TEXTILE AUXILIARIES
DIAMONTEX P Premium Pigment Inks
BENEFITS Excellent rub fastness, especially wet rubbing One ink for different substrates (e.g. CO, PES, LI) Reliable printing performance, easy handling and cleaning Outstanding fastness to washing (even after washing 25 times at 60°C) Available for different print heads: Epson, Ricoh, Fujifilm Dimatix Starfire Additional priming possible to improve depth of shade, brilliancy and contour sharpness
ISO 9001:2015
Bangladesh
Driving business with knowledge
Editorial Panel Editor in chief Prof. Md. Monirul Islam Executive Editor Prof. Dr. Engr. Ayub Nabi Khan Technical Editor Prof. Dr. Engr. Md. Saifur Rahman Dr. Engr. Md. Fazley Elahi Dr. Md. Abbas Uddin (Shiyak) Dr. Mohammad Nazmul Karim Consulting Editor Dr. NN Mahapatra Dr. Mohammed Tareque Aziz C.N. Sivaramakrishnan Ashfaque Ahmed Associate Editor Jamal Abdun Naser Md. Mominul Motin (Tusher)
Designed for knit and terry towel.
Add value to your fabric by
HUE SOFT 800
Hydrophilic Cationic Softener
Sub Editor Akhi Akter Sanjoy Kumar Saha Technical Team Co-ordinator Setara Begum Member S.N. Abdullah Amzad Hossain Monir Mir Abdullah Al Mahfuz Rakibul Islam Al Takbir Mahim Editor & Publisher A.S.M Tareq Amin Published on 28th July 2018 by Amin & Jahan Corporation Ltd. House-41, Road-5, Block-B, Monsurabad R/A, Adabor, Dhaka-1217 Tel: +88 02 55093682 Email : info@textiletoday.com.bd Web : www.textiletoday.com.bd Printed by: VIP Printers, Fakirapool, Dhaka. The views expressed in the magazine are not necessarily those of the publisher or the editor. We have taken every effort to ensure accuracy. Bangladesh Textile Today does not accept any liability for claims made by advertisers or contributors. The publisher reserves the right to edit and publish any editorial material supplied and does not accept responsibility for loss or damages of any unsolicited material or contribution. Š All rights reserved to Amin & Jahan Corporation Ltd. 2018 Volume 11, Issue 07 (July 2018) Reg 8/2012, Dhaka.
Excellent hand feel Low temperature soluble Minimum effect on shade
For Better Tomorrow
Bangladesh ISSN 1999-2076 Reg. 8/2012 July 2018
Driving business with knowledge Bangladesh Textile Today
Volume 11 |
Issue 07 |
www.textiletoday.com.bd
BDT 150, USD 10
On the Cover
See advertisement at page 05
See advertisement at page 17
Demographic dividend- resisting outbound remittance
The impact of trade battle between the US and China on apparel industry
“Manufacturers and buyers both should take responsibility for ensuring fair product”
How an effective innovation hub can help the sector to survive and grow amid rocket high cost of manufacturing
See advertisement at page 13
July 2018
TEXTILE AUXILIARIES
DIAMONTEX P Premium Pigment Inks
ZSCHIMMER & SCHWARZ Mosdorf GmbH & Co. KG is a well know Germany based textile auxiliaries and specialty chemical manufacturer. Their high performance auxiliaries are easing the textile finishing process.
Content
ISO 9001:2015 GOTS Approved Global Organic Textile Standard (GOTS 5.0)
Advertisement
Editorial
Country Profile
Wages to be doubled
Accounts 9.4% of the country’s total exports
The 3rd largest clothing supplier to the EU.
Loosing competitiveness Fuel prices to be doubled
12-15
July’ 18 |
High cost of doing business
How an effective innovation hub can help the sector to survive......
Cover Story
BSHRM gets new executive committee
Retailers Today
Expecting 8-10% increase in clothing exports in 2018
An overview of Turkish textiles and clothing industry
39
Islamic fashion school teaches modest .....
Collaboration Today
Sustainability Today
34-35 16-20
Issue 07
Textile People
39
The 6th largest clothing's supplier in the world
32-33
Volume 11 |
Everlight-ZDHC Seminar 2018 offers sustainable solution for Bangladesh’s .......
Demographic dividend- resisting outbound remittance
38
Top Story
42
Lindex-WaterAid launched project to improve RMG worker’s health
Factory Tales
9 organizations join ZDHC ‘Roadmap to Zero Program’
Editorial Mor e su
Individuals attraction stai
na
ble
bu
sin
es s
Grab the target market
22-24
The impact of trade battle between the US and China on apparel industry
Market Analysis
26
Bangladesh’s apparel exports to India up 115% in FY18
Cover Plus
40
Cotton 2040, new guide to help brands source sustainable cotton
Textile World
36
Vietnam’s textile sector jumps to 5th position in the world
Remediation Update
ease Incr
Strong position in industrial community
Employee branding
sells
More buyer attraction to buy products
End users loyalty
End users loyalty
45
Prospects of branding and marketing for textile manufacturers
Market Analysis
48-51
Market diversification for further RMG export growth
Spinning Today
27-31 Manufacturers and buyers both should take responsibility...
38
90% remediation of Alliance factories is complete
52-54
Maksons Spinning’s example of ensuring high-quality yarn ...
Textile Today and
‘Sustainability’ Being a Bangladesh based global media; Textile Today has been catalyzing the textile and apparel industry to be more knowledge driven. Recently ‘Textile Today’ has been celebrating 10 years of its publication and has declared below mission with in their theme ‘Driving Business with Knowledge’:
Branding Bangladesh Textile & Apparel Human Capital Transformation Promoting Sustainability
Textile Today
special supplementary on ‘Sustainability’:
‘Sustainability’ being one of the three pillars, Textile Today has taken special initiatives in helping companies promoting their ‘Sustainable’ interventions. Publication of special supplementary magazines in four different categories is one of such initiatives.
On the occasion of 10 years celebration of Textile Today four special supplementary magazines will be published in 2018. These are
Last date of Advertisement/Advertorial Booking: 15th August, 2018 Last date of content submission: 31st August, 2018
Last date of Advertisement/Advertorial Booking: 15th August, 2018 Last date of content submission: 31st August, 2018
Last date of Advertisement/Advertorial Booking: 31st July, 2018 Last date of content submission: 15st August, 2018
Last date of Advertisement/Advertorial Booking: 15th December, 2018 Last date of content submission: 30th December, 2018
Individual/companies can submit: Editorial, Case Studies, Results of piloting, Feasibility reports, Product/Service analysis, Interviews, News & Views etc.
Will be widely distributed in
Contact-
M. +88 01775 999 748 | E. info@textiletoday.com.bd
Content Technology Today
54
BRÜCKNER launches new production facility in Tittmoning, Bavaria
July’ 18 |
Denim Today
Technical Textile
64
78-79
Agami Washing Ltd focuses on innovation in product development
Exclusive Interview
Bangladesh RMG sector should go for price fixing policy…
Issue 07
Manufacturers need to invest in digital continuity
Textile People
68 55-58
Volume 11 |
Ananta Garments Ltd. bags ‘H&M Denim Brands Award 2018’
Textile Icon
80
Prof. Nabi Khan selected for the international ‘Holden Medal Award’
Textile World
Factory Tales-Textile Icon
66-68 59-60
Fashion trade is being diverted to online following .....
80 If Bangladesh could fix some policy, it can be the main player.....
83
63 70
Quality assurance in printing, the Square Fashions’ model
Lyocell fiber market to hit $1.5bn by 2024
Fiber Today Milk fiber extracted
The yarn is used in art
Making Tows
UBC discover process to eliminate wrinkling in textile composite manufacturing
Circular Fashion
86
‘Worn Again’ to accelerate its patented recycling technology
88
H&M profits shrink in first six months of FY 2018
Sustainable Fiber
77 Factory Award
Technical textile
Printing Today
Manufacturing with Pride
‘Denim Expert Ltd.’ becomes the first SAC member among apparel makers from Bangladesh
Huntsman Textile Effects bags two DMAI awards
Sustainability Today
92
Price should be increased considering huge .....
Dyed milk tows
87-88
Milk yarn
16 apparel companies received national export trophy for FY 2014-15
72-74
Properties, production and use of milk fiber
News & Analysis
92
Huge gap in workers’ and owners’ proposition for minimum wage
Editorial
How an effective innovation hub can help the sector to survive and grow amid rocket high cost of manufacturing The business models and marketing also has to be aligned with the effective management system. Gamechanging ideas in design, process and product alteration should be encouraged. Besides innovation in process and organization build up is a must. Tareq Amin The reality While minimum wage increase has become imminent and another big increase in gas price is to hit very soon, the owners of textile and apparel factories in Bangladesh feared a severe aftermath. Many expressed that this time the industry won’t be able to absorb these shocks. Increasing cost of raw materials like cotton, dyeschemicals etc. is to make the situation more complex. Current government before it starts asking vote for next election will increase the wages for private sector workers including textile and RMG sector. As the government already has increased the salary of government workers, the increase in the private sector is inevitable. Increasing cost of living in Bangladesh has already made the lives of such workers very difficult. In this perspective, while workers’ representatives are asking for a living wage, the industry owners are in fear of losing competitiveness if they have to pay more than 30% they are paying now. The workers’ representatives are asking to almost double it up. While Bangladesh’s main competitive So, not only the cost of human operations is going to be doubled within few months but also the cost of machine operations will be doubled. All together the textile and apparel industry who are already struggling with increasing cost and lack of profitability will fall in a dire situation.
12
Wages to be doubled
Loosing competitiveness Fuel prices to be doubled
High cost of doing business
Figure 1: Major cost increasing components are going to dry out the competitiveness of Bangladesh textile and apparel industry.
advantage was cheap labor, after increasing wages, the wage will no more remain at the bottom among the key competitors. At the same time to support the government’s ambitious plans, the country is quickly becoming import dependent for its fuel and so the cost is increasing at an unbearable rate. A country where the garment industry came mainly because of the availability of abundant cheap natural gas; now it is becoming dependent on LNG, the costliest form of natural gas. To cover up the huge cost of LNG, the government has declared the plan to increase the gas price for industries. Most likely it will almost be doubled. Eventually, the cost of electricity is on the rise as well. So, not only the cost of human operations is going to be doubled within a few months but also the cost of machine operations will be doubled. Altogether the textile and apparel industry who are already
struggling with increasing cost and lack of profitability will fall in a dire situation. Being a cotton based industry, Bangladesh textile and apparel industry is heavily importdependent for its raw materials like cotton and other fibers, other input materials like dyes-chemicals and machinery. Prices of almost all above-mentioned input materials have increased significantly in recent times. Factories are struggling with the latest order portfolio for saving pennies. They are also concerned about upcoming orders, whether they will get an upcharge from buyers or not. Other operational and system related costs are also on the rise. As gigantic infrastructure projects are not yet in the position to sooth traffic conditions around industrial zones, and as the Chattagram port is struggling with inefficiencies, cost of
Bangladesh Textile Today |
Volume 11, Issue 07
Editorial
transportation and shipment has increased significantly. Due to weight limitation in two major bridges in Dhaka-Chattagram highway the loading capacity of cargo trucks has been halved already. All together transportation and shipment cost has been doubled and in some cases, it has been tripled. All the above realities have brought up a burning question to the industry how to cope up with this situation to continue to do business. There have been some traditional ways of tackling such situations in the industry. Some of them were effective enough for them to survive in short-term but now it seems a real-time has come to make a real effort in the expected transformation to survive amid these challenges and also to continue to grow, otherwise the sector may collapse. The solution There has been a trend, when profitability went down, companies asked for a new loan from banks to buy new machinery to increase production capacity to increase production. The main objective was to keep the total profit on the rise even though the rate of profit goes down. With larger and vertical operations factories could reduce overhead management cost and add fractions of profits from different processes those they were outsourcing previously. Meanwhile, such unplanned expansion and lack of focus on ‘core competence’ have made such factories severely vulnerable. Many such factories are running and making losses every day now. Today they have no other options but to invest in increasing management and production efficiency to save their plants. Importance of manufacturing excellence or efficiency has been discussed well in Textile Today April 2018 issue. The practical example shows small changes could help save an amount equivalent to the total salaries
14
Resource Efficiency
Design in Product & Process
Branding & Marketing
Adopting Technology & Automation icon
Effective Management for Increasing Competitiveness
Figure 2: All major ways of increasing competitiveness depend on setting up effective management
Management is a top down approach and culturing accountability and openness to continuous improvement. The strategies, vision, goals, and ways to achieve the goals should be decided and analyzed at the top most level of the company. An effective communication culture should prevail within the organization. This is the time for textile and apparel companies here to invest more in improving management efficiency than any other things.
belated management decision affects much more than a lethargic less motivated workforce. Management is a top-down approach and culturing accountability and openness to continuous improvement. The strategies, vision, goals, and ways to achieve the goals should be decided and analyzed at the topmost level of the company. An effective communication culture should prevail within the organization. This is the time for textile and apparel companies here to invest more in improving management efficiency than any other things.
of a garment factory. As a laborintensive industry importance of production efficiency is well accepted. Bangladeshi apparel manufacturers now keep industrial engineering departments at their factory. But there is no doubt still the companies have a lot others to do. However, for any effective improvements in production efficiency, efficient management is a must. A proper efficient management is much more important than production efficiency. While the efficiency of Bangladeshi workers is 77% (considering Chinese 100%), the management efficiency is definitely much lower. A bad and
Increasing management efficiency not only means sending the next generation for pursuing education abroad and then waiting for him or her to come back and take the responsibility of an inefficient plant. Or it doesn’t mean hiring a foreign employee and depending on him. Or it also doesn’t mean purchasing the most sophisticated and costly management automation software. A proper effective management means it itself will create experts and leaders but the system will run smoothly without leaders. Textile and Apparel company owners should not be fear of the fact that the people behind whom they will invest and if they leave they will lose everything. This is a wrong
Bangladesh Textile Today |
Volume 11, Issue 07
Editorial
A culture of continuous learning has to be developed. Knowledge has to be produced and disseminated within the companies. Companies have to be connected with external knowledge hubs. What Textile Today can offer?
Figure 3: Three major area of work of Textile Today that can keep competitive advantage of Bangladesh textile industry mitigating major challenges it is currently facing.
thinking. Companies should invest in developing a system which is established by men and women and at the same time can sustain itself and create alternatives within. Truly investment has to be behind the human, but it itself will not depend on any individual human only. A human system should be taken care of and cultured. However, decision making for investing in effective management is not been easy for company owners. They have seen many failed cases. There are examples where high paid charismatic managers left the company leaving the company owners in difficulties; they also saw how huge investment behind management software simply bounced back. A careful visionary look and plan is needed in proper strategy taking in setting an efficient management. The system should have in-built capacity to save every waste, at the same time it should culture the practice of spending lot for taking out breakthrough ideas. Knowledge management and innovation system within the companies are
Bangladesh Textile Today |
A proper efficient management is much more important than production efficiency. While the efficiency of Bangladeshi workers is 77% (considering Chinese 100%), the management efficiency is definitely much lower. A bad and belated management decision affects much more than a lethargic less motivated workforce. must for being vibrant, adaptable and progressing. It is true that investment behind innovation requires careful risk study. But for Bangladesh textile and apparel companies, it is not at that sophisticated level. It is more like common sense innovations. The business models and marketing also has to be aligned with the system. Gamechanging ideas in design, process and product alteration should be encouraged. Besides innovation in process and organization build up is a must.
Volume 11, Issue 07
At this crossroad of the industry, the importance of an effective innovation hub should be well understood. Companies and professionals should come forward to strengthen such knowledge platform. Textile Today is working relentlessly to establish such an effective hub. With a motto and slogan ‘Driving Business with Knowledge’, Textile Today could eventually prove itself as a trusted and responsible partner of the industry. Currently, Textile Today is working in three main streamlines: 1. Transforming Human Capital, 2. Branding Bangladesh Textile and Apparel, 3. Promoting Sustainability. Training programs and knowledge workshops are to help the sector in transforming its human capital, which is the core of any changes whether it is small savings or an upside down change of the game. Factory Tales initiative is incorporating a great team to help Bangladeshi Textile and Apparel companies in setting and implementing a branding strategy. Besides Textile Today wants that Bangladesh becomes a sustainability ambassador in the textile world. And so Textile Today with all its activities and events is promoting sustainability is creating an industrial base that is strong reliable trustworthy and sustainable. Herewith the Textile Today team presents another issue of Textile Today magazine representing the hard work of the team and all men and women within the sector. We welcome all owners and professionals of the industry to subscribe and to be associated with Textile Today by all possible ways.
15
Cover Story
Demographic dividendresisting outbound remittance
Conventional education system and insufficient technical professional orientation make our university graduates uncompetitive and worthless in the technical job market
AKM Asaduzzaman Patwary, Research Fellow, Head of R&D, DCCI. we have 1.8% Managers, 3.8% Professionals and 1.9% Technical experts of total workforce. This small percentage of manager and professionals in Bangladesh indicates huge gap of hard and soft skills that the industry need in Bangladesh. This incremental gap challenge innovation led industrialization and other spillover incidence across our economy. This skill gap in the managerial and technical positions especially in RMG, Textile, Power, Pharmaceuticals, ICT, construction, ship building, automotive infrastructure work and consultancy sector have created a window of opportunities for foreign professionals in our local job market with better pay for competitive and international standard quality skills.
Nowadays increasing population is considered as the blessing for any economy. China having 1.06 billion people has created huge economic and demographic dividend and transferred the benefits of demographic dividend in rest of the world and almost all populous economies have undergone this economic transformation. In the changing complex global economy, countries need to be equipped with industry driven technical, managerial and professional skills for better utilization and human capital leverage to retain competitive edge in industry. Managerial, professional and technical skills are always important for any developing countries for fostering innovation, creating business opportunities, increasing productivity, integrating global value chain, tapping future
16
prosperity, and creating jobs. The demographic advantage and skill gaps in Bangladesh With the changing global trend, demand of managerial and professional soft skills is on the rise in Bangladesh. Bangladesh today is the 8th largest country in the world as per latest population estimate. Bangladesh is going through this prime era of potential demographic benefit but to realize them, we are required to improve multidimensional young working force development. The huge population has unfolded an avenue of demographic dividend with 62.1 million working age population. Of the total population, about 59.5 million are employed in various public-private sector skilled, unskilled and semi-skilled jobs in industry, service and agriculture sector. The labor force survey Bangladesh 2016-17 showed that as per occupation distribution-
Demand and supply gap of managerial staffs Our economy is progressing with 7% plus GDP growth based on consistent economic operation trend. The export earning and remittance account for large pie
of our growing GDP. Bangladesh is set to become Middle Income country by 2021 and developed country by the Year 2041 based on skills, research, technology and innovation led knowledge economy. The on-going economic growth of Bangladesh created huge need for managerial and professional skills to meet the growing industrial and service sector needs. Unfortunately, our education system does not comply the industry-demand with requisite skills as University backed Higher education and scattered vocational education of Bangladesh are not aligned industrial orientation.
Bangladesh Textile Today |
Volume 11, Issue 07
Cover Story
This weak state of the skill supply has opened up the opportunities for foreign employees to be migrated into Bangladesh for meeting our needs. The current employment growth is 1.8% whereas it was 3.1% between years 2003 to 2010. This severe fall of employment growth has become a matter of deep concern for all. Labor force state in Bangladesh •T he rate of youth unemployment is 10.9% and underemployment is 18.7%. •T he workforce of Bangladesh will surpass 76 million by 2025. • 1 2.9 million new employment under 7th five-year plan and 10 million employment through EZ development targeted. •A ccording to “Labour Market and Skill Gap in Bangladesh” labor demand will be 88.7 million in 2025. •T he study projected that demand for skilled workers in agro food sector will increase to 261%, in construction sector 54%, in healthcare sector 54.95%, in hospitality and tourism sector 35%, in IT sector 100%, leather goods sector 107%, light engineering sector 76.95%, in RMG sector 122.6%, and in shipbuilding sector 677% in FY2025-26 and skill gap for “skilled workers” is also high (40%) in the IT and leather sectors. •P roductivity of our workforces is 77% considering Chinese workers 100%, which is lower than our major competitors India 92%, Vietnam 90% and Pakistan (88%) indicating the lower productivity and efficiency. •A round 5.5 million new entered into labor force whereas only 4.57 million have got employment as per employment labor survey. The graduate unemployment is around 11% in the country and post-secondary unemployment is around 6.4%. The demand of foreign workers & experts Against the aforesaid state,
18
Demand of skilled workforce in Bangladesh by 2025 Agro food
Construction
Health care
Hospitality & tourism
IT
Leather goods
Light engineering
RMG
Ship building
677
261 54
54.95
35
100
107
76.95 122.6
Increase in demand of skilled people(%) of communication. The outbound remittance scenario hardly comes into the light as people thought the amount was very insignificant however the recent news in an Indian Newspaper Daily Industry is very alarming that Bangladesh is the fourth largest source of inward remittance for India sourcing $10 billion annually from formal source though Indian total inbound remittance is $69.1 billion.
government initiatives National Skills Development Council relating to skills development shows the commitment of the government to address the current weakness and much needed improvements. Nowadays, local skilled people are few in number and mostly being migrated to many countries and local owners hardly rely on local skilled workforce and that create the opportunities for foreign employee in many technical jobs especially in Textile, Steel re-rolling, merchandising, pharmaceutical, infrastructure and other heavy technical and hightech sectors. Technical experts mainly are from India, Sri Lanka, China, Japan and South Korea and the Indians are highly preferred as there are some commonalities in culture, lifestyle and convenience
The recruitment of foreign employees cost huge budget to the local employers and increase the cost of doing business as well create external dependence. Our conventional education system and insufficient technical professional orientation make our university graduates uncompetitive and worthless in the technical job market ending up with low-paid job and joblessness in many instances. It is common in our tertiary education system that students are keener to business and social science education and to some extent the ICT education that create grossly specialized skill shortage in core technical sectors in Bangladesh. The aforesaid projection of labor force in Bangladesh demands new skill development in various major sectors and industries accordingly we are required to undertake programmes to address the large scaled demand of sector specific skilled workforce from agriculture to service sector. The education system has to be aligned with the industry needs through consultation with relevant industry otherwise, we will gradually loose our local job market. Bangladesh is one of the highest outbound expatriate workforce nations having almost 9 million workforces abroad. Bangladesh marks double growth of labor migration in 2017 more than from 2015 and this year it reached to 3.92 lakh so far as per BMET.
