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Epic Group to enter Envoy Textile board

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RMG Bangladesh
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Epic Garments Manufacturing Company Limited – a sister concern of the Hong Kong-based Epic Group – is set to join the board of the listed Envoy Textile Limited.

Epic, which manufactures ready-made garment products in Bangladesh through a joint venture with the Sheltech Group, owns a 2.65% stake in Envoy Textile as an institutional shareholder.

In a price-sensitive information regarding its upcoming annual general meeting (AGM), Envoy announced that the board recommended Sunil Daulatram Daryanani, nominated from Epic Garments, as a candidate for election to the position of director, subject to the availability of a vacancy.

According to the price-sensitive information, the application for candidacy submitted under Article 127.1 of the company’s articles of association was approved with conditions.

Envoy Textile states that the AGM will be held on 28 March, where, with the permission of the general shareholders, three directors will be elected, audited financials for 2022-23 will be approved, dividends will be declared, and other issues will be addressed.

According to information sent to its shareholders, for decades, Epic Group has been a cornerstone of the apparel industry, evolving from a textile trading house to a leader in sourcing quality fabrics.

Since 2005, it has operated as a state-of-the-art manufacturing company with facilities spanning Bangladesh, Jordan, Vietnam, and Ethiopia.

According to the website of the Bangladesh Garment Manufacturers and Exporters Association, Epic Garment Manufacturing was established in 2008, and its factory is located at Adamjee Export Processing Zone.

The principal export products of Epic Garments are bottom pants, denim jeans, and bottom shorts.

Kutubuddin Ahmed, managing director of Epic Garments, also serves as the chairman of Envoy Textile.

In the first half of fiscal 2023-24, its revenue grew to Tk690.95 crore, and it reported a profit of Tk24.27 crore. In the fiscal 2022-23, it reported a revenue of Tk1,109.49 crore, which is down by 10.54% from the previous fiscal year.

While its profit stood at Tk32.73 crore, significantly down from Tk50.13 crore in the fiscal 2021-22. It has recommended a 15% cash dividend for its shareholders, which will be approved at the upcoming AGM by shareholders.

Previously, a legal battle over supremacy at Envoy Textiles Limited, which is the world’s very first LEED-certified platinum denim mill, began in 2022 after the separation of Kutubuddin Ahmed from Envoy Textiles’ parent company, Envoy Group.

The legal saga commenced in June 2022 when Abdus Salam Murshedy contested a potential cessation of his position as managing director of Envoy Textile.

Subsequently, the High Court appointed Tanvir Ahmed as the company’s new managing director and Shehrin Salam Oishee as deputy managing director, subject to obtaining shareholders’ approval by conducting an EGM.

Shareholders of Envoy Textiles approved the appointment of a managing director for the company at the EGM held at the Gulshan Shooting Club on 2 March.

On 25 March, Envoy Textile’s shares closed at Tk36.70 each at the Dhaka Stock Exchange.

Another RMG factory gets LEED Gold certification

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RMG Bangladesh
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Another garment factory in Bangladesh has earned Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC).

APS Knit Composite Limited located in Kamargaon, Pubail, Gazipur achieved the Gold LEED certification by USGBC with 71 points.

This brings the total number of LEED-certified factories in Bangladesh to 214, with 80 achieving the Platinum status and 120 attaining Gold status.

So far this year, 8 RMG factories earned the LEED certification, of which 4 are platinum and 4 are gold.

The country has been receiving the certificate since 2001.

The council honours factories based on several criteria such as transformation performance, energy, water, and waste management. The best performers are rated with platinum, followed by gold and silver.

BGMEA President Faruque Hassan said, “This is a testament to the dedication of our member factories who continuously strive for eco-friendly practices. By embracing sustainable methods, we’re not only protecting our environment but also creating a significant competitive advantage for our industry.”

“This accomplishment further solidifies Bangladesh’s position as a global leader in sustainable garment manufacturing,” he added. 

Sweden to widen trade relations with Bangladesh’s garment industry: Swedish minister

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RMG Bangladesh
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Sweden will expand its trade relations with Bangladesh’s export-oriented garment industry, visiting Swedish Minister for International Development Cooperation and Foreign Trade Johan Forssell said today (21 March).

The Swedish minister expressed the interest while visiting a garment factory, Fakir Apparels, in Narayanganj this afternoon. Sweden Ambassador in Bangladesh Alexandra Berg von Linde accompanied the Swedish minister.

During the visit, the Swedish minister and ambassador expressed satisfaction with the working environment of the garment factory.

They also assured to address all issues faced by the export-oriented factories, emphasising that collaboration among all stakeholders is key to resolving these problems.

