Category Archives: Textiles/Ready Made Garments/Accessories/Footwear/Sports Goods

Buyers of Chinese apparels shifting to Bangladesh

Buyers of Chinese apparels shifting to Bangladesh
Business Report

The export basket of readymade garments is changing fast. Apart from trousers, shirts, shorts and such other clothes for men, women and children, fresh orders are now pouring for blazers and jackets at a time the country apparel exports were slowing.

The new surge has come as buyers from China are shifting their sourcing to Bangladesh because of soaring cost of production and their buying prices. Compared to China, Bangladesh produces high quality blazers and jackets at a quite lower cost. So the buying orders are shifting in huge number here, BGMEA sources said.

The source said overseas buyers are now showing interest to source blazers and jackets from Bangladesh bypassing China. He said jackets and blazers have huge demand in the countries where Bangladesh already exports ready-made garments. The EU, USA and Russian are top on the list of those countries bringing in new orders for blazers and jackets.

They used to buy earlier from China but now they have chosen Bangladesh due to lower cost and better quality, the BGMEA functionary said. He said with the rise in population, the demand for apparel products has also increased in the European and American countries and the local industry is trying to meet their growing demand.

The current export orders of jackets and blazers constitute 5.0 per cent of the country’s total clothing order and it may further increase over time. Many top buyers are swarming to Bangladesh for blazers and jackets having been disillusioned with China.

And the blazer and jacket making industry has rapidly spread in the city along with suit making as the export order of readymade suits is also growing very rapidly, the sources said. Export order for blazers and jackets are also coming from Norway, Sweden and Swaziland.

He said as many of the Chinese RMG exporters have relocated there businesses here as their cost of production has multiplied in their home country their old buyers are coming here with big opportunities for the country’s export sector.


Industrial police changes scenario in garment industry

Industrial police changes scenario in garment industry

SAVAR, Nov 18 (BSS) – The scenario in country’s garments industry has changed following formation of the industrial police.

Peace and stability returned in the largest export-earning sector as the newly formed force is working with devotion to maintain law and order in the industrial zones, concerned sources said.

The sources said the garments industry has got rid of incidents of worker-owner clash and attack on factories after the formation and deployment of industrial police.

This has created better working atmosphere and possibility of new investments in the sector, they added.

Anisuzzaman, director of a garment factory in Ashulia, said unlike the past, the workers cannot resort to destructive activities since the formation of industrial police.

Besides, the worker-owner gap has reduced after the deployment of the new force, he added.

Responding to the demand of garments factory owners, the government formed industrial police in October 2010 with 365 members of ordinary police.

The industrial police was divided into four units. Unit 1, comprising 700 members, took the charge of more than 800 factories under Savar, Ashulia and Dhamrai thanas where about five lakh workers are working.

Unit 1 Deputy Company Commander Fayezul Kabir said they are working relentlessly to maintain peace and order in garment industry.

They are taking all necessary steps to resolve problems quickly,he added.

Bangladesh Garments Manufacturers and Exporters Association (BGMEA) President Shafiul Islam Mohiuddin appreciated the performance of industrial police. He pointed to various limitations of the force and demanded adequate logistic supports.

Director General of Police (IGP) Hasan Mahmud Khandakar said recently that the members of industrial police are being trained
up to develop the force as an independent agency.

Duty-free access boosts RMG exports to India

Duty-free access boosts RMG exports to India
Author / Source : Jasim Uddin Khan

Dhaka, Nov 17: Exports of ready-made garments (RMG) to India recorded a rapid growth during September and October following the neighbouring country lifting duty on 46 new RMG products. According to the Export Promotion Bureau (EPB) statistics, woven products worth US $18 million and knit products worth $7 million were exported to India during the first four months of the current fiscal, as against $8 million and $2 million, respectively, during the corresponding period of the previous fiscal. EPB statistics also show that RMG exports to India went up significantly during September and October. Indian Prime Minister Manmohan Singh announced the duty free facility for RMG exports to India during his visit to Dhaka on September 6 and 7.

The best thing that could happen to the RMG sector is that its products do not face any kind of non-tariff barriers as other Bangladeshi products do in the Indian market, the president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Shafiul Islam Mohiuddin told The Independent. “Large global retailers that have branches in India are placing queries with leading Bangladeshi exporters, which is encouraging,” Mohiuddin added.

The volume of exports will rise significantly in the coming years as Indian retailers have started shifting orders to Bangladesh from China, he pointed out.

