At least 20 people were injured in a clash between police and garment workers at BSCIC industrial area in Fatullah of Narayanganj today (21 April).
Quoting witnesses, police said that a group of workers of Abanti Colour Tex Limited blocked Dhaka-Munshiganj road at about 9:30am after placing bamboo, sticks, electric poles and logs demanding payment of their dues.
A 2-kilometre tailback was created on the road due to the blockade. Vehicular movements in the area came to normal around 4 pm.
On information, police rushed to the spot and the clash started at about 12:30pm when police tried to disperse the workers.
A chase and counter-chase took place in the area.
Police lobbed tear gas shells and fired rubber bullets and used water cannons to bring the situation under control.
Workers said that the factory was declared closed on 8 April without clearing the dues for the month of March.
The owner of the factory earlier assured that they will pay their dues through mobile banking before Eid-ul-Fitr but the workers did not get their salary.
Vehicular movements in the area came to normal around 4:00pm.
It needs to adopt technology and invest in skill development and innovation for high valued product manufacturing
Bangladesh has widened the gap with its close competitor Vietnam in the global apparel export market to retain the second position as supplier of clothing items after China.
According to Export Promotion Bureau (EPB) and General Statistics Office of Vietnam data, in 2023 Bangladesh earned $47.38 billion, which is $14 billion higher than Vietnam’s $33.33 billion in the same period.
In 2022 the gap was $8.14 billion as Bangladesh earned $45.70 billion against Vietnam’s $37.57 billion.
Though the widening gap gives exporters confidence, but experts as well as the sector people warned not to be complacent as Vietnam is competing with Bangladesh with almost half of the workforce. It is a threatening factor for Bangladesh to retain second position in the global market.
Bangladesh’s apparel industry employs over 4 million people, while Vietnam’s labor force in the sector is over 2.5 million.
Bangladesh lost its second position to Vietnam in 2021, when it earned $27.47 billion against the latter’s $29.8 billion.
“If we consider Bangladesh’s gap with China, it is very large. But in the last two years, we have done better than Vietnam. However, it does not guarantee that we will remain second as Vietnam’s apparel export performance was better in the last couple of years,” said Professor Mustafizur Rahman, distinguished fellow at Centre for Policy Dialogue (CPD).
To sustain the growth and remain the second largest exporter title, we have to identify our shortcomings and ways to grow further, said the economist.
Rahman also urged to be prepared to face the post LDC challenges as it may lessen our competitiveness in the export markets due to tax benefits erosion.
Problems and ways forward
In terms of comparative benefits, Vietnam is in a strategic location with the European Union and the US, while it has competitive labor costs. The country has focused on technology and innovation as well as invested more in skill development.
“We have a good number of factories but the lion share of RMG export earnings are contributed by a few large groups,” said SM Khaled, Managing Director of Snowtex Group.
Figure: SM Khaled, Managing Director of Snowtex Group.
Our capacity is larger than Vitamin but we produce mostly basic items except a few. In contrast, Vietnam makes high valued goods and earns better prices, said Khaled.
On the other hand, despite having a big workforce, we are manufacturing less quantity and basic items as their skill and productivity is comparatively lower than Vietnam, he said.
“They have a closer supply source of raw materials from China and a strong backward linkage industry.”
To cash the opportunity of capacity and large volume workers, we have to invest in skill development and move towards product diversification of most non-cotton and high valued goods, said Khaled.
“Bangladesh manufacturers are weak in product marketing. As a result, they take basic orders. For example, from a buyer an exporter can grab 50,000 basic work orders but similarly he/she has to negotiate at least five brands or buyers to grab 50,000 orders, said Abrar Hossain Sayem, a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Bangladesh has to set a strategy on how to take a $2-$3 order to $5-$6 one. Buyers pay $15 for a woolen sweater, while an acrylic sweater pays $5-$6 on an average, said Sayem.
“We have to address this challenge to reap the most benefits of our capacity.”
For high valued products manufacturing, supply of raw materials is crucial and no alternative to establish a strong backward linkage. We have to develop fabrics for high end products to compete with Vietnam, said the CEO of Merchant Bay Limited.
Low workers’ wages were an advantage for Bangladesh but in recent years it has been over as the cost of production increased due to the hiked prices of utility services, explained sector people.
In addition, the minimum workers’ wage rose to Tk12,500 for entry level workers, which reduces competitiveness, they said.
On top of that, workers productivity is less than Vietnam and the use of technology is much better than Bangladesh.
Foreign investments matter
In moving towards the high-end products manufacturing, foreign direct investment plays a key role. But Foreign Direct Investment (FDI) in the textile and garment sector here in Bangladesh is relatively low.
