divine Textiles Limited 28

 Attain highest standards of quality in its all business activities.

 Sustained growth in real terms.

 Have professionally trained high quality motivated workforce, working as a