H&M to raise apparel sourcing from BD

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H&M to raise apparel sourcing from BD
B&F Report

A Sweden-based clothing retailer Hennes & Mauritz (H&M) has announced to increase its sourcing from Bangladesh, said Dow Jones Newswires quoting H&M Head Helena Helmersson. It also intends to launch a trial programme for the current and next year, the news agency stated.

H&M head said they have already informed the Bangladesh Government, its other stakeholders and clothing producers regarding their growth plans. However the ongoing labour unrest in the country is restraining suppliers from planning production, as strikes and protests often hamper production and cause delays, she added.

She said that a stable market would prove to be greatly beneficial for the company as well as its suppliers and workers.

The firm intends to utilize its power to build pressure on its suppliers in Bangladesh to improve work conditions, and push for constitution of democratic labour committees that can negotiate with factory workers on wages and working conditions.

Operating a network of more than 2,500 retail outlets in 44 markets across the world, with a staff of 94,000 people, H&M is a leading buyer of garments from Bangladesh. It currently sources around 25 percent of its products from Bangladesh and it intends to raise this volume in future.

Bangladesh has now emerged as a reliable readymade garment-sourcing destination for leading global retailers, due to its competitive prices.

A recent study undertaken by McKinsey, a leading research company in US, states that Bangladesh’s apparel exports are expected to grow almost two-fold by 2015 and three-fold over the next 10 years. This is because leading buyers from China are shifting to Bangladesh as capacity constraints and rising labour costs in China are eroding their profit margins.

RMG exports may grow 15pc in FY12

http://www.theindependentbd.com/business/others/88030-rmg-exports-may-grow-15pc-in-fy12.html

RMG exports may grow 15pc in FY12
Author / Source : Staff Reporter

Dhaka, Jan 3: Readymade garment (RMG) exports are likely to grow by around 15 per cent this fiscal year (FY), compared to the volume a year earlier, experts say.
Export Promotion Bureau data on July-November exports show that the country’s overall exports have grown by 18 per cent year-on-year against the 40 per cent growth a year ago. In July 2011, exports rose by 28.7 per cent, followed by a rise by 32.4 per cent in August. However, the growth rate declined to 2.29 per cent in September, 15.44 per cent in October and 2.4 per cent in November.

Shubhashish Bose, vice chairman of EPB, told fibre2fashion website, “Bangladesh’s export target for FY 2011-12 is $26.5 billion, and from July to November 2011 we exported $9 billion worth RMG. We hope we will be able to achieve our targets.”

RMG sector constitutes about 70-80 per cent of Bangladesh’s total exports, he added.

Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), told fibre2fashion, “The exceptional growth rate of 40 per cent was registered because of rising global demands.

But, such high rate cannot be expected every year.

Considering this, 18 per cent growth is remarkable.”

Rahman also said prices of raw materials, i.e. cotton and yarn, have come down by 50-60 per cent compared to the last year, which resulted in lower price level and margin.

In light of these factors, the growth rate can be termed “significant”. “The demand in the US and Europe market was lower. But there were some shifting orders from China and India has also offered zero tariff access. All these factors favoured exports,” he told the website.

Rahman said that it is uncertain how the Eurozone crisis will develop and whether it will degenerate in recession, but predicted an overall growth. “I foresee a double digit growth rate with the overall growth at around 14-15 percent this fiscal,” he said.

Bose said Bangladesh mainly exports basic apparels, which are not high-value but basic necessities.

“Even if there is recession in Europe or the US, people will buy these apparels. Bangladesh can look forward to a double digit growth and achieving the export target,” he said.

GARMENTECH expo begins Jan 12

http://www.theindependentbd.com/business/others/87881-garmentech-expo-begins-jan-12.html

GARMENTECH expo begins Jan 12
Author / Source : STAFF REPORTER

DHAKA, Jan 2: The four-day 11th edition of country’s premier apparel machinery and technology trade show GARMENTECH Bangladesh 2012 will start in the capital from January 12.

Accommodating over 750 booths, the trade show for garment machinery, yarn and apparel fabrics, garment accessories and packaging machinery will be organised at the Bangabandhu International Conference Centre. Finance minister Abul Maal Abdul Muhith is expected to inaugurate the show.

