For smoothing exporting goods to abroad needed smooth supply of raw materials and other related goods. Smooth supply of all goods based on importing goods from abroad, which are required and local supply of goods, which are used in making exporting goods. Since Bari poly world ltd is 100% export oriented organization that’s why Bari poly world ltd needs to import goods from abroad so many things like rubber, machinery, chemicals etc. And this organization not only imports goods from abroad but also exports goods abroad. Export and import are interrelated activity in this company. So, to continuous export and import it is essential to analysis all the activities of export and import related. For this reason this analysis is done.
Figure-1: sample of product
Objectives of the Company:
v Consistently improve product and provide unsurprised service to clients;
v Provide motivating work where diversity is valued;
v Conduct business in a socially manner;
v Improve ethical and business standard of corporate governs;
- Strong fundamentals
- Concentration to core business
- Product diversification
- Superior client service
- Market position
- More competitive
Core values of this Company:
Honesty and integrity-Action that instills trust in others
Customer focus-Providing superior service
Accountability- Working in responsible manner
Transparency-Providing accurate and Product
Creativity-Providing innovative ideas and customized services
Commitments of this Company:
The purpose of the report is to examine the current Import & export analysis of the Bari poly world. This is the requirement of the course curriculum of the subject Intern Ship Program.
I tried to focus on the overall day-to-day business affairs of the company. I could not cover the details due to time constrains.
I tried to present my report on the basis of export import.
As a primary source of information I have discussed with the concern employees of the company to get the necessary information.
My secondary source of information was corporate induction program manuals/ videos, Annual reports, bulletin & the employees’ yearly magazine.
Figure-2: Sample of Product
In 1992 this company entered with its manufacturing facilities of combining modern technology with skilled manpower under Bari poly world unique inspiring, atmosphere, and this new company venture soon rose to the top of the local poly industry. Today it has one of the most sophisticated vertically integrated set-ups.
Bari poly world first ventured into the poly bags sector with the establishment of the first unit of the Bari Ltd. in 1992, year later the establishment of the second unit followed.
- Year of establishment : 1992
(In corporate as a private ltd company)
- Year of operation : 1992
- Business Lines : Manufacturing &
Marketing of Poly bag
- Authorized capital : Tk. 1000 Million
- Paid up Capital : 251.90 Million
- Number of employee :750
Eastern view (13th floor)
50, DIT Extension road
I-8/9, RUPNAGAR INDS.
Export Oriented Poly bag Industry
Our conception of the business germinates from our vision which sees it is as a means to the well being of the Owners, employees and members of the society at large by creating new wealth in the form of goods and service that go to satisfy the wants of all of them without disturbing or damaging the socio-economic balance of the mother earth and that process of human civilization leading to peaceful co-existence of all the living beings.
Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the owner.
Figure-5: Inside of the office
- Sister concern of Bari group with high technical support.
- High amount investment in machine and factory.
- No workers unrest because of location facility.
- Own dormitory for staff and workers.
- Sophisticated high-tech machinery’s used for production and Quality control.
- Cost of yarn is high for high quality.
- Raw material is not available in local market.
- Unstable price of raw material in the international market.
- Huge scope for export.
- Operational efficiency.
- Provision for capacity expansion.
- Invasion of Indian yarn through black market.
- Unstable political condition.
- Unstable economic situation of our country.
Unit 1: 36,288 Rolls with daily production capacity of 30,000 kgs.
Unit 2: 23,184 Rolls with daily production capacity of 14,000 kgs.
Unit 1: HDPE SHOPPING BAGS
Unit 2: BUTCHER BAGS
Unit 3: HDPE & LLDPE MIXED GARBAGE BAGS
Polyethylene, renamed poly (ethane), is a thermoplastic commodity heavily used in consumer products (over 60 million tons are produced worldwide every year). Its name originates from the monomer ethene, previously named ethylene, used to create the polymer.
Polyethylene is created through polymerization of ethene. It can be produced through radical polymerization, anionic addition polymerization, ion coordination polymerization or cationic addition polymerization. This is because ethene does not have any substitute groups which influence the stability of the propagation head of the polymer. Each of these methods results in a different type of polyethylene.
