Engr. A S M Tareq AminEngr. Khondoker Md. Mainul Ahad

Amin & Jahan Corporation Ltd.

Theme:Efficient Use of Resources in Textiles Production

GratitudeIn Association with:

Diamond Sponsors: Gold Sponsor Sponsors

Media Partner Web Partner International Web Partner

Through….

Research, training & development programs.Publishing magazines & books.Consultancy.Seminars, conference & exhibitions.Competitions and awards for philanthropists & talents.Market intelligence report.Creative design, press & printing.

InvokesUnite for sustainabilityCreate knowledge based industrial and business community

Theme: Development of the industrial sectors of Bangladesh through building knowledge based community and linking all the executive bodies of the sector on a platform which is truly global. Integrating research development and consultancy activities with promotional tools is the approach to lead the industrial sectors to ultimate sustainability.

A&Jat a glance

People:

A&Jat a glance

Year of establishment: 2008 (has been incorporated to Amin & Jahan Corporation Ltd. from Amin & Jahan Corporation in 2012)

Board Members: 5Number of Full Time Employees: 25Number of part time editors, consultants & researchers: 21

Places & Contact: Corporate office: (3720 sqf)Unit 601, House # 145, Road # 3, Block A, Niketon, Gulshan 1, Dhaka 1212Tel: 88-02-9863105, Fax: +8802 9854132. Email: info@aminjahan.com Editorial & Registered Office: (1000 sqf)House # 41 (2nd Floor), Road # 5, Block B, Monsurabad R/A, Adabor, Dhaka 1207

www.aminjahan.com

Working in collaborations• German Technical Corporation (GIZ) - On training and publication.• The company has been working together with Switzerland based

consulting firm Gherzi, www.gherzi.com in the garmenting factory optimization.

• Better Works in Textile & Garment of BEST program of UNIDO - Joint workshop & seminar organizing with expertise in the Textile & Garments.

• Textile Institute (UK) - Joint conference and research program on Textile and Apparels.

• Bangladesh Textile Mills Association – Joint conference and research program on Textile and Apparels.

• Bangladesh University of Textiles - Joint conference and research program on Textile and Apparels.

A&Jat a glance

A&J integrates institutions, organizations and industries to do research & consultancy to overcome limitations of expertise, equipments, resources and infrastructure.

Building a community for sustainability

Core Competencesof Bangladesh for the industrial growth

Natural gas based captive power generation which is a reason of cheaper energy in the industries.

Abundant good quality surface water and subsoil water.

Huge population is the back bone for the labour intensive industries.

Bangladesh Vietnam Indonesia Cambodia0

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What are your next top 3 sourcing country hotspot for the next five years?

Core competencies are now core challenges!

Gas has turned into ‘not sufficient’ and power is no more cheap, it is costly now!

Water is being ‘consumed quickly and polluted’.

labour is not being ‘utilized or cared properly’.

Sub Sector No. of units Installed Machine Capacity Production Capacity/year

Textile Spinning 3858.7 ml. spindle

2050.00 ml. kg0.23 ml. rotor

Textile Weaving/Fabric Manufacturing 721 17250 shuttleless

13500 shuttle 2150.00 ml.mtr

Specialized Textile and Power Loom 1,065 23,000 SL/SLL 400.00 ml.mtr

Handloom 148,342 3,13,245 (running loom) 837.00 ml.mtrKnitting, Knit Dyeing: 2800a. Export Oriented 1200 12,000 Knit/dy/M 3,600.00 ml.mtrb. Local Market 1600 5000 knit/dy/M 500.00 ml.mtrDyeing & Finishing (Woven):a. Semi Mechanizedb. Mechanized

35295

257 2000 ml. meter

Export Oriented RMG 5150 561.00 ml. dozenJute Industriesa. BJMCb. BJMAc. BJSA

27101

70337 thou. tons

Structure of The Textile & Garment IndustrySource: BTMA Annual Report 2011 & Economic Review 2011 (MOTJ)

The industry is heading towards sustainability with good backward and forward industries:• 90% of manufacturing industry is textile garment industry• 90% of knit fabrics for knit RMG and 40% of woven fabrics for woven RMG provided by local

basic textile industries• 90% of domestic fabrics and 95% of yarn for requirement of knit garments are met by local

primary textile industry• Some heavy chemical industries are manufacturing textile chemicals, Some textile auxiliaries

formulation unit has established, few petrochemical industries to manufacture textile auxiliaries are producing and few others to start production soon.