Fakir Nafijuzzaman, deputy managing director of Fakir Apparels, said the inspecting team inquired about the challenges industrial establishments face in apparel production, the policy support required, and the specific challenges encountered.

“We briefed them on GSP status and highlighted the importance of support from foreign buyers and the necessity of price increase in apparel items from buyers,” he added.

US national apparel trade association urges Bangladesh to stop detention of RMG workers

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RMG Bangladesh
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The American Apparel and Footwear Association (AAFA), the US national trade association representing apparel, footwear and other sewn products companies, has called on the Bangladesh government to stop detaining readymade garment (RMG) workers who were involved in labour protests demanding a minimum wage hike last year. 

AAFA President and Chief Executive Officer Stephen Lamar made the call in separate letters to Prime Minister Sheikh Hasina and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) outgoing President Faruque Hassan on Monday (18 March).

“I am reaching out to seek BGMEA’s support of AAFA’s repeated calls to halt the ongoing detention, as well as the continued threat of detention, facing thousands of workers linked to the protests in Fall 2023,” Stephen Lamar wrote.

“As we have stated before, I also urge BGMEA to request the Bangladesh government to conduct a thorough investigation and ensure accountability for those implicated in the violence that resulted in fatalities and injuries among protesting workers.

“However, it is with deep concern that I must urge BGMEA to join our calls for the Bangladesh government to release all those who were arrested during the protests and to withdraw all criminal charges,” he added.

“We are concerned over criminal charges brought against labour organisers, such as Jewel Miya, who was arrested for advocating for higher wages,” Lamar said.

The AAFA president urged Faruque Hassan and its members to withdraw all first information reports lodged against the workers to remove any further threats of arrest against thousands of workers and prevent future harassment.

Lamar hoped the BGMEA would continue to make significant strides to ensure workers’ welfare.

“In turn, these efforts will only strengthen and grow our mutually beneficial partnership,” he stated.

The AAFA represents more than 1,000 famous brands, which collectively clock more than $490 billion in annual US retail sales.

Speaking to The Business Standard about the letter, Faruque Hassan acknowledged getting the letter.

He said BGMEA would need the names of the workers against whom a claim of detention and a threat of custody has been made to take action in this regard. 

A request has been made in this regard, he noted.

He further said there were some police cases against the workers for alleged involvement in the protests, which have already been withdrawn.

“Besides, the BGMEA has already directed its member factories not to take into account minor incidents.

“However, in the cases where workers who were found to be involved in vandalising and looting factories, beating up senior officials, the owners may choose to continue the police cases,” he added.

In December 2023, the minimum wage for the RMG sector was increased to Tk12,500 in the face of protests by workers across the country. They had demanded a minimum wage range between Tk23,000 and Tk25,000.

US Cotton Trust Protocol expands field team to support growers

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RMG Bangladesh
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In order to offer US cotton growers taking part in the voluntary Climate Smart Cotton Programme more specialised and localised support, the US Cotton Trust Protocol is expanding its field-level workforce.

Field-level growers will receive assistance from the enlarged US Cotton Trust Protocol team with completing their Trust Protocol enrollment, data input, and application processing for the Climate Smart Cotton Programme, which ends on 30th April.

In addition to offering industry information and networks, the field-level grower enrolment specialists will tailor their services to meet the specific requirements of the cotton belt region they service.

Alongside Tillman White, who will serve as the programme manager, Charles “Chaz” Holt, director of field programmes, will serve as the team’s leader.

“Each region of the cotton belt presents its own distinct set of opportunities and challenges, with no one-size-fits-all approach to production,” said Daren Abney, executive director of the US Cotton Trust Protocol.

The Climate Smart Cotton Programme was launched in 2023 and is now accepting applications until midnight on April 30, 2023. It provides financial and technical assistance to reduce risks related to climate smart agriculture practices, which may lead to cost savings and increased efficiency. It intends to enhance reporting and make it easier for companies and retailers to reduce their greenhouse gas emissions.

Almost 1.7 million planted cotton acres, or nearly a quarter (23 per cent) of the cotton belt, were included in the Trust Protocol for the 2023 crop year. Growers who finished their enrolment in 2023 will need to re-enroll for the 2024 crop year, according to the Trust Protocol.

Out of the 1,650 farming businesses available, the Climate Smart Cotton Programme is reported to have already approved 778 applications, including 330 from previously underserved communities.

More than 95% factories will pay wages before Eid

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RMG Bangladesh
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Eid-ul-Fitr, the biggest religious festival of Muslims, is expected to be celebrated on 10 or 11 April, depending on the sighting of the moon. Before Eid more than 95% factories will pay wages and bonus to the workers.

