Contribution to the Nation from Readymade Garments Sector:

A Case Study of Trade Post Limited

Introduction:

At independence in 1971, most observers of the newly emerged country took a pessimistic view about the developmental prospect of Bangladesh. Many thought that the country would remain permanently locked in a ‘below poverty level equilibrium trap. Although there is little room for complacency Bangladesh has come a long way from there. About two-fifths of the economy is now connected with the global economy through exports, imports, factor and commodity markets. Bangladesh can now rightfully claim that she has graduated from a predominantly aid receiving nation to a trading nation.

The export-oriented RMG sector has made crucial contribution to this abovementioned transformation of the Bangladesh economy. The role of our RMG entrepreneurs, domestic fiscal and financial, institutional policy support and incentives put in place by successive governments, substantial RMG-supportive linkage activities within the domestic economy and global market opportunities combined to create a story which is, to be honest and true, unparallel in the developing world. When jute and jute goods were losing their traditional markets, with the prospect of drastic fall in foreign earnings it is the RMG sector which came in first to replace it, and then to overtake it. While traditional export sector could not yield expected results, the RMG sector gradually injected dynamism in the export as well as in the domestic economy though backward and forward linkage economic activities.

The export-oriented readymade garments (RMG) sector in Bangladesh started its journey in late 1970s as a small non-traditional sector of export.

Bangladesh is known in these countries as a small country with a strong presence. Everywhere, RMG serves as a flagship product of our country, inducing people’s interest in Bangladesh both as a tourist and investment destination. These are the impacts which are difficult to quantify, yet without which the country perhaps would not have been able to project itself to a trajectory of high growth and higher standards of living. Thus, RMG’s contribution to Bangladesh, both direct and indirect, needs to be recognized for what it is. In the following pages, an attempt is made to quantify the key role that RMG has come to play in the economy of Bangladesh. The RMG sector has also played a significant role in the social metamorphosis in a broader context. This paper attempts to qualify aspects such as women empowerment, population control, education, environmental awareness, elimination of child labour which contributed to overall improvement in the HDI (Human Development Index) Indicators.

The main objective of Trade Post Limited is to become the best supplier of quality products in RMG sectors and create value to the customers. It is expanding in the areas of knit composite and other backward linkage industries (Print, Embroidery, Washing and Composite etc). Its major buyers are Gap, Wal mart USA, Wal Mart Canada, Charming Shoppes, Nygard, Sears Canada, Target Australia, George, Primark, Li & Fung etc. Trade Post Limited management views each and every employee as valuable resource of the organization and believe in responsibilities, mutual trust and respect. People come to join PGI, feel much comport and pleasure because Trade Post Limited has created enabling environment that encourage employees creativity and achievements. Company aims to become a leader and pioneer in RMG sector ensuring quality products.

Objectives of the report:

To cover a wide ranging analysis of RMG sector.

To focus on the detailed structure of the relevant areas in which export-oriented RMG sector of Bangladesh was contributing.

To cover up in-depth study of the contribution of the RMG industry to the overall economy of the country and also to the various sub-sectors of the economy.

To cover a comprehensive analysis of Trade Post Limited and its export sector.

To study and understand any sort of activities regarding Trade Post Limited by which this organization contributed in the RMG sector.

To identify policy recommendation for further improvement.

Historical Background of Readymade Garments Sector:

At independence in 1971, most observers of the newly emerged country took a pessimistic view about the developmental prospect of Bangladesh. Many thought that the country would remain permanently locked in a ‘below poverty level equilibrium trap’. Although there is little room for complacency Bangladesh has come a long way from there. About two-fifths of the economy is now connected with the global economy through exports, imports, factor and commodity markets; the degree of openness of the economy currently stands at 40%. Bangladesh can now rightfully claim that she has graduated from a predominantly aid receiving nation to a trading nation.

The export-oriented RMG sector has made crucial contribution to this abovementioned transformation of the Bangladesh economy. The role of our RMG entrepreneurs, domestic fiscal and financial, institutional policy support and incentives put in place by successive governments, substantial RMG-supportive linkage activities within the domestic economy and global market opportunities combined to create a story which is, to be honest and true, unparallel in the developing world. When jute and jute goods were losing their traditional markets, with the prospect of drastic fall in foreign earnings it is the RMG sector which came in first to replace it, and then to overtake it. While traditional export sector could not yield expected results, the RMG sector gradually injected dynamism in the export as well as in the domestic economy though backward and forward linkage economic activities.

The export-oriented readymade garments (RMG) sector in Bangladesh started its journey in late 1970s as a small non-traditional sector of export. Bangladesh exported RMG worth only US$ 69 thousand when Reaz Garments exported its first consignment to USA in 1978. By FY2002, within a span of about two decades exports have gone up to US$4.5 billion. Over the past decade alone, the sector registered a phenomenal growth rate of 15 percent per annum, which is impressive by any standard. In fact, this was an exceptionally high growth rate for an emerging industry anywhere in the world. The industrial base which sustained such high growths also enjoyed a robust expansion, from less than 50 factories in 1983 to more than 3,400 in 2002, with the number of RMG workers reaching approximately 1.5 million.

Despite many difficulties faced by the sector over the past years, it continued to show robust performance, competitive strength and, of no less importance, social commitment. RMG’s contribution to Bangladesh economy is well-known, well-appreciated and well-respected. However, often times the magnitude of its multiplier impact and implications will justify the support that this sector has been given over the past years and also the support it is currently seeking from the government?

In FY2002 Bangladesh exported RMG products worth 4.5 billion US dollars. Her share in total US imports of apparels was 3.2%; in EU it was 3.3% and in Canada it was 3.0%. Bangladesh is known in these countries as a small country with a strong presence. Everywhere, RMG serves as a flagship product of our country, inducing people’s interest in Bangladesh both as a tourist and investment destination. These are the impacts which are difficult to quantify, yet without which

the country perhaps would not have been able to project itself to a trajectory of high growth and higher standards of living. Thus, RMG’s contribution to Bangladesh, both direct and indirect, needs to be recognized for what it is. In the following pages, an attempt is made to quantify the key role that RMG has come to play in the economy of Bangladesh. The RMG sector has also played a significant role in the social metamorphosis in a broader context. This paper attempts to qualify aspects such as women empowerment, population control, education, environmental awareness, elimination of child labour which contributed to overall improvement in the HDI (Human Development Index) Indicators.

A Success Story of RMG Sector:

The importance of RMG sector can hardly be over emphasized. There has been a steady growth in the field of RMG during last two decades. The RMG industry enjoyed a meteoric rise from 30 enterprises in 1980 increased to about 4995 in 2009-10 fiscal year. The growth of the industry in terms of number of units and employment generation is shown in following table:

Table : Growth of the industry and Employment

Out of 3.1 million manpower employed in BGMEA member factories, 2.38 million are women (85%), majorities of them are disadvantaged and economically poverty stricken women folk. The country's RMG sector, to a creditable level has relieved Bangladesh from over populous unemployment burden through providing the largest employment next to agriculture, transport and trade and industry sector.

The contemporary scenario of RMG sector of Bangladesh:

The readymade garments sector (RMG) is now-a-days been called the vital life line of Bangladesh economy. As in micro-finance, the RMG sector has also benefited immensely from the lost cost labor of poor women of Bangladesh. RMG sector now occupies a very significant position in the economy of Bangladesh The RMG products were quite unknown even before 1980s; the export of this sector became prominent within a short span of time. Currently around 3.1 million people -- 85 percent being women -- are engaged in this sector for their livelihoods. It has been said time and again that the worldwide recession that has affected so many countries so deeply will not affect the Bangladesh ready made garments (RMG) sector. The RMG sector recorded US$ 6.05 billion in export earnings during the first half of the current fiscal year (2009-10), registering a 24.18% growth. Even the chief of the Export Promotion Bureau (EPB) also ruled out any fallout from the global credit crunch on Bangladesh garments exports after its two main items, woven and knitwear, registered 44.66% growth in the first quarter of the current fiscal year.

Bangladesh’s export of textile and Ready Made Garments (RMG) make up 6% of the world’s total export. The graph below shows the RMG export growth over the year in our country

Contribution By The National Export:

RMG share widens in national exports

Readymade garments grab a larger share in national exports, as other products are suffering a steep fall in shipments amid global recession.

Riding on a steady growth, readymade garment (RMG) grabs a larger share in national export, and play a vital role to the nation of Bangladesh.

Bangladesh in immediate past 2009-10 fiscal year (July 2009-June 2010) fetched over 12 billion U.S. dollars from garment exports, showed the official data Tuesday.