Knit products, especially T-shirts, knitted trousers, jerseys, pullovers, cardigans, hand socks, undergarments and singlets, have huge demand in India and the export of these products will increase the market share of these Bangladeshi products significantly, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Salim Osman said.

Immediate past BGMEA president Abdus Salam Murshedy said India’s decision to extend duty-free access to 46 Bangladeshi products could accelerate Bangladeshi RMG exports by $5 billion a year.

The RMG sector still needs more than two years to put up required infrastructure, improve the manufacturing environment, create a good business-to-business understanding and find out potential Indian buyers, BGMEA director Khondoker Jamil Uddin said. However, he added with a hint of pessimism: “A number of agreements were signed with India during the past regimes, but their implementation rate is very frustrating.”

Indian customs administration has a negative attitude towards Bangladeshi goods entering India, BGMEA vice-president Nasir Uddin Chowdhury said adding, they make unnecessary delays in clearing export cargoes, and this proves costly to both Indian importers and Bangladeshi exporters. “In India, there are many bureaucratic complexities.
It is very tough to develop a business-to-business relationship by overcoming those problems,” Chowdhury further added. Before India allowed duty-free access to the 46 products, Bangladesh enjoyed duty-free facility for the export of 10 million pieces of RMG products to India a year. Initially, India allowed access to eight million pieces of apparel.

According to the EPB statistics, Bangladesh apparel shipments to India amounted to $35 million in the fiscal 2010-11, out of the country’s total export volume of $19 billion.

Bangladesh grabbed only 0.0013 per cent of India’s $28-billion clothing market. Bangladeshi RMG products enjoy high demand in India, but the products could not be exported in larger volumes due to the quota system.

Local footwear pulls in top world retailers

Local footwear pulls in top world retailers
Bangladeshi exporters look to brighter days ahead

Shoe production at Apexadelchi Footwear Ltd. Source:

Sohel Parvez

Bangladesh’s footwear industry has attracted attention of globally known chain retails that now consider buying shoes from here in a bid to diversify their sourcing base.

Global retail chains such as JC Penny, Marks & Spencer, Tesco and Wal-Mart, which now buy clothes from Bangladesh, are contacting leading footwear exporters to widen sourcing along with garments, said exporters.

The interest of these buyers has opened up an opportunity for the leather and footwear industry to help propel exports by increasing volumes, reaching new markets and penetrating new segments of products, the exporters said.

“We are in talks with a number of global retail chain stores to make shoes for them,” said Nasir Khan, managing director of Jennys Shoes Ltd that exports to Japan and Europe.

“Top officials in charge of sourcing are visiting our factories. They are talking of buying big volume of footwear of mid to high price range,” said Khan, citing JC Penny, Marks & Spencer and Wal-Mart.

Sector leaders said the brands became interested in Bangladesh as they move to diversify sourcing destination in the wake of rising production cost in the world’s biggest shoe exporter China due to a hike in labour cost there and appreciation of its currency.

The exporters said buyers look for widening sourcing markets to maintain margins without increasing retail prices, which in turn has opened up opportunity for Bangladesh, which now sees rising exports from footwear due to a gradual shift in orders from China.

Availability of raw materials, a duty-free export facility to Europe and Japan, and lower production cost due to cheap labour are the reasons behind the shift in orders and spike in exports from footwear, a sub-sector under the $650 million export earner leather industry.

The leather sector is the fourth biggest contributor to the total export earnings.

In fiscal 2010-11, footwear exports posted a 46 percent growth fetching $297 million, up from $204 million the previous year, according to Export Promotion Bureau (EPB).

Footwear exports grew 42 percent to $139 million in July-October of 2011-12, compared to the same period a year ago, EPB data shows.

“Consistent exports of leather goods and footwear have helped earn a good image due to our product quality, competitive edge and workmanship,” said Saiful Islam, former president of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB).

Currently, shoe makers export to various established and well-known retailers in Europe, US and Japan including Deichmann of Germany, Macys of the USA, and ABC Mart of Japan, and Timberland and Caterpillar.

“Our lead-time is lower than China which takes three months plus time. For us, it is two months because we have locally available raw materials,” he said.

President of LFMEAB Syed Nasim Manzur said: “Bangladesh has come up in the global map of footwear. It is a positive sign and important development for the entrepreneurs mainly for new entrants in the sector.”

Manzur, also managing director of a leading exporter Apexadelchi Footwear Ltd, said local footwear makers have so far marketed their products directly abroad.

But the interest of the general merchandise retailers, which have sourcing offices in Bangladesh, to buy non-garment items is a positive development, said the official of Apexadelchi.

The company exports to 130 footwear retailers and brands in over 40 countries in Europe, North America and Japan.

