With nearly 25 years in business, Shangu Tex has become a leading RMG company of Bangladesh. Under the leadership of Maheer Mannan, the company’s Deputy Managing Director and second generation leader, Shangu Tex is focusing on product diversification, capacity enhancement, with plans to establish a new green factory and maximise exposure to buyers worldwide. Things were not easy for Maheer as in 2010, after the passing of Chairman and Founder of the company M. A. Mannan which was a big setback. This was followed by the tragic Rana Plaza collapse, Tazreen Fashions’ fire incident, besides the fluctuating nature of business. Shangu Tex underwent many ups and downs but Maheer not only mitigated the risks, but also moved forward. Constantly innovating, he co-founded Nordic Textile almost a year ago, a company dedicated to sustainable clothing.
In discussion with Apparel Resources (AR), he shared how despite numerous challenges, his motivation to expand and grow stems from the company’s commitment to quality, reach in diverse markets and the support from buyers cultivated over the years.
Shangu Tex’s strength lies in woven garments, offering a broad range of products such as boxers, shirts, tops, lightweight bottoms and denim. This legacy, started by Maheer’s father, continues to grow. The company currently operates 21 production lines with around 1,000 stitching machines and plans to introduce heavyweight products such as jackets and heavier shirts. Infrastructure upgrades are being explored to support this expansion.
While jacket manufacturing is already established in Bangladesh, with significant investments in Cambodia and Myanmar, Maheer remains optimistic about entering this product category. In addition to expanding its product offerings to existing buyers, this diversification will help Shangu Tex attract new buyers.
“There is growing demand in this product category and Bangladesh has the advantage of being strong in sustainability, so we are confident that our factory will receive substantial orders in the long run,” Maheer explained. He also mentioned that some buyers are expanding into the workwear category, prompting the company to explore this segment as well.
The initial plan is to add nine new lines. In tandem with this expansion, the company is focused on streamlining workflows for greater efficiency. Efforts include upgrading the cutting department and exploring IoT investments to minimise machine downtime and improve shopfloor output.
To enhance cost efficiency and support sustainability, Shangu Tex is planning significant investments in sustainable practices, anticipating an increase in global demand for eco-friendly operations.
“Retailers may face green taxation in future, so we need to support them by improving our sustainable practices. In the long run, we are planning a state-of-the-art, green-certified factory with a focus on natural energy,” Maheer said.
| Turnover: US $ 35 million
Employees: 3400 Capacity: 7.00,000 pieces per month Buyers: Volcom, Pierre Cardin, Muji, Vertbaudet, Atlas, Coleman, Monoprix, Ellos, Bel&Bo, Mcs, Jeans Fritz, |
Strengths driving growth and diversification
Having evolved in the business, Maheer firmly believes that there is always demand for quality products. Although market challenges exist, he is confident that buyers will continue to place orders if they trust the supplier to deliver on commitments.
“Our company’s biggest strength is quality and we operate like the Japanese system, conducting 100 per cent piece-by-piece inspections. We have never faced any quality-related issues,” Maheer shared. One of Shangu Tex’s notable clients is the Japanese retailer MUJI.
Supporting buyers on multiple fronts
Shangu Tex has built strong relationships with its buyers, many of whom have encouraged the company to expand its product offerings due to their satisfaction with its performance. To accommodate smaller orders, the company offers lower MOQs, depending on factors such as product type, price, raw material availability and lead time. Dedicated production lines function like a modular system to serve these orders.
Another strength of Shangu Tex is its product development (PD) capabilities. “In terms of PD, we are not afraid to offer our input and ideas to buyers and we often provide extra samples. Sometimes, buyers prefer our styles and we secure orders based on our suggestions,” Maheer explained.
To mitigate geographical risks and diversify its exposure, Shangu Tex works with buyers from various regions. Currently, 40 per cent of its clients are from Japan, 30 per cent from Europe, 15 per cent from North America, 10 per cent from South America and 5 per cent from other regions, including India.
| Nordic Textile is a buying house at the forefront of creating socially responsible products that are sustainable, recyclable, traceable and transparent. It is focused on sustainable sourcing which is the trend of the moment. It works with brands in a top down approach and propels ESG, pushing Digital Passport Technology (DPP) technology forward. It has close association with companies like Unison and Profilsport. The buying house is ensuring complete traceability in order to have maximum business from brands with a sustainable focus. The company has so far reached US $ 1 million and is hopeful to get good business in coming years. |
“We aim to offer a broad range of products to a large and diverse buyer base. As part of this strategy, we are looking to increase our business in the Indian market. We currently serve prestigious brands like Celio in India and are in talks with a few others,” Maheer shared. He also believes that many Indian brands and retailers offer strong potential but need to scale up their volumes to maximise opportunities.
Maheer is selective about the buyers Shangu Tex partners with, preferring those who prioritise quality over cost savings. While many buyers source from Bangladesh for its low-cost advantage, Shangu Tex consistently chooses buyers who value and pay for quality.
Focus on fabric development
To reduce lead times and offer a wider variety of products, Shangu Tex places a strong emphasis on fabric development. The company collaborates with Chinese and Indian fabric suppliers due to the limited availability of woven fabrics in Bangladesh.
“In addition to cotton, we are continuously exploring synthetic fabrics and various blends for our collections. We also seek the expertise of BGMEA and Chinese professionals to stay updated on new fabric types. Some Indian fabric companies have been very supportive in this regard,” Maheer concluded.
