Gani Report

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REPORT ON

Garment Industry in Bangladesh

Past, Present & Future

Submitted To

Abdul Gani

Lecturer

Faculty of Business Administration

University Of Development Alternative

Submitted By

Syed Amir Hamja-021101013

Batch- 27th

Submission Date: 2nd June, 2011

UNIVERSITY OF

DEVELOPMENT ALTERNATIVE

(UODA)



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2nd June,2011

Abdul Gani, Lecturer

Facult of Business Administration

Uni ersit Of Development Alternative (UODA)

Sub: ³Application for the submission of the report on Garments Sector In Bangladesh,

Past , Present & Future´

Dear ir

Wit due respect I would lik e to draw your kind attention to t is fact t at, I have prepared arepor t on Garments Sector In Bangladesh. This repor t consists of the history of the garments

sector in this country,its present condition and many more . I believe it¶s time to submit that repor t before you. It will be a matter of pleasure if you accept my repor t.

I, therefore request you to kind enough in accepting my repor t.

Obediently Yours

Syed Amir Hamja



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Acknowledgement

It¶s my great pleasure that we successfully completed our repor t on Garment ector In

Bangladesh. Firstly I¶m very thank ful to the Almighty Creator for giving us the oppor tunity

to turn our dreams into reality by prepar ing it. econdly, I express my gratitude to the

honorable course teacher Abdul Gani for selecting me to be the par t of this repor t. We have

also deeply ack nowledged to my fellow mate Anik Ahmed( East West University), Mehrab

hawn(Customer ervice Off icer, Grameen Phone) for co-operating me to prepare it.I have

en joyed my wor kings very much. Inspite of having all the effor ts, there may be some

unexpected minor mistak es in this repor t and I¶m extremely sorry for that but its hoped that

mistak es will not hamper in understanding the repor t. Finally, I expect that this repor t will be

considered as an especial document to k now more clear ly about the Garment sector .



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Ex ecutive Summery

This repor t is telling about the internal and external activities of Garment ector In

Bangladesh.A shor t prof ile of product has been mentioned along with sources of data fromwhere the information has been accumulated. Then product mix has been included on the

basis of questionnaire given at bi bliography and there the vacuumed pack of tea was named

as poly pack . A product life cycle, segmentation plan and targeting plan has been included

too. A char t of WOT analysis is telling about the internal and external factors of this tea

company. Af ter a successful analyzing, some recommendations have been suggested. Though

that¶s all about this repor t but its depth is hidden with the elaborate explanations of different

points.



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CONTENTS PAGE NO

1. Introduction««««««««««««««««««««««««««««.06

2. Ob jective«««««««««««««««««««««««««««««. 06

3. Methodology: Data ource

3.1 Pr imary Data««««««««««««««««««««««««««063.2 econdary Data««««««««««««««««««««««««.. 06

4. Limitations«««««««««««««««««««««««««..«««««..07

5. History Of the ector

5.1 The Beginning Episode«.««««««««««««««««««««««««.07

5.2 Present Condition of Garment Industry in Bangladesh«««««««««««.........08

5.3The Future«««««««««««««««««««««««««««««« 09

6. WOT analysis««««««««««««.««««««««««««....................10

7. Findings««««««««««««««««««««««««««««««««11

8. Recommendations««««««««««««««««««««««««««««.11

9. Conclution«««...««««««««««««««««««««««««««« 12

Bi bliography

TABLE OF CONTENTS



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The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh

economy. It is the largest expor ting industry in Bangladesh, which exper ienced phenomenal

growth dur ing the last 25 years. By taking advantage of an insulated mar k et under the

provision of Multi Fi ber Agreement (MFA) of GATT, it attained a high prof ile in terms of

foreign exchange earnings, expor ts, industr ialization and contr i bution to GDP within a shor t

span of time.

The main ob jective of this repor t is to represent the internal and external image of activitiesof garments sector. It¶s k nown that at present many problems are r ising, so question is here

about is this sector is really doing well or not. o, another ob jective of this repor t is to explain

the reason that why problems are ar ising and what are solutions.

3.1 Pri ry Data

Pr imary data of this repor t has been included from-

� Different Garment factor ies of Bangladesh.

3.2 Secondary Data

Sources of secondary data are-

� Internet (Web site)

� Newspaper

� Magazine

1.Introduction

2.Objective

3. Methodology: Data Source



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There are many limitations of this repor t, but ma jors have been pick ed up and they are-

� Unsor ted information in web site.

� Lacking of proper co-operation from the higher author ity of different garments

owners..

� Lacking of cer tain research center on the different problems of this sector.

5.1 The Beginning Epi ode

Before the bir th of Bangladesh, the wor ld k new about it through a great element ³cloth´.

There was a reputation of local cloths in the developed countr ies. Gradually people of this

country star ted activities lik e manufactur ing dresses and expor ting those to other countr ies. It

happened because there was huge prof it; so very rapidly this sector star ted to wor k

professionally. And then garments industry gained a powerful position in this country.

Government also star ted to patronize it. So it was a signif icant star t. In recent years, the

Ready ±Made Garments (RMG) sector has emerged as the biggest earner of foreign currency.