This is because of a lack of well-developed infrastructure and good governance. In addition, doing business is harder than in Vietnam in case of getting license and utility services.
Higher corporate tax and complexity in the tax system are other barriers in attracting overseas investment.
Bangladesh is not even receiving enough Chinese investment, which is shifting to South Asian nations. Chinese investors are choosing Vietnam for investment in the RMG sector.
Technology adoption crucial
The Vietnam apparel and textile sector is undergoing a digital transformation, optimizing processes and boosting efficiency. They have embraced the latest technology such as WFX PLM, ERP and MES. Manufacturers are using robotics and automation solutions as well as supply chain management.
“If we look at the present situation of the industry in terms of technology use, sustainability practice and safety, it is far better than any time. We have upgraded technology, established an innovation centre and developed a training programme for skill development,” said immediate past BGMEA president Faruque Hassan.
Exporters are now exporting high valued items such as denim, jackets, suits, which contributed to widening the gap with Vietnam. Through research we have identified challenges and opportunities of non-cotton exports, said the business leader.
Contribution of non-cotton products to garment exports increased to 29% from 25% over the last three years and Bangladesh’s export earnings from non-cotton items rose to rise $42bn by 2032 with proper investment, said Hassan.
So, Bangladesh will continue to grab market share and decrease the gap with number one exporter China as well as widen the gap with Vietnam, said Hassan.
Green building, also known as sustainable or eco-friendly building, refers to the practice of creating structures and utilizing processes that are environmentally responsible and resource-efficient throughout a building’s life cycle, from siting to design, construction, operation, maintenance, renovation, and demolition. The goal of green building is to reduce the overall impact of the built environment on human health and the natural environment.
On the other hand, greenwashing is a deceptive marketing or public relations practice used by companies to portray themselves as environmentally friendly or socially responsible when, in reality, they are not taking meaningful steps to reduce their environmental impact or improve their social responsibility. It involves misleading consumers into believing that a company’s products or practices are more sustainable or eco-friendly than they actually are.
Bangladesh Green Building Movement are very strong especially in Textile and RMG sector. Bangladesh now is the home of the Best LEED Green Building in the World (SM Sourcing, LEED Platinum with 106 Points) and also top 9 out of top 10 LEED Platinum certified factories of the World are in Bangladesh.
USGBC LEED is very comprehensive sustainable checklist evolved in last 30 years and became very popular Green Building Rating System in the World. LEED has worldwide acceptance as sustainable practice benchmark of any development. 183 Country and Territories in the World have LEED certified projects.
Worldwide fashion industry is one of the main sources of Carbon Emissions, Energy and Water Consumptions and Environment and Water pollutions. In fight to change and reduce Global Warming and Carbon Emission, Fashion Industry talking noticeable measures and as supply chain Bangladesh RMG sectors need to be and have to be part of it.
For that reason, the buyers of RMG from Bangladesh are encourage and give priority to LEED certified project. Bangladesh Government also encourages sustainable developments and practices with number of incentives such as “Sustainable Refinancing” at very low rate (5%) and Corporate Rate Discount (2%). Till today (23.03.2024) Bangladesh has 792 projects are registered with USGBC and among them 239 are certified (87 Platinum, 133 Gold, 15 Silver and 4 Certified as of 3.23.2024).
To satisfy buyers sustainability priority, getting preferences, qualifying for low-cost funding or corporate tax discount, a number of projects are pursuing LEED certifications. Unfortunately, few of these are pursuing LEED certificate for ornamental purposes without doing much and that is called ‘Greenwashing’.
LEED Green Building Concept when follow properly can provide significant benefits to the projects such as follow; –
Reduce Building Construction Cost by 2% to 5% (New Building)
Reduce Building Running Cost
Reduce Construction Time by 20% to 30%
Reduce Replacement Cost
Reduce Cost of Investment or Loan by 5% to 7%
Reduce Corporate Tax by 2%
Global Benefits with less carbon emissions and higher acceptances
Environmental Benefits with less energy, water and resources consumptions
Improve “Indoor Environmental Quality” for Health & Productivity
Improve Marketing Advantages with International Recognitions
Improve Corporate Branding with ESG Reporting
Improve Personal Satisfactions with Comprehensive Sustainable Practices
“If we understand LEED Green Building Concepts in a factual way, the cost is not an issue. If we analyze the costs and benefits in a meaningful way, we will see LEED Green Building Cost lees then regular buildings and create significant profits for the companies.”
If we do it right, Buyers do not need to pay more. Because we already saving energy, water, resources, replacement cost, cost of loan and with better Indoor Environment our productivities are increased and turnover rate are reduced.