• Currently one reactive dyes manufacturing unit has established.• Many garment accessories are being produced in Bangladesh, Some factories are producing

man made yarn/fiber. • Provide huge opportunities for the supporting Industry- Banking , Insurance, Shipping,

Transport, Toiletries, Cosmetics, Hotel and other related economical activities• 90% of this industry is export oriented• Number of Textile and RMG companies are entering stock market by Initial Public Offerings

(IPO)

Structure of the Textile & Garment Industry

Only 40% of value addition of the final products can be done by our industry.More backward linkage industries are necessary to increase export retention.

Contribution in Export• Textile and apparel industry comprises 88% of total export• Bangladesh is the 2nd largest apparel exporter in the world• Bangladesh is still competitive as all other textile garments manufacturing

countries had to raise their wages like Bangladesh.• But still contributes less than 5% of total global apparel export. Global

export leader China is leading with around 34% market and strongly believed to be more expensive day by day than other manufacturing countries.

Bangladesh is comprising only

19.09 billion of total 400 billion apparel

export.On this 19.09 billion export net retention

is only 40%.

China36%

Bangladesh5%

Turkey4%

India3%

Other52%

Gas situation for the industryAlmost 100% percent of the captive power is gas based, 40% of which is being affected by gas shortage and supply

problem.

We must look to the alternative sources of

power generation

Moving to a sustainable coal use seems

mandatory to keep things moving

Report said about 4000 crore of local investments in the textile apparel industry are yet to start production due to no gas or power connection.

Many existing companies has sufficient orders and plan for expansion but pending on gas or power connection.

Power 33%

Captive Power18%

Fertilizer9%

Industry20%

Household12%

CNG5%

Others 3%

Sector Specific Natural Gas Demand FY12-13

2000 2002 2004 2006 2008 2010 2012 20140

2000

4000

6000

8000

10000

12000

Natural Gas Situation in Bangladesh

Dry Natural Gas Produc-tion (MMCF)

Proved Re-serves of Natural Gas (MMCF)

Year

MM

CF G

as

Source: US Energy Information Administration

• Natural Gas Consumption is 710 BCF against annual average demand of 912 BCF and increasing ….

• Only 6.49 TCF gas reserve is left in Bangladesh …

•According to the projection, the total annual demand of Natural Gas for the year 2014-2015 would be 1335 BCF.

• Projection gives: Before 2025 Natural Gas will be depleted!

Power Sector Situation of The Country

Estimated daily demand supply gap (MW Power) up to year 2016. Data Source: PDB

• Only some apparel and allied small scale industry is using power from the supply. RMG industry is using only 400 MW of electricity from govt.

• Industrial captive power generation is 3000 MW. Almost full capacity is being run by gas

• Current energy crisis is impeding industrial growth.• Government is moving towards a long term sustainable power policy which

should be empowered and established 100%, not in a portion.

Water Table of Dhaka is Declining….

In Bangladesh:

• An average denim washing factory consumes monthly more than 9,650,000 (around 10 million) Liter water.

• Average Knit composite factory consume more than 75,000,000 (75 million) Liter water/month.

Resource Utilization in Knit Composite Ind.

Resource Benchmarking is the first step of the Resource Utilization

A study from A&J and other sources reveals that Specific Consumption of Resources Per Kg Fabric is:

• Diesel and CNG are also used

Data: A&J CP Observations

Average factory in Bangladesh

Average good factories in BD

World’s best Practices

Water (Liter) 140-250 110-150 60-70

Electricity (kWh) 0.56-2.51 0.5-1.0 0.4-0.6

Natural Gas (cubic meter)

1.2-2.5 0.5-1.0 0.3-0.5

Steam (Kg) 4.3-13.5 8-10 5-6

Technical Challenges for Resource Utilization

Wet Processing Industries (Dyeing & Finishing):Reprocessing percentage (Less than 0.5%) and process loss (less than 5%)

should be reduced remarkably .Optimized use of existing machines and resources (Manpower & chemicals) is

important.Optimized and prospective use of laboratory.More process optimization and control to approach RFT (Right Fast Time).

Cleaner production practices should be implementedMore energy conservation should be approachedWater use should be measured to save

Spinning, Weaving & Knitting:State of the art machinery in most of the industries.Use of sophisticated hardware & software (Autoconer) to increase uniformity.Remarkably reduced material loss.More production by running the machines at higher speed.Optimized use of the machines.

More specialized product manufacturing approach will increase production- frequent article change is hindering production.

More research is needed in the product development to get maximum benefit from the existing machines and raw materials.