“This is an opportunity for Bangladeshi exporters to increase volumes, reach new markets and penetrate new segments. It is interesting to note that footwear and leather goods are regarded as accessories for clothing, hence there is natural synergy for sourcing,” said Manzur.

Islam said orders from retail chains like Marks & Spencer, JC Penny and others will facilitate expansion of the leather industry by creating more jobs and improving quality of footwear further.

British-Chinese company invests 15,411 million US dollars in Comilla EPZ

British-Chinese company invests 15,411 million US dollars in Comilla EPZ

DHAKA, Nov 14 (BSS)- A British-Chinese company will set up a Household, Fashion and Travel Accessories Manufacturing Industry in the Comilla Export Processing Zone, a press release of Bangladesh Export Processing Zone Authority (BEPZA) said here today.

The joint foreign owned company will invest about 15,411 million US Dollar to set up the unit to manufacture household, fashion and travel accessories items.

The company will also create employment opportunity for 1600 Bangladeshi nationals, the release added.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and Tung Hing (Bangladesh) Manufactory Limited in BEPZA Complex recently.

AZM Azizur Rahman, General Manager (Investment Promotion) of BEPZA and Sze Ka Chuen, Managing Director of Tung Hing (Bangladesh) Manufactory Limited signed the agreement on behalf of their respective organizations.

Major General A T M Shahidul Islam, BEPZA Executive Chairman, Md. Shawkat Nabi, Secretary, Mahmud Hasan, General Manager (Public Relations) and other officials of BEPZA were present at the signing ceremony.

Indian co to invest $ 4.54m in AEPZ

Indian co to invest $ 4.54m in AEPZ

Business Report

M/s. Simba Fashions Ltd, a Indian company, will set up a readymade garments industry in Adamjee Export Processing Zone (AEPZ).  This fully foreign owned company will invest about 4.54 million US Dollar in setting up their unit and will manufacture woven garments related items. The company will also create employment opportunity for 2,264 Bangladeshi nationals.

An agreement to this effect was signed recently between the Bangladesh Export Processing Zones Authority and M/s. Simba Fashions Limited at BEPZA Complex in the city.

AZM Azizur Rahman, General Manager (Investment Promotion) of BEPZA and Gaurav Nagpal, Director of M/s. Simba Fashions Ltd signed the agreement while Major General ATM Shahidul Islam, ndu, psc, Executive Chairman, AKM Mahbubur Rahman, Member (Finance), Md. Shawkat Nabi, Secretary, Mahmud Hasan, General Manager (Public Relations) and other BEPZA officials were present at the signing ceremony.

RMG may get zero duty access to US

RMG may get zero duty access to US
Author / Source : STAFF REPORTER

DHAKA, NOV 10: Bangladeshi garment exporters, who already enjoy duty-free access to EU and India, may also be able to get a similar entry to the US market in near future. It would give a big boost to the country’s readymade garment (RMG) industry and attract more investment in the sector from the world’s leading economy, reported renowned online news portal for textile industry

Currently, the US accounts for about 40 per cent of the total annual apparel exports of Bangladesh worth US$ 18 billion. The EU accounts for more than half of the country’s garment exports, and the remaining exports are to India, Australia, South Africa, Japan and New Zealand.

According to the report, a 20-member trade delegation led by AK Azad, president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI), recently paid a visit to the US as part of the entourage of Prime Minister Sheikh Hasina’s visit to New York. “The objective of the delegation was to promote the country’s garment exports in the US,” Murshed Murad Ibrahim, president of the Chittagong Chamber of Commerce and Industry (CCCI), who was a member of the 20-member delegation said.

“During our visit, the US trade leaders assured us that we are going to get duty free access for our RMG items to the US market,” Ibrahim said.

“The issue will be first presented before the Office of US Trade Representative. Subsequently, a bill for granting duty-free entry for Bangladeshi apparels to the US market will be placed in the Senate. So, we are very much optimistic that Bangladeshi RMG will get duty free access into the US market very soon,” he added.

Explaining the benefit of duty-free access to Bangladeshi RMG, the CCCI President said, “We are the third largest RMG exporters to the US market. If this bill granting duty-free entry is passed, then Bangladesh will become the centre of interest for the investors.”

“As the US is the world’s largest economy, the duty free access to our RMG products will attract more investors to invest in Bangladeshi RMG sector, and its share in international garment trade would increase. Since RMG is the largest export item for Bangladesh, the whole economy of the country will boost up. There will be more employment and our GDP will rise more than our expectation,” he exclaimed.