European Union BASELINE SURVEY FOR BETTER … Survey BWTG Final Report.… · Section Subject Page ... and 273 garments washing-dyeing units. ... were found turning out excellent

0

Dhaka-November 2009

Acknowledgements

Acknowledgement

SUBMITTED

TO

European Union

&

United Nations Industrial Development Organization

By

Dr. Ali Nesar Khan

REPORT

BASELINE SURVEY FOR BETTER WORK IN TEXTILES & GARMENTS (BWTG)

Dhaka 2010

ON

1

The baseline survey was conducted with a purposive sample size (but with a stratified random approach) due to time & budgetary limitations. Two research associates- Ms Tanzila Hasan (BBA Graduate from North South University) & Monjur Uddin (young Textile Engineer)- energetically assisted me in accomplishing the assignment.

Mr. John T. Smith (International Coordinator, Textile & RMG component of BQSP) provided very useful advices while designing the questionnaire of the survey and Mr. Maqbul Ahmed (National Coordinator-Textile) was very much helpful and cooperative throughout the survey.

Mr. A.N. M. Ahmed Ullah, Textile Education Coordinator of Southeast University and Ms Mahmuda Begum (Assistant Professor, BIFT Fashion Department) were kind enough to put energies in supplying HRD related information of the sector. The others who assisted form a long list. I offer my regards and gratitude to all of

those who supported me in any respect during the survey.

Finally, I want to extend my thanks to Mr. David Lee (Project Manager, Improving the Quality & Productivity of The Textile/RMG Sector), other UNIDO staff in Vienna and the BQSP staff in Dhaka as well for giving me a chance to work for BWTG component of BQSP.

Dr. Md. Ali Nesar Khan

Director, PPMA

2

TABLE OF CONTENTS

Section Subject Page Executive Summary 3-8 Section-1 Overview of Bangladesh Textile & RMG industry

1.0 Background of Bangladesh Textile & RMG Industry 9 1.1 Structure and Size of Bangladesh Textile & RMG industry 9 1.2 Locations & Cluster 9 1.3 Annual Export 10 1.4 Growth Rate 11 1.5 Value Addition 11 1.6 Contribution to Economy 12 1.7 Employment 12 1.8 Compensation/Salary of the Workers 12 1.9 Transition to Higher Responsibility Position and Better Payment of Workers 12

1.10 Gender Issues 13 1.11 Social Compliance & Safety Issues 13 1.12 Suggestions for increase of RMG Exports 14

Section-2 Sector Competitiveness 2.0 Introduction 15 2.1 Quality Issue 15 2.2 Marketing Skill 22 2.3 Order Response Time 22 2.4 Product & Design Development Ability 23 2.5 Branding 25 2.6 Capacity Utilization 25 2.7 Labour Productivity 26 2.8 Cost & Value Addition 26 2.9 In-house Training 28

2.10 Support Services 28 2.11 Ways to Enhance Sector Competitiveness 28

Section-3 Services of Technical Centres 3.0 Introduction 29 3.1 Existing Technical Institutes and their Capacity & Services 29 3.2 Interventions needed to Strengthen Existing Institutes for Technical Service Providing 31 3.3 Initiatives for Effective Services by Technical centres 33

Section - 4 Human Resource Development Issues 4.0 Introduction 34 4.1 Existing Needs and Future Demand-supply Gap of Human Resources for Textile & RMG Industry 34 4.2 Quantitative Aspect of Local Supply of Textile Graduates 36 4.3 Qualitative Aspect of Locally Supplied Skilled Manpower 37 4.4 Need of a Long Term Support Plan For Textile Training 38 4.5 Steps needed for Vitalization of HR Initiatives 38

Section - 5 Ministries and Private Sector Associations 5.0 Introduction 40 5.1 Existing Major Policy Support to Textile & RMG Sector 40 5.2 New Textile Policy 40 5.3 Private Sector Associations 41 5.4 Need of Cooperation 41 5.5 Annexure-1: Units Surveyed 42 5.2 Annex-2: Industry leader & knowledgeable persons met 45 5.3 Abbreviation 49

3

EXECUTIVE SUMMARY

I INTRODUCTION This baseline survey has been undertaken prior to starting the result oriented activities of BWTG (Better Work in Textiles & Garments) to know as where the whole industry stands in terms of performances, institutional capacities, information & research services, constraints, cooperation, etc. The purpose of this baseline survey is to collect baseline data for the assessment of growth, competitiveness, services of technical centres, human resources, ministries and private sector associations of the textile and RMG sector, which will be used for future evaluation of the impact of component 3A of the BEST programme.

The survey was conducted to collect information through review of published information, factory audit/owners’ survey (that covered in total 84 small, medium and large enterprises-12 from each subs-sectors from 4 concentrated pockets), and consultation/interaction with several industry leaders/office bearers’ of the Associations and experts/knowledgeable persons about the industry, HRD and GOB institutions.

II OVRERVIEW OF BANGLADESH TEXTILE & RMG INDUSTRY Present Size & Location: Bangladesh Textile & RMG industry comprises 155,557 units, with 148,000 handlooms units, 3,284 mechanised primary textile units, 4,000 export-oriented readymade garments manufacturing units, and 273 garments washing-dyeing units. Around 95% of the industry are concentrated on 77 clusters in 9 different geographical locations (districts) under 2 administrative divisions: Dhaka & Chittagong.

Export & Growth: Bangladesh now (2009-10) exports readymade garments of value US $ 12.5 billion and textile goods of value US $ 725.25 million. The growth of RMG and Textile exports were respectively 1.21% and 38.83% in 2009-10 over the previous year. Except for home textiles & terry towels, the export growth rate of Bangladesh textiles & RMG goods shows clear declining trend in the last 5 years; the high double-digit growth of RMG export, which was 23.11% in 2005-06, has fallen to very marginal level in FY 2009-2010. Further market accessing and enhancing value addition can cause the revival of higher growth. Under the circumstances, enhancing enterprise competence in terms of quality, cost, product ranges, quick response, and active marketing remain the last card in the hand of Bangladesh to revive the export growth.

Value addition: No reliable study or survey on value addition of the RMG & textile sub-sector was found available. Based on the field data collected through the baseline survey, we have calculated average value additions for each sub-sectors such as spinning- 36%, weaving- 27%, knitting-11%, woven dyeing-22%, knit-dyeing-19%, woven garments-31%, and knit garments- 29%. Availing of value added services by the industry in the form of training or consultancy service, information & research bureau services, testing/certification and design services, productivity/lean management services, clean production service appears to be very much potential to enhance further value addition to their products.

Workers Transiting to Higher Responsibility Position and Better Pay: Presently the transition (with better pay) of entry-level workers (i.e., helper/apprentice) to immediate upper level (i.e. junior operator or semi-skilled workers) ranges from 10.3% to13% in textile mills and 23% to 26% in the garments factories. The same for semi skilled to skilled level remains within 5.5% to 6.6% and that for skilled level to supervisory level is only 1.65% to 2.5% in the textile & RMG companies. Providing venue or cluster based training on operational skill & floor management issues would have increased the workers’ transition, the respondents in the survey and knowledgeable persons believe.

Economics, Employment & Gender Issues: The industry accounts for about 76.60% of the total export earning and contribute 12% to national GDP. It provides employment to about 5 million people with nearly 51% being female. Ridiculously, the females- who contribute maximum physical labour form only 0.87% to 9.92% of the executives/officers, depending on nature of enterprises. Lack of their technical education/training and pre-conceived wrong notions about their capability are the root causes of this discriminatory scenario.

4

Enforcement of Labour Law: Strong rationales are there for enhanced enforcement of national labour law. Too few workers get formal appointment letter. Woven garments companies were found issuing highest appointment letters, to the extent of 17%. Some 29.76% of the visited factories paid wages in instalments throughout a month and almost half of the companies frequently shift dates of payment of salaries. The majority of the surveyed units do not provide workers with the salary sheet containing payment details. There are little traces of forced labour with pay, and workers are discouraged to collectively bargain. Safety standards are grossly sub-standard and health & hygiene conditions in the factories have to be far improved.

Recommendations: • Comprehensive programme could be formulated to provide the export-oriented RMG and the backward

linkage industry with skill & management training, value added services (e.g., testing, quality control, design, brand management, etc.), strategic marketing assistance, R&D services for product development and quality improvement, and compliances assistance. Implementation of such programme is likely to increase exports of RMG products.

• Improvement of workers’ skill & efficiency through venue-based training will facilitate workers transition to higher responsibility with better pay. So, a comprehensive scheme for workers training can be formulated and implemented by involving the relevant stakeholders associations and the training providers like NITTRAD, BIFT & iART.

• An effective advocacy programme may be undertaken to facilitate undertaking a scheme/project jointly sponsored by the government and stakeholders associations for promotion of employment of the national labour force according to national law.

II SECTOR COMPETITIVENESS Present level of Quality: The surveyed units are highly uneven in terms of their product quality. Only a strong minority of surveyed spinning mills (8%) were found turning out excellent quality yarn corresponding to Uster statistics ≤ 5%, but the majority’s (58%) quality remains at or beyond 50% Uster statistics, indicating not enough good yarn for use in higher value goods. Some 58% of the weavers and 50% of the knitters reported that from 5% to 20% of their products were rejected by dye houses/RMG companies for having fabrics defects of various types. Almost half of the surveyed dyeing companies achieve less than 75% quality in single trial.

Considerable large part of the surveyed garments-both woven and knit- largely turns out low quality and very generic (non-fashion) products for which they are given very low price (FOB price below US $ 42 per dozens in case of 50% woven and 67% knit garments). For lack of systematic quality control approaches, the productions are characterized with low quality achievement (e.g., almost half of them achieves less than 80% target quality in single trial), high remnants (often over 5%), and price cut due to quality claim (e.g., 64% woven and 75% knit garments compromised their prices to the extent of 5 to 15%, at least once a year).

Marketing Skill: Communication with the core buyers is much less as compared to their agents or brokers. The companies seemed tuned, by default, to participate in the bid of invitation rather than offering products (with concrete terms & conditions and smart bargaining/negotiation modality) to procure orders. Speed-to-market is now a very important factor to procure orders in the international market and ICT is there an essential tool. The field survey, however, reveals that online bidding through ICT is a matter yet to be popularised in the industry.

Response Time: When for highly fashionable assortments (the price of which happens to be higher) there are 6 to 8 seasons in North America & some parts of Europe, there Bangladesh has the ability to respond no more of 2 to 3 seasons for prolonged lead times. Bangladesh RMG on average takes 100 days (80 to 120 days) lead-time. According to officials/executives working for internationally reputed buyers (e.g. Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H & M, Uniqlo and Li & Fung., VF Asia, GAP, E & A Mondial, etc.), out of 4,000 to 4,500 RMG companies only 200 to 250 can quickly respond to buyers’ orders.

5

Buyers are seemingly in favour of giving very short lead-time for cutting and sewing –just 12 to 15 days instead of average 25-26 days and in total 2 to 2.5 months instead of 3 months. On the other hand, they are curbing the order into smaller sizes, day by day. For example instead of previously given large orders like 50,000 or 15,000 dozens now trend is increasing for 12,000 to 3,000 dozens; orders for fashion products happens to be smaller but with higher price premium.

Apart from operational skill insufficiency, the extended lead times are for heavily dependence on a range of issues: lengthy design/style confirmation process, sourcing of quality inputs through import, internally less efficient supply chain (less efficient order processing), slow handling/transportation of goods due to poor condition of road & traffics, less port efficiency, lack of deep seaport facility, etc. Buyers now want the RMG companies to be more efficient with the issues like design sourcing/development & sample support, backward supply chain, productivity, and in time shipment to cut down lead-time.

Product development: The local textile & RMG companies are the basic product manufacturers, predominantly. None of the surveyed units has together the product development wing/department, product development staff and on-going product development scheme/piloting project.

In-house Design Development Facility: Lion share of the surveyed units do not have design development facility (lab/equipment), experienced or trained designers and design development scheme together. A good number of garments units have styling capacity-which often mistaken for design capacity. RMG companies are mostly supplied designs by buyers or their agents and in few cases are dictated or advised to procure from designated sources (ref. to section 2.4 for detail).

Branding: None of the surveyed garments or textile companies has so far been able to create any brand in the international market.

Capacity Utilization: Capacity utilization among the different categories of textile operations varies from 67.73 to 76.77% and that for garmenting 71.3 to 73.1%. According to the respondents, the erratic power supply and shortage or low pressure of gas is the main cause of 10-20% lower capacity utilization than what could be achieved.

Labour Productivity: Average labour productivity per person-hour are: spinning-1.05 kg, weaving-5.30 meter, knitting-2.19 kg, woven dyeing-6,6 meter, knit-dyeing-1.32 kg, woven garments -0.09 dozen, knit garments-0.11 dozen. According to the respondents, the improvement in labour productivity can result from balancing size and composition of the work force (rationalized setup), all sorts of training to ensure best work flows adjusted over time, use of relevant software from experts, and work incentives.

In-house Training: The survey reveals that the industry is grossly week in providing systematic in-house training effectively; lack of professional qualified trainers, lack of teaching/training aids and weak training programme (no systematic evaluation, no incentives and no follow up & feedback intervention, etc.) are the causes.

Support Services: The respondents of some 69% surveyed enterprises recognised that support services often become essential for quality improvement, productivity enhancement, product flexibility, cost efficiency, marketing skill, etc. Similarly, they mentioned about the need for training, testing/accreditation, productivity, design/product development services, etc. to enhance company’s value chain. The respondents prefer to have competent technical & research centres in different industrial pockets where they could have accessed need based multiples services of international standards on issues mentioned above, even at cost.

Recommendations: • The industry should thrive more for increasing labour productivity, minimizing cost, squeezing production

lead-time, avoiding rejection of goods/wastage or price reduction, and stock lots. So, an extensive training scheme on quality management (quality control, assurance and improvement), productivity

6

improvement/lean manufacturing, efficient costing, and Enterprise Resource Planning (ERP) issues could be taken up for the executives/managers of the RMG & textile companies.

• Assistance package can be offered through training and bureau services so that individual RMG companies can develop speedy communication with the buyers directly, negotiate price efficiently, establish sustainable customer relationship, source inputs efficiently and acquire the skill to be very responsive in processing regular smaller orders as well as orders of fashion products within buyer specified lead-time.

• Technical assistance package could be formulated and offered in the form of piloting projects for product development, design development & design transferability, and for development & promotion of branding of local RMG products in the international market.

• Intervention could be designed to strengthen local Institutional capacities for providing the industry with relevant training and various support services/assistances for communication, international bidding through ICT, order processing, design sourcing and development, product development, branding, efficient costing, etc. throughout the value chain. In this connection, the assistances of globally experienced experts and exchange of knowledge & experiences with best practicing institutions/centres are essential.

IV SERVICES OF TECHNICAL CENTRES Expectation: The respondents of the surveyed textile & RMG enterprises, industry leaders, buyers, and knowledgeable persons want efficient institutions or centres to grow not only centrally but at large cluster/pocket level areas too so that enterprises can have wider & easier accessibility to the services. They want to see efficient centres capable of providing R & D, information and value added services to different textile and garmenting enterprises. They prefer existing institutional capacities be revamped and used in catering need based services to the industry- professionally, at per international standards.

The Existing Institutes/Technical Centres and their Shortcomings: In the country, there are 83 public and private textile educational institutions/centres; depending on respective capacities and legitimacy, they are offering different levels of vocational & academic courses (e.g., vocational, diploma, B.Sc. and M.Sc.) in textile and RMG disciplines. Additionally, there are stakeholders association patronised institutions namely NITTRAD, BIFT and iART that are designed to provide education, training, and value added services to the industry. But these institutes do not undertake any action or process research programmes that could be shared with the industry and also do not provide such services as design, certification/accreditation, information, productivity, enterprise resource planning, clean production support, etc. The short term skill training that they provide is neither qualitatively nor quantitatively enough to the needs of the industry, the respondents opine.