Bangladesh Textile Today |
Volume 11, Issue 07
Cover Story
India is the largest remittance recipient country followed by China and Philippines in world remittance market and Bangladesh ranks 8th position in league table. Due to soaring demand of skilled foreign workforce, Bangladesh is losing the attention of global market as skill labor destination. Remittance state of Bangladesh Today, lack of diverse skilled workforce is slowing the inward foreign remittance trend and increasing outward remittance. Bangladesh received usually $14.5 billion per year and much of that is received from GCC region and mostly from KSA. Qatar and Oman have recently come up as large remittance partner of Bangladesh in recent years. The lion share of our remittance is gained from the unskilled and semi-skilled workforce working abroad. The remittance earned is likely to be challenged due to recent ban of labor export into Malaysian market and volatile GCC diplomatic relation and replacement of foreign workforce by local people in job market in KSA. For attaining sustainable growth of an economy and improving the living standard of its people, the
role of skill development cannot be overlooked. Skill development not only enhances individual’s capacity of earning, but also transforms the nation’s workforce into a more productive contributing towards the growth momentum of an economy. The remittance inflow of Bangladesh is always volatile as recorded over last couple of years since our remittance market is mostly middles east dependent and low and unskilled labor recruitment ban in KSA for a certain time thinned our remittance health. The remittance scenario of Bangladesh during each quarter in FY2016-17 hovered around $3 billion, which was flexible and unhealthy and turns to recover in FY 2017-18, the frequent change is not inspiring for our country. Outbound remittance The outbound remittance scenario hardly comes into the light as people thought the amount was very insignificant however the recent news in an Indian Newspaper Daily Industry is very alarming that Bangladesh is the fourth largest source of inward remittance for India sourcing $10 billion annually from formal source
though Indian total inbound remittance is $69.1 billion. In addition, this news is blow to our local unemployed youths and economy though we were often told that remittance to India was around $5 billion but this exclusive news is not acknowledged by our Government. Bangladesh was the fifth largest remittance-sourcing nation in 2014. The outbound Indian remittance remains within $9 billion and mostly spent in education spending, living, travel maintenance. There was a saying that the formal trade of India and Bangladesh is around $6.5 billion with positive trade balance however if we consider informal trade, the size of trade could be $7 billion plus. In the same line, if we consider the informal outbound remittance source, Indian bound remittance will exceed the given amount. The report of Newspaper also showed that Indian workforce has relatively low earnings from KSA and other Middle East Countries whereas higher earnings from USA as more Indians work in USA to support their high skill gap but the remittance of Bangladesh from USA is very insignificant as our labor market is tailored at low
Bangladesh remmittance earning from the world
$14.9
billion in 2017
Indian remmitance earning only from Bangladesh
10
billion in 2017 Figure: Double-edge Challenge for Bangladesh
Bangladesh Textile Today |
Volume 11, Issue 07
19
Cover Story
skilled Middle east region not for high skill jobs in western market. The double-edged challenge We have double-edged challenge in remittance shift-the slimming inbound remittance and likely decline due to various geopolitical challenges on Bangladesh and on the other hand, retention of the inbound remittance tends to decline as more foreign currency is going out of the country. Off late, the negative trade balance and current account balance affect the foreign exchange reserve where the remittance is an element of primary earning. Our conventional attitude to low skill labor market target has become suicidal and deprived us from high value skill migration market orientation since long. The recent trend of soaring import and extreme dependence on foreign consultants in our infrastructure projects, soaring dollar value have declined foreign exchange reserve and this growing outbound remittance will be another blow to our foreign exchange reserve. Meanwhile, due to negative trade and primary and secondary income, the current account balance is badly affected and government is working hardest to manage it through MPS tools. Since our import is larger than export, the growing outbound remittance may shorten our currency reserve and decline our net earnings from hard earned remittance in Bangladesh. Steps to be taken Despite all above, we are optimistic that our gradual development in education sector will positively change our skill and management employment perspective in Bangladesh. And, we are required to get rid of external dependence of technology transfer on almost all countries but this will take time. But, we can rely on some skill transferred from overseas for our learning on short-term basis.
20
Taking into account our economic, incremental industrial and international labor market needs, we are required to take the focused programmes and some course of actions to improve our skilled employment scenario in Bangladesh and resist the rising outbound remittance flow: •L ocal University graduates are to be prioritized in skilled mid and upper level position in major industrial sector. •E mployees in operation level should be limited to only local
•B uilding Industry and academia partnership to meticulously deal this skill gap and development challenge. •F or increasing our migration in developed and other potential countries, our training institutes is required to be equipped with curriculum and capacity aiming at foreign market needs. •V ocational training schools are to be widespread in each upazilla across the country. •B road-based skill development catering futuristic local and international labor market needs is to be planned and enforced accordingly.
The recent trend of soaring import and extreme dependence on foreign consultants in our infrastructure projects, soaring dollar value have declined foreign exchange reserve and this growing outbound remittance will be another blow to our foreign exchange reserve.
•L iteracy and numeracy skills are essential for our outbound labor force so that they remain safe in earning and existence in overseas.
employees and Indian work migration can be selective subject to special need and permission. •G radual phase out of foreign employees through higher tax on their income and income transfer. •F or local skill development and retention, ToT can be introduced for specialized skill jobs. • I ndustry/GDP ratio is estimated 40% by 2030, 35% by 2021 and export revenue $54 billion by 2021. In order to realizing these huge targets, we are required to have coordinated and shared programme having Industry, labor, Finance and Education ministries to create, nurture incountry wide-ranging skills and engage them into industries.
Skill development is the core priority of the government as the enabler of multiplier socioeconomic operations and excellence accordingly government is to come forward to bring necessary changes, programmes and relevant budget and infrastructure in national budget to address the core issues and challenges in this connection. Bangladesh envisioned $117 billion from remittance by 2041 and this target will remain far-cry and if this outflow trend gets richer due to negligence at highest policy making level therefore a nexus of demographic dividend and skill building is essential for all upcoming industrial and economic well-being. With the given concern of soaring outbound remittance, we are required to implement a futuristic national roadmap entailing local skill mapping and remittance enhancement programme to implement in line with national economic development agenda by year 2030 and 2041.
Bangladesh Textile Today |
Volume 11, Issue 07
To p S t o r y
The impact of trade battle between the US and China on apparel industry Ashfaque Ahmed, MSc. (University of Manchester), MBA (IBA- University of Dhaka) Director, Promoda Textiles Ltd. Introduction China and the United States are the two biggest economies in the world. In 2010, China toppled Japan to become world’s 2nd largest economy. According to the Center for Economics and Business Research, China is expected to take over the US as the world’s largest economy. Thanks to the China’s comparatively cheap labor and government policy that helped the economy to tremendously grow after its entry in globalization in 1990. At that time, the US supported China’s inclusion in the WTO (World Trade Organization). Today they are thinking that it was a wrong decision to help China. After the economic turndown in 2008, the Obama administration had taken various steps to recover it. United States’ huge spending to fight terrorism in Afghanistan, Iraq, Libya, and in Syria made things too difficult. That is why, in the election campaign President Donald Trump announced to take measures to increase the productive development in the US. A new tariff on the Chinese goods might cause inflation in the US, however, at the same time commentators expect a rise in American jobs specifically in high tech industries. As quick responses to the US impose of tariff, China has also announced of implementing tariff on the same value of American goods for China. This trade war between two biggest economies will affect the global economy in big scale. It is for certain that
22
whatever two governments are doing is good for neither the general people for each country nor for the related industries in each country. What the US and China think about it? President Trump promised to levy against China over intellectual property concern. Based on that on 29 June US implemented $34 billion worth of tariffs on Chinese
its practices, the President has ordered USTR (United States Trade Representative) to begin the process of imposing tariffs of 10% on an additional $200 billion of Chinese imports. It is the appropriate response under the authority section 301 to obtain the elimination of Chinese harmful industry practices”. In response, Chinese Minister of Trade said, “It is totally unacceptable for the US to publish the tax collection list in
Figure 1: The trade battle between China and US is hurting the world and themselves.
imports. Another $16 billion tariff was already in the pipeline. This will include solar panels, refrigerators, washing machines, etc. No sooner the announcement was made China also imposed tariff of equal $34 billion worth of goods coming from US to China. Robert Lighthizer, US Trade Representative expressed with anger that was done without any legal basis or justification. In a statement Lighthizer said, “As a result of China’s retaliation and failure to change
an accelerate upgrade. We express of solemn protest. This behavior of the US is hurting China, hurting the world, and hurting themselves. In order to safeguard the core industry of the country and fundamental interest of the people, the Chinese government will, as always, have to make the countermeasures.” What are in the $200 billion tariff list? The list is available in USTR’s 195 pages report includes the bulk of
Bangladesh Textile Today |
Volume 11, Issue 07
To p S t o r y
what consumers would buy from the supermarket plus much of the raw materials that go into what they would buy to wear. Cotton and all the things related with textile production (cotton yarn, cotton sewing thread, cotton woven fabric, cotton waste) will face 10% of tariffs for companies that would bring the goods from China. Nylon yarn, polyester yarn, viscose, jute, hemp, and pulps of cellulosic materials are also in the list. In addition, coconut and other vegetable fibers companies are turning it to sustainable raw material alternative. Laccases dies fabric across most raw materials, non-woven, terry fabrics, lace, tulle, and leather are on the target list. Apparel and clothing accessories made of plastic, plastic vulcanized rubber, fur skins, and cellulosic fibers will also face new tariffs. As far as accessories, handbags, sport bags and travel goods like suitcases and vanity cases will face tariffs. There will also be tariffs for shoelaces, hooks, eyelets, and polishes for leather goods. Furthermore, brands and retailers will pay for the packages they import too, Collie, garments label, folding cartons, boxes, packing consultancy, etc. on the list. Why US want to put tariff on Chinese goods There are several reasons that US put tariff on the Chinese goods. It is a big part of election campaign of President Trump to reduce the trade gap between US and other countries by restricting imports and increase US’s own productive sectors. Though it was announced almost two years from President Trump’s presidency but this aggressive announcement was not a surprise. It was the first effort to reduce a $337 billion trade deficit between US and China. The initial part will impose a 25% tariff on $50 billion of Chinese goods, which are said to be, “industrially significant technology” [The
Bangladesh Textile Today |
Guardian, 29 May 2018]. The Western world was believed to lead the research and development for the whole world and lead the world with new technologies and advancements. The new tariff will cover goods
President Trump’s position was strongly supported by his trade advisor Peter Navarro who is the co-author of the book “Death by China”. Navarro later made it into video documentary to show China’s rise has suffered
The U.S. imports these products from china
29%
Electronics
22%
Machinery
6% 5% 5%
Furniture & bedding Apparel
Toys
Vehicles
Footwear Data: US International Trade Commission Figure 2: Products those are imported by US from China.
related to “Made in China 2025” program that the Trump administration believes to harm companies in the US and around the world. The policies included forced technology transfer that can be got from licensing at less than regular price, Chinese government’s acquisition of ‘strategically sensitive technology and cyber-theft’. Trump administration believes that many US jobs were lost due to globalization and unfair play by many countries including China. It was his main manifesto that saw him winning the 2016 Presidency election against the big time favorite Hilary Clinton. Most of the commentators said that it was bluster. However, Trump administration is adamant to put on swinging tariffs on Chinese goods and pull the US out of as many trade deals as possible.
Volume 11, Issue 07
US economy. In the 21st century, China’s export has grown by seven times today than that at the beginning of 21st century. It is at present world’s biggest exporter of goods with a value of nearly $2 trillion a year [Andrew Walker, BBC Economics Correspondence, July12, 2018]. Implications of trade battle Due to the impose of new tariff lines on Chine goods by the US the result will be significant for the apparel and footwear industries. There will be a general increase in price all through the supply chain. There is expected to be inflation on consumer products in the US Unfortunately, this has to be paid only by the American consumers. It is estimated that more than 84% of the US travel goods are imported from China. This will potentially affect the apparel,
23
To p S t o r y
footwear, and accessories brands for being expensive and struggle in the US market for being expensive. The items under apparel section were added in the latest round of tariffs. This came after a public comment period. It is of no surprise that a certain group of the US citizen believes that though there will be an increase in retail price but it would potentially bolster the domestic industry capable of making clothing and fashion. NCTO (National Council of Textile Organizations) appreciated the announcement of additional tariff and has suggested Trump administration to add more categories of finished textile and apparel into next tariff list. On the other hand, retailers are not happy with Trump’s latest tariff move. They think that this crazy strategy would account for $200 billion worth of Chine products subjected to tariff that could potentially hit back to harm US families and workers. Again, the Chinese retaliation could destroy ‘millions of US jobs, hurt farmers, local businessman, and entire community’. The tariff battle and Bangladesh apparel industry Today, we are living in a global economy. A fair trade between the countries must serve the best interest of everybody. John Divine, Senior Investing Officer at US News and World Report describes the US economy in the light of tariff war ‘as Pandora is out of its box’. Apparel industry will take a big hit in the light of US’s $200 billion in tariffs on China. Due to globalization no country has the internal capability to match global efficiency for the production of goods and services. Therefore, when we can avail ourselves of the global efficiency then it is comfortable for the people of a country to get something easily at a low cost. For example, due to cheap labor cost in Bangladesh a T-shirt is much cheaper in Europe than a burger. For the same reason,
24
hi-tech telecom and internet services can cheaply be provided to the people of Bangladesh in a free trade economy. With added tariff on Chinese goods and when it comes to apparel, the landed price for the China made goods will be higher compared to others. In that area, the next countries can compete to take as much as from those are lost by China. Therefore, it is not difficult to understand
in Bangladesh may face a little more competition but with the transfer of fast fashion category, they may assume to be stronger. If Chinese producers making for US are hurt they will aggressively seek for new markets in Europe, Latin America, Australia, Far East Asia, etc. where suppliers from Bangladesh will experience a little more difficulty. Now question is that in the event of growing landing cost of the Chinese made apparel- will Bangladesh be able to catch those orders rebounded from China. With no preparation Bangladesh would most likely start to day dream, however, substantially will not be able to get any benefit from there. Just look at the US business at present in Bangladesh. Walmart, Sears, JC Penny, GAP, Levi’s, Phillips Van Heussen, etc. all these businesses are being controlled from business hub in India. Therefore, Indians are getting most of the benefits out of these US retailers.
With added tariff on Chinese goods and when it comes to apparel, the landed price for the China made goods will be higher compared to others. In that area, the next countries can compete to take as much as from those are lost by China. Therefore, it is not difficult to understand with such tariff on Chinese apparel the export and price of Bangladesh apparel is expected to increase.
Apart from these most of the US importers want to buy in a LDP (Landed Duty Paid). Bangladeshi exporters do not want to accept this payment system. It is true that they can go for secured payment under LC and shipping term FOB. But if we do not try to be competitive by accommodating customer’s term then we slowly loose the US market which consumes two third of world economy.
with such tariff on Chinese apparel the export and price of Bangladesh apparel is expected to increase. At the same time, when Chinese garment factories will lose business then Chinese textile mills have surplus raw materials such as yarn, fabrics that will be sold in Bangladesh at a more competitive price as a result of competition among Chinese mills. Therefore, there is a slight chance that the woven fabric mills and denim mills
Bangladesh government and BGMEA must start negotiating with the US to qualify for FTA (Free Trade Agreement) and start preparing financial package so that our manufacturers can work under LDP/ Cash on Delivery as secured as FOB/ LC at sight. Otherwise, there will still be influx of US orders being controlled by Chinese and India importers. Those orders will have no price because most of the margins will be taken away by importers in their pocket.
Bangladesh Textile Today |
Volume 11, Issue 07
EXCELTEX
Exclusive Silicones! Ultimate Everytime
Breaking the body with Exceltex Exceltex , a true micro-emulsion imparts maximum inner softness, transforming a normal fibre feel into a micro fibre feel on,knits,cotton woven,garments & printed fabric. It has excep eaking ability f or printed woven. BRITACEL SILICONES LTD. F-18, 'F' Block Road, MIDC, Marol, Andheri (East), Mumbai-400 093. Tel: +91-22-40094000 Fax: +91-22-40094003 An ISO 9001:2015,ISO 14001:2015, OHSAS 18001:2007 CertiďŹ ed Company.
* GOTS approved. * Reach Pre- registered. * Blue Sign system partnering in process. * ZDHC certiďŹ ed. * Green Screen bench marking under process.
Contact Person: Mr.Arindam Choudhuri Mobile No : +91 9987012984 Email: arindam@britacelsilicones.com
Market Analysis
Bangladesh’s apparel exports to India up 115% in FY18 Special Correspondent Bangladesh’s apparel exports to India, a close competitor in the global markets, have seen a sharp rise by 115% to $279 million in the last fiscal year. Exporters and trade analysts attributed quality and reasonable price of clothing products for the sharp rise in export earnings. In fiscal 2017-18, Bangladesh’s RMG exports to India stood at $279.19 million, up by 115% compared to $129.81 million in the FY17, according to the Export Promotion Bureau (EPB) data. Of the total amount, Knitwear products earned $71.05 million, which is 89.75% higher than the $37.44 in the same period a year ago. Woven products earned $207.62 million, up by 124.79%, compared to $92.35 million a year ago. On the other hand, Bangladesh’s overall exports to India have registered a 29.87% growth to $873.27 million in the FY18. “Bangladesh apparel exports to India have seen a sharp rise, it’s
However, the export earnings from the neighboring country could be more, if the non-tariff barriers are removed.
Figure 1: Bangladesh’s apparel exports to India have seen a sharp growth of 115% in FY 2017-2018.
a good sign for Bangladesh. Due to competitive price and quality, demands of Bangladeshi products increased in the Indian markets. As a result, exports earnings rose significantly,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said to Textile Today. On the other hand, global brands are opening outlets in India and sourcing from Bangladesh, which may be another reason for the recent rise in export earnings from India, said Salam, a Former President of Bangladesh Garnishment Manufacturers and Exporters Association (BGMEA).
300
279.19
200
100
136.42 96.95
129.81
104.25
50 0
2013-14
2014-15
2015-16
2016-17
2017-18
Figure 2: Bangladesh apparel exports to India from FY14 to FY18 (in US$ million).
26
In tapping the opportunity, Bangladesh government has to boldly negotiate with the Indian government to remove non-tariff trade barriers, said AB Mirza Azizul Islam. He also suggested a common standard, which will be effective in all provinces in India to ship goods. “Non-tariff barrier is a great challenge for Bangladesh to expand exports volume as well as value. In taping the opportunity in Indian markets, Bangladesh has to focus on harmonizing common standards for trading,” said Mohammad Hatem, Former Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The government should stress on improving the bilateral trade relationship between two friendly countries. On top of that, Bangladesh has to improve the connectivity with the boarder area such as with seven- sister to grab more market share in India, he added.
250
150
“India is a very potential market for Bangladesh as it has the second largest population after China. While there is middle class with handsome disposable income,” former caretaker government Finance Advisor AB Mirza Azizul Islam said to Textile Today.
The trade deficit with India is the highest in the Asian region and exploring more opportunity in Indian markets, will help Bangladesh to reduce the traded gap, Mohammad Hatem added.
Bangladesh Textile Today |
Volume 11, Issue 07
Cover Plus
Manufacturers and buyers both should take responsibility for ensuring fair product……. Maintaining the economic growth is a big challenge for Bangladesh. The country needs to diversify its exports, as it is severely dependent on garments sector. Said H.E. Rensje Teerink, Ambassador of the European Union to Bangladesh H.E. Rensje Teerink, Ambassador of the European Union to Bangladesh
Bangladesh Textile Today |
Volume 11, Issue 07
European Union (EU), one of the main export destinations for Bangladesh Ready Made Garments (RMG) products, is the largest trading partner accounting for more than 25 percent of Bangladesh’s total trade. The EU works closely with Bangladesh in the framework of the EU-Bangladesh Co-operation Agreement, concluded in 2001. This agreement provides a broad scope for co-operation, extending to trade and economic development, human rights, good governance and the environment. EU imports from Bangladesh are dominated by clothing, accounting for over 90% of the EU’s total imports from Bangladesh. H.E. Rensje Teerink, Ambassador of the EU to Bangladesh, in a recent conversation with Textile Today opens up about trade relation between Bangladesh and EU, safety condition in Bangladesh garment industry, labor rights issue, fair product etc.
27
Cover Plus
Textile Today: How do you see the economic growth of Bangladesh? Is it on the right track? H.E. Rensje Teerink: I think Bangladesh is doing very well. Bangladesh is one of the countries of South Asia that has sustained high growth more than 7 percent in the last few years, which is a very good trajectory. I think we are also very hopeful in seeing the whole graduation exercise to graduating from the LDC group and that should happen if this continues by 2024. I think this is quite commendable to see that this year there was a big ceremony for graduation that Bangladesh is one of the few countries that actually managed to attain the three criteria. This achievement needs to be maintained and has to be reassessed over the six-year period. It means that 2024 is the first date that the graduation can actually happen. Bangladesh has already attained a lower middle-income status in 2015. Therefore, I think we can be very optimistic but that does not mean that there are no challenges. I think the challenges are to maintain the growth; it is to diversify the exports as now it is very much dependent still on textiles of course and the garments sector but it is also attached to be a more crowded export market. Newcomers are also coming into the trade. So, for Bangladesh to maintain this position will be quite a big challenge. Thereby diversifications are needed; some sign of progress are already made in the pharmaceuticals. I think another important thing is to focus on inclusive growth, have to take everybody along. I think that is a little bit of a challenge for Bangladesh that it has not performed as good as some other countries in South Asia as per as inclusive growth is a concern. Bangladesh should also focus on other global vulnerabilities like climate change. All industrialists of the country need to take the
28
responsibility also. The number of young people entering the job market every year that would be another big challenge to provide job opportunity for these young people. Bangladesh needs to focus on social protection issues and EU is supporting Bangladesh with their development cooperation programs. EU is mainly focusing on primary and secondary education, including vocational education and training. EU also has a very large budget for supporting social protection. These are the important areas where EU can support Bangladesh.
EBA facilities can be withdrawn, if the European Commission sees any country which is privileged by the EBA, but that is not respecting human rights, turning back democracy etc. It is not that this is always guaranteed. I think for Bangladesh what is important is to make some progress to become fully ILO compliance. In terms of labor right, what we think is that there should be some changes in the labor law especially in EPZ. The labor should not be subjected to more exploitations as anywhere else in the country. Therefore, these are the things that need to be looked into.
Textile Today: Bangladesh will turn into a Developing Country from the Least Developed Country by the year 2027. How can Bangladesh prepare for the transformation? In which pattern EU-Bangladesh trade will be transformed after the transformation? H.E. Rensje Teerink: Normally few consequences are there related to this process. One is that the eligibility for funding as an LDC country will be disappeared. This will have an impact on ADB (Annual Development Budget), and the World Bank how they will provide loans etc. For the EU we have an instrument, which is called Development cooperation instrument. Once Bangladesh will have graduated, it will not be eligible anymore to receive this development funds. That is not to say that there will not be funds from other instruments for Bangladesh. We have partnership instruments like NGOs, nonstate actors etc. Especially in the investment program where we feel that we need to cooperate with the private sector also. So there will still be avenues for cooperation but there will no longer be development cooperation instruments as we have now. For which we have 700 million Euros for Bangladesh starting from 2014 to 2020.