Polyethylene was first synthesized by the German chemist Hans von Pechmann, who prepared it by accident in 1898 while heating diazomethane. When his colleagues Eugen Bamberger and Friedrich Tschirner characterized the white, waxy substance he had created, they recognized that it contained long -CH2- chains and termed it polymethylene. The first industrially practical polyethylene synthesis was discovered (again by accident) by Eric Fawcett and Reginald Gibson at ICI Chemicals in 1933. Upon applying extremely high pressure (several hundred atmospheres) to a mixture of ethylene and benzaldehyde, they again produced a white waxy material. Since the reaction had been initiated by trace oxygen contamination in their apparatus, the experiment was at first difficult to reproduce. It was not until 1935 that another ICI chemist, Michael Perrin, developed this accident into a reproducible high-pressure synthesis for polyethylene that became the basis for industrial LDPE production beginning in 1939.
Subsequent landmarks in polyethylene synthesis have centered on the development of several types of catalyst that promote ethylene polymerization at more mild temperatures and pressures. The first of these was a chromium trioxide based catalyst discovered in 1951 by Robert Banks and John Hogan at Phillips Petroleum. In 1953, the German chemist Karl Ziegler developed a catalytic system based on titanium halides and organoaluminum compounds that worked at even milder conditions than the Phillips catalyst. The Phillips catalyst is less expensive and easier to work with, however, and both methods are used in industrial practice. By the end of the 1950s both the Phillips and Ziegler type catalysts were being used for HDPE production. Phillips’ initially had difficulties producing a HDPE product of uniform quality, and filled warehouses with off-specification plastic. However, financial ruin was unexpectedly averted in 1957, when the hula hoop, a toy consisting of a circular polyethylene tube, became a fad among teenagers throughout the United States. A third type of catalytic system, one based on metallocenes, was discovered in 1976 in Germany by Walter Kaminsky and Hansjörg Sinn. The Ziegler and metallocene catalyst families have since proven to be very flexible at copolymerizing ethylene with other olefins and have become the basis for the wide range of polyethylene resins available today, including VLDPE, and LLDPE. Such resins, in the form of fibers like Dyneema, have (as of 2005) begun to replace aramids in many high-strength applications.
Until recently, the metallocenes were the most active single-site catalysts for ethylene polymerisation known – new catalysts are typically compared to zirconocene dichloride. Much effort is currently being exerted on developing new single-site (so-called post-metallocene) catalysts, which may allow greater tuning of the polymer structure than is possible with metallocenes. Recently, work by Fujita at the Mitsui Corporation (amongst others) has demonstrated that certain salicylaldimine complexes of Group 4 metals show substantially higher activity than the metallocenes.
What is Polymer?
The term “polymer” is derived from the Greek “poly”, meaning “many”, and “mer”, meaning “parts” — thus polymers are substances made of “many parts”. In most cases the parts are small molecules, which react together hundreds, or thousands, or millions of times. A molecule used in producing a polymer is a “monomer” — mono is Greek for single, thus a monomer is a “single part”. A polymer made entirely from molecules of one monomer is referred to as a “homopolymer”. Chains that contain two or more different repeating monomers are “copolymers”.
Polymerization is the process of joining together a large number of small molecules to make a smaller number of very large molecules. The reactants (i.e. the small molecules from which the polymer is constructed) are called Monomers and products of the polymerization process are called Polymers. There are significant differences between the chemical and physical properties of polymers and those of the monomers from which they are made. This polymerization process can occur by two different mechanisms: by addition polymerization and condensation polymerization
Addition polymerization is the joining together of two or more simple molecules, called Monomers, to form a new compound of the same empirical formula, called a polymer, which has a very high molecular weight. The addition polymerization process can only occur when the monomer molecule is unsaturated (i.e. contain double bonds or triple bonds). Thus, addition polymerization is characteristic of ethene and the other ethane. The polymers formed by addition polymerization are thermoplastic. These include Polypropylene and Polystyrene.
This may be defined as the process in which the monomer molecules of different compounds combine with the loss of some simple molecules, like water or HCl. Polyesters and nylon are formed by this process.
Isotactic is a term used to describe physical properties of polymer.In this phenomenon chains are defined as having substituent groups aligned in one direction. This enables them to line up close to each other, creating crystalline areas and resulting in highly rigid polymers.