According to Bangladesh's Export Promotion Bureau data, export earnings from garments, including knitwear and woven, in 2009-2010 fiscal year stood at 12.50 billion U.S. dollars, an about 77.1 percent of the total export income of Bangladesh during the same period of the year.In the last fiscal year, according to the EPB, knitwear garment export grew 0.84 percent to 6.48 billion U.S. dollars while woven garments increased 1.60 percent to 6.01 billion U.S. dollars, comparing with the same period of last fiscal.

Bangladesh set export target in 2009-10 fiscal at 17.60 billion U.S. dollars including 13.99 billion U.S. dollars from garment exports.The country's export earning, however, in last fiscal year grew 4.11 percent to over 16.20 billion U.S. dollars compared to the same period of last fiscal year.

Source: Xinhua

Bangladesh Garments Exports Data by Fiscal Year

YEARS MILLION US $ TOTAL GROWTH

WOVEN KNIT

2001-2002 3,125 1,459 4,584 -6%

2002-2003 3,258 1,654 4,912 7%

2003-2004 3,538 2,148 5,686 16%

2004-2005 3,598 2,820 6,418 13%

2005-2006 4,084 3,817 7,901 23%

2006-2007 4,658 4,554 9,212 17%

2007-2008 5,169 5,533 10,702 16%

2008-2009 5,919 6,429 12,384 15%

2009-2010 6,687 7595 14,282 16%

Source: Export Promotion Bureau (EPB), Government

COMPARATIVE STATEMENT ON EXPORT OF RMG AND TOTAL EXPORT OF BANGLADESH:

YEAR

EXPORT OF RMG(IN MILLION US$)

TOTAL EXPORT OF BANGLADESH (IN MILLION US$)

% OF RMG'S TO TOTAL EXPORT

1983-84 31.57 811.00 3.89

1984-85 116.2 934.43 12.44

1985-86 131.48 819.21 16.05

1986-87 298.67 1076.61 27.74

1987-88 433.92 1231.2 35.24

1988-89 471.09 1291.56 36.47

1989-90 624.16 1923.70 32.45

1990-91 866.82 1717.55 50.47

1991-92 1182.57 1993.90 59.31

1992-93 1445.02 2382.89 60.64

1993-94 1555.79 2533.90 61.40

1994-95 2228.35 3472.56 64.17

1995-96 2547.13 3882.42 65.61

1996-97 3001.25 4418.28 67.93

1997-98 3781.94 5161.20 73.28

1998-99  4019.98 5312.86 75.67

1999-00 4349.41 5752.20 75.61

2000-01 4859.83 6467.30 75.14

2001-02 4583.75 5986.09 76.57

2002-03  4912.09 6548.44 75.01

2003-04 5686.09 7602.99 74.79

2004-05  6417.67 8654.52 74.15

2005-06 7900.80 10526.16 75.06

2006-07 9211.23 12177.86 75.64

2007-08 10699.80 14110.80 75.83

2008-09 12347.77 15565.19 79.33

2009-10 13412.56 15245.65 81.14

 

Emergence of knit – RMG:

The growth dynamics of the sector over the last decade evince two clearly discernible phases: during the initial period it was the woven-RMG which dominated the structure of apparel exports, whilst in recent years which could be termed as a second phase, it is the knit-RMG which emerged as no less of an important segment in the RMG sector with its share growing up steadily and local value retention fast approaching the level of woven-RMG.

Diversification:

Within the apparels sector, Bangladesh has been able to accomplish product diversification. RMG sector has been able to extend its product line from T-shirts, pajamas, ordinary shirts, shorts, caps, women’s and children's wear to shirts of complicated designs and jackets; and some brand items have also emerged where the value was added to both the export earnings and the local value retention .

MAIN APPAREL ITEMS EXPORTED FROM BANGLADESH

(VALUE IN MN. US$)

YEAR SHIRTS TROUSERS JACKETS T-SHIRT SWEATER

1995-96 807.66 112.02 171.73 366.36 70.41

1996-97 759.57 230.98 309.21 391.21 196.60

1997-98 961.13 333.28 467.19 388.50 296.29

1998-99 1043.11 394.85 393.44 471.88 271.70

1999-2000  1021.17 484.06 439.77 563.58 325.07

2000-2001 1073.59 656.33 573.74 597.42 476.87

2001-2002 871.21 636.61 412.34 546.28 517.83

2002-2003 1019.87 643.66 464.51 642.62 578.37

2003-2004 1116.57 1334.85 364.77 1062.10 616.31

2004-2005 1053.34 1667.72 430.28 1349.71 893.12

2005-2006  1056.69 2165.25 389.52 1781.51 1044.01

2006-2007 943.44 2201.32 1005.06 2208.9 1248.09

2007-2008 915.6 2512.74 1181.52 2765.56 1474.09

2008-2009 1000.16 3007.29 1299.74 3065.86 1858.62

2009-2010 1149.69 3302.57 1389.06 3581.51 2317.12

Incremental contribution:

The increasing importance of the apparel sector in the Bangladesh economy is best brought out by its share in the country's incremental export growth. The growth of the sector was enough to push up the aggregate export growth rate and also compensate for the shortfalls in the export earnings in other sectors

Employment Creation and Wage Bill:

RMG sector is one of the major employers in the economy. Total employment at present stands at about 14 lakh about 70 per cent of which are women. As a matter of fact in the 1990s a large part of the incremental labour force in the manufacturing sector was absorbed by the RMG sector. The RMG workers received USD 315.25 million as their wage in FY 2002. This purchasing power contributed significantly to the growth of the economy through its multiplier impact in terms of consumption expenditure and savings.

Important changes, with substantial movements in terms of enhanced value addition. Direct value addition by the RMG was estimated to be about 25%.

Though the country had some base in cotton textile industry even before the emergence of export-oriented RMG sector, its linkage with global market was insignificant. Realizing the importance of the backward linkage industry in terms of supplying export quality yarn and fabric

to satisfy the need of the growing RMG sector, the Bangladesh government took an early initiative to declare the textile sector as a thrust sector. Since the textile policy was put in place in 1995, the sector registered remarkable growth. In response to the incentive provided by the government and a ready market provided by the RMG industry, private sector came forward to invest in backward linkage industries. Backward linkages and other related activities marked remarkable progress in the last decade, particularly since mid-1990s.

Sectoral Contribution

Backward and Forward linkage

Growth of RMG sector has spawned a whole new set of linkage industries and facilitated expansion of many service sector activities. The RMG industry not only propelled the growth of spinning, weaving, dyeing and finishing industries, production of accessories and spare parts, but also rendered large externalities by contributing to other economic activities in such areas as banking, insurance, real estate, packaging, hotels and tourism, recycling, consumer goods utility services and transportation.

As shown in following table the RMG sector has overwhelmingly high backward linkage with textile sector providing fabrics, yarn and other ancillaries. It has important backward linkage with utilities such as electricity, gas, and machinery and spare parts supplying Sectors.

TABLE: INPUT-OUTPUT RATIO WITH DIFFERENT SECTORS

Inputs supplying Sectoral Input-output Ratio

Yarn 0.59

RMG 0.004

Other Textiles 0.01

Food and Entertainment 0.10

Paper and Board 0.001

Printing and Publishing 0.002

Chemicals 0.0004

Petroleum and its Products 0.002

Fabricated Metals 0.14

Machinery 0.0046

Transport Equipment 0.0006

Miscellaneous Industries 0.005

Urban Building 0.009

Rural Building 0.00005

Construction: Electricity and Gas 0.0000002

Electricity 0.0044

Gas 0.000173

Trade Service 0.029

Transport Service 0.016

Health Service 0.000029

Public Administration 0.00081

Banking and Insurance 0.00164

Professional Service 0.00115

Communications 0.002

Total Intermediate Input 0.81

Total Output 1.00

Value Added to Output 0.19

Source Nath 2001

It has forward linkage with transport, communication, banking and insurance and trade services. Besides, there is a considerable subcontracting linkage within the sector. The buying house also plays important role towards bringing the manufacturers and buyers of the finished goods closer. As the input-output table shows, the RMG value-added ratio to output stood at 19%. Since then the RMG sector has undergone important changes, with substantial movements in terms of enhanced value addition. Direct value addition by the RMG was estimated to be about 25%.

Though the country had some base in cotton textile industry even before the emergence of export-oriented RMG sector, its linkage with global market was insignificant. Realizing the

importance of the backward linkage industry in terms of supplying export quality yarn and fabric to satisfy the need of the growing RMG sector, the Bangladesh government took an early initiative to declare the textile sector as a thrust sector. Since the textile policy was put in place in 1995, the sector registered remarkable growth. In response to the incentive provided by the government and a ready market provided by the RMG industry, private sector came forward to invest in backward linkage industries. Backward linkages and other related activities marked remarkable progress in the last decade, particularly since mid-1990s.