On the other hand, achieving LEED Certificate with ‘Greenwashing’ will not create all above benefits and we may complain that ‘Buyers do not pay more’.
Greenwashing can undermine consumers’ trust in environmental claims and make it difficult for them to make informed choices. It’s important for consumers to critically evaluate the environmental claims made by companies and look for credible evidence to support those claims. Additionally, organizations and regulatory bodies may take measures to combat greenwashing and hold companies accountable for misleading marketing practices.
Author: Ananta Ahmed, International Green Building Expert, USGBC Faculty, LEED AP BD + C, LEED AP EB O+M, LEED AP ID + C, LEED AP HOME, LEED AP ND Principal LEED Consultant & MD – 360 TSL.
In summary, while “green” denotes authentic efforts toward environmental sustainability characterized by transparency, substantive actions, and long-term commitment, “greenwashing” refers to deceptive or superficial attempts to appear environmentally friendly without genuine commitment or meaningful action.
Bangladesh RMG sector is mostly depending on European Buyers and they abide by European Union rules and regulations. Recently European Union talking initiative to tackle ‘Greenwashing’ practices’ and asking for Sustainable Practices transparency and verifiable evidences.
In March 2022, the European Commission proposed to update EU consumer rules to support the green transition. In September 2023, Parliament and Council reached a provisional agreement on the updated rules.
MEPs approved the agreement in January 2024, followed by the Council the following month. EU countries have 24 months to incorporate the update into their national law.
So, we need to be ready and prepare for what is coming. We need to have better (digital) Energy and Water consumptions monitoring system, better sustainability practices parameters, innovative idea to reduce our overall carbon footprints and documentation to verify our claims.
The majority of the raw material yarn and fabric produced in the garment factories of Bangladesh is cotton. However, its local production capacity is negligible (2-3%) compared to the demand. So it is almost entirely dependent on imports. At present the demand of cotton every year in the country is more or less 85 lakh bales. Although cotton was brought from different countries of the world, Bangladesh was dependent on India for a long time.
Figure: World’s leading cotton suppliers like the USA, Australia, Africa and India supply cotton to Bangladesh.
Over time the dependence of Indian cotton is decreasing due to many factors, among which third country warehousing is playing a major role. Among them, some warehouses have been built in Malaysia’s Klang port using financing facilities from Jeddah-based Islamic Development Bank. Bangladeshi importers can bring cotton from there within seven days according to demand.
According to the country’s yarn and cloth producers, if quality is taken into consideration, the United States will be number one, Australia will be second and African cotton will be in third position. Indian will rank 6th or 7th position. However, a large amount of cotton is now being imported from Africa mainly due to third country port warehousing facility.
Mohammad Ali Khokon, President of Bangladesh Textile Mills Association (BTMA) said that there are many complications in storing cotton in the country. The interest rate on inventory goes up a lot. For this reason shippers store cotton in third country’s port according to the demand of Bangladesh. It can be brought in just seven days. Mainly because of this advantage, the import of cotton from the African region is gradually increasing.
Based on National Board of Revenue (NBR) data, the United States Department of Agriculture (USDA) says that in the 2022-23 marketing year (August-July), Bangladesh’s largest cotton imports came from West Africa, which accounted for 39 percent of total demand, with 9 percent sourced from Cameroon and 3 percent imported from Chad. As such, 51 percent of the total cotton import has been from countries in the African region.
Besides, 16 percent was imported from Brazil of South America, 12 percent of cotton comes from neighboring country India and 10 percent of the cotton came from the United States. However, trust on USA-made cotton’s among Bangladesh’s textile millers also increasing for its quality and contamination free– US cotton imports reached almost $470 million in 2022.
Large movement of cotton used to come to Bangladesh mainly from India, as the neighboring countries and availability of cheap cotton. But the yarn and cloth producers of the country claim that the quality of cotton coming from India has never been satisfactory. Moreover, Indian institutions often do not keep their promises. Problems also remain in yarn-fabrics produced due to substandard cotton.
Meanwhile, African cotton does not differ much from India in terms of price also the cotton is better than India. Although the country is far away from India, Bangladeshi importers are preferring Africa instead of India due to third country warehouse facilities. Due to which the import of cotton from Africa is increasing and from India has decreased to a large extent.
Born from a passion for innovation in 2018, Pure Chemicals has become a leading name in Bangladesh’s denim washing and textile auxiliary market. As the exclusive partner of SOKO Chimica-Italy, Pure Chemicals brings a commitment to consistent excellence.
Md. Forhad Hossan, CEO, Pure Chemicals has been leading the innovative trading company. Recently Forhad Hossan shared his in-depth dimension and future vision of the overall washing and textile processing industry and Pure Chemicals journey with Textile Today. Here is the essence of the conversation for the readers.
