Sparrow Group of Industries
Joint Venture Partner of Ambattur Clothing Limited, India
Sparrow Group Overview
Sparrow Group
Bangladesh
Joint Venture with Ambattur Clothing Limited (ACL), India
Production Units
Sparrow Apparels
Crown Wears
Bottom 22 Lines, 4500 people
1700 Machines
4 Lines : Flexible for Tops and Pants
Production: 600,000 pcs/month
Total 30 Lines, 6200 People
2300 Machines, 850,000 pcs/month
Ladies Top (7 Lines): 200,000 pcs
Men's Shirt (16 Lines): 500,000 Pcs, Pants (6 Lines): 170,000 pcs
Sparrow revenue and Production
Facility
Units in Millions
(yearly)
Revenue in Millions
(Yearly)
Sparrow
6-7
50-55
Crown
10-11
75-80
Total
16-18
125-135
Sparrow: Brief
History
• Started commercial production in 1984
• Promoted by local Bangladeshi Entrepreneurs Late Professor Mazharul
Islam
• Address: Plot No-251, Chandona, Luxmipura, Gazipur, Bangladesh
• Phone: +88-02-9261233, +88-02-9261236, Fax: +88-02-9261229
• Sparrow and Ambattur Clothing went into Join Venture in Dec’07
• Land Area: 4.5 Acres
• Building Area: 300,000 Sq Ft
• Installed capacity today : 22 assembly lines
• Production Per Month: 500,000 to 600,000 pcs
– Men’s, Women’s and Kids Twill Pants, Chinos, shorts, dress pants, wrinkle free
pants, Linen Trousers, and Reactive Dyed Garments: 90% of production
– Shirts and Tops: 10% of production and have the flexibility to do both tops and
bottoms
Crown: Brief
History
•
•
•
•
•
•
•
•
Started commercial production in 2002
Promoted by local Bangladeshi Entrepreneurs Shovon Islam (Shawn)
Address: Jamirdia, Masterbari, Bhaluka, Mymensingh, Bangladesh
Phone: +88-01730012050 / +88-01771523165
Land Area: 3.5 Acres
Building Area: 400,000 Sq Ft
Installed capacity today : 30 assembly lines (2300 machines)
Production Per Month: 750,000 to 850,000 pcs
– Ladies tops and Blouses including Georgette and Silk: 7 Lines (200k units/ month)
– Sport and Casual Shirts: 16 lines (500K units/month)
• Out of the 16 Shirt lines, 6 lines have capabilities to produce Dress Shirts (automated)
– Pants all types – 6 lines (150k units/month)
Group Turnover
140
120
100
80
60
40
20
0
20
18
16
14
12
10
8
6
4
2
0
Pcs in Mil
US $ in Mil
Pcs. in Mil
Value in US $ in Mil.
Turnover 2007-2016 (Bangladesh)
Buyers: All leading Brands
Ann Taylor
American Eagle Outfitters
AllSAINTS
Banana Republic
Bass Pro
Gap
Kohls
Levis
Old Navy
Talbots
Zara
Zara Kids
Mango
Michael Kors
……
Washing Specialties
Sparrow have its own advanced Washing Units: Large and
advance units at Sparrow and a basic unit at Crown
Current Capabilities
•
•
•
•
•
•
•
•
•
•
WATER
ENZYME
BALL
SANDING (Hand and Laser)
PIGMENT
STONE
MANUAL / AUTOMATED DRY
PROCESS
TINTING
GARMENT OVERDYEING
GARMENT DYING (Reactive)
Quality Control
The objective is to exceed customer needs and expectations and plan for defect-free
Quality performance:
• Technological
- Accuracy of product
• Psychological
- Appearance, Finish
• Time Oriented
- Reliability
• Contractual
- Guarantees
• Score Card
- Consistently Exceeding Expectations
• Ethical
- Courtesy and Honesty of workers
By
• Structuring the QA department to Create the correct environment and to make
Quality a way of life
• Designing and practicing prevention measures
• Get all involved in practicing “Do it right first time, and every time”
• Adopting the best practices in manufacturing techniques and processes
• Investing on human capital
• To reduce the cost of re work and rejections
Pre Production
•The pre production departments centralized at
Chennai-India, caters to all the production
facilities at Bahrain; Dhaka; India and Jordan.