A range of causes are refraining these institutes from keeping their expected role. Except NITTRAD, which is well equipped with modern lab equipment and physical infrastructures thanks to GOB funding and UNIDO’s technical assistance under BEST programme of BQSP, the other 2 institutes (BIFT & iART) are suffering from shortage of lab equipment, in particular for their design and testing labs. The training/education curriculum of none is properly developed, not to speak of timely up-gradation of the same matching with industry’s needs. They have very limited qualified resource personnel under permanent pay role, who are also not enough experienced or trained to provide need based training and value added service to the industry. Their libraries are to be improved further.

Recommendations: • Creation of competent technical centres capable of addressing industry’s needs is a growing demand of

the time. The capabilities of the institutes like NITTRAD, BIFT & iART could be strengthened and tuned up for providing such services. However, to make all this to happen, firstly the institutional capacities have

7

to be revamped by strengthening resource staff with training and disseminating activities through seminars, improving laboratory facility, upgrading education & training curricula and library, etc. Secondly, the existing capacities of different institutes are to be coordinated effectively to maximally utilize the resources in a possible efficient way. Inclusion of four government colleges in this programme could be examined.

• In order to make ensure sustainable utilization of the capacities of the above-mentioned institutes, the centres initially could be guided to provide bureau, R& D and information services to the industry.

• Out of existing large number of Primary Textile and Ready Made Garment Companies- some 100 or more- desiring to improve productivity and quality could be provided with consultancy services, considering such selection criteria as: aging of the enterprise, productivity of the outputs, quality of products, cost of products and competitiveness, cost-benefit ratio, Internal Rate of Return, marketing prospects, etc.

• Every year at least 6-10 technical seminars / workshops are to be organised to disseminate results of the activities and programmes implemented during a programme of at least 5 years.

• Strategic alliances already developed with the internationally reputed universities / institutes needs to be extended with the renowned universities / institutes of Hong Kong, Taiwan, Thailand, India etc. and cooperation for higher education through exchange of students / faculty members, fellowships (including15-20 overseas training) for the selected faculty members of relevant institutes / colleges could be made.

• In order to further strengthen the training capability of these institutes, lab and other equipments, library books, magazine etc. including upgrading of curricula and training manual could be procured during the BWTG programme.

V HUMAN RESOURCES Demand-gap Supply: DOT’s Survey published in 2009 shows that out of 4.2 million workforces only 5,644 persons (0.13%) had technical qualifications in textile disciplines. The study anticipated that by 2014-15 the textile industry will need in total 70,654 educated manpower having PhD, M.Sc., MBA, B.Sc. & diploma degrees. Of them, 19,996 should have B.Sc. degree in textiles. In FY 2009, there was a total delivery of some 5,100 persons by the existing institutes. This trend would take more than a decade to fill up the present demand-gap of total 65,010 textile engineers/technologists including 17,962 B.Sc. level graduates for the country’s textile & clothing industry. On the other hand, the UNIDO-EU sponsored Needs Assessment study conducted in 2006 estimated that by 2010 Bangladesh PT & RMG sector together might need 65,247 personnel trained and/or educated in marketing of textiles & apparels.

The Inadequacy: The experts, owners and buyers have the consensus on that the quality of textile & apparel graduates delivered by textile education providers have to be far improve, training initiatives are too inadequate to satisfy industrial needs, and effective knowledge dissemination practice through technical seminars is bare minimal. Apart from lack of practical learning facilities, shortage of study materials or staff development issues, etc. there are other problems too acting as the barriers towards developing graduates/trainees exactly needed by the industry. Enterprises are less interested to send their employees to attend outside training programme and reluctant to cooperate students/trainees in the internship. For real promotion of education & training the stakeholders’ associations have to be more active and committed, the interacted trainers & educationists opine. There is no effective initiative to popularize training in the local industrial culture. There is lack of experienced trainers to understand burning issues that the industry needs quickly resolved through training for imminent real benefit. There is a considerable lack in training delivery experience and related arts.

Recommendations:

8

• Considering the lack of local experience in implementing sustainable strategic training programmes for the textile & RMG industry, a long term Support Plan for Textile Training is needed to be formulated that should continue at least for 5 years. The plan among others should include provisions for continuous transfer of experience of best practicing organizations/institutions of the world to Bangladesh through training of trainers in the form illustrative/demonstrative training by foreign experts; investigate ways of popularizing training; find ways to involve owners and member of associations with training more cohesively; devise effective back-stopper watchdog for uninterrupted continuity the long term programme once started.

• While popularizing training, one of the best tactics could be conducting several trainings that are potential to develop some needed skill quickly and thus create positive impact the mindset of the industry towards training. So every year 10-12 quick impact training can be designed and implemented in cooperation with experienced foreign experts.

• Considering the huge shortage of qualified managers & supervisors, every year at least 200 managers and supervisors should be provided training, who in turn will disseminate knowledge and skill to the other personnel working in the industry. Preferably, foreign experts in cooperation with local trainers should design and conduct this type of training.

• A scheme for providing training to 1,000 qualified designers and technicians every year should be designed and implemented by the relevant institutes under the supervision of foreign & local experts.

In formulating and implementing this long-term support plan, the assistance from BWTG component of BQSP could be sought. The plan needs cordial support of the government and stakeholders’ associations to be implemented.

V. MINISTRIES AND PRIVATE SECTOR ASSOCIATIONS Several ministries & departments are involved in formulating and implementing/administering policy issues concerning export -oriented Textile & RMG sector of Bangladesh. The Textile Policy in consonance with GOB Industrial Policy implies key policy frame to regulate and monitor the development of the sector. MOT &J has drafted a new Textile Policy, which is now under the process for approval of the competent authority. The draft policy has made certain amendments in view of post MFA market integration and it envisages some positive adjustment in policy formulations with regard to fiscal, monitory, trade and incentive measures. Yet the policy needs to consider more liberal policy for FDI, modernization of the regulations on environmental issues along with mention of mandatory ETP provision, priority for product quality & copy rights issues, improved business laws of the country to efficiently handle disputes in trade issues, clear guide lines for setting up of industrial park or textile village under PPP project, etc.

There are more of 6 stakeholders associations active in taking care of the industry. Among them most important and influential are BTMA, BGMEA & BKMEA. The industry leaders sometimes criticize GOB policies for not being proactive and timely. Nevertheless, the associations have not also developed their research cells to develop policy implications with facts and figures that would play role in making GOB’s decision more quickly.

Recommendations: For ensuring better cooperation between public and private institutions and for good policies formulated and implemented, there could be textile & RMG business oriented think-tank institute/cell under PPP management, which could timely detect the anticipatable policy problems or crisis by reviewing local & international business situation & dynamics. Working cohesively with the stakeholders, local institutes/centres & the GOB agencies, the institute/cell could formulate acceptable policy recommendations to expedite the GOB’s policy framing for the integrated development of textile & RMG sector. In addition, two sub-contract units namely, Textile Strategic Management Unit (TSMU) and Garment Strategic Management Unit (GSMU) of BWTG can be of great help to provide policy support services to the ministries and can also create good cooperation between public and private institutions.

9

SECTION-1

OVERVIEW OF BANGLADESH TEXTILE & RMG INDUSTRY

1.0 Background of Bangladesh Textile & RMG Industry The territory now comprising Bangladesh has rich history of textiles. Its manual handloom weaving demonstrably flourished during the Mughal Era with historical evidence of export of silk and cotton textiles (e.g., muslin & jamdani fabrics) to Europe and different Asian countries. Bengal’s textile industry was partially mechanized during the later period of the British regime. The technical cooperation extended by East Pakistan Industrial Development Corporation (EPIDC) kept commendable role in further mechanization of textile industry in the country during Pakistan period.

Bangladesh initially proceeded with a mindset of public corporate approach. Bangladesh Textile Mills Corporation (BTMC) started operating some 74 nationalized textile units and subsequently created some new capacities (mostly spinning units) by early 1980’s. With the adoption of privatization policy since mid 80s the private sector initiatives were started and that achieved momentum from late 80’s with creation of new capacity in the Primary Textile Sector responding to the higher demand of the fast growing export-oriented RMG industry as well as the increased demand of domestic market.

1.1 Structure and Size of Bangladesh Textile & RMG industry Bangladesh Textile & RMG industry is now the largest component of the country’s manufacturing sector, with a structure & capacity as shown below.

Table-1.1: Size and installed capacity of Bangladesh textile & apparel sector Sub-Sector 2008-09

No. of Units Installed Capacity (no. of machines in ‘000) a) Spinning: i) Public sector 24 460 ii) Private sector (cotton & synthetic) 340 8,900 b) Weaving: i) Weaving Mills (large, medium & small) 1,131 49 ii) Handlooms 148,000 498 c) Knitting and/or Knit-Dyeing: 822 13 d) Sweater industry 607 307 e) Dyeing –Finishing (Mechanized & Semi-Mechanized) 360 7 f) Export-oriented RMG (knit and woven) 4,000 600 g) Garments Washing & Dyeing units 273 -

Source: Final ireport on the Survey of Textile Sector. Department of Textiles (DOT), under the Ministry Textile & Jute, 15 June 2009 & Data of TSMU

1.2 Locations & Cluster

Roughly, 95% of textile & export-oriented RMG manufacturing units are located in 9 administrative districts of Bangladesh under 2 administrative divisions namely Dhaka and Chittagong, as show below. In the baseline survey, it was revealed that, the majority of textile and RMG manufacturing units are concentrated on 77 clusters in 9 different geographical locations. The locations are Dhaka, Chittagong, Naryanganj, Norshingdi, Keranigonj, Manikganj, Gazipur, Mymensingh and Tangail belts. Apart from these places, there are some textile & RMG units in Munshigonj, Comilla, Shirajgonj, Ishawrdi, Syedpur, Rajshahi and other locations without forming any sizable concentrated pocket or cluster.

10

Table-1.2: Locations & cluster/pockets of Textiles and/or RMG industrial units DHAKA GAZIPUR NARYANGANJ

& KERANIGANJ NORSHINGDI MANIKGANJ MYMENSINGH

& TANGAIL CHITTAGONG

Budda-Rampura, Tejgaon Hajaribag, Shampur, Mirpur, Mohakahi Mohammadpur Khilkhet, Uttara, Uttar Khan, Ashulia, Zirabo, DEPZ, Ganak Bari, Biplie, Savar-Town, Hemayetpur, etc.

Tongi main, Pagar, Board Bazar, Sineboard, Hotapara, Chourasta, Joydevpur, Mouchak, Shakhipur, Chandra, Kashimpur, Konabari, Porabari, Sreepur, Rajendrapur, Mauna.

BSCIC Narayangonj, Fatullah, Chashara, Bhulta, Panchabotti, Godnyle, Adamji EPZ, Kanchpur, Baktbali, Kutubail, Rupnagar Rupgonj, Tarabo, Barpa, Keranigonj.

Velanagar BSCIC Ghoradia, Madhobdi, Monohordi, Panchdona, Vhowala, Baghata, etc.-

Nayading, Dhamrai, Joynazgar, and in and around the city.

Masterbari, Valuka,Kaltapara, Mirjapur, and Gorai.

Agrabad, Baizeed, Fouzderhat, Charpatharghata, BSCIC, CEPZ, Chowmuhuny Kalurghat, Mansurabad and Nasirabad.

Source: Baseline survey

1.3 Annual Export of Textile & RMG The country’s textile industry has two-fold export pattern. It exports finished textiles directly to different countries of the world and indirectly also through RMG companies by supplying RMG with fabrics and yarns. The export of Ready-made Garments (RMG) started in the late 1970’s, and since 90’s the growth could be characterised as spectacular. Foreign exchange earning from export of RMG was only US$ 3.5 million in 1981 and has increased to US $ 12.5 billion in 2009-10.

Table-1.3: Export of RMG from Bangladesh (2004-05 through 2009-10) Year Total Apparel Export in Million US$ Total Apparel Export in Million Dozen

Woven Knit Total Woven Knit Total 2004-2005 3598.2 2819.47 6417.67 92.26 120.13 212.39 2005-2006 4083.82 3816.98 7900.8 108.82 165.02 273.84 2006-2007 4657.63 4553.6 9211.23 133.08 199.54 332.62 2007-2008 5167.28 5532.52 10699.80 147.43 241.6 389.03 2008-09 5918.51 6429.26 12347.77 169.60 290.83 460.43 2009-10 6013.43 6483.29 12496.72 172.80 292.70 465.5

Source: Export Promotion Bureau (EPB)

Table-1.4: Direct export of textiles (other than through RMG) Value in million US $

Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Hometextiles 156.14 165.25 257.56 291.39 313.51 539.28 Terry towel 61.18 77.53 106.38 112.88 132.57 157.07 Textile woven & knitted Fabrics 19.96 28.42 36.88 66.57 76.32 28.90 Total Textiles (except silk and other items of limited export)

237.28 271.2 400.82 470.84 522.4 725.25


11

1.4 Growth Rate Except for home textiles & terry towels, the export growth rate of Bangladesh textiles & RMG goods shows clear declining trend in the last 5 years; the double digit growth of RMG exports which was 23.11% in 2005-06 has fallen to very marginal level in FY 2009-2010.

Table-1.5: Growth (%) of RMG & Textile export over the last 5 years Item 2005-06 2006-07 2007-08 2008-09 2009-10

Woven RMG 13.50% 14.05% 10.94% 14.54% 1.60% Knit RMG 35.38% 19.30% 21.50% 16.21% 0.84% Growth RMG 23.11% 16.59% 16.16% 15.40% 1.21% Hometextiles 5.83% 55.86% 13.13% 7.59% 72.01% Terry towel 26.72% 37.21% 6.11% 17.44% 18.48% Textile fabrics (Woven & Knit Fabrics) 42.38% 29.77% 80.50% 14.65% (-62.13%) Growth of Textiles 14.30% 47.79% 17.47% 10.95% 38.83%


Growth Trend of Textiles & RMG Exports

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

2005-06 2006-07 2007-08 2008-09 2009-10

Years

The spectacular growth of the nation’s garmenting and textile businesses was blessed by both external as well as internal factors: the international trade policies and local cheap labour. Under the GATT-approved Multifibre Arrangement (MFA) the local RMG companies received preferential treatment from the USA (quota reservation) and European Union (GSP) and some other countries like Canada and Australia. To avail the competitive edge in the world markets, the traditional large suppliers/producers of apparels followed a strategy of relocating RMG factories to countries that were free from quota restrictions and at the same time had enough trainable cheap labour. Obviously, Bangladesh was exactly the best among ones they looked for.

In the initial 2 decades, Bangladesh also tried level best to make appropriate stepping favourable towards the situations and harvested the possible best success. The present situation, however, is different and the country is at the point of a bend to choice suitable strategy to revive its past double digit growth. The knowledgeable people/experts in the fields opine that in order to revive the growth the industry needs to enhance its competence in terms of quality, productivity, costs and product ranges.

1.5 Value Addition There is no reliable study or survey on value addition of RMG & textile sub-sectors. The stakeholders associations, industry leaders and some organizations occasionally quote/claim value addition of different subs-sectors without referring to any standard survey or researches. In our baseline survey, we have attempted calculating value addition (as shown below) for different sub-sectors based on cost and sales prices of selected products.