The number of factories in the area under the jurisdiction of the Industrial Police is 9,467. Apart from this, there are also factories in the area under the jurisdiction of Dhaka Metropolitan Police.

Figure: More than 95% factories will pay wages before Eid.

Of them, 416 factories are likely to face problems in paying wages and bonuses to their employees before Eid-ul-Fitr, according to a list prepared by the Industrial Police. 

According to sources, of the factories, 171 are member factories of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 71 are members of the Bangladesh Knitwear Manufacturers Association (BKMEA) and 29 are members of the Bangladesh Textile Mill Association (BTMA).

Regarding this issue, on 25 March, the Industrial Police held a meeting to discuss preparations for preventing any undesired problems regarding the payment of RMG workers’ salaries and Eid bonuses.

In a press statement issued after the meeting, the Industrial Police said, “If the owner of a garment fails to pay the salary and other allowance, we request that they find an alternative.”

Chief of Industrial Police Mahabubor Rahman said, “The list we have prepared might increase or decrease in the coming days. We are alert, we hope there will be no problem before Eid.”

Mohammad Hatem, Executive President of BKMEA said “Many factories do not have enough purchase orders. In addition, the Bangladesh Bank has not yet released a significant number of incentives. Due to this, some factories are facing problems paying salaries and bonuses.”

Faruque Hassan, outgoing president of BGMEA told TBS, “There is an impact of the increase in wages of RMG workers last December. At the same time, the facility of incentives has been reduced. Due to these reasons, it may be difficult for many factory owners to pay bonuses before Eid.”

Earlier on 20 March, State Minister for the Labour and Employment Ministry Nazrul Islam Chowdhury said, “Readymade garments (RMG) workers will get their salary for March and Eid bonuses before the Eid-ul-Fitr holidays.”

In addition, before Eid, the Department of Labor, the Department of Inspection for Factories and Establishments, the industrial police, and intelligence agencies will work together to make sure everything runs smoothly in this nation’s biggest export industry, he added.

416 factories likely to miss payment of salary and bonus before Eid: Industrial police data

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RMG Bangladesh
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At least 416 factories are likely to face problems in paying wages and bonuses to their employees before Eid-ul-Fitr, according to a list prepared by the Industrial Police. 

According to sources, of the factories, 171 are member factories of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 71 are members of the Bangladesh Knitwear Manufacturers Association (BKMEA) and 29 are members of the Bangladesh Textile Mill Association (BTMA).

The Industrial Police held a meeting on Monday to discuss preparations for preventing any undesired problems regarding the payment of RMG workers’ salaries and Eid bonuses.

In a press statement issued after the meeting, the Industrial Police said press release after the meeting said, “If the owner of a garment fails to pay the salary and other allowance, we request that they find an alternative.”

Chief of Industrial Police Mahabubor Rahman told The Business Standard, “The list we have prepared might increase or decrease in the coming days.”

“We are alert, we hope there will be no problem before Eid,” he added.

Mohammad Hatem, executive president of BKMEA told TBS, “Many factories do not have enough purchase orders. In addition, the Bangladesh Bank has not yet released a significant amount of incentives. Due to this, some factories are facing problems paying salaries and bonuses.”

He also said, “In reality, more factories are in financial crisis than the list given by the Industrial Police. But we are continuing to try to resolve it.”

Faruque Hassan, outgoing president of BGMEA told TBS, “There is an impact of the increase in wages of RMG workers last December. At the same time, the facility of incentives has been reduced. Due to these reasons, it may be difficult for many factory owners to pay bonuses before Eid.”

Meanwhile, Zahidul Islam Siddique, managing director of Oishi Desigb Limited, located in Savar’s Ashulia area, which is on the Industrial Police list, told TBS, “There is no problem in our factory. We have no dues. I don’t know why is our factory name on the list.”

The number of factories in the area under the jurisdiction of the Industrial Police is 9,467. Apart from this, there are also factories in the area under the jurisdiction of Dhaka Metropolitan Police.

Intertek authorised to conduct Better Cotton Chain of Custody audits

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RMG Bangladesh
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ntertek’s Better Cotton auditing services are described as serving as a key support system for various segments of the supply chain.

These include farmers, ginners, merchants, middlemen, traders, mills, manufacturers, sourcing agents, retailers, and brands involved in cotton procurement or engaged in fulfilling Better Cotton Mass Balance orders.

The Better Cotton Chain of Custody standard is a framework aimed at capturing an extensive spectrum of route-to-market data. It enables brands to track their cotton products from their origin countries to the final clothing rail.

“We are pleased to extend our services in sustainability and ethical sourcing auditing to include Better Cotton’s Chain of Custody audits and verification,” said Calin Moldovean, president of Intertek business assurance.