It was announced at a press conference organised by the trade show’s organiser ASK Trade and Exhibitions Pvt. Ltd at the National Press Club on Monday.

Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association president Rafez Alam Chowdhury, spoke at the press conference, among others.

Exporters ride past global downturn

http://www.thedailystar.net/newDesign/news-details.php?nid=215835

Ready Made Garments
Exporters ride past global downturn

Workers are pictured at a garment factory in Gazipur. Apparel buyers look to Bangladesh as a future sourcing hotspot as orders are moving out of China. Photo: Amran Hossain

Refayet Ullah Mirdha

Bangladesh exports survived the global financial crisis in 2008, helped by basic garment products. In the following years, the country’s ready-made garment exports weathered out fallout from the global recession and grew nearly 42 percent in fiscal 2010-11.

The growth rate was highly appreciated at a time when the world was in economic pain; Bangladesh was one of the few countries that witnessed exports in the positive territory.

At the same time, the country turned into the world’s second largest apparel supplier, after China. Garment exports stood at $17.91 billion in fiscal 2010-11, taking up more than 78 percent of overall exports.

Of total apparel exports, knitwear accounted for $9.49 billion, while woven was $8.43 billion in fiscal 2010-11.

In the first five months (July-November) of the current fiscal year, Bangladesh exported knitwear goods worth $4.0 billion and woven garments worth $3.57 billion.

However, exporters are predicting a double-dip recession for the debt crisis in the EU, which might hurt the growth of exports to the Eurozone, the largest garment export destination for Bangladesh.

Exporters aim to achieve apparel exports above targets, beating the debt crisis, riding on exports to new destinations — Japan, South Africa, Russia, Brazil, Chile, Mexico, New Zealand, Australia and India.

Moreover, product diversification and arrival of high-end customers like Adidas, Hugo Boss, Tommy Hilfiger, s.Oliver, Olymp and Next will play a positive role in helping exports grow above the target for 2012.

Having enjoyed a significant rise in exports in fiscal 2010-11, the commerce ministry set the target higher at $20.36 billion — knitwear garments at $10.80 billion and woven products at $9.56 billion.

Garment makers said export growth depends on the adequate supply of gas and power, a pool of skilled manpower for mid-level management and efficiency in port management and good infrastructure.

Exporters also often complain about the frequent hikes in petroleum prices, higher transportation costs, traffic congestion, workers’ unrest, soaring inflation, and internally, the list is seemingly unlimited.

Along with the internal factors, some external factors that may affect garment exports are the European debt crisis, proposed duty-waiver facility for 75 Pakistani products to the EU, higher prices of raw materials like cotton and yarn, and different tariff, para-tariff and non-tariff barriers to new export markets like India and Russia.

The year 2012 will be a determining period to grab the exporter orders shifting from China, the largest exporter of apparels globally, as countries like Bangladesh, Vietnam, Indonesia and Cambodia are likely to be benefited.

China is losing its market to competitors for higher costs of production and a shortage of workers in the sector.

Bangladeshi garment exporters are eyeing to be the number one supplier in the coming years, although the country does not have basic raw materials and machinery backup.

In the beginning of the year, EU-relaxed the Rules of Origin (RoO) under the Generalised System of Preferences (GSP) from January 1 — it became a boon for garments and a bane for the primary textiles sector.

Similarly, Japan, Norway and Switzerland also relaxed the RoO for the least developed countries (LDCs) in the beginning of the current calendar year.

In February-April, cotton and yarn prices went up to record levels at $2.35 a pound and yarn at $7.0 a kilogram.

In the middle of this year, Bangladesh bagged a duty-free entry for garment products to India. The opened a window of opportunity for local apparel makers.

In October, the US again granted a GSP facility to its market for some selected products, like sleeping bags, at the end of September.

Both the primary textiles sector and RMG sectors witnessed a sluggish investment trend in 2011, mainly for the inadequate supply of gas and power. Many industrial units cannot go into operations for the lack of gas and power connections.

The government announced an additional five percent cash incentive for the spinners who incurred losses importing high-priced cotton from the world market.

KM Rezaul Hasanat, chairman and managing director of Viyellatex Group, said at the end of the current fiscal year, garment export growth might cross 15 percent, slightly above target.

