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COMPANY PROFILE BANGLADESH FACILITIES 1

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COMPANY PROFILE

BANGLADESH FACILITIES

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About 1888 Mills LLC1888 Mills LLC is a leading manufacturer of home and commercial textiles

catering to its retail, hospitality & healthcare markets worldwide.

For Bath towels, it is one of the top 5 supplier giants in the world.

1888 Mills LLC has manufacturing plants in

• Griffin, Georgia, USA

• Karachi, Pakistan

• Chittagong, Bangladesh

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We are its Bangladesh Facilities

Preview of Bangladesh Facilities

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Under the leadership & vision of Mr. M. Sulaiman, the first factory under this group was Modern Towels (BD) Ltd. established in 1989 with only 24 shuttle looms (approx 40,000 lbs or 18,150 Kgs/month). Now we have 6 factories with capacity over 3 million lbs (1400 tons) /month

Qualitex Industries (BD) Ltd.Crown Mills (BD) Ltd. Premier 1888 Ltd. (Unit 1 & 2).Mitali Textile Industries (BD) Ltd. Modern Towels (BD) Ltd.Aadi Towels (BD) Ltd.

Sustainable Development

Goals

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……People……Planet

……Prosperity

Our 3P Initiatives

People

Adult Education We are providing adult education To our workers.Stipend for Workers ChildrenWe are providing BDT 12000 (US$155) to one person for an year. Our goal is to increase by 5 students every year.

Women EmpowermentWe are providing bank account to our workers because of which women

are being benefitted specially.

Our core values starts with our employees. We have over 6000 employees at present and have established many programs which translate our core values into action, resulting in

mutual prosperity:

Subsidized Food Our employees are getting food at subsidized rate – the company pays 75% of their meal expenses.

In- house Doctors & NursesWe have in-house doctors & nurses for our employees.

Minimum Wages : We are paying US$ 75 as minimum wages to our novice

workers.

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People

PlanetWe are a careful and socially responsible corporate citizen. In every step we are mindful of our foot print on the environment.

We have 3 Effluent Treatment Plants, treating about 3000 m3 of waste water per day.

We are harvesting rainwater and using this in our processing, annually saving 21% of our total water requirement which can thus be used by others. This 21% is equivalent to 11,000 people’s annual water requirement.

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We are also working on Energy saving projects. Today we use natural light in our wet processing areas during the day to reduce Energy consumption. Amazingly now we are saving 131,520.48 KW/Year which is equivalent to the yearly need of 1707 families.

Recently we’ve had an agreement with International Finance Corp., IFC (member company of World Bank) to assess our Energy, Water & Chemical consumption and make recommendations as to how we can further reduce yearly consumptions in these fields.

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Planet

We have introduced solar panels in our Fire Safety system. We are planning to increase the number of solar panels in our every department in due course.

We print of both sides of a paper to save it’s consumption and to reduce deforestation.

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Planet

PlanetBetter Cotton Initiative

We have taken better cotton initiative for following purpose:

1- Reduce the environmental impact from cotton production.

2- Improve livelihoods and economic development in cotton producing areas.

3- Increase commitment for more efficient flow of Better Cotton throughout supply chain.

4- Ensure the credibility and sustainability of the Better Cotton Initiatives.

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Our Customers

On time delivery as well as maintaining high quality standard at competitive

price.

We are globally aligned with our USA & Pakistani factories, obtain technical,

logistical and commercial support from them and thus set ourselves apart

from any other factory in Bangladesh/Pakistan/India.

We have a skilled technical design team, who can offer innovative designs to

cope up with the latest of trends.

We offer supply chain analysis for all our customers. We do forward planning

based on historical data and future sales trends.

We keep safety stock both in finished & grey forms to fulfill customers’ urgent

needs.

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We are always committed to our customers to provide them quality services by offering :

Prosperity- Our Customers

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USA Walmart Dollar General Target Medline Industries Ltd. Bluestem American Hotel Register Sysco Guest Supply Sam’s Club HD Supply Fred Meyer Intralin Corp McArthur

Canada Walmart George Courey Inc JYSK (Canada). Domay Sales Dophes Fusion Trading

CompanyEurope Ikea, Sweden ASDA, UK JYSK Group (Denmark) Auchan International, France Carrefour, France Beamfeature, UK KIK, Germany KHG-GmbH, Germany

Australia Somaia Group • Simba• Domtex

Killarney Linen Pvt Ltd.