“Through our Better Cotton auditing services, we aim to empower all stakeholders throughout the cotton supply chain to achieve the highest standards of production and sourcing of ethical, traceable and sustainable cotton. This commitment aligns with our mission to bring quality, safety and sustainability to life, ensuring our partners benefit from our science-based and forward-thinking auditing experience.”

Euratex applauds EU’s innovation-driven ‘Textiles of the Future’ initiative

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RMG Bangladesh
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The “Textiles of the Future,” a project co-managed by the EU Technology Platform for Future of Textiles and Clothing (ETP), intends to solve the green and digital transition. The European Commission has launched nine new EU co-funded and co-programmed partnerships.

As to the EU Commission, the ETP “stands ready to bring that partnership into reality” by leveraging its extensive innovation network and profound expertise in textile research to support the Textile of the Future programme.

The Commission’s decision to start this cooperation, according to the European Apparel and Textile Confederation (Euratex), comes at a critical moment and will provide essential support to the 200,000 EU textile companies that are working to remain competitive.

In recent years, Euratex has advocated for similar collaborations, stating that it considers innovation to be a vital element in the effective execution of the EU Strategy for Sustainable and Circular Textiles.

The Commission’s most recent innovations, unveiled as part of the EU Research and Innovation Days, are essential to the Horizon Europe Strategic Plan 2025–2027, which seeks to advance the digital and green transition and build a more resilient, competitive, inclusive, and democratic Europe.

Euratex’s Director General Dirk Vantyghem commented: “Innovation is the bridge between sustainability and competitiveness. This Horizon Europe Partnership is therefore an essential tool which will help our companies to become global leaders in sustainable textile products.”

Report: 92% RMG workers without formal contracts

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RMG Bangladesh
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With the majority of workers lacking formal contracts, a new international study revealed the extensive use of informal practices within readymade garment (RMG) supply chains in Bangladesh, Pakistan and India.

In Bangladesh, as many as 92% workers were found employed without any written contracts, according to the study conducted by the Asian Floor Wage Alliance (AFWA).

The rate is 90% in Pakistan and 65% in India, according to the report titled “Threaded Insecurity: The Spectrum of Informality in Garment Supply Chains.”

These informal working arrangements make it cheaper for employers to hire workers, who often receive lower wages and lack essential benefits like health care or paid leave, according to the report published on March 7.

These workers can be easily fired at the employer’s discretion, it also noted.

By focusing on Bangladesh’s 92% of workers without contracts, the report particularly sheds light on the vulnerability of women who are often excluded from essential labour protections.

This lack of formal contracts denies them benefits and exposes them to a greater risk of rights violations, gender-based violence and harassment, it added.

The AFWA, founded in 2007, is an Asian-led alliance working across garment-producing countries and consumer regions.

The report, based on research conducted between 2020 and 2024, focuses on a critical issue: informal employment within the formal sector.

This research involved collaboration with 23 trade unions and labour organizations across six countries: Bangladesh, Cambodia, India, Indonesia, Pakistan and Sri Lanka.

The report identified that lead firms held more power than supplier factories and the workers who produce their garments.

Fast fashion lead firms choose to maintain unstable relationships with supplier firms, allowing them to bargain for shorter lead times at ever lower prices, the report mentioned.

To meet these demands for speed and lower costs, garment factories increasingly rely on informal employment practices. This involves hiring contract labour and temporary workers, creating a vulnerable workforce susceptible to exploitation, it said.

The report detailed these practices from employing workers without contracts to outsourcing to unregistered production facilities and home workers.

In Bangladesh, registered garment factories are supplied with subcontracted orders by unregistered production facilities.

These facilities operate without formal oversight from the government or brands, said the report, adding, trade union and civil society representatives from Bangladesh reported high production targets, low wages and extreme difficulty forming unions in these unregistered facilities.

Across Bangladesh, Pakistan, India, Indonesia and Cambodia, only 15% of women interviewed retained their jobs when the Covid-19 pandemic disrupted production networks. Some 43% were laid off and 36% were terminated. An additional 1% resigned.

In comparison, 33% of male workers retained their jobs, with 43% laid off and 24% terminated, according to the study report.

The report also recommended collaboration with unions and industry representatives. This collaboration is crucial for negotiating acceptable ratios of formal to informal workers and defining productivity targets to combat excessive workload intensification.

Base pricing for lead firms should consider statutory wages, benefits and entitlements. It should also factor in maintaining ethical standards established through negotiations between trade unions, worker organizations, supplier associations, lead firms and representatives from production countries.

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Ready Made Garments sector is the key source of foreign currency and GDP for Bangladesh. Approximately 4.2 million people are dependent on the RMG sector for their bread and butter.
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