•This department has self sufficient divisions as
pattern, sampling (including cutting, sewing and
finishing), Quality assurance team and product
technician’s team. Also has the Centralized
Industrial engineering team associated with.
CSR = Business
Compliance (lead
by Example)
Invest in People:
Training,
Retention &,
Ownership
Sparrow
Value
System
Safety and
Work
Environment
Health
and
Nutrition
Salary
and
Profit
Sharing
Career &
Opportunity
• Result => 80% of the Workforce are with Sparrow for 5+ years
• No Interruption of work in the middle of all the Political and social issues
Guiding Principles
Influenced by ISO 26000
Accountability
Transparency
Ethical Behavior
Respect for Stakeholder Interests
Respect for the rule of law
Respect for International norms of behavior
Respect for human rights
Sparrow-ACL CSR Programs
• Lead in Fire Safety in Bangladesh
• Lead in Environmentally responsible green company
– Reach HIGG LEVEL 3 by 2015
•
•
•
•
•
Maximum workers satisfaction and minimum workers attrition
Empowering women and improve women health standards
First Participant of Alliance Helpline “Amader Kotha”
Training and constant communication with the employees
Elected Workers Participatory Committee
– Involved in decision making, constant Voice of the workforce surveys
• Incentive and reward system: productivity, rework and quality
• Maximum transparency and partnership with vendors
Well Rewarded Workers = Retention,
Quality & Productivity
Yearly Profit Sharing
 5% of the Yearly Net Profit
 Employee Ownership
Attendance
Bonus
(Tiered) - 5
to 10% per
month
Production
Target
Bonus 3%
1 Operation
2 Operation
SAMPLE TAILORS
5 to 10+ years
A + GRADE
4 to 5+ years
A GRADE
3+ years
B GRADE
1 to 2+ years
C GRADE
1 year or Less
New JOINEES
(Trainees)
Skill Set Of Workers
All Operations +
Patterns
3+ Operation
3 Operation
Worker Distribution in Production Lines
Worker's Skill
 Large number of highly
Skilled Labors
 Very low attrition rate
 High Productivity
 Low Defect and Rework
A+
A
B
C
Path to Safety
Prevention
Infrastructure
Fire doors, Sprinklers, dedicated reservoir, Fire
Hydrants
Evacuation
Flow of People via stairs, smoke free
evacuation path
Detection
Training &
Awareness
Lead in Fire Safety
• Started joint initiative with Gap Inc. on October 2012
– Full electrical system audit and Structural Audit by International
Consultants
– Be the first Garment industry in Bangladesh to install a centralized Fire
Detection and Monitoring System
– Install automatic Sprinkler System, and Fire doors
– Have dedicated Fire safety department with Fire Marshall and trained
fire fighting staff
– Have 300 trained staff with Fire Training certificate (In Each Unit)
• Trained all 5000 employees on basic fire safety (in each unit)
– Conduct Fire Drill every month in the presence of Fire Department
• Fully Complaint Sprinkler and Fire Hydrant Systems
– Completed the underground water reservoir, diesel operated high
pressure fire pump, High Pressure fire hydrant system around the
building and every floor
Electrical System Upgrades
Prevention: Stop Electrical Short Circuit to happen
• Completely Dust Free Electrical Circuit Box
• Fully load balanced Circuit
• Continuous monitoring and maintenance
Advance Fire Detection
Automatic Fire Detection Systems
Manual Fire Alerts
Centralized monitoring
Powerful Audio Visual Alerts
Training and awareness
Fire Training and safety
Practical training and demonstration
Certified Fire Fighting Team
Regular Fire Evacuation Drill
Sprinkler System
Sprinkler System in the Warehouse
Fire Door Protecting Warehouse to Factory – Smoke and Fire Protection
Better Work Program, Alliance and
Accord
• Working very closely with Alliance and Accord team
– Pioneer in working with Accord on Safety from 2013
– Currently Part of the Alliance Inspection and Remediation path
– Goal is to be the first set of 20 fully compliance Alliance Factory –
Target date June 30th
• “Better Work” signee and training with Better Work team
have already started
– ILO, IFC partnership and 30+ Large Brands including GAP, ANN
Taylor , Talbots and many others
– Phases: Training, Factory Assessment, Advisory Service
– Transparent Reporting: Factory Reports, Public Reports
Visual Tour
Sewing
Washing
Finishing
Quality Control
Safe, Environment Friendly work place
Crown
Sparrow
Natural Green Setting
Green Initiative and Energy Efficiency
• Heat Recovery from by returning steam into condensate
unit to Boiler