12

Table 1.6: Value additions to products of different types of surveyed enterprises (%) Category of Enterprises

Spinning Weaving Knitting Woven-dyeing

Knit-dyeing

Woven RMG

Knit RMG

Value Addition 36% 27% 11% 22% 19% 31% 29% Source: Baseline survey

1.6 Contribution to Economy The Textile & RMG industry has emerged as the highest export earner of the country and thus regarded as a major contributor to national GDP and other spheres of economic development Table-1.7: Contribution of Textile & RMG industry to various spheres of economy

National GDP National Export Export of Manufactured goods

Manufacturing Value Addition

Share in Global textile & Apparel Market

14.5% 81.59% 85.21% 40% A little over 2% Source: Derived from information of Bangladesh economic review-2009, EPB export statistics for July-June, 2010, Italian Trade Commission Report (Delhi), internet supplement s on Global reports on textile & apparel business

1.7 Employment The sector is largest employer next to agriculture and transport for providing employment to more than 4.2 million people, almost half being the females. Table-1.8: Employment features in Tex tile & RMG Sector

Major Category of Industry

Technologists

Non-technical

Staff

Workers Grand Total

Male Female Total

Skilled Unskilled Skilled Unskilled

Primary Textiles 4,445 93,915 458,744 119,429 317,568 104,073 1,094,179 1,098,624 Sweater 161 37,620 262,374 61,643 180,593 54,769 559,379 597,160 Garments (Knit & woven)

438 128,525 757,607 136,692 1,229,906 250,354 2,503,084 2,503,522

Others 600 22,231 3,142 652 2,225 681 66,101 29,081 Total 5,644 282,291 1,481,867 318,416 1,730,292 409,877 4,222,743 4,228,387

Source: DOT Survey of Textile Sector-2009

1.8 Compensation/Salary of the Workers The wages of the workers of different surveyed units have been averaged and shown below. Table-1.9: Average wages of workers consolidated per month (Basic + Fringe Benefit) in taka

Type of workers Spinning Weaving Knitting Woven-dyeing

Knit-dyeing

Woven RMG

Knit RMG

Skilled 4428 4697 4980 5266 5128 4858 4858 Semi-skilled 3588 3642 3700 4240 4268 3812 3768 Entry level 2216 2228 2420 2628 2608 1956 1956


The salary in dyeing units is higher because of higher health risks and worst work condition. Initial salary happens to be lower where tenure period is comparatively longer.

1.9 Transition to Higher Responsibility Position and Better Payment of Workers Promotion or better pay at entry level to semi-skilled happens to be higher where turnover of workers for job changes are also higher, as is obvious in RMG companies. Table-1.10: Percent of workers transiting to higher responsibility position with better pay Promotion Tyre Spinning Weaving Knitting Woven-

dyeing Knit-dyeing

Woven RMG

Knit RMG

Entry to Semi-skilled Label 13% 11.2% 14.7% 10.5% 10.3% 26% 23% Semi skilled to skilled level 5.5% 6.5% 6.5% 6.5% 6.5% 6.6% 6.5% Skilled labour to supervisor Level 1.65% 2.5% 2.5% 2.5% 2.4% 2.3% 2.4% 3Source: Baseline survey

13

1.10 Gender Issues Female participation in this industry is encouraging only when the macro aspect is considered, because they are 51% of the total employed manpower (ref. table-1.7), according to DOT survey. However, the functional tire analysis depicts a ridiculous image of women in this industry, reflecting their very poor status in the upper hierarchy of the employment. To textile & RMG industry they contributes maximum physical labour but occupy least privileged positions; there are only 0.87% to 9.92% female executives/officers, depending on nature of enterprises. Lack of technical education/training and pre-conceived social notions about females are the root causes of this effect.

Table-1.11: Females participation in Textile & RMG Industry

Category of Industry

Workers/Operators Officers/Executives Others (Assisting Staff) Male Female Male Female Male Female

Spinning 35% 66% 96% 4% 86% 14% Weaving 95% 5% 95% 5% 97% 4% Knitting 98% 2% 99% 1% 97% 3% Woven Dyeing 96% 4% 99% 1% 94% 6% Knit Dyeing 96% 4% 98% 2% 96% 4% Woven Garments 25% 75% 90% 10% 86% 14% Knit Garments 35% 65% 93% 7% 87% 13%


1.11 Social Compliance Issues The field survey team did not have the scope to conduct a full-scale audit of social compliance situations in the surveyed units. However, the field team observed the situation by keeping eyes open and by friendly interaction with people at work places. Furthermore, the team talked to some knowledgeable persons about compliance issues. The findings of the survey on this issue are furnished below in summarised form.

1.11.1 Compliance with national labour law Appointment Letter: Although formal appointment letter is issued to almost 100% officers/executives and lion share of the assisting staff, but a minority of the workers are lucky enough to get the same. Table-1.12: Average percent of issuance of appointment letter to employees in different enterprises

Type of staff/units Spinning Weaving Knitting Woven-

dyeing Knit-dyeing

Woven RMG

Knit RMG

Workers 9% 6% 5% 7% 6% 17% 13% Assisting Staff 72% 69% 62% 73% 68% 81% 77% Officer/Executives 100% 100% 100% 100% 100% 100% 100%


Payment style: : It was understood talking with the managers and workers that in between one fourth to third (29.76%) of the visited factories pay salaries/wages in instalments throughout a month instead of disbursing the payment within a particular period of the next month. And almost half of the companies frequently shift dates of payment of the salaries/wages. Except woven RMG companies, the majority of the surveyed units (58 to 83%) do not provide workers with the wage sheet containing payment details. 1.13: Distribution of the surveyed enterprises by providing Salary Sheets to workers

Type of units Spinning Weaving Knitting Woven-dyeing

Knit-dyeing

Woven RMG

Knit RMG

Total 33% 25% 17% 42% 25% 58% 42% Source: Baseline survey

Child Labour: In the light of official statements and documentation, the export oriented Textile & RMG industry seems free of child labour.

14

Forced Labour: The field survey team did not find any direct evidence of forced labour. However, a few factory workers spoke (off-the record) of isolated incidences of forced overtime duty (with payment), in particular during the days towards shipments.

Freedom of Association and Collective Bargaining: The surveyed units by and large discourage employees to bargain collectively.

1.11.2 Safety Issues In more than 90% of the surveyed units, the workers were not found using gloves and/or masks while handling sharp cutter, pointed metallic parts, chemicals, dyes, or any hazardous materials. There is little or no provision for training on the use of protective equipment for safety. Almost in two-third factories, fire extinguishers were to be not easily accessible. Aisles or passages were not marked at different sections of the factory. Often primary/secondary aisles were found blocked by the inputs of productions, cartons, loose /waste materials, etc. in different sections of the factory. In many of the factories electrical control panels were found blocked with various articles. Except for few units (8-10 out of 84), hardly evacuation plan is observable throughout the factory. However, many of the RMG factories have provision for emergency stair cases to face the fire hazards. On rare occasions alarming drills (trial/dummy run) are conducted to make workers aware of safe evacuation in the case of fire hazard or earthquake.

1.11.3 Health & Hygiene: • In most cases (around 82%), toilet facilities on the production floor are inadequate to cover all the

employees. There was exception for few large garments and textiles units. • Dirty toilets hardly had any soap and towels for use of the workers. Often drinking water tap or

containers were found very near to the toilets. • In the small & medium units, no doctor was found in attending during regular office time. The survey

team could not find first - aid boxes when asked to the factory supervisors. • Provision of facilities to the staff and workers in respect of medical leave (particularly for the female

employees during their pregnancy period), payment of salaries / wages during the leave period have not been specifically mentioned in the service rule in many of the factories.

1.12 Suggestions for increase of RMG Exports In order to increase exports of RMG products with improvement of relevant other issues, the following suggestions would be useful:

• Formulate comprehensive program to provide the export-oriented RMG and the backward linkage industry with skill & management training, value added services (e.g., testing, quality control, design, brand management, etc.), strategic marketing assistance, R&D services for product development and quality improvement, and compliances assistance.

• Formulate and implement a comprehensive scheme for workers training by involving the relevant stakeholders associations and the training providers like NITTRAD, BIFT & iART. Implementation of such program is likely to improve workers’ skill & efficiency through venue-based training will facilitate workers transition to higher responsibility with better pay.

• An effective advocacy program may be undertaken to facilitate undertaking a scheme/project jointly sponsored by the government and stakeholders associations for promotion of employment of the national labour force according to national law, with a special focus on women issues. More facility packages could be offered to female students for studying in the higher courses of education/training in NITTRAD, BIFT, IART and government textile colleges.

15

SECTION-2

SECTOR COMPETITIVENESS

2.0 Introduction To assess the present competitiveness of Bangladesh Textile & RMG Industry, the baseline survey has considered the issues such as quality, response time, design, product development, branding, capacity utilization, productivity, cost, trainability and relevant others. To collect data about these variables, the baseline survey has covered 84 enterprises, 12 from each sub-sectors like spinning, weaving, knitting, knit processing (dyeing/printing-finishing), woven processing, knit garments and woven garments units. The results are presented below along with a brief analysis.

2.1 Quality Issue There is no scope to use same quality indicators to understand the quality of products of different industrial categories covered under this survey. Depending on the of manufacturing, quality parameters also changes. We therefore are discussing the quality issues of different types of enterprises by sub-sectors.

2.1.1 Quality in Spinning While assessing the surveyed enterprises’ yarn quality in terms of Uster Statistics and trend of price adjustment over settled price due to quality claim, it appears that most of the spinning mills have to further improve yarn quality to enable export-oriented fabric manufacturing units to turnout more value added fabrics for garments manufacturers.

Quality in terms of Uster Statistics: Uster statistics take complex of quality parameters of yarns to classify them in order of quality merit by percent; lower the percent better the quality. A minor proportion of surveyed spinning mills (8%) are now turning out excellent quality yarn that corresponds to Uster statistics ≤ 5%. Product quality of a good number of spinning units (33%) corresponds to Uster statistics ≤25%. Nonetheless, the majority’s (58%) quality remains at or beyond 50% Uster statistics.

Table-2.1:Distribution of the surveyed spinning units by their yarn quality in terms of Uster Statistics Quality Grade (Uster Statistics Range) Average Small Medium Large Excellent ( within 5% ) 8% 0% 0% 25% Good (within 25%) 33% 25% 25% 50% Satisfactory (within 50%) 42% 50% 50% 25% Poor (beyond 50%) 17% 25% 25% 0%


The field team revealed that in spite of good demand in the market for fashion yarns, hardly the spinners go for its production. The respondents recognized their perennial weakness to control quality of fashion yarns. The causes seem lie partly in the design of the plants which is mostly for spinning of medium staple cotton fibres and partly due to lack of technical knowledge & experience needed for its process control.

Rejection & Replacement/Price Reduction of Supplied Yarn: The proportion of full rejection of supplied yarn (returning back to spinners without any payment) on ground of quality is not too high to mention. However, there is a prevailing culture of replacement of yarn, and depending on individual mills this happens from 2.5% to 10%- at least 2 times a year.

In most cases, below quality goods are finally accepted through price adjustment- a common practice prevailing in Bangladesh. Almost half of the units (42%) reduce 6-10% prices as penalty against the buyers’ claim due to deviation of quality, at least 2 times a year.

16

Table-2.2: Distribution of surveyed units by price reduction of yarn due to quality claim (at least 2 times a year) Replacement/Price Reduction Average Small Medium Large No price reduction 8% 0% 0% 25% Price reduction up to 5% 33% 25% 25% 50% Price reduction 6% to 10% 42% 50% 50% 25% Price reduction 11% to 15% 17% 25% 25% 0%


2.1.2 Quality in Fabric Manufacturing (Weaving & Knitting) Fabric Quality in terms of Density: Controlled Density uniformity of grey fabrics is an essential pre-requisite for shade perfection in wet processing. Density variation positively correlated with variation of gramage (i.e., gram per meter square of fabrics) which is again proportional to construction of a fabric. As is vivid from the data shown below, more than half of knitting and weaving units fail to keep variation of gramage/density within 5%. The large units usually do better than the small and medium ones, comparatively. It is worthwhile noting that gramage/density variation once originated in weaving/knitting cannot be eradicated in subsequent dyeing/finishing treatment, and remains as a potential cause to shade variation.

Table-2.3: Distribution of surveyed weaving and knitting units by the extent of their fabric density variation Gramage/construction Variation (Deviation from standard or set point)

Average Small Medium Large

Weaving Excellent (≤ 2%) 8% 0% 0% 25% Good (>2%to ≤ 5%) 33% 25% 25% 50% Satisfactory (>5%to ≤ 7.5%) 33% 25% 50% 25% Poor (>7.5%to≤10%) 17% 25% 25% 0% Alarmingly Poor (Above 10%) 8% 25% 0% 0% Knitting Excellent (≤ 2%) 17% 0% 25% 25% Good (>2%to ≤ 5%) 25% 25% 0% 50% Satisfactory (>5%to ≤ 7.5%) 25% 25% 25% 25% Poor (>7.5%to≤10%) 25% 25% 50% 0% Alarmingly Poor (Above 10%) 8% 25% 0% 0%

Rejection due to Major Fabric Faults: Some 58% of the weavers and 50 % of the knitters reported that from 5% to 20% of their products were rejected by dye houses/RMG companies for having fabrics defects like hole, missing picks, spots, pills, selvage distortion, non-conformation to construction/design/texture, etc. It was not feasible to dye/finish those fabrics for export-oriented garments. This happens to them more than twice a year.

Table-2.4: Distribution of surveyed units by rejection of fabrics due to fabric defects/faults (at least twice a year)

Rejection due to fabric faults Average Small Medium Large Weaving No rejection /objecting due to fabric fault (0%) 42% 25% 25% 75% Accepted level of rejection/objection due to fault (5%) 17% 0% 25% 25% Unacceptable level of rejection/objection (>6 to 10%) 17% 25% 25% 0% Alarming level of rejection (11 to 20%) 17% 25% 25% 0% Knitting No rejection /objecting due to fabric fault (0%) 50% 25% 50% 75% Accepted level of rejection/objection due to fault (5%) 17% 0% 25% 25% Unacceptable level of rejection/objection (>6 to 10%) 17% 25% 25% 0% Alarming level of rejection (11 to 20%) 8% 25% 0% 0%

Price Reduction of Supplied Fabrics: Price reduction against quality deterioration is a very common practice with the products of weaving and knitting companies. The small and medium enterprises suffer most

17

from this type of problems. On average, 50% of weavers and 42% knitters compromise 10% to 15% prices for quality reasons, at least 2 to 3 times a year. The smaller units are usually the worst sufferers.

Table-2.5: distribution of surveyed units by mode of replacement/Price Reduction of woven and knit fabrics Replacement/Price Reduction Average Small Medium Large Weaving No price reduction 8% 0% 0% 25% Price reduction up to 5% 42% 25% 25% 75% Price reduction 6% to 10% 33% 50% 50% 0% Price reduction 10% to 15% 17% 25% 25% 0% Knitting No price reduction 17% 0% 25% 25% Price reduction up to 5% 42% 25% 50% 50% Price reduction 6% to 10% 25% 50% 0% 25% Price reduction 10% to 15% 17% 25% 25% 0%

2.1.3 Quality in Wet Processing of Fabrics (Woven & Knit Dyeing) Most dyeing houses need to improve their performances for minimizing shade variation and enhancing colour stability. It is obvious from the table presented below that the minority of the surveyed units dyes fabrics with low shade variation and excellent colourfastness. On the other hand, lion share of the units surveyed were found to process fabrics with medium to high shade variations.