Banking and Insurance:

Growth of the RMG sector and the related activities have contributed a lot to the robust growth of the financial sector in Bangladesh. Banking sector earned huge dollars from business with the RMG sector in the form of interest and charges and L/C charges. More than one-tenth of the commercial banks’ asset portfolio belongs to the RMG and textile sector in the country. The export financing business of the commercial banks is largely dependent on the textile and RMG sectors. The RMG sector received Taka 2175 crore as export-finance in FY 2001 which was 46.14% of the total export financing portfolio of the banks. A World Bank survey revealed that almost all firms (98%) are the clients of the commercial banks for working capital and procurement of machines and equipment (57%).

The RMG sector has also contributed to the growth of the country’s insurance sector. On average, every year the premium paid by the RMG sector to the insurance companies was about 6 million dollars. All firms have their machines and plants insured and, additionally, 87% of importers of input and 15% of the RMG exporters get their imports/exports insured.

Shipping and Logistics:

The RMG sector has contributed to the shipping business in Bangladesh and stimulated setting up of several container yards, expansion of port facilities to handle large container carrying trains, increase of cargo handling and storage facilities. RMG manufacturers also extensively use services of Clearing & Forwarding Agents for the purpose of customs clearance of inputs and finished goods. It is estimated that port usage fees earned from the RMG sector account for more than 40% of the income of the port authority.

Transport Communication:

The growth and development of inland transport services to a considerable extent owe to the growth of the RMG industry. Both wheel transport service and railway service are widely used by RMG sector for activities related to manufacturing and cargo movement. The concept of covered van emerged in Bangladesh for safe transportation of the RMG products in particular. Inland transport industry received about 28- 30 million dollars per year as revenue from the RMG sector.

Contribution to Government Exchequer:

The RMG sector contributes to the government exchequer both directly and indirectly. Every this sector paid 6.3 or above million dollars per year as stamp and postage, license renewal fee etc.

Payments made for visa form, license form, GSP form and others .The sector also paid huge USD dollar to the government as direct taxes

Professional Services:

The RMG sector extensively uses professional services from CA firms, legal agencies, and business consultants. In FY 2002 total payment for professional services is estimated at 3.61 million dollars.

Engineering Sector :

The RMG industry paid 14.2 million dollars to the engineering sector which included payments to repairing and maintenance service industry (USD 4.29 million), electrical engineering (USD 4.38 million), transport vehicle maintenance service ( USD 2.87 Million), and machine tools service (USD 2.63 Million).

Utility Services:

Payment of Electricity bill by the RMG industry is estimated to be 14.74 million dollars in FY2002. Utility payments for gas, WASA etc. amounted to an additional 3.75 million dollars

Information and Communication Technology :

The RMG sector also plays a catalytic role in the growth of the country’s ICT sector. The services consumed by the RMG industry generated revenue for the ICT sector. Payments for ICT services which include communication, hardware and software services.

Real Estate:

Demand for real estate development by the garment industry to accommodate offices and factories of over 3400 garment units has generated a lot of activities in the Construction Industry. The RMG industries paid per year approximately 26-28 million dollars as factory, office and garage rent.

Hotel and Tourism:

About 1000-1500 overseas apparel buyers and their representatives visit Bangladesh every year for business purpose. RMG industry created a business of approximately 5 million dollars for the country’s tourism industry.

Waste Recycling Industry:

Approximately 0.2 million people are engaged in waste (mainly, the waste out prices of fabrics) recycling industry of the country which get their materials from the RMG industries. With these waste materials, they are making stuff toys, patterns, quilts, cushions etc.

Emerging Consumer Market:

The 1.6 million workers in the industry have created a large demand for consumer goods. A regular source of earning increases the basic consumption needs such as improved diet, better healthcare, improvements in family utensils and housing conditions etc. The sector has created an increasing demand for consumption of low cost commodities, cosmetics items, dresses, footwear, fast food and other products.

SOCIAL IMPACTS OF THE RMG SECTOR:

The empowerment of women through The Readymade Garments(RMG) Sector of Bangladesh.

Women Empowerment

Introduction:

It is well recognized that women’s participation in income generation activities lends them a better status within the family and provides them with considerable freedom. A job ensures equitable access to household resources (nutrition) and larger investment on female human capital (health and education). Employment opportunities draw attention to women’s needs for public facilities such as transportation, communication, safety etc. and creates a demand for policy response in these areas. It also has created a demand for education and health. As the income by the female member reduces dependency on male income it reduces their vulnerability. It also reduces the possibility of domestic violence against women. Expansion of women’s employment has contributed positively to the improvement of the savings behavior of the poor people since women tend to be better savers.

Employment in the RMG industry has provided direct access to cash income for the first time to many poor women. A survey, conducted by the BIDS in 1997 showed that for 96 percent of the female workers in the non-EPZ areas, work in the garment industry was the maiden wage employment8. The survey also showed that women were taking up such roles paying for house rents and schooling expenses for their children or brothers and sisters. Despite the fact that they have lower incomes, the female garment workers were spending the same amount as the male workers on the studies of their family members. The same survey further showed that female workers were spending their earnings on their marriage, thus taking a big burden off their families. The independent earnings also allow these women to have a greater share in household decision making.

Some introductory notes focusing on conceptualizing the empowerment of women:

We all know that the empowerment of women is one of the central issues in the process of development of countries all over the world. And traditionally we define it as

“Empowerment is a multi faceted, multi-dimensional and multi-layered concept. Women empowerment is a process in which women gain greater share of control over resources-material, human and intellectual like knowledge, information, ideas and financial resources like money- and access to money and control over decision-making in the home, community, society and nation, and to gain ‘power’.

Again we can say Empowerment refers to increasing the spiritual, political, social or economic strength of individuals and communities. It often involves the empowered developing confidence in their own capacities.

The factors of empowering the women

There are both the economic and non economic factors of empowering the women. If we know the ways in which women face gender disparity, we can then find out how to solve them and empower the in those ways.

In Wikipedia we find some facts about empowering a certain person:

Empowerment is probably the totality of the following or similar capabilities:-

Having decision-making power of one's own

Having access to information and resources for taking proper decision

Having a range of options from which you can make choices (not just yes/no, either/or.)

Ability to exercise assertiveness in collective decision making

Having positive thinking on the ability to make change

Ability to learn skills for improving one's personal or group power.

Ability to change others’ perceptions by democratic means.

Involving in the growth process and changes that is never ending and self-initiated

Increasing one's positive self-image and overcoming stigma

Increasing one's ability in discreet thinking to sort out right and wrong

In short, empowerment is the process that allows one to gain the knowledge, skill-sets and attitude needed to cope with the changing world and the circumstances in which one lives.

How financial solvency and empowerment are related:

The intervention of garment industry in Bangladesh gave unskilled, illiterate or less educated women in urban areas a great opportunity to have certain incomes. Girls and women who previously didn’t have any income or were working as domestics in households only for survival could escape from their poor dependent life cycle by virtue of wage employment in garment industries. From all over Bangladesh girls and women migrated to different cities hoping to get some opportunities of earning money and reducing their dependency on others. Women’s presence in the garment industry is a huge achievement in a country where women’s visibility is extremely low. The graph below shows the Employed Female Labor Force (in millions)

0.90 1.402.60

7.90

11.30

0.00

2.00

4.00

6.00

8.00

10.00

12.00

1974 1981 1983-84 1999-2000

2005-10

In Bangladesh poor, unskilled, girls and women who did not have any other choice rather than to domestic workers for their livelihood were attracted by the opportunity of getting jobs and earn money. Thus they have got a chance to come out of the circle of poverty and oppression. Women from the poorest backgrounds both in rural and urban areas, found a new dimension of life, which lead them towards economic freedom.

How empowerment of women can reduce the gender disparity:

Women who work in Garment industries experience a very significant impact on their social and family life. Through this labor force participation, women have access to resources that is they earn money and on one hand and on the other hand they have more mobility in the socio-economic sphere, which increases their awareness and knowledge in various ways on many socio-political aspects. Women’s earning capacity and their contribution to the family increases their economic value in the family. Once totally dependent on others for her survival a women becomes capable to earn money and able to live her own life with her income. She is perceived as an earning member of the family and her fallback position is improved. Since her income means a lot for a poor family, she has more decision making power. This process of economic empowerment reduces women’s vulnerability in the family and hence men’s attitudes toward her also changes.

