With net export earnings of US$ 6.1 billion in the 2015-16 fiscal year, apparel accessory makers and packagers are providing the most important backward linkage to the country’s golden goose—the readymade garments (RMG) sector. However, it could also be the next big export-earning sector, as 15-20 per cent of that US$ 6.1 billion came from direct exports. Experts in the sector said that it earned around US$ 1.22 billion in the last fiscal year, by directly exporting different accessories and packaging materials. The sector also earned another US$ 4.88 billion from indirect exports, as the accessories and packaging materials were used in RMG, leather, pharmaceuticals, and other export-oriented sectors. Of that US$ 4.88 billion, accessories supplied to the RMG sector, alone, comprised 80 per cent. In the RMG sector, the accessory makers and packagers supply 34 types of products, informed the sector stakeholders. They added that with proper policy support and financial incentives, both indirect and direct export earnings in the sector can be increased three times, over the next couple of years. Expo showcases progress Buoyed by the robust growth in garment shipments globally, the Bangladesh Garments Accessories and Packaging Manufacturers’ and Exporters’ Association (BGAPMEA) aims to earn at least US$ 18 billion, by 2021. From January 18 to January 21, the BGAPMEA, in collaboration with Zakaria Trade and Fair International and ASK Trade, organised the 16th edition of the four-day Garmentech Bangladesh 2017. In all, 400 companies from 24 countries in 612 stalls and pavilions exhibited their products at the fair. These products included corrugated cartons, back boards, neck boards, stickers, hang tags, barcodes, size tags, price tags, collar inserts, sewing thread, tape, elastic, printed and woven labels, zippers, hangers, buttons, and quilting and embroidery. Golam Kibria, an official at the stall of Jack Bangladesh, told The Independent that they are expecting at least 20 business prospects from this expo. “This expo creates opportunities to meet new buyers, which will help us broaden our business prospects,” he said. Showcasing a new product—the JK-900E sewing machine—Nur-A-Alam, the marketing executive of Jack Bangladesh, said thread-cutting will now be more accurate because of the sensor that has been added to the product. An LED light has also been added to the model. “Garment productivity in China has improved tremendously after using JK-900E,” Nur-A-Alam said. He added that this machine is 35 per cent faster than normal machines. This helps increase a worker’s income by 35 per cent. Winsome Yarns Ltd, an Indian company, has come up with an environment-friendly method to spin yarns. Rajendran, the deputy manager of Winsome, said their production process produces zero pollution. “We produce yarns by using renewable resources. We also practise rainwater harvesting, and we recycle waste to save the environment,” he added. Rajendran showed The Independent the environment-friendly process of producing polyester from recycled PET bottles. “We supply eco-friendly products across 70 countries and have a turnover of US$ 100 million, every year, from hydro-energy,” he said. Shahed Sultan, the CEO of RS Impex, had come to the expo as a buyer of machinery for his new packaging and accessories factory. Sultan told The Independent that this expo was a great platform for buyers to meet their needs profitably. Md Mashud HK Siddique, the director of Montrims Ltd, the largest accessories maker in the country, said the fair was an opportunity for accessory makers to expand their business, as well as to be introduced to state-of-the-art technologies. Montrims Ltd, a concern of Mondol Group of Industries, produces around 25 accessory items, including woven labels, leather badges, stone and metal motives, rubber patches, gum tapes, satin and cotton ribbon hangers, among other items. Siddique told The Independent that Montrims is a 100 per cent export-oriented company with 10 per cent direct export and 90 per cent foreign export. “The biggest buyers are our RMG factories that produce clothes for global brands like H&M, Tommy Hilfiger, and many others. This means that the accessories we produce are of international standards and are used by global brands,” he said. Big plans for the future. Md Abdul Kader Khan, the president of BGAPMEA, told The Independent that with the right policy support, the sector could grow big. “There is a US$ 24-billion market for garment accessories only in Asia, and China now holds the lion’s share of it. Our products are as good as theirs, and we have the potential to grab that market,” he asserted. Terming the expo a “success story”, Khan said that such exhibitions bring local and international stakeholders under one roof. “This sector is increasing and we need to sit under one roof. Doing that will open new doors of opportunities and business growths,” Khan said. He added that they now have around 1,560 members and the number is growing by the year. The sector is growing at an annual rate of 13 per cent, with value addition standing at over 40 per cent, he added. Khan said that even two decades ago, Bangladesh used to rely fully on imports of accessories to feed its growing garments industry. “Now the accessories sector has helped the country become self-sufficient in terms of backward linkage to the garments sector,” he said. He added that the accessory makers have increased their capacities and can almost entirely meet the demands of the garment exporters. Khan said they are anticipating a growth in business, as local and international buyers have shown increased interest in the sector this year, with the recovery of the global economy. “This is the time to give us policy support and financial incentives. We failed to grow at a similar pace, as the apparel industry, despite contributing a lot as a backward linkage industry,” he said. He added that they have demanded cash incentives on exports several times, as they have been contributing nearly entirely to export-oriented sectors. “Accessory makers are not under the government’s incentive policy, though the garment sector has been enjoying this benefit for a long time,” he said. “We have also urged the finance minister to allocate funds to help establish a packaging and accessories institution for skills development,” he added.