Table-2.6: Distribution of the surveyed wet processing units by shade variation of the fabrics they process Shade Variation Average Small Medium Large Woven Dyeing High 33% 50% 25% 25% Medium 50% 50% 75% 25% Low 17% 0% 0% 50% Knit Dyeing High 25% 75% 0% 0% Medium 50% 25% 50% 75% Low 25% 0% 50% 25%


Table-2.7: Distribution of the surveyed wet processing units by colourfastness of processed fabrics Colour Fastness (Washing, rubbing & crocking) Average Small Medium Large Woven Dyeing Excellent (5) 0% 0% 0% 0% Good to Excellent (4-5) 8% 0% 0% 25% Good (4) 17% 0% 25% 25% Fair to Good (3-4) 42% 50% 25% 50% Fair (3) 17% 25% 25% 0% Poor (2) 8% 25% 0% 0% Knit Dyeing Excellent (5) 0% 0% 0% 0% Good to Excellent (4-5) 8% 0% 0% 25% Good (4) 42% 25% 50% 50% Fair to Good (3-4) 33% 50% 25% 25% Fair (3) 8% 0% 25% 0% Poor (2) 8% 25% 0% 0%


18

Achievement of Quality in Single Trial: Almost all the companies replied that there were rare cases for them to achieve 90 to 100% target quality in single trial; almost half of them usually achieve some 75% to 85% quality in single trial. However, almost half of companies achieved even less than 75% quality in single trial. Failing to achieving desired quality in single trial is indicative of higher wastage and defects, which in turns pulls down productivity and raises production cost up. It is, therefore, essential to find the other causes of higher failure to attain quality and matching technical assistances should be offered.

Table-2.8: Distribution of companies by achievement of quality in single trial Percent of achieving Quality in Single Trial Average Small Medium Large Woven Dyeing > 95% to ≤100% 0% 0% 0% 0% >90% to ≤95% 0% 0% 0% 0% >85% to≤90% 0% 0% 0% 0% >80% to ≤85% 25% 0% 25% 50% >75% to ≤80% 25% 25% 25% 25% ≤75% 50% 75% 50% 25% Knit Dyeing > 95% to ≤100% 0% 0% 0% 0% >90% to ≤95% 0% 0% 0% 0% >85% to≤90% 0% 0% 0% 0% >80% to ≤85% 25% 0% 50% 25% >75% to ≤80% 25% 25% 25% 25% ≤75% 50% 75% 25% 50%


Rejection of Processed Fabrics due to Major Faults: Some 31% of woven fabric dyers and 42% knit fabric dyers reported that annually several times their products faced high to very high level objections/rejections from concerned buying houses or RMG companies for having fabrics defects (e.g., hole, missing picks, spots, pills, selvage distortion) gramage variations, shade imperfection, higher shrinkage percent, low colourfastness, improper finishing, etc. However, most of the large units reported that their goods were seldom rejected for high scale of defects. Table-2.9: Distribution of surveyed dyeing units by rejection of fabrics due to processing defects

Level of Rejection/Objection due to fabric faults Average Small Medium Large Woven Dyeing No rejection /objection due to fabric fault (0%) 33% 25% 25% 50% Up to 5% fault- (usually fall within accepted level of rejection/objection ) 25% 25% 25% 25% High level of rejection/objection (>6 to 10%) 25% 25% 25% 25% Very high level of rejection /objection due to fabric fault (11-20%) 17% 25% 25% 0% Knit Dyeing No rejection /objection due to fabric fault (0%) 50% 25% 50% 75% Up to 5% fault- (usually fall within accepted level of rejection/objection ) 17% 25% 25% 25% High level of rejection/objection (>6 to 10%) 25% 25% 25% 0% Very high level of rejection /objection due to fabric fault (11-20%) 8% 25% 0% 0%


Price Reduction due to Quality Reasons: Often the dye houses make price reduction over negotiated job order prices for deterioration of quality of goods with respect to reference parameters. On average, some 25% woven processors and 17% knit processors among the surveyed ones were penalised more than 15% prices Some From this type of problems, the small and medium enterprises suffer more than the lar5ger ones.

Table-2.10: Distribution of surveyed dyeing units by price reduction of processed fabrics

19

Price Reduction Average Small Medium Large

Woven Dyeing Price reduction up to 5% 8% 0% 0% 25% Price reduction 6% to 10% 33% 25% 25% 50% Price reduction 10% to 15% 33% 25% 50% 25% Price reduction above 15% 25% 50% 25% 0% Knit Dyeing Price reduction up to 5% 17% 0% 25% 25% Price reduction 6% to 10% 33% 25% 25% 50% Price reduction 10% to 15% 33% 50% 25% 25% Price reduction above 15% 17% 25% 25% 0%


2.1.4 Quality in Garmenting Level of Quality and Fashions: Comparative price assessment (in particular the FOB price of order) is one of the ways (indirect way) to understand whether garments companies produce higher quality and or fashionable assortments. According to the baseline survey, Bangladesh Garmenting on average positions at bottom to middle-bottom pile of the market in terms of price. This price ranged products do not claim high quality norms. Hardly one or two of the surveyed units got high priced orders, but that seems rather exceptional because of non-continuity of such orders. For getting high FOB price orders quality standards have to be improved.

Table-2.11: Distribution of surveyed RMG companies by prices of products Prices of products Average Small Medium Large Woven Garments

Very high (FOB price in excess of US $ 360 per dozen) 0% 0% 0% 0% High (FOB price in between US $ 240 to 360 per dozen) 8% 0% 0% 25% Medium(FOB price in between US $ 120 to 240 per dozen) 17% 0% 25% 25% Low to medium ( in between US $ 42 to 120 per dozen) 25% 25% 25% 25% Low(FOB price less than US below $ 42 per dozen) 50% 75% 50% 25% Knit Garments Very high (FOB price in excess of US $ 360 per dozen) 0% 0% 0% 0% High (FOB price in between US $ 240 to 360 per dozen) 8% 0% 0% 25% Medium(FOB price in between US $ 120 to 240 per dozen) 8% 0% 0% 25% Low to medium (between US $ 42 to 120 per dozen) 17% 0% 25% 25% Low(FOB price less than US below $ 42 per dozen) 67% 100% 75% 25%


Remnants: Another indirect way to understand both quality and efficiency aspects of garments is to study the percent of remnants which here has been meant to understand the ratio (in percent) of fabrics cut to fabric shipped. Increased remnants is an indication of precision lacking in terms of measurement/marking and cutting of fabrics, which leads to hiking of wastage and deterioration of quality of garments- causing cost of production to increase finally. Although one-third (33%) surveyed garments reported of having remnants excellently controlled within 3%, and another 42% within 5%, but one fourth (25%) companies reported of having remnants over 5%.

Achievement of Quality in Single Trial: Failing to achieve desired quality in single trial is indicative of higher defects, more wastages and reworking/repairing- all this causes loss of production time and increase of production cost. In a tight lead-time, such kind of failure immensely contributes to stocking of ready garments’ lots. This is the case often happening with many export-oriented garments in Bangladesh. Although stock lots happens sporadically with these garments, but once it happens it causes several dimensional losses. The stock lots are either through troublesome efforts exported at much lower prices or dumped to local market.

20

This dumping not only cuts export proceeds but trouble the domestic market of local ready-made garments with uneven competition.

It comes that almost half of the surveyed garments companies achieved less than 80% target quality in single trial. Some 21% of the surveyed garments achieve less than or equal to 75% target quality in single trial. None of the companies reported of achieving greater than 95% quality at single trial. Only 4% achieve 90 to 95% quality at single trial. It is essential to investigate the causes of higher failure in attaining quality, and matching technical assistances should be offered thereupon.

Table-2.12: Achievement of quality in single trial Percent of achieving Quality in Single Trial Average Woven Garments Knit Garments > 95% to ≤100% 0% 0% 0% >90% to ≤95% 4% 8% 0% >85% to≤90% 29% 33% 25% >80% to ≤85% 17% 8% 25% >75% to ≤80% 29% 25% 33% ≤75% 21% 25% 17%


Rejection of Garments due to Faults: Rejection rate due to quality non-compliances (garments defect) is quite high in Bangladesh. Some 21% of the surveyed units reported that they had more than 5% rejection (6% to 10%) of ready goods in the last year, while another 17% garments reported of 11-17% rejections by their buyers/buying houses in the same period. Finally, a part the goods they sold as stock lots and the rest as wastage (so called Jhute, locally) in the local market. Among the sufferers, there were all types of units-large, medium and small. The most occurring garments quality faults or defects are:

• Sizing defects (wrong gradation of sizes, difference in measurement of the parts of the assortments)

• Sewing defects (open seams, wrong stitching techniques used, wrong colour threads, miss out of stitches in between, creasing of the garment, erroneous thread tension and raw edges, etc.)

• Stitching defects (Dropped stitches, broken stitching, beyond norm seam slippage) • Colour defects ( shade non-compliances, low colour fastness) • Trimming/accessory defects (faulty zippers, irregular hemming, loose buttons, raw edges, improper

button holes, uneven parts, label missing, inappropriate labels etc.) • Fabric defects (gramage variation, higher shrinkage/elongation in washing higher pilling, poor

abrasion resistance, low crease recovery of fabrics, etc.) • Dirt/contamination/spots, etc. • Finishing defects (wrong ironing and packing)

Price Reduction of Supplied Garments: Apart from stock lots, price reduction against claim of quality is a very known business phenomena in the export oriented RMG business in Bangladesh. The small and medium enterprises suffer most from this type of problems. Among the surveyed units, 64% of woven garments and 75% knit garments compromised their prices to the extent of 5 to 15%, at least once a year, against the claim of buyers. The survey revealed that some 8% of units even cut more than 15% of their negotiated prices for quality claim.

2.1.5 Challenges & Barriers to Quality The respondents identified a range of issues as challenges and barriers. Many of those relates to common operational hurdles that have to be encountered through providing knowledge exposure and training. Some issues are to be met with investment (e.g., improvement of technology and shed condition) that depends not

21

only on company’s financial capability but also perception aspect, attitude and vision. The companies suffer from testing and information support also. Table-2.13: Distribution of the enterprises by their opinion about challenges and barriers to quality

Quality Problems Spinning Weaving Knitting Woven Dyeing

Knit Dyeing

Woven Garments

Knit Garments

Use of low/substandard quality of raw material

75% 75% 58% 92% 83% 17% 25%

Use of low quality dyes and chemicals/sizing materials

- 25% - 75% 67% - -

Use of low technology machines from less developed sources or age old machines

17% 42% 58% 50% 58% 33% 42%

Lack of properly trained workers & executive

67% 75% 33% 67% 58% 50% 33%

Unsatisfactory level of maintenance 33% 67% 50% 42% 33% 25% 25% Uncontrolled shed conditions (Humidity, temperature, pollution, etc.)

67% 83% 33% 33% 33% 8% -

Others (no nearby testing facility or information& bureaus services, lack of reliable standards, etc.)

58% 100% 42% 75% 75% 33% 42%


2.2 Marketing Skill 2.2.1 Communication for Order Procurement

The survey findings do not provide scope to characterise Bangladesh textile & RMG companies much efficient, as a whole, in business communication for firsthand order sourcing. Only a tiny minority of the surveyed companies (12.5%) reported that they tried to contact core buyers’ office from where original Letter of Credit (L/C) is issued but could not successfully or continually establish business relation. An exceptional RMG unit under the survey reported that by directly communicating they managed to have an order in the last season from a European buyer who on trial basis gave some orders issuing a direct master L/C.

Recently a number of RMG companies (17% of the surveyed RMG units) are getting a part of their orders from international buyers (e.g., H&M, Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, Uniqlo and Li & Fung. etc.) through their local offices in Dhaka. Similarly, they procure orders from Hong Kong & Singapore based international agents/brokerage houses (whom often the local RMG companies mistakenly take for buyers) who mostly stay at 5-Stars hotels in Dhaka prior to each season, and often assign some local buying houses for supervision of order processing. Actually, in the both cases the RMG companies mostly participate in the bid of invitation rather than offering package of products (with specified bargain/negation options) to procure orders.

Some textile processing units reported that occasionally they export a part of their products directly to the international markets but they generally communicate the small buyers, often the retail houses or small-scale importers. For supply to export-oriented RMG companies, most of the textile companies communicate subsequent processors or garments or local brokers. Often the role of local buying house is quite significant.

In between textile spinning and knitting & knit garments, there is a good presence of local brokers to catalyse the supply and deal making. Weaving and knitting companies generally provide subcontracting services and work for job orders and as such they mostly communicate garments and local buying houses (assigned mainly for supervision of order processing of RMG companies). Almost similar is the case with the most of dyeing houses covered under the survey. Yet there are few efficient companies those trying to sell their products rather than simply job order processing; they try to communicate directly international buyers’ office or international brokers.

22

Least or no efforts for business development, customer relationship, customers’ value creation, etc. have characterised Bangladesh textile & RMG marketing largely passive for simply selling products rather than marketing, in real sense.

Table- 2.14: Distribution of surveyed companies by the modality of communicating/dealing for marketing of product or order of procurement (multiple answers)

Type of Enterprises Directly international buyers’

Local buying house

Fabric manufacturers

Fabric processing houses

RMG companies

Brokers

Spinning 0% 67% 50% 8% 83% 25% Weaving 8% 83% - 42% 75% 17% Knitting 0% 92% 8% 83% 25% Woven Dyeing 17% 100% - 100% 75% 17% Knit Dyeing 8% 100% - 100% 75% 8% Woven Garments 17% 100% - - - 67% Knit Garments 17% 100% - - - 75%


2.2.2 Participation in On-line Bidding for Order Procurement Speed-to-market is now a very important factor to procure orders in the international market and ICT is there an essential tools. Now online bidding is possible with the core buyers through ICT. Bidding through ICT saves time and cost both and more potential to earn confidence of buyers. The field survey, however, did not find any company participating in online bidding through ICT. The issue seems yet to be popularised in Bangladesh through workshop/seminars.

2.3 Order Response Time (i.e., Lead-time) Bangladesh clothing exporting enterprises take longer time for both sample and production. When for highly fashionable assortments ( the price of which happens to be higher) there are 6 to 8 seasons in North America & some parts of Europe, Bangladesh only has the ability to respond no more of 2 to 3 seasons for prolonged lead times. This is one of the reasons, apart from design and skill insufficiency, that Bangladesh remains at the bottom pile of the market (in terms of prices) for addressing only the generic orders. The extended lead times are for heavily dependence on import of raw materials, internally less efficient supply chain due to low productivity of textiles and inefficient joint monitoring of order processing, slow handling/transportation of goods due to poor condition of road & traffics, less port efficiency, lack of deep seaport facility, etc.

23

Table-2.15 Average lead-times for different types of surveyed enterprises Type of Enterprises *Sample

Preparation & Conformation from local concerns/authority

Average production lead time (with in-house stock of raw materials)

Average lead time (Sampling + outsourcing raw material locally + Production process+ transportation to site/port)

Lead time for outsourcing raw materials from third country

Spinning 5 days 7 days 12 days 30-50 days required for import of raw cotton

Weaving (grey or with coloured yarn)

7 days 21 days 37 days **10-45 days for import of yarn

Knitting (grey or with coloured yarn)

7 days 17 days 33 days **10-45 days for import of yarn

Woven Dyeing 7 days 15 days 49 days 35-50 days grey fabrics Knit Dyeing 7 days 15 days 47 days - Woven Garmenting 7 days 26 days 84 days 35-60 days for finished fabrics Knit Garmenting 7 days 25 days 81 days

*Another 7-10 days are to be added if sample needs to be confirmed from foreign countries. Further time is to be added for washing & shipment which are another 13- 17 days. Thus for three stage operations (yarn to apparel) average lead times are around 100 days, i.e., 80 to 120 days depending on efficiency/skill of companies. ** Lead time for import becomes unusually short when imported from India through land port.