Furthermore, a sense of solidarity has been developed among women as a result of group work. They help each other during a crisis either financial or other family related. This solidarity of women becomes a threat to men as they realize that women are not alone now. If one women is

in problem other members will try to protect her, moreover self awareness of women through self dependence means they no longer accepts all types of behaviour of men.

CHILD LABOUR:

In recent years, international debate on child labour has intensified. The elimination of child labour is also among the core labor standards in the ILO Convention. The Harkin Bill placed at the US Senate entitled “The Child Labour Deterrence Act of 1993” which called for the elimination of child labour in the export oriented manufacturing and mining industries. As a consequence many garment industries had to retrench child workers from their factories. In many countries these retrenched children ended up in more strenuous and less-remunerative jobs, or worst, turned to begging in the street. The Bangladesh RMG sector set a unique example through collective efforts which eventually led to the development of a safety-net program for the child labours. The BGMEA/ILO/ UNICEF Child Labor Project in the garment industry of Bangladesh, funded by the US Development of Labour was the first of a series of child labors program executed by the International Program on the Elimination of Child Labor of the ILO. This project, initiated in 1995, is based on a Memorandum of Understanding (MOU) signed by the BGMEA and two international organizations, the ILO and UNICEF, with the aim of progressively phasing out child labour from more than 2,500 factories that are members of the association.10

The key elements of the MOU were:

(a) A fact-finding survey to determine the extent of child labour in the garment industry;

(b) The establishment of an education program in which identified child workers should be enrolled;

(c) The establishment of a monitoring and verification system;

(d) The provision of income compensation in the farm of a monthly stipend of Tk. 300, the equivalent of (at that time) US$ 7. The costs are to be shared by on fifty-fifty basis by BGMEA, the ILO and other donors.

Many of the retrenched child workers have been placed in schools and are receiving a monthly stipend. Football manufacturing industry of Pakistan has been following the globally acclaimed BGMEA Model of Child Labour Elimination. BGMEA has so far spent over 600,000 US dollars for the project.

Successfully addressing of this issue has created a very favorable image about Bangladesh abroad and has promised continued market access for the sector.

Population Control:

Employment opportunities especially for women created positive impact on family planning and population control in the country. Independent working-women are getting more conscious about the advantage of a small family, and are exposed to modern family planning methods. Working adolescent girls tend to avoid early marriage as they have their own source of income and are self-dependent. The mean age at marriage for girls working in RMG factories tend to be higher than the national average

Social Compliance forum for RMG: Labour and welfare:

BGMEA has compiled the existing relevant laws for RMG on labour and provided the same to the task force on Labour welfare in RMG.

The task force is reviewing the compilation made by BGMEA and shall provide to Ministry of Law for approval.

If accepted it shall be published as a compilation of the existing labour laws for RMG of the country.

The compilation does not address the inadequacies of the law.

BGMEA has provided their comments and suggestions on the proposed labour code to the tripartite review committee on labour law to consider incorporating in the proposed code.

The committee is yet to review the proposals sent by BGMEA.

A work plan has been finalized for short term, medium term and long term activities.

The work plan has been submitted to the forum for discussion.

BGMEA have started addressing some of the short term activities such as child labour on a priority basis.

Social Compliance forum for RMG: Occupational Health and Safety:

A task force has been set up to collect and compile the relevant rules and regulations on occupational safety in RMG related to building safety, fire prevention, environment, security matters etc for preparation of the work plan.

A work plan has been finalized for short term, medium term and long term activities.

The work plan has been submitted to the forum for discussion.

A meeting by the taskforce was held on 30.4.2006 for implementation on the basis of the work plan and prepare a check list in this regard. A subcommittee has been formed and an awareness program is expected to be initiated after discussion.

BGMEA have already started initiating some of the short term activities to ensure fire safety on a priority basis after the incident at KTS Industries Ltd. Activities undertaken by BGMEA after the incident at KTS textile Ltd.

BGMEA Board of Directors meeting held on 27.2.2006 where the following decisions were made:

Ensure all RMG units have two stairs and ensure that gates of each stairway are kept open during working hours;

BGMEA inspection team to monitor the above on a regular basis

If any gate/door entering the stairway is found closed during inspection factory would be penalized Tk.10,000 for first time default, Tk.50,000 for second time default and if the same factory continues to default for a third time membership would be cancelled.

Following the decision of the Board on 27.2.2006 a meeting of the general members of BGMEA was called on 8.3.2006 to discuss on these issues.

Following the decision of the Board on 16.3.2006 an advertisement was published in the papers to recruit more people to look into the fire safety issues of RMG units through the BGMEA crash program.

BGMEA launched its crash program on 1.4.2006 to do the following:

conduct drills in all the RMG units;

check on gates whether open or locked during working hours;

check whether exits are clear or not;

whether adequate fire equipments are in place in the RMG units;

whether fire safety teams BGMEA expects to cover all the factories for drills within the next 6 months;

BGMEA has sought manpower through the Social Compliance forum to assist the team members of the crash program in particular manpower has been sought from RAJUK, EPB, Chief Inspectorate of Factories, Fire Service and Civil Defense.

Accordingly manpower has been given from the Government to assist the team and the Government is also working independently on these issues are in place in the RMG units.

From 1st April till 27.4.2009 the status report for Dhaka through the Crash program are as follows:

Total factories visited------1042

Fire drills conducted--------63

Exits under lock--------------15

Exits blocked with goods----3

From 1st April till 25.4.2009 the status report for Chittagong through the Crash program are as follows:

Total factories visited-------253

Fire drills conducted---------229

Exits under lock---------------4

The building safety issue has also been discussed under the chairmanship of the member secretary for the social compliance forum and in the last forum meeting.

BGMEA were informed that the Building Code would be passed through Parliament within a month. However BGMEA cannot comment unless they see the law.

BGMEA made some observations in the forum with respect to existing factories and obtaining clearance from EPB which was becoming a big problem.

On the building safety issue after the Spectrum incident BGMEA has made the following a pre-requisite to obtaining membership:

Approval of the Building plan by RAJUK/CDA is needed when it is within the jurisdiction of RAJUK/CDA

Approval from the concerned authorities when it is beyond RAJUK/CDA’s jurisdiction.

A certificate from a Structural Engineer having IEB (Institute of Engineers, Bangladesh) professional membership to the effect that the building has been constructed as per design and specifications along with full structural design and drawing.

Concerns:

Bureaucracy still remains an issue

Little has been done for infrastructure development

the Social Compliance Forum is yet to receive assistance from UNDP in addressing the overall compliance issues.

Buyers are yet to discuss on ethical buying initiatives or contribute towards the cost of compliance.

BGME and development partners

BGMEA is trying to address the child labour, fire safety and mid level management training and awareness on the laws on a priority basis.

BGMEA is speaking with a number of development partners particularly ILO to assist in addressing these issues on a priority basis.

BGMEA is expecting to receive some feed back in May from ILO in this regard.

Profile of the Trade Post Limited

History:

Trade Post Limited is an export oriented high-tech buying house Garments manufacturer and exporters in Bangladesh. It was established in 2002.This industry is one of the leading garment buying house in Bangladesh.

The company is not use to promote any product in domestic market. The object of the company is to produce various types of readymade Garments like men’s shirts, jeans, pants, jacket etc.

The factory has been running by highly trained and skilled manpower, which have been in this sector for quite a long time, and are able to keep continuing the production process with utmost accuracy and flawless finishing. The company has guaranteed uninterrupted production and timely supply of sweaters as per the schedule and time frame of buyers. The production unit has its own high powered generator that is being used as back-up sources of electricity, which gives the manufacturing chain a lot more dynamism and continuity. Wide array of indoor and outdoor facilities along with safety measures is one of the prominent features.

Trade Post Limited is one of the buying houses in Bangladesh. It is 100% export oriented buying house. It is determined to build long term customer relationship with its foreign clients. It tries to maintain better qualify. Trade Post Limited is one of the buying houses in Bangladesh. It is determined to build long term customer relationship with its foreign clients. It tries to maintain better qualify.

Vision:

To obtain a leading position in the Buying House sectors of Bangladesh as well as international through maintaining standard quality.

1. in time action

2. Clear understanding of customer’s instructions.

3. Clear communication with vendors

4. Clear instructions for production

5. Strict compliance with quality control system.

6. Total devotion maintains first class quality standard.

7. Absolute efforts for in time shipments

Mission:

Trade Post’s mission is to be the market leader, in providing clothing from Bangladesh to its customers around the globe. To be a market leader it is committed to develop high quality, sophisticated and deviation-free products in its capacity and make on time delivery to its customers.