Finally Isotactic polymers refer to those polymers formed by branched monomers that have the characteristic of having all the branch groups on the same side of the polymeric chain. The monomers are all oriented in the same way. If we represent a monomer by AB then an isotactic polymer is AB-AB-AB-AB-AB-etc.
Not clear, not transmitting or reflecting light or radiant energy. No light passes through specimen. Some thick specimens, which appear to be opaque, may be seen to be translucent (when light passes through the specimen, but objects cannot be seen through it
) Or even transparent on thin edges when held in front of bright light.
Semicrystalline polymers constitute the largest group of commercially useful polymers. This polymer exists as viscous liquids at temperatures above the melting point of the crystals. Upon cooling, crystals nucleate and grow to fill the available volume. The reason these materials are called “Semicrystalline” is that some fraction of the polymer remains un-crystallized or, amorphous when the polymer is cooled to room temperature. The amorphous polymer becomes trapped between the growing crystals. As a result of the highly entangled nature of the polymer chains, the movement of the amorphous polymer becomes restricted.
(Source: Schoolscience.co.uk 2006)
What is Polypropylene?
Polypropylene is a raw material used in manufacturing polypropylene Poly bag, woven sacks for packaging cement, fertilizers, poultry feeds, wheat, rice, sugar and pulses, etc. Polypropylene granules that are a by-product of petroleum, is the main constituent needed to manufacture polypropylene woven sack. Other elements used to manufacture this sack are calcium carbonate and color granules. Polypropylene is basically semi-crystalline, white and semi-opaque element, which is usually predominantly, is tactic. Polypropylene has well chemical but poor UV resistance. As it has been said earlier polypropylene is a product of Petroleum, created hundreds of millions of years ago when organic matter such as plankton was compressed and trapped in huge carbon reservoirs as petroleum. Petroleum, a naturally occurring mixture that is obtained from wells (crude oil), is a complex mixture of hydrocarbons. Hydrocarbons are crude oil’s fundamental base consisting of about 85-90% carbon and 9-15% hydrogen. In addition, a various amount of oxygen and sulfur, and minute amounts of nitrogen, metals and other elements are also included in its composition. Carbon, present in the crude oil is characteristically organic. Organic carbon is different from carbon metal in that its origin is primarily organic plant tissues like any organic material in our environment, it is the primary food source for the tens of thousands of different microorganisms (bacteria and fungi) that survive and thrive in our air, soil and water. Like paper that is made from another organic material – cellulose, polypropylene is made from the hydrogen and the “organic” carbon in petroleum, and like paper, polypropylene can also be made biodegradable. (Source: Schoolscience.co.uk 2006)
Bari poly world is a 100% export oriented poly bag manufacturing company. They mainly produce poly bag and export it to various kinds of manufacturing company through Back to back L/C, master L/C after certain process. But in the commercial term these kinds of exporter are called deem exporter. As main job of Bari world ltd is to manufacturing and exporting of poly bag so they need some raw materials and axillaries to manufacturing this product. Main raw materials of Bari poly world Ltd are various types of raw plastic and rubber. This is a vertical integrated company. So they have forward and backward linkage facility i.e. they have fabrics manufacturing company and they have other manufacturing company. Bari group get 100% L/C from their own poly Industry sector. Bari poly world Ltd mainly procures their raw material by 100% cash L/C.
As the main raw martial of Bari poly world Ltd is Polypropylene granules. So they procure their raw material from
- Local import
- Foreign Import
As Bari poly world Ltd. is a largest finest manufacturing company of Bangladesh so they need various type of raw material but we cannot produce high quality of raw material in our country so the firm 100% depended on import so Local import is nil.
As we know that to produce high quality of Poly bag need high quality of raw materials. High quality of raw means which polymer exists length is long and polymer is matured. To produce high quality of product mainly needs favorable weather condition but we have not. So ultimately the firm fully depends on imported raw polymer and rubber for our mills. Bari poly world Ltd mainly procure central European’s raw material as per their buyers satisfaction. Though the price of central European’s raw material are higher than the others. Bari poly world ltd also procure raw polymer from Zimbabwe, Syria, USA, India, West African, Indonesia, and Thailand etc through cash L/C.
