High and Lows of Bangladesh Textile Industry Essay - 23

High and Lows of Bangladesh Textile Industry - Essay Example The move to join was seen by many as a setback to the economy, but this was not the case. The textile export in Bangladesh continued to grow while, in 2008, the rest of the country suffered economic recess, but Bangladesh enjoyed an export rise. The textile industries rose to 5000 factories that provided employment to about 3 million people (2). The developed countries underwent economic recess in 2008-2009 and were forced to import low- cost garments from Bangladesh to meet the demand of their customers who wanted low prices. These companies included Walmart and as a result, a Hong Kong manufacturing company- Li & Fung enjoyed a 25 % rise in 2009 as compared to China whose sales dropped by 5%. The underlying factors that triggered an increase in the exports were based on the fact that labor costs were low due to the presence of hourly rates of wages. The wages were low in Bangladesh with the minimum of $ 38 a month as compared to China that went up to $138 a month. Other factors included; few regulations that are equivalent to no rules at all, a good network of supplies which saved on transport costs, import duties and time. Bangladesh also benefited from not being China as the importer had become too independent on their imports and wanted an alternative. This came as a result of an increase in costs if the problem was no t addressed. All these factors favored Bangladesh, and it became the second largest to China garment exporter (2). Some of the main setbacks to economic development include power disruption, poor infrastructure since the government has underinvested as compared to China. Apart from these, Bangladesh underwent economic crisis after the collapse of the Rana Plaza building that hosted five garment factories. The collapse came as a result of not following construction procedures as the building could only hold five floors.

RAK properties company financial analysis Essay Example | Topics and Well Written Essays - 750 words

RAK properties company financial analysis - Essay Example RAK Properties will also maximize shareholders’ value through its development projects in the coastal and inland areas of Ras Al Khaimah. RAK Properties has a sound capital of AED 2 billion. The Initial Public Offering (IPO) of RAK Properties in early 2005 was over-subscribed by almost 57 times. RAK Properties is a company which was listed in the Abu Dhabi Stock Exchange from 2005 onwards. Just like many of the property companies, the company also has faced a difficult time due to the past recession. However, the markets are turning around with UAE growth resuming and it is very much likely that the company also is in the process of bouncing back with the recovery of the markets. The company was almost bankrupt during the recession period and now is gradually emerging out of the recession and working towards developing properties aggressively. Comparing with the high ranked competitors in the region, the company is more of a smaller player in the market. However, the company h as the opportunity to build a totally new portfolio and compete effectively with the other very large holder of the property and continue to offer high value products in the market. RAK, unlike many other high end large scale companies is thriving to strike a balance between offering high end product portfolios and maintaining medium end offerings as well. Thus, the company actually has a better mix of products on offer. Abu Dhabi real estate markets are growing very fast. Currently, there are 193,000 residential units in place and this is likely to increase to 246,000 units by 2013 according to estimates by Estatesdubai (2011). This indicates that the residential properties are expected to grow fast. Most of the residential properties were purchased by Indians at a cost of AED 3.3billion for 2010. This indicates that the confidence in the property markets is increasing and as a result of the total exercise, it is very much likely that the property companies will face increased dema nd over 2012 - 2015 periods. On the Abu Dhabi growth front, office space has grown by 55,000 square meters just in Q3-2011 reaching a total office space of 2.4 million square meters and this indicates the fact that the business growth is also faster in the region. This is likely to result in sustainable growth in the property market in the future. Thus, the company is one placed in a growth oriented industry and it is likely that they need to place themselves appropriately in the market for growth. While the company holds smaller properties compared with the competitors, the company will be able to expand portfolio with the current investments and will be able to aggressively grow in the markets. 2.0 Financial Analysis When analyzing the financial statements, there are few key observations that are noteworthy. Just like many of the companies who went through troubled times during the economic recession, the company also had faced difficult times and thus, they do not have revenue nu mbers for 2009 financial year due to the temporary halt in the operations. This is common with the industry as the whole industry was impacted negatively and most of the smaller players had to face this scenario. Another important aspect to note is that the company has changed the year end date from June to December. These aspects have to be noted prior to analyzing of