Objectives of the Organization:

The main objective of the company is to become the the best supplier of quality products in RMG sectors and create value to the customers. Besides the above mentioned main objectives, the other following objectives are given below:

1. To increase the economic development of the country.

2. To create employment opportunity.

3. To play positive in the process of industrial development of Bangladesh

4. Trade Post Assures quality and customer services.

Commitment:

Regular production updates to the Importer.

Facilitate & Co-ordinate the Buyer’s visits to Bangladesh

Acting ethically, building trust

Protecting people, assets, and information

Generating value for customers

Prospering with the community

Preserving the natural environment

Corporate Values

Ø Team work

Ø Integrity

Ø Excellence

Ø Commitment to buyer.

Ø Maintenance of consistent standard

Corporate Profile

Industrial status : Trade Post Limited is a 100% export oriented buying house Industry.

Products : We Endeavour to specialize in shirts, pants, jacket, shorts.

Year Established : 2002

Working Address :

House # 02, Road # 1/B, Nikunjo-2, Dhaka-1 . Bangladesh.

Tel /Fax :880-2-8916792

E-mail : Rashid@tradepostltd.com

Web site : www.tradepostltd,com

Registered office : :

135/1, West shewrapara,Mirpur,Dhaka-1216

BANK DETAILS:

ACCOUNT NAME: TRADE POST LTD

CD ACCOUNT NUMBER:010611100011737

MERCANTILE BANK LIMITED

AWAL CENTER (2ND FLOOR)

34, KEMAL ATATURK AVENUE 

BANANI, DHAKA-1213

BANGLADESH 

PHONE: 0088-02-8816473-74

FAX: 0088-02-8827807

SWIFT: MBLBBDDHA007

WEB: www.mblbd.com

MANAGEMENT TEAM

Md.Harun Or Rashid

Managing Director

Email: rashid@tradepostltd.com

Md.Shahbaz Khan

Director (Account & finance)

Email: shabaz@tradepostltd.com

Md.Rashedur Rahman

Director (Merchandising)

Email: rahman@tradepostltd.com

Md.Ziaur Rahman Tarafder

Director ( admin & commercial)

Email: zrahman@tradepostltd.com

Present Business Activities:

The company primarily engaged in manufacturing and export of Varity of readymade garments. The company procures its raw materials i.e. fabrics and other garments related accessories from the garments centers of Bangladesh, India, China, Hong Kong, Taiwan and from the far east to U.S.A, EEC, and Indian sub-continent markets.

Principal Products:

The company products/ manufactures a wide range of fashionable Knit & Woven garments carefully to suit the discriminating choice of various users. Foremost of these products are pants, shirts, skirts, blouses, dresses, jackets, vests, rompers, jumpers, Knitted tops, tracksuit,

swimming shorts, jogging suits, cardigans, pullover, nightwear, short all, overalls, tank tops T-shirts, polo shirt, shorts using various high standard fabric materials ranging from stretch fabrics in cotton, nylon, nylon poly, poplins, sateen and all other kind of fabrics according to the preference and specific needs of the buyers or customers.

The Men Behind The Company:

The company is managed by a group of expertise whose rich experience in management, marketing, production management and their full commitment, vision and dedication to the company has brought the company to its present status. Its highly trained manpower speaks of the company’s adherence to efficient and quality products & services.

Md.Harun Or Rashid Chairman & Managing Director

Md.shahbaz khan Director

Md.ziaur Rahman Trafder Director

Md.Rashedur Rahman Director

Corporate Management:

Md.Harun Or Rashid Managing Director

Control of all sectors

Overall supervision of Marketing Production planning.

Md. shahbaz khan Director

Mr. Amzad Hossain Chief Adviser to MD

Mr. Aseem Sood Vice President (Marketing)

Mr. Shakil Rahman Marketing Director

Md.Ziaur Rahman TaraFder Director, Administration & commercial)

Mr. A.M. Munir Director, Production Planning & QA

Number of Employee:

Over 1200 employees are engaged with trade post ltd.and they are Producing a large quantity of Garments, Sweaters, Knit Fabrics, with quality to the satisfaction of our valued customers.

Trade Post’s Services

Vendor Evaluation: select right factories having vertical setup for particular products, as well as fabric sources to match your requirements of quality and price levels, in Bangladesh.

Product and fabric development: Trade Post will handle all fabric as well product sampling needs as quickly and efficiently as possible

Price: Right costing of product and negotiate mutually acceptable prices.

Merchandising and Order follow up: Trade post experienced teams of merchandisers follow up on order by regularly checking with factories and offices.

Quality Assurance :Trade Post quality assurance personnel regularly visit the factories during the various stages of production cycle, to ensure that factories strictly adhere to quality requirements.

Pre-Shipment Inspection:  inspection will be done according to buyers acceptable quality level (AQL).Customer designates some specific value of AQL for a certain defect or group of defects, Trade Post will inspect according to that instruction.

Documentation and other local task: Export documentation procedures, Negotiation of freight rates with shipping lines/airlines, Vessel arrangement road transportation with container and consolidation of shipments

Stock Lot Support: Trade Post Ltd also provide stock lot information to the valued buyer. Generally we do regular fresh orders. Some times deal with stock lot, on request from our regular buyers. One of primary responsibilities as a buying house is to assure that the products purchased and released for shipment conforms with buyer/importer’s requirement as per their instruction and do that in a genuine manner. Shipping documents are checked to verify this conformity & sent well advance to the buyers/importers along with inspection certificate

Inspection Agency: Trade Post Ltd will also act as third party inspection agency to take care of all quality control procedures for merchandise, both fabrics and garments, for all the orders you place directly to the manufacturers or directly by Name. All the process will be documented and we make sure get the best quality goods from the manufacturers that will be selected by trade post

Labor practice and safety Law: Trade Post Ltd ensure that all production units follow healthy and safe labor practices eliminating any use of child labor/prison labor/forced labor and providing required living and sanitation facilities and justified wage structures as per relevant countries norms. & also make sure they maintain the international compliance standards.

Test standard: Based on your requirement fabrics are tested for Color fastness, Shrinkage, Fabric strength, flammability or any other parameters set by buyers to ensure product satisfaction

Trade Post provide services to:

IMPORTERS / BUYERS

As an exporter

As a buying agent

As a sourcing company

To set-up QA systems

FACTORIES / VENDORS in Bangladesh.

As an order supplier

As a liaison agent between factory and buyer

For Technical assistance

Trade Post Ltd. has factories with the best machinery, manpower with commitment towards delivery & quality standards. These factories can produce any quantities under our guidance and control. Some factories are approved for quality from buyers like GAP, WAL-MART, TARGET, PVH and JC PENNEY etc.

Production Capacity (Monthly):

Knit Garments 1,10,000 Dozen

Woven Garments 800000 Dozen

Sweaters 12,000 Dozen

Knit Fabrics 450 MT

Fabrics dyeing & Finishing 600 MT

Item of Products:

Trade Post Limited produce various kinds of Knit and Woven Garments. The main items are Shirts, Knit Tops, Blouse, Ladies Dresses, Polo Shirt, Pants, Trousers, Sportswear, Tracksuit, Swimming Shorts, Jogging Suits, Jackets, Shorts, Cardigans, Pullover, Nightwear, Overalls, Tank Tops T-shirts, Shirts, Romper, Etc.

Knit : T-shirt, Polo-Shirt , Pique Polo, jacquard polo, sweat shirt, sweat hood, Tank Top, Sports Vest, underwear, panty, Pajama Polar & Micro Fleece jacket and vest nightwear, night gown etc. with different gsm, print & embroidery according to buyer choice. 

Fashion Knitwear/Sweater : pull-over, cardigan, jumper, ladies vest tops, scarf, etc with various types of yarn as per buyers requirement (provided those yarns are available from our connecting yarn sources) and in different gauges (2gg, 3gg, 5gg, 7gg, 10gg & 12gg) with different print & embroidery according to buyer choice.

Woven: Pant, shirt, Shorts, pajama jackets, skirt, tops with different oz. & different sorts of fabric like denim, twill, canvas, poplin etc with different kind of wash & shade with print and embroidery according to buyer choice.

Fabrics Knitting Division:

All Kinds of knit Fabrics.

Garments Dyeing & Finishing Division:

Garments Wash, Chemical Wash, Pigment Wash, Stone Wash,

etc and all Kinds of Fabrics dyeing and Finishing.

Embroidery Division : All Kinds of knit Fabrics.

