CommunicationonProgressofViyellatex

ReportingPeriod:April2009March2010

CompanyOverview

Companyname

: ViyellatexGroup.

Sector

: Textile&apparelmanufacturing.

Numberofemployees

: 13000.

UNGCsignatorysince

: April2009.

Contactperson

: M.K.Zakeria

Address

: 297,Khortoil,Gazipura,Tongi,
Gazipur1712,Bangladesh.

Email

: compliance@viyellatexgroup.com

Phone

: +8801713241002

BriefDescriptionofnatureofbusiness:

Viyellatexisarenownedtextile&apparelmanufacturerinBangladesh.Itssetupiscompletelyvertical
with a variety of operational and functional units such as knitting, dyeing, washing, printing,
embroidery,stitchingetc.Itsmonthlyproductionvariesfrom1.5to2.00millionpieces.Theproducts
aremostlyofhighfashion.ItsexportingmainlytoEurope.ThemajorbuyersareGstar,Puma,Marks&
Spencer,Esprit,S.Oliver,GerryWebberetc.Theyearlyturnoverofthecompanyiscloseto$150million.

Viyellatexisusingmostlystateoftheartmodernmachinesinitslines.IthasalsointegratedInformation
Technologywithitsbusinessprocess.ToderivemaximumvalueoftheIT,thecompanyhasintroduced
SAP ERP in addition to other world famous softwares like Fast React for garment production

planning, General Sewing Data (GSD) for controlling the timing & motion of every garment
sewing operation, Orgatex for centrally controlling dyeing machines, Garber & Optitex for
PatternDesignSystem(PDS)andasophisticatedlocalsoftwarecalledKORMEEforaccurate
payrollprocessing&humanresourcemanagement.

Although the company isrelativelynew but within this time it has earned many laurels both
fromhome&abroad.TheCompanyisethicallycompliant&maintainstransparencyatalllevels
ofitsbusinessprocess.Thecompanyiscommittedtohumanrightsandenvironmentalcharter.

ScopeoftheCOP:

Inthisreportingyearourscopeshallbelimitedtoworkplaceonly.Wepledgetoensurethe
following:

1) Employmentisfreelychosen.
2) FreedomofAssociation.
3) WorkingconditionsareSafeandHygienic.
4) Childlaborshallnotbeused.
5) Livingwagesarepaid.
6) Workinghoursarenotexcessive.
7) NoDiscriminationispracticed.
8) Puttingmaximumeffortforenvironmentprotection.

HumanRights:
UNGlobalCompact
PrinciplesCovered:

Principle 1: Businesses should support and respect the protection of

internationallyproclaimedhumanrights
Principle 2: Businesses should ensure that they are not complicit in
humanrightsabuses

Commitments

Norecruitmentofunderageworkers
Employmentofphysicallychallengedworkersinthemainstream,toencourage
themtobeselfreliant.
Tomaintainasafe&hygienicworkingenvironment.

Actionstaken

HumanRightsCurrent

Registeredmedicalofficershavebeenappointedtocarryoutmedicalcheckups,age
estimationsandtonecessarymedicineswhenrequired.
A capable human resource development department has been put together to
handletherecruitmentprocedures.
An active compliance & welfare team has been put together to ensure & provide
routinefollowupsonthesafety&hygienicconditionsoftheworkingenvironment.
Free lunch facilities and free personal protective equipments (PPE) like uniforms,
masks, gloves, caps, boots, aprons, ear plugs and eye guards are provided for all
factoryworkers.
Besidesmaternitybenefit,thecompanyhasbeenprovidingfreeultrasonogramsand
medicinestothefemalepregnantworkers.
Thecompanyalsoholdsanannualfreeeyecampwherefreesurgery&medicinesare
providedtotheworkers.

Assessmentoftheoutcomeandvalueadditiontothecompany

HumanRights
Future

Employeeturnoverratehasdecreasedandhasremainedlowfortheconduciveness
oftheworkingenvironment.
There has been an increase in production & productivity due to increased job
satisfaction.
Reducedaccidentsandillnessesdue tosafeandhygienicworkingconditions.

Activitiesplannedforthenextyear

To provide regular training in order to create awareness among

workersregardingtheirrights&responsibilities.
Increased employment and facilitations of physically challenged
workers.

LaborRights:

UNGlobalCompact
PrinciplesCovered:

Principle 3: Businesses should uphold the freedom of association and the effective
recognitionoftherighttocollectivebargaining
Principle 4: Businesses should support the elimination of all forms of forced and
compulsorylabor.
Principle5:Businessesshouldsupporttheeffectiveabolitionofchildlabor.
Principle 6: Businesses should support the elimination of discrimination in
respectofemploymentandoccupation.