2.3.1 Buyers View on Response Ability of Local Enterprises

The officials/executives working for internationally reputed buyers (e.g. Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H & M, Uniqlo and Li & Fung., VF Asia, GAP, Mondial, etc,) or their local agents are of the opinion that Bangladesh RMG have to be more efficient in dealing with the supply chain. According to them, out of 4,000 to 4,500 RMG companies only 200 to 250 can quickly respond to buyers’ orders. For example, the buyers are now pressing to shorten lead times from 3 months to 2.5 months- and even to 2 months or below- for some assortments. From the above shown average lead-time features in Table-2.15, it is clear that only the minority will be able to comply with this properly.

Buyers are seemingly in favour of giving very short lead period for cutting and sewing –just 12 to 15 days instead of average 25-26 days. On the other hand, they are curbing the order into smaller sizes. For example instead of previously given large orders like 50,000 or 15,000 dozens now trend is increasing for 12,000 to 3,000 dozens; orders for fashion products happens to be smaller but with higher price premium.

Buyers now want the local RMG industry to be quick responsive to orders within the short lead-time. It has to be more efficient with the issues like design development/sourcing, sampling support, backward supply chain, productivity, and in time shipment to cut down lead-time. The industry should thrive more for getting quality right at first time. Also the RMG has to be considerably flexible with the product range; because fashions now change with time & seasons quicker than ever before. The production line and the production management have to be very adaptive to the orders of multiple packages. Efforts for local design development and design transfer ability to add more value in the manufacturing should also be expedited. Training and support service for augmenting the value chain are must, and experiences of globally reputed companies through expert assistances are highly essential. Above all, there is no other alternative to implement social and environmental compliances for getting higher prices.

2.4 Product & Design Development Ability Product development: The survey on the sample enterprises reinforces the prevailing perception that Bangladesh textile & RMG companies are primarily basic product manufacturers, having almost no or least visible ability for new product development. The very marketing efforts lie in earning confidence through highlighting their skill to produce basic products rather than offering new or fashion products to buyers.

Bangladesh export-oriented spinning mostly produces low to middle count weft yarns (7 to 30Ne carded & semi-combed) having good demand for export oriented RMG units. Only 1 among the 12 surveyed spinning

24

units reported that they were producing melange yarn that has good market demand for sweater and knit assortments. In spite of increasing demand of fashion yarns, the spinners are not enthusiastically responding due to their lack of systematic product development programs, for which they need proper training.

Bangladesh export-oriented weaving units produce fabrics of limited textures or constructions, usually different textures of plain & twill weaves, and less frequently sateen weave. The production of fabrics with crepe, pile/knotted, dobby & Jacquard weaves, leno (gauge) weaves are quite limited. Many units in spite of having dobby and jacquard with looms cannot produce attractive texture having good demand in the market, due to lack of skill or training. Similar is the case with many knitting units which produce mainly the generic textured fabrics on simple single or double jersey circular machines or the most common textures used for sweater are produced in warp knitting machines. But they hardly produce high value added fabrics such as attractive purl or fashion rib knit stitch, terry knit, velour knit, delicate pile knit/ fleece knit fabrics due to lack of training.

The printing and finishing houses infrequently process some new products with buyers’ orders as per nominated design. Almost similar is the case with RMG companies. Except for few, bulk of the medium to large garments just ornaments the buyers-supplied samples with some styles- which they often assume for own capability to produce new products. None of the surveyed units, irrespective of the sub-sectors, had complete product development departments or wings equipped with product development executives/expert, product development schemes and relevant piloting projects. If one had product development department and schemes that usually is lacking expert, on the other hand, in some units having experts but without effective scheme or piloting projects.

Table-2.16: Distribution of surveyed companies by their ability to develop new products (accepted by buyers) Type of Enterprises Yes No A little (Very limited) Spinning 8% 75% 17% Weaving 8% 75% 17% Knitting 0% 92% 8% Woven Dyeing 17% 66% 17% Knit Dyeing 0% 83% 17% Woven Garments 8% 75% 17% Knit Garments 0% 83% 17%

In-house Design Development Facility: Lion share of the surveyed units do not have design development facility (lab/equipment), experienced or trained designers and design development scheme together. A good number of garments units have styling capacity-which is often mistaken for design capacity. A few dyeing units have considerable print design development facility; they mostly work for transfer of paper design to fabrics but do not consistently develop own designs. On the other hand, a few garments’ have just CAD labs for partial improvement of design features. None of the surveyed units was found having complete design facility, qualified designers and sustainable design development programme- all together.

25

Table-2.17: Distribution of surveyed units having design development facility & scheme/program. Type of Enterprises Yes No Partial (Very Limited) Spinning 0% 92% 8% Weaving 0% 83% 17% Knitting 0% 92% 8% Woven Dyeing 17% 66% 17% Knit Dyeing 0% 83% 17% Woven Garments 0% 83% 17% Knit Garments 0% 83% 17%


Sources of Design: Usually buyers or their agents supply designs to the RMG companies and often dictates or advises to procure those from nominated sources. Even the companies those can partly develop design also have to use buyers’ supplied/selected designs. Thanks to lack of copyright compliances, many textile enterprises copy design of popular products, whenever arises strong necessity.

Table-2.18: Distribution of surveyed units by sourcing of designs (partly or fully sourcing) Type of Enterprises In-house

development Buyers or the agents supply

*Procure from other sources with buyers approval

Copy from popular products

Spinning - 17% 100% Weaving 8% 25% 17% 100% Knitting 0% 33% 8% 100% Woven Dyeing 17% 25% 17% 100% Knit Dyeing 8% 25% 17% 100% Woven Garments 0% 83% 17% - Knit Garments 0% 92% 8% -

*From institutes/experts of foreign countries, other local companies, from different manuals/catalogues, etc.

2.5 Branding None of the surveyed garments or textile companies has so far been able to create any brand in the international market; for their products they use the etiquette and label of the companies that give them orders. However, some 25% of surveyed spinners, 17% weavers and 25% of the woven processor companies claimed during the survey that they had branded some of their products successfully in the local market.

2.6 Capacity Utilization According to the respondents, the existing erratic power supply and shortage/low pressure of gas is the main cause of 10-20% lower capacity utilization than could be achieved. They reported that averagely the capacity utilizations of textile units was at least 10-15% higher (than what is shown below) in 2 years back.

Apart from energy related problems, increased machine downtime for skill deficiencies in operational & maintenance areas and lower procurement of orders are the other causes of low capacity utilization. The respondents believe training on total productive maintenance, stronger marketing, and energy savings/recycling could help increasing capacity utilization.

26

Table-2.19: Capacity utilization (CU) of different sub-sectoral enterprises under the survey Type of Enterprises CU in terms of Machine

100*(Machines in operation/Machine installed)

Cu in terms of production 100*(Actual production/Rated production)

Spinning 94.01% 76.77% Weaving 88.5% 63.11% Knitting 90.52% 73.28% Woven Dyeing - 67.77% Knit Dyeing - 69.18% Woven Garments - 71.3% Knit Garments - 73.6%


2.7 Labour Productivity The respondents opined that there is a scope to enhance the labour productivity level currently achieved. According to them improvement in labour productivity can result from balancing size and composition of the work force (rationalized setup), all sorts of training to ensure best work flows adjusted over time, and work incentives. And of course timely capital investment needed for more efficient equipment, modernization of plants and recurring investment for procuring productivity support services/schemes including relevant software from experts. Table-2.20: Average labour productivity of the surveyed enterprises

Type of Enterprises Spinning Weaving Knitting Woven Dyeing

Knit Dyeing Woven Garments

Knit Garments

Labour productivity (Per Person-hour)

1.05 kg yarn

5.30 meter fabric

2.19 kg 6.6 meter

1.32 kg 0.09 dozen

0.11 dozen


2.8 Cost & Value Addition Cost data were collected at the time when the whole manufacturing is on the verge of reviving from the turmoil due to abrupt change in prices of cotton. It was difficult to segregate which costs belong the worst period and which comparatively better over the last 6 months. The averaged sale prices and cost figures are shown below.

27

Table-2.21: Sales prices and cost break-up of different common products of category of enterprises Sl. No.

Items Sales Price and Cost by Type of Products Yarn

(Cotton yarn 26-30 Ne Knit)

Grey Woven Fabric

(Cotton Twill)

Grey Knit Fabric

Finished Woven Fabric

Finished Knit Fabrics

Woven Garments

Knit Garments

A Sale Prices 261.92 72.09 289.94 123.22 387.97 3,994 2,188.78 Unit (1 kg) (1 metre) (1kg) (1 Meter) (kg) (Dozen) (Dozen)

B Product Cost 216.47 65.83 268.04 113.46 345.99 3379.66 1902.51 B.1 Cost of Raw

Materials 161.76 48.63 258.5 72.17 272 2,304.22 1,219.78

Dyes & Chemicals/Sizing Materials/ Trimmings

- 3.52 0 22.17 40.22 424.89 314.44

B.2 Wages & Salary 10.08 2.27 4.04 2.73 7.61 400.33 215.89 B.3 Water, Power &

Fuel/lubricant 7.55 0.77 0.97 3.29 6.00 29.33 14.31

B.4 Store & Spares 1.78 3.98 0.71 1.54 1.74 22.56 8.84 B.5 Depreciation 13.38 3.59 2.02 3.83 8.16 48.89 42.44 B.6 Financial

Expenses 18.39 0.81 1.16 4.61 7.92 61.89 47.78

B.7 Sales & Marketing expenses

0.63 0.26 0.23 0.94 0.63 27.33 13.47

B.8 VAS Expenses 0.34 0.69 0.08 0.67 0.91 24 11.06 8.9 Others 2.56 1.31 0.33 1.51 0.8 36.22 14.5


There is a range of formula for added-value calculation. Here we have used a simple formula as shown below: Value Addition = Sales revenue- (cost of various inputs used and part of the conversion cost including Dyes & chemicals and utility. The Cost of utility has been assumed to be 65% of power, water, fuel and lubricant bill.

Table-2.22: Added value of different products (generic products) of different types of surveyed enterprises Items Sales Price and Cost by Type of Products

Yarn

Grey Woven Fabric

Grey Knit Fabric

Finished Woven Fabric

Finished Knit Fabrics

Woven Garments

Knit Garments

Sale Prices 261.92 72.09 289.94 123.22 387.97 3,994 2,188.78 Unit (1 kg) (1 metre) (1kg) (1 Meter) (1kg) (1Dozen) (1Dozen) Cost of Raw Materials 161.76 48.63 258.5 72.17 272 2,304.22 1219.78 Dyes & Chemicals or Sizing or Trimmings - 3.52 - 22.17 40.22 424.89 314.44 Water, Power, Fuel & lubricant 7.55 0.77 0.97 3.29 6.00 29.33 14.31 Added value 95.25 19.44 30.81 26.74 71.85 1,245.83 645.26 Percent Value added 36% 27% 11% 22% 19% 31% 29% Source: Baseline survey

28

2.9 In-house Training The survey reveals that the industry is largely to upgrade skill of respective operatives and executives. Not only the case is that most of the surveyed enterprises lack in-house training facilities/programs, even what they have is rated mostly poor by themselves. The poor rating was due to lack of professional qualified trainers, weak training program (irregular courses and covered only workers), lack of teaching/training aids, no systematic training needs assessment or evaluation program, no follow up and feedback intervention, no corollary relation between training and benefits in terms of cash or kind, etc. Table-2.23: Distribution of surveyed enterprises by status of in-house training

In-house training Spinning Weaving Knitting Woven Dyeing

Knit Dyeing

Woven Garments Knit Garments

Yes (Good) 8% 0% 0% 8% 0% 8% 0% Little (Poor) 17% 8% 8% 17% 8% 25% 17% No 67% 92% 92% 64% 84% 58% 75%


2.10 Support Services The respondents expressed their opinions on needs of various support services essential for quality improvement, productivity enhancement, product flexibility, cost efficiency, marketing skill, etc.

Table-2.24: Distribution of surveyed enterprises by the opinions about support services needed Type of Enterprises Training High value

Testing & accreditation

Information & research services

Productivity services

Design & product development

Deal making & business negotiation

Spinning 42% 25% 100% 17% 33% 33% Weaving 50% 75% 100% 25% 67% 42% Knitting 67% 67% 100% 17% 75% 50% Woven Dyeing 67% 67% 100% 42% 75% 67% Knit Dyeing 50% 75% 100% 50% 75% 50% Woven Garments 50% 75% 100% 83% 92% 25% Knit Garments 58% 83% 100% 92% 92% 33%


The respondents imposed importance on effective delivery of these services with sustainability. One third of the respondents preferred cluster of competent technical & research centres in different industrial pockets where they could have accessed to need based multiples services of international standards. Some of them showed interest for undertaking joint research & development program with institutions.

2.11 Ways to Enhance Sector Competitiveness • The industry should thrive more for increasing labour productivity, minimizing cost, squeezing production

lead-time, avoiding rejection of goods/wastage or price reduction, and stock lots. So, an extensive training scheme on quality management (quality control, assurance and improvement), productivity improvement/lean manufacturing, efficient costing, and Enterprise Resource Planning (ERP) issues could be taken up for the executives/managers of the RMG & textile companies.

• Assistance package can be offered through training and bureau services so that individual RMG companies can develop speedy communication with the buyers directly, negotiate price efficiently, establish sustainable customer relationship, source inputs efficiently and acquire the skill to be very responsive in processing regular smaller orders as well as orders of fashion products within buyer specified lead-time.

29

• Technical assistance package could be formulated and offered in the form of piloting projects for product development, design development & design transferability, and for development & promotion of branding of local RMG products in the international market.

• Intervention could be designed to strengthen local Institutional capacities for providing the industry with relevant training and various support services/assistances for communication, international bidding through ICT, order processing, design sourcing and development, product development, branding, efficient costing, etc. throughout the value chain. In this connection, the assistances of globally experienced experts and exchange of knowledge & experiences with best practicing institutions/centres are essential.

30

SECTION-3

SERVICES OF TECHNICAL CENTRES

3.0 Introduction The respondents of the surveyed textile & RMG enterprises, industry leaders, buyers, and knowledgeable persons want efficient institutions or centres to grow not only centrally but at large cluster/pocket level areas too so that enterprises can have wider & easier accessibility to the services. They want to see efficient centres capable of providing R & D, information and value added services to different textile and garmenting enterprises. They prefer existing institutional capacities be revamped and used in catering need based services to the industry- professionally, at per international standards.

3.1 Existing Technical Institutes and their Capacity & Services There are institutions like NITTRAD, BIFT, iART, a number of public educational institutions, and recently grown private universities to provide textile education and/or training services. NITTRAD, Textile College and Bangladesh Standard & Testing Institute (BSTI) provide testing services, at reasonable costs. All of them provide cater their services at own wind i.e., at site. The enterprise/industrial units locating in the remote clusters/pockets have to take troubles to travel long way for availing this service. There is no institution or centre to provide or promote bureau services and research/R& D services for textile & RMG companies. Although NITTRAD is supposed to prepare itself to provide research and design services to the industry but it will not be able to start it soon- as it needs to develop own staff with international experiences.