Textile Today: Can you please share with us about your journey from the very beginning? Please tell us about Pure Chemicals.
Md. Forhad Hossan: I started my career back in 2008. With over 15 years of experience leading global textile chemical companies, I honed expertise in customer needs, product lines, and garment washing sustainability. This knowledge fueled the launch of Pure Chemicals as an innovative trading company.
Pure Chemicals is dedicated to providing the best quality product at the best price along with robust technical support and a top-notch system with the highest ethical and professional standards by maintaining international regulation with a mission to be a leader in the textile and washing industry in Bangladesh.
From the very beginning of Pure Chemicals journey, we distanced ourselves from providing conventional solutions. Rather, we focused on R&D and innovation-driven solutions for the washing industry
Textile Today: Please tell us about SOKO & its initiative towards sustainability.
Md. Forhad Hossan: Italy-based, SOKO Chimica-Italy is a 100-year-old leading chemical company. Providing innovative chemical auxiliaries/solutions for fashion and the textile industry. SOKO’s constant research for sustainable and innovative solutions from best-sourced raw materials – made it one of the most active companies in the textile chemical sector. Providing premium quality solutions for the denim washing sector.
Textile Today: Please tell us about the innovations of SOKO. How SOKO can help the Bangladesh washing industry become more sustainable.
Md. Forhad Hossan: Sustainability is the ultimate way forward for the textile chemical company. To ensure sustainability SOKO Chimica uses only certified and safe premium quality raw materials coming from reliable chains. The results have continuously pursued new challenges to supply eco-friendly products that are ZDHC level-3, OEKO-TEX, GOTs, REACH and ECO PASSPORT certified.
Textile Today: In this competitive market how Pure Chemicals can help the washing Industry to become more competitive.
Md. Forhad Hossan: Pure Chemicals is dedicated to providing the best quality product at the best price along with robust technical support and a top-notch system with the highest ethical and professional standards by maintaining international regulation with a mission to be a leader in the textile and washing industry in Bangladesh.
Our top-notch production-friendly solutions are suitable for the local washing and textile processing industry. For example, Pure chemicals provide Cellulose-based Bio-Polishing enzymes for stonewash – which significantly reduces cost. Its success rate is 100% in indigo fabric. Besides, it reduces other issues like slasher problems in ETP’s while using Pumice stone.
Another top solution is ‘Black Magic’ by SOKO, which optimizes the Sulphur bleach by reducing the processes. Instead of two/three conventional baths – Black Magic requires a single bath at low temperatures. Saving time (30 minutes), less fabric stress, less dangerous Chemicals, ensuring energy saving and giving black denim a better hand-feel.
Overall, a practical and cost-effective solution for the denim market.
Textile Today: What is your vision for the future of your company? How do you plan for the upcoming years?
Md. Forhad Hossan: I have taken the path of slow and steady as the future vision of my company. As a premium category solution provider, we mainly target premium manufacturers. In 2024, I want to grow my business by 50%.
Moreover, I have a plan to start a local production facility in 2027. This will greatly enhance Bangladesh’s washing and textile processing industry. I will import the raw materials and produce processing chemicals here.
The recent global crises like COVID and supply chain challenges have taught us to be self-reliant.
As a 20-year-old industry veteran, I understand the denim sector’s demands, quality and other crucial aspects.
Textile Today: How does your company prioritize customer satisfaction and ensure that your clients receive the support and expertise they need to succeed in their operations?
Md. Forhad Hossan: We have an extensive range of products that ensures customers receive top-quality solutions at competitive prices, backed by unparalleled technical support.
In addition, as SOKO is my Principal, we have a standby technical team to deliver support anytime and anywhere. Thus solving any issue the customer faces.
With a focus on upholding international standards, Pure Chemicals empowers the industry to achieve textile perfection, every time.
Hanif Spinning Mills Ltd. in Bangladesh achieved a remarkable 10% increase in its ring spinning productivity, thanks to a 50% reduction in doffing time and an impressive 80% decrease in yarn breaks during restart. Rieter After Sales solutions do not only improve performance but contribute to the sustainability of spinning mills.
Mohammed Hanif, Managing Director, Hanif Spinning Mills Ltd (Fig.1) said, “The guiding arm refurbishment and doffer kit solution offered by Rieter helps us increase productivity by 10%. It improves the working performance of the machine by reducing the operators’ intervention significantly. We are planning to implement these conversions for the remaining 26 ring spinning machines.”
Figure 1: Mohammed Hanif, Managing Director of Hanif Spinning Mills Ltd.