Commitments

ImplementationoftheWorkersParticipationCommittee.
Employmenttobefreelychosen(Thereisnoforced,bondedorinvoluntarylabor)
Childlabortobestrictlyprohibited.
Nodiscriminationtobepracticed(inrecruitment,compensation,accesstotraining,
promotionordisciplinaryactions)basedonrace,caste,nationalorigin,religion,age,
disability, gender, marital status, sexual orientation, union membership or political
affiliationetc.

Actionstaken

LaborRightsCurrent

The company has constituted the Workers Participation Committee in the manner
prescribedbytherules.
The company has written policies regarding forced or bonded labor, child labor and
discrimination which are posted on all notice boards in the factory. Child labour and
discriminationisabsolutelyprohibitedinthecompany.

The company has defined performance based policies for recruitment, promotion, salary
increments, training and disciplinary actions (based on skills, education, prior training,
experience,behavioretc).
Aqualifiedhumanresourcedevelopmentdepartment&compliancedepartmenthasbeen
workingtoensurelaborwelfare.

Assessmentofoutcomesandvalueadditiontohecompany

Reduction in workers dissatisfaction due to the empowerment of the participation

committee which promotes mutual trust, understanding and cooperation between the
employerandtheworkers.

Turnoverrateislowduetoproperabidanceoflaborrights.
Increaseinproductivity

LaborRights
Future

Activitiesplannedforthenextyear

Introductionofaschemewhichentitlestheworkerstoashareinthecompanysprofit.

Environment
UNGlobalCompact
PrinciplesCovered:

Principle 7 : Businesses should support a precautionary approach to environmental

challenges
Principle 8 : Businesses should undertake initiatives to promote greater
responsibilitytowardstheenvironment
Principle 9 : Businesses should encourage the development and diffusion of
environmentfriendlytechnologies
[

Commitments
Wearecommittedtoensuringthatouroperationsareecofriendlybyefficientlyusingair,water,
energy&othernaturalresources.

Actionstaken

EnvironmentCurrent

Insteadofusingairconditioners,ViyellatexLtd.installedenergysavingevaporatingcooling
systemsintheapparelproductionfloors.
Morethan300,000litersoftreatedeffluentwaterisbeingusedforthetoiletflushesevery
day,savinglargevolumesofundergroundwatereveryyear.
250,000 square feet of the factorys roof top is being used to collect approx. 45 million
liters of rain water in each year which is later used in textile processing saving valuable
undergroundwaterandsavingextrachemicalsusedforwatersoftening.
Recondensed steam water is being transported to the boilers feeder tanks which
increasesthetemperatureby1520c,thissavesaheftyamountofenergyandminimizes
globalwarming.
Exhaustfromfabricdryersisredirectedtotheairinletsandfedintotheburnerstoreduce
energyconsumption.
5MWwattgasgeneratorexhaustusedforcogenerationchillerforproducing900MTair
cooling.
3.2MWwattgasgeneratorexhaustusedforcogenerationboilerforproducing2.70MT
steam.

Assessmentsofoutcomesandvalueadditionforthecompany

Environment
Future

Healthier environment for the society as Viyellatex is reducing its carbon emissions,
preservingrainwaterandothernaturalresourcesandrunninganeffluenttreatmentplant
todischargetreatedwater.
Hugecostsavinginenergy.

Activitiesplannedforthenextyear

EstablishinganewgreenfactorywhichisfirstofitskindinBangladesh.
Producingnaturalfertilizersfromthefoodresidueof8000employeesandcottonmicrodustof
spinningmill.
Toengageincarbontrading.

Anticorruption
Principle 10 : Businesses should work against corruption in all its forms including
extortionandbribery

UNGlobalCompact
PrinciplesCovered:

AntcorruptionCurrent

Commitment

Nobriberyforcompanysgain.

Transparencyatallleveltostopinhousemalpractices.

Actionstaken

Thecompanyhasawrittenanticorruptionpolicy.
There is a team of auditors continuously auditing transaction records, keeping a
transparentfinancialandinventorysystem.
The human resource development department & the auditing team collaborate in
lookingaftertheissueregularly.
AdditionallytheintroductionofSAPERPinthebusinessprocesshasmadethingsmore
transparenttothehighermanagement.Thisautomaticallyworksagainstcorruption.

Assessmentsofoutcomesandvalueadditionforthecompany

Increaseintheoverallefficiencyofthecompany.
Reductioninhasslesforbuyersandregulatoryagencies.
Increasedprofitability.

Antcorruption
Future

Activitiesplannedforthenextyear

Introduction of awareness programs for the employees regarding anticorruption to

discourageparticipationinanysuchactivities.