But growth will speed up from January, as orders from China are shifting to Bangladesh. “The year 2012 will be the determining year to double garment exports within the next few years,” he said.

Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Exporters Association, said five to six percent growth might take place at the end of the year for a volatile global economic situation. But he is hopeful about a rise in apparel exports from May-June.

“I do not expect a higher growth rate in 2012. A moderate growth rate hovering around 16 to 18 percent is possible, as the EU debt crisis is yet to be overcome,” Zaid Bakht, research director of Bangladesh Institute of Development Studies (BIDS).

reefat@thedailystar.net

RMG exports to India buoyant on duty waiver

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Ready Made Garments
RMG exports to India buoyant on duty waiver
Refayet Ullah Mirdha

Garment exports to India will surge, thanks to the duty-waiver given by the Indian government to Bangladesh, exporters said. All depends on a proper use of duty-waiver for all garment products from Bangladesh, they said.

In July-October, Bangladesh exported woven garments worth $16.41 million, which was $8.31 million in the same period last year.

Knitwear exports stood at $6.69 million in July-October, which was $2.52 million in the same period a year ago, data from the Export Promotion Bureau showed.

India’s growing middle-class consumers are the main customers of the basic garment items from Bangladesh, industry insiders said.

In 2010-11, Bangladesh exported goods worth $512 million to India, 68 percent up from $304 million in 2009-10, EPB data showed. Of the total amount, woven and knit garment items accounted for $80 million.

Knitwear exports to India stood at $2.54 million and woven garments at $9.99 million in 2009-10, while it was $1.7 million and $10.25 million in 2008-09, EPB data showed.

M Nasir Uddin, chairman of Pacific Jeans that has been doing business with India for a long time, said garment exports to India are increasing from Bangladesh, especially after duty-waiver.

If a smooth supply chain management system is introduced, the export of garments from Bangladesh will increase manifold to India, he said.

“If India allows retail chains like Wal-Mart and Tesco into its market, the export of garment items from the country will see amazing growth,” he added.

The Indian government recently backtracked on its decision to allow the entry of multi-brands in Indian retail marketing. Both the governments should work to smooth trade by removing some barriers, the chairman of Pacific Jeans said.

Bangladesh should explore the vast Asian markets also, besides the traditional EU and the US markets, he said, adding that China is losing its competitiveness in the apparel business for higher costs of production and a shortage of workers.

As a result, four countries, including Bangladesh, Vietnam, Indonesia and Cambodia, will be benefited, he added.

Javed Chaudhury, managing director of Generation Next Fashion Ltd that has business with India, said garment exports from his company are not picking up at expected level.

“It might be a weakness of marketing of the company in India, as the company is busy with other markets,” he said. But, definitely, there is immense potential for exports to the India market, he added.

He said Bangladeshi garment exporters can be benefited by the devalued rupees against the greenback by exporting garments, he added.

India will be a big market for Bangladeshi garment products, as the export is increasing mainly for two reasons — the duty waiver facility and massive reforms in the Indian retail marketing system — said Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A high-powered business delegation paid a visit to India on November 24-25 to explore the Indian market, Hassan said, adding that local industrial conglomerates like Reliance and other groups are opening a significant number of retail outlets across India.

As a result, the potential for garment exports to India is high. He said at the end of the current fiscal year, garment exports to India will cross $100 million and within five years, it will cross the one billion dollar mark. The Bangladeshi team also visited other major retail outlets in India, he said.

During his visit in September, Indian Prime Minister Manmohan Singh announced a duty-waiver for 46 garment items from Bangladesh and later opened up the market fully to the LDCs.

Demand for shirts is high in India although India itself is one of the strong players in global ready-made garments.

reefat@thedailystar.net

Turkish firm to increase apparel imports

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Turkish firm to increase apparel imports
Business Report

Tema Group, a leading Turkish company, has said it would raise its annual woven and knitwear imports from Bangladesh over the next few years to cross the US$ 500 million-mark by 2015.

However, the nearly US$ 1 billion Group urged Bangladeshi apparel suppliers to focus on quality aspect to rule out delays in shipments.Report from Istanbul said Edward Southall, an Executive Member of Tema Group, said it is no longer enough to be good for both Tema and Bangladesh to remain competitive.