COMPARISON TO OTHERS COMPANY WITH IMPORT POLICY
Bari poly world Ltd think, though customers like central European’s raw material at higher price and most of the poly bag mills go for central European’s polymer as per their customers satisfactions. But this trend is not continuing for long period. Because may central European’s companies think they will produce Bag in their own country or others company like Bari think they established a plant in central European’s country. Then central European’s cotton are not available then what will do the others company. Bari poly world Ltd always thinks different. For this reason to face this problem they use 60% to 50% CIS polymer and 40% to 50% others polymer which quality is same like CIS polymer to overcome future any problem. Bari poly world do not follow others so allover the year they procure raw material for two or three month advance. So that over the year they can maintain average price and they do not loss hues and they do not gain hues. But on the other hand others company they forward book all over the year so if the polymer price is higher then they gain hues and polymer price is down they losses hues.
LAST THREE YEARS IMPORT POSITION
Direct export of Bari poly world Ltd is good and fame able. They import 100% raw polymer from abroad so their price is somewhat higher than the others country but with good quality. As an exporter Bari poly world Ltd export their some portion of poly bag to their own sister concern .They export to the others industry through back to back L/C as local exporter also. Bari poly world Ltd mainly export their product to European country and to their another sister concern. Bari poly world Ltd which is a world class poly bag manufacturing company and others poly bag industry export their product to Europe country as commission basis. Bari poly world ltd have strong marketing tem they visit all over the world to market their product to world class buyer As Bari is a exporter so the export their product to other country. This company exports their poly bag in some countries of Europe and some local export also, so in this scène Bari poly world Ltd is 100 % export oriented poly bag manufacturing company. Bari poly world Ltd also sale a little portion of poly bag in locally which is produce by wastage polymer. These types of poly bag are “B” Grade and it is not meet the export quality.
COMPARISON TO OTHERS COMPANY WITH EXPORT POLICY
Bari poly world ltd is always different from the others companies policy. So this company follows some technique to increase their export. Like in production they use heterogeneous system to create a big lot. Bari poly world ltd always try to produce same quality of poly bag allover the year for this reason buyers always prefer Bari’s poly bag but others company follow general system Where they use Same polymer and don’t mix in polymer So that other polymer lot is always small. Bari poly world Ltd follows another technique I.e. they always try to meet customer’s shipment on due date but on the other hand others company always cannot do that. So this companies sales always in creasing.
LACKING OF POLICY
Bari poly world Ltd always use Heterogeneous system For example They use mix polymer to produce bag, so their production cost is high and others company use general system so their production cost always less. If in the market create a rumor that Bari poly world ltd do not use mix polymer but their product rate is higher than the others it is bad for them and they can loose their big market.
HOW CAN OVERCOME THIS LACKING
Bari poly world ltd can avoid Heterogeneous system and they can increase their dependency on general system
They can reduce their poly bag price and convince customers that though Bari use heterogeneous system but their result is better than other company and with good quality.
They can also convince their customers to reduce dependency on CIS polymer to absorb any shock in future.
BARI POLY WORLD LTD.
As at 31 December 2006.
AMOUNT IN TK.
Fixed Assets 121,73,31,766 132,66,42,613
Stocks 32,90,15,503 25,05,79,314
Trade Debtors 84,00,66,283 74,68,96,100
Adv. Deposits & Payments 4,66,13,570 4,88,12,438
Cash & Bank Balances 6,83,69,954 91,24,736
Short Term Loan 113,01,54,432 99,75,36,568
Long Term Loan-Current Portion ————- 11,28,97,588
Sundry Creditors 7,08,81,052 5,84,02,645
Liabilities For other Finance 4,73,56,925 3,95.84.188
Provision for Income Tax 1,91,10,742 57,51,014
Share Holders Equity:
Share Capital 25,19,00,000 25,19,00,000
Tax Holiday Reserve 33,96,71,397 29,69,28,100
General Reserve & Surplus 6 4,23,22,528 59,77,80,098
BARI POLY WORLD LTD.
For the year ended 31 December 2006.
AMOUNT IN TK.
