Classic Fiber Ltd.

A new positioning for growth and differentiation.

The Plant of CFL is located at Dewalia Bari, Konabari, Gazipur on about 90 decimal of land. Currently the factory building is occupying 18,000sft. The production facilities of the company have been found to be moderate. Most of the machineries of the company have been imported from Taiwan, Chaina and India along with some local Procurement.

In addition to the existing machineries, the company is going to add machineries and do construction works in its existing facilities.

The company has a plan to install core as well as supportive machineries such as 1 set tape line, 26 set circular loom, 1 set lamination machine, 3 set heat cutting, 4 set sewing machine and 2 sets printing machine. With using the above machineries, additional production capacity will be added by 5760 MT FIBC bags per year along with existing 60 million pcs bag.

Moreover, the company has planned to expand total of 100724 sft factory building. In factory premise the company has its own source of utilities like generator for electricity and deep tube well for water. The company has one gas generator of 900 KW. The company is connected with 15 PSI gas line, however currently is facing low gas pressure problem, which interrupted smooth production flow and resulted in reducing production as well as increasing wastage.

Products and Business Operation of Classic Fiber Ltd

The major raw material for producing white bag is P.P Yarn, Calcium carbonate, Lamination grade, LDPE, HDPE, Filler etc, CFL imports the raw materials from Saudi Arabia, Thailand, Qatar and India. The purchase payment is made through L/C and it takes 90 days on an average to bring the raw materials from abroad. In factory premises the company keeps the stock of raw materials as well as finished product at the production floor. The management of CFL is yet to form separate warehouse in the factory premises. The company usually keeps raw material in stock for 90 days depending on the number of orders. The company is involved in producing bag with a capacity of 1000 MT and produced total 739 MT by utilizing 73.93% efficiency in the FY2015-16. Most of the sales of the company comprise of bags. The major buyers in Bangladesh are Biswas Poultry & Fish Feeds Ltd. Advance Feed Ltd. Agrotech Feed Ltd. Solid Feed Ltd. Power Feed Ltd. Aman Feed Ltd etc.

At a Glance Products and Market Competitors

CFL produces fiber bag. The key customers of the bags are local. The major competitors of the company are Bashundhara Group, Meghna Group, Akij Group, Sino Bangla Industries Ltd. Dada Bag Industries Ltd. Seven Circle (BD) Ltd, Miracle Industries Limited, Shovon Group etc.

Industry Analysis

The demand for Bangladeshi woven polypropylene (WPP) bags has grown substantially in the recent years in the local market due to substantial growth in cement industry as well as fruits, chemical, sugar, food grains etc. India being the second largest producer of quality cement in the world is growing at the rate of 8.0 percent per annum owing to numerous plants of cement spred across the country from north to south and East to west. This is now a growing market for Bangladeshi woven polypropylene (WPP) bags as India lacks in adequate packaging material factories to meet up their growing demand.
Bangladesh has alteady started shipment of the products to the neighboring county from last November, 2011 which was around 450 tons of pp woven bags worth $ 0.9 million. The export volume of the plastic products will stand at 900 tons from next year and the increasing trend is expected to continue in the coming days. Bangladeshi Bengal plastic Industries Ltd. Madina Polymer Industries Limited and Akij Group export Plastic WPP bags to the South Asian Country.

 

Scope of Work