Problems like quality weakness to late delivery of goods are resulting in an increase in the cost of sourcing apparels. He said quality assumes importance at a time when the demand for apparels is declining owing to the eurozone crisis and fears of recession.

The Tema Group’s apparel imports from Bangladesh would increase owing to the weakening of Bangladesh currency Taka and sourcing from China becoming costlier,  Southall said.

Indian denim takes Bangladesh route to reach China

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Indian denim takes Bangladesh route to reach China
Author / Source : STAFF REPORTER

DHAKA, DEC 19: Indian denim fabric is reaching China, getting stitched on the route in Bangladesh amidst a plethora of reasons like depreciation of Indian rupee, appreciation of the Chinese currency, rising cost of labour in China, slowdown in Western economies, and less cost of labour and power in Bangladesh. Since June, Indian rupee has witnessed a depreciation of around 20 per cent against the US dollar. During the same period, the Chinese currency Yuan has appreciated by 4 per cent against the US dollar.

As a result, making jeans in China has become costlier as China imports cotton from India to make its denim. Moreover, there is an increase in wages in China. Also, there is a rise in domestic consumption.

Owing to all these factors, the Chinese are finding it more economical to buy Indian denim compared to their domestically produced denim. Hence, China has started importing denim from India for its own domestic use as well as for export to other countries.

Explaining the demand situation for denim, Vikram Oza, director-finance, Jindal Worldwide, an Ahmedabad-based denim manufacturer, explains, “The overall demand from the US and Eurozone is declining due to slowdown in their economies. On the other hand, the denim market has not penetrated to the extent required in other economies having large population like China and India.”

“In the US, the per capita consumption of denim is around 8 pairs per annum. In comparison, it is 0.3 in India and less than 1 in China. So, there is a demand in India and China to come up to the average level of 2 or 2.5 pairs per person,” he adds.

Briefing about the route taken by Indian denim to reach China, he informs, “Labour cost in China is rising these days. So, their route is through Bangladesh and Vietnam, more particularly Bangladesh.”

He said, the fabric produced in India is first going to Bangladesh. There the minimum wage is around Rs 2,250 per month, whereas in India it is Rs 7,000 per month. Next factor is the power costs. Power cost in India is Rs 5.50 per unit while it is around Rs 3.50 per unit in Bangladesh. The slowdown in the European market is also helping diversion to China because of the growing demand for denim there, he added.

McKinsey paints buoyant future for RMG exports

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McKinsey paints buoyant future for RMG exports

Star Business Report

Bangladesh’s apparel exports could triple by 2020 as European and US buyers plan to strengthen their presence in the country and new players enter the market seen as ‘next China’, according to a prestigious study.

McKinsey & Company, a global management consulting firm and trusted adviser to the world’s leading businesses, governments and institutions, said Bangladesh’s high growth at the readymade garment sector would continue for a decade.

The country’s sourcing market will get crowded amid incumbents buyers’ plan to stay for long and new markets are increasingly becoming important customers for Bangladesh, said the US-based company.

“Depending on how well the most severe issues can be managed, the market will realistically develop at an annual rate of 7-9 percent within the next ten years, resulting in an export value of

Full report in star business around $36 billion to $42 billion,” it said.

Bangladesh fetched $12.59 billion from garment exports in 2010-2011, accounting for around 80 percent of national exports and 13 percent of gross national product, according to government data.

Recently, McKinsey has conducted a study to review Bangladesh’s RMG growth formula. It is an extensive interview-based survey of chief purchasing officers from leading apparel players in Europe and the US, who account for $46 billion in total apparel sourcing value and covering 66 percent of all apparel exports from Bangladesh.

The study also included telephone-based survey of more than 100 local garment suppliers and in-depth research.

It said, while China is starting to lose its attractiveness due to a rise in costs of doing business, the sourcing caravan is moving on to the next hot spot. Costs have also increased significantly in other key sourcing markets, leading buyers to question their current sourcing strategies.

In 2010, China dominated RMG imports to Europe and the US, accounting for about 40 percent of the import volume in each region. But the McKinsey survey shows that CPOs almost unanimously favour moving some of their sourcing away from China. Fifty-four percent of them shared their plans to decrease their activities in the world’s second largest economy by up to 10 percent, while 23 percent stated that they sought to decrease their share of sourcing by more than 10 percent over the next five years.

