2. Introduction to the Apparel Industry and RGM
The apparel and textile industry can be broken down into two major segments: the
production of textiles and fabric from raw materials and the transformation of these
fabrics into clothing and other accessories. The textile section of the industry
involves taking raw material, converting that material to yarn, and then dyeing and
finishing the fabric made from the yarn. Many textile companies in this industry
today are vertically integrated, like the process described previously. Textile fabrics
can include bolts of cloth but also materials such as carpeting, towels, upholstery, or
even industrial products such as fire hoses. The apparel industry cuts fabrics and
other materials and sews them together to create apparel or accessories, including
footwear, outerwear, pants, and tops. This industry also includes lesser-seen knitting
mills.
What is meaning of RMG?
Garment manufacturing factories are called as RMG factories. The industry that
makes huge volume of garments for domestic as well as the international market are
called as RMG industry.
3. Many news headlines that talk about garment manufacturing business use RMG
industry terms in their news and updates.
The full form of RMG is “Ready-Made Garment”.
History of Apparel Industry and RMG in Bangladesh
(First step into RMG)
After the independence in 1971, Bangladesh was one of poorest countries in the
world. No major industries were developed in Bangladesh, when it was known as
East Pakistan, due to discriminatory attitude and policies of the government of the
then West Pakistan. So, rebuilding the war-ravaged country with limited resources
appeared to be the biggest challenge.
The industry that has been making crucial contribution to rebuilding the country and
its economy is none other than the readymade garment (RMG) industry which is
now the single biggest export earner for Bangladesh. The sector accounts for 83%
of total export earnings of the country.
4. Before Bangladesh, RMG sector was seen in Sri-Lanka but suddenly stopped by the
“Tamil Tigers”. After that, they came to Bangladesh and started producing garments
for the first time.
Before the establishment of Desh Garments Ltd in 1978, a handful of Bangladeshi
RMG companies competed in the sector, but struggled to export garments. This
changed in 1979 when Bangladesh tentatively took its first steps into the global
apparel trade when it sent a small consignment worth 13 million Francs to a Paris-
based company. Soon after, South Korean company, Daewoo, reluctant to invest in
Bangladesh, nevertheless, forged a technical partnership with Desh and agreed to
train 126 Desh employees in South Korea for 18 months. There Desh employees
learned how to conduct an assembly-line process. In 1980, Desh’s Chittagong
garment factory was the largest in Bangladesh with 450 machines and 500
employees.
(Desh Garments-1980)
As Desh prospered, numerous companies entered into the RMG sector. Many of
them were started either by ex-Desh employees who were trained in South Korea,
or by new start-ups that poached Desh employees for their knowledge and expertise.
Although the Bangladesh government did not realize the potential of the RMG sector
in its early stages, in 1982 the government began to provide several incentives such
5. as the duty-free import of plant and machinery, cash inducements, and bonded
warehouse facilities.
By 1988, the number of garment producers reached 664. At present, there are over
6,000 RMG factories and about 1,000 Apparel buying houses exporting numerous
garment products to all major international markets. For fiscal year 2018-2019,
Bangladesh exported $40.53 billion worth of RMG or 6.4 percent of the global
apparel market share. Domestically the RMG sector represents 84 percent of
Bangladesh’s exports. About 75% foreign currency are earned by RMG. The
Bangladesh government has recently fixed merchandise export for the current fiscal
year (2022-23) at $58 billion.
Bangladeshi garments industry has a famous reputation in the world’s competitive
garments market. Bangladesh is far ahead of other garments manufacturing countries
due to its ability to produce a high-quality product at a low price than other garments
manufacturing countries. As result, new importers are willingly coming into our
country to place their orders, where most of them are coming through garments
buying houses as they have no enough idea to place order and execution here. As a
result, buying a house plays an important role in the Bangladeshi Ready-made
garment manufacturing sector.
6. Contribution of the Garments Sector in Bangladesh Recently
The RMG industry makes a substantial contribution to the Bangladesh economy.