Technical Challenges for Resource Utilization

RMG industry:Productivity of Average Bangladeshi RMG industries is 30-40%!!Productivity in the textile industries is much higher (60-70%).Modern production methods like Lean Manufacturing is being implemented

in some factories which can easily increase the productivity to 60-70%.

• Automation in Production Process• State of the art technologies and machinery under operation• Use of CAD/CAM in Production• Use of Enterprise Resource Planning (ERP) software by the manufacturing organizations• Overall good managerial practices in all aspect including Human Resource Management (HRM)• Skill development of the employees through in house and institutional training

Invest not only to increase your production but also to increase your productivity.

Make money not only through production but also through productivity.

Technical Challenges for Resource Utilization

Employment in Textile & Apparel Industry

Provide 6.1 million of employment where 80% of them are women

15 million of people in support industries depending on this trade

Provide 0.2 million jobs in waste recycling industry related to textiles

Sub Sector Manpower

Textile Spinning 400,000Textile Weaving (Larger machine) 80,000

Specialized Textile and Power Loom 43,000

Handloom 793,000

Knitting, Knit Dyeing:

a. Export Oriented 300,000

b. Local Market 24,000

Dyeing & Finishing:

a. Semi Mechanized 10,000

b. Mechanized 23,000

Export Oriented RMG 3,500,000

Jute Industries 100,000

Others: 600,000

Grand Total 6,100,000

Level of Course Type of Institution Present Total Intake per Annum

M. Sc. In Textile Engineering 2 Public Universities1 Private University

100

4 year B.Sc. in Textile Engineering Bangladesh University of Textiles (Butex), 4 Textile Colleges under DOT,1 (one) Textile College under BTMA,2 (two) Private Colleges, BIFT 2 (two) Depts. in Public Universities,15 depts. in Private Universities

5000

Diploma in Textile Engineering 61 private textile diploma college & 3 institutes under DOT

3000

Vocational (SSC-10 class level) under DOT 40 Vocational Institutes 1500

1 Year Long Course in Textile Technology NITTRAD 50

Total - 9650

Source: PPMA team survey & review of secondary sources.

Education & Training

Quality of education must be ensured in each level of education

Education & Training

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-150

5000100001500020000250003000035000400004500050000

Demand & Supply of Engrs.

Demand of B.Sc. Engr. Supply of B. Sc. Engr.Demand of Diploma Engr. Supply of Diploma Engr.

A good blend of engineers and technician only can come out from a nicely structured education system

Global Sustainable Initiatives• 10 different brands participated in IFC-SEDF Cleaner Production 1st phase:

H&M, Levi Strauss & Co, WE, Mothercare, Kappahl, Lindex, Tesco, Primark, New-Look, Bestseller

• M&S started Plan-A for environmental sustainability

• Organic, OE & BCI for environmentally friendly fibers.

Global Sustainable Initiatives

H&M RSL initiative to make their supply chain zero discharge of hazardous chemicals (ZDHC) by 2020.

Global Sustainable Initiatives

Consultancy Services

• Cleaner Production (CP) for the Processing Plants• Energy Auditing• Chemical Management and Auditing• Health, Safety & Environmental Audit and Fire Safety Audit• Zero Discharge & Green Factory Set-up• Compilation & Preparation of IEE & EIA for processing plants• Quality Assurance • Garment Productivity & Quality Increment etc.

How A&J can contribute in resource utilization

Resource Utilization- Example

• Cleaner Production pilot project of IFC-SEDF at 6 factories

save yearly:

Steam: 19,557 Tons Electrical Load: 1,916 kVA Electrical Energy: 5,380 MWh Water: 426,023,000 Liter Natural Gas: 6,374,568 Cubic meter GHG reduction: 13,079 Tonns of CO2

Overall Financial Saving: USD 934,544 directly per annum Source: As shared by IFC-SEDF in CP Final workshop.

• GDP in export sector increased THREE FOLDS within a decade.

• The economic boom in Bangladesh due to the textile sector where the contribution of women workers are the highest (80%)

• In spite of limited natural resource and population density still Bangladesh’s economy has maintained a healthy growth rate in past years

... accelerate Bangladesh's economic growth to 8% to be a middle-income country by 2021…

Bangladesh Is The Crux of The Surprise!

Bangladesh Is The Crux of The Surprise!

Daily Prothom-Alo 23rd Nov, 2012

Bangladesh now belongs to a small group of countries that 'have done well' inboth human development indicators and

economic growth in recent decades

THANK YOU