Documente Academic
Documente Profesional
Documente Cultură
Vertical production chains in Textile and Apparel Sector between India & Bangladesh
Presentation By
by
Competitive Advantages
Competitive Price International standard Quality Control process Bangladesh has 30 years of experience in garment
manufacturing Superiority in the lower end niche, as well as handful of suppliers doing brand items Rapidly developing backward linkage industry Increase in direct sourcing by the Brands through local offices at Dhaka. Bangladesh is the 3rd largest apparel exporting country in the world (WTO, 2008)
3
Comparative Price
Source: OTEXA
Source: EUROSTAT
Quality Assurance
In house quality inspection Most of the factories have received quality certificate from buyers Certifications like ISO, WRAP, OEKO-TEX, SA 8000 etc. Most of the factories have their own Quality Control department where highly skilled professionals are employed to increase efficiency and reduce reject. International Consulting companies train the employees to provide International standard requirements.
9
10
11
12
three years Bangladesh has always fulfilled its debt obligations 57.3% of the population is under 25 years of age. Highly flexible workforce Both JP Morgan and Goldman Sachs have included Bangladesh among their shortlists of transitional states likely to succeed.
13
Standard & Poor's (S&Ps): For the 1st time Long term international credit: BB-. Short term credit: B Moodys Investors Service: Ba3
14
China moving to high-end and secondary industries Rising production costs in China Labor shortages causing wage increases Revaluation of Yuan Largest impact on labor intensive industries Bangladesh represents a clear alternative to China in some
15
15
16
18.00 16.00 14.00 12.18 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 5.99 4.58 7.60 6.55 4.91 5.69 6.42 8.65 10.53 9.21 7.90 10.70 RMG Total 14.11 12.35 15.57
Source: EPB 17
17
0.60% to Japan
0.40% to Australia
% Share of Global Exports
EU, 58.46% USA, 29.91% Canada, 4.75% Others, 5.88% Australia, 0.40% Japan, 0.60%
%Growth in Exports between 2004-05 and 2008-09 Apparel USA European Union Canada 82.94% 82.29% 90.64%
18
Source: EPB
USA
16.65%
Germany
29.91% 2.05% 4.23% 4.75%
7.35%
Italy Belgium
7.85% 9.90% 17.30%
Others
19
19
STATE-OF-THE-ART FACTORIES
20
Sub-Sector
No. of Mills
Sub-Sector
Unit
Public Sector Spinning Private Sector Spinning (Cotton) Spinning (Synthetic Yarn) Total (Public & Private) Weaving Mill (large, medium & small) Handloom Terry Towel Sub-Total Dyeing & Finishing Sweater Ready-made Garments Woven Knitwear Sub-Total Knitting & Knit Dyeing 24 312 27 363 1131 148342 72 149545 359 607 1382 462 1844 822 Spindle Spindle Spindle Spindle Shuttle/Shuttle-less Loom Handloom Terry/Power Loom Finished Fabric Flat & Jachard Sewing Machine Over Lock Knitting & Dyeing 460000 8230104 673276 9363380 48659 498000 1896 548555 6755 306848 391723 148448 540171 12891 Kg Kg Kg Kg Meter Meter Meter Meter Eqv. Meter Pcs Pcs Pcs Eqv. Meter 40 1495 180 1714 2011 837 34 2882 6084 6568 3508 5378 8886 7414 21
21
Vertical production chains in Textile and Apparel Sector between India & Bangladesh
22
Win-Win situation
1. Bangladesh is a Big Market for Woven Textile.
2. Potential to Enhance the EU GSP Utilization Rate. 3. India Could Contain its Textile GSP Graduation Loss. 4. China Plus Sourcing Strategy of Buyers.
23
Win-Win situation
Other reasons to Support the Vertical Supply Chain
concept As Bangladesh occupies about 3% of world apparel market share, and we have a very strong prospect to grow in apparel trade (15% average annual growth), and as India being a cotton growing country has a very strong primary textile base; the idea of vertically integrated supply chain should work well between these two countries.
24
Bottle Necks
Bi-lateral Trade Issues to be Taken Care of: Bangladesh India Trade Gap. The 8 Million Pieces Garment Experience:
Utilization 2009: 52.77%(CVD+Eu+ others) Non-Tariff Barriers. Sensitive list. Currency Exchange Rate. Complicated Visa System. Trust Issue. stoppage)
25
2007
288.99 16.02 39.79 0.56
2008
711.37 44.64 44.63 9.26
2007
1595.98 242.88 417.64 36.67
2008
2410.88 365.46 622.45 319.67
2007
4408.54 1234.31 1295.19 80.10
2008
4548.48 1587.63 1396.06 112.26
Source: ITC
26
Product code
Product label
52 54 55 60
27
BGMEA
exporters trade bodies in Bangladesh. BGMEA started its journey in Dhaka in 1983 with only 134 members and now the number of members of BGMEA is 4925.
Chittagong in 1985 considering its strategic importance of being the port city and the gateway for all RMG exports.
BGMEA Complex, Dhaka
28
29
30
Social Sustainability
31
Bangladeshs garment sector is free of child labor and forced labor according to USDOL Report (Sep, 2009) 122 goods were identified produced with forced labor, child labor, or both, in 58 countries. The most common goods listed are cotton, sugarcane, tobacco, coffee, rice, and cocoa in agriculture; bricks, garments, carpets, and footwear in manufacturing; and gold and coal in mined or quarried goods.
33
33
34
Environmental sustainability
ENVIRONMENTAL SUSTAINABILITY
Respect for nature Effluent Treatment Plants has been made mandatory for effluent discharging factories above ph 8.5 level. Greenbuilding, water recycling and using renewable energy has been getting increased attention among the entrepreneurs. BGMEA has been running several projects to promote energy efficiency in garment factories. Sustainable use of resources The garment industry in Bangladesh have already gained significant progress in lean production. In order to bring all factories under this practice BGMEA runs projects like waste recycling with IFC-SEDF. Healthy products Most factories run their own textile testing labs which are accredited by large fashion retailers like H&M, M&S, Puma, JC Penny, etc. Tests are done as per various international standards like ISO/AATCC/BS/OEKO-TEX. Most of the companies have awards from big fashion retailers for good product & Quality.
35
36