RMG sector: Bangladesh loss is India gain

[my2cents]

India could emerge as largest apparel sourcing centre in five years - The Economic Times

TIRUPUR: India could emerge as the largest hub for sourcing of apparel and knitwear garments in the next five years, a top official of Apparel Export Promotion Council has said.

"With China showing more interest in engineering and IT sector and Bangladesh being looked at as a non-compliant country, global players,both in traditional and non-traditional markets are eyeing India's potential for outsourcing with great interest," A Shaktivel, Chairman, AEPC, told reporters here last night.

He said India could emerge as the largest hub for sourcing of apparel and knitwear garments in another five years.

Stating that India has been at a cost disadvantage compared to Bangladesh, Vietnam and others, he said this year was better as non-compliance issues in Bangladesh have resulted in increased orders to India.

India, with its fairly high level of compliant garment export factories, has become an attractive sourcing destination and apparel exports in the first five months of this fiscal has shown a 14 per cent increase in Dollar terms, he said.

With this growing trend, apparel exports can easily cross the targeted 17 billion USD export this fiscal, he said, adding Tirupur, with an export turnover of between Rs 12,500- 13,000 crore last year, did business of Rs 6,500 crore till August.

Shaktivel said AEPC delegations would visit Israel, Japan and Australia to strike deals with major buyers there.

On availability of raw materials, like cotton yarn to meet the huge increasing requirements, he said there were no problem on that front though fluctuation in yarn price was a cause of concern.

"Overall it would be a good period for the apparel sector from now," Shaktivel said.
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Guys - if you don't get your act together your neighbors will take over your only export market in next 5 years. Don't come crying that this is all Rawami design to destabilize your country.

 

[TopCat]

Guys - if you don't get your act together your neighbors will take over your only export market in next 5 years. Don't come crying that this is all Rawami design to destabilize your country.

Source: http://www.defence.pk/forums/bangla...bangladesh-loss-india-gain.html#ixzz2gpCI0Ucf[/B]

Neither you nor the author know anything about BD garment industry. India taking over is a far cry when Indian manufacturing sector witnessing 1-2% growth rate in the last 5 years.. We see Myanmar is a far better contender than India.

 

[MULUBJA]

We should focus more on garment industries as it is a very employment generator after farming.

 

[Jako]

Neither you nor the author know anything about BD garment industry. India taking over is a far cry when Indian manufacturing sector witnessing 1-2% growth rate in the last 5 years.. We see Myanmar is a far better contender than India.

We know that the workers are stuffed in buildings meant to collapse & burn. Get real, if BD doesnot ensure workers safety as per international norms it is set to lose big.

 

[TopCat]

We know that the workers are stuffed in buildings meant to collapse & burn. Get real, if BD doesnot ensure workers safety as per international norms it is set to lose big.

Its not only Bangladesh, even the foreign buyers are investing heavily to improve the safety standard.

Dont get too complacent as Indian standard are not any better, only that India operates garments in smaller facilities. After the Rana plaza, a Indian factory also collapsed in Bombay.

 

[Manindra]

My current location is "Knit City" Tirupur.

 

[TopCat]

But we only see negativity surrounding Rana Plaza & BD in world media. We see threats of curbing orders targeting BD not India. Thats because you have skills but lack proper management at both top and ground levels. Thats why we see rising numbers of Indian managers being hired. That too low quality managers who dont get any offers otherwise.

You see this in media because we are the giant in this sector. Infact orders increased after the Rana Plaza and will continue to do so. Buyers are putting money to improve the condition not to leave but to stay.

90 global brands to publish list of BD factories producing apparel for them
90 global brands to publish list of BD factories producing apparel for them :: Financial Express :: Financial Newspaper of Bangladesh
More than 90 global clothing brands, mostly European that signed a recent pact for safety of garment workers in Bangladesh, have compiled a maiden list of nearly 1,600 garment factories they are using to produce fast fashion apparel.

However the brands are likely to publish the name of factories they have already compiled as their sources in Bangladesh.

The factories put on the list employ more than 2.0 million workers who are now covered by the safety net of the pact known as 'The Accord on Fire and Building Safety in Bangladesh' (AFBSB) initiated in May after the collapse of Rana Plaza at Savar near Dhaka that killed 1,129 people and maimed many in April.

AFBSB, mooted in Europe and signed mostly by European brands, is a legally binding plan to inspect and upgrade factories where serious safety problems are found.

The collapse of the poorly built eight-storey building occurred just five months after a fire incident at Tazreen Fashions that killed some 120 others in November last year at Ashulia, near Savar.

It is the most comprehensive list of Bangladesh factories ever put together, containing specifics on how many floors are there in each building, how many garment manufacturers are operating in the structure, the number of workers, and the complete names and addresses of each firm, according to the IndustriALL, a global union that is working with the brands under the leadership of the International Labour Organisation to implement the accord.

