Apparel Online Bangladesh Magazine Magazine March 2018 | Page 45

RESOURCE CENTRE
have changed that now. Samples are
a reflection of our professionalism
and the effort is to get an approval
on the first go and not waste time
sending the samples back and forth,”
avers Rouf.
Further, the training and level of
manpower has been enhanced in
the quality and production floor to
ensure that wastages are minimum
and delivery schedules are met
as per target. “A lot of issues are
mindset issues. Being from a B2C
background, for me service is supreme
and everyone in the organization
should work towards the same
goal…complete satisfaction of the
customer,” reasons Rouf. A policy
of ‘zero tolerance’ on quality and
deadlines has been put in place and all
compliance-related norms are being
followed to the target. Every effort is
in the direction of excellence and a
special multi-skilled reserve bench
has been created so that during peak
times, there is no shortage of workers
and production can run smoothly.
The biggest challenge, according
to Rouf, are the shrinking prices,
which are reflected in the dwindling
margins. “Even though cost of
production has increased manifold,
prices that the buyers are willing to
pay have fallen considerably. Also,
there is no compromise on quality
and compliance. In this scenario, the
challenge is to maintain the price
without eroding quality,” argues Rouf.
Big buyers started a SMART price
war among rivals by giving target
initially; collected lowest quotation
from all which is eventually bringing
forth another falling situation for
relatively small rivals. As aptly
stated by Rouf, “This kind of SMART
competition will darken the sector
and buyers will face challenges to
get quality deliveries down the road.”
He further adds that the buyers are
still looking at China for bulk orders
and are preferring to source the
challenging items in lesser quantities
from Bangladesh, which again is a
major issue on the viability of the
business. “To stay profitable, it is
important to balance between the
basic high-volume products and the
challenging products,” says Rouf.
Coats names
Anne Fahy as
Non-Executive
Director
A policy of zero
tolerance on
quality and
deadlines has been
put in place and
all compliance-
related norms are
being followed
to the target.
Every effort is in
the direction of
excellence and
a special multi-
skilled reserve
bench has been
created so that
during peak
times, there is
no shortage of
workers and
production can
run smoothly.
British multinational company and the leading thread producer
Coats has roped in Anne Fahy as Non-Executive Director.
The thread manufacturer has appointed Anne to manage its
global businesses, developing markets and internal control.
She will also be a part of Audit & Risk Committee of the company
where Anne’s job will be to support the Board in the effective
release of its duties in the areas of statutory reporting, internal
control systems, risk management systems, legal proceedings,
and internal and external audit operations.
A former BP PLC Executive, Anne is expected to begin her
association with Coats from March 1, 2018, onwards. During her
25-year-long tenure at BP, she held various roles such as that of
CFO of Aviation Fuels Business of the company. She also served
as Non-Executive at Interserve, an international construction
and support services provider.
Acknowledging the fact that buyers
realise Bangladesh’s proactiveness,
suppliers are taking responsibility
of their products to the last
minute. Rouf admits that change is
happening. “We are aligning with the
buyer programmes and working with
the garment factories to spread out
our deliveries so that their production
can run smoothly. We are also
following the products right till the
shipment to ensure that no rejections
happen at any level. No Chinese
factory takes this much responsibility
and buyers are now understanding
this,” avers Rouf.
Moving forward, Dekko is looking to
add new product categories based
on market demand and to work even
closer with its garmenting partners
for best res ults. “It helps that our
sister concerns are garment units,
as we have first-hand understanding
of the complexity of the business,
but beyond that, it is our efforts
which can create the winning edge,”
concludes Rouf thoughtfully.
Anne holds a Bachelor degree in Economics, Accounting and
Business from University College Galway (Ireland). She started
her career at KPMG Ireland and later moved to KPMG Australia.
Coats also informed that Non-Executive Director Ruth Anderson
will not stand for re-election as a Director at the 2018 Annual
General Meeting, to be held on May 16.
Late last year, Coats Group plc had announced the acquisition
of Patrick Yarn Mill, an American company known for
manufacturing high-performance engineered yarns.
The company paid US $ 21 million as part of the acquisition deal
and will further pay around US $ 4 million in next three years.
“This move would allow Coats to expand its existing
Performance Materials’ portfolio as well as to extend its
innovation capability,” said Rajiv Sharma, Group Chief
Executive of Coats adding that the acquisition of Patrick Yarn
Mill provides a stimulating opportunity for the company to grow.
Patrick Yarn Mill, which noted annual sales of US $ 36.5 million
in the year 2016, would also get an opportunity to expand its
presence in the high-growth markets by leveraging Coats’
unparalleled geographic footprint. Cut-resistant yarns from
recycled fibres and flame retardant yarns are also manufactured
by the mill. Its recycled fibres are marketed under the
earthspun trademark.
“The acquisition will be beneficial for both the companies as
there is a lot of synergy between our product offerings and
technology,” maintained Gilbert Patrick, President of Patrick
Yarn Mill in a statement issued by the company.
The thread manufacturer previously completed the successful
purchase of Gotex (a Spanish designer and manufacturer of
high-performance fibres, yarns and tapes) and FRS (a British
software solutions provider for the apparel and footwear sector).
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