Rmg sector of bangladesh

A presentation on…

The Readymade Garments Sector ofBangladesh

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Presented to:

Ms. Sadia Noor KhanLecturerDepartment of Banking & InsuranceUniversity of Dhaka

Presented byGROUP- 3

Sadia Salam Mim- 046MD. Abir Hasan- 056Tanvir Mahmud- 014

MD. Rizwanul Hoque- 084Sadia Afrin Snigdha- 072

Sumaya Rashid Misty-(Quota)

History of RMG sector of Bangladesh The 100% export oriented RMG industry experienced

phenomenal growth during the last 15 or so years. In 1978, there

were only 9 export oriented garments manufacturing units . They

are Reaz Garments, Paris Garments, Jewel Garments,

Baishakhi Garments. The pioneer in export oriented garments

“Reaz Garments” was established in 1960 as a small tailoring

store. Then in 1973 it changed in “M/S Reaz Garments Ltd” and

expanded its operation into export market by selling men’s shirts

to a Paris-based firm and earned 13 million franc.

Present situation

5600 factories

5% market share

2nd position in the world

Tk. 5300 minimum wage

4 Million workers 80% female

Source : http://www.bgmea.com.bd/

Raw Materials

• Accessories: interlining, labels, buttons and sewing , thread.

• Packaging materials: neck boards, backboards, plastic collar stays, tissue papers, hangtags, pins and clips, hangers and polybags, zippers, draw strings and export cartons.

Comparative statement of total export and RMG export of Bangladesh

2009-2010 2010-2011 2011-2012 2012-2013 2013-20140

5000

10000

15000

20000

25000

30000

35000

Export of Bangladesh (in million USD)

Export of RMG (in million USD)

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014Export of Bangladesh(in million USD) 16204.65 22924.38 24287.66 27027.36 30186.62Export of RMG(in million USD) 12496.72 17914.46 19089.69 21515.73 24491.88

Source : http://www.bgmea.com.bd/

Source : http://www.slideshare.net/ShahriarRawshon/contribution-of-rmg-sector-in-economic-growth-of-bd

Product wise RMG export

Year Shirt Trouser Jacket T-shirt Sweater

2009-2010 993.41 3035.35 1350.43 3145.52 1795.39

2010-2011 1566.42 4164.16 1887.50 4696.57 2488.19

2011-2012 1733.54 4686.39 2231.16 4713.11 2340.34

2012-2013 1972.89 5185.48 2634.28 5143.22 2620.73

2013-2014 2173.73 5690.78 2973.16 5863.81 2932.94

Source : http://www.bgmea.com.bd/

Strengths and potentials• Good quality of raw materials• Present of internationally reputed firms• Presence of strong business association• Emphasis on changing trends• Physical resource• Knowledge resource

• Capital resource• Favorable climate condition• Abundant management executives• Abundant investors• Foreign direct investment(FDI)• Low labor cost

Problems in this sector

• Poor quality of infrastructure logistics• Poor education and training facilities• Poor living condition of workforce• Low level of technology application• Undue competition• Firms’ inability to exploit value added

potential• Lack of long term plans for apparel industries

• Lack of implementation of government initiatives

• Lack of enforcement of business regulation

• Frequent political unrest and violence• Lack of proper safety measures• Lack of proper working environment

Rana Plaza Tragedy

On 24 April 2013, Wednesday at 8:45 AMRana Plaza, an eight-story commercial buildingand garments factory, collapsed in Savar.The search for the dead ended on 13 May with a

death toll of 1,129. Approximately 2,515Injured people were rescued from the buildingalive.

Initiatives taken by the government

• National Tripartite Plan of Action on Fire, Electrical Safety and Physical Integrity in the Ready‐Made Garment Sector of Bangladesh (NAP)

• Allowing 3 agencies to inspect workplace safety- 1. Accord on Fire and Building in Bangladesh 2. Alliance for Bangladesh Worker Safety and 3. BUET

• to ensure long-term enforcement of a globally acceptable fire, electrical and structural safety standard

• upgradation of the Department of Inspection for Factories and Establishments (DIFE)

Established: 1983Situation: Hatirrjheel, DhakaPresent president: Atiqul IslamVision: to develop the RMG industry ofBangladesh and the economy of the country.Mission: 1. to protect and promote the interests of the industry; 

2. to ensure all legitimate rights and privileges of the garment workers.

Any Query ?