“As western buyers search for the ‘next China’, they are evaluating all options to strengthen their proximity sourcing, moving on to Northwest China, Southeast Asia, and other Far East supplier countries. Bangladesh is clearly the preferred next stop for the sourcing caravan.”

It said other markets in Southeast Asia will increase their exports too, but will not be able to replace — at least in the near future — Bangladesh as a viable RMG sourcing hub.

Bangladesh offers the two main “hard” advantages — price and capacity. It also provides satisfactory quality levels, especially in value and entry-level mid-market products, said the research firm.

All CPOs named price attractiveness as the first and foremost reason for purchasing in Bangladesh, and said the country’s price levels will remain highly competitive in the future.

Half of the CPOs mentioned capacity as the second-biggest advantage of Bangladesh. With a current 5,000 RMG factories employing about 3.6 million workers, the country is clearly ahead of Southeast Asian suppliers in terms of capacity offered (e.g., Indonesia has about 2,450 factories, Vietnam 2,000, and Cambodia 260 factories).

Other markets, such as India and Pakistan, would have the potential to be high-volume supply markets, but high risk or structural workforce factors prevent utilisation of their capacity.

A high share of European CPOs strongly emphasise the advantages of sourcing in Bangladesh due to favorable trade agreements, with the broadening of the EU Generalised System of Preferences rules on duty-free imports of garments from the country.

Taking these drivers into account, Bangladesh’s RMG industry will continue to face growing demand. The CPOs of value players want to increase the value of their sourcing in Bangladesh by about a 10 percent annual growth rate, whereas mid-market players plan an annual growth rate of around 14 percent.

While Bangladesh represents some very promising advantages in certain dimensions, a number of challenges could create hurdles for companies seeking to source from the country.

For all business stakeholders, infrastructure (transport and utilities supply) is the single largest issue hampering Bangladesh’s RMG industry. The power supply issue seems more likely solvable within the next two or three years, although 90 percent of local suppliers rate the current energy supply as very poor or poor.

Some 93 percent of the European and US CPOs interviewed agreed that the compliance standard in Bangladesh has somewhat improved (67 percent) or strongly improved (26 percent) within the last five years. However, gaps exist and new risks may be emerging.

A gap between customer requirements and supplier capabilities or investment plans is emerging, as currently only 50 to 100 local garment manufacturers are able to produce at an advanced level in terms of product categories, productivity, services and compliance.

Apart from a lack of investment in new machinery and technologies, the current insufficient size of skilled workforce also impedes an increase in productivity and a move towards more sophisticated products.

Experts estimate that there is currently a 25 percent shortage of skilled workers in Bangladesh’s RMG industry.

Also, existing challenges will multiply if suppliers are not able to fill higher-skill middle management positions, according to McKinsey.

The European and US CPOs say economy and political stability are one of the key areas of risk when sourcing in Bangladesh. About half of them said they would reduce the value of their sourcing in the country if political stability was to decrease. A majority of them sees corruption as a major hurdle for doing business in Bangladesh.

It says productivity needs to improve to close the existing productivity gap in comparison to other sourcing countries.

The McKinsey study said the potential for Bangladesh’s RMG growth can be realised only if the challenges in areas of infrastructure, compliance, supplier performance and workforce supply, raw materials, and economy and political stability are tackled.

The study notes the three main stakeholders — government, suppliers and buyers — can accomplish the development potential and solve Bangladesh’s RMG growth formula. “Only if wholehearted efforts are led by all stakeholders together, will the stage be set to support a future ‘rebranding’ of Bangladesh.”

Bangladesh all set for global outsourcing hub for RMG

http://www1.bssnews.net/newsDetails.php?cat=2&id=215144&date=2011-12-18

Bangladesh all set for global outsourcing hub for RMG

DHAKA, Dec 18 (BSS) – From the today’s position of the world’s second largest apparel exporters, Bangladesh all is set for getting the status of the global outsourcing hub in the next decade.

