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Factory Visit Report
Prepared by Sk.Tawhidur Rahman
Dec 15th,2012
1.General Information
Visit to MBA Fashions LTD. Biswas Group,Raj-Fulbaria,Savar,Dhaka. Savar is an Industrial Area which is 35 Kms from Dhaka city centre, 25 Kms fromHazrat Shahjalal International Airport & 304 Kms from Chittagong Sea Port.
Details:
1. Factory Name : MBA Fashions LTD. Biswas Group Address : Raj-Fulbaria, Savar,Dhaka Contact : Mr. Moinuddin Biswas(Chairman) Tel : 88-02-8610685,8611796,9661829 E-mail : [email protected]
2. Visit Time & Date : 3:00PM-4:30PM Dec 15th,2012
2. Factory Specifications
Factory Site The Factory is located by the side of the 4-lane Savar-Ashulia Highway Road. It’s been into productions since 2002. The Factory is divided into 2-portions i) Teen Shed Hall.
ii) Main 4-storey Building.
Size of the Land The total area of the land on which the factory is built is about 1.25 acres.
Fig: 4lane Savar-Ashulia Highway Road Fig: MBA Fashions Ltd Factory Biswas Group
2.1 Factory Snaps
2.2 Factory Snaps
Fig: Entrance to the MBA Fashions LTD Biswas Group Factory
2.3 Factory Specifications
Size of the Building/Premises
The Factory has 2 portions- i) Teen Shed Hall.
ii) The Main 4-storey Building.
The total measurement of the Teen Shed Hall is calculated as approximately 17,500 sq.ft.
Total measurement of the main Building is 17,500 sq.ft (Floors).
Though the Building is 4-storey,it is possible to raise/build it up to 6 th floor since the foundation work is done up to the 6th floor.
2.4 Factory Snaps
Fig: Entrance of the Teen Shed Hall
2.5 Factory Snaps
Fig: Inside area of the Teen Shed Hall
2.6 Factory Snaps
Fig: Entrance to the Main Building (Ground Floor)
2.7 Factory Snaps
Fig: Accessories Area (Ground Floor)
Snaps of 2nd floor
Snaps of 2nd floor
Fig: Circular Knitting machine
3. Water, Electricity & Gas System
Water Facility
Water facility is provided by the Deep Tube-well which has a depth of 450down and is delivered by 2inch wide pipe.
It is capable of delivering approximately 550 Liters/Hour.
Electricity Facility
They have their own Electricity generation & transmission plant which can supply up to 440Volt or enough power to run the factory.
It is a REB 1MW 3-phase 440 volt connection provided by Biswas Group and not by DESCO!
3.1 Water, Electricity & Gas System
Gas Facility
No Gas line facility provided.
*They are using their personal line for the gas system which will not be valid during the Sale of the factory.
3.2 Back-Up Power System
Load Shedding/Power Cut
Usually 3-4hrs of Load shedding is observed everyday, which is backed up by a Diesel running 400KVA Generator.
( * The Generator is their private property & is not for sale.)
The Generator requires 43Liters of Diesel per Hour to run in full load. Each day costing for running the Generator during power cut:
43x4x61= BDT 10,492/Day ( Approx. $127.95 US Dollars Per Day)
(calculated as Daily 4Hr load shedding and Diesel Price 61 Tk/Litre)
4. The Workers (Labors)
No. of Labors Total No. of labors working at the time of visit were about 240-250. As per the Manager maximum 700-800 workers can work at a time in the factory.
Working Time Working Hours : 8AM-5PM Over-Time : 2 Hrs/Day (Maximum)
NB: These information were recorded as stated by the Manager & the Production Manager.
However different story was heard after talking to some labors in the factory.
4.1 The Workers (Labors) Different Story
As stated by few labors communicated with : There are 2 Shifts available to work i) Day Shift ii) Night Shift Day Shift : 8AM-5PM (Regular Workers) Night Shift : 8PM-5AM (Selected Workers) Over-Time is not limited to 2Hrs/Day. Some labors even work in both shifts to earn some extra cash and often end up
falling sick.
4.2 Workers Snap
Fig: Working Labors at the Factory
4.3 The Workers (Labors)
Salary Range
It ranges between fixed BDT 3000 to BDT 4700 for workers & helpers depending on their skills, experience and quality of work.
Medical allowance & House rent incentives are inclusive here. They are paid on monthly basis along with the Over-time charges. These workers mainly get 2 Festival Bonuses every year. Usually the Bonuses are Half of their Regular Salaries.
