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Z.H Sikder University of Science & Technology: Course Title
Z.H Sikder University of Science & Technology: Course Title
Z.H Sikder University of Science & Technology: Course Title
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Presentation On
Textile Industry in Bangladesh
with its Limitations and Recommendations
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Presented By
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Contents
Part-1
Introduction.
Numbers of various sectors of textile industry.
Various Sub-sectors and their contributions in textile industry.
List of top five textile industry in Bangladesh.
Textile Manufacturing Chain.
Part-2
Limitations and Challenges.
Recommendations.
Conclusion.
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Introduction
The textile industry provide the single source of economic
growth in Bangladesh’s rapidly developing economy. Exports of
textiles and garments are the principal source of foreign
exchange earnings.Bangladesh is the worlds second biggest
exporter of clothing after China. Readymade Garments(RMG)
make up 80% of the country’s $24 billion in annual exports and
15% share of GDP. But due to some limitations and challenges
this sector does not fulfill their target.
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Numbers of various Sectors of textile industry
As per the BTMA(Bangladesh Textile Mills Association):
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Various Sub-Sectors and
their contributions in textile industry
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List of top five textile industry in Bangladesh
1. Ha-meem Group.
2. Beximco Fashions Ltd.
3. Opex Sinha Group.
4. Standard Group.
5. Fakir Group.
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Textile Manufacturing Chain
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Limitations and Challenges
Current Limitations for rapid growth of textile industries are
describe below:
1) Lack of Research and Development (R&D) in cotton Sector:The
Lack of R&D in the cotton sector of Bangladesh has resulted in low
quality of cotton in comparison to rest of Asia. Because of
subsequent low profitability in cotton crops farmers are shifting to
other cash crops. Such as: jute, sugar-cane etc.
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2) Lack of Modernize Equipment: Moreover, critics argue that the
textile industry has back-dated equipment and machinery. The
inability to timely modernize the equipment and machinery has
led to the decline of Bangladesh textile competitiveness. Due to
old technology the cost of production is higher in Bangladesh as
compared to other countries like China,Japan,India.
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3) Increasing cost of production: The cost of production of textile
rises due to many reasons like-
increasing interest rate
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4) Energy crisis(Electricity crisis): As a consequence of load-
shedding the textile production capacity of various sub-sectors
has been reduced by up to 30% which also reduced the export
order. Many joint meeting of organization were held at different
times to formulate the alarming electricity crisis.Due to load
shedding some mill owner uses alternative source of energy like
generator which increases their cost of further production.
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5) Gas storage: Lack of gas storage in textile industries despite a
significant increase in temperature. Continuous gas disconnection
over months, causing huge production losses are badly affecting
the capability of the industry. For the larger interest of the
economy and exports, the government should ensure utility
companies provide smooth electricity and gas supply to the
textile industry.
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6) Safety and green business policy: After Rana plaza and Tazrin
garments incidents industrial safety become an important issue
for foreign buyers. Safety and green business policies rules
sometimes become the reason for not getting renowned buyer
order. According to a report on The Daily Star published on 9th
October 2018, there are 73 Bangladeshi LEED green garment
factories certified by the USGBC. There are some 320 factories are
waiting to get this certificate. Economic zone of RMG sector are
strictly on these rules and regulation as well as other sites
factories are willing to certified themselves as safe and
environmental friendly organization.
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7) Raw material prices: Prices of cotton and other raw material used
in textile industry fluctuate rapidly in Bangladesh. The rapid
increase in the raw material price affects the cost of production
badly. In order to decrease the raw material price for textile we
need to increase our production capability. Govt. should take
serious step to survive the textile industry.
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8) Export Performance of the textile sector: Although the export
performance of textiles sector in Bangladesh lies in a satisfactory
level but still a great concern to Bangladesh due to high
production cost, power storage and other issues.
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There are some weak points of our textile industry which makes
our business challenging. These are:
Lack of local experts.
Lack of marketing tactics and skillful middle management.
Bad fame of country due to political issues and corruptions.
Lack of large group of companies to attract foreign buyers.
Demand supply gap for both yarn and fabric.
Lack of new investment.
Lack of ETP unit and waste disposal unit.
Increases of tariff in textile sector.
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Recommendations to overcome
the challenges to growth of textile industry
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Incessant energy supply to textile units.
Issues relating to the market access.
Quality products with timely delivery.
Proper maintenance of the ETP and disposal unit.
Decreases the raw material prices.
Increase the R&D in cotton sector.
Government should provide subsidy to the textile industry.
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Conclusion
2020 is going to be a crucial year for both the Bangladesh’s
garments and textile industry. RMG sector has created a
success story for Bangladesh. This sector has a goal to achieve
50 billion export targets by year 2021 that will cover 8-10% of
total apparel export of the world market. The reduction of such
problems will automatically improve the market position
resulting in improved opportunities for the expansion of
Bangladeshi textile industry.
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