Hanif Spinning Mills Ltd. is renowned for its ability to consistently produce the best Ne 20 to 40 yarn in their segment in Bangladesh. The company has been running its ring spinning machines G 33 for over 20 years.
Due to the aging of the components in critical areas of drafting and doffing, the customer faced two major challenges that affected the machine’s performance and the operators’ efficiency, resulting in decreased production output. The first challenge was the load variation and random lifting of guiding arms which occurred due to key components that were worn out.
This led to quality inconsistency between spindles, undrafted roving, fiber lapping on top and bottom rollers and increased yarn breaks during running. To overcome this issue, the customer was forced to maintain a higher drafting load of above 2.6 bar.
A second challenge was the inefficient doffing cycle due to unwanted machine stoppages and manual intervention, resulting in reduced machine efficiency and an increase in restarting yarn breaks. The frequency of the doffer operation is higher due to the coarse yarn count being processed. Hence, the impact of the doffing cycle time is key to machine efficiency.
A solution with impact
The Rieter after sales team offered two solutions: the guiding arm refurbishment and the doffer maintenance kit. The guiding arm refurbishment consists of the pressure hose, top levers, pressure saddle and other technological components. This helps restore the original performance of the drafting system by ensuring a uniform load across the machine, resulting in stable drafting and consistent yarn quality.
The doffer maintenance kit consists of key doffer related components that help retain the doffing cycle time to its standard level of 180 seconds without any manual intervention.
Ensuring consistent yarn quality while increasing productivity
After the implementation of these maintenance kits on two machines (Fig.2), performance improved significantly. The guiding arm refurbishment enables load uniformity across the machine. Performance is ensured as all guiding arms are pressed evenly and the drafting pressure is maintained between the recommended 2.3 and 2.4 bar.
Figure 2: Guiding arm refurbishment and doffer maintenance kit on ring spinning machine for improved performance.
The doffer maintenance kit delivers the benefits of keeping doffing cycle time consistently low without any intermediate stoppages and always ensuring smooth doffing. To reduce the installation time, the doffer maintenance kit was delivered with pre-assembled parts. The implementation of these two solutions resulted in an increase of 10% in production due to the higher spindle speed and increased machine efficiency.
Figure 3: Impressive increase of machine performance after revision of guiding arm and doffer.
The spindle speed has been enhanced by 1 500 rpm because of the uniform drafting operations without any undrafted roving, without lapping and reduced restarting and running yarn breaks, which leads to raw material savings.
The doffing time has been reduced by around 50% and the restarting yarn breaks by around 80%, resulting in increased machine efficiency (Fig.3). Replacing worn-out and aged parts helped restore the original performance of the ring spinning machines.
This supports customers in optimizing the performance of their operations. It further contributes to the sustainability of spinning mills by extending the lifetime of Rieter machines.
Almost all factories have paid salaries and Eid bonuses to their workers, according to the Industrial Police.
In a notification on Tuesday (9 April) around 9:30pm, the police said almost 100% of the factories cleared the payments.
Earlier in the afternoon, they had informed that over 1,200 factories, including 400 garment factories, were yet to clear their March arrears.
The police, however, did not provide any information on how many factories have yet to pay their dues.
Though there were fears of unpaid salaries and Eid bonuses at the beginning of the month, there were no reports of major discontent towards the end, noted the police.
According to a Bangladesh Garment Manufacturers and Exporters Association (BGMEA) notification, all factories except one paid salaries and bonuses ahead of Eid.
The Ministry of Commerce has selected 184 businessmen as Commercially Important Persons or CIPs for the year 2022 for their significant contribution to the country’s export sector. The list of CIPs was released in a notification on Wednesday (April 3).
According to the notification, they have been selected by the government as per the CIP (Export) policy. Among the CIPs, 184 have been selected to contribute directly to the export sector. Among them 25 in Knitwear (Individual), 9 in Knitwear (Group), 7 in Textiles, 17 in Woven Apparel (Individual), 1 in Woven Apparel (group) and 4 in Home Textiles.
Others include 2 in Raw Jute category, 4 in Jute Products, 6 in Leather Products, 4 in Frozen Food, 5 in Agricultural Products, 5 in Agricultural Processed Products, 4 in Light Engineering products, 3 CIPs were selected in Pharmaceuticals category and 4 in Handicrafts category, 1 in Ceramic Products, 4 in Plastic Products, 1 in Furniture and Computer Software, Computer Services and Data Processing etc. And 2 people have been selected in the Service Category. Apart from this, 27 representatives of Miscellaneous Products category and representatives of five EPZ companies have become CIPs. Apart from this, 44 people have been selected from the representatives of Business Organizations.