Table-3.1: Services provided by existing Textile & RMG institutions Name of Intuitions/ Organizations

Main focused area related to textile & RMG

Services Education

*Training Testing Design or product development services

Research & Develop-ment

Information services

Consultancy/Bureau services for productivity & quality improvement

Technical Seminar /Professional Conference

NITTRAD Textile Yes Yes Yes No No No No Occasionally BIFT Apparel fashion

& technology Yes Yes No No No No No Occasionally

iART Apparel Research & Technology

No (In

future)

Yes No No No No Yes (very limitedly)

Occasionally

Institutes of DOT

Textile Yes No No No No No No Occasionally

BSTI Testing No No Yes No No No No Occasionally Private Universities

Textile Yes No No No No No Occasionally

Textile College Textile Yes No Yes No No No No Occasionally As evident from above that the present institutional capacities are too little to address the problems of various components of textile and RMG industry needing assistances/services in the areas of training, testing, design, informational bureau services, product development, productivity, etc. Institutes with good R&D and innovation competence could form partnership relationship with the industry to jointly share results of R&D. On the other hand, Bangladesh industrial pockets are often a mix of different textile & RMG units and even there are many units having in-house mix of different capacities (e.g., the composite nature of units accomplishing both textile and garmenting operations). However, there are neither free central services nor any bureau services available, presently. So, designing and implementing cluster of competent technical and research centres with collaborative efforts appears to be a demand driven thought in view of overall growth dynamics of Bangladesh textile & RMG industry towards international upper market pile. For developing effective bureau service providers or facilitating services of technical service centres, institutional bases are to be built up. Initially, strengthening NITTRAD, BIFT & iART (and also the 4 government textile colleges can be included) and also

31

streamlining their joint efforts to provide services bureau and research services can be very efficient and cost effective approach. Once their services will be popular, private service bureau providers will come into play at cluster level too.

3.2 Interventions needed to Strengthen Existing Institutes for Technical Service Providing 3.2.1 Equipment & Lab Facility

Overall condition of equipment and laboratory facility in the textile & RMG training/education institutions are to be improved further. In terms of volume of equipment and lab space, NITTRAD tops the list. In addition to procurement of lab equipment under GOB funding, NITTRAD recently has received equipment also from UNIDO under the auspices of BQSP. Moreover, UNIDO has spared some experts for improvement of lab outlaying and equipment maintenance. The labs of these institutions are commonly characterised with poor maintenance resulting in disorder or malfunctioning of many valuable equipment/instruments. The cause is poor maintenance due to lack of training of lab staff, primarily.

Table-3.2: Condition of lab and equipments of different institutions offering textile & RMG education/training Name of Intuitions/ Organizations

Laboratory Equipment (Number/volume and models)

Lab space (Area, shed quality & layout)

Maintenance of Lab environment

Systematic Maintenance of equipment & Calibration

Strength of **Lab Staff

Formal Training of Lab- staff

NITTRAD 5 4 3 1-2 Inadequate 0-1 BIFT 2-3 3 2 2 Inadequate 0-1 iART * No Lab established

so far at IART Office

2 1-2 Inadequate 0-1

Schools of DOT including 4 textile college

3 3 2 1-2 Inadequate 0-1

BSTI 2-3 3-4 3 2-3 Inadequate 0-1 Private Universities 2 2 1-2 Inadequate 0-1 Textile College 4 3-4 3 2 Inadequate 0-1

Key: 5-Excellent, 4-Good, 3-Fair/Satisfactory, 2-Not Satisfactory, 1-Poor, 0-None/Hopless * There are some cutting & sewing machines for workers training but no machines or Lab at IART’s central premise/cell in Dhaka. **Lab staff here refers to technicians/lab-boys/tool- boys or maintenance workers who operate, clean and maintain lab equipment.

3.2.2 Design Development Facility Among the above-mentioned institutions, only NITTRAD has design development equipment, the most of which are not functioning due to lack of proper maintenance effort and programme. The institute also has not recruited competent resource personnel to work with and maintain the equipment. On the other hand, BIFT that aims to be the main player among the design creators in the country do not have essential design development equipment and inputs. For example, BIFT lab lacks modern film developing machine, vacuum contact printer, modern auto developer and dyer, sophisticated line camera set, modern tracing table with light box, modern graphic design table, copier machine for map and design, rotor pen set, vacuum contact exposure machine for flat screen, various screen gauge attachments/accessories, dress forms, swatches, colour shades, and many basic machines & inputs essential for design development purpose and practices. Also the institute needs a range of lab machines and equipment for its textile related education and training program. iART has no design development lab equipment or as such and do not have bare minimal range of conventional equipment to conduct higher level training course or any technical research in knitting.

3.2.3 Library Apart from shortage of literatures, the libraries are commonly weak in terms of arts and skill of modern library organization, operations, management and standardization. There is serious lack of skill even for conventional library operation and management, not to speak of digital libraries. Lack of library education and training of the library staff appears to be the major causes of substandard library services.

32

Needless to mention, an efficient library service is of greatly help to teachers/trainers in preparing appropriate/advanced learning materials; it provides learners with enzyme like inputs for effective digestion of the knowledge delivered by teachers/trainers. For the interest of introducing modern library service, in addition to arranging training program for library staff, there is a need for perceptional dissemination of usefulness/impact of efficient library operation in learning process among the top management of these institutions.

Table-3.5: Library condition in different institutions Name of Intuitions/ Organizations

Library Condition Collection of books

Subscription (for Journal/ Serial publications)

*Skill of library staff

**Library system

Qualification and Training of library staff

Overall getup (furnishing, including seating arrangement and use of computer)

NITTRAD 2-3 1-2 0-1 1-2 1 2 BIFT 3 3 1 2 2 3-4 iART 1-2 1 0 0-1 *N/A 0 Schools of DOT 2-3 0-1 0-1 1-2 1 1-2 Private Universities 1-2 1 1 1-2 1-2 1-2 Textile College 3 2 2 2 2-3 3

* Skill in collection of materials for curriculum development and research. **Library system here means cataloguing, indexing, reference sourcing, demonstration, assemble/ arranging, distribution and collection, informing users about new and useful arrivals, etc.

Key: 5-Excellent, 4-Good, 3-Fair/Satisfactory, 2-Not Satisfactory, 1-Poor, 0-None/Hopless

3.2.4 Curriculum & Training Manual Development Education and training are the dynamic issues needing continuous up-gradation for the shake of its practical appeals. Local institution’s experts need assistance of more experienced universities/training centres and their experts for developing need based educational curriculum and smart training manual that can meet industry’s need while maintaining all qualitative norms.

3.2.5 Training & Seminars One of the causes of failure to provide effective training or education is shortage of qualified & skilled trainers and teachers. The textile & RMG education/training service provider institutions suffer from acute shortage of efficient staff/resource personnel. The existing textile educational and training institutions too few technically qualified teachers & trainers to provide specialised training to the teachers and trainers of these institutions in the form of TOT. BQSP during its implementation period, strengthened NITTRAD’s training capacity. It has organized a number of trainers training programs in different fields of Textiles at NITTRAD with the help of foreign experts, but the number of such training are very inadequate as against the perceived needs of the sector. The trainers and experts we interacted opined that apart from skill related training, there is also need of having exposure & first hand experience on methodical aspects of training in best practicing training/educational institutions. This is potential to grow self-confidence in the mind of the trainers and help catering their services in smarter way. So, there is a reason for attending overseas training programs by the prospective trainers/teachers of NITTRAD, BIFT & iART.

Table-3.3: Overall status of training of the teachers/trainers in different textile & RMG HRD institutions Name of Intuitions/Organizations Training of Teachers/trainers (collective assessment) Well trained Partly trained At all not trained NITTRAD No Yes No BIFT No Yes No iRT No Yes No Schools of DOT No Yes No Private University Offering Textile & RMG No Yes No

33

educations

Seminar is the effective most tools to share experience and disseminate knowledge & research outputs. The local institutions very occasionally arrange technical seminars. There is a lack of experience and expertise on arts of effective seminar organization and management. It would be very useful to organise illustrative technical seminars in Bangladesh by competent foreign experts, which would popularise seminars in Bangladesh while transferring the arts and skills among the institutional staff.

3.2.6 Long Term Alliances To enrich the knowledge and skill base for the interest of capacity development, the local institutions/centres need sharing the experiences and knowledge of the advanced or world famous best practicing institutions. An intelligent and effective approach in this connection would be formation of long-term strategic alliances with reputed foreign institutions. NITTRAD has been in a process to from long-term alliances with the reputed institutions of Asia and Europe. . Already NITTRAD has signed agreement with Niederrhein University, Germany and Bolton University, UK on issues of cooperation in the areas of training and education. BIFT also entered into the cooperation agreement with London College of Fashion, UK and Niederrhein University, Germany.

Table-3.2: Status of long-term alliances with the local HRD institutions Name of Intuitions/Organizations/centres Long term alliances with institutions of developed countries

Agreement Such initiative

taken In process to conclude Concluded

NITTRAD Yes Yes Yes BIFT Yes Yes Yes iART *Yes No No Government Textile Colleges & Institutes of DOT No No No Private Universities Offering Textile & RMG educations

No No No

*BKMEA Leaders are visiting world famous institutions with closer ideas.

3.3 Initiatives needed for Effective Services by Technical centres Creation of competent technical centres capable of addressing industry’s needs is demand of the time. Institutes like NITTRAD, BIFT & IART could be strengthened and tuned up for providing effective technical services. However, to make all this to happen, firstly the institutional capacities have to be revamped by strengthening resource staff with training and disseminating activities through seminars, improving laboratory facility, upgrading education & training curricula and library, etc. Secondly, the existing capacities of different institutes are to be coordinated effectively to maximally utilize the resources in a possible efficient way. Inclusion of four government colleges in this programme could be examined. • In order to make ensure sustainable utilization of the capacities of the above-mentioned institutes, the

centres initially could be guided to provide bureau, R& D and information services to the industry. • Out of existing large number of Primary Textile and Ready Made Garment Companies- some 100 or

more- desiring to improve productivity and quality could be provided with consultancy services, considering such selection criteria as: aging of the enterprise, productivity of the outputs, quality of products, cost of products and competitiveness, cost-benefit ratio, Internal Rate of Return, marketing prospects, etc.

• Every year at least 6-10 technical seminars / workshops are to be organised to disseminate results of the activities and programmes implemented during a programme of at least 5 years.

• Strategic alliances already developed with the internationally reputed universities / institutes needs to be extended with the renowned universities / institutes of Hong Kong, Taiwan, Thailand, India etc. and cooperation for higher education through exchange of students / faculty members, fellowships

34

(including15-20 overseas training) for the selected faculty members of relevant institutes / colleges could be made.

• In order to further strengthen the training capability of these institutes, lab and other equipments, library books, magazine etc. including upgrading of curricula and training manual could be procured during the BWTG programme.

35

SECTION-4 HUMAN RESOURCE DEVELOPMENT ISSUES

4.0 Introductions The growth of the RMG export has encouraged expansion of the local garmenting capacity and thereby a corollary increase of the backward linkage capacities for textile & accessory manufacturing has taken place. This eventually has caused wider employment scope for textile engineers & technologists. Apart from working in operational areas they are working in the areas like sales & marketing, procurement, management information system (MIS), water & effluent treatment, research and development, organization, educational institutions, banks, customs, buying houses, etc. Considering the employment opportunities, different public and private institutions /organizations have launched various education and training courses/programs. However, questions remain to be answered whether these are quantitatively & qualitatively adequate or effective to the needs.

4.1 Existing Needs and Future Demand-supply Gap of Human Resources for Textile & RMG Industry DOT’s report “the Survey of Textile Sector, Update the database/MIS and Assess the Requirement of Textile Technologists of Different Levels” published in 2009 shows that out of 4.2 million workforces only 5,644 persons (0.13%) had technical qualifications in textile disciplines. The report worked out huge shortfall of qualified technical manpower in the sector.

Table-4.1: Existing Requirement vis-à-vis shortfall of technical manpower in textile & apparel sector Technical Manpower required Existing Employment Existing Shortfall

PhD M.Sc./ MBA

B.Sc.(Tex)

Dip Total PhD M.Sc./ MBA

B.Sc. Dip Total PhD M.Sc./ MBA

B.Sc. Dip Total

423 1893 7991 17416 27723 25 65 2034 3520 5644 398 1828 5957 13896 22,079 Source: DOT Survey of Textile Sector, 2009.

According to this report, there is an shortfall (as of 2008-09) of total 22,079 educated persons in textile disciplines/specializations, of which 5,957 are B.Sc. level textile engineers/technologists- excepting diploma or postgraduate level experts. This shortfall is not static and likely to grow due to anticipated growth of the industry. The study has estimated the number of engineers/technologists needed over the period from 2007-08 to 2014-15 assuming the widely anticipated growth trend of production of textile industries. The model suggests that by 2014-15 the textile industry will need in total 70,654 educated manpower having PhD, M.Sc., MBA, B.Sc. & diploma degrees. Of them, 19,996 should have B.Sc. degree in textiles. Table-4.2: Projected demand of textile technologists by 2014-15 (year wise)

Categories PhD M.Sc MBA B.Sc Diploma Total 2014-15 1,087 3,729 979 19,996 44,863 70,654 Source: DOT Survey of Textile Sector, 2009.

Comparing the inventory of 2008, the DOT study has worked out a colossal shortfall of different levels of educated textile graduates by 2014-15, assuming static growth of supply over the period. Table-4.3: Demand-supply gap of textile engineers/technologists by 2014-15.

Level Inventory of 2008 Required in 2014-15 Gap in 2014-15 Ph.D 25 1,087 1,062 Masters 65 4,708 4,643 B.Sc.Engg/tech 2,034 19,996 17,962 Diploma 3,520 44,863 41,343 Total: 5,644 70,654 65,010

Source: DOT Survey of Textile Sector, 2009

In addition, there is huge demand of other types of educated skilled manpower in such disciplines as marketing, industrial engineer, mechatronics and many others. The study “Needs Assessment for Strengthening Bangladesh Primary Textile & RMG Industry” conducted in 2006 (sponsored by UNIDO-EU)

36

estimated that by 2010 Bangladesh PT & RMG sector together might need 65,247 personnel trained and/or educated in marketing of textiles & apparels.

4.2 Quantitative Aspect of Local Supply of Textile Graduates To utilize the opportunity a number of educational institutions have started offering B.Sc. & Diploma level textile educations in textile & clothing technology, as shown below.

Table-4.4: Institutions and types of education/training course being offered Type of institution Type & Level of Course Delivery of Graduates/Trainees

& Number of course conducted in 2009

Five (5) Government Textile Colleges including the College of Textile Technology (converting into university)

Offering 4 years long B.Sc engineering/technology in textile and apparel/clothing.

Textile college delivered *215 B.Sc. graduates and the rest 4 colleges have not yet delivered any graduates.

11 Universities in private sector (Ahsanullah University of Science and Technology, Primesia University, South-East University, City University, Green University of Bangladesh, Atish Dipanker University, World University, Daffodil University, Edward University, South Asian University, Shantomarium University )

Offering primarily B.Sc in textile and apparel/clothing technology (Ahsanullah university has started offering M.Sc in textile engineering/technology and Shanto Marium university is offering B.Sc. in fashion design).

268 B.Sc. graduates (the figure will presumably be 3-4 times more in 2010)

6 DOT Institutes (Diploma level) 12 class level Diploma in textile & apparel technology *854 diploma holders 38 DOT Institutes (10 class level) Vocational (SSC-10 Class Level) from *858 vocational holders 3 private textile college Diploma in textile/apparel technology (12 class level) *278 diploma holders Around 20 Institutes under various GOB Ministries, NGOs, and private sector

Vocational (VIII Class Level) and various types of certificate courses in textile & apparel technology, fashion designs, etc.

*645 vocational certificate holders

NITTRAD (A PPP entity managed by BTMA)

-Preparing for B.Sc. course in textile technology

-1-year long course in textile technology for general graduates, offer textile training and preparing to launce B.Sc. in textile technology/engineering from September 2010.

-Short courses on textile & apparel manufacturing related skills

-Machine demonstration oriented practical class for students of different public and private institutions providing textile education.

-Seminars for students

- Yet to be started

60 graduates certified in 2009-10

22 (318 participants) in 2009-10



BIFT (Managed & controlled by BGMEA)

-MBA in apparel merchandizing -B.Sc. in apparel manufacturing technology -B.Sc. in fashion design and technology -B.Sc. in knitwear manufacturing and technology -6 months long course Diploma course ( 1 course) -Certificate courses (5-courses)

-137 passed in the last year -138 passed in the last year -47 passed in the last year -40 passed in the last year -210 passed in the last year -258 passed in the last year.