“With garment buyers moving out of China, the sourcing caravan is moving on to the next hotspot Bangladesh,” the latest report of McKinsey & Company said, providing an overview of the rapid growth of Bangladesh apparel sector with its prospect and areas of concern.

The report, prepared by the highly creditable and trusted German consultant in association with the Bangladesh German Chamber of Commerce and Industry (BGCCI), will be released on Tuesday. But, it is now available on McKinsey’s website.

Citing the trend of global buyers, the report forecast that Bangladesh would fetch up to US$ 42 billion from RMG export in the next 10 years with maintaining an annual growth between 7 and 9 percent.

The report in its near-term estimate also said that the earning would be double by 2015 and triple by 2020.

According to the report, Bangladesh will be able the next hot-spot of RMG outsourcing even though the other countries in Southeast Asia will increase their exports to the global market.

The report said a growing number of chief purchasing officers (CPOs) of Europe and US apparel companies are reviewing their sourcing strategies after margin and supplier capacity pressure promoted them search the next viable source.

With Bangladesh having developed a strong position among Europe and US buyers, many companies from overseas are eagerly evaluating the future potential.

The report said the global buyers once considered China as “the place to be” for outsourcing, but they are now shifting their focus on Bangladesh with bigger target.

In 2010, China dominated RMG imports to Europe and the US with 40 per cent of the import volume in each region. The macro trends of wage increases and capacity pressure, however, have proven to heavy weigh on the Chinese RMG sector.

McKinsey’s survey shows that CPOs of leading apparel buyers in Europe and the US almost unanimously favor moving some of their sourcing away from China.

As western RMG buyers search for the ‘next China’, they are evaluating all options to strengthen their proximity sourcing, moving on to Northwest China, Southeast Asia and Fareast supplier countries. Bangladesh is clearly the preferred next stop for the sourcing caravan.

The report said the advantages in price, capacity, capability and trade regulations provides the base for positive RMG growth in Bangladesh, which will be accelerated further in the future, driven by the increasing demand of international buyers from Europe, US and many emerging markets.

The report, however, said that the country’s RMG sector would face some major challenges to achieve the status of global hub. The challenges include poor infrastructure, limited inland transport alternatives and lack of deep-sea port.

Bangladesh started RMG export in 1978 when the country earned only US$12,000. This earning over the years increased rapidly and stood at US$17.91 million this year.

Presently, the country exports quality garment items to USA, EU, Canada, Germany, France, UK, the Netherlands, Spain and Italy. Russia, Brazil, Mexico, Chile, Japan and India are the potential markets for Bangladesh’s apparels.

RMG export earnings may cross $40b by 2020

http://www.thefinancialexpress-bd.com/more.php?news_id=159515&date=2011-12-16

RMG export earnings may cross $40b by 2020
Nizam Ahmed

The export earnings of the country’s garment sector are likely to cross $40 billion mark by 2020, if few challenges the industry is facing are addressed in the coming years, exporters and global market monitors said on Thursday.

The challenges being faced by Bangladesh garment industry are poor port performance, weak road network, slower transportation, inadequate supply of utilities including electricity, gas and fuel oil and rising labour cost, garment manufacturers and exporters said.

“For next 10 years Bangladesh garment sector is likely to grow by 9.0 percent and by 2020 the export value is likely to touch $42 billion,” said global online business journal McKinsey Quarterly.

According to the Export Promotion Bureau, garments exports rose by 43 percent to more than $17.9 billion in Fiscal Year 2010-11 and in the current FY the export target for garments has been fixed at some $20.29 billion.

“To rapidly increase the export earnings we need further improvement of infrastructure, ports efficiency, road-network and supply of utilities including electricity, natural gas and water,” Syed Nurul Islam, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE.

Despite improvement of the situation in the last few years, the authorities concerned should continue the development efforts further, he added.

“With present level of power supply and constraints in other relevant fields we are earning some $20 billion a year. The export can touch $50 billion if facilities are improved,” said Nurul Islam who has been elected President of Bangladesh-Malaysia Chamber of Commerce and Industry recently.

Due to lack of proper port efficiency and wider highways exports are often delayed, other exporters said.

However, the authorities concerned have started upgrading a national highway connecting the country’s main Chittagong port with the capital Dhaka and the project is expected to be completed by early 2014, officials of Roads and Highways Department said.