Bangladesh Textile Today |
Volume 11, Issue 07
Cover Plus
There are also trade applications as well. Bangladesh is benefitting from ‘everything but arms skill’ under the GSP resume. That means quota-free and duty-free access to the European Union of everything from garments to pharmaceuticals except of course arms and ammunition. This will have to change and Bangladesh will have to apply for GSP+. EBA facilities can be withdrawn if the European Commission sees any country which is privileged by the EBA, but that is not respecting human rights, turning back democracy etc. It is not that this is always guaranteed. I think for Bangladesh what is important is to make some progress to become fully ILO compliance. In terms of labor right, what we think is that there should be some changes in the labor law especially in EPZ. The labor should not be subjected to more exploitations as anywhere else in the country. Therefore, these are the things that need to be looked into. Textile Today: What is your viewpoint on safety condition in the Bangladesh garment industry after the completion of the 1st phase of Accord & Alliance? How do you evaluate Accord & Alliance in terms of safety transformation in Bangladesh Apparel Sector? H.E. Rensje Teerink: Sorry to say, I have not been able to visit a lot of factories so far. It is my plan to do so. What we hear from our compact partners and from the Accord and Alliance as well is that an enormous progress has been made in many factories. Many factories also have been closed. Many factories have really managed to upgrade their facilities. Accord only looks at the export-oriented factories. It does not look into those factories that are producing goods for the local market. So, it’s not to say that the entire sector is totally safe. What we also hear that the factory safety is a long-term process. In
30
addition, slippages are also a part. It is not like that once a factory is safe, it will still be safe enough until next year. There should be regular inspections. I think there is the importance of Accord and Alliance to oversee this process. We feel that they should be allowed to stay in Bangladesh. Engagement can be done in a better way than they have done so far. Even BGMEA have realized their own interest to work together with Accord and Alliance. It has rebranded Bangladesh to an important extent also in Europe. After Rana Plaza, Bangladesh
I think there is a lot of responsibility for the buyers, because you cannot only one hand expects to have a fair product on the other hand squeezing ultimately the labors. On the part of the buyers, there are a lot of practices that are difficult to handle for the manufacturers like late orders or changes. Ultimately, I think it is the consumer that needs to be more aware. In Europe, this process is happening. I think the whole concept of fast fashion needs to go ultimately, because the concept is not eco-friendly.
suddenly became known as the sweatshop country where people were working on miserable circumstances. Now I think this is important to keep the image that a lot has changed. In addition, the role the government sector has played in uplifting millions of people from poverty and empowering especially the women who are actually the workers in the industry. Textile Today: Do you think that Bangladesh is capable of ensuring the safety in Garment manufacturing on its own?
H.E. Rensje Teerink: I think it is not a question of capability. I am sure Bangladesh will be capable. However important to be assured that whatever monitoring will be in the place they do it genuinely and transparently. Bangladesh has to make sure that the inspection will be done accurately. It is not a matter of technical capacity. What Ministry of labor is doing is training a lot of engineers to really be ready for that. However, the main question is, of course, to be honest with the inspections. The Industry really needs to continue on this path to be safe in future. Textile Today: Now at this moment, the cost of garments production in Bangladesh is increasing day by day. On the other hand, the EU buyers are asking for a lower price. Survivals have become very difficult for Bangladesh apparel sector. How could this problem be overcome? H.E. Rensje Teerink: This is a very big problem. I think there is a lot of responsibility for the buyers because you cannot only one hand expects to have a fair product, on the other hand, squeezing ultimately the labors. Workshops like responsible purchase practices are an important first step that those manufacturers and the buyers are sitting around the table and looking at what are the problems and what are the way outs. On the part of the buyers, there are a lot of practices that are difficult to handle for the manufacturers like late orders or changes. The European Commission has a small project, which is funded by DG trade on responsible purchase practices in the garment sector. This is some funding that goes to address this problem. Ultimately, I think it is the consumer that needs to be more aware. In Europe, this process is happening. I think the whole concept of fast fashion needs to go ultimately because the concept is not eco-friendly.
Bangladesh Textile Today |
Volume 11, Issue 07
Figure: H.E. Rensje Teerink was in conversation with Textile Today
Textile Today: You know that around 4.5 million people are working in the Textile and Apparel industry. Their wages are one of the lowest in the world. How can the Apparel industry pay more for them? H.E. Rensje Teerink: I was quite surprised to learn that Cambodia who has not really signed to the ILO conventions is actually paying much higher wages to their garment workers than here in Bangladesh more than double. Here probably the manufacturers who have to really look at this and try to pay more fair wages. The workers are earning 5700 tk. per month. There should be the realization that workers need a higher wage. In order for that to happen, the labors themselves also need to be able to organize. Freedom of association is needed. Labor rights are important here. This is where Bangladesh is lagging behind. Necessary amendments are needed for Bangladesh labor law and especially the EPZ law. By the time hopefully, this laws will go to parliament. We heard that this
Bangladesh Textile Today |
would happen in September. That will show really a commitment that Bangladesh is ready to become ILO compliance. In addition, this will help the labors to organize themselves. Textile Today: Bangladesh Textile and Apparel industry is one of the largest in the world. There are many opportunities for EU companies to invest in the backward and forward linkage. How do you see this? H.E. Rensje Teerink: I just want to say that for companies to invest in Bangladesh there are still many hurdles. Bangladesh’s growth model is incredible that Bangladesh has achieved such a high growth level of more than 7 percent despite it being one of the most difficult countries to do business. If you see the ease of doing business report that came out recently a couple of months ago Bangladesh is at a 140th place quite a near the bottom-most for ease of doing business. The government is trying to harmonize the rules etc. There should be more progress that the investors could
Volume 11, Issue 07
easily come to Bangladesh and invest. It would benefit everybody. Textile Today: The US government is imposing new tax and tariffs on trade. We are seeing the similar reply from the EU and China. What will be the impact of this in global textile business? H.E. Rensje Teerink: I think it is regrettable to see that electoral trade rules are little bit being sacrificed for short time political gains. I think the EU never wanted to be a part of that. We are in a global market. If the US signals out to the EU for tariffs and order stiff in that way we have to respond. That I do not think has any impact so far on Bangladesh. Bangladesh still continues having this trade privileges for export to the EU. Bangladesh has a duty-free and quota-free access to the EU. That shows our commitment. I do not think any changes until unless Bangladesh graduate or we find that Bangladesh is not progressing satisfactorily on certain key issues.
31
Country Profile
An overview of Turkish textiles and clothing industry Akhi Akter, Mir Abdullah Al Mahfuz
The Republic of Turkey, stretching from southeastern Europe across the Anatolian peninsula in western Asia, has a textile manufacturing history dating back to the Ottoman Empire. Today, Turkey also remains among one of the world’s most important textile and apparel manufacturing countries. After vehicles, clothing is Turkeys’ most successful export product, which earned 9.4% of the country’s total exports, of them knitwear amounted to US$ 8.8bn (5.6% of total export), while exports of woven clothing reached US$6.0bn (3.8% of the total) in 2017. Exports of both the Turkish textile and clothing industries achieved a modest growth in 2017, rising 2.5% and 3.0% respectively. Industry leaders have predicted that 2018 will be better. Last year, textile exports amounted to around US$10bn and clothing exports to around US$ 17bn. Hikmer Tanriverdi, Chairmen of the Istanbul Apparel Exporter’s Association, forecasts an 8-10% increase in clothing exports in 2018. According to World Trade Organization (WTO) data 2016, Turkish clothing industry with a share of 3.39% is the 6th largest supplier in the world, and the 3rd largest supplier to the EU. It has a share of 4.06% in knitted and a share of 2.73% in woven clothing exports in the world. Strengths of Turkish textile and apparel industry Turkish textile and clothing industry has a significant role in world trade with the capability to meet high standards, and can compete in international markets in terms of high quality and a broad range of products. Turkey exports not only readymade garments; it also exports fabrics to the world. European countries, including Italy, Russia, Germany, Romania and Bulgaria etc. are the most important markets for Turkey’s fabric exports. In 36 years from 1980 to 2018, the production and export of the industry shifted from low value added commodities to high value added manufactured items and fashionable goods. Major strengths of Turkish textile and apparel industry are: • • • • • • •
ualified and educated human resources, Q Design capacity, accumulation of know-how, Investment in technology, Dynamic and flexible production capacity, Advanced sub industry in clothing sector, Concern about quality, health and environment.
32
The 6th largest clothing's supplier in the world
Accounts 9.4% of the country’s total exports
The 3rd largest clothing supplier to the EU.
Expecting 8-10% increase in clothing exports in 2018
Figure 1: Turkish apparel industry at a glance.
Apparel export trends For the last two years, the industry has been stable despite geopolitical conditions in the neighboring countries and diplomatic tension between Turkey and leading European Union (EU) countries. With its fashion-oriented and quality products, Turkey has been increasing her share in the main markets, especially in the European market. In 2014, the total value of clothing exports was US$ 16.26 billion. Approximately 80% of the clothing exported is cotton clothing. Knitted clothing and accessories, with an export value of US$ 10.02 billion, had a share of 61.66% in total clothing exports, and woven clothing had a share of 38,34% with a value of US$ 6.23 billion in 2014. T-shirts and pullovers are the most important export products in knitted clothing sector. Exports of t-shirts and pullovers were US$ 2.93 billion and US$ 1.62 billion respectively in 2016. “Women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, etc.” and “Men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches, etc.” are the most important export products in woven clothing sector. In 2016 exports of “Women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, etc.” and “Men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and
Bangladesh Textile Today |
Volume 11, Issue 07
Country Profile
the Turkish Clothing Manufacturer’s Association 3000 (TGSD), recently said, 2500 “China’s ‘One Belt, One Road’ project is a threat for 2000 the Turkish apparel industry. 1500 Primarily, China carries 1000 its apparel industry to 500 Western China where cheap labor is intense. Therefore, 0 Germany UK Spain France Netherlands China will be threatening 0.11% -7.95% 3.92 -4.23% -6.73% Turkey by its easier access to EU and the project will Figure 2: Top five markets for Turkish apparel products (value in USD million). Value in the bottom be pressurizing this very round shows change in percentage year on year. important competitive advantage of Turkey.” brace overalls, breeches, etc.” 700.502
were USD 2.27 billion and US$ 1.51 billion, respectively. Turkish textile production factors Turkey has several advantages in textile production as well as the supply of raw materials based on the following points: i) The county is a rich source of the raw materials that are used for the production. Turkey ranks number 7 in global cotton production. ii) In terms of logistics, the country has a strategic location as it is the gateway to European markets. iii) With its liberal trade policies equipped with the highly skilled labor force, the country is able to have a well-developed industry that can produce quality products. iv) The country has entered customs union agreement with EU and free trade agreements with other countries. v) Turkey is also noted for giving importance and priority to the working conditions of their labor force. vi) Turkey continues to invest in utilizing advanced technologies to grow their industry. Competitiveness of the textile industry Although the Turkish textile industry has been experiencing stable growth over the years, it is facing challenges, as the country is now required to compete with China. It is beginning to lose its advantage due to China’s low labor cost. Hadi Karasu, Chairman of
Bangladesh Textile Today |
653.372
723.170
692.592
1691.210
1627.455
2090.593
1924.292
2688.035
2685.044
Top five export destinations for turkey apparel products
To maintain its competitive edge, local producers have to create more creative and innovative designs that target high-income groups. As the sector is also negatively affected by the decision of the EU to enter free trade agreements with South Korea and India. In response to the increasing competition, the Turkish
government aims to provide more assistance to its domestic producers by coming up with programs like the turquality program. It is specifically created to make domestic producers become more competitive. Conclusion Today, Turkish textiles and clothing industry is the most outwardoriented industry that can compete with any other countries in the international markets in terms of high quality and wide range of products. Turkey has already increased its cotton production, which will put it on track to become less dependent on external sources of cotton. At the same time, government of the country is very concern to eliminate the remaining problems in the industry, therefore, in near future Turkey might be the strongest competitor for its major rival countries.
Table 1: Turkey’s clothing exports by countries (USD million) Countries
2014
2015
2016
Change (%) 2015/2016
Germany
3321.488
2685.044
2688.035
0.11%
United Kingdom
2354.640
2090.593
1924.292
-7.95%
Spain
1588.538
1627.455
1691.210
3.92%
France
930.611
723.170
692.592
-4.23%
Netherlands
812.877
700.502
653.372
-6.73%
Poland
403.822
415.778
523.519
25.91%
Italy
600.163
513.849
512.575
-0.25%
Iraq
609.029
699.136
502.500
-28.13%
Denmark
488.460
390.849
409.342
4.73%
Iran
50.303
107.022
338.707
216.48%
Ukraine
274.407
271.427
297.616
9.65%
USA
236.435
273.442
291.182
6.49%
Belgium
372.892
290.982
280.444
-3.62%
Saudi Arabia
243.341
241.024
266.701
10.65%
Israel
199.049
222.587
265.617
19.33%
Bulgaria
75.618
58.743
248.052
322.27%
Sweden
267.339
199.108
215.609
8.29%
Algeria
136.130
173.571
179.258
3.28%
UAE
135.345
137.457
132.765
-3.41%
Egypt
108.214
122.421
105.577
-13.76%
Others
3048.050
2901.040
2.555.789
-11.90%
Total
16256.751
14845.200
14774.754
-0.47%
Volume 11, Issue 07
33
S u s t a i n a b i l i t y To d a y
Everlight-ZDHC Seminar 2018 offers sustainable solution for Bangladesh’s textile wet processing industry ZDHC seminar 2018’ explains how Everlight can help in total cost reduction for Bangladesh textile industry Staff Correspondent Actually, we have to think about the total solution. From purchasing chemical to wastewater treatment, we have to think about the reduction of cost. We have to think about every stage. If you have to control the cost, you have to find the right chemical recipe or the right dye range in the beginning. If you can choose the correct chemical compared to the conventional one, you can use less dye, less wastewater, less CO2 emissions. Then the wastewater treatment process will be easier. As a result, the total cost will be lower than the conventional one,” Amy Huang, Head, Product Stewardship of Everlight, said with the Textile Today reporter at ‘ZDHC seminar 2018’ on 4 July while explaining that how Everlight can help in cost reduction for Bangladesh textile industry. The seminar was arranged by Evershine Enterprise in collaboration with the Everlight Chemical Industrial Corporation (Taiwan) at Hotel Le Meridian, in Dhaka, Bangladesh. ‘ZDHC Seminar 2018’ has covered current sustainability topics in the context of Bangladesh’s textile wet processing industry with the aim to raise awareness and inform end-users on Everlight’s firm commitment regarding the implementation of sustainable chemistry and best practices in the textile and leather industries to protect consumers, workers, and the environment. Shazid Rahman, Director, Evershine Enterprise said that on behalf of Evershine, they are very proud to have Everlight as one of their partners. He also said that
34
Everlight Chemical Industrial Corporation was founded in 1972. Its revenue was $ 307 million in 2017. Everlight has their market in 17 locations worldwide. “The business we started from colorant, right now we have 5 business units, and these are Color Chemicals, Speciality Chemicals, Electronic Chemicals, Pharmaceutical Chemicals, and Toner. But the main business is the color chemical,” said Amy Huang. Around 5 % of their revenue goes for R&D to improve their product. They have 250 researchers Figure 1: Amy Huang, Head, Product stewardship of who are engaged with the Everlight. research work. Everlight was awarded several times, which they have been representing them shows that Everlight is not only since 1993. Everlight has been firmly focused on business profit but also committed towards the goal of Zero consider its social responsibility. Discharge of Hazardous Chemicals. Sales Manager of the Sales team, David Lu, who is in-charge of Bangladesh market since 2004, presented Everlight to the guests. He said, “Bangladesh Textile Business has become big at this moment. However, the textile business means dyes, chemicals, and auxiliaries, which destroy the environment, is not only affecting us but also the next generation. Therefore, this is the perfect time to think about the pollutions.” “By using the better quality product, we can save our environment. As Everlight is the first dyestuff company to join ZDHC as an associate member, they are producing high quality and ecofriendly product,” he added.
Amy Huang explained how they overcome the challenges they face during the chemical manufacturing process. She said, “We try to calculate the amount of chemical we use in a reasonable way. We introduced material flow cost accounting(MFCA ) tool tohelp us reduce costs and increase profits while achieving energy saving and carbon reduction, reducing negative products, and improving atomic utilization and competitiveness.We calculate the atomic utilization of chemicals we use and chemicals coming out. When we design a new product, we use ‘12 green chemistry principles’ concept.”Everlight’s solution for the textile industry
Bangladesh Textile Today |
Volume 11, Issue 07
S u s t a i n a b i l i t y To d a y
“Everlight has the capability to offer top quality of colorant in the textile industry. We promptly deliver the product to our customers. We also offer a reasonable price. We also developed a lot of green product such as Everzol® ED Series, a strong chromo fore where smaller quantities of dyes required than conventional dyes. We also developed digital textile printing for injecting ink. We also have a fewer product without DMF solvent,” Amy Huang said these while describing their contribution to the textile Industry. Recently Everlight is trying to make their product free from PCA content, which is mainly coming from the reactive black mixture. Almost all black color contain PCA (para Chloroaniline), Everlight has products to overcome these problems, such as Everzol Black series (PCA content <150ppm), Everzol® Black ECO series (PCA content <50ppm), Everzol Black PF series (PCA content <5ppm). Highlighting their latest products she said, “We have new product Everzol® PFED-G/ ED-R, ED-3R to the market. Secondly, we have a new product Everacid Black XBW. This new product has high bear up, very little wastewater and the CO2 emission is quite low compared to the previous conventional products for nylon. We are working on the leather also.” David Lu said, “Everzol® CS is the best solution for Critical Color Shades that dyes with good performance and light-fastness. It is environmentally aware for achieving a better Carbon Footprint.” Amy Huang discussed the developments, initiatives, regulations, and activities of ZDHC. She highlighted that how collective action can transform an industry. He said that Everlight wants to give ‘Green Solutions’ for apparel and footwear. It also wants to reduce heavy metal item from their chemicals. They have new black acid item Everacid
Bangladesh Textile Today |
Figure 2: Amy Huang, Head, Product stewardship of Everlight. David Lu, Sales Manager, Everlight, Matiar Rahman. MD of Evershine, and other distinguished guests of Everlight were present in the meeting
Black X-BW for nylon and wool. By using these dyes, one can reduce the use of dyestuff usage up to 41% and Black X-BW present two times stronger strength than the traditional one. The removal of Cr removal rate is also remarkable for this product than the previous conventional one. “The vision of ZDHC is widespread implementation of sustainable chemistry and best practices in the textile, leather and footwear industries to protect consumers, workers, and the environment,” she said. Some products of Everlight in Color Chemicals • • • • • • •
Everzol® Black series Everzol® CS series Evereco® PUR Adhesive Eversolar® DSSC Everacid Black X-BW Everjet® RT &AT Everzol®ED series
The ZDHC Roadmap to Zero Programme takes a holistic approach to tackle the issue of hazardous chemicals in the global textile, leather and footwear value chain. Their goal is to eliminate the use of priority hazardous chemicals by focusing on the following areas: •M anufacturing Restricted Substances List (MRSL) & Conformity Guidance • Wastewater Quality, Audit Protocol, Research • Data and Disclosure • Training The ZDHC Wastewater Guidelines, which go beyond regulatory
Volume 11, Issue 07
compliance, are designed to ensure the discharge of treated wastewater does not adversely affect the environment and surrounding communities. The ZDHC Gateway – Wastewater Module is a global web-based platform that is designed to share verified wastewater and sludge test data based on testing against the ZDHC Wastewater Guidelines. “It provides suppliers (manufacturing facilities) with an easy way to disclose secured and verified wastewater and sludge data to their clients (brands/ retailers), reduce the number of unnecessary testing and instead focuses on improving the quality of discharge,” said Amy Huang. “Everlight Chemical has become a ZDHC associate member and committed to ZDHC 2020 Joint Roadmap as we have recognized the urgent need to eliminate the industrial releases of hazardous chemicals into the environment,” she said. She also mentioned that in line with the content of the Joint Roadmap and according to our approach in support of the Precautionary principle, Everlight Chemical fully acknowledges and understands the seriousness of the problem of hazardous chemicals and is committed to the goal of zero discharge of hazardous chemicals for all its products across all pathways of release (discharges, emissions and losses) in our supply chains (with a full life-cycle perspective) by 2020.
35
Te x t i l e W o r l d
Vietnam’s textile sector jumps to 5th position in the world Desk Report Vietnamese textile sector has become the second highest export earner and occupied the fifth position in the world, the Vietnam Cotton and Spinning Association (VCOSA) said it. Vietnam exported textile items worth more than $31 billion last year, representing an annual rise of 10.23 percent. The growth is expected to continue this year with an estimated revenue of $33 billion. Tran ThanhHai, Deputy Head of
organized in Hanoi on June 27 by the ECV International and VCOSA where he said “Between 2018 and 2022, the export tax on certain products will be reduced to zero, creating new opportunities for the country to promote economic growth.” Figure: Vietnam’s textile sector has occupied the fifth position in the world.
the department of export and import under the ministry of industry and trade, attended at the 4th Vietnam Textile Summit 2018
Competitive labor costs and preferential policies will continue to help Vietnam become one of the ideal destinations for investors in the sector, said a press release.
Bangladesh will have to ratify 27 UN conventions to get GSP+ after it graduates into DC Desk Report Bangladesh should maintain a warm relationship with the EU so that it can continue to enjoy the zero-duty benefit under the GSP plus upon graduation from the least developed country (LDC) bracket in 2027. Dutch ambassador to Bangladesh Leoni Cuelenaere advised it at the farewell to outgoing of her that was taken place at BGMEA’s office, Dhaka on July 5. BGMEA President Siddiqur Rahman bid the farewell. Leoni Cuelenaere said, “It is clear that, once Bangladesh becomes a developing country, the EU will levy a 12.5 percent duty on export.” She also said that Bangladesh should be proud that the country has some of the world’s best garment factories. In fact, the country already has 73 green factories certified by the US Green Building Council and 320 are waiting to be certified by the American organization. Of the top 10 green factories, seven are in Bangladesh. After the Rana Plaza building collapse, the global focus was on Bangladesh. The global focus is
36
Figure: BGMEA President Siddiqur Rahman bid farewell to outgoing Dutch ambassador to Bangladesh Leoni Cuelenaere at BGMEA’s office, Dhaka on July 5. (Photo Credit: The Daily Star)
also on Bangladesh right now but it is for a positive reason as some of the world’s best factories are located in Bangladesh, she added. According to Cuelenaere, Bangladesh supplies 20 percent of the total requirement of garment items to the EU in a year. In the ceremony, some important issues were discussed. The GSP scheme is awarded to a country, which is very much compliant in business, production and in the supply chain of the exportable goods. Bangladesh will have to ratify 27, including four cores,
conventions of the UN to be eligible for the continued GSP plus benefit to the EU. BGMEA highlighted the farewell to Cuelenaere, recognizing her extraordinary advocacy in favor of locally made garment items during the turbulent times for the sector. Siddiqur Rahman highlighted in his recognition speech that the Dutch ambassador’s contribution in the meetings of three secretaries and five diplomats committee formed to strengthen the safety in the country’s garment sector.