Machinery List Garments Division:

Name of Machinery Brand Quantity

Plain Machine (Computer) BROTHER , JUKI, SUNSTAR 212 Sets

Plain Machine (Normal) BROTHER , JUKI, SUNSTAR 800 Sets

Vertical Edge Trimmer BROTHER , JUKI, SUNSTAR 10 Sets

Needle Chain Stitch CONSEW, BROTHER, JUKI 30 Sets

Needle Machine JUKI, MITSUBISHI, SIRUBA, SUNSTAR 91 Sets

3 Thread Overlock JUKI, PEGASUS 12 Sets

4 Thread Overlock JUKI, PEGASUS, SIRUBA, SUNSTAR 112 Sets

4 Thread Overlock (Computer) YAMATO 20 Sets

5 Thread Overlock YAMATO, SUNSTAR, 36 Sets

6 Thread Overlock JUKI, PEGASUS, SIRUBA 60 Sets

4 Needle Flat Lock PEGASUS 2 Sets

Flat Lock Cylinder Bed JUKI, PEGASUS, SIRUBA, SUNSTAR 42 Sets

Flat Lock Cylinder Bed (RC) JUKI, SIRUBA 36 Sets

Flat Lock Cylinder Bed (VG) YAMATO 10 Sets

Machinery List – Garments Division

Name of Machinery Brand Quantity

Flat Lock Cylinder Bed (Com) YAMATO 10 Sets

Flat Lock Flat Bed JUKI, PEGASUS, SIRUBA, SUNSTAR 80Sets

Button Stitch (Com) BROTHER , JUKI, SUNSTAR 32 Sets

Button Stitch (Manual) BROTHER , JUKI 16 Sets

Button Hole (Com) BROTHER , JUKI, SUNSTAR 30 Sets

Bartack M/C (Manual) BROTHER, JUKI, PFAFF 22 Sets

Shape Tack (Val co Attach) JUKI 5 Sets

Eyelet Hole (Com) BROTHER , SUNSTAR 3 Sets

Eyelet Hole (Manual) AMF REECE 3 Sets

Feed off the Arm BROTHER , JUKI, MITSUBISHI 63 Sets

Kansai P.M.D Kansai Special 16 Sets

Kansai (DLR) Kansai Special 1 Sets

Kansai Loop Kansai Special 4 Sets

Kansai Back Tape Kansai Special 1 Sets

SCLOPING M/C Kansai Special 3Sets

PICOTTING M/C Kansai Special 17 Sets

Zig-Zag M/C BROTHER , JUKI, SUNSTAR, SINGER

13 Sets

Blanket Stitch Champion 6 Sets

Shell Stitch M/C Champion, Elize 9 Sets

Blind Stitch BROTHER 4 Sets

Pocket Welting M/C JUKI 2 Sets

Needle Detector M/C Besta, Hasima, OSHIMA 7 Sets

Fusing M/C Hasima, OSHIMA 13 Sets

Heat Transfer Press (Auto) Hasima, Prodigy, Sheth, SS POWER 16 Sets

Heat Transfer Press (Normal) DG.ENGI, Hashima, Prodigy, SS POWER

12 Sets

SNAP BUTTON (Auto) NGAI SHING, PMM, Pridigy, S.S POWER

18 Sets

Name of Machinery Brand Quantity

SNAP BUTTON (Normal) TAKING 13 Sets

Snap Testing M/C SafQ 5Sets

Cutting M/C Eastman, Hitaka, K.M 13 Sets

Rip Cutter M/C Hoseki, IDEA, Nyto 23 Sets

BAND KNIFE CUTTING M/C Eastman 3 Sets

End Cutter Eastman 15 Sets

Re-Coning M/C Kingled, Nyto, TAKING 21 Sets

Plastic Attacher with Staple Dennison, Universal 3 Sets

Vacuum Iron Table Coolset, Fulton, Naomoto, NGISING 169 Sets

String M/C Uzu 2 Sets

Hot air seam sealing M/C Cheng-Kun, Golden Master, Kouuci 16 Sets

Hot air seam sealing Repearing M/C

Golden Master 2 Sets

HOSIERY DIVISION

Name of Machinery Gauge Quantity

Circular Knitting Machine 24 38 sets

Circular Knitting Machine 20 1 sets

Circular Knitting Machine 16 1 sets

Fabric Inspection Machine Uza 1 sets

Machinery List – Dyeing Division

MACHINE TYPE BRAND & MODEL QTY

Dyeing Machine ATTA & FONGS 19 Sets

Sample Dyeing ATTA & FONGS 09 Sets

Slitting Machine -6000kg IK & Bianco 2 Sets

Stenter Machine – 10000kg + 12,000kg LK&LH, EWHA 2 Sets

Dryer Machine - 2500Kg TAIDA 1 Sets

Squeezer Machine 3000 kg Local 1Set

Rolling Machine -2000 1 Set

Roll Former -15000 Korea 1 Sets

Calendar Machine 2000kg 1 Sets

Compacting Machine -8000 & 12000 LAFER, Ferraro 2 Sets

Air Turner Machine - Air Stream 1 Sets

Sueding M/C 10000& 10000 Kg Mario crosta 2 Sets

Printing Division

SL # MACHINE TYPE BRAND & MODEL QTY

1

Automatic Flat Bed Screen Printing Machine With cloth Feeding Entrance Device, Printing Device, Rubber, Conveyor Blanket Washing Device, Hot air dryer (Working Temperature :100-150C)AC Servo Lifting System, Control Panel with Twin ac servo control system Electric motors (3 Phase-380V 50HZ BASIS) Along with Full Standard Accessories

Model GP 8800,110,12C01 Set

(3 Tons)

List of Major Buyers:

Wal*Mart Stores Inc.

The GAP Inc. Stores

Li & Fung

Charming Shoppes Inc.

AMC/Target

Tesco

K-Mart / Sears

Carrefore

New Wave

Euro Centra

Primark

Abercrombie & Fitch (A&F)

Inditex (Zara)

Connor

Mills Fashion

Blair Corporation

Jymboree Corp.

HBC

Fabrics and Accessories Suppliers:

Name of Company Country

Textrims International Co. Ltd Taiwan

Bidu Industry Co. Ltd. Taiwan

Wesin Trading Co. Pte. Ltd. Singapore

Leader Day Ltd. Hong Kong

Hsing Dou Ind. Co. Ltd. Taiwan

Patodia Syntex Ltd. India

Organization Structure

Organization Structure Of Q.A Management System & Responsibilities

Topics of training program for quality inspection:

FABRIC INSPECTION

Identification of fabric types.

Identification of fabric defects.

Identification of defect types.

What is GSM.

Fabric inspection equipments.

Fabric inspection system and procedure.

About 04 point system.

Discussion on how to control quality.

CUTTING QUALITY CONTROL:

Marker inspection.

Spreading quality inspection and other parameter

related to spreading.

Lay height and ply qty.

Identification of cutting defects.

Panel inspection including measurement.

Cut panel inspection T.M.B.

Discussion about cutting quality control and formats

SEWING QUALITY CONTROL:

Analysis of approved sample and all trims.

Identification of critical process.

Panel inspection for measurements on a random basis.

Inspection of fist 10 pcs.

Mock ups for the critical process.

Standard checking sequence of tops and bottoms.

Identification of sewing defects.

Types of sewing defects.

Discussion about sewing quality control and the formats.

FINISHING QUALITY CONTROL:

Identification defects (sewing/print/emb/wash/iron)

How to measure

Standard checking sequence of tops and bottoms.

Discussion about how important the finishing quality

control and the formats.

Sewing Section

PACKING SECTION WITH PRODUCTION SAFETY

ATER DIVISION

WASHING SECTION

KNITTING DIVISION

FINISHING DIVISION

DYEIING DIVISION

ACCESSORIES STORE

BOILER

GENERATOR

Contribution To the Nation Of Trade p post Limited By providing Export

Export Analysis:

The term exports means carrying out of anything from one country to another, as banker we define export as sending of visible things outside the country for sale. In a word export means goods are outwards and foreign currencies are inward. Export trade plays a vital role in the development process of an economy.

In order to export any goods or services to overseas the exporter must have attested photocopies of the following documents with the up to date ERC. The documents are as follows-

Bill of exchange

Commercial invoice

Certificate of origin

Packing list

Insurance coverage

Bill of Loading

Beneficiary certificate

If the bank authority satisfies with all the information provided by the exporter, steps are taken to smooth out the process of export.

Procedure of Export:

The Exports Act, 1950 regulate the country’s export trade. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods. These formalities or procedures of export mechanism are enumerated as follows:

Registration:

The exports from Bangladesh are subject to export trade control exercised by the ministry of commerce through chief controller of imports and exports. No exporter is allowed to export any commodity permissible for export from Bangladesh unless he or she is registered with CCI & E and holds valid export registration certificate (ERC). The ERC number is to be incorporated on EXP forms and other documents connected with exports.