4.4 The Workers (Labors)
NB : About 10 workers( Female workers) were approached to give their views on working on a term, payment on each piece she is responsible for making.
Like if she manages to make 60 pieces of an item per day, she will be paid (60x2.5=) BDT 150/Day
Which means in a month consisting of 26 working days she will be paid (150x26=) BDT 3900 monthly.
If she manages to make more pieces than she will be earning more.
It was observed that 7 out of the 10 workers were happy with this term rather than working on a fixed salary.
They suggested that if they are provided with some sort of training for making the particular items or products, than they will be more than happy working under such circumstances.
5. Questions to the Owner?
The Question-Answer session with the Owner (Mr.Moinuddin Biswas) :
Is the Factory for Sale with Machineries or without? Its only the Factory and not the Machineries. Any Sale terms & conditions? The Factory is available for Partial & Full sale, i.e. a particular floor or floors can
be bought or even the complete factory, and it’s a urgent sale. Reason For Selling the Factory? The reason behind selling the property is purely because of the financial problem
& liquidity crisis. Any Loan from Bank? Yes, it is mortgaged to a Private Bank named Southeast Bank.
5.1 Questions to the Owner? Paper work & Legal issues? All the paper works are done and there are no pending issues. It is a clean & spotless
property.
The Small area in front of the Factory is a Government property, are the charges for using that property cleared?
No, it’s a very small charge like BDT 5000 per year, it can be cleared any time if wished.
Finally, What is the Asking Price of the Property?
Teen Shed Hall+Land : BDT 13 crores ( Approx. $1,585,365 US Dollars) The Building+Land : BDT 22 crores ( Approx. $2,682,926 US Dollars)--------------------------------------------------------------------------------------------------------------------- Total : BDT 35 crores ( Approx. $4,268,292 US Dollars)
6. Contact Details
Moinuddin Biswas (CIP)
Chairman
Head Office : (J.S Bhaban)
299/2-A,Sonargaon Road,Dhanmondi,Dhaka-1205
Tel : 88-02-8610685,8611796,9661829
Fax : 88-02-8613367
e-mail ; [email protected]
web : www.biswasgroup.com
7. Positive Notes
Roadside factory with good Material/Product carrying vehicle parking facility.
Not too far from the International Airport if not met with much Traffic! Completely running condition. Though it is an industrial area, but it is quite easy to find workers there
as said by the Manager.
8. Negative Notes Electricity is supplied from Biswas Group’s own small power plant, but
they are not disclosing the fact that do they have proper permissions from DESCO.
**Usually Big shot high linked Business Tycoons here do not care much about the authority and their terms conditions, since they have high contacts they have their own way of going against the general rules &
policies made by the Government. So this might create a problem if this particular issue is not cleared.
The price of the property is too costly to Buy at this price. No Gas line System. An inclusion of a Gas line system would have
reduced the cost of Diesel Running Generator almost by half, since it is much cheaper to run a gas running generator than a diesel running one.
9. My Suggestions & Conclusion Some Suggestionso Though the price is too high I still feel that it is just the asking price & there is a
good chance for negotiation but before that the current market price of the land & property need to be find out & verified by the lawyers since it is a good property to invest in but the price need to be reasonable.
o It is Mortgaged to one of the reputed Private Banks in the country
(Southeast Bank) & this bank has a reputation of providing Mortgage loans only to the properties that are genuine & authentic. So there is no reason to worry about the legality of the property.
o The option for partial Sale of the factory is quite interesting to think about.o For Example The Teen Shed Hall is a 17500 sq.ft. area which can be divided into
sub parts to utilize as various purposes since it’s a big area to work.o Last but not the least the price of the property is what matters the most but may be
there could be good chance for profitable negotiation,..
9. My Suggestion & Conclusiono The point made by Mr.Moinuddin Biswas for selling the property was his
financial problem, I want you to visit the following link to find out what is the exact issue behind this urgent property Sale.
http://www.daily-sun.com/details_yes_10-09-2012_Biswas-Group-chief-held-for-cheque-%E2%80%98forgery%E2%80%99_257_1_1_1_4.html
o In short it is a good property to invest in but of course most importantly the price needs to be reasonable and few issues should be handled with proper care as mentioned earlier.
Prepared By Prepared By Sk.Tawhidur RahmanSk.Tawhidur Rahman
Contact : +880174-22555-91Contact : +880174-22555-91
E-mail : [email protected] E-mail : [email protected]
Thank You!Thank You! To To The Ace Group Inc. The Ace Group Inc.
Its been a wonderful Experience Its been a wonderful Experience working for You! working for You!
