Bangladesh’s RMG industry is facing many challenges but despite that, some of the small and medium level companies are continuously moving forward.
While some are expanding their capacities, few others are adding new product categories and new buyers. Team Apparel Resources recently met few such companies and explored how these companies are performing well and what is motivating them.
Currently depending on sub-contracting, the Children Place Ltd. is planning to add 50 sewing lines and exploring all possibilities of growth. The company is also in the process of adding new markets.
Doing kidswear export to US, Lutful Ahad, Director of the company, shared “We have a strong relationship with our buyers as we always fulfilled our commitment and served best to our clients. We support them with a lot of product development too. To further improve our service and to bring infrastructure in-house we are investing.”
Currently having 10 sewing lines, Kattali Textile Ltd. (Lucky Group), another company from Chittagong, is also adding 10 more lines so that the company’s overall production gets doubled. Emdad, MD and Mohammed Ishad, Director – Finance said that currently they are manufacturing trousers and shirts for US-based clients and with the increased capacity, the focus will remain on the same products and market.
Apart from adding capacities, some of the middle-level companies are also investing in automation Overcoming cost pressure and reducing dependency have been major motivational factors for these companies to adopt automation.
Having own factory, spread over 42,000 sq. feet, with 12 lines and 12 circular knitting machines, Md. Toufiqul Islam, MD, SB Designs Limited (Toufiq Denim & Kidswear Ltd.) informed, “We recently got approved by Walmart, and we have improved well on process loss also. All this could take place due to our investment in automation across the factory.”
Since 2012, the company was doing tees and allied knitted products; however, two years back it started producing kidswear, which has been growing good ever since.
Experts believe that small and medium companies that are having own resources will continue to expand in phases. Some of them are mainly working with wholesalers and importers who have comparatively fewer rules and regulations regarding compliance, and focus mainly on the health and safety of the workers only.