CIPs in Woven Apparel
A.K. Azad, MD of Refat Garment; SM Khaled, MD of Snowtex Outerwear; Miran Ali, MD of Tarasima Apparels; Inamul Haq Khan, MD of Ananta Garments; Syed Rezaul Hossain Kazi, MD of Big Boss Corporation; Mesbah Uddin Khan, MD of Windy Apparels; Sharif Zahir, MD of Ananta Denim Technology; Shovan Islam, MD of Sparrow Apparels; Syeda Nasreen Azim, Chairman of Shinest Apparels; Md. Fazlul Haque, MD of Sterling Style; Tanveer Ahmed, Director of Cosmopolitan Industries; Muhammad Ayub Khan, MD of Debonair; Imranur Rahman, MD of Laila Styles; Wasim Rahman, MD of MBM Garments; Feroz Alam, Director of Tusuka Trousers; Mohammad Ismail Hossain, MD of Sharmin Apparels; Md. Khosru Chowdhury (MP), MD of Nipa Fashionware have been selected CIP in the category of Woven Apparel (individual). Apart from this, Goldstar Group Managing Director Md. Rezaul Hossain became CIP in Woven Apparel (Group) category.
CIPs in Knitwear
Mohammad Abdur Quader, Director of DBL Group, was awarded the CIP in the Knitwear (Group) category along with Nafis Sikder, MD of Nafa Apparels; Khalilur Rahman, Chairman of KDS Group; Ahmed Arif Billah, MD of Masco Group; Amal Podder, MD of Metro Knitting and Dyeing Mills; Mohammad Ghulam Faruq, Chairman of SQ Group; Sultana Jahan, MD of Starlight Group; ABM Shamshuddin, MD of Hannan Group and Mirza Md. Jamshed Ali, MD of Ritzy Group.
In Knitwear (Individual) category, the selected CIPs are; Shamsuzzaman, MD of Liberty Knitwear; Md. Golam Mustafa, MD of GMS Composites; Tapan Chowdhury, Director of Square Fashions; Fakir Moniruzzaman, MD of Fakir Apparels; Fakir Akhtaruzzaman, MD of Fakir Knitwears; Reaz Uddin Al-Mamun, Chairman of Epyllion Style; Zhuang Lifeng, MD of Liz Fashion; Asma Begum, Director of Pioneer Knitwears; Md. Zubayer Mondal, Director of Cotton Club; Asif Ashraf, MD of Fakhruddin Textile Mills; Masuduzzaman, MD of Model De Capital; Nabeel Ud Daulah, MD of Dird Composite Textiles; Mesba Faruqui, MD of Multifabs; Mofizul Islam, MD of MM Knitwear; Gauhar Siraj Jamil, MD of Divine Intimates; Moklasur Rahman, MD of Meghna Knit Composite; Nazim Uddin Ahmed, Chairman of Interstoff Apparels; Abdul Qadir Mollah, MD of Aduri Apparels; Mizanur Rahman, MD of Fabrica Knit Composite; Najib Malek Chowdhury, MD of Graphics Textiles; Robin Rajan Sakhawat, MD of Comptex Bangladesh; Momena Khatun, Director of Alim Knit; Mohammad Salman, MD of Taqwa Fabrics; M Ishfaq Ahsan, Director of Ahsan Composites and Su Lijing, Chairman of Lida Textiles & Dyeing.
Selected CIPs for next one year will get pass and car sticker to enter Bangladesh Secretariat. Apart from this, they will get invitations to national events and civic receptions, priority seat reservation in air, rail, road and water while traveling for business purposes and use of VIP lounges at the airport. CIPs will get special facilities in government hospitals for treatment of their wives, children and themselves. The Ministry of Foreign Affairs will issue a ‘Letter of Introduction’ for them in case of traveling abroad.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said all garment factories in the country have successfully paid salaries and bonuses before the Eid holidays.
“The factories have paid March salaries and Eid bonuses. To our knowledge, every worker has received their dues without exception,” BGMEA president SM Mannan Kochi said at a press briefing held at the BGMEA office in the capital today (10 April).
“This Eid, we had to pay bonuses as per the updated wage framework, which was a challenging task for many factories. Despite the odds, owners tried their best to clear the salaries and bonuses before Eid. Many even made personal sacrifices,” he said, extending appreciation to the entrepreneurs for their dedication.
The BGMEA chief also thanked Prime Minister Sheikh Hasina for her guidance, along with the home minister, law minister, and law and order forces for their cooperation.
In terms of ensuring timely payments, the BGMEA chief outlined the proactive measures taken in collaboration with the government.
