Presentation|_Mr._Shafiqul_I_Sarker

Perspective : Bangladesh Textile and Cotton Shafiqul I. Sarker Managing Director, Purbani Bangladesh

population 165 MN

gdp 261 billion

Population Density 1,074 km2

literacy 72.9%

Land 1,47,570 km2

Maritime 1,18,813 km2

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

13 March 2019

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Demographic Dividend 59.21% (15-54 Years)

Strategic Location in Asia

6-7% Gdp Growth rate

28th largest Economy by 2030

Dhaka Nexus

75 Economic Zones

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

13 March 2019

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BANGLADESH TEXTILE INDUSTRY IN FIGURES

Sari

Knit Woven Other

Lungi

Clothing

Denim

Home Tex

International Demand Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

Home Tex

Domestic Demands 13 March 2019

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2nd Largest

Bangladesh is the second-largest clothing exporter in the world today, behind only China. It has more than 4,500 factories currently operating within the industry, with a majority of them located around Dhaka. (Ref: The Asia Foundation)

In total, the garment and textile sector earns around $31 billion each year in annual exports. That reflects 20% of the GDP. (Ref: EPB Bangladesh) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

$31 billion 13 March 2019

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RMG MARKET SHARE RMG Market Share

7%

6.50%

2016

2017

5.90%

6%

5%

6.40%

4.80%

4.70%

2011

2012

5.10%

5.10%

2013

2014

4% 3% 2% 1% 0% 2015

Figure: Bangladesh’s share of the global apparel market (in percent, Source: WTO) Perspective: Bangladesh Textile and https://www.textiletoday.com.bd/bd-remains-2nd-largest-rmg-exporter-accounting-6-5-percent/ Cotton by Shafiqul I Sarker 13 March 2019

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RMG EXPORT STATUS US$ Billion

Average Growth Rate

50

43.36

35 30

30.61 28.09 24.49

25

35 30

8.76

10.21

10.7

20 15

10 5

0.2

4.08

12.71

12.5

13.24

25

13.83

15.4 12.35

45

40

25.49

19.09

6.56

9.21

16.15

16.59

23.11 6.42

7.9

17.91

1.21

5

13.24

10

28.15

21.52

20 15

RMG Export Growth

0

0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

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USA 37%

For knit clothing, the United States takes the top spot for the export market, accounting for 37% of the buyers that happen for the garment industry. Germany and the United Kingdom account for 24% of total knit buys. (Ref: Ritsumei)

Outside of Europe and the United States, only Canada provides more than $1 billion in export revenues to the Bangladesh garment industry each year. In the last reporting year, Canada provided $1.03 billion in revenues.

If the nations of Europe are taken independently, that makes Canada the 7th largest market for the industry.

(World Integrated Trade Solution) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

13 March 2019

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0

10

20

30

40

50

60

70

80

67 Bangladesh 40 Indonesia Factories 30 India 10 Sri Lanka

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

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Bangladesh has been extraordinarily successful in growing its economy and spreading the benefits of that growth across society. Since the 1980s, the country has averaged 5%–6% annual gross domestic product growth.

This growth was accompanied by a significant decline in poverty, an increase in employment, greater access to health and education, and improved basic infrastructure. As a result, the once poor country is now considered middle income.

The next goal is to reach upper-middle-income country status by 2021. This ambitious initiative will require annual GDP growth of 7.5%–8% and will entail overcoming significant obstacles and seizing on new opportunities brought about by changing global circumstances.

Perspective: Bangladesh Textile and Cottonhttps://www.dhakatribune.com/business/2018/08/08/bangladesh-to-set-export-target-of-39by Shafiqul I Sarker 13 March 2019

billion-for-fy19

11

In Million MT Total Production

Import

Total Supply of Bangladesh

0.19

2.01

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

13 March 2019

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Domestic

Domestic, 0.8

Export (RMG, Other), 1.395

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

Woven & Others

Knit

Woven & Others, 0.395

Knit, 1

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7.6

7.2 11.4

12.41

11.65

10.3

25 20 15

14.5

6

6

5.5

8

8.7

10

9.6

20

9.8

12

9.8

11.05

14

10.3

9.1

10 7.3

4

5.6

8.3 6.5

5.1

2

5

2.1

0 2006

2007

2008

2009

2010

2011

Spindle Capacity (In Mn) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

2012

0 2013

0 2014

2015

2016

2017

Growth in spindle capacity (%) 13 March 2019

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2450

2250

3000

8.89%

5.56%

5.26%

5750

5000

4250 6.25%

3400

4000

3250

5000

4000

3600

25%

3800

32.65%

6000

5300

7000

6375

47.06%

8000

7600

8000

6800

9000

60% 50% 40% 30%

20%

6%

8.49%

11.76%

10.87% 6.67%

10% 5.26%

10.77%

0%

2000

-10%

1000

-20%

-20%

0

-30%

2004

2005

2006

2007

2008

2009

2010

2011

2012

Cotton Import (In 480 lbs Bales) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

2013

2014

2015

2016

2017

2018

Growth Rate (%) 13 March 2019

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BANGLADESH: MAJOR COTTON IMPORTER

Year Of 2016

Year Of 2017

Year Of 2018

1st

1st

1st

2nd

2nd

2nd

3rd

3rd

3rd

ď ś Above shown last three year’s Import Status. If we review the last three year's cotton import status, We will see that the Cotton Import Ranking of the Bangladesh is either first or second.

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

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Others, 7% India, 26%

West African Countries, 22%

India USA Australia Brazil CIS West African Countries USA, 9%

Others

Australia, 7% CIS, 25% Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

Brazil, 4% 13 March 2019

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India Vs. Others - Cotton Import Growth Import From Others

Import From India

% of Indian Import

49.0%

46.0%

8000

3800

3496

1618 23.8%

40% 35% 30% 25%

4200

20%

4104

5182

3124 3251

2262 3488

1344 1288

3656

1000

2112

2000

1770

26.9%

4000 3000

45%

33.4%

6000 5000

50%

39.3%

37.9%

3530

7000

47.5%

15% 10% 5%

0

0% 2011

2012

2013

2014

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

2015

2016

2017

2018

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Export Destinations in 2018 (Source CCF Group) Italy, 1.02% Others, 2.26%

China, 2.76% Indonesia, 4.90% Thailand, 5.89%

Malaysia, 6.12% Bangladesh, 36.42%

Italy China Indonesia Thailand Malaysia

Vietnam, 13.65%

Vietnam Pakistan Bangladesh Others

Pakistan, 26.98% Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

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Advantage • Pure Shankar 6 is of good quality though it is difficult to source.

• Short Lead Time.

• Better Cotton Initiative.

• Organic cotton.

Scope of Improvement • Quality consistency.

• Reduction of Contamination.

• Less Moisture content needs to be controlled (Currently, 1% to 2% higher than others).

• Reduction of NEPS. • NTBs like Export Banning needs to be avoided.

Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker

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