Bangladesh Textile Today |
Volume 11, Issue 07
Are you Recruiting? Take supports from the largest knowledge platform & industry experts Analyzing business process & setting SOP Organization building & job description preparation Job opening & promotion Head hunting & initial interview Shortlisted candidates Matchmaking & recruitment
Contact: Mobile: +88 01787184121 | Email: jobs@textiletoday.com.bd
For more information please visit jobs.textiletoday.com.bd
S u s t a i n a b i l i t y To d a y
9 organizations join ZDHC ‘Roadmap to Zero Program’ Desk Report
Nine organizations have joined the Zero Discharge of Hazardous Chemicals (ZDHC)’s Roadmap to Zero Program, a coalition of over 100 contributors, working together on the implementation of safer chemistry practices to protect consumers, workers and the environment.
Asia. Testex is a globally operating, independent Swiss testing and certification organization with a focus on textile and leather testing. Companies from the textile and footwear industry include Albini Group, CIEL Textile, Nahar Group of Companies, Raymond UCO Denim, and Eurojersey.
ZDHC works to eliminate the use of priority hazardous chemicals in the textile, leather, and footwear production. The new contributors joining as value chain affiliates include solution providers like Eurofins, HermesHansecontrol Group, and Testex.
The Albini Group is an Italian textile company, aimed to manufacture the most beautiful shirting fabrics, embracing the culture of quality, innovation and
Eurofins is the world leader in food, environmental and pharmaceutical product testing, and one of the key emerging players in consumer product testing, soft lines, and leather including chemical management and testing services. As an international testing and certification company, Hermes Hansecontrol Group is present in eight locations in Europe and
Figure: Recently nine organizations have joined the Zero Discharge of Hazardous Chemicals (ZDHC)’s Roadmap to Zero Program.
Made in Italy excellence. CIEL Textile is a world-class global player in textile and garments operations, spanning across Mauritius, Madagascar, India and Bangladesh. Nahar Group of Companies is one of the leading textile companies in India having approximately 800,000 spindles, weaving, processing, denim, knitting, and garmenting capacities along with a retail business. Raymond UCO Denim Pvt. Ltd. is a formidable combination of advanced manufacturing and global market reach. Sensitive Fabrics by Euro jersey is a reference point in the sector of Italian-made warp knit fabrics for sportswear, ready-to-wear, swimwear and underwear markets. AQC (Association for Quality Assurance of Leather Bracelets Manufacturers) is joining ZDHC as an associate. It is a Swiss-based international association of leather bracelets manufacturers for the watch industry.
90% remediation of Alliance factories is complete Desk Report
The Alliance for Bangladesh Worker Safety (“Alliance”) announced in a press release on 3rd July that during the month of June, 18 additional Allianceaffiliated factories completed all material components outlined in their Corrective Action Plans (CAPs), bringing the total to 364. “We commend the commitment these factories have made to prioritize safety for their workers, and we thank them for setting a standard for others to follow,” said Alliance Executive Director Amb. Jim Moriarty. Across all Alliance factories, 90% of all required factory remediation
38
leadership and oversee safety inspection and monitoring, worker training and the 247 Amader Kotha helpline beginning in 2019.”
Figure: Bangladesh RMG sector has become one of the safest places to work due to strong investment under the remediation projects of Accord and Alliance.
has been completed, informing this the release said, “Laying the groundwork for the Alliance’s planned transition to a Safety Monitoring Organization (SMO) that will include Bangladesh
“The work of the Alliance and its partners to overhaul factory safety has made a significant difference within the RMG industry in Bangladesh,” said Kathleen Almand, Vice President of the National Fire Protection Association (NFPA). “My colleagues at NFPA and I are optimistic about the future, and we look forward to seeing how these gains will be built upon as the Alliance transitions its work.”
Bangladesh Textile Today |
Volume 11, Issue 07
Te x t i l e P e o p l e
R e t a i l e r s To d a y
BSHRM gets new executive committee Desk Report
Bangladesh Society for Human Resources Management (BSHRM), an active platform for HR professionals, recently announced new office bearers having 15 executive members. Mohammad Mashequr Rahman Khan, Managing Director of PTDCA, elected as a President and Abul Hashem Mazumder, Head of HR, Mirpur Ceramic & Khadim Ceramics Ltd. elected as a General Secretary. Besides Shabbir Ali, Director (HR) of City Group and Mohammad Kamruzzaman, Director (HCM, Comp. & Admin) of Windy Group elected as a Vice President and Treasurer. On 6 July BSHRM arranged their 16th annual general meeting where
Figure: Newly elected BSHRM executive committee for 2018-19.
15 executive members were elected for 2018-19. Musharrof Hossain was the president for 2017-18. ‘BSHRM is an International platform. I hope the new executive committee will work for human capital development and contribute the country’s economy,’ said Mohammad Mashequr Rahman Khan, President of BSHRM.
‘We, BSHRM, are committed to nationwide development thorough continual positive changes. Our vision is to improve the lives and wellbeing of HR professionals and train and equip HR talents to meet the global standard,’ said Mohammad Kamruzzaman, Director (HCM, Comp. & Admin of Windy Group and Treasurer of BSHRM. ‘We need a human resource ministry as many developed and developing countries, such as India, Europe, and America, have their own human resource ministries to create and develop skilled manpower for the corporate sector,’ Kamruzzaman added.
Islamic fashion school teaches modest fashion in Indonesia Desk Report
Indonesia’s so-called first Islamic fashion school is teaching students in the world’s largest Muslimmajority country the usual skills of design, styling, and marketing. However, they are teaching many designs, which are not related to the Islamic faith that does not give permission to go outside a woman without proper cover maintaining Islamic rules. As demand grows for Islamic apparel, featuring variations on traditional headscarves and long, flowing dresses for women, while men are targeted with robes or shirts embroidered with religious motifs, about 140 students have signed up. “We want our students to make unique designs and become leaders in modest fashion,” said Deden Siswanto, who founded the Islamic Fashion Institute nearly three years ago in Indonesia’s third largest city of Bandung.
Bangladesh Textile Today |
business practices.
Figure: Indonesia’s so-called first Islamic fashion school is teaching students Islamic fashion.
According to Deden Siswanto, they also teach them about wearing clothes according to Islamic rules. However, there are many conflicts with Islamic dress code. Nearby sat a group of young women working at sketch boards and sewing stations in the school, which offers nine-month courses in fashion styling, marketing, and basic styling. Both men and women, whether Muslim or non-Muslim, may join. However, teachers must be Muslim, to ensure familiarity with Islamic
Volume 11, Issue 07
The trend toward garments that meet religious requirements is becoming more visible among the burgeoning middle class in Indonesia, where, for years, few Muslim women covered their heads, or opted for traditional batik or Western clothing. The Indonesian websites of leading online retailers such as Lazada. com and Zalora.com now have pages dedicated to Islamic fashion. The country hosted its first Muslim Fashion Week in 2015 and the industry ministry aims to make Indonesia a “Muslim fashion hub” by 2020. One of the students at the school, Runi Soemadipradja, said she started wearing a headscarf in 2007 but found few options suitable for Muslims. She started designing her own clothes. They are overwhelmed by this (demand). So far, she has released 10 collections.
39
S u s t a i n a b i l i t y To d a y
Cotton 2040, new guide to help brands source sustainable cotton Desk Report
During the Better Cotton Initiative (BCI) 2018 Global Cotton Conference, Cotton 2040 a new guide has been launched aimed at helping brands and retailers to radically increase their sourcing of sustainable cotton. Cotton is the most widelyused natural fiber in the fashion industry but presents significant environmental and social challenges to the apparel sector. Although the fashion industry is improving its environmental and social performance, sustainable cotton currently only makes up around 3% of the total global cotton supply. This needs to increase in order to further improve the sustainability of the apparel sector. BCI conference summarized. The digital ‘CottonUp guide to sourcing sustainable cotton’ supports brands on fast-tracking their sourcing strategies across multiple standards. The guide highlights the business case and main sourcing options for sustainable cotton, provides guidance on creating a sourcing strategy and working with suppliers, and shares case studies from companies that have already navigated the complex challenges of sourcing more sustainable cotton. Sally Uren, CEO at Forum for the Future, said, “The apparel sector is under huge pressure to reduce its social and environmental
40
Anita Chester, head of Sustainable Raw Materials at C&A Foundation, said, “There is significant work to do to align and harmonize the many sustainabilityfocused activities across the apparel sector and to drive production of more sustainable cotton from around 15 percent to beyond 30 percent from 2020.
impacts, and increasing demand for more sustainable fibers is the key to securing future supply. The CottonUP guide addresses a long-standing need in the industry for clarity around cotton sourcing options by providing brands and retailers with the resources to help them go further, faster. It can be a key enabler for systemic change in the industry, and could be a blueprint for other commodities in the future.” The guide was developed by the Cotton 2040, coalition of leading brands and retailers including M&S, Target and Aditya Birla Fashion Retail Ltd; industry standards Better Cotton Initiative and Cotton made in Africa (CmiA), organic standards (represented by Textile Exchange), Fairtrade, industry initiatives CottonConnect, IDH – the sustainable trade initiative, Cotton Australia, Proudly made in Africa and Organic Cotton Accelerator as well as MADE-BY
and Centre for Sustainable Fashion at London College of Fashion. Sustainability non-profit Forum for the Future led the work, with funding from the C&A Foundation. Anita Chester, head of Sustainable Raw Materials at C&A Foundation, said, “There is significant work to do to align and harmonize the many sustainability-focused activities across the apparel sector and to drive production of more sustainable cotton from around 15 percent to beyond 30 percent from 2020. “Through Cotton 2040 and the CottonUP guide, key industry players are making a united effort to pull brands and retailers towards more sustainable cotton and make it easier for them to source across multiple standards,” she added. Phil Townsend, the sustainable raw materials specialist at M&S, expressed that today, any company, no matter how large or small, have the opportunity to convert all its products over to a sustainable footing and mainstream more sustainable cotton. Over the coming months, Cotton 2040 partners will be reaching out to individual organizations and the wider industry to encourage greater use of more sustainable cotton and provide support through webinars and other knowledge sharing opportunities.
Bangladesh Textile Today |
Volume 11, Issue 07
S&D Chemicals (Pvt.) Ltd
1st South Asian Chemical Manufacturer to acheive Blue Sign systems partnership CREATING SUSTAINABLE FUTURE
Head Office :
Bangladesh Office :
S & D Chemicals (Pvt.) Ltd. Block â&#x20AC;&#x201C;A,Biyagama EPZ, Biyagama,Sri Lanka Tel : +94-11-4515225 Fax : +94-11-4515545 Hotline : +94-71-4883939 Email : admin@sdchemlanka.com Web : www.sdcheme.com
Redox Chemical Industries Ltd. Flat-3A, House-39, Road-15 (Rabindra Sarani) Sector -3, Uttara, Dhaka 1230, Bangladesh. Tel : + 8802 48955370 Fax : + 880258952990 Hotline : +8801713464468 Email : info@redoxbd.com Web : www.sdcheme.com
C o l l a b o r a t i o n To d a y
Lindex-WaterAid launched project to improve RMG worker’s health Desk Report Lindex has been a partner with WaterAid since 2014 and now deepens the collaboration with the new project that launched at Mirpur, an area of Dhaka, Bangladesh where many textile workers produce clothes for Lindex live. On 30 June 2018, the project titled “Addressing the WASH crisis in low-income settlements of garment workers in Mirpur” has been launched officially at CIRDAP Auditorium in Dhaka. It was organized by Eco-Social Development Organization (ESDO) funded and supported by WaterAid Bangladesh and Lindex where Indu Bhuson Dev, Divisional Deputy Director, Primary Education, Dhaka Division was the chief guest. In the Mirpur area, few people have access to clean water and decent toilets that leads to both health issues and security risks where women and girls are particularly affected. Through the collaboration between Lindex and WaterAid, the residents and school students in the area will get access to clean water and sanitation. The project also includes education in the schools regarding sanitation and menstrual hygiene, with local partners. Women and girls will be especially involved in the project by being part of the newly launched entrepreneurial groups. Kazy Md. Iqbal Hossain, South Asia Sustainability Manager, LINDEX and Anwar Shikder, Country Director in charge, WaterAid Bangladesh were present as special guests. More than 100 project stakeholders from the different corner were present in this launching ceremony. The ceremony was presided by Dr. Md.
42
Figure: Lindex-WaterAid launched a project to improve RMG-worker’s health in Mirpur, Dhaka
Abul Hashim, MBBS, MPH, Adviser, ESDO. The project intends to support 10000 garments workers in Mirpur slums with safe water, sanitation and hygiene behavior change towards promoting environmental health for 3 years (01 April 201831, March 2021). The project also focuses on women and adolescent girls’ empowerment through leadership and small entrepreneurship development on sustainable WASH services. “Thanks to Lindex and Water Aid to lunch such a great project in Mirpur Slum area. I believe, this will surely improve the health and sanitation condition of the poor people of the slums and hope all the related stakeholder will work together to make the project successful.” Said Indu Bhuson Dev. Kazy Mohammad Iqbal Hossain said, “Lindex is proud to be a part of this important project. We are continuously working to improve the living conditions of the workers who produce garments for Lindex. As a fashion brand, specialized in selling garments for
Women and Children, our all effort goes to create a better working condition for the workers of our supplier factories, now we are aiming to see the improvement of their living conditions at home also.” Rashida Akter Jhorna, Councilor, Ward # 6, 7 and 8 DNCC said, “I am very happy to see that the company like Lindex extends their helping hands to improve the health and sanitation facilities of the area where the workers of its supplier factories live- this is surely a great initiative. I promise to provide all necessary support to make this project successful.” The collaboration between Lindex and WaterAid is a three-year project, scheduled to start April 1, 2018. The project is financed with a surplus from Lindex sales of shopping bags, in line with the initiative One Bag Habit. One Bag Habit aims at reducing the consumption of shopping bags, increase the awareness of plastic bags negative environmental impact and the surplus of the sales of bags is donated that drives sustainable development.
Bangladesh Textile Today |
Volume 11, Issue 07
Editorial
Prospects of branding and marketing for textile manufacturers
For so long, promotional activities were accumulated in buyers end, but it’s the time, manufacturers should also participate in this march as they also need recognition to the end users and buyers community to sustain in the business strongly. Rahbar Hossain There is a spectrum of opinions about branding and marketing. Actually, producers and consumers both ends are bound in a string where branding and marketing actions are bridged. However most of the manufacturers still suspect that branding and marketing is still a cost center, not a business driver. Almost all successful companies have very good promotional story and activities all over the world. In textile and apparel industry, fashion retailers are conscious in promotion though in producers end the awareness is very poor. Problem is industry owners are more production focused which tangibly gives them revenue. It’s happening just because of they have not proper notion that how could branding and promotion give them revenue, open up new opportunity and reduce market risks. Consumers’ or customers’ loyalty should be on top of the priority chart, which is the ultimate revenue house. Why and what is branding and marketing? Innumerable people and organizations are selling same product like you, why a consumer would buy your product? The marketing may convince an individual to buy a particular product but branding determines if he/she will become a loyal customer or not. Marketing is a push tactic but branding is not
Bangladesh Textile Today |
Brand What is a
BRAND STRATEGY
BRAND POSITIONING
Promotional activities were accumulated in buyers end, but it’s the time, manufacturers should also participate in this march as they also need recognition to the end users and buyers community to sustain in the business strongly.
push, it is pull and more strategic tool. In fact, branding makes marketing easier and acceptable to the consumer. People in this era are brand-aware and very concerned about buying any kind of products. They want quality products that they can trust. So, if your company delivers great products and services and has a great brand identity, people will
Volume 11, Issue 07
BRAND IDENTITY
remember you. Also, they will often refer you to friends and family. Strategic brand management The strategic brand management process starts with a clear understanding of what the brand is to represent and how it should be positioned with respect to competitors. Actually, competitive brand positioning is all about creating brand superiority in the minds of consumers. Fast fashion trend and open business practice make the textile business chain ticklish. Manufacturer and buyer both are trying to dominate each other in every aspect. Both end busy to cut the profit from one other in every possible way. In fact, both are working to satisfy the end users which are the real firewood of business. For so long, promotional
45
An initiative of Textile Today
Find your unique positioning and stand head-high...
The Team Tareq Amin Founder & CEO Amzad Hossain Monir Head of Business Development Rakibul Islam Soma Akter Nepal Nath Naznin Wahed Business Development Akhi Akter SN Abdullah Sub Editor Rahbar Hossain Editorial Coordinator
‘Factory Tales’ is an initiative of ‘Textile Today’ for ‘Branding Bangladesh Textile & Apparel’. The initiative is to investigate and explore positives and significant stories from sites of the industries. Articles, news & analysis, interviews, photo and video contents will be developed to highlight & promote best practices; product and process development stories; social and environmental contributions etc. of Bangladesh textile and apparel manufacturing companies.
Sanjoy Kumar Saha Engagement & Communication Major Factory Tales Services are
Nizam Uddin Shipan Head of Design and Branding
Brand Strategy Making (Identity & Positioning) Best Practice Story Building
Moshfikur Rahman Video & Graphic Editing
(Marketing/Branding Story)
Brand Manual Making
(Designing, Publishing & Printing Brand Materials and Websites)
Photography & Videography
(Corporate/Product/Process/Facility)
Brand Communication- PR Services
Yeasin Mia Graphic Design
Maruf Ahmed Cinematographer
Sajedul Islam Asst. Manager, Web & IT
Riasad Rion Executive, Web & IT
Amenities of Factory Tales
Identical position in the industry
Buyer and consumer loyalty
Vantage in price negotiation
Employer Branding
New business possibility
Robust & sustainable business
Award on best practice
Md. Ariful Islam Md. Masudur Rahman Mir Abdullah Al Mahfuz Abir Basak Editorial Contributions www.factorytalesbd.com
25 A (2nd Floor), Lake Drive Road, Sector 07, Uttara, Dhaka 1230, Bangladesh Tel: +88 02 55093682 Mobile : 01775999368, 01775999748 Email: info@factorytalesbd.com, Web: www.factorytalesbd.com
Editorial
Identify and Establish Brand Positioning
Plan and Impliment Brand Marketing Programs Mixing and matching of brand elements
Mental maps Competitive frame of reference
Integrating brand marketing activities
Core brand associations Points-of-parity and difference
Leveraging secondary associations
Grow and Sustain Brand Equity
Measure and Interpret Brand Performance
Brand product matrix
Brand value chain
Brand portfolios and hierarchies
Brand audits Brand tracking
Brand expansion strategies
Brand equity management system
Brand reinforcement and revitalization
Figure 1: Strategic brand management process.
activities were accumulated in buyers end, but itâ&#x20AC;&#x2122;s the time, manufacturers should also participate in this march as they also need recognition to the end users and buyers community to sustain in the business strongly. Understanding target customers and branding
marketing and branding activities can certainly be a cost center, but well-researched and well-executed marketing is an investment that pays for itself in sales and brand
Mo
How promotional activities helps in growth of an industry
Individuals attraction
re s
us tai
na
Every business builds targeting specific customers, it could be a group of people or a country whatever. Before starting business activities, it is important to understand the target customer needs and prospects, identify what should be the branding strategy and how to approach the customers. Think of branding as the expression of who you are as a company or organization and what you offer. Clarify who you are and why you stand for to people. Once you have created a brand, be consistent in every aspect that you have already offered especially in quality and service.â&#x20AC;&#x192;
reinforcement. The great return of those promotional activities is customer loyalty what actually any organization seek.
ble
bu
sin
es s
e eas ncr
Strong position in industrial community
Employee branding
Grab the target market
ls
sel
I
More buyer attraction to buy products
End users loyalty
End users loyalty
Figure 2: Benefits of promotional activities for a textile industry.
Poorly researched and executed
Bangladesh Textile Today |
Volume 11, Issue 07
47
Market Analysis
Market diversification for further RMG export growth To reduce higher dependency on the traditional market and seize new export markets, government and private sector need for market diversification Textile Today Research In Fiscal Year (FY) 2017-2018, export of readymade garments (RMG) products registered an 8.76 percent growth reaching to $30.61 billion. Exports to non-traditional markets have seen a nearly 10% rise to $4.67 billion which is more than 15% of total RMG export. With the current product mix of Bangladesh RMG industry, when major export markets are reaching to almost saturation point, growing in non-traditional market diversification has become even more important. To achieve 50 billion USD yearly apparel export by June 2021, Bangladesh has to increase its RMG export from $30.61 billion USD to 50 billion USD in three years, which is a growth of more than 60%. To achieve this target Bangladesh needs to get about 17% year on year average growth, according to the Textile Today June editorial. To achieve this growth, the sector needs to pay attention to the regular market and non-traditional market equally even though the contribution of the non-traditional market in the export basket is still very less. Bangladeshâ&#x20AC;&#x2122;s apparel exports mainly depend on the European Union (EU), the United States, and Canada, as they are the main importers of apparel product from the country. The diversification of new export destinations is inevitable due to the entry of new competitors in traditional markets where Bangladesh has been enjoying an edge over others for many years. On the contrary market growth in traditionally is being restricted
48
Figure 1: Bangladesh needs to diversify its markets for further RMG export growth.
due to the economic slowdown and Bangladeshâ&#x20AC;&#x2122;s lack of product diversity. Recently, the resurgence of a sort of protectionist attitude among a number of major importing countries has also emerged as an issue of great anxiety. We all know that Bangladesh does not get the United Statesâ&#x20AC;&#x2122; generalized system of preference (GSP) though many rival countries are enjoying this benefit. On the other hand, EU often threatens to suspend trade preferences. For substantial volume growth, it would be logical to look for economies with sizable markets. On the other hand, the demand of apparel products, one of the most important basic needs of human being, is increasing rapidly due to many reasons, including fast fashion trends, in developed and developing countries. Meanwhile, market growth is much higher in
the non-traditional market than the traditional market of developing countries. Therefore, there is no reason not to search the new market and already Bangladesh has made some progress in finding a few markets for its products beyond the traditional ones. The trend of RMG export to nontraditional markets Accept key export destinations such as the European Union, the United States, and Canada, other countries are defined as nontraditional markets. Non-traditional export markets include India, China, Russia, Japan, South Africa, Turkey, Brazil, Chile, Mexico, South Korea, Malaysia, Australia, New Zealand and any other countries for the Bangladeshi garment sector. These markets are being defined as the non-traditional market by the Bangladesh government. The government has been giving some advantages or
Bangladesh Textile Today |
Volume 11, Issue 07
Dedicate to innovation for the success of our customers
No. 1 Spandex producer in China
Products : Conventional Spandex High-temperature resistant black Spandex Super Chlorine-resistant Spandex High-temperature resistant Spandex Acid dyeable Spandex Spandex for high- grade warp-knitting fabrics Spandex for narrow fabrics Color Spandex Diaper Spandex Zhejiang Huafon Spandex Co., Ltd.