These included monitoring sensitive factories well in advance of Eid to facilitate 100% salary disbursement. With the assistance of 22 monitoring teams comprising 50 individuals.
“We received a list of approximately 600 sensitive factories from various sources, including intelligence agencies, industrial police, and BGMEA’s own sources. A month before Eid, we started monitoring these factories.
“While monitoring, some labour-related issues were identified in 25 factories, all of which have since been addressed. As a result, 100% of the factories were able to pay March salary and Eid bonus,” he added, noting that he is grateful to labour leaders for their cooperation throughout the process.
He further highlighted that all the factories have granted Eid leave to workers so they can return home with their earnings.
SM Mannan Kochi urged the government to enhance vigilance to prevent accidents during Eid.
Branches of banks in garment industry-related areas remain operational on public holidays, as requested by BGMEA, to facilitate timely payment of salaries and bonuses to RMG workers before the upcoming Eid-ul-Fitr.
The BGMEA president expressed gratitude to the governor of Bangladesh Bank and all scheduled banks for their cooperation in this regard.
“We extend our thanks to the central fund for providing full support,” he added.
Reflecting on the industry’s challenges, SM Mannan Kochi asserted that the country’s apparel industry is going through a critical time.
He said, “Over the last five years, our production costs have surged by nearly 50%, while bank interest rates have soared to 13%-14%. Additionally, wages have spiked by 56% since January.
“Despite these challenges, we’re facing difficulty in receiving fair prices for our products. Instead, prices have dropped by 6%-18%. In this situation, many factories are compelled to accept orders at discounted rates merely to sustain operations.”
He added, “This Eid, we have to give bonuses according to our new wage structure, which has created a difficult situation for many factories. Despite numerous adversities, entrepreneurs have made all-out efforts to pay salaries and bonuses before Eid, with many making personal sacrifices.”
Mentioning that BGMEA collaborated with the government to ensure workers receive their wages and bonuses before Eid, Kochi said, “We have received a list of around 600 factories from intelligence agencies, industrial police, BGMEA, and other sources. Accordingly, we started monitoring these factories a month before Eid to ensure 100% payment of wages and allowances.
In response to another question, whether they are members of BGMEA in Tuesday’s protest, Kochi said, “Workers of Goldstar Garments in Dhaka protested on Tuesday. At 3:30am, in the presence of the local parliament member and chairman, the salary and bonus were paid to the remaining workers.
“Yesterday, we gave salaries and bonuses to 99% factories. Today we have not received any complaints.”
“We have given salaries and bonuses to 2,230 factories including Dhaka and Chattogram. We have 3,200 factories. So, there are hundreds of thousands of members beyond BKMEA and our members. If there is a labour strike outside of our membership, it brings the country into disrepute,” he added.
Replying to the question, out of 3,200 factories, why salaries and bonuses were given to 2,230 factories, He said, “Some of our garment factories do not have utilisation declaration (UD). It means business is running and the rest are sub-contracted, and some are closed.”
The garment sector in Sri Lanka has developed into a significant component of the country’s economy, in addition to being responsible for the creation of a significant number of jobs and the generation of cash from exports. Over the course of time, the sector has seen substantial growth and transformation, and it has emerged as a dominant player in the garment market on a worldwide scale.
There has been a considerable impact that technological developments have had on the Readymade Garment (RMG) business in Sri Lanka. The manufacturing process has been radically transformed because of technological advancements in a variety of areas, including automation, digitization, and technology. These advancements have improved sustainability, quality, and efficiency. It is necessary for Sri Lankan garment manufacturers to adopt these technologies to maintain their competitiveness in the global market. These technologies enable them to meet the demands of fast fashion while simultaneously adhering to standards that are both moral and ecologically responsible.
This article will investigate the improvements that technology has brought to the RMG industry in Sri Lanka, including the enhancement of worker well-being and sustainability, as well as the enhancement of productivity and quality. By investigating these consequences, we will be able to get a comprehensive understanding of the ways in which technology will impact the future of the garment business in the country.
There have been significant technical advancements made in the apparel business of Sri Lanka. These advancements include the implementation of digital platforms for marketing and sales, the utilization of data analytics for demand forecasting, and the automation of production processes.
Automation improves both productivity and quality while simultaneously reducing the amount of human labour that is required, which in turn makes the garments produced in Sri Lanka more competitive on the global market. Businesses can manage inventory levels, decrease stockouts, and swiftly adjust to evolving market needs owing to data analytics. This is accomplished through the examination of historical sales data, trends in the market, and preferences of consumers. This results in a reduction in waste and an increase in profitability since the output is matched with the demand from customers.