Obtaining EXP:

After having the registration, the exporter applies to the bank with trade license and ERC for getting EXP. If the bank satisfied an EXP is issued to the exporter. Securing the order after having the registration, the exporter may proceed to secure the export order. Contracting the buyers directly through correspondence can do this.

Signing of the Contact: The following points are to be mentioned while making a contract-

Description of the goods

Quantity of the commodity

Price of the commodity

Shipment

Insurance and marks

Inspection

Procuring the Materials:

After making the deal and on having the L/C opened in this favor, the next step for the exports is to set about the task of procuring the contracted merchandise.

Shipment of Goods:

The following the documents normally involved at the stage of shipment:

EXP form

Photocopy of registration certificate

Photocopy of the contract

Photocopy of the L/S

Freight certificate from the bank

Railway receipt, barges receipt or truck receipt

Shipping instructions

Insurance policy

After those, exporter submits all those documents along with a letter of indemnity to the bank for negotiation; an officer scrutinizes all the documents. If the document is a clean one, Bank purchases the documents on the basis of banker-customer relationship. This known as foreign documentary Bill purchase (FDBP).

Procedure for FDBP:

After purchasing the documents, Bank takes FDBP charges from customers A/c. a FDBP register is maintained for recording all the particulars.

Foreign Documentary bills for collection: FDBP signifies that the exporter will receive payment only when the issuing bank gives payment. The exporter submits duplicate EXF form and commercial invoice, an FDBP register is maintained where first entry is given, when the documents are forwarded to the issuing bank for collection and the second one is after realization the proceeds.

Advising L/C:

When L/C export) is transmitted to the bank for advising the bank sends advising letter to the beneficiary depicting that L/C has been issued. The procedure of L/C has been issued. The procedure of L/C advising is as follows---

Verify the signature

Given entry in the L/C advising register

Issued voucher for L/C advising commission

Contribution to the nation by Trade post Ltd.

Contribution from Export

In the year 2010, Trade Post has exported US$ 115,712,602.41 by exporting ready made garments in USA, Canada, and Europe country. 0.74% (Approx) of total export value of our country. 0.93% (Approx) of total export value from RMG sector.

Total export details done by Trade Post Ltd. are given bellow:

Trade Post Ltd.

Statement of Export

for the period of Jan' 10 to Dec' 10

Sl No Buyer Name Export Value Export Qty

1 Wall Mart $ 34,307,024.89 11,869,987

2 Gap $ 27,987,973.97 8,576,939

3 CSI $ 14,446,794.10 3,511,131

4 Primark $ 12,923,900.62 9,340,865

5 Li & Fung $ 4,040,288.97 1,637,443

6 Rarget $ 3,573,555.28 1,100,532

7 Bonprix $ 2,852,785.34 709,153

8 ZXY $ 2,635,569.88 642,072

9 TCW $ 2,335,832.00 699,680

10 Tex-Ebo $ 1,999,879.62 950,296

11 New Look $ 1,608,403.14 369,679

12 Nygard $ 1,137,763.69 307,760

13 Sears Canada $ 1,065,912.61 413,460

14 Others (24 Nos) $ 4,796,918.30 1,490,568

  Total = $ 115,712,602.41 41,619,565

Theatrical perspective Buying Houses of Ready Made Garments

Theatrical perspective Buying Houses Of Ready Made Garments:

Trade Post Ltd.

Statement of Export

for the period of Jan'10 to Dec'10

Month Export Value US$

January $7,975,000

February $ 8,030,000

March $ 9,919,000

April $ 9,509,000

May $ 8,954,000

June $ 10,456,500

July $ 10,734,500

August $10,044,000

September $ 10,609,000

October $ 10,110,000

November $ 9,450,000

December $ 8,995,000

Buying Houses of ready-made garments have developed with the growth of garment export of our country. It is the combination of all marketing activities relating to searching foreign garment buyers for the order of garments products, taking order of ready made garment products form them, placing order to local factories and providing overall support to the both prospective buyers and suppliers.

It has not been a long time since Trade Post Limited has started sprouting up here and there. Only a few years back where it was difficult to find a re1iable and quality Buying House, but now, there are so many of those.

Buying Housing industry is one of the essential supports of Garments Export. In one hand foreign Buyers of garment products are largely dependent on this industry for searching suppliers, who are capable to produce and supply buyers demanded products.

In other hand garments producers are also dependent on this industry for searching buyers, who places the order of certain garment item such as sweater that the producer produces. So the relationship between garment industry and buying house industry are interdependent. The existence of one without other is hardly possible. The reason for this again exporting garment product involves so many stages from marketing to distribution, which is not possible by any single group to do alone. For the convenience of both buyers and suppliers, the buying house industry today has developed enormously with a vision to perform marketing and distribution task of garment industry. Trade Post Limited is one of the buying houses in Bangladesh. It is 100% export oriented buying house. It is determined to build long term customer relationship with its foreign clients. It tries to maintain better qualify. Buying house industry is a substantial proportion of the industrial sector of Bangladesh. By comparing with other industrial sectors of Bangladesh, this specific industry plays a vital role in the economy of our country

SWOT Analysis

Full meaning of SWOT is Strength, Weakness, Opportunity and Threats. Strengths and weaknesses are influenced by organizations internal environment and opportunities and threats are influenced by organizations external environment. SWOT analysis provides an opinion and judgment whether an organization’s business condition is healthy or unhealthy.

Strength determines how well the company would be able to perform in the light of prevailing resources and competitive condition weaknesses determines lacking or different competitive capabilities in the key functional areas of the company. Opportunity of the company determines company’s important avenues for profitable growth potential utility to sustain in the competitive advantage. Threats determine barriers to companies’ profitability and competitive well being.

Strengths:

The management is solely directed to maintain a culture for the betterment of the quality of the service.

Employees are sharing good atmosphere in Trade Post Limited. That is why it will give them the inspiration to work efficiently.

The top level management is very strong. They can take decision on time and manage all things in systematic way.

The labor forces of the company are cheap and readily available.

Weaknesses

Trade Post Limited do not have adequate transport facilities.

Employee turnover exists because of the dissatisfaction of job in buying house sectors.

Difficult to handle with always upgraded new technology.

Opportunities

Trade Post Limited has planned diversification in product line in order to meet the customer demand for any kind of products. This expansion plan in diversified product would be definitely a positive step to grip competitive advantage and also to raise volume of exports.

Trade Post Limited have emphasized on market segmentation in orders on regular basis. In this way, the company can gain potential market opportunities.

Trade Post Limited has planned to modernize logistic computer support. The best service could be entertained to the foreign buyers.

Threats

Key competitors of Trade Post Limited are offering competitive price than Trade Post Limited which caused major threats to affect company business policy.

Foreign low cost competitors who are investing in the country in this sector are also threats for Trade Post Limited

Trade Post Limited is also affected by the govt. regulations of export and import policy.

Findings, Recommendation And Conclusion

Findings:

The export-oriented RMG sector has made crucial contribution to this above mentioned transformation of the Bangladesh economy. The role of our RMG entrepreneurs, domestic fiscal and financial, institutional policy support and incentives put in place by successive governments, substantial RMG-supportive linkage activities within the domestic economy and global market opportunities combined to create a story which is, to be honest and true, unparallel in the developing world. When jute and jute goods were losing their traditional markets, with the prospect of drastic fall in foreign earnings it is the RMG sector which came in first to replace it, and then to overtake it. While traditional export sector could not yield expected results, the RMG sector gradually injected dynamism in the export as well as in the domestic economy though backward and forward linkage economic activities.

Trade Post Limited is entirely a new RMG sector, which was adopted for a better change in economic condition, women empowerment, and to make the RMG sector function dynamic. Trade Post Export function is performing a vital role to meet up the demand of foreign currency of the country. Trade Post has achieved stable growth and continuous progress in RMG sector of the country.

World demand for garments is strong even in the current slowed global economy Trade Post is gradually moving into more up-scale products which opens additional low-cost markets to Bangladesh. The more profitable up-scale products market is available to Trade Post Ltd. who has the capacity to manufacture higher quality goods. Value added contribution of the Trade Post can be improved by upgrading the existing textile industries so that Trade Post Ltd. could provide more inputs to the Export volume of Bangladesh. An abundant supply of the required semi skilled labour force in Trade Post are the main strengths. Limited capital investment requirement is another strengths of Trade Post ltd. An active and learning entrepreneurial ownership under the supervision of Md.Harun or Rashid Managing Director of the exiting group. The facilitative role played by the government of Bangladesh in the development of the. Trade Post considerable marketability and consumer acceptance in the US and European market.