Huafon Chongqing Spandex Co., Ltd.
Address :
Address
Tel Fax Email
: : :
No.1688, Kaifaqu Road, Economic Development Zone Ruian, Zhejiang, China +86577-65178055 +86577-65178054 spandex@huafon.net
Zip
www.spandex.com.cn
: NO. 6 Huafon Road, Baitao Chemical Industrial Zone, Chongqing, China. : 408017
Market Analysis
incentives to the exporters to the non-traditional market. RMG export to the non-traditional markets is increasing significantly. Among the non-traditional markets, Japan and India have contributed the highest to total exports earnings. Table 1: Bangladesh RMG export to Nontraditional market in FY 2017-18 Country
RMG Exports in $ Million
Australia
634.01
Brazil
158.38
Chile
78.95
China
391.64
India
278.67
Japan
846.73
Korea
191.97
Mexico
148.34
Russia
427.92
South Africa
73.26
Turkey
260.16
Others Countries
1,180.44
Grand Total
4670.47
We mentioned earlier that garment exports to non-traditional markets have seen a nearly 10% rise to $4.67 billion in the last fiscal year. As per the latest data of the EPB, Out of $1.13 billion export earnings from Japan in FY18, $846.73 million or 74.8% came from the RMG sector. And apparel exports to Japan has seen a 13.73% rise compared to previous year earnings of $744.48 million. In fiscal 2017-18, Bangladesh’s RMG exports to India stood at $279.19 million, up by 115% compared to $129.81 million in the FY17. Of the total amount exported to India, Knitwear products earned $71.05 million, which is 89.75% higher than the $37.44 in the same period a year ago. Woven products earned $207.62 million, up by 124.79%, compared to $92.35 million a year ago. Why non-traditional markets performed well In reducing higher dependency on the traditional market, government and private sector have taken
initiative to explore the new export market, which acts as a catalyst. Double-digit exports growth in non-traditional markets is a good sign for Bangladesh as it will pave the way to reduce higher dependency on traditional market and help the country to diversify export destination, Exporter Association of Bangladesh president Abdus salam Murshedy said to Textile Today. This is because of the government and the private sector initiative, taken to explore a new opportunity, said Salam, also a Former President of Bangladesh Garment Manufacturers and Exporters Association. “Sharp rise in Japan and Indian market is opening a new opportunity for Bangladeshi manufacturers in the Asian region,” he added. On the other hand, safety improvement in apparel industry has also attracted more customers to source goods from here, he opined. “The Bangladesh government
Figure 2: Bangladesh’s RMG exports to non-traditional markets in FY18. Source: EPB
50
Bangladesh Textile Today |
Volume 11, Issue 07
Market Analysis
is determined to tap the fullest opportunity in the non-traditional export market. The sharp rise in apparel exports growth in the non-traditional market is the reflection of efforts undertaken by the government to explore new destinations for RMG products,” Commerce Minister Tofail Ahmed said to Textile Today. Currently, the government is providing a 3% cash incentive against export proceeds for garment exporters in the nontraditional market. Our exporters are more concentrating on the traditional markets and they do not want to spend time and money exploring the market. I think apparel makers have to change the mindset and give efforts to explore new markets as the government is providing all-out support to this end, he added. Challenges in new markets Non-tariff barriers and products variation is a challenge in the way of taking more market share in the non-traditional export destinations. Trade analyst and the manufacturer urged the government to remove nontariff barriers, especially with India to increase export to the country. India could be a big market for Bangladesh due to its largest population and proximity, they opined. Nontraditional market’s sourcing network or stream is different than the traditional markets. An editorial of Textile Today May 2012 discussed the ways of approaching such markets. The report said, there are significant differences in Product design, size pattern, quality requirements, material content, and fashion trend to sourcing stream. The report suggested that business pattern to the manufacturing process and steps it would have different way for these markets. The market is mostly covered by Indian and Chinese products. Bangladeshi manufacturers need to adapt itself with the sourcing and value
Bangladesh Textile Today |
chain structure of the market. Bangladesh needs to position itself rightly in this market. While product quality and verity of products were also an important factor in gaining more market share in the non-traditional markets and now Bangladeshi entrepreneurs were making the investment to upgrade the quality of products. How to grab more market share As of now, the potential of nontraditional markets is huge and remains untapped. This is because of higher taxes, which eat up the competition, and non-tariff barriers in some of the potential markets such as India. “In taping the opportunity of non-traditional exports markets, Bangladesh government has to come up with new steps to explore potential exports items,” Former Advisor to caretaker government AB Mirza Azizul Islam said. “We also have to identify the products for the Asian market, as the dress pattern of this region is different from the European countries as well as in the American region,” said the economist. In grabbing more from the pie in non-traditional markets, Bangladesh has to concentrate on products development for those markets, he added with saying “The government should move for a free trade agreement and bilateral trade relations.”
Volume 11, Issue 07
An earlier report of Textile Today told that proper product development and integrated marketing & sourcing plan will be keys to grab these markets. As our manufacturing base here has developed for quantity based orders, it may require creating some brands for the wholes sale market in the non-traditional market to create requirements of a sum of a good volume of garments. Bangladeshi manufacturers need to invest in marketing and promotion as well. A part of the manufacturing base in Bangladesh can target these markets and reshape them. As a whole quick response system, capability of frequent style changes, cutting room automation, use of software for designing and ERP will increase the competitiveness of enterprises here to grab these potential markets. Small segregated mode of production can work in place of composite vertical practice here only when good integration can be done by better communication within the industry. A good blend of sourcing partner and production partner will be needed to grab a potential part of the markets like Dubai, Malaysia, India, and South Korea etc. Similar approach can be useful for other non-traditional countries as well. In fine, both the government and the RMG leaders should come up with proper strategy and footstep to diversify export markets.
51
Call : +8801775999837
S p i n n i n g To d a y
Maksons Spinning’s example of ensuring high-quality yarn using compact spinning technology
State-of-the-art compact ring spinning technology can ensure higher tenacity and elongation at break, lower mass irregularity measured on short segments, and a significantly smaller number of faults such as thin & thick places and neps, as well as a higher degree of elasticity, and a considerably lower hairiness. Textile Today Industry Research Team Spinning is the first value-adding a process to make a quality garment. Knitters and weavers solely depend on spinners to produce quality fabrics, which quality frequently varies with the yarn quality. Therefore, it is a great challenge for spinners to deliver best quality yarn to fabric producers. MAKSONS Spinning Mills Limited brought state-of-the-art compact ring spinning technology to meet the customers’ quality requirements in 2016. They have installed 45168 spindles EliTeSUESSEN apron suction compact ring-spinning machines as a technological advancement footprint. Md. Humayoun Kabir, GM and Project Head of MSML said, “To improve yarn quality, we took into account the issues that our potential customers claimed and brought this technology as a solution.” Advantages of the compact
Figure 2: MSML is equipped with updated machinery.
spinning system over the noncompact spinning system Higher Yarn strength. Less Hairiness. More yarn evenness. Less twist needed etc. Successively they have reached above benefits and their production is also increased by about 10-12%. In this compact
spinning system, 5-7% less twist inserted, thus decreasing the fabric spirality and shrinkage at the weaver’s end. Less hairiness of yarn means less enzyme use during dyeing, by compact spinning process MSML decreased about 20%-25% yarn hairiness. “Both we and our customers are satisfied with this compact system as they are getting quality yarns and our sales is also getting boosted,” Md. Mostafizur Rahman, Sr. AGM of Quality Control said. An article published in Textile Today in January 2011 showed how compact spinning systems can make sure higher tenacity and elongation at break, lower mass irregularity measured on short segments, and a significantly smaller number of faults such as thin & thick places and neps, as well as a higher degree of elasticity, and a considerably lower hairiness.
Figure 1: Imposing working floor at MAKSONS Spinning Mills Ltd.
52
It is getting difficult for the yarn producers to sustain in the market
Bangladesh Textile Today |
Volume 11, Issue 07
S p i n n i n g To d a y
because customers demand is a high-quality product with low price. At the same time, gas price and labor cost are increasing, though the yarn price is remaining the same. So, spinners must have to adopt this compact spinning and others modern technology to sustain, also should focus on product development and diversification such as Inject yarn, SIRO yarn, Lycra, Nappy yarn and Amsler Slub etc.
Te c h n o l o g y To d a y
Table 1: Improvements in quality parameters after using compact spinning systems compared to conventional ring spinning systems. Parameters
Compact
Non-compact
Count
30KH-C
30KH
U%
10.90
11.1
CVm%
14.00
14.4
Thin -50%
0.5
1
Thick +50%
90
96
Neps +200%
170
178
IPI
260.5
275
H
4.5
5.8
BRÜCKNER launches new production facility in Tittmoning, Bavaria Desk Report On 23 June 2018, the new production facility of BRÜCKNER, the world market leader in dry finishing machines for textiles and technical textiles, was officially opened in Tittmoning, Bavaria, a press release said. Representatives from politics, the church, banks, and industry were present with approx. 800 other guests when Regina Brückner inaugurated the new, generously dimensioned production plant together with Dr. Peter Ramsauer, former Minister of Transport. Regina Brückner in her speech said that increased incoming orders and ever-increasing demands on machine sizes and delivery dates were the reason for planning a new plant in 2014. With the new plant with 25,000 m² of production space and a spacious office wing, they will continue to meet the high expectations of our customers in the future. The possibility of producing components with a height of up to 12 m and a working width of up to 8.80 m offer them great potential for the future. With a large number of new, highly automated processing
54
Figure: BRÜCKNER new production site.
machines, they are in a position to manufacture and supply even larger machines as before, and BRÜCKNER will also be able to increase their delivery volume and significantly shorten delivery times, said the release. In her speech, she explained the many advantages of the new plant and presented details of the highly automated and efficiently organized production: the new modern CNC machine tools, the additional welding robots and the new highlight of the plant: the highly automated powder coating and wet coating system.
The former German Minister Dr. Peter Ramsauer emphasized in his speech the importance of the manufacturing industry in Germany and expressed his joy that BRÜCKNER is so clearly committed to the location Germany and does not transfer jobs abroad. He congratulated BRÜCKNER on the successful move to the new plant and emphasized the outstanding importance of such traditionconscious family companies as BRÜCKNER for the German industry and the location of Bavaria in particular.
Bangladesh Textile Today |
Volume 11, Issue 07
Exclusive Interview
Textile and apparel (T&A) industry is the biggest manufacturing industry in Bangladesh, which is playing a major role to convert the country into middle income from lower-middle one. Bangladesh apparel industry is the second largest exporter of the world and more than 82 percent of national export foreign currency comes from this sector. With continuous challenges, obstacles, and storms popping up every now and then, the industry always came on top and overcame these very successfully. With a titanic 4.2 million people, including entrepreneurs, pioneers and dedicated persons who are working relentlessly to uplift this industry strongly in many cases now could present it as a role model to the world. Ashikur Rahman Tuhin, Managing Director of Mayc`s Garments Ltd and a Director of BGMEA (also Director of SEIP) is one of the successful pioneer, who battled with challenges to fortify country’s RMG business. He has a vast knowledge of this industry.
Bangladesh Textile Today |
Bangladesh RMG sector should go for price fixing policy…
We can conclude that we have the most safest and luxurious RMG zone in the world. Since America does not or will not give GSP, so that we should find alternate sources to bag benefits out of this transformation. Ashikur Rahman Tuhin Managing Director, Mayc`s Garments Ltd. and Director, BGMEA Recently Ashikur Rahman Tuhin shared his experience with Textile Today on various issues including industry’s future, transformation, the necessity of branding, strategies, challenges etc. Here is a glimpse of the discussion for Textile Today readers.
Volume 11, Issue 07
Textile Today: What type of transformation of the industry do you see as a successful businessman? Ashikur Rahman Tuhin: In the last 10 years, our RMG sector has changed significantly. We have now entered into the luxurious
55
Exclusive Interview
and safety stage from the normal stage. Luxurious is because of the world’s highest graded green factories are now in Bangladesh. Moreover, lots of other factories are in the pipeline and the green factories have been developed so much that Bangladesh has the most number of green factories in the world. That is why we can tell it a luxurious transformation. In addition, the reason for telling it a safety transformation is, after Rana Plaza collapse, training held through Accord-Alliance, infrastructures have been reformed in a sustainable and ecofriendly way. Those who are given this goodwill certificates, they have said about this significant change. So, we can conclude that we have the most safest and luxurious RMG zone in the world. Another big change is the product wise transformation. Generally, everyone knows that Bangladesh manufactures basic items. However, this mindset was in everyone, which is gradually changing. We are going now to make down-padding high product range. We are now producing a high valued jacket, world’s best lingerie items, full suit known as Italian suit, denim, jeans etc. Textile Today: There are many green, compliance factories in Bangladesh now. Why are branding strategies needed to express ourselves to the world? Ashikur Rahman Tuhin: As a BGMEA member, I think branding Bangladesh is needed at this moment. Since BGMEA new board has come to power, we are continuously working on this issue and over the last two years, we are attending regular international textile fairs than before. We recently attended a fair in Russia. As we think Russia could be the most perspective and alternative market. Since America does not or will not give GSP, so that we should find alternate sources as entrepreneurs or manufacturers. To remain safe
56
and boost the export growth, owners must focus on new markets and emerging markets such as China and Japan. More products up-gradation is a must for a better price. Last year we showed our own items in Paris fair. Individuals from the industry, BGMEA board, and others attended. From our side, we organize Apparel Summit, Denim Show etc every year in Dhaka and
government. For example, before the Eid festival, we sat with the government about DhakaChittagong traffic issue to avoid continuous pressure on the highway and keep the exporting safe as this highway is the lifeline to reach the seaport. Eid going people and export, both matters need to run simultaneously. Textile Today: What type of challenges the industry is facing now? Ashikur Rahman Tuhin: This industry faced huge challenges and are still facing as I speak. But we’ve developed beyond our imagination. We started exporting with $12,000 in the decade of the eighties. Today we are 32 billion dollars industry. There are many differences between now and then. Now the work and workspace have been improved. Once upon a time, there was no uninterrupted power supply, now it has been reduced considerably. The government has started importing LNG to reduce gas crisis.
If the government increases the cost of gas for importing of LNG, then the product manufacturing cost will be increased. Buyers will not want to give us this increased value. We book season-wise order 6 months prior. If any policy changes for any reason, even if material cost increases after the booking, we will not get the consideration from the buyer.
Chittagong. The world’s entire textile community comes here and observes our best practices. Textile Today: As a Director of BGMEA, what key role do you play? Ashikur Rahman Tuhin: Each of our directors has a specific zone of responsibility. We all work together as a team. I am working in RMG and Textile Industry Skills Council (RTISC) and Skills for Employment Investment Program (SEIP) under the finance ministry as a Director to improve skill in all level management. Moreover, as a team, we also do the work of backward linkage and we are working with the
The price reduction is a big challenge. Now the market is open, the buyer can buy product from anywhere. The challenge is to increase the price from the buyer. For example, if at the halftime of dyeing production dyeing gas pressure is decreased or closed, the shade variation may come. This will damage products. Buyer will not bear this. If the government increases the cost of gas for importing of LNG, then the product manufacturing cost will be increased. Buyers will not want to give us this increased value. We book season-wise order 6 months prior. If any policy changes for any reason, even if material cost increases after the booking, we will not get the consideration from the buyer. In this case, we have to offer the price to the buyer by solving our own problems. Again, if we remain in the hard-line about negotiation, then foreign buyers will move elsewhere due to the open market. Then
Bangladesh Textile Today |
Volume 11, Issue 07
Exclusive Interview
it will become difficult. I hope that we start working on price sourcing and policy fixing roughly. In this case, there will be a price policy structure for 5 years by considering all aspects. Accordingly, the product price will be determined. Shortage of skilled manpower is another shortfall in our industry. Skilled people are not available at the level industry has grown. Textile Today: How much work is being done by BGMEA about raising the price? Ashikur Rahman Tuhin: As I said, buyers want to buy highquality products from the good environment at low prices. However, the product cannot be manufactured at a lower price all the time. Many times the price of raw material fluctuates in the world market. We cannot manufacture a product in loss, also we have to be careful about buyers moving elsewhere too. Lead-time is one of the main facts also. European buyers buy the same product from Bangladesh and Turkey; they can get less lead-time from Turkey obviously due to the geographical reasons. So that we have to work not only to increase the product value, besides we have to be careful, as the competitiveness does not lose. We are trying to make an effective policy. Textile Today: Now what are the opportunities of the industry? Ashikur Rahman Tuhin: Simply countless. We’ve lots of opportunities in this industry. I am very optimistic about this matter. We have now become more mature, the industry’s age is almost 38-40 years old. Vietnam, Cambodia, Ethiopia and other countries need to spend more time to reach this stage. Therefore, the opportunity is here. However, the main thing we need to support backup opportunities. In addition to, the government has to develop a good transportation system along with the good environment. To manufacture a high-end product, skilled workers are
58
The price reduction is a big challenge. Now the market is open, the buyer can buy product from anywhere. The challenge is to increase the price from the buyer. For example, if at the halftime of dyeing production dyeing gas pressure is decreased or closed, the shade variation may come. This will damage products. Buyer will not bear this.
needed. Then we will get the good quality product. The government has decided to bring scattered factories to one place and is building a lot of EPZ. Hopefully, the problem will be solved very much if these factories will be shifted to EPZ fully. This industry can give potential profit to the country so quickly whereas the others can’t. RMG is no longer a private organization now, it is our national asset. We all need to work together to maintain this wealth. Textile Today: Bangladesh is moving from LDC to DC. Already an announcement has come from the United Nations about this issue. What is the effect of the RMG sector in this case? Ashikur Rahman Tuhin: This is the best part of Bangladesh, a matter of pride and it is possible only due to country’s leading RMG sector’s contribution. There is nothing to fear in it. We will not stay at the LDC level for the rest of our life. Changes will come with time, so we have to move forward. The main task of our termination is to work for GSP+ instead of GSP. Already we have started working on it. I hope the RMG sector will be stable in the future. Textile Today: Tell us about your factory.
in Mirpur, Dhaka and another green factory will be established in Hemayetpur, which is in full compliance with washing, garments etc sections. We are producing sportswear jersey along with knitting and proudly we have made Bangladesh Cricket Team’s jersey in the last cricket world cup. According to the buyer recommendations, we are providing entire facilities to the staffs and workers. In every week, we are providing training. High officials are sent to abroad to train up. To develop the R&D section, we spend a big amount of money. For sustainability, we use power saving lights and machinery, rainwater harvesting. We need an innovative and efficient approach to garment sourcing to meet the apparel industry target of cost, quality, and lead-time. Textile Today: What is your suggestion for upcoming new entrepreneurs? Ashikur Rahman Tuhin: The Textile industry is perfectly expertise oriented. With full knowledge, understanding, and seeing, one should come here. This industry is not for everyone. RMG lovers from the bottom of the heart should engage here so that they can upgrade this industry well. Instead of small, big industries should be established. Building a small industry era has long been crossed. Because we are at such phase now where if we cannot build a factory exclusively, it would be difficult to sustain the business. Now, it is tough to handle the business with 3/4 lines of garments. Workers no longer want to work at 40 degrees temperature. If we provide a good environment, workers will be able to give us good quality production. Youth should have a fixed goal where they can unroll themselves. They have to be dynamic, motivated, explorer, unique thinker person.
Ashikur Rahman Tuhin: I have two factories, one is located
Bangladesh Textile Today |
Volume 11, Issue 07
F a c t o r y Ta l e s -Te x t i l e I c o n
“
Fashion trade is being diverted to online following consumers’ purchasing behavior….
Mohammad Hasan Executive Director of Babylon Group
Recently Textile Today Industry Research Team has met Mohammad Hasan, Executive Director of Babylon Group. And many industry insights came out from the conversation between the team and Mohammad Hasan, most illuminating parts are revealed here for the readers. Textile Today: What is the specialty of Babylon Group which distinguished it from others? Mohammad Hasan: Babylon Group is all along quality conscious and the message is drilled very clearly from top to bottom. I’m proud to say that this is our one of the main strengths.
Bangladesh Textile Today |
Our vision is to give maximum quality products to the customer with the optimal price range. Our quality team works independently so that they can take the action plan and decision properly and effectively. Textile Today: Zero Discharge of Hazardous Chemicals (ZDHC) initiative aspires to make sure zero discharge to hazardous chemicals by 2020. Why do you think it is important? Mohammad Hasan: Keeping in mind the environmental issues, we recently doubled our ETP capacity from 100m^3 to 200m^3
Volume 11, Issue 07
Textile is a huge revenue generating sector where often many important issues are ignored. However, the government and owners are aware now about workers, environment, fire, and building safety etc., Babylon group is such an industry where these good practices are highly present. Babylon Group started their journey in 1986 with a vision to excel in businesses by upholding ethical values, pursuing the policy of continual improvements on products, services, the welfare of their people, being very responsible in regards to polluting the environment by adopting improved and latest manufacturing methods. They have 20 sister concern industries with huge production capacity.
59
F a c t o r y Ta l e s -Te x t i l e I c o n
per hour. I think it’s a remarkable footprint that goes align to ZDHC goals for 2020. This is important because if anyone wants to take environmental clearance from top brands they have to meet the ZDHC requirements within around 2020. So, we are working on aiming that target. We have top branded dyeing machineries which are very water efficient and productive. We also try to use less hazardous chemicals that requires less effort to treat. Environment and mass people should not be over looked, responsible people and government should take proper initiatives to save our earth and business should be ethical. Again, buyers also should be strict about environmental issues. Textile Today: Babylon Group has 4R (Reduce, Reuse, Recycle & Recover) policy for waste management, could you please share us about the project? Mohammad Hasan: Currently we are only recycling polythene under this project. We recycle the used polythene and produce new usable products, though, we do not use these for garments packaging as it may not be hygienic. These polythenes are mainly used for the in-house temporary purpose. Babylon Group also had a paper mill where we usually recycled the used papers for further use. We
the taste of consumers, though the fast fashion concept is making this business more acceptable to the consumers as we also have to run with the new design and fashion. Fashion trade is being diverted to online following consumers’ purchasing behavior.
In the recent past years, we faced utility problems acutely, though, now the electricity availability is better than before. Recently government is taking the initiative to import LNG gas, which is expensive, on the other hand, workers basic salary is going to increase about to double or more. Considering all these adverse situations I don’t think new investors will feel safe. The government should handle this situation very carefully as this textile business is hope of millions of people in Bangladesh.
