The content of a project profile
Project Title: Provide a clear and concise title that reflects the nature of the project.
Establishment of NICCA CHEMICAL CO., LTD. (hereinafter referred to as “NICCA”) subsidiary in Bangladesh.
Project Description: Give a comprehensive description of the project, including its objectives, scope, and purpose. Explain why the project is being undertaken and what it aims to achieve.
Bangladesh is the world 2nd largest exporter of apparel, following to China, and the Bangladesh government recognizes the textile industry as the nation’s main industry, and has attracted major global companies and big foreign investment projects. NICCA has been exporting textile chemicals to Bangladesh market since 2000, and in 2014, Dhakka representative office was established and has been conducting market research for further business expansion in Bangladesh.
Now, NICCA came into the conclusion that it was necessary to put a local supply chain in place, and finally decided to establish a local subsidiary in Bangladesh (hereinafter referred to as “NICCA BANGLADESH CO., LTD”., or “the Company”).
Outline of the Company
-Name of the Company: NICCA BANGLADESH CO., LTD.
-Registration Number: C-191386
-Date of registration: 5th of October 2023
-Content of Business: Manufacturing and distributing surfactant for textile processing
Company Overview: Introduce the industrial company, including its history, mission, and core business activities. This helps readers understand the context of the project.
The global apparel market is about 1.5 trillion USD and will continue to grow at an annual rate of 5% (consumption is about 0.9 trillion USD in Europe, the United States and in China).
On the other hand, the production/export share of fabrics and apparel is 80% in China, ASEAN and Southwest Asia. From a medium- to long-term perspective, production will shift from China to ASEAN and Southwest Asia.
Bangladesh's apparel exports are expected to grow from 40 billion to 100 billion USD (2030), and the market is expected to grow further.
In 2014, NICCA established a representative office in Bangladesh where the apparel industry is the country's main industry (80% of all exports are apparel products).
While NICCA’s competitors are considering entering the market via active foreign investment, NICCA will also move into the local production phase to expand business and market share.
Project Location: Specify where the project will be located, including geographical details and any relevant local factors that might impact the project.
BSEZ: Establish a company in the Bangladesh Special Economic Zone (a joint venture between Sumitomo Corporation and the Bangladesh government).
It is located 20 kilometers east of the center of the capital Dhaka. Currently, it is a one-hour drive away. When the road under construction is completed, it becomes a good location to commutes from Dhaka city in less than one hour. At present, the main use of Chottogram Port is considered to be the port. When the development of Matarbari Port is completed in the future, it can be used as well.
Registered Address of the Compnay: Lot No.C6, Bangladesh Special Economic Zone (BSEZ), Sonpara, Panchrukhi Via Rupganji, Araihazar, Narayanganj, PO: 1460
Project Timeline: Present a timeline that outlines the key milestones and phases of the project, from initiation to completion. Include estimated start and end dates for each phase.
Please refer to the project timeline image as below.
Project Budget: Include a breakdown of the project budget, detailing the estimated costs for various components such as materials, labor, equipment, and overhead expenses.
In 2024, NICCA will proceed with the establishment and construction of the Company. The investment amount is USD 6 million. Started business in 2025. Net sales are 11.5 million USD, cost of sales is 8 million USD, selling, general and administrative expenses such as personnel expenses are 2 million USD, therefore, operating profit is planned to be 0.63 million USD. In 2026, we plan to have net sales of 13.9million USD, cost of sales of 10 million USD, selling, general and administrative expenses such as personnel expenses of 2 million USD, and therefore, operating profit of 1.2 million USD.
Project Scope: Clearly define the scope of the project, including what will be delivered, any specific features or requirements, and any limitations or exclusions.
We will acquire the land, build a warehouse and set up manufacturing facilities in BSEZ, and have a plan to hire 30 local employees by 2030.
Project Team: Provide information about the project team members, their roles and responsibilities, and their qualifications and experience.
In order for NICCA to expand business into Bangladesh, NICCA President Yasumasa Emori was appointed as Chairman of the Comapnay. In addition, Kotaro Takeuchi, who has been developing the market in Bangladesh, was appointed as Managing Director. Atsutaka Kobayashi, General Manager of NICCA Textile Chemicals Division, who has also supported business in Bangladesh, was appointed as Director. 10 local staff members of the representative office will be transferred the Company.