• Natural Gas based boilers with water softener
• Special valves and Condensate Recovery for steam loss
protection in finishing
• Solar Panels providing power to warehouses – 12%
• Committed to HIGG Index 2 by Dec 2013 and HIGG Index
3 by 2015
• Replacement of lights with LED and T5 Light-set
• Energy Efficient Servo motors for Sewing Machines
• Front loading washers and Zero water based washer –
gradually by 2016
Summary of HIGG Index 2
Saving Pledge
• Sparrow is Making a Saving Pledge of USD
118,313
• The Pledge is to save 32% of Total Energy Usage
by end of 2014
– This will reduce Greenhouse Gas (Carbon) by 1300 CO2e
• The Pledge will be met by Dec 2015
• The Implementation will be done in phases and
continuous and monthly reports will show the
progress
– Total Investment will be around USD 310,000
Green Initiatives
Solar Panels – 8% of the energy needs
ETP Plant
ETP Plant
Treated Water Reused for Gardening
Employee Relationship & Welfare
• Open Door Policy, Group Meeting and 1:1 meeting with
Employees and Top Management
• Alliance Help Line Participant – Signed up as the First
Participant
• RO Plant for safe drinking water
• In house Doctors and Nurses
• Maternity Benefit and special maternity care
– First Doctor Visit and doctor assisted child birth support
•
•
•
•
Child Care and educational scholarship on basis of merit
Medical Assistance
Marital Assistance
Special assistance for special needs:
– Emergency medical expense for the family
– Family special needs
Employee Welfare
Medical and Day Care Center
In house doctor and Nurse
Financial Support for Special needs
HERs Project
 Participated Twice and trained 500+ women
 Women health, sanity, safety, discipline and
empowerment
P.A.C.E Program
Personal Advancement and Career Enhancement
• Getting on boarded with P.A.C.E Program
• P.A.C.E in a nutshell:
– Program for Women primarily and facilitated by GAP Inc.
– Education and Training: Life Skills and Technical Skills for
Leadership
– Train, Encourage and facilitate Women Leadership and
Management
– Local NGO provides the training
• Our Goal:
– Targeting 25% of Women workers with 3+ years of Employment
and participation from all department
Alliance Helpline for Workers
• First Participant from Bangladesh on Alliance Helpline for
Employees
• Employees can directly call to the Alliance Operated
Helpline
• All the Employees have been trained to use the helpline
and express their happiness or grievances
• Encouraged and spearheaded by the CEO Shawn Islam
Continuous training & Skill improvements
• Training program for Sewing operators
– Special retention and promotion program for Helpers
or entry level people
• University affiliated practical training program
– Merchandisers
– Industrial Engineers
– Production Technicians
(Currently working with Santo Maria University in Dhaka)
• Training sessions for different employees at all
levels
Training – All levels, All the time
IT Users training
Orientation Program
Mid Management Training
Security Team training
Elected and Active Workers Committee
Employees voices are heard and represented
• Elected Workers Participatory Committee (WPC)
– Elected by direct voting by the workers and election
conducted by the Government Labor department
– WPC is involved in all decision making along with
the factory Owners and Management
– Regular WPC committee meeting with HR
department, and Top Management
– Constant two way communications – Satisfied
workers who does not use violence as a mean
– Open door policy by Factory owners
Empowered WPC
Employees Voting for WPC
Regular meeting with Management and WPC
Employee Retention Programs – Just
do it
• Employee society
– Owns two Trucks used for transportation of the company goods
and profits return to workers – Employee managed
•
•
•
•
•
Annual Picnic and recreation program
Annual Sports
Annual Celebration of New Years
Profit Sharing Program
Continuous training of middle Management, KPI for Managers
on worker retention and very active and trained HR team
– Orientation program, promotions and growth, talent
management, exit interviews
We give employees ownership
Annual Picnic where the top Entertainers of the country Performs
10 years completion Award
Annual Sports and Games
Worker’s Appreciation and Rewards
Sparrow – Committed to Excellence
in Product Quality and Customer
Satisfaction while maintaining level
of highest level of CSR,
Sustainability and People
A Group Company of Ambattur Clothing Limited