The power situation also improved but the shortfall still remains at around 2,000 mega watt (mw) as the peak-hour demand rose over 7,000 mw, officials of Bangladesh Power Development Board said.

Authorities concerned are still struggling to augment gas supply through new exploration.

“In the coming years the (garment) industry is likely to face a 30 per cent hike in labour cost, in addition to expenses to be required to increase capability of workers,” McKinsey Quarterly said.

According to BGMEA officials, currently a new entrant earns around taka 3,500 per month. There are more than 5,000 garment factories employing some 4.0 million workers comprising more than 80 per cent female workers.

Prime Minister Sheikh Hasina and the opposition leader Begum Khaleda Zia separately advised the Bangladesh Garment Manufacturers and Exporters Association to look after the needs of workers.

Their advice came when the two leaders attended separate sessions of BGMEA during its recently three-day international exposition in Dhaka.

In addition to the rising labour cost, the garment sector in the country will have to continue to face additional cost for inputs as the country has no base of raw materials.

Moreover the industry is also likely to be adversely affected by political instability as the major parties continue to pursue a confrontational politics, traders said.

However the prospects for the country’s garment sector increased further after India allowed duty-free and quota-free access of Bangladeshi garment products to its market.

Recent closer of many garment factories and shift in investment from garment to other sector in China due to improved socio-economic status and higher labour cost, Bangladesh is getting wider scope to replace China, the world’s largest garment supplier, in the coming days, industry sources said.

KNITEXPO in Tokyo next month

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KNITEXPO in Tokyo next month
Business Report

Next to BATEXPO, the country’s knitwear manufacturers and exporters will hold their 6th ‘Knitwear Exposition-2012’ in Tokyo from January 25 to 27, a press release of the association said.

Bangladesh Knitwear Manufacturers and Exporters Association will hold the event with a view to expanding the market outreach to the highly expensive and sensitive buyers market in Japan.   It will be part of the government efforts to support the government’s policy of expanding and diversifying the markets, besides part of a market strategy to reduce the industry’s dependency on European and American markets.

Many foreign buyers had already confirmed their participation in the fair. A total of 32 stalls have been so far confirmed, the press release said.  Japan imports $27 billion worth of readymade garments every year. Recently, the Japan government has awarded two stage GSP facilities to the Bangladeshi knitwear sector and market analysts say it may bring new opportunity to the country’s textile exports to the Japanese market.

RMG export may cross $30b in next 3 years

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RMG export may cross $30b in next 3 years
Batexpo receives $66.35m spot orders
FE report

Export earnings from country’s ready made garments (RMG) might cross $30 billion within next three calendar years, industry leaders said.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders at a post-BATEXPO-2011 press briefing at BGMEA conference room in the city on Tuesday said that the sector had the capability to earn more than $30 billion subject to having moral support and sufficient infrastructural development.

The audience in the press conference was also informed that the industry has received spot orders over $66.35 million worth of readymade garments in the BATEXPO-2011 which is $1.35 million higher than that of the last year’s fair. In the BATEXPO – 2010, the country had got spot orders worth $65.00 million.

“We are happy to inform that we have succeeded in completing the fair successfully with attractive spot orders worth $66.35 million which is more than our expectation despite the recession in the developed countries,” President of BGMEA, Shafiul Islam (Mohiuddin). said.

Mr Mohiuddin also said, “The number of visitors, including buyers and their representatives, in the fair was beyond our expectation.”

A total of 175 buyers and 3015 representatives of buyers have visited the fair which is also higher than that of last year.

“Besides, a total of 15,690 visitors have visited the fair. In the last year’s BATEXPO fair, a total of 14,990 visitors had visited the fair of which 162 were buyers and 2,870 were their representatives”, the press conference was told.

The BGMEA president also said, “A good number of prospective buyers from Latin from some other new countries have visited the fair and gave orders to some of our local garments owners.”

The BGMEA leaders have emphasized on skill development, infrastructural development and development of compliance for a sustainable growth of the industry.

The sector leaders have also informed that the buyers have emphasized on arranging such fair twice a year. Besides, they have also informed the audience that the buyers have demanded several overseas fashion shows for exposure of Bangladesh garment items.