Textile Today: Bangladesh industry is in deep utility problem but many more economic zones are being established and foreign investors are coming here. What is your opinion about this?
are more focusing on this project to make this planet waste free. Textile Today: Babylon Group is already in fashion retail business with the popular brand “TRENDZ”, how do you see the prospects of this business in Bangladesh? Mohammad Hasan: Firstly, one should come in this business whatever the profit is because it always keeps you one step ahead of others. We had that vision and that is why from 2004 we started “TRENDZ”, which is now a leading fashion brand of Bangladesh. This business concept is changing with
Mohammad Hasan: It’s good that Bangladesh is drawing many FDI but it’s also alarming for us. Because we are just expanding our business but not considering many vital issues like the environment, workers living standard, utility availability etc. In the recent past years, we faced utility problems acutely, though, now the electricity availability is better than before. Recently the government is taking the initiative to import LNG gas, which is expensive, on the other hand, workers basic salary is going to increase about to double or more. Considering all these adverse situations I don’t think new investors will feel safe. The government should handle this situation very carefully as this textile business is hope of millions of people in Bangladesh.
Germany and Uzbekistan strengthen cooperation in textiles Desk Report
Several agreements have been signed between Uzbekistan and Germany that will expand their bilateral cooperation and will help boost their exports of finished textile products to the European market. The agreements were signed at a meeting with the Minister of Foreign Affairs of the Republic of Uzbekistan, Abdulaziz Kamilov, and the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany, Gunter Overfeld, at the offices of the Uzbekistan Textile Industry Association. Both countries came to an
60
news agency report.
Figure: Uzbekistan and Germany strengthen textile trade relations.
Currently, Hohenstein with Uzbekistan textile industry association is working to create scientific laboratories in Uzbekistan.
agreement of $4 million in investments, three framework agreements and six export contracts amounted to a total of $6.5 million.
Memorandum of cooperation and its implementation roadmap were signed between the association and Hohenstein Institute.
Both sides also discussed issues of increasing export of finished textile products to the European market through certification collaborating with European scientific research institutes, according to an Uzbek
During the negotiations, issues of developing a program of technical assistance and the transfer of knowledge in the field of textile production, design, dyeing, finishing were discussed.
Bangladesh Textile Today |
Volume 11, Issue 07
Unveiling industry best practices
Fabric to denim laundry July 2018 Unveiling industry best practices Fabric to denim laundry
If Bangladesh could fix some policy, it can be the main player in fabric production and processing in the world...
â&#x20AC;&#x2DC;Denim Expert Ltd.â&#x20AC;&#x2122; becomes the first SAC member among apparel makers from Bangladesh
Make Blue Think Green
Agami Washing Ltd focuses on innovation in product development
Make Blue Think Green
Plant Area - 150 Acres Manufacturing Facility - 1.4 Million Sqft Fabric Production Capacity - 40 Million Yards/Year Capacity In Expansion - 40 Million Yards (Within 2019)
Technology - Modern High Tech Machineries Water Saving - 20% Energy Saving - 18% ETP Capacity - 6000 M3/Day
Certification - LEED Platinum (In Process)
Manufacturing Plant:
Corporate Office:
Horitola, Madhabpur, Habiganj Bangladesh. www.pioneer-denim.com
Confidence Center (9th Floor), Kha-9, Progati Sharani, Shahjadpur, Gulshan, Dhaka-1212 Tel: +88 02 55048201 E-mail: info@pioneer-denim.com
Manufacturing with Pride
‘Denim Expert Ltd.’ becomes the first SAC member among apparel makers from Bangladesh Desk Report products, facilities and processes based on environmental performance, social labor practices and product design choices.
The Denim Expert Limited, one of the market leaders in quality denim manufacturing, has become the first manufacturer in Bangladesh to join the Sustainable Apparel Coalition (SAC). The manufacturer will use the group’s sustainability measurement suite of tools, the Higg Index, to drive environmental and social responsibility throughout its supply chain. With its membership in the SAC, the Denim Expert Ltd. joins more than 220 global brands, retailers and manufacturers, as well as government, non-profit environmental organizations and academic institutions (including Adidas, Puma, American Eagle, Disnep, G-star, Levis, Gap, Aldo, United Colors of Benetton, Inditex, Canada, Esprit, H&M, American Apparel & Footwear Foundation, GIZ, WWF etc.), which are collectively committed to improving supply chain sustainability in the apparel, footwear and textile industry. “We are pleased to join the SAC and it will have a positive impact on product sustainability over time and become a model for how industries can collaborate in making a positive impact on value chain performance,” stated Managing Director of Denim Expert Ltd., Mostafiz Uddin. For this achievement, he thanked The Accord & Alliance and said, “The Accord and Alliance have been founded for a good reason. We appreciate what has happened, as without them it would not have been possible
Bangladesh Textile Today |
CEO of SAC, Jason Kibbey welcomed the addition of Denim Expert Ltd. to the Sustainable Apparel Coalition by saying, “Look forward to their participation in this industry-wide effort in sustainability.” “Having the Denim Expert Ltd. as part of the Coalition widens the scope of Figure: ‘Denim Expert Ltd.’ has joined the Sustainable Apparel Coalition (SAC). Photo: Denim Expert Ltd. our impact within the industry and to achieve. 4,000 factories have accelerates the change we’re been inspected, with remediation making towards responsible achieved at 88 percent by the industry actions,” he added. Accord, 90 percent by the Mostafiz Uddin is a vocal supporter Alliance.” for sustainability and advancing “This has now been achieved, it Bangladesh’s apparel and textile is done. Let’s hand it over to our industries. In May, he spoke at own country. Our own culture to the Copenhagen Fashion Summit manage,” he added. about enabling transparency in In its relationship with the SAC, garment manufacturing to create Denim Expert Ltd. will contribute change. both data and resources Earlier, Denim Expert Ltd. to support the Higg Index, introduced a new water-saving which measures sustainability collection in April that reduces performance and drives supply the amount of water needed to chain transparency and decisionmake one pair of jeans by half. making to improve efficiency and The process combines techniquesustainability impact. based finishing processes to The Higg Index is an indicatorreduce the number of steps in based suite of tools that enables wet finishing and utilizes efficient suppliers, manufacturers, brands washing machines. and retailers to evaluate materials,
Volume 11, Issue 07
63
D e n i m To d a y
Agami Washing Ltd focuses on innovation in product development FT Research Team Own Innovation in design and
machine
development is the primary focus of
Tupesa.
Agami Washing Ltd, a sister concern of
Mostly they
Dekko Group, started its journey 3 years
use Italian,
back at Gazipur. It is a full compliance
Turkish,
and green model factory. The company
Japanese,
accomplished most of the parameters
and Chinese
set by Accord and Alliance.
branded
“Own Innovation in design and
technology.
development is our primary focus in
The company
R&D, our team is capable to create
uses OZONE
attractive design in a sustainable
fading system
way. G-Star Raw, Celio, Tommy,
that takes
Espirit and C&A are our main buyers.
air from the
We have design studio, now we
atmosphere and transforms it into
follow the buyer’s artwork and
ozone. It also effectively improves the
module, but at the same time, we
whiteness of used areas and eliminating
also develop our new designs, which
the back staining of garments.
are also chosen by buyers,”Lelin Zakir, Head of Plant, Agami Washing Ltd and Vice President of BGWTF, said to Textile Today. Currently, its washing capacity
Figure 2: Agami washing Ltd has developed many denim products.
Agami Washing R&D team brings stunning aesthetic appearance on their development. “We added both dry and wet
denim, non-denim, sweater etc. The company has achieved many awards in terms of developing product. “We have minimized the production cost compared to the previous time. We saved chemical cost and process cost, said Lelin, former Manager (wash) of European fashion brand G-Star Raw. The company applied wash in two processes: Wet Process: Garments Wash, Enzyme Silicon Wash, Stone Enzyme Wash(Dark Wash), Stone Enzyme Medium Bleach Wash, Stone Enzyme Bleach Wash( Lt Wash), Super Light Wash, Acid/Snow Wash, Towel Bleach Wash, Tint Wash, Rubber Ball, Garment Dye, Dip Bleach, Dip Dye, Cold Dye. Dry Process: Hand Scrapping, Hand Whisker, Chevron, Tacking, Tie Effect, Destroy, Grinding, Crinkle, 3D, PP Rubbing, Resin Spy, PP Spy.
Figure 1: Modern and high-tech machines are used at Agami Washing Ltd
is around 70 thousand pieces of
process on the item. In the dry
denim. Their laboratory is equipped
process, we have 40 members work
with modern machines and creative
in R&D team. We apply whickering,
technical experts. The washing unit
scraping, grinding, tagging, side
equipped with modern and high-tech
seam busting and tie effect. We
machines, including 11 front loading
applied enzyme wash, bleaching
machines from TRIVENETA, 30
and PP spray for primary effect,
side-loading machines, eight sample
further towel bleach wash enhanced
machines and eight high tech dryer
the wash effect,” Lelin Zakir said
machines. It also using sustainable
to Textile Today Research Team
OZONE fading machine from Jean
expressing the process of their
logia, nano-bubble technology
developed items like high fashion,
machine from Tonello and dryer
fancy fashion, low cost production,
64
Figure 3: Lelin Zakir, Head of Plant, Agami Washing Ltd.
Bangladesh Textile Today |
Volume 11, Issue 07
aamra resources FOR APPAREL & TEXTILE TECHNOLOGY
COMMITTED TO SUSTAINABLE PRODUCTIVITY We stand by our responsibilities towards our customers, towards the environment and the people around us. We make performance stand the test of time. This is what we call â&#x20AC;&#x201C; Sustainable Productivity.
SMARTLINK Data Monitoring Program
www.atlascopco.com/smartlink
Te x t i l e I c o n
â&#x20AC;&#x153;
If Bangladesh could fix some policy, it can be the main player in fabric production and processing in the world... Internal rivalry among entrepreneurs is ruining Bangladeshâ&#x20AC;&#x2122;s textile industry. Common price policy is required to solve this problem. Mohammed Shahinul Haque, Executive Director, Badsha Group Mohammed Shahinul Haque is a visionary textile engineer with an extensive experience who has been serving textile sector for last two decades. After completing his B.Sc. in textile engineering from College of Textile Engineering & Technology (currently Bangladesh University of Textiles) in 1995, he started career in Beximco, which was the pioneer in spinning and textile industry at that time, and served the organization for seven years. Later on he joined in NR group and after that he joined in Badasha Group of industries and working for last sixteen years. He is now leading the group as Executive Director. Badasha Group is one of the highest capacity holding companies in Bangladesh in spinning and denim manufacturing. Shahinul Haque has gathered in-depth knowledge in textile industry set up including spinning, weaving, dyeing-finishing and machineries installation etc. He implemented his knowledge to set up new industry, operation, product development, production planning, sales and marketing as well. He is one of the prominent experts in the country in modern machineries selection and erection to make a new project financially feasible. Along with all these professional strength, Shahinul Haque has special expertise in denim mill set up, from machine selection to fabric production. He designed and established the Pioneer Denim Limited, a sister concern of Badsha Group.
66
Bangladesh Textile Today |
Volume 11, Issue 07
Te x t i l e I c o n
Recently Industry Research Team of Textile Today has met him to explore his professional experiences and Badsha Group’s business operations. He has been selected as the ‘Textile Icon’ of July 2018 issue of Textile Today. Textile Today: What initiative should we take to develop efficient people in this sector? Mohammed Shahinul Haque: There is no alternative than training to convert our population into assets. We need to arrange training to increase efficiency of our local people. Training can be provided by foreign experts or combined with local experts. We also can arrange training for local trainers by foreign experts by a certain period so that our local trainee can become an expert trainer and train up other people. Foreign tour also can be a good way of training. People can visit some industry in other countries and learn more knowledge practically.Training by manufacturer of the machineries company also can help us to make technically sound. Such trainings help in how to operate the machines and achieve highest efficiency by using existing facilities in order to reduce manufacturing cost. Institutional training also can be a good way of training. BUTEX or other educational institution can conduct some training courses for our fresh or experienced people. Textile Today: How Government should act to support our Textile industry? Mohammed Shahinul Haque: Government is an important stakeholder of this sector. They should fix some policy for booming this business. Policies need to be taken in utility cost reduction, continuous supply of gas and electricity and infrastructure development etc. Government should subsidize in power and energy sector. Utility price should not increase for next
Bangladesh Textile Today |
10 years at least to minimize the production cost. In the industry price of finished products is not increasing where material cost is upward. If utility cost also increase in parallel, local manufacturer cannot compete and as a result, they need to sell the goods same as manufacturing cost or lower than that sometimes to continue the running of manufacturing wheel. It is a question of survival for the industry- the sector will not survive if utility cost increases in every year.
Our internal bad competition is harming this industry. When one factory set up a large capacity of product then they need to sell the fabric for continue production and reduce the price. Then customer is taking this advantage to other supplier. Clients claim then, if factory ‘A’ can provide with this price why you cannot. Then factory ‘B’ is bound to reduce price. We need to overcome this price barrier and need a common price setting strategy.
Textile Today: What opportunities are waiting for Bangladesh textile industry? Mohammed Shahinul Haque: Bangladesh has good opportunity for textile business. Our backward linkage is now stronger than before. Our spinning mills are meeting up 90% of local consumption for knit and 40% for woven. Our textile mills are providing major portion of required fabric for our own apparel export, which we had to import earlier, and now we are exporting fabric to other countries as well. Our main competitor China is closing their business in this trade. 40 denim mills have already shut down and will reduce 50% of the industry in next two years due to
Volume 11, Issue 07
labor cost rise and environmental issues. If we could fix some policy, we could grab this opportunity and will be the main player in textile business. Textile Today: What challenges do we need to confront for grabbing this opportunity? Mohammed Shahinul Haque: Our main challenge is product diversification. We are producing same category of products by almost every manufacturer. For example, Bangladesh has 400 spinning mills and almost every spinning mill is producing same cotton or cotton blend yarn. There is no special yarn producing by our spinners. 150+40D ACR (Air covering yarn) yarn is used for super stretch denim fabric, which, is not available in Bangladesh. Some entrepreneur should think about it start working on it to set up spinning mills for such type of special product. We have become our own competitor in product category. This is damaging our business. Buyers are taking this opportunity. They have many options to choose and then they are playing with price. We are getting very low margin, which is main struggle for our business. Our weakness is technical knowledge shortage. Our entrepreneurs should have enough technical knowledge and information. If they know, what trend is coming next, they can plan for their business expansion. Due to lack of proper information, business is not diversified and expanding in same category. Investment in diversified product group can bring more success for this trade. Textile Today: What techniques should entrepreneur adopt for getting better price? Mohammed Shahinul Haque: our entrepreneur should establish a common price policy. Our internal bad competition is harming this industry. When one factory set up
67
Te x t i l e I c o n
D e n i m To d a y
a large capacity of product then they need to sell the fabric for continue production and reduce the price. Then customer is taking this advantage to other supplier. Clients claim then, if factory ‘A’ can provide with this price why you cannot. Then factory ‘B’ is bound to reduce price. We need to overcome this price barrier and need a common price setting strategy.
Later on it has expand business in yarn manufacturing and established two spinning named Badsha Textiles Ltd. and Kamal Yarn Ltd. The latest addition in Badsha group is Pioneer Denim Ltd, a modern mill of denim fabric manufacturing.
Textile Today: What are the Badsha group’s current business operations?
Mohammed Shahinul Haque: Our manufacturing facility is 1.4 million sq. ft. and yearly production capacity is about 40 million yards. For this huge production, we have high tech German machineries that are highly productive and efficient. ETP is most vital thing in denim production and we are aware on that. Pioneer Denim Ltd. has 6000 m^3 per day capacity of ETP considering the environmental
Mohammed Shahinul Haque: Badsha Group is a three decade experienced textile conglomerate. Its business operation started in 1978 by raw cotton and yarn trading. The main business operation started in 2000 by establishing Pioneer Sweaters Limited in international business.
Textile Today: What is the production capacity of Pioneer Denim Ltd and what are the major technologies using there?
issues. We have plan of expansion the production capacity more 40 million yards by 2019. Textile Today: What are the Badsha Group’s next expansions? Mohammed Shahinul Haque: Pioneer Denim fashion Ltd. bottom factory will start in 2019 having 50 lines and will be extended in more 50 lines soon. We have established washing factory for denim washing. We also have 3000 Shima Seiki auto machine in sweater project and plan to expand more in sweater business. For textile business expansion, our other project of fashion denim and super stretch or bi-stretch denim is under construction. It will help for import reduction and save our lead time.
Ananta Garments Ltd. bags ‘H&M Denim Brands Award 2018’ FT Research Team Ananta Garments Limited has bagged
professional background. What they
“H&M Denim Brands Award 2018’” as
have achieved is fruition of dedication in
the ‘Most Diversified Performer’ of H&M.
product development. After assessing
This award is given in consideration of
a design or concept given by buyer, the
making multiple styles, using assorted
R&D team gives necessary suggestions
fabrics and applying of distinctive
and new concept. Their laboratory is
wash to make exclusive products. H&M handed over the award in a business gathering held at H&M Dhaka office on 5 July 2018. Md. Masudur Rahman, AGM of Wash (R&D and Planning) and Rajib Sarwor, Manager of Merchandising have received the award on behalf of Ananta Garments Ltd. H&M has many brands namely Cheap Monday, Monki, Weekday, ARKET, Afound
Figure 2: Innovation capacity in conjunction with safety in application made Ananta Garments a reliable supplier to brands like H&M
etc. Usually H&M gives extra premium
level 3 category approved by H&M. For product development, they use top-notch machineries such as frontloading Yilmack and J.Lary machine,
to producers for producing products for these brands. Ananta Garments Ltd. regularly develops products and produces denim products for these brands. Ananta is one of the gold suppliers of H&M among three factories in Bangladesh.
belly machine - NAGI SHING and dryer machine. They also have modern dry process facilities for R&D like 3d machine, laser,Tagging Machine, Grinding Machine, PP Spray booth, Resin Spray booth, pen destroy machine, mannequin
As a premium supplier, Ananta Garments
for Scraping, mannequins for whicker,
Ltd. has their own development
sewing machine and ironing.
concept, own risk analysis capacity of any style, test parameters ensuring facility etc. AGL has dedicated and dynamic R&D Figure 1: Inamul Haq Khan, MD of Ananta Garments Ltd. (6th from left to right) with the R&D team.
68
team with strong educational and
Figure 3: Specially developed sample for H&M.
Bangladesh Textile Today |
Volume 11, Issue 07
P r i n t i n g To d a y
Quality assurance in printing, the Square Fashions’ model Square Fashions Ltd. uses world-class printing machinery and skilled workforce to ensure the quality of printed products Textile Today Industry Research Team Printing is one of the important value-adding processes to the final garment. To the fashion conscious peoples, printed garments are more acceptable now and they are inclined to pay extra. So, there are huge prospects in this industry to generate revenue by producing top-notch products. With the most sophisticated vertically integrated infrastructure, Square Fashions Limited (SFL) started its project in 2001 as a one-stop source for the global knit apparel market to meet customers’ expectation by providing feature products and services on time. Eventually Printing section has become a momentous section of SFL where quality is the first priority over anything, which is also the company motto. SFL printing has world class 6 headed two MHM-Syncro 3000 rotary screen printing machine, 8 headed two MHM iQ oval screen printing machine and also 8 headed two S.ROQUE oval screen printing machine. SFL printing section’s daily total capacity is about 100,000 pieces where about 1100 skilled workforces are engaged.
keeping updated and well managed chemical inventory, storage, handling, application and discharge.
Figure 1: K.M. Nazrul Islam, Assistant General Manager of SFL Printing.
Quality is the first priority Raw materials are the key factors in printing where quality varies frequently. Since printing is the most sensitive process, to ensure quality the full process needs to be monitored critically. “First of all, Square printing gives maximum importance on purchasing and using right and quality dyes, chemicals, and other agents,” said K.M. Nazrul Islam, Assistant General Manager of Printing. They mainly use European branded chemicals and some from Malaysia and China. Because a good printing paste is mainly responsible for good printing effect. They ensure all necessary tests to guarantee quality before use in bulk.
Figure 2: Quality Assurance Dept. was checking the quality of products after printing.
70
Secondly, all stuff working in printing R&D at SFL have a strong chemistry background. Man, machine, and material, when all these elements synchronized then it’s possible to achieve expected quality and production.
Each and every printing chemical go through standard quality testing process before it is used on the process. Thanks critically adopted chemical management system within the company which helps
Nazrul Islam said, “All of our staffs are aware of quality and we train them regular basis on production and quality aspects.”
Figure 3: Square Fashion Ltd. (SFL) printing production floor is equipped with world-class brand machinery.
Square also shares a certain percentage of their profit at the end of the financial year with every staff to give them sense of ownership. SFL has been working with almost all renowned buyers like PUMA, H&M, G-STAR, MEXX, ESPRIT, s.Oliver, Marks & Spencer, HUGO BOSS etc. “PUMA has been working with us for the last 14 years only for quality and on-time delivery,” Nazrul Islam said. Dr. Eric HL Tan, Director of SILKFLEX and one of the important chemical suppliers of SFL printing said, “They are 100% quality conscious so that we always have to be careful to give the best quality products to SFL.”
Bangladesh Textile Today |
Volume 11, Issue 07
F i b e r To d a y
Properties, production and use of milk fiber Dr. N.N.Mahapatra B.Sc (Hons) B.Sc (Tech) (Bom) M.Sc (Chem), Ph.D (Chem), M.B.A (IMM,Cal) C.Col FSDC (UK), CText FTI (Manchester), FRSC (UK) Int Trg (Australia), Sen Mem , AATCC (USA), FAIC (USA) FIC, FTA, FICS, FIE, FIIChE, MISTE (INDIA) President COLORANT LTD. Milk fiber extracted
Fibers like cotton Linen have ruled the world since the start of civilization. As we speak about innovation and technology, China with its large-scale production has invented new fibers like Milk and Soybean. Though in the 1940’s the fibers were quite popular in America and Europe, the market collapsed due to World War II. Now regenerated fibers are more efficient and durable than any other fiber invented before or existing today. Milk fiber was invented in 1930‘s in Italy by Antonio Ferratti. It was manufactured from milk casein to compete with wool. Casein fibers have since being produced under various names in a number of countries, a. Lanital in Belgium and France. b. Fibrolane in Britain. c. Merinova in Italy. d. Wipolan in Poland. e. Aralac in America Casein is obtained by the acid treatment of skimmed milk. The casein coagulates as a curd which is washed and dried, and then ground to fine powder. 35 liters of skimmed milk produce about 1 kg of casein. Today‘s milk fiber is environmentally friendly, superior in strength and has far better
72
The yarn is used in art
Making Tows
Dyed milk tows Milk yarn
Figure 1: Extraction and spinning of milk fiber. Source: http://marenscott.blogspot. com/2012/11/spinning-milk-fiber.html
qualities than man-made fibers. Casein (milk) protein dates back many centuries when it was used as a binder for paints – paint with casein applied to 14th and 15thcentury churches still appear bright and unfaded. Proteins are obtained from skim milk, evaporated milk and condensed milk. There are about three pounds of casein in every 100 pounds of milk.