IART (Managed & controlled by BKMEA)

-Workers training

-Executive training

-Trained in total 2300 workers since March 2008 -3 months training on lean manufacturing//productivity (4 training a year trained so 240 executives since March 2008).

Source: Baseline survey (* Data of 2008-09)

37

According to the study “5-Year Strategic Business Plan for developing NITTRAD'S Education, Training and Other Facilities,” conducted in last yeas, all these entities together had a delivery of some 5,100 persons educated in textile in 2008-09. This trend would take more than a decade to fill up the present demand-gap of total 65,010 textile engineers/technologists including 17,962 B.Sc. level textile graduate engineer/technologists for the country’s textile & clothing industry, Moreover, the future demand indicates the acute shortage of supply of trained (need based and job related) personnel in technical, marketing and related other aspects textile & RMG manufacturing.

4.3 Qualitative Aspect of Locally Supplied Skilled Manpower Buyers want to see Bangladesh RMG & Textile industry more efficient in terms of response time, productivity, quality, product flexibility, environmental issues and social compliances. The industry holds a range of issues responsible for bottlenecking their efforts towards buyers’ satisfaction, giving special reference to shortage of skilled/trained manpower. Regarding supply of skilled manpower for local textile & garmenting industry, the experts, owners and buyers have the consensus on followings:

• quality of textile & apparel graduates delivered by textile education providers have to be far improved; • training initiatives are too inadequate to satisfy industrial needs; and • effective knowledge dissemination practice through technical seminars is bare minimal.

Lack of practical learning facilities; shortage of study materials; poor relation with the industry; no or very little provisions for training of teachers/trainers; no systematic monitoring and evaluations of teaching staff; poor inter-institutional co-operation (e.g., no joint program for seminar, conference, research work, or publications.); etc. are the barriers to deliver quality graduates exactly needed by the industry.

Table-4.5: Comparative assessment of different textile educational & training institutions

Name of Intuitions/Organizations

Permanent Teaching Staff

(quantity, qualification & training,

experience,)

Lab Facility

Library Facility & Service

Industrial Attachment

/ Cooperatio

n

Technical Seminar/

Conference

Alliance with best

practicing institute

NITTRAD 3 4-5 2 2-3 1 3-4 BIFT 2-3 2 2-3 2-3 0-1 2-3 iART 1-2 No Central

Lab 0-1 2-3 1-2 0

Textile College 3 4 2-3 2-3 0-1 0 4 Government Colleges 2 2-3 1-2 1-2 0 0 Private Universities Offering Textile & RMG educations

3 (2 universities) 1-2 ( the rest of the

universities)

1-2 ( 3 universities)

0-1 ( the rest of the

universities)

1-2 (3 universities) 0-1 ( the rest of the

universities)

1-2 0-1 0

DOT Institutes 2-3 2 1-2 1-2 0 0 Key: 5-Excellent, 4-Good, 3-Fair, 2-Not Satisfactory, 1-Poor, 0-None/Hopless: Source: Baseline survey

4.4 Need of a Long Term Support Plan for Textile Training Three institutions such as NITTRAD, BIFT & iART are designed with the objective and spirit that these will be dedicated centres for providing skill training to the employees (micro level management partners to junior, middle and senior executives) on technical, managerial, marketing, environmental and financial issues of textile and garmenting for enhancing their contribution to improving quality productivity and value addition. iART has just started functioning, and BIFT’s effort in short course training is far less compared to its education program. NITTRAD has offered a range of need based short training for the industry, but those have been attended more by the senior students or fresh graduates delivered by private universities than the employed participants. The possible causes of stagnancy in training flow are as identified below.

38

• There is a lack of confidence of industry on capacity of the training institutions. • The cooperation and inspiration given by the enterprises and associations for practical training is far

less than necessary, the trainers in these institutions believe. • There is no effective initiative to popularize training by implanting it within the local industrial culture. • There is lack of experienced trainers who understand the burning issues of practical training that the

industry needs quickly resolved through training for imminent real benefit. • The training institutions have lack of methodical experience as with what types of training the trainers

should offer to create quick positive impact on the mindset of the industry about training’s effectiveness.

• There is a considerable lack in training delivery experience and related arts. • The whole training initiatives is not equipped with any support plan to encounter natural

backstopping tendency or stagnancy.

4.5 Steps needed for Vitalization of HR Initiatives Apparently, the programs or endeavours undertaken by the public and private entities may seem to be robust. Nevertheless, the gross perceived impression is that the quantity delivered by the educational & training institutions/centres is increasing without needed quality match. It is a crying need to offer job-skill based short training courses to the designers and other technical parsons employed in the industry. Under the circumstances, the training issues have to be dealt more professionally.

Considering the lack of local experience in implementing and sustaining strategic training programs for the textile & RMG industry, a long term Support Plan for Textile Training is needed to be formulated. This should be at least 5 yeas long-term plan that among others should:

• keep provisions for continuous transfer of experience of best practicing organizations of the world to Bangladesh through training of trainers- illustrative or demonstrative training by foreign experts;

• investigate ways of popularizing training; • find ways to involve owners and member of associations with training more cohesively; and • devise effective backstopping watchdog for programme continuity.

-While popularizing training, one of the best tactics could be conducting several trainings that are potential to develop some needed skill quickly and thus create positive impact the mindset of the industry towards training. So every year 10-12 quick impact training can be designed and implemented in cooperation with experienced foreign experts. -Considering the huge shortage of qualified managers & supervisors, every year at least 200 managers and supervisors should be provided training, who in turn will disseminate knowledge and skill to the other personnel working in the industry. Preferably, foreign experts in cooperation with local trainers should design and conduct this type of training.

-A scheme for providing training to 1000 qualified designers and technicians every year should be designed and implemented by the relevant institutes under the supervision of foreign & local experts.

In formulating and implementing this long-term support plan, the assistance from BWTG component of BQSP could be sought. The plan needs cordial support of the government and stakeholders’ associations to be implemented.

39

SECTION-5

MINISTRIES AND PRIVATE SECTOR ASSOCIATIONS

5.0 Introduction Several ministries & departments are involved in formulating and implementing policy issues concerning export -oriented Textile & RMG sector of Bangladesh. The Ministry of Textiles & Jute (MOT & J) mostly works as facilitator of the Primary Textile Industry, while the Ministry of Commerce frame up the import and export policy of all the sub-sectors including textile & RMG. The National Board of Revenue (NBR) under Ministry of Finance frames and implements the fiscal and monitory policy including tariffs and taxes and financial incentives of packages for development of different sub-sectors of the economy. The Textile Policy in consonance with GOB Industrial Policy implies key policy frame to regulate and monitor the development of the sector.

5.1 Existing Major Policy Support to Textile & RMG Sector Under the present polices and regulations the export-oriented RMG & Primary Textile Industries enjoy various promotional supports, such as, fiscal, financial and institutional etc. Policy Support Benefits / incentives enjoyed by the export- oriented Textile & RMG industry.

Fiscal or tariff Benefits

-Bonded warehouse facilities for duty-free import of inputs under back-to-back L/C. -Duty draw back of the duties paid for inputs of the exported goods directly or through RMG. -Duty free import of capital machinery for the industry exporting at least 80% of its products. - Tax-Holiday for 3-5 years depending on the locations.

Financial Benefit - 5% Cash incentives paid to the local input suppliers, not enjoying bond/duty draw back facility. -Enjoy bank loan at an interest (up to 9%) lower than market rate (13 to 15%).

Institutional support

Multifarious supports and promotional cooperation are provided by Board of Investment (BOI), EPB, Bangladesh Bank, different training institutes, etc. Bangladesh Export Processing Zones Authority (BEPZA) provides foreign investors with ready infrastructure support in establishing industries in the Export Processing Zones, where duties and taxes are exempted for both import & export.

Other support or benefit for the investor of FDI

The BOI offers various supports services to the foreign investors in getting land, power, gas and other facilities for expediting the investment through its One-stop Services.

5.2 New Textile Policy

MOT &J has drafted a new Textile Policy, which is now under process for approval of the competent authority. The draft policy has made certain amendments in different policy issues to make it contributory to the development of the sector. For sustainable development of the textile and RMG sector in view of post MFA market integration, this Policy envisages adoption of the policy formulation with regard to the following fiscal, monitory, trade and incentive measures: • government plans to give emphasis on rationalization of tariffs and taxes on the textile machinery,

spares, inputs and outputs for encouraging labour-intensive export-oriented industries; • emphasis given on development of bi-lateral, multi-lateral, sub-regional and regional trade related

cooperation and contracts; • emphasis given on strengthening the educational and training facilities for improvement of productivity,

quality and competitiveness of textile & apparel products in the local and global market; • Various fiscal and monitory incentives for diversification of high value added products; etc.

40

Moreover, to encourage investment in the backward linkage industry, the initiatives committed to ensuring facilities among others include development of infrastructure & utility services, establishment of modern laboratories QC purposes, establishment of product-based clusters, regular supply of updated information on market and technology to the producers, development of the Port facilities and simplification of custom clearance, etc. Yet the other policy issues that need to be considered are:

a) more liberal policy for Foreign Direct Investment (FDI); b) modernization of the regulations on environmental Issues, along mention of mandatory ETP provision.; c) product quality & copy rights issues have to be given priority; d) improved business laws of the country to efficiently handle disputes in trade issues; and e) setting up of industrial park or textile village concept is recognized in the GOB policy thinking, but there are no policy measures to ensue its implementation around Dhaka, Chittagong and Khulna under the private sector or under PPP.

5.3 Private Sector Associations There are several stakeholders associations found active in taking care of the Textile & RMG sector. Prominent among them are:

• BTMA-Bangladesh Textile Mills Associations (representing mainly primary textile industry) • BGMEA -Bangladesh Garments Manufacturers’ & Exporters’ Association (representing primarily

woven garments industry) • BKMEA- Bangladesh Knit Manufacturers and Exporters Association (most of the Knit RMG, knitting,

and knit dyeing units are their members). • BTDPIA- Bangladesh Textile Dyeing & Printing Industry Association • BEOGWIA- Bangladesh Export Oriented Garments Washing Industries Association • BSTMPIA-Bangladesh Specialised Textile Mills & Powerloom Industry Association

5.4 Need of Cooperation The industry/association leaders and the knowledgeable people characterize government’s policy as responsive but not proactive. Government formulates policy at the moment of crying need and that often becomes too late to address the problems properly as time often changes the demand’s nature. On the contrary, the associations have not developed their research cells to develop policy implications with facts and figures that would play role in GOB’s decision making, more quickly. In view of the above, there can be a textile & RMG business oriented think-tank institute/cell under PPP management, which can timely detect the anticipatable business problems or crisis by reviewing local & international business situation & dynamics. Working cohesively with the stakeholders and the GOB, this think-tank can formulate possibly acceptable policy recommendations to expedite the lead-time of GOB’s policy framing for the interest of textile & RMG sector. BWTG can be of great help to develop such think tank institute/cell with the help of the institutions like NITTRAD, BIFT & iART and experts having long presence in the sector. . In addition, two sub-contract units namely, Textile Strategic Management Unit (TSMU) and Garment Strategic Management Unit (GSMU) of BWTG can be of great help to provide policy support services to the ministries and can create good cooperation between public and private institutions.

• Task Completed under Textile and RMG Components of Bangladesh Quality Support Programme (BQSP) against the Objectively Verifiable Indicators (OVIs) upto June 2010 is shown in Annex – 1 attached

• Revised Logical Framework for Better Work in Textiles and Garments (BWTG) under BEST Programme (2010 to 2015) of EU / UNIDO is shown in Annex – 2 attached.

Annex-A page 1 of 5

Annex - 1

Tasks Completed under Textile and RMG Components of Bangladesh Quality Support Programme (BQSP) against the Objectively verifiable indicators

Upto June 2010

Intervention logic Objectively verifiable indicators of achievement

Tasks Completed Completion Date/ Remarks

2.1 Strengthening the National Institute of Textile Training Research and Design (NITTRAD) – technical training

Number of graduates and trained personnel: 160 graduates to complete 1 year certificate course. 200 students to complete 1 year of the 4-year Sandwich Diploma Course. At least 300 trainers / teachers from industry and training / educational institutes trained in a total of 12 or more short TOT and other courses. Around 240 supervisory manpower received 12 short term training courses (1 week).

A total of 340 students completed 1 year Certificate course from June 2007 to June 2010.

June 2010

Instead of Diploma course 4 Year B. Sc. in Textile Engineering is now planned to be started from September 2010.

The programme for 4 Year Sandwich or traditional Diploma Course has been dropped.

Five “Training of Trainers (TOT)” courses have been conducted by 6 expatriate experts. A total of 215 faculty members / trainers received training.

August / September 2009 and February / March 2010

36 short-term training courses conducted covering 1,376 numbers of different categories of students/personnel working in various fields of textiles.

December 2009

2.2 Strategic Alliance with the renowned textile institutes/universities for strengthening NITTRAD’s technical training and BIFT

Long-term cooperation agreement between London College of Fashion (LCF), Niederrhein University (NU) and BGMEA Institute of Fashion & Technology (BIFT)

High level delegation visited LCF High level delegation visited NU and ITMA textile machinery fair Cooperation Agreement between NU and NITTRAD signed. Cooperation Agreement between NU and BIFT

November 2006 September 2007 March 2008 March 2008

Annex-A page 2 of 5



signed Cooperation Agreement between LCF and BIFT signed A study mission was organized to visit 3 European Countries namely Germany, Belgium and the Netherlands to gather knowledge about the latest education/training facilities and selected modern textile machinery manufacturers and selected universities High Level mission to visit IMB Cologne Fair 2009 & visited London College of Fashion in UK International experts from Niederrhein University (NU) worked for up-gradation of sewing lab facilities and development of faculties International Experts from London College of Fashion (LCF) worked for up-gradation of the CAD/CAM facilities, developing curricula/modules, and providing training the teachers of BIFT. Cooperation Agreement between Bolton University and NITTRAD signed during a study mission to the UK.

October 2008 November 2008 April 2009 Until end of the project Until end of the project April 2010

2.3 Improving consulting services to the textile and garment sector

A total of 18 selected enterprises of PTS, knitwear and woven RMG sub-sectors (6 units each) received consultancy services to improve their competitiveness.

Establish consultancy unit- Advisory for Textiles and Apparels of Bangladesh launched Six participating companies identified and provide consultancy to 3 individual companies by international expert.

May- June 2010.

Annex-A page 3 of 5



2.4 Organisation of Textile Marketing Training and Information Services at BIFT

Introduction of new education and training programme: Improved fashion marketing and merchandising modules introduced in the under graduate (UG) level and strategic fashion marketing modules introduced in the post graduate level 2 TOT organized for approximately 20 trainers New training courses for approximately 100 students introduced Fashion marketing case study in cooperation with industry be introduced in MBA course in Year 4; at least 75 marketing case studies be made by the end of the project Around 10 consultancy assignments on e-learning and fashion design New diploma course designed on fashion marketing and branding to be launched in 2009; 100 students be trained. Lecture series on marketing by major buyers introduced at BIFT as a regular activity in Year 3 of each courses. New learning outcomes on marketing designed for all final year students in Year 3.