Currently we are supplying towels to leading customers including:

***Bold indicates premium buyers

Asia

Nitori Co. Ltd, Japan

Suzukawa, Japan

Prosperity- Our Exports per Global

Destinations

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USA Turnover: US$ 41,129,200.83 Which is 50.4 % of Total Turnover

Canada Turnover: US$ 11,195,363.79 Which is 13.72 % of Total Turnover

Europe

Turnover: US$ 21,919,914.88 Which is 26.86% of Total Turnover

Others

Turnover: US$ 7,366,108.76 Which is 9.03% of Total Turnover

Total Turnover: US$ 81,610,588.26

(US$ 81.61 mln)

Year : 2013

Prosperity –Sales Turnover (2000 – 2013)

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$12.8 $17.3

$14.1 $22.0

$28.4 $28.5 $36.0

$46.4 $49.9

$59.2

$68.6

$85.4

$72.7

$81.6

Sales Turnover (US$ million)

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YEAR

Prosperity –Our Production Capacity & Growth

2000 2003 2006 2009 2012 2015 (Projected)

300

550

1000

1400

1600

2000

Production Capacity (Tons per month)

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YEAR

Our Production Processes

Yarn Procurement

Warping & Sizing

Weaving Dyeing & Finishing

Sewing & Packing

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WeavingOur weaving department is equipped with state of the art rapier

shuttle-less dobby looms.

Our weaving is capable of weaving between 340 GSM to 600 GSM for bath towels and up to 800 GSM for bath mats.

Weaving parameters and quality is monitored continuously through on loom inspections. Once the cloth is woven, every meter is physically inspected on inspection tables .

We have recently installed Electronically Controlled Systems on our warping and Sizing Machines, and will be installing Electronically Controlled Systems on our Dye Pads within the next six months. This ensures we are manufacturing to peak performance at all times.

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Processing• The processing department finishes cloth according to consumer

specification including color selection. • Our aggregate wet processing capacity is 4.0 Million lbs (about

1800 tons) per month with “J” box bleaching and cold pad batch dyeing (salt free).

• We have two in-house fully equipped textile laboratories. • Our labs have capabilities to conduct all types of physical tests per

ASTM, AATCC and ISO methods. • We also have a conditioned yarn testing lab. Through various

testing's these labs thoroughly inspect and guarantee that the towels have fulfilled the quality requirements.

• We have recently extended process floors with new finishing equipments - dye pads, finish pads, dryers, shearing machines, sewing machines.

Sewing to Finishing

The Stitching department is equipped with the state of

the art sewing machinery.

Our stitching is durable withstanding multiple washings

without fraying. It is all lock stitched – no chain stitch

used in entire process

Every towel is 100% checked through product inspection

for quality to ensure consistency which meets our high

standards before being moved to the folding and

packaging area.

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expertise of our people through years of experience gives us competitive edge

• Our warehousing and product packaging is always done under stringent international standards.

Innovative Steps for Growth - Soft Flow Dyeing Machine

We have introduced some new machineries which have improved our capacity & capability in the wet processing area.

Added 03 soft flow dyeing machines in our dyeing facilities. Benefits of using such machines are-------- => Shortest processing time (i.e., <6 hours for Dark colors). =>Low liquor ratio.=> Less utility consumption.=> Less Pilling.=> No elongation. => Flexibility of vat dyeing.

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Innovative Steps for Growth – Package Dyeing Machine (Yarn)

Added a package dyeing machine in our facility. Dyeing capacity is 200,000 Lbs/Month. It is giving following benefits---

=>More capacity in accepting yarn dyed orders.=>Vat Dyeing capability.=>Lead time improvement.

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Innovative Steps for Growth - Tumble Dryer

Added a tumble dryer in our facility. Drying capacity is 25,000 Lbs (11,340 kgs)/Day. The benefits are-------

=>It gives a even look in whole towel.=>It reduces the shrinkage percentage.=>Better hand feel.

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Innovative Steps for Growth - Stenter Machine

Added another stenter (Dryer for non-terry towels) machine in our facility. Capacity is 15,000 Lbs (6800 Kgs)/Day. By adding this machine we are in a position to accommodate more non-terry orders.

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Innovative Steps for Growth – New Laboratory

We’ve set up a new & bigger lab (total space 3600 sft) in our facility where we’ve incorporated

=>Yarn Testing.=>Physical Testing.=>Packaging testing (corrugated board).

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OutputImproved weaving efficiency : 74% Consistency in quality:Wal-Mart DRR (Defective rate of return) : 0.08%IKEA COPQ (Cost of Poor Quality) : 0.64%IKEA CEPQ (Customer Experienced Product Quality) :

1.54%Consistency in delivery:Delivery performance : ≥ 95%

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Glimpse on our Products

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Glimpse on our Products

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PDQs & Pallets

Our Customers’ Recognitions

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“Best Supplier” award from IKEA - Quality in 2005 & 2007

“Best Supplier” award from IKEA – IWAY in 2005

Walmart “Supplier of the Year, Home Division” – 2008, 2012

Walmart “Vendor of the 3rd Quarter” 2007

American Hotel “Vendor of the Year” - 2006, 2007, 2008, 2009, 2010,2012 & 2013

“Best Supplier” award from IKEA - Availability in 2009 & 2010

Dollar General “Vendor of the Year” and “Partner recognition” for innovation, Dependability & Excellence - 2007

“Excellence in Export for Year 2011” award from HSBC

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Certifications Achieved

View of Some Successes

.

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Recognition for top Exporter – HSBC Export Excellence Award 2011

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USA

AUSTRALIA

USA

USA

NITORI, JAPAN

UNITED KINGDOM

SWEDENUSA

FRANCE

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“Weaving a Better World”

THANK YOU