Sales 210,26,70,263 178,90,18,386
Less: Cost Of Goods Sold 173,70,55,759 150,02,81,590
Gross Profit: 36,56,14,504 28,87,36,796
Less: Operating and
financial expenses 17,55,24,220 19,78,35,510
Operating Income 19,00,90,284 9,09,01,286
Other Income 2,25,844 6,63,215
Net Profit Before WPPF 19,03,16,128 9,15,64,501
Allocation For WPPF & WF 90,62,673 43,60,214
Net Profit Before Tax 18,12,53,455 8,72,04,287
Less: Provision for
Income Tax 1,33,59,728 57,51,014
Net Profit For the Year 16,78,93,727 8,14,53,273
BARI POLY WORLD LTD.
Cash Flow Statement
For the year ended 31 December 2006.
AMOUNT IN TK.
Cash Flow from
Collection From Sales 200,95,00,080 186,13,50,517
Others 2,25,844 6,63,215
Purchase of Raw and
Packing Materials (139,80,91,956) (104,62,25,984)
Operating Expenses (33,94,18,521) (32,32,02,946)
Interests (11,44,33,862) (14,26,12,064)
Workers Profit Participation Fund (42,62,961) (81,73,177)
Net Cash Provided by
Operating Activities 15,35,18,624 34,17,99,561
Cash Flow from
Purchase of Fixed Asset (1,78,17,640) (1,95,36,204)
Less: Disposal of Fixed Asset 57,06,958 40,00,000
Net Cash Used in
Investing Activities 1,21,10,682 1,55,36,204
Cash Flow from Financing Activities:
Long and Medium
Term Loan-Repaid 13,41,72,588 17,52,92,648
Dividend Paid 8,06,08,000 7,40,59,553
Short Term Loan-Received (13,26,17,864) (8,04,32,598)
Net Cash Used in
Financing Activities 8,21,62,724 32,97,84,799
Increase/ (Decrease) in
Cash Bank Balance 5,92,45,218 35,21,442
Cash and Bank Balance
At Opening 91,24,736 1,26,46,178
Cash and Bank Balance
At Closing 6,83,69,954 91,24,736
NAME OF STRATEGY
Bari poly world ltd follows the following organizational strategy for his organization:
1) Business diversification strategy
2) Best cost strategy
3) Niche marketing strategy
1) In present they are diversified business giant in Bangladesh.
2) They always provide improved quality of product for their customers
With lower price and they never compromise with their quality.
3) On the part of their business diversification strategy the always tried to making their product for niche market Ex: Bari & pack plastic ltd.
REASON FOR SUCCESS/FAILURE
Most of the cases they are successful because they are committed to his customers and Bangladesh for their quality product. Bari believes in using advanced technology to cope with the changing world. Motivation & diversification is its major strength.
- Bari poly world mainly use mix polymer to produce poly bag but on the other hand others company use general.
- Price is higher than the others company
- Bari poly world do not forward booking to procure polymer but others company do that.
- They arrange get together for their big buyer at least one time a year.
- They invite their big buyer to visit their factory.
- If Bari poly world use general strategy like other company can reduce their poly bag price
- Bari poly world can follow the others company that is they can only use CIS polymer
- Bari poly world can convince their buyer to reduce dependency on CIS (Computer Intensive Screening) polymer to absorb any shock in future.
- They can arrange get together for their buyer at least one time a year where buyer can freely discuss their problem and they can give their advice to overcome this problem.
Bari poly world ltd is one of the largest companies in the poly bag sector of the country. It has a most modern and sophisticated equipment with a group of professional peoples who posses a high standard of technical know how. This company produces a high quality of poly bag of which 95% is exported to foreign countries and this has been possible as the company is very conscious in maintaining the high standard of quality. Presently the company’s progress is upwards. Finally we can say this company has set a milestone in the poly bag sector in the country.
Bari poly world ltd has reached to its present stable and profitable position due to its operational activities in the right way managed by a group of professional and technical experts. The company’s people are well motivated and working under a healthy congenial environment. Here all facilities are available for smooth operations of the company. On the other hand the company is contributing to the national economy by employing a lot of people and earning foreign currency for which we feel proud for having such a company in our country.