Regulatory and Compliance Considerations: Discuss any permits, licenses, or regulatory approvals that may be required for the project and outline the steps the company will take to ensure compliance.
Apply for Trade License, Building Permit, Import permit, Investment Clearance for the business of the Company. After the warehouse construction is completed, we will obtain Bond License and start our business.
Risk Assessment: Identify potential risks and challenges associated with the project and describe the strategies or mitigation plans in place to address them.
Assumed major potential risks of this project are as follows.
-Market risk; The risk that the market does not expand as expected. NICCA and the Company will closely monitor the market situation and respond accordingly.
-Operation risk; The risk that our manufacturing facilities do not work well, and we cannot supply the goods properly and timely to the customers. To mitigate that risk, NICCA, as a Parent Company, will support the Company from the technical aspect.
-Import-settlement risk; If Bangladesh government decides to suspend foreign currency settlement with overseas countries, the Company cannot settle the procurement, thus cannot import the goods and key materials, that will affect the factory operation. To avoid that risk, we need to discuss this risk with the government agencies and our operational bank to find an alternative way.
Environmental and Sustainability Impact: Detail how the project will impact the environment and any measures the company plans to take to minimize its environmental footprint.
In general, in this project, the Company plans to introduce only one mixer whose size is 5㎥, and production line is one kind. Therefore, environmental impact in terms of production activity is quite limited.
Air Environment Impact:
In normal, there is emission gas generated from the trucks coming and going. In terms of production, the Company will not treat the materials which affect the air. Noise level is to be measured at the fixed 4 points in the site once a month. In accordance with the regulation of BSEZ, the Company will set up the solar power electricity generator to save the energy of the office lights and so on.
In emergencies, the emergency electricity generator works, and emission gas is generated via diesel pump for fire-extinguishers.
Wastewater Environment Impact:
In normal, due to one kind of production line, there is no wastewater of cleaning equipment/tools. Due to the machine to soften the water, TDS, Total Dissolve Solid, burden will occur. In terms of factory, for protection of leaking of water, the first pit accommodates 38㎥ of water and then, get the water out of the site through the pump. The usage of running water and wastewater is to be measured every day. To save rainwater, an underground tank is to be set up to re-use the water on the warehouse roof for the green field in the site. The analysis of wastewater is conducted by the outsourced institute once a month.
In special cases, when changing the production line, and/or periodical regular washing, wastewater occurs. Before washing, put about 20 liters of water on the tools and equipment, and then, the dense waste liquid is to be collected and provided to the professional company for water treatment.
In an emergency, there is liquid leaking risk by accidentally drum tumbling. In case of leaking within the production area, the ditch around the area, collecting space and the isolation valve collect the liquid, preventing the liquid from going outside. In case of leaking in warehouse, the ditch is in place in entrance/exit. In case of leaking at truck loading area outside the warehouse, the liquid is to be collected accordingly as well. If leaking reaches rainwater, the valve connecting C6 site and the canal is to be closed, and the liquid is to be collected in rainwater ditch.
Stakeholder Engagement: Describe how the company plans to engage with stakeholders, including local communities, government agencies, and other relevant parties
NICCA and the Company are committed to contribute economically to stakeholders e.g., local society, local government agencies and to hire local employment.
Project Benefits: Outline the expected benefits and outcomes of the project, both for the company and for the broader community or industry.
-The Company can deliver the goods to the local customers on a just-in-time basis.
-The Company can provide various goods and solutions including water saving, energy and/or environment-regulation, depending on the customers’ needs.
Project Deliverables: List the tangible results or products that will be delivered upon project completion.
Please see the excerpt of Required Information for Investment Clearance Certificate below. The Company is supposed to output and sell the following NICCA products.
Appendices: Include any supporting documents, drawings, maps, or additional information that may be relevant to the project profile.
Please see the attached documents of drawing map of warehouse
Contact Information: Provide contact details for key project personnel or company representatives who can be reached for further inquiries.
Please contact NICCA Chemical Co., Ltd. Bangladesh Liaison Office
Tel: +8801735901417
Contact person: (Mr.) Kotaro Takeuchi