E-commerce websites, social media marketing, and online marketplaces are examples of digital platforms that have contributed to an expansion in the reach of apparels produced in Sri Lanka. The promotion of items, interaction with customers, and facilitation of direct sales are all made possible through these platforms at a more affordable cost. This shift toward digital marketing not only raises the awareness of the brand, but it also opens other prospects for growth that would not have been available through traditional export channels. The evolution of these technological improvements is still influencing the sector’s performance as well as its capacity to remain sustainable.
The garment business in Sri Lanka has benefited from technological improvements in a variety of keyways. To begin, the inclusion of automation into industrial processes has resulted in increased production processes that are both more productive and efficient.
The use of automated machinery and robots helps to simplify production lines, which in turn reduces the amount of time and amount of labour that is required to make garments. This boosts the industry’s competitiveness in the global market by accelerating the production cycle and ensuring that the quality of all items remains consistent across the whole manufacturing spectrum. In the second place, the utilization of data analytics in demand forecasting has resulted in a significant improvement in the precision with which market trends and inventory management operations are anticipated.
By optimizing their production schedules and inventory levels through the study of historical sales data and customer behaviour, RMG companies may minimize the amount of waste they produce and the number of stockouts they experience. Because of this, reductions in expenditures and improvements in operational efficiency are achieved. In conclusion, the utilization of digital marketing channels has resulted in an increase in the reach and visibility of the RMG product that is produced in Sri Lanka. Businesses now can showcase their collections to a more extensive audience all around the world because to the proliferation of online marketplaces, social media marketing, and e-commerce platforms.
This makes direct sales simpler and offers extra growth options outside of the normal export channels. In addition to enhancing brand awareness, this also makes direct sales easier through this. In conclusion, the advantages of technological improvements, which include improved demand forecasting, increased productivity, and greater market penetration through digital channels, are essential to the profitability and long-term survival of the apparel business in Sri Lanka.
The introduction of technology in Sri Lanka’s garment business comes with a few problems, albeit boasting a multitude of benefits. The high initial costs associated with integrating cutting-edge technology constitute a substantial barrier against their implementation. There are a lot of companies that might not be able to afford the initial financial expenditure that is required for automation, digital technology, and data analytics. This is especially true for firms that are smaller or medium in size. Certain businesses could be prevented from adopting new technology to the greatest degree feasible due to the cost barrier, which would result in a reduction in their ability to effectively compete on a global scale.
An additional barrier is the reluctance to deviate from the procedures that are considered to be traditional. It is possible that workers who are accustomed to conventional production processes will be anxious and hesitant to make the transition from manual labour to automated operations. It is possible that this opposition will act as a barrier, given that the successful adoption of new technology requires a shift in the way that workers think, and the skill set that they possess. In addition, there are significant concerns surrounding the prospect that automation would result in the loss of jobs. Despite the fact that technology boosts production and efficiency, it also raises worries about the employment opportunities available in the business. There is a possibility that tensions may emerge, and the fear of losing one’s job may be a barrier to the adoption of new technologies.
Because the government of Sri Lanka is aware of the significant impact that technology has on the RMG industry, it has taken a proactive approach to promoting the utilization of technology. Providing financial incentives to companies that make investments in technology is one example of such an approach. It is possible that these financial aids will take the shape of grants, tax credits, or subsidies to assist in covering the initial costs associated with the implementation of contemporary technology. Additionally, in order to foster innovation, the government has fostered collaboration with various actors in the business. In order to achieve its goal of establishing an environment that encourages the development and implementation of innovative technologies within the RMG industry, the government is working closely with manufacturers, technology suppliers, and academic institutions to accomplish this goal. Additionally, the government has been implementing training programs to improve the technological capabilities of workers. These programs are designed to provide workers with the knowledge and skills necessary to operate and maintain contemporary technology. Their primary objective is to do this. Through the provision of financing for workforce development, the government intends to keep the sector competitive and make sure that workers are prepared to meet the shifting requirements of a technology-driven economy.
To summarize, the apparel business in Sri Lanka has reaped significant benefits from the implementation of technology, which has resulted in increased production, improved forecasting, and expanded market penetration. However, there are challenges. These challenges include expensive initial costs, resistance to change, and concerns about the loss of jobs. To be successful in overcoming these challenges, stakeholders need to understand how important it is to continue financing technological advancements. Measures taken by the government, such as worker training programs, industry stakeholder participation, and incentives for technology adoption, are of tremendous assistance to the advancement of technology. In the future, it is very necessary for all parties concerned, including corporations, the government, and employees, to acknowledge and adapt to the technological developments that are occurring. As a result of this action, the RMG sector in Sri Lanka has the potential to remain robust, competitive, and sustainable within the framework of the global market.
