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Background

In recent times, the trend of Going Green has become more and more prevalent worldwide,

particularly among developed nations and markets. Even many developing countries are joining

in the movement and taking steps to reduce damage to the environment. Corporations and

organizations around the world are gradually opting for more environmentally friendly

approach to conduct their operations. With heightened awareness regarding climate change

and global warming, use of biodegradable and environment friendly goods have become

popular.i

Jute is such a fibre which can be used to make a wide range of environment friendly products.

Bangladesh was once famous globally as the land of the Golden Fiber (Jute). But eventually it

gave way to rising popularity of alternative synthetic fibers. Many jute mills in Bangladesh

including Adamjee Jute mills- the largest in the world shut down. But in the last few years,

demand for jute and jute products has been revived due to above mentioned reasons and juteproduction has risen. According to experts, potential domestic market for jute-diversified

products is more than 300 percent of the current domestic market. Global demand for jute

bags only is currently 500 billion pieces.ii

Export earnings from jute have increased by 49%.

Moreover, it is expected that the demand of jute products will increase in the domestic markets

in the near future due to introduction of the mandatory jute packaging act-2010.

In 2010, Bangladesh produced approximately 5 million bales of jute. About 30 million people

are directly or indirectly dependent on the jute sector as 3.5 million farmers are engaged in

growing jute, 0.2 million people are working in jute factories, 0.1 million are engaged in jute

trade, and a large number of people provide other related services.iii Therefore, by diversifying

products and markets Bangladesh can gain a competitive advantage as manufacturer of jute

diversified products.

Our company will manufacture and market jute diversified products. There are currently few

small and medium enterprises in Bangladesh which manufacture and supply JDPs but they face

several managerial and technical problems and lack proper marketing know-how which has left

much of the market unexplored. Moreover more farmers also lack modern knowledge

regarding production of jute.

Business Idea and Business Model

Our company will follow the cluster approach of buying the raw material from growers.

Moreover it will provide them with technical knowhow to ensure more efficient production of

quality raw material. Then it will process and convert the raw material as required and produce

various jute diversified products. Subsequently, finished goods would be sold primarily to local

retailers and corporations. Also the company will look into exporting the goods abroad.

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Production Process

Our company will follow the latest technology to make 100% bio degradable and high quality

jute diversified products. The production process is given below:

Product lines and Product features

The company will primarily produce bags, rugs, wall coverings and handicrafts. The company

will simultaneously explore possibilities of producing and marketing other jute goods by

assessing market needs and opportunities. All the products will be eco labeled to appeal to

consumers who are increasingly becoming aware regarding importance of living green.

Value Proposition

Our company will product completely environment friendly, high quality jute diversified

products and market them across the nation to boost up the jute sector of the country.

Vision

Our product will be provide a solution to the environmental problem by manufacturing

environmental friendly products and resuscitate the jute industry in Bangladesh.

Possible threats

However, there are some problems which have been identified as obstacles to growth of the

sector such as poor implementation of the mandatory packaging law, unavailability of quality

raw material, and delivery of jute fabrics and cotton. Our aim will be to fight these threats by

taking advantage of latest technology and implementing better production, marketing and

distribution strategies to minimize the threats.

i Jute will regain its lost glory: analysts, Star Business Report, Daily Star, March 25, 2011

ii Jute bag prospects in global arena Star Business Report, Daily Star, August 19, 2011

iiiFinancial Express; April 21, 2010

GrowersRaw Material

Collection

Raw MaterialProcessed in

factory

Production of

JDP