"Most of this information has never been disclosed before in the complex and secretive world of the fast fashion industry," thestar.com, the largest online news site of Canada, quoted Tom Grinter, a spokesperson for IndustriALL, as saying Friday.

"The secrecy of the supply chain is one of the factors that has created the problem worldwide," said Grinter.

For years, North American and European fashion brands have used garment factories in Bangladesh due to the cheap labour and the factories' ability to quickly turn around orders that can keep up with changing fashion demands, said thestar.com.

Companies may have contracts to produce clothes in one factory, but that factory may then contract out some of the work in order that the garments can be produced faster. Those subcontractors can send work out again to other factories, said the Canadian online news site.

Before the collapse of Rana Plaza and the fire incident at Tazreen Fashions some western companies claimed sometimes they were not aware of who was actually producing their products, Mr Grinter told thestar.com.

"Companies in the west say they didn't even know they were sourcing at, Tazreen, for example, or someplace else."

"One of the goals of the new era, under the accord, is to have more transparency and openness. It is a big step forward," Mr Grinter told further to the online newscaster.

The compiling of the list of factories as the sources for their merchandise has been regarded as a positive change for the garment industry and it will prompt safety improvements in Bangladesh.

"Once inspections are complete, reports will be shared among companies and that will be an incentive for suppliers to improve their practices," said Bob Jeffcott, policy analyst at the Maquila Solidarity Network, a Toronto-based labour and women's rights organisation that works to improve wages and conditions of workers throughout the world.

The next time there is a fire, collapse or an industrial accident, there will be a list of 1,566 factories available that describes how many companies were operating in the building and how many employees were present.

Consumers can do their part by checking which companies have signed the accord, he added. Shoppers can soon be confident that clothes they buy from accord brands will no longer be coming from unsafe sweatshops.

"The companies that are part of the accord are part of a series of programmes and those that aren't, are not," Jeffcott said. "Even if you don't know which company is using which factory - if you want to make shopping decisions you can do so, based on who is involved in this programme and who is not."

Only one Canadian company, Loblaw, the owner of Joe Fresh, has signed the accord and only five US firms have joined European pact, AFBSB.

Most North American firms, such as the Hudson Bay Co, have formed an alliance with Walmart and the Gap. The North American Pact (NAP) known as The Alliance for Bangladesh Worker Safety (ABWS) plans to develop a common safety standard for inspection.

^^^^^^^^

When the global brands discloses the name and address of sourcing factories in Bangladesh, then you should know how much more businesses are awaiting for us.

 

[Jako]

The op article seems more rational and logical by present scenario imo.

 

[damiendehorn]

And yet our garment export continue to rise year on year.

 

[my2cents]

Neither you nor the author know anything about BD garment industry. India taking over is a far cry when Indian manufacturing sector witnessing 1-2% growth rate in the last 5 years.. We see Myanmar is a far better contender than India.

Our manufacturing in general is slow because of global downturn. But we saw our growth in textile and garment going up by 14 percent. This is competitive field and there are many players. If you are not safety compliant then something like Rana Plaza happens then $hit hits the roof and you see the orders plummeting. The saying "it is better to be safe than sorry" is apt here.

 

[TopCat]

Our manufacturing in general is slow because of global downturn. But we saw our growth in textile and garment going up by 14 percent. This is competitive field and there are many players. If you are not safety compliant then something like Rana Plaza happens then $hit hits the roof and you see the orders plummeting. The saying "it is better to be safe than sorry" is apt here.

There is no current global downturn except Indian downturn. BD garments are far better compliant than Indian counterpart. We just have too many factories which in turn produces more accident. Saying that, there are plenty of spaces to improve and we are working to improve for the sake of our people. Already 30% of our workforce working in industries and will hit 40% in next 5-10 years.

 

[gslv mk3]

There is no current global downturn except Indian downturn. BD garments are far better compliant than Indian counterpart. We just have too many factories which in turn produces more accident. Saying that, there are plenty of spaces to improve and we are working to improve for the sake of our people. Already 30% of our workforce working in industries and will hit 40% in next 5-10 years. Comparing ourselves with clay footed India is ridiculous.

No global downturn?Kid please-Even Europe is in deep trouble.And Bangladeshi industry?What kind of goods does in manufacture other than RMG?
There is surely no comparison between Indian & BD industries.

 

[fallstuff]

No global downturn?Kid please-Even Europe is in deep trouble.And Bangladeshi industry?What kind of goods does in manufacture other than RMG?
There is surely no comparison between Indian & BD industries.

Shipbuilding Industry in Bangladesh like WMShL.wmv - YouTube

 

[UKBengali]

No global downturn?Kid please-Even Europe is in deep trouble.And Bangladeshi industry?What kind of goods does in manufacture other than RMG?
There is surely no comparison between Indian & BD industries.

Pharmaceuticals, ships and electronics.

 

[dray]

RMG is labour intensive industry with low capital requirement, we should promote it in smaller towns for employment generation.