Prime Minister Sheikh Hasina inaugurated the three-day BATEXPO-2011 fair arranged by BGMEA from December 10 to 12 and leader of the opposition Khaleda Zia attended the concluding ceremony.

Vice -president of BGMEA, Siddiqur Rahman, Director of BGMEA, Atiur Rahman Dipu, chairman and director of BGMEA, Md Nasir Uddin and others were present at the press conference.

Apparel makers get $66.35m export orders from ‘BATEXPO 2011’

http://www1.bssnews.net/newsDetails.php?cat=2&id=214262&date=2011-12-13

Apparel makers get $66.35m export orders from ‘BATEXPO 2011’

DHAKA, Dec 13 (BSS) – The country’s apparel makers got export orders worth 66.35 million US dollars from the just concluded three-day annual exposition ‘BATEXPO 2011’ that ended here on Monday (December 10).

“Bangladesh received spot orders of apparel products worth $66.35 million from foreign buyers,” Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said this at a press briefing in the association’s conference room here today.

Mohiuddin said the country also received $1.58 million as stock lot orders from the mega Readymade Garment (RMG) event.

Last year, the spot and stock lot orders were worth $63.50 million and $1.50 million respectively.

Mohiuddin said as many as 15,690 people visited the fair besides 175 foreign buyers and 3,015 representatives.

BGMEA organized the Bangladesh Apparel and Textile Exposition (BATEXPO) at the Bangabandhu International Conference Centre.

Project launched to benefit RMG workers

http://www.theindependentbd.com/business/others/83710-project-launched-to-benefit-rmg-workers.html

Project launched to benefit RMG workers
Author / Source : Staff Reporter

DHAKA, DEC 8: Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has recently joined hands   with trade union leaders and NGOs to launch a project, Benefits for Business and Workers.  The project is sponsored by the Department for International Development’s RAGS Challenge Fund, Arcadia, Marks and Spencer, Mothercare, New Look, Sainsbury’s and Tesco and is managed by Impactt and Rajesh Bheda Consulting, according to a press release.

Benefits for Business and Workers project is a factory-wide training module which will equips industrial engineers, production, HR and welfare managers with the latest management techniques to build efficiency, improve quality and improve the workers’ employment conditions through shorter working hours, better pay, more training and promotion.  The project will offer training to 100 factories supplying the sponsoring brands during 2012.

Catherine Martin, senior private sector adviser, DfID said, “The Benefits for Business and Workers programme makes a powerful contribution to the garment sector”.

Md Shafiul Islam (Mohiuddin), president, BGMEA welcomed the project and urged manufacturers to participate.

Rosey Hurst, director, Impact Limited said “Benefits for Business and Workers will support stronger businesses and better jobs, both are vital for the continued strong social and economic development of Bangladesh”.

BATEXPO begins Dec 10

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BATEXPO begins Dec 10
Business Report

The most impressive event of the country’s textile manufacturing sector, BATEXPO (Bangladesh Apparel and Textile Exposition) will open in the city
on December 10. This is the largest annual export fair with participants from home and abroad gathering to show case their produce and put booking of merchandise.

Prime minister Sheikh Hasina will inaugurate the fair while BNP chief and leader of the opposition in Parliament Begum Khaleda Zia will be the chief guest at the closing ceremony of the three-day fair.

Bangladesh Garments Manufacturers and Exporters Association (BGMEA) is organizing the annual trade show.

The apex chamber body of the textile and garment sector held a meeting with event sponsors to exchange views on the fair Monday. They will hold a press briefing on December 8 to share information on the BATEXPO preparations.

BGMEA sources said there will be several seminars in the sideline of the fair with experts speaking on the market trend and production and supply situation in the light of the economic recessions in Europe and USA.

The exchange of views would further help to chart out BGMEA’s production and marketing strategy to avoid setback at a time supply orders are on decline.

BGMEA acting president Siddiqur Rahman yesterday said preparations are moving in full gear. He hoped that a large number of buyers from the US and Europe, Japan, Australia, Canada and such other important buying nations are going to attend the fair.

They have already given booking of hotels, pavilions and stalls and those interested to show case their produce and machinery have already given booking for shipment.

The fair to be held at a local hotel will see the visits of local business groups and trade analysts at the event.