Improved fashion marketing and merchandising modules developed in the UG level and Strategic Fashion Marketing modules developed in the post graduate level Applied to the National University for the approval of these two modules. Modules approved by the National University 2 TOT organized for 20 trainers Training for students delivered to 100 students Market case study & consultancy project organized for 75 students. 10 Consultancy on fashion design introduced Lectures delivered to the under graduate level of students on fashion branding Lectures to UG Fashion Branding-25 students Market research Method-25 students Module Development TOT on trends and TOT on Range Planning and Collections

December 2008 August 2009 April 2010 October 2008 April- June 2010 Project launched Q4, 2008 and completed in June 2010 April 2010 100 students attended in the lecture programme in December 2009 December 2009 October 2009

Annex-A page 4 of 5



2 Training of Trainers (TOT) was organized for faculty members of BIFT TOT on Garment Engineering 2 TOT organized for approximately 20 trainers. New training courses for approximately 200 students introduced.

TOT on introduction to Photoshop TOT on introduction to Illustrator TOT on Shop Floor Management Training LECTRA Software Training 2 TOT organized for 25 trainers. Fashion Marketing for designers. Teaching Fashion Marketing through case studies. Fashion Marketing consultancy project.

October 2009 October 2009 February 2010 April 2010 October 2009

2.5 Strengthening of the Centre for Export and Product Development (CEPD) at BIFT

New CAD-CAM studio, quick response unit and IT market, technical information service with fast internet connection and upgraded library installed, running and regular use in CEPD at BIFT by end of project.

A number of equipment (Computer) purchased and installed at BIFT. To identify the demand of the industry CEPD seminar organized 2 Short courses for the industry offered from CEPD

IT Lab developed (76 computers with UPS delivered) Advanced CAD room introduced Fast internet connection New CAD-CAM studio opened Up-gradation of library Training on Library Management- 2 trainers were trained from BIFT Upgraded existing sewing lab Advanced sewing lab to be set up Onsite technical training provided by international experts Up gradation of sewing lab and clothing management department and setting up quick response lab and link it to CEPD Centre for Clothing Technology 30 large factory owners participated in the workshop including BGMEA President, Vice President etc. and placed their demand. Improving fashion design capabilities Gain Competitive Advantage through Marketing & Negotiating skills

December 2008 December 2008 December 2008 August 2009 June, 2009 March 2009 and June 2009 October 2009 January 2010 Completed February 2010 February 2010 April 2010

Annex-A page 5 of 5



2.6 Improving capacities in ministries and trade associations concerning textiles/garments sector analysis and planning.

Improved coordination and sector policies Textile Policy – 2008 prepared and submitted by MOTJ to the Cabinet Division for approval.

October 2008

About 200 write-ups / briefings/ working papers on different textile industry, trade, tariffs and other economic related topics.

June 2010

Prepared 2 medium and long term development plans for Textile and Jute sector.

June 2010

Prepared original and revised TPP on Textile Component of BQSP; Prepared TPP on Textile Component of BEST.

June 2010

Monthly, quarterly and annual reports regularly submitted to MOTJ, IMED, ERD and Ministry of Finance on the physical and financial progress of the project under Textile component.

June 2010

Coordinated the preparatory works for execution of contract between BTMA and BTMC for transfer of operational management of NITTRAD to new GB.

September 2008

Coordinated the preparatory works for formal handover of the operational management of NITTRAD from BTMC to BTMA.

June 2009

Organized workshop / seminar in connection with presentation of reports / papers by the International and National Experts.

December 2009

Annex – 2 page 1 of 3

Annex - 2

Revised Logical Framework for Better Work in Textiles and Garments (BWTG) under BEST Programme of EU / UNIDO

Intervention Logic Baseline position as of June 2010 Objectively verifiable indicators of achievement

Recommended OVIs

1 To enable the textiles and Clothing sector to better compete in the post Multi Fibre Agreement (MFA) context, through better performance and enhanced social compliance.

• 17% of the RMG units are getting a part of the orders directly from international buyers

• About 200 to 250 companies can quickly respond to buyers orders.

• No companies participate online bidding through ICT

• None of the companies has so far been able to create any brand in the international market.

• 20% of companies capable to deal directly with buyers and / or offer “fast response” services and /or create new products or own brands by Programme end

• The annual exports of textiles and RMG products increase in numbers and value by 10% annually through improvement of quality and productivity;

• The aggregate percentage of workers transiting to higher responsibility position and better pay increases by 2% annually.

• An increased percentage of the national labour force is employed according to national law.

• 20% of companies capable to deal directly with buyers and / or offer “fast response” services and /or create new products or own brands by Programme end

• Quality and productivity of the companies under PTS vary from process to process.

• 41% of yarn manufacturers fall within 25% quality grade of Uster Statistics

• 80% of knit fabrics are supplied from local sources to the knit RMG

• Very limited local manufacturers can turn out woven fabrics of international standards

• 50% of the RMG companies falls within 80-95% of achieving quality in single trial.

• 100 companies demonstrate significant increase in quality and productivity by programme end

a) Assist NITTRAD, BIFT and iART to develop a National Performance “Cluster” for Garment & Textiles with modern ICT and education technologies

• NITTRAD : Adequately focused in respect of education, training, testing and organizing professional and technical seminars.

• BIFT : Equipped with the facilities of education and training and organizing professional and technical seminars. CEPD

• Cluster of competent technical and research centres created

No change



Recommended OVIs

with CAD / CAM facilities established. • iART : Training facilities in respect of

apparel research and technology only. • Institutes under DOT : Facilities other than

education are absent. • No such services are available. Bureau, R&D, PD&D and

information services available to industry

No change

• Consultancy services for quality and productivity improvement (BMRE) have not been initiated so far.

100 companies assisted on quality and productivity improvement

Keeping in view the practical situation in respect of consultancy services for quality & productivity improvement of Textiles and RMG enterprises, targeted number of companies should be reduced to 60 instead of 100 companies.

• 30 seminars / workshops organized under Textile & RMG component of BQSP

30 technical seminars organised to disseminate results

No change

b) Support NITTRAD, BIFT, iART and BITT to create long-term alliances with internationally reputed textile institutions

• Strategic Alliance among NITTRAD and Niederrhein University of Germany, Bolton University, UK developed.

• Strategic Alliance among BIFT and Niederrhein University of Germany, London College of Fashion, UK developed.

Long-term alliances concluded

No change

• A total of 6 participants (4 faculty members of Textile Colleges & BIFT and 2 representatives from ASTAB and BIFT) received training from the International workshop on physical testing of Textiles held in TUBITAK – BUTAL, Bursa-Turkey.

10 teaching staff trained overseas Number of participating institutions have increased under BWTG component of BEST. So the number of teaching staff trained overseas should be 20 instead of 10.

• Considerable equipments for office & lab, books & magazines for library procured and curriculum for education & training of NITTRAD, BIFT and Textile Colleges have been upgraded partially.

Library, equipment and curriculum upgraded

No change



Recommended OVIs

c) Develop a “Long-term Support Plan for Textile Training” and train managers and technicians and master trainers

• Training provided by NITTRAD : - Five “Training of Trainers (TOT)” courses have been conducted by 6 expatriate experts. A total of 215 faculty members / trainers received training. - 36 short-term training courses conducted covering 1,376 numbers of different categories of students/personnel working in various fields of textiles.

• Training provided by BIFT : - Around 270 trainers received TOT on various design, marketing and CAD courses

• A “ Long-term Support Plan for Textile Training” formulated

• 30 quick impact training modules are designed and in use

• 1,000 qualified managers trained by programme end including master trainers

• 5000 qualified designers and technicians trained by programme end

• Textiles and fashion institutions upgraded and quality of training services provided improved

• A “ Long-term Support Plan for Textile Training” formulated

• 30 quick impact training modules are designed and in use

• 500 qualified managers trained by programme end including master trainers

• 2000 qualified designers and technicians trained by programme end

• Textiles and fashion institutions upgraded and quality of training services provided improved

d) Strengthen the analysis and planning capacitates in relevant ministries and private sector associations so as to better adapt to changing market requirements

• To provide policy and TA support for integrated development of Textile and RMG sector (MOTJ and relevant associations), the Textile Strategic Management Unit (TSMU) has been working under Textile component of BQSP.

• TSMU is also providing assistance for maintaining congenial cooperation between the relevant public and private sector institutions.

• Sounds industry and trade policies formulated and implemented for Textiles & RMG sector

• Cooperation between public and private institutions improved

No change

Annex – 3 page 1of 3

Annex - 3

LIST OF TEXTILE & RMG UNITS SURVEYED

(A) Spinning Units Sl. No Name of the Units

1 Hajee Hashem Spinning Mills Ltd 2 Delsey Cotton Spinning Mills Ltd 3 RK Spinning Mills Ltd 4 NZ Spinning Mills Ltd 5 Rahmat Spinning Mills Ltd. 6 One Spinning Mills Ltd. 7 Tcehno Spinning Mills Ltd 8 Naheed Spinning Mills Ltd(Unit-6) 9 Panna Spinning Mills Ltd

10 Regent Spinning Mills Ltd 11 Ispahani Spinning Mills Ltd(Unit-2) 12 Badsha Spinning Mills Ltd

(B) Weaving Units

Sl. No Name of the Units 1 Ag Textile Mills Ltd. 2 Newtex Woven Ltd. 3 Shohan Textile mills Ltd. 4 Islam Weaving Ltd. 5 Beximco Denim Ltd. 6 Partex Denim Ltd. 7 Johny Textile Ltd. 8 Shuvo Textile Mills Ltd. 9 Sinha Weaving (Sinha Textile Ltd.)

10 Shehan Specialized Textile Ltd. 11 Crown Mills (BD) Ltd. 12 Regent Textile Mills Ltd.

(C) Knitting Units

Sl. No Name of the Units 1 Muazuddin Text5ile Ltd 2 Intramex Knitwear Ltd. 3 Concept Knitting & Dyeing Ltd. 4 Onupom Knitting Industries 5 Robintex (Bangladesh) Ltd 6 Fakir Knit Dyeing Ltd. 7 C & A Textiles Ltd. 8 Seatex Knit Dyeing Ltd. 9 KDS group of industries

10 Karnaphuli Knit Dyeing Ltd 11 Mozart Knit Ltd. 12 Padma PolyCotton Knit Fabrics Ltd.


(D) Woven Dyeing, Sl. No Name of the Units

1 Sinha Woven Dyeing & Finishing Ltd. 2 Unicom Textile Mills Ltd. 3 Tania Textile Mills Ltd 4 Biswas Woven Dyeing Ltd. 5 IN-KWANG Company Ltd. 6 Shovon Textile Mills Ltd. 7 Unilliance Textile Ltd. 8 Experience Textile Ltd. 9 Hamza Textile Ltd.

10 Qualitex Industries (BD) Ltd. 11 Shehan Specialized Textile Ltd. 12 Crown Mills (BD) Ltd.

(E)Knit Dyeing,

Sl. No Name of the Units 1 SIF Textile Ltd. 2 Robintex (Bangladesh) Ltd. 3 Rupashi group of industries 4 Intramex Knit Dyeing Ltd. 5 Concept Knitting & dyeing Ltd. 6 Muazuddin Textile Ltd. 7 Belkuchi knit Dyeing Ltd 8 Tex town 9 Karnaphuli Knit Dyeing Ltd.

10 Seatex Knit Dyeing Ltd. 11 C & A textile Ltd. 12 Mitun Knitting & Dyeing ltd.

(F) Woven RMG

Sl. No Name of the Units 1 Liberty Fashion Wears Ltd. 2 Fashion Forum Ltd (Ids group) 3 Johny Fashion Ltd. 4 Lyric Fashion Wear Ltd. 5 Pimki-2 Textile Ltd 6 MACtex 7 Mitaly Fashion Ltd 8 Lyric Industries Ltd. 9 Fair Garments ltd.

10 Men’s Fashion Ltd 11 Global GMTS Ltd. 12 Global Specialized Garments Ltd.


(G)Knit RMG

Sl. No Name of the Units 1 The Delta Composite Knitwears Ltd. 2 Tosrifa Industries Ltd 3 Okay Fashion Ltd. 4 Islams group of industries 5 Fakir Knitwears Ltd. 6 Nirob garments Ltd. 7 C & A Knit Garments Ltd. 8 Choice Fashion 9 Joy Fashion Ltd.

10 Jism Apperals Ltd. 11 Karnaphuli ApperalsLtd. 12 Toyo Knit Composite Ltd.

Annex - 4 page 1 of 2

Annex - 4

INDUSTRY LEADER, EXPERTS & KNOWLEDGEABLE PERSONS MET Name Title/Position Organization/Institution 1. Mr. Muzaffar U. Siddiqe President, Governing Body of BIFT BIFT

2. Nazrul Islam Ex Principal of BIFT & Professor of Dhaka University

Dhaka University

3. Mrs. Mahmuda Begum Assistant Professor, Fashion Design Dept. BIFT 4. AL-Haz Habibur Rahman First Vice President, BKMEA BKMEA

5. Mr. Kamal Uddin Coordinator, iART Cell at BKMEA Office iART of BKMEA

6. Mr. Towfique Hasan Secretary General, BTMA. BTMA 7.Engineer. Sahfiqur Rahman, Secretary General Bangladesh Garments

Washing & Dyeing Associations.

8.Mr. John T. Smith International Coordinator, RMG & Textile BQSP, UNIDO

9. Mr. Maqbul Ahmed Coordinator –TSMU of Ministry of Textiles & Jute National Coordinator (Textile)

MOT & J BQSP, UNIDO

10. Dr. Prof Shamsudddin Ahamad Ex Coordinator of TSMU & Professor of Economics

Dhaka University

11.Prof. Dr. Ayub Nabi Khan Principal NITTRAD 12. Dr. Aftab Uddin Hossein Chowdhury

Director (Ex. Principal NTTRAD)

Sinha Textile

13 Prof. Syed Fakhrul Hasan Murad Chairman, Dept of Textile Engineering Southeast University

14. Mr. ANM Ahmeduallah Coordinator, Textile Education Southeast University

15. Mr. Wahid Uddin Mahmud Managing Director Equipment Specialist

Technocrat Associates

16. Dr. Saiful Isam Head of the Department , Textile Engineering City University

17. Mr. A. Baset Principal Pabna Textile College

Annex - 4 page 2 of 2

Abbreviations

Abbreviation Full Name

BEST : Better Work and Standards Programme BGMEA : Bangladesh Garment Manufacturers & Exporters Association BIFT : BGMEA Institute of Fashion Technology BKMEA : Bangladesh Knitwear Manufacturers & Exporters Association BO : Board of Investment BQSP : Bangladesh Quality Support Programme B.Sc. : Bachelor of Science BSTI. : Bangladesh Standard Testing Institute BTMA : Bangladesh Textile Mills Association BTMC : Bangladesh Textile Mills Corporation BWTG : Better Work in Textiles & Garments DOT : Department of Textiles EPB : Export Promotion Bureau EPIDC : East Pakistan Industrial Development Corporation EPZ : Export Processing Zone EU : European Union FY : Financial Year GDP : Gross Domestic Products GOB : Government of Bangladesh GATT : General Agreement on Tariffs and Trade GSP : Generalised System of Preferences iART : Institute of Apparel Research & Technology ICT : Information and Communication Technology LCF : London College of Fashion

L/C : Letter of Credit

KII : Key Informants’ Interview

MFA : Multifibre Arrangement

MOC : Ministry of Commerce MOT&J : Ministry of Textiles & Jute M.Sc. : Master of Science MBA : Master of Business Administration NBR : National Board of Revenue NGO : Non Governmental Organization NITTRAD : National Institute Textile Training Research and Design PPP : Public-private-partnership PTS : Primary Textile Sector QC : Quality Control RMG : Readymade Garments R&D : Research & Development ToT : Training of Trainer TSMU : Textile Strategic Management Unit UNIDO : United Nations Industrial Development Organization

Documents

European Union BASELINE SURVEY FOR BETTER … Survey BWTG Final Report.… · Section Subject Page ... and 273 garments washing-dyeing units. ... were found turning out excellent