The RMG sector has exper ienced an exponential growth since the 1980s.The sector

contr i butes signif icantly to the GDP. It also provides employment to around 4.2 million

Bangladeshis. An overwhelming number of wor k ers in this sector are women. This hasaffected the social status of many women coming from low income families. Since the late

1970s, the RMG industry star ted developing in Bangladesh pr imilar ly as an expor t ±or iented

industry although, the domestic mar k et for RMG has been increasing due to increase in

personal disposable income and change in life style, foreign exchange earnings and its

contr i bution to GDP. The Hundred percent expor t-or iented RMG industry exper ienced

4. Li itations

5.History Of the Sector



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phenomenal growth during the last 15 or so years. In 1978, there was only 9 export-oriented

garment manufacturing units, which generated export earnings of hardly one million

dollar.R eaz Garment, the pioneear,was established in 1960 as a small tailoring outfit, named

R eaz Store in Dha a. It served only domestic mar ets for about 15 years. In1973 it changed

its name to M/s R eaz Garments Ltd and expanded its operations into export mar et by selling

10000 pieces of men s shirts worth French Franc 13million toa Paris based firm in 1978. It

was the first direct export of garments from Bangladesh. Gradually many garment factory

was introduced.

5.2 Present Condition of Garment Industry in Bangladesh

Present condition of garment industry in this country considered as ³good´. Because if it is

analyzed nothing will be found except progress in this sector. Here I have counted from

fiscal year 1991 to fiscal year 2006.

The figure shows that export has increased gradually and on the other hand GDP has also

been increased. Now the life of a garment wor er has also changed. A fulltime wor er gets

ta a 7000 per month, gets medical and insurance facility and many more. The sector now



9 dominates the modern economy in expor t earnings, secondary impact and employment

generated.

5.3 The Future

If it¶s about the future of this sector there will be lot of answers lik e- The wor ld textile and

clothing trade was wor th USD 527bn while Bangladesh¶s expor t was wor th USD 12.75bn in

2009. Thus, there is a tremendous oppor tunity for growth in Bangladeshi textile and clothing

industry provided that Bangladesh can maintain a vi brant and eff icient industry with the

lowest labor costs in the wor ld. Not only are those but also textiles and clothing products

sub ject to 12% duty in the EU. As per GSP rules Bangladesh is exempt from this duty, while

India and China must pay 9.6% and 12% duty respectively. Since beginning of 2011 k nit

expor t to the EU mar k et has increased sharply, par ticular ly due to the new rules. Now, more

than 70% of total k nit expor t from Bangladesh is shi pped to one of the EU member countr ies.

These trends are expected to continue. These symbols creating hope for this sector in each

and every second. Bangladesh is a leading garment and textile producing country. Af ter 70s

decade Bangladesh star ted its tour of business. That¶s a long history and also a glor ious

history to reach at that position. Now-a day¶s Bangladesh is considered as the best three

apparel and textile producing country. We mainly expor t garment products in USA, United

K ingdom, Germany and France. So in one word we can say that the garment sector is

contr i buting about ten million people directly or indirectly. About 76% of total expor t income

comes from this sector. For that reason it is impor tant for our country. The bank , insurance,

communication, por t, wor k er, employee all are depending on that sector.

In the 1980s, there were only 50 factor ies employing only a few thousand people. Currently,

there are 4490 manufactur ing units. The RMG sector contr i butes around 75 percent to the

total expor t earnings. In 2007 it earned $9.35 billion. This sector also contr i butes around 13

percent to the GDP, which was only around 3 percent in 1991. Of the estimated 4.2 million

people employed in this sector, about 50 percent of them are women from rural areas. USA is

the largest impor ter of Bangladeshi RMG products, followed by Germany, UK, France and

other E.U countr ies.



10 So it can be said that a good future is waiting for this sector.

6. SWOT analysis

Internal

(A)Strength

Very cheap laborer.

One of the leading RMG

expor ters in the wor ld.

Strong and fast distr i bution

activities.

(B)Weakness Labor unrest.

Ineff icient wor k force

External

(C)Opportunities

Can improve the quality.

One stop delivery service can be

launched.

(D)Threats Ineff icient wor k force can be

harmful for this industry.

Labor unrest can spoil the

reputation of a factory.



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07. Findings

Internal External

Lacking of eff icient manpower Lacking of proper distr i bution

Corrupted administration

Traditional manufactur ing process

08. Recommendations

� From manufactur ing to distr i bution, in each step, eff icient manpower should be

involved.

� Manufactur ing process should be modernized.

� Internal administration should be dr iven according to the standard rules.

� Wages of the wor k ers must be paid timely.

� Government should tak e some new steps for rapid growth of this sector.



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14. Conclusion

indicatiof the insurance, shipping, hotel, tourism, road transportation, railway

Garment sector is the largest employer of women in Bangladesh. The garment sector has

provided employment oppor tunities to women from the rural areas that previously did not

have any oppor tunity to be par t of the formal wor k force. This has given women the chance to

be f inancially independent and have a voice in the family because now they contr i bute

f inancially. As we all k now there was a global f inancial cr isis occurred on 2009, and

there was protest for wage and there was chaos but in spite of having these matters

garment industry in improving smoothly in Bangladesh. Its hoped that in near future this

sector will be more precious than anything else for our country.



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Bibliography

References

Kar im Man jarul, Owner (Steave Garment Ltd). Page no.0

htt p//:garmentsindustr ies in bangladsh Page,0

Documents: The Daily Prothom Alo, The Daily Star ( online

Version)

Page,0



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Appendix

History: Facts and Figures of garment industry in Bangladesh.

Findings: Internet sources.

Present Condition: Source- Blog S pot.com/present condition of RMG of Bangladesh.