Indian cos start placing orders for Bangladeshi apparels

http://www.theindependentbd.com/business/finance/82872-indian-cos-start-placing-orders-for-bangladeshi-apparels.html

Indian cos start placing orders for Bangladeshi apparels
Author / Source : BSS

DHAKA, Dec 2: Indian apparel companies and retailers are placing orders here to buy Bangladeshi garments in large volume taking advantage of the duty-free access and low prices, exporters said Friday. Many apparel companies of India’s famous brands including Arvind, Aditya Birla, Madura Garments,Provogue Zodiac Clothing, Raymonds, Vimal, Lews Philips, Van Heusen, Arrow,Lee, Levis, Wrangler and Dockers and others are intensely communicating with the Bangladeshi apparel manufacturers.

During the historic trip to Dhaka in September, Indian Prime Minister Manmohan Singh announced the duty free access of Bangladeshi apparels to Indian market in an effort to address the long-standing multi-billion-dollar trade imbalance that goes in India’s favour.

Talking to BSS, Abdus Salam Murshedy, president of the Exporters Association of Bangladesh (EAB), said his company received export orders of two lakh pieces of shirts worth two million US dollars from an Indian reputed brand “Pantaloons.”

“We have already sent the consignments to India,” said Murshedy, also former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He said Indian top apparel brands and retailers are even ready to shift their manufacturing units to Bangladesh to route garments back to India encouraged by the Delhi’s zero tariff facilities to Dhaka.

Bangladeshi apparel entrepreneurs could give competitive price and ensure timely supply to Indian retailers, he said and favoured organising single country fair in India to give fillip to Bangladesh and Indian apparel makers. M Shafiul Islam Mohiuddin, president of BGMEA, said Bangladesh can easily penetrate the US$30b Indian apparel market. Mohiuddin, who led a business delegation of apparel exporters to India last week, said the BGMEA leaders discussed with Indian apparel associations, manufacturers, entrepreneurs and leaders of the Confederation of Indian Industry.

On providing zero tariff facilities to the Bangladeshi apparels in the Indian market he said, “Some Indian businessmen consider the tariff treatment as risky and others as opportunities.but Indian government stance on the market access is firm.”

Dhaka’s exports are valued just one-ninth of the $4.5 billion worth of goods India shipped to Bangladesh in the 2010-11 fiscal.

The garment deal is the best Dhaka secured for the sector from India since the 1990s, when similar duty-free access to the EU transformed Bangladesh’s apparel trade into a multi-billion dollar industry, say insiders.

Bangladesh is the world’s third largest garment manufacturer , exporting apparels worth 19 billion US dollars last fiscal.

The garment industry, which accounts for 80 per cent of the country’s total exports, relies heavily on orders from European and North America retailers such as Sweden’s H&M, America’s Gap and British supermarket Tesco, industry insiders say.    BSS

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