Production of milk fiber Casein is obtained by the acid treatment of skimmed milk. The casein coagulates as a curd which is washed and dried, and then ground to a fine powder. Casein is dissolved in caustic soda solution. The solution is allowed to ripen until it reaches a suitable viscosity, and is then filtered and deaerated. The spinning solution
Bangladesh Textile Today |
Volume 11, Issue 07
F i b e r To d a y
Casein Mixing (caustic soda and water)
Filtration
Deaeration
Hardening
Drawing
Tow
is wet spun by extrusion through spinnerets into a coagulating bath containing sulphuric acid (2 parts), formaldehyde (5 parts), glucose (20 parts) and water (100 parts). The jets of solution coagulate into filaments in a manner similar to the coagulation of viscose filaments. But the next process is very critical as the fiber has to be treated chemically to harden it. The process is commonly described as â&#x20AC;&#x153;hardeningâ&#x20AC;?, in that it minimized the softening effects of water. Treatment with formaldehyde forms the basis of many hardening techniques. In the plant scale bunches of filaments are collected together into a tow as they leave the coagulating bath, and are then steeped in formaldehyde solution. The filaments are subjected to drawing at this stage. After treatment, the tow is washed and dried, crimped mechanically, and then cut into staple fiber. Otherwise, the tow to top convertor makes tops for blending with wool. Following are the varieties available in the market.
Spinning
Staple fiber /tops Table 1: Available staples of milk fiber.
Washing
Drying
fineness
length
1.56 dtex
38 mm
1.56 dtex
46 mm
2.22 dtex
76 mm
Milk fiber has passed oeko-tex standard 100 green certifications for the international ecological textiles. The milk fiber contains eighteen amino-acids, which is beneficial to humanâ&#x20AC;&#x2122;s health and has the functions of nourishing and taking care of skin. The wet spinning technology, a unique spinning solvent is used, microzinc ions are embedded in the fiber, after drying and after treatment, zinc oxide is produced, and therefore it is bacteriostatic and durable. Casein fiber is produced almost entirely as staple, tow or top. Properties of Milk fiber Milk fiber resembles wool in having a soft warm handle. The fibers are naturally crimped, and yarns have a characteristic warmth and fullness of handle. It provides good thermal insulation. They are resilient, like wool. Casein fibers cannot be distinguished from wool fibers by chemical or burning tests, only by microscope. because the chemical composition is so similar, casein burns like wool with the odor of burning hair, has no surface scales like wool but is smooth and round when viewed under a microscope, is damaged readily by alkalis and mildews easily. The filaments are smooth surfaced. Cross section is bean shaped. The natural color is white. When wet, the fibers lose much of their strength; tenacity falls to 0.6 to 0.3 g/den. Milk fiber tends to absorb
Table 2: Comparison in properties of Casein, Silk, Wool and Cotton fiber. Properties
Crimping Cutter
Baling
Figure 2: Flowchart of milk fiber production
Bangladesh Textile Today |
Casein
Silk
Wool
Cotton
Tenacity gm/den 1.1-0.9
1-1.5
1.5-2.0
2-5.5
Elongation, %
25-45
25-40
6-10
Density, gm/cm3 1.30
1.34-1.38
1.33
1.50-1.54
Moisture regain %
11.0
14-16
9
60-70 14
Acid resistance
Good
excellent
excellent
Bad
Alkali resistance
Bad
good
bad
Excellent
Resistance to moth/fungus
Resistance to moth but not to fungus
Resistance to Fungus but not To moth
Resistance to fungus but not to moth
Resistance to moth but not to fungus
U.V resistance
bad
bad
bad
good
Volume 11, Issue 07
73
F i b e r To d a y
moisture readily, and the fibers become swollen and soft. They may become plastic and sticky as the temperature is raised. The fibers become brittle and yellow on prolonged heating at over 100 deg c. It burns slowly in air. Flammability is similar to wool. The fiber base body does not have regular channels, which makes the milk fiber have as fine as moisture absorption as a natural fiber and better moisture conduction than synthetic fibers. Milk fiber is both comfortable and permeable. Fibers are white, fluffy, springy and have a pleasant odor. Even though casein fiber lacks certain desirable qualities of wool it was a way to replace wool at a lower cost. When mixed with viscose and wool, casein helped in the conservation effort during World War II as a wool substitute. Though caseins can be laundered with care the same as wool, they lose strength when wet and must be handled gently. They cannot be kept damp for any length of time due to quick mildewing. Today’s milk fiber is environmentally friendly, superior in strength and has a far better qualities than man-made fibers. Blending of milk fiber When blended with other fibers casein added a soft draping quality and resiliency to fabrics. The fiber was blended with wool for creating felt and with spun rayon, wool, mohair and cotton for attractive woven and knitted fabrics in a variety of weaves, textures, and prints. The popular blends were wool- 94% and casein fiber -6%., viscose-50% and casein fiber- 50%. Casein/cotton blends are popular for hosiery and carpets. A small amount of fiber is used for 100% casein goods, but most casein fiber is blended with wool, cotton, rayon, nylon and other staple fibers. Blends containing casein may be spun on all the usual systems. a. Cotton system - viscose/casein blends. b. Woolen system - Casein/ wool or viscose blends.
74
c. W orsted system - Casein /wool or viscose blends. d. Flax system - Casein/viscose blends. Table 3: Possible blends and fiber count range with milk fiber. TYPE OF BLENDS
COUNT
100% Milk yarn
10-80 Ne
Milk fiber/ cotton
10-80 Ne
Milk fiber/ cotton/modal
10-80 Ne
Milk fiber/ Tencel
10-80 Ne
Milk fiber/ bamboo fiber
10-80 Ne
Milk fiber/ cashmere/wool
16-80 Ne
Milk fiber/silk
16-80 Ne
Milk fiber/ camel hair
16-80 Ne
Milk fiber/silk/ cashmere
16-80 Ne
Milk fiber/silk/ cashmere/ Tencel/cotton
16-80 Ne
followed by careful washing and acidification with acetic acid. Normal optical bleaching agents may be applied. 4. Dyeing- Casein absorbs moisture readily and does not have a highly orientated structure. Dyes can penetrate into the fiber without difficulty. Casein can be dyed with dyestuffs used for wool. Acid, Basic, Direct and Disperse dyes are used where good washing –fastness is noted as a prime essential. Metal complex dyes give high wash fastness. PH of the dye liquor should be between pH 4 & 6. Dyeing is usually carried out at 90-95 deg c. 5. Printing- Fabrics containing casein may be printed by block, screen, & roller. Acid, basic, direct, chrome, mordant, azoic, vat or pigment dyes may be used. 6. Finishing- Crease –resist finishes may be applied to blends containing casein fiber, using temperatures not higher than 160 deg c. for approximately 2.5 mins.
Chemical processing of Milk Protein Fiber (Casein)
Uses of Milk Protein fiber
Milk protein fiber has different physical and chemical construction from natural protein fiber, care is taken in the following steps; 1. Desizing- Enzyme products may be used, preferably at pH 4.0 to 6.0. If water-soluble sizes have been used, sizing is not necessary. 2. Scouring- Synthetic detergents should be used, preferably under acid conditions, e.g. pH 6.0. 3. Bleaching- Casein fiber is generally white, and bleaching is not usually necessary. If required, it should be carried out under weak conditions, e.g. pH 4.0-6.0 as Casein fibers retain maximum strength and minimum swelling under these conditions. Hypochlorite bleaches should not be used. Bleaching may be carried out with Hydrogen Peroxide – 2 GPL at a pH of 8.0 using Sodium Pyrophosphate. It must be
One of the earliest uses for casein fiber was in the making of feeling for hats. Casein/wool blends are used for knitted berets. Casein/ cotton or nylon blended fabrics are used for interlock outerwear, T-shirts, cardigans, jumpers etc. Casein blended with wool, cotton, viscose, nylon is used in Raschel cloths, coatings, and blanket fabrics. Blends of casein and wool are made into pressed felts for use as floor coverings and used in conventional and tufted carpets. Pile carpets are made using casein -50% and wool or viscose -50%. Acknowledgment: The author is thankful to Mr. Subhash Bhargava FSDC (UK) Managing Director, COLORANT LTD., Ahmedabad, India for giving permission to publish this article.
Bangladesh Textile Today |
Volume 11, Issue 07
Sustainable Fiber
Lyocell fiber market to hit $1.5bn by 2024
Desk Report
According to a new research report by Global Market Insights Inc., Lyocell fiber market size is going to reach over USD 1.5 billion by 2024.
turn has positively influenced the industry.
The Asia Pacific seized the highest share in both revenue and volume and would grow with the similar trend over the forecast timeframe. Growing textiles industry, coupled with enhanced consumer living standards in this region are triggering the lyocell fiber market size. In 2016, the regional industry was more than USD 550 million and will grow at a rapid pace by 2024.
Figure 1: Lyocell Fiber Market worth over $1.5bn by 2024.
be recycled and can be reused after the end of a productâ&#x20AC;&#x2122;s lifecycle. Government initiatives have been taken to adopt sustainable fibers for textile and apparels industry. The apparels segment in North America accounted for a major chunk of the product share (over 40%) in 2016. The environmentfriendly production process of the material also acts as a major driver to boost the lyocell fiber market. There has been a significant impact through social media on the apparel segment, which in
Fashion trends have changed rapidly over the past few years and will continue to do so in the coming years, which will drive the industry growth. Modern technology and fibers have been developed which have escalated the use of better quality materials and has driven the lyocell fiber marker demand. Brands have started focusing on fibers that can
Lyocell Fiber Market
Application
Product Staple Fiber
Apparels
Home textiles
North America
Baby diapers
Surgical products
Europe
Automotive filters
Asia Pacific
Figure 2: Industry background of Lyocell fiber.
Bangladesh Textile Today |
Volume 11, Issue 07
Others
Crosslinked Fiber
Latin America
MEA
According to the report, the petrochemical fibers have been substituted by cellulosic manmade fibers, which has spurred the product adoption in the manufacturing processes. The pressure on synthetic fiber manufacturers has increased due to the increasing demand for naturally derived fibers. The product finds its application in various segments such as baby diapers, home textiles, apparels, automotive filters, surgical products and many more. The healthcare and wound care textiles segment is likely to grow at a robust pace, owing to the evolving technologies for recovery of surgical wounds, thus propelling the lyocell fiber market. Despite numerous opportunities, the lyocell fiber market will face challenges due to its expensive pricing compared to the ecofriendly alternatives. Extra caring for delicate fabrics such as cold rinse, hand wash, and dry-clean can increase the maintenance costs as well. Also, the product shrinks up to 3% after the first wash. These factors will act as lyocell fiber market restraints in the coming years. Some of the major industry players in lyocell fiber market include Lenzing AG, Baoding Swan Fiber Co, Acegreen Eco-Material Technology, China Populus Textile, Chonbang, Qingdao Textiles Group Fiber Technology, Acelon Chemicals & Fiber Corporation and smart-fiber AG.
77
Te c h n i c a l Te x t i l e
Manufacturers need to invest in digital continuity RMG makers also could look for easy ways to transform their apparels into smart responsive and connecting product Textile Today Technical Team Manufacturers have estimated that close to 50 percent of their products will be smart and connected by 2020, a 32 percentage point increase from 2014, according to a recent report by the French professional services company, Capgemini.
Operations at Schneider Electric.
While talking to Textile Today editor, Engr. Hasan Shahriar, a post-doctoral In fact, over 18 percent of the researcher in manufacturers said that they plan North Carolina to stop manufacturing products State University Figure 2: Some of the graphene and nanomaterials made altogether and move to a pure told that a good responsive and communicative materials are displayed in the service-based business model, number of last Intertextile held in Shanghai in March 2018. as per the report. A move in this technologies have direction will make the shift to a been developed in recent times manufacturers need to invest service-based model a business to make textiles responsive and in digital continuity and digital imperative and will require connecting. These applications capabilities to benefit. enhanced capabilities. could easily be incorporated Apparel industry, by the way, is in apparel items as well. He The new report “Digital not far from this trend. There are suggested apparel manufacturers Engineering: The new growth companies who are working to not to think that the smart engine for discrete manufacturers” insert automation and connectivity textile industry is different from by Capgemini’s Digital tools in the apparel. Many them. The smart connectivity Transformation Institute reveals significant developments have technologies now could be easily that the global manufacturing occurred in the field of smart applied in a regular textile mill with industry could expect to see textiles in recent times. With the some necessary small changes. He between $519-$685 billion in invention of graphene; now smart highlighted a great future of such value-added revenue by 2020 textiles are quite as same as the textiles. through the development and wearable clothes. sale of smart, connected devices. Manufacturers have responded “We want to bring value to the It highlights that while the enthusiastically to new market by shifting our business potential returns are significant, technologies and are already model toward rebalancing their IT investments service-based and accordingly. Around 50% of cloud-connected manufacturers aim to spend more architectures. It than 100 million euros in Product is a key way to Lifecycle Management (PLM) differentiate our platforms and digital solutions value proposition in the next two years, while the in the market of proportion of IT budget earmarked pure hardware for maintaining legacy systems has players,” dropped significantly, from 76% in said Antoine 2014 to 55% in 2017. Destribats, “Digital technologies are reshaping Vice President Figure 1: Apparel manufacturers also can adopt (in future) the manufacturing landscape. easy ways of producing smart, automatic, responsive and – Industrial communicative wearable products.
78
Bangladesh Textile Today |
Volume 11, Issue 07
Te c h n i c a l Te x t i l e
Product-based business models are being disrupted by servicebased business model, new skills are needed in a world of smart products, and innovation success depends on the effectiveness of a company’s open ecosystem,” said the report. Jean-Pierre Petit, Head of digital manufacturing at Capgemini said, “With the significant potential gains of smart, connected products and digital continuity predicted in the next two years, the requirement to invest in new technologies is too large for manufacturers to ignore. However, the road to getting there is a challenging one. Manufacturers must balance the priorities between sustaining their core businesses while investing in digital acceleration. They must make investments in digital skills, ecosystems, tools, roadmaps and
Invention of new thin and light durable conductive materials, huge development in nanotechnology and 3D printing etc. has changed the reality of smart textiles a lot. Smart textiles now doesn’t necessary mean hard, weighty and uncomfortable materials, today it has become very light, washable, wearable but heavy duty. More importantly the production of smart textiles is also getting easier day by day.
new ways of working. It will be a lot of work, but for those that get it right there is a sustainable leadership to gain.” The research surveyed 1,000 senior executives from global manufacturing organizations across nine countries: Italy, India,
China, Sweden, Netherlands, Germany, France, UK and the US. These executives were drawn from director-level or above, from a diverse set of functions, and were closely associated with their organization’s digital engineering initiatives. Of the organizations in the survey, 62 percent had global revenues of $2 billion or more. The invention of new thin and light durable conductive materials, a huge development in nanotechnology and 3D printing etc. has changed the reality of smart textiles a lot. Smart textiles now don’t necessarily mean hard, weighty and uncomfortable materials, today it has become very light, washable, wearable but heavy duty. More importantly, the production of smart textiles is also getting easier day by day. This is going to bring a huge change in the future of smart apparel.
AATCC International Training Program on Evaluating Colorfastness & Physical Properties of Textile. Day-1 Programs Overview of Program & Introduc�on to AATCC Basic Colour Theory, Gray Scale for Color Change and Color Staining. AATCC Test Methods 8, 15 (Perspira�on), 107(Water),61(Laundering:Accelerated), 133 (Heat: Hot Press) AATCC Test Methods 135,150 (Dimensional Changes), 179 (Skewness), 172 ( Non Chlorine Bleach) & 188 ( Sodium Hypochlorite Bleach
Day-2 Programs AATCC Test Method 16 Ligh�astness, 125 Light Perspira�on ASTM D 1424 Tearing Strength of Fabric by Falling-Pendulum
AATCC Test Methods 124, 88B, 88C, 143 (Appearance), 22, 35, 42 (Water Resistance), 130 (Soil Release)
The Certification:
After successful completion of course the participants will receive prestigious The AATCC Certificate. Also, all participants shall receive one year of free membership in AATCC, which includes a subscription to AATCC Review.
One person from one Organization: BDT 15500/Two or more person from one Organization: BDT 13500/- (Per person) * TTH Alumni will get special discount *
Director, Dysin-chem Ltd. AATCC Certified Trainer. MBA (IBA) University of Dhaka B.Sc. In Electrical And Electronic Engineering (BUET)
ASTM D 3775 Fabric Count of Woven Fabric ASTM D 3776 Mass Per Unit Area of fabric
Date : 11th & 12th August, 2018 Time : 10.00 AM – 5.30 PM
*
Md. Amanur Rahman
ASTM D 5034 Breaking Strength and Elonga�on of Tex�le Fabric
Program Schedule:
Fees:
Trainer's Profile:
Contact:
Sanjoy Kumar Saha Manager Industry Engagement & Sub editor Textile Today Mob: 01734211085
Venue: DYSIN Conference Center & Testing Lab Skylark Point (11th Floor), 24/A Bijoy Nagar 175 S.S. Nazrul Islam Shoronee, Dhaka-1000
Te x t i l e W o r l d
Te x t i l e P e o p l e
Huntsman Textile Effects bags two DMAI awards Desk Report Huntsman Textile Effects, leading provider of high-quality dyes, chemicals and digital inks to the textiles related industries, has got two awards from the 2018 Awards of Dyestuff Manufacturers Association of India (DMAI). The awards were presented at the 68th Annual General Meeting of DMAI in Mumbai. Huntsman Textile Effects received the awards based on the criteria such as technological innovation and process optimization thereby reducing the output of greenhouse gases. “It is an honor to be recognized for our performance in exports and pollution control from the Dyestuff
is a testament to our commitment towards innovation and continual focus in the field of environmental protection and pollution control. We look forward to working towards driving sustainability across the textile value chain.” Figure: Huntsman got two awards in continued recognition of its ‘Excellent performance in Exports of Dyestuffs by a Large Scale Unit’ and ‘Excellent performance in Pollution Control by a Large Scale Unit’. Credit: Intimo Hub
Manufacturers Association of India for the third time,” said Dheeraj Talreja, Commercial Director, South Asia, Middle East and Africa – Huntsman Textile Division, Huntsman Singapore PTE Ltd. He further added, “This recognition
This is the third consecutive year Huntsman Textile Effects has won the DMAI Awards. Last year Huntsman won awards for ‘Excellent Performance in Exports of Dyestuffs by Large-Scale unit’ and ‘Excellent performance in Pollution Control by a Large Scale Unit’. Huntsman Textile Effects also won an award in the category for ‘Excellent Performance in Safety and Hazard’s Control by a Large Scale unit’.
Prof. Nabi Khan selected for the international ‘Holden Medal Award’ Desk Report
Prof Dr. Engr. Ayub Nabi Khan, Pro Vice-Chancellor of BGMEA University of Fashion & Technology (BUFT), is the first Bangladeshi to win the Holden Medal for Education International Award by ‘The Textile Institute, Manchester, UK’ for his outstanding contributions in technology-based education at the levels. The Textile Institute was founded in the year 1910 and was chartered by the British Government in 1925. The Institute has Individual and Corporate members in up to 80 countries; membership covers all sectors and all disciplines in textiles management, art, design, fashion, economics, science, engineering, research, production, marketing, selling, retailing, education and training etc. The award is made to an institute member only. Expressing his pleasure on the selection for the prestigious Holden Medal for education Dr.
80
management, research, process, product and technology development. He did his B.Sc. in Textiles Engineering from the University of Dhaka, M.Sc., and Ph. D from the University of Manchester, the UK in the same field under the Commonwealth Scholarship & Fellowship program.
Figure: Prof Dr. Engr. Ayub Nabi Khan
Khan said, “I am delighted to be selected for the Holden Medal for Education by The Textile Institute, UK, which is truly an International recognition.” “Contributions I have made in Education was especially in the areas of textile management,” he added. Dr. Khan is a renowned Textile Engineer turned educationist having 30 years of experience in teaching, educational planning and management, education and industrial consultancy, project
Prof. Khan is a Syndicate Member of Bangladesh University of Textiles (BUTEX). He is a Fellow of Textile Institute the UK and Section Chairman of International Textile Institute UK Bangladesh section and the executive editor of Bangladesh Textile Today. He is the youngest son of late Alhaj Rashid Ahmed Khan and late Alhaj Noorjahan Begum. On 25th July 2018, The Textile Institute, The University of Leeds, will arrange an International Conference to hand over this award.
Bangladesh Textile Today |
Volume 11, Issue 07
PPI Training on
Garment Printing Technology
Content: Various Printing Techniques. Functionalities of printing chemicals. Factors considering in material selection.
Date: 22nd , 23rd, 29th & 30th September ,2018
Methodology of Screen Printing. Variety of Textile Screen Printing. Pre-press details. Advanced printing technology. Details analysis of Water Base printing including fashionable effects.
Time: 09.00 AM â&#x20AC;&#x201C; 5.00 PM
Plastisol printing & its effectiveness. Solvent Base printing scope in Bangladesh. Effects create with Silicone Printing agents.
Eligibility: Minimum graduate in any discipline interested in garment printing area. H.S.C with minimum 2 years related practical/factory experience
Course fee: BDT 9,900/- (Nine thousand nine hundred taka only). ** TTH Alumni will get special discount. ** 2 or more participants from one organization will get 20% discount.
Who should attend?
Mentorâ&#x20AC;&#x2122;s Profile
Executives, Supervisors from textile printing industry & its related personnel who are eager to be more competitive in manufacturing and business.
Monirul Alam Sr. General Manager-Printing DYSIN-CHEM LTD. More than 18 years of experience in textile printing chemicals manufacturing & its application. He is pioneer to introduce Plastisol, Solvent Base, Silicone base printing chemicals successfully in Bangladesh.
Textile graduates who are interested to build up career in garment printing sector. Executives from dyes, chemicals, machinery or advisory service providing organization of the garment printing industry.
J o i n t l y o rg ani z ed by
Transforming Human Capital
P l e a s e b o o k y o u r s e a t h e r e : w w w. t r a i n i n g . t e x t i l e t o d a y. c o m . b d Contact Sanjoy Kumar Saha Textile Today M. 01734211085 E. training@textiletoday.com.bd
Venue DYSIN Conference Center & Printing Demonstration and Workshop in Mirpur, Dhaka-1000
Foundation Course on
Factory Skills Development in
Merchandising Course summary Number of days : 5 (One Day/Week) Number of Class : 10 Duration : 2 hours per class
Date: 22th, 29th Sept, 6th, 13th & 20th Oct 2018
Time: 4.00 PM – 8.00 PM
Pricing and costing:
Mentor’s Profile
Costing and technic of negotiations
Sourcing: Factory, Raw Materials, Print and Embroidery and Logistics
Commercial and logistics: Payment terms, Commercial issues and Logistics
Follow up: Technic of successful follow up, new development and production
MS word and Excel:
Ashfaque Ahmed Director Operations Promoda Textiles Ltd.