Value added component for some of the units of Trade Post sold is low, 90% of the quality wool fiber is imported: about 65% of knitwear fabrics is also. Some of the units of Trade Post are capable of producing high quality fabrics. Markets for products are relatively narrowly defined. The labour force lake skills to permit large scale improvement in quality and efficiency. With the expiration of the multi-fiber agreement which provide protected quotas for Trade Post Ltd products there will be increased competition for world market share.

Trade Post plays a vital role in human resources development and employment generation particularly among the unemployed youths. Trade Post Limited employee solve buyer problem quickly & meet their specification.

Recommendations

For RMG sector:

The forty-year old quota system on textile and readymade garments has been withdrawn as of January 1, 2005. As a result our export-oriented readymade garments industry is now facing more competition than any time in the past. we have to strengthen our efforts to diversify products and their markets. All these objectives can be attained only when we can utilize our cheap labor and convert comparative advantage into competitive advantage. In doing so, efforts will be given on encouraging the establishment of labor-intensive export-oriented industries, encouraging training programs for the skills development of the workers, providing incentives for the diversification and encouragement of exports, low-interest loan facilities, infrastructural development, establishment of backward and forward industries, development of utility services, , ensuring easy access to the raw materials for export products, ensuring regular supply of updated information on market and technology to producers, and on the overall development of the Chittagong Port including the simplification of goods unloading procedures.

Moreover, for export of readymade garments by means of development of port management, simplification of goods unloading, resolving the electricity problem and similar activities. Furthermore, assistance will be given to improve the work environment in the readymade garments factories, to reduce risks of accident and to fulfill the compliance requirements at the factory level. Besides, an integrated and reasonable compliance regulation will be prepared with the help of all stakeholders;

At the end I can say that our RMG sector is doing well what is more than our expectation. And if this flow goes on this way then we will be successful and our RMG sector will be a great threat for other competitors in the world market. Based on the above data analysis and findings I suggest the following strategies that RMG should follow:

Re- structure RMG Sector with appropriate backward and forward linkage

We have to re-structure the garment sector. The garment sector of Bangladesh is totally dependent on the foreign investment. They export raw materials, equipments and other facilities to our garments sectors, which are not cost effective.

Improve labor productivity and managerial efficiency

The labor productivity should be increased and it can be possible if the labors are provided with a significantly decent wages and other facilities such as free medicine, bonus, and transportation cost, they will be more motivated and their motivation will lead them to become more productive.

Better working environment

Working environment of garments in Bangladesh is very poor. The owners should give more attention to improve the working condition of the garments. There should be proper ventilation

system, clean sanitation, significant number of fire extinguishers, emergency exit to ensure the safety and security of the workers.

Market diversification:

There were very few market diversifications in our garment sector. Usually the Bangladesh garments sector used to export its products in USA and it realized that it’s not enough. This is why they started exporting in European Union countries. Moreover, to grow or capture more of the market share they should explore and exploit different markets.

Backward integration

Backward Integration refers to the development of subsidiary industries in order to reduce Bangladesh garment’s dependence on imported inputs i.e., the supporting industries that produce garment accessories and the initial processing of imported gray fabric.

Integration:

Due to the lack of development networks among the players involved in the Bangladesh industry and their respective markets, there is little integration within the garment industry. It is also necessary to develop direct links with retailers in the US and EU.

Elimination of child labor

The Bangladeshi industries employ many children and the garment sector is not different from them. It is a matter of industrial reputation that will go down if they recruit child labors. Recruiting child labor may also bring negative impression on the brand image of the company to its customers.

Recommendation for Trade Post Ltd

Recommendations:

Strategies of Trade Post Ltd related with the RMG Sector in the Post MFA

To sustain in the competitive market and detain the achieved position or capture more of the market share Trade Post must adopt certain changes and develop dynamic capabilities. In doing so some of our suggestions are as follows:

Re-structure Trade Post Ltd with appropriate backward and forward linkage

Trade Pos t ltd has to re-structure with backward and forward linkage .The Trade Post Ltd is partially dependent on the local investment. Trade post import raw materials, equipments and other facilities to his sister concern, which are not cost effective.

Improve labor productivity and managerial efficiency

The labor productivity should be increased and it can be possible if the labors are provided with a significantly decent wages and other facilities such as free medicine, bonus, and transportation cost, they will be more motivated and their motivation will lead Trade Post Ltd to become more productive.

Better working environment

Working environment of Trade post Ltd is comparatively poor. The owners should give more attention to improve the working condition of the garments. There should be proper ventilation system, clean sanitation, significant number of fire extinguishers, emergency exit to ensure the safety and security of the workers.

Market diversifications:

There were very few market diversifications in Trade post Ltd. Usually the Trade post Ltd. used to export its products in USA, Europe largely and it realized that it’s not enough. This is why Trade post started exporting in European Union countries, Australia and Canada. Moreover, to grow or capture more of the market share trade post should explore and exploit different markets.

Improving the R&D

Trade Post ltd does not have advanced technology and equipments that’s why Trade Post ltd should invest more in research and development. Besides, Trade post may buy high-tech machines or adopt lease strategy so that Trade post can export higher quality products.

Backward Integration

Backward Integration refers to the development of subsidiary industries in order to reduce Bangladesh garment’s dependence on imported inputs i.e., the supporting industries that produce garment accessories and the initial processing of imported gray fabric.

Upgrading of Skills and Technical Expertise

Although there is an apparent abundance of labor in Bangladesh, there is insufficient level of skill when it comes to the use of many high-speed machines used in the industry. Far too little has been spent on training of staff with skills that are transferable across the industry. Better skilled staff will increase the productivity of the company as well as increase in GDP. This factor of investment in its workforce is often neglected by enterprises, which have been hampered by short term planning

8.Integration

Due to the lack of development networks among the players involved in the Bangladesh industry and their respective markets, there is little integration within the garment industry. It is also necessary to develop direct links with retailers in the US and EU.

Diversifying Product Range

Trade post Ltd has relied on a small, medium to semi-high quality product. These were the main categories covered by the MFA. The development of high quality products will require an investment in technology, training and quality control.

Improvement of Quality

Quality is one of the important factors that make the customer loyal to the product. The respondent group believes that the quality of the product is a factor that affects the sales. They also believe that the volume of Trade Post Ltd business depends on the quality, design and the commitment as the fashion and style changes too often. Therefore, Trade Post ltd has to respond according to his customers’ test.

Pursue an aggressive Marketing

Trade post Ltd should pursue an aggressive Marketing to come up into limelight. Campaign in order to build up a strong image reputation among the potential foreign buyers.

Salary Improvement

Trade Post should improve employee’s salary range which will motivate them.

Performance monitoring

Trade Post ltd should always monitor the performance of its competitors.

Evaluation Buyer’s need

Trade Post ltd should evaluate buyer’s need from their perspective and explain logically the shortcomings.

Effective management information system

Trade Post ltd should setup effective and efficient management information system.

Conclusion:

The above study brings out, in a very concise manner, the increasingly crucial role the export-oriented RMG sector of Bangladesh has come to play in he economy and society of Bangladesh. In its turn, the BGMEA, as the apex body of all entrepreneurs in the RMG sector, takes all possible measures to promote the interest of the workers and the sector. BGMEA strives to promote the cause of the sector and raise public awareness about the important role the sector is playing in the life of the country. BGMEA hopes that appreciation of the role of the sector will enable policy makers to undertake further initiatives in order to enable the sector to achieve yet greater heights to the benefit of the country and its people. The main objective of Trade post is to

become the best supplier of quality products in RMG sectors and create value to the customers. Trade post is mainly RMG focused 100% export oriented Group of industries. It is expanding in the areas of knit composite and other backward linkage industries (Print, Embroidery, Washing and Composite etc). Its major buyers are Gap, Wal mart USA, Wal Mart Canada, Charming Shoppes, Nygard, Sears Canada, Target Australia, George, Primark, Li & Fung etc. Trade post ltd management views each and every employee as valuable resource of the organization and believe in responsibilities, mutual trust and respect. People come to join PGI, feel much comport and pleasure because Trade post Ltd has created enabling environment that encourage employees creativity and achievements. Company aims to become a leader and pioneer in RMG sector ensuring quality products. Trade Post Ltd has managed to create its own identity as one of the country’s leading foreign currency earner in the RMG sector through promoting RMG sector rapidly.

Bibliography

1. Information collected from different department of Trade Post Ltd.

2. Internet.

3. Information collected from BGMEA book.

4. Export Promotion Bureau, Government.

5.Web site: www.tradepostltd.com

6. Google.

7. Other sources.