Md. Mahbubur Rahman Sr. Merchandiser Li & Fung Ltd.
Mir Shahed Chowdhury Managing Director Huaren Linen Group Executive Attire Ltd.
Mohammad Mezbah Uddin Executive Director T&M Sourcing Ltd.
Booking, PO, PI, IV, Packing list, Delivery challan, Lead-time, Critical path making
Factory opening: Factory sourcing and factory assessment
Quality & Inspection: Understanding of qualities, Testing, AQL & Inspection
Eligibility ∠ Textile & Apparel Engineering students who has completed minimum 3rd year of B.Sc. degree. Students having ‘Internship/Factory Attachment’ will get preference. ∠ Good academic track record. ∠ 3 years of experience in apparel industry.
Course Fees: BDT 4,900/- (Four Thousand Nine Hundred Taka Only) - 10% discount for Textile Today Subscriber. - 5 or more participants from one organization will get special discount. - TTH Alumni will get special discount.
P l e a s e b o o k y o u r s e a t h e r e : w w w. t r a i n i n g . t e x t i l e t o d a y. c o m . b d
Te c h n i c a l t e x t i l e
UBC discover process to eliminate wrinkling in textile composite manufacturing Desk Report Textile composites are known for their strength and durability. Researchers at UBC’s (University of British Columbia) Okanagan campus are working to solve the issue of wrinkling when it comes to making textile composites. Abbas Milani, a Professor in UBC Okanagan’s School of Engineering explained that a simple wrinkle in the manufacturing process can significantly alter the end product—sometimes diminishing its strength by 50 percent. Wrinkling is one of the most common flaws in textile composites, which are widely used for prototypes, as well as mass production within prominent aerospace, energy, automotive and marine applications, Abbas Milani explained. To iron out the problem, researchers at UBC’s Composite Research Network-Okanagan have investigated several dewrinkling methods and have discovered that they can improve their effectiveness by pulling the materials in two directions simultaneously during the manufacturing process. They did this by creating a custommade biaxial fixture -- a clamp that stretches the textile taught and
Figure 1: Engineering Professor Abbas Milani and a graduate student Armin Rashidi use 3D scanning equipment to analyze textile composites. Credit: UBC Okanagan
removes unwanted bumps and folds. The challenge was to avoid unwanted fiber misalignment or fiber rupture while capturing the out-of-plane wrinkles. “Manufacturers who use these types of composites are looking for more information about their mechanical behavior, especially under combined loading scenarios, “said graduate student Armin Rashidi. The research included stretching the material and then using specialized image processing and 3D scanning to analyze the required forces and its impact on the wrinkling and de-wrinkling of the material. As we continue to innovate in
Formation of wrinkles
De wrinkling process
the area of composite textiles to include more polymer resin and fiber reinforcement options, this research will need to continue in order to provide the most up-todate analysis for manufacturers in different application areas. It is important for designers to be able to predict the right amount of force needed to diminish the wrinkles in the final product, explained Milani. To do this, his team of students has created a multi-step test to assess the magnitude of the required forces needed to smooth out wrinkles of different sizes that were formed at different shear angles of a comingled fiberglass-propylene plain weave fabric.
Analysis
Results
Figure 2: Graphical representation of the process.
Bangladesh Textile Today |
Volume 11, Issue 07
83
Te x t i l e W o r l d
The US desperate to increase cotton export to Bangladesh Desk Report China has recently imposed 25 percent retaliatory duty on the import of cotton from the US as part of the ‘trade war’ between the two countries. The US cotton growers have fall in dire concern fearing the great consequences they face due to the added duty. And so they have been urging China not to be severe on agricultural goods. Meanwhile the US government is coming up with big bail out for the farmers to protect them. And eventually the cotton growers are also desperately looking for alternative markets. Bangladesh is the largest cotton importer in the world, while the United States is the largest exporter and the US share in the Bangladeshi cotton market is very less as the latter is overwhelmingly dependent on Indian cotton for feeding its readymade garment industry. To protect its cotton industry from a sudden plunge already US has started competition to get a hold of Bangladesh market. Recently an eight-member Cotton USA executive delegation consisting of Raymond Faus, President of American Cotton Shippers Association (ACSA), Tim NorthACSA, Carlos Garcia- AMCOT, John Lindamood, American Cotton Producers, Steve Wilbur, American Cotton Producers, Tim Barry, Vice President ICE Futures-ICE, Marc Lewkowitz, President of SUPIMA, William Bettendorf, Director of South Asia of Cotton Council International, has arrived in Dhaka to meet Bangladeshi spinning and garment industry and promote use of US Cotton and engage the industries to better understand US Cotton. The Cotton USA organized a seminar in Dhaka on 16 July to celebrate the third edition of Cotton Day in Bangladesh where they highlighted the world cotton
84
on imports,” said Sabbir Ahmed Chowdhury, Program Representative of Cotton Council International (CCI) in Bangladesh. “US cotton, however, can become a bigger Figure 1: An eight-member Cotton USA executive source of high quality, delegations arrived in Dhaka to meet the representatives of the Bangladeshi spinning and garment industry to reliable cotton in promote US Cotton. Photo: Cotton USA. Bangladesh if a level playing field can be created,” said production, supply and demand, William R. Bettendorf, Director of and US cotton fiber quality, Cotton Council International. sustainability, and delivery issues. But there are some difficulties to export cotton in Bangladesh from the USA. That is why the cotton sector leaders from the United States want Bangladesh to lift the old fumigation rules on the import of US cotton as the process imposes an additional cost burden on the importers and spinners and results in increased lead-time. As a guest of honor at Cotton USA, US Ambassador Marcia Bernicat spoke proudly of the strong Bangladesh-US economic relationship. She also noted that the US is the number one consumer of Bangladesh’s exports, especially from its dynamic readymade garment (RMG) sector. American Cotton Shippers Association (ACSA) President Raymond Faus urged Bangladesh to review the restrictions. The restrictions include phytosanitary requirements. Raymond Faus said that only US cotton is subject to fumigation in Bangladesh, allegedly to prevent boll weevil but that boll weevil has been eradicated from the US long ago. “The fumigation rule was enacted in the late 1960s reportedly to protect Pakistani cotton against competition from US cotton. But the rule is irrelevant now as Bangladesh is not a major cotton producer and depends heavily
“And for that, it is necessary to remove those unnecessary restrictions like fumigation,” he added. “Almost no other cotton importing countries including China or Vietnam have that phytosanitary requirement,” Bettendorf noted. “Long transit time coupled with the congestion at the Chittagong port increases the cost while also creating much more exposure to price volatility,”said Faus, who is the CEO of US cotton giant Omnicotton. “Cotton from the United States is machine picked, it is contaminationfree and it can also provide a more reliable supply,” he added. Tim G North, who is the CEO of ECOM USA, said that the US cotton is independently classed by the US Department of Agriculture. Therefore, it is more reliable in terms of quality and characteristics. US sees Bangladesh as the alternative of china, however, it’s not going to be easy for them as Bangladesh imports most of their cotton from India.
Figure 2: US wants BD will withdraw cotton import restrictions.
Bangladesh Textile Today |
Volume 11, Issue 07
Zhejiang Runhe Chemical New Material Co. Ltd.
Circular Fashion
‘Worn Again’ to accelerate its patented recycling technology Desk Report Worn Again Technologies, a British start-up developing polymer and cellulose recycling technology, will bring its patented innovation to market after hitting GBP5m (US$6.6m) investment target. After more than six years of intensive R&D, the company is coming out of the lab and bringing its patented technology to market. Worn Again Technologies patented process can separate, decontaminate and extract polyester polymers and cellulose (from cotton) from non-reusable textiles, as well as plastic bottles and packaging, to go back into new products as part of a repeatable process. The company, which was founded in 2005, explained that the innovation cracks the code not only by being able to separate both polyester and cotton but also by being able to produce two end products that are both comparable in quality and have the aim of being competitive in price to virgin resources. “The process saves energy and will accelerate us towards a waste-free, circular resource world,” according to the company. “There are enough textiles and plastic bottles ‘above ground’ and in circulation today to meet our annual demand for raw materials to make new clothing and textiles,” said Cyndi Rhoades, CEO of this company. “With our dual polymer recycling technology, there will be no need to use virgin oil by-products to make new polyester and the industry will be able to radically decrease the amount of virgin cotton going into clothing by displacing it with new cellulose fibers recaptured from existing clothing,” he further explained.
86
a grant to become the first chemical recycling technology to be Cradle to Cradle (C2C) certified.
Figure: Worn Again has developed its recycling technology process in the lab for six years.
Current recycling method At present, less than 1% of nonwearable textiles are turned back into new textiles due to technical and economic limitations of current recycling methods. According to the company, “It can reprocess pure and blended cotton and polyester textiles (together representing 80% of all clothing and textiles) meaning its solution offers the potential to increase the recycling of raw materials in textiles exponentially from the current 1%, with no price premium to manufacturers, brands or the consumer.” Cambridge Ph.D. and Worn Again Technologies Chief Scientific Officer, Dr. Adam Walker, said, “The solution to the world’s plastics problem is not to stop using plastic altogether,” Adam Walker explained that we have a solution to address the burgeoning need for recycling non-wearable textiles and plastics and we have been clamoring to get on with it for many years. “This investment, combined with the increasing geopolitical awareness of the need for this technology, is enabling us to push through the scale-up and validation work to reach the market on an accelerated timescale,” he added. The company was recently awarded
Angel investor and Chairman Craig Cohon, said, “For the last few years, fighting against industry inertia and resistance to investing in our solution was incredibly difficult. Everyone in the industry was waiting for someone else to take the lead.” The catalyst for the investment The catalyst for the investment was fashion retailer H&M, now joined by new partners including Sulzer Chemtech, one of the world’s largest chemical engineering companies; Mexico based Himes Corporation, a garment manufacturer; Directex, a textiles producer, and Miroslava Duma’s Future Tech Lab. The combined investment and support enables the optimization phase of the technology in the lab as well as industrial trials, scaling and designing of the industrial process with Sulzer Chemtech. These crucial steps will finalize developments to the point at which the technology is complete and ready for commercialization. Worn Again Technologies has also partnered with Qvartz, a management consultancy firm with Nordic roots and global reach, to support its direction setting, partnership development, and commercialization model. Worn Again Technologies is currently enlisting local, national and global investors and strategic partners who want to be part of the rapid expansion plan as it prepares for the first industrial demonstration plant to be launched in 2021.
Bangladesh Textile Today |
Volume 11, Issue 07
Fa c to r y Awa rd
16 apparel companies received national export trophy for FY 2014-15 Desk Report Recently the government has handed over the ‘National Export Trophy’ to 63 companies including 16 apparel companies’ for their extraordinary performance in export for fiscal 2014-15. Honorable Commerce Minister Tofail Ahmed gave away gold, silver and bronze trophies to the company’s representatives on 15 July at a program, organized by the Export Promotion Bureau (EPB) in the capital. The award was given on different categories, including garment, yarn, textile fabrics, home textile, terry towel, frozen foods, raw jute, jute goods, finished leather, leather goods, footwear, agricultural products and agro-processed products. Zaber and Zubair Fabrics Limited has won the gold trophy for the fourth consecutive year for their highest contributions to national exports in the fiscal year 2014-15.
Figure 1: Industry owners get the export award for the contribution of country’s economy
In woven products category, AKM Knitwear Limited won gold, Rifat Garments won silver and Ananta Apparel Limited won the bronze medal.
In the spinning category, Kamal Yarn Limited won gold medal where Badsha Textile Limited won silver and Sufia Cotton Mills Limited won the bronze medal.
While, in knitwear category, Fakir Knitwear Limited won gold medal followed by GMS Composite Knitting Industry Limited silver and Square Fashion bronze.
In the textile category, Envoy Textile won gold medal where Paramount Textile Limited won silver and Hamza Textile Limited won the bronze medal.
Company Name
Category
Export in million
Zaber and Zubair Fabrics Ltd.
Gold
207.78
AKM Knitwear Ltd.
Gold
138.20
Fakir Knitwear Ltd.
Gold
128.99
Envoy Textile Ltd.
Gold
50.40
Noman Terry Towels Ltd.
Gold
44.03
Universal Jeans Ltd.
Gold
195.16
Rifat Garments Ltd.
Silver
126.97
GMS Composite Knitting Ind. Ltd.
Silver
145.16
Badsha Textiles Ltd
Silver
83.54
Paramount Textile Ltd
Silver
36.59
ACS Textile Ltd
Silver
89.75
Pacific Jeans Ltd.
Silver
51.43
Ananta Apparels Ltd
Bronze
92.62
Square Fashions Ltd.
Bronze
111.26
Hamza Textile Ltd.
Bronze
22.04
Vintage Denim Studio Ltd.
Bronze
43.07
Figure 2: 16 apparel companies received national export trophy. Source: EPB
Bangladesh Textile Today |
Volume 11, Issue 07
Zaber and Zubaer Fabrics Limited won gold medal followed and ACS Textile silver in Home Specialized Textile. “Not only the export volumes of the companies but also other compliance issues related to tax payment and environmental sustainability were considered while selecting the awardees,” said Bijoy Bhattacharjee, Vice-chairman, Export Promotion Bureau. “Business people play an important role in the development of the country’s economy. Government is firmly committed to provide all-out cooperation for ensuring businessfriendly environment,” Tofail Ahmed, Minister of Commerce. “On the other hand, the government has taken necessary steps to enlarge the export earnings. We are providing policy support and cash incentives
87
Fa c to r y Awa rd
R e t a i l e r s To d a y
against the export,” added Tofail Ahmed
Director, Envoy Textile, a green factory in the textile sector.
What makes it possible?
“Quality of products and maintaining commitment with buyers to deliver products on time is a key to achieve a sustainable growth in export earnings,” said Salam, also a Former President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“It is seen that a particular number of companies are winning awards for consecutive years. It indicates that they are maintaining quality in products and getting more work orders. As a result, they are becoming eligible for awards,” Former Advisor to caretaker government AB Mirza Azizul Islam said to the Textile Today.
“In achieving such recognition, I think, maintaining good practices of sustainable business and professionalism in marketing are the key to success,” said Syed M Tanvir, Director of Pacific Jeans, a winner of the silver trophy. While consistency in products quality and on-time delivery is a must, he
The government should move for making the other companies to capable for the award, which would push the country’s exports earnings. At the same time, the manufacturers should go on valueadded products through research and innovation to enlarge export earnings.
Some of the winners showed continuous growth in exports earnings and they bagged awards for several years in a row. But the question is, how an exporter consistently performed well and maintain a sustainable growth. Talking to Textile Today, some of the winners unveiled their secrets behind the success story. “In maintaining a sustainable growth in the export market, there are no short-cut ways and one has to ensure best practices at every stage of production,” said Abdus Salam Murshedy, Managing
added.
H&M profits shrink in first six months of FY 2018 Desk Report Due to rapid transformation of the fashion retail sector profits at fastfashion chain H&M went down by a third in the first six months of the financial year ending on 31st May 2018. The Swedish retailer Hennes & Mauritz (H&M) said it in a press release on 28 June. According to the H&M, profits “after financial items” were SKr7.3 million (€702,000) over the period to May 31st and SKr6 million in the quarter between March and the end of May, while the groups’ profit after tax for the half-year fell by nearly a third to SKr6 million from SKr8.4 million last year. Sales at the world’s second-largest fashion retailer remained broadly flat over the period, though poor trading at the start of the year was helped by a 2 percent rise in the second quarter. Pretax profit for the quarter was also in line with last years’ figure. Chief Executive of H&M, KarlJohan Persson said, “As we
88
signaled previously, it was going to be a tough first half-year. We went into the second quarter carrying too much stock and we still had some imbalances in the H&M assortment – something that we Chief Executive of H&M, Karl-Johan Persson said, “As we signaled previously, it was going to be a tough first halfyear. We went into the second quarter carrying too much stock and we still had some imbalances in the H&M assortment – something that we are gradually correcting.” are gradually correcting.” The company strikingly refused to confirm its full-year guidance of a “somewhat better result” this year compared with 2017, leading some to wonder if it had issued an implicit profit warning. Persson further added, “It has
become tougher to reach the fullyear guidance, but there is still half a year to go.” Investments of H&M in online platforms were “starting to have results”, H&M said, “Total sales for the quarter were not satisfactory, which meant that inventory levels were still too high at the end of the period. Overall, the first half of the year was somewhat more challenging than we initially thought.” Nils Vinge, Head of investor relations said, “The high level of stock compared with revenues was in large part due to a stagnant top line. It had been a long time since the growth has been so slow in the business. Of course it’s a concern. We work hard to get back to a leaner level.” According to the press release, H&M has been particularly vulnerable to changes in customer habits and the boom in online shopping, given its reliance on opening large numbers of stores.
Bangladesh Textile Today |
Volume 11, Issue 07
News & Analysis
Huge gap in workers’ and owners’ proposition for minimum wage Both the worker’s and owners’ representatives have placed the proposals separately to the RMG Wage Board. Staff Correspondent Apparel worker’s representative at the Minimum Wage Board for the garment industry has proposed a Tk 12,020 monthly minimum wage for garments workers. On the other hand, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the platform of owners, has proposed Tk 6,360 as minimum wage. As an owners’ representative BGMEA President Md Siddiqur Rahman and workers’ representative Shamsun Nahar Bhuiyan have submitted the proposals to the Minimum Wage Board after a meeting on Monday. “Both the worker’s and owners’ representatives have placed the proposals separately to the board. After having a review on the proposals, the board will recommend a minimum wage for the workers as soon as possible,” Minimum Wage Board, Chairman Syed Aminul Islam told the reporters after the meeting. In the workers’ proposed amount,
Figure: Now RMG workers get a minimum wage of 5,300 Tk., which is not enough to fulfill their minimum standard of life. Credit: PA PHOTOS
Tk 7,050 has been shown as basic, Tk 2,820 as house rent, Tk1,000 and Tk 500 as medical and transport allowances, while Tk 650 as food subsidy. Meanwhile, BGMEA has proposed Tk 6,360 with a basic of Tk 3,600 of which Tk 1,440 (40% 0f basic) for house rent, Tk300 for medical allowance and Tk 240 for transportation and Tk780 as food subsidy. In addition, the workers’ representative has also proposed
Details of the proposal
Proposal of worker’s repre-sentative
Proposal of owners’ repre-sentative
Basic
7,050 Tk
3,600 Tk
House rent
2,820 Tk
1,440 Tk (40% of basic)
Medical cost
1,000 Tk
300 Tk
Transport allowances
500Tk
240 Tk
Food subsidy
650 Tk
780 Tk
Washing cost of dresses
200 Tk
0
Children education expenses
500 Tk
0
Yarely increment
10 %
0
Festive bonus
20%
0
Total
12,020 Tk
6,360 Tk
a 10% yearly increment on basic and 20% festive bonus on basic, for Bangla New year, Tk 500 for children education expenses and Tk 200 as an allowance for workers to bear washing cost of dresses.
“As per the direction of the Minimum Wage Board, we have placed the proposals to the board. In preparing the proposals, a total of 11 issues have been taken into consideration,” BGMEA President Md Siddiqur Rahman said. The focus was given on the inflation rate in the last few years, said the BGMEA leader. I hope, the board will reach to a consensus to recommend a minimum wage addressing the industry’s capacity and workers’ needs, he added. “It has been almost impossible to lead a life with family members with the present salary structure as the prices of essential commodities has increased,” Shamsun Nahar Bhuiyan. Considering inflation rate, living costs and other issues, we have proposed Tk 12,020 as monthly minimum wage, said Shamsun. In 2013, the government-formed wage board set Tk 5,300 as minimum wage with a basic of Tk 3,000 for entry-level garment workers.
Table: Worker’s and owners’ representative’s proposal for RMG workers.
90
Bangladesh Textile Today |
Volume 11, Issue 07
S u s t a i n a b i l i t y To d a y
Price should be increased considering huge investment in improving Safety Bangladesh Sustainability Compact was reviewed in Brussels on 25 June at the fourth high-level follow-up meeting Akhi Akter Price of apparel products should be increased considering huge investment made by apparel manufacturers that helped improved safety measures and working environment. Commerce Minister Tofail Ahmed demanded it while delivering his speech at the fourth highlevel follow-up meeting of the Sustainability Compact entitled “Five Years after the Launch of the Sustainability Compact: Taking Stock and Staying Engaged” held on 25 June 2018 in Brussels at Albert Borschette Conference Centre. At the event, progress made under the Compact as well as what remains to be done were discussed. The Sustainability Compact aims at bringing lasting improvements on labor rights and factory safety in the ready-made garment industry of Bangladesh. Since its establishment, the Compact partners have actively engaged to address labor, health and safety issues and to encourage responsible business conduct by all stakeholders engaged in the ready-made garment (RMG) and knitwear industry in Bangladesh. As part of this process, regular followup meetings have taken place. In response to a tragic incident of Rana Plaza in April 2013, the European Union, the United States, the International Labor Organization (ILO) and the Government of Bangladesh signed the “Compact for Continuous Improvements in Labor Rights and Factory Safety in the Ready-Made Garment and Knitwear Industry in Bangladesh”. The Government of Canada subsequently joined in January 2016. The Compact is built on short and
92
Figure: Price of apparel products should be increased considering huge investment made by apparel manufacturers to improved safety measures and working environment.
long-term commitments related to three inter-linked pillars: respect for labor rights; structural integrity of buildings and occupational safety and health; and responsible business conduct. Within the framework of the Compact, the ILO has undertaken to support and monitor mplementation of a number of specific commitments made by the parties. Bangladesh has reported significant development achieved in the fields of workplace safety and compliance across its factories at the meeting. Minister Tofail said Bangladesh government has amended its Labour Law and the workers are enjoying their rights better than any time in the past. He said Bangladesh has taken preparation to avail of GSP plus benefit as Bangladesh is marching ahead towards a developed country. Member of the European Parliament (MEP) and South Asia Trade Monitoring Committee within the European Parliament Sajjad Karim said that Bangladesh needs to deliver
on its Sustainability Compact commitments or risk advancement in its trade status. Dr. Karim reminded it Tofail Ahmed during a meeting of the South Asia Trade Monitoring Committee within the European Parliament on 26 June. He uttered his concern that the Bangladesh government needs to make more progress on its compact obligations. Graduation from the Everything but Arms (EBA) trade status to the Generalized Scheme of Preferences (GSP+) was not to be taken for granted, he added. State Minister for Labor M Mujibul Haque Chunnu, Commerce Secretary Shubhashish Bose, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) M Shafiul Islam Mohiuddin, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President M Siddiqur Rahman and Bangladesh Export Processing Zones Authority (BEPZA) Executive Chairman Major General Mohd Habibur Rahman Khan, among others, were present at the fourth high-level follow-up meeting.
Bangladesh Textile Today |
Volume 11, Issue 07