The RMG sector has grown at a rapid pace during the previous decade. The RMG
industry accounts for around 76 percent of Bangladesh’s overall export profits.
Statistically, Bangladesh’s RMG sector earned US$ 5,686.06 million in FY 2003-
04; in FY 2004-05, the value was US$ 6,417.67.67 million, in FY 2005-06, the value
was US$ 7900.80 million, in FY 2006-07, the value was US$ 9,211.23 million, in
FY 2007-08, the value was US$ 10,699.80 million, in FY 2008-09, the value was
US$ 12.35 billion, and finally in FY
These are the crucial success criteria in Bangladesh’s RMG sector:
01. A large worker force,
02. Human resources who are qualified and skilled
03. Technological advancements,
04. Government assistance for textiles and clothes
05. Zones of special economic and export processing,
06. Establishment of textile and clothing settlements
07. The motivation to use local inputs,
08. Duty exemption for the importation of inputs/machines
09. Reduced income tax,
10. And foreign assistance such as GSP, GSP+, duty-free access, and so on.
Strategy is everything in business. When we consider the essential components
strategically, the following points spring to mind:
01. Cost-Effective Strategy,
02. New Product Development Strategy,
03. Product Diversification Strategy, and
04. Market Diversification Strategy are all examples of strategies.
7. How the Garments Industry is Progressing
According to a recent article in the Dhaka Tribune, Vietnam has surpassed
Bangladesh in the global clothing industry, becoming the world’s second-largest
exporter of readymade garments (RMG). China is the first. Bangladesh RMG is now
ranked third in the international market.
Bangladesh’s worldwide market share in garment exports was 6.8% in 2019, up from
6.4 percent the previous year, according to the World Trade Statistical Review 2020.
Bangladesh will export $28 billion in clothes in 2020, accounting for 6.3 percent of
the global market, while Vietnam will export roughly $29 billion.
Due to the Covid-19 epidemic, both Bangladesh and Vietnam profited less from
garment exports in 2020 than the previous year, although the magnitude of the drop
differed. Bangladesh’s revenues fell by 15% in 2020, according to the World Trade
Organization (WTO), while Vietnam’s fell by 7%.
The BGMEA specialists believe that the growth rate has slowed as a result of
Bangladesh’s shutdown last year, although Vietnam’s industries did not cease
production or export for a single day.
With hurdles on one side, the Bangladesh ready-made garment business has a better
future ahead of it; at least, that is what statistics and data have led us to believe. We
are more optimistic about the prospects of our RMG business as a result of a recent
research conducted jointly by the United States Fashion Industry Association
(USFIA) and the University of Rhode Island (URI).
Better labor standards and safety conditions put in place following the employees’
deaths played a significant effect. With these enhancements, Bangladesh has become
an appealing alternative for multinational apparel firms, particularly those trying to
8. diversify production locales and, more lately, those concerned about how global
trade disputes may influence their bottom line.
With hurdles on one side, the Bangladesh ready-made garment business has a better
future ahead of it; at least, that is what statistics and data have led us to believe. We
are more optimistic about the prospects of our RMG business as a result of a recent
research conducted jointly by the United States Fashion Industry Association
(USFIA) and the University of Rhode Island (URI).
Some top Bangladeshi garment manufacturer’s name and their details have
presented below,
01. Ha-Meem Group
The country's largest industry is the Ha-Meem Group. They are maintaining the 26
garments factories around the country in Bangladesh. The ownership status of this
garment manufacturing industry is a private company. They are also managing
another company. Every year, they are earning a large number of dollars.
The major products of this garment industry are Hi-Fashion Denim Jeans, Men's
Shirts, Dress Pants, Jackets Facility, and others. They are achieving so many rewards
9. in their manufacturing activity. The head office of this garment manufacturing
industry is situated in Tejgaon, Dhaka, Bangladesh.
02. Beximco (Textiles & Apparels Division)
Beximco is also a popular leading garment manufacturing company in Bangladesh.
They are emerging their garments sectors as a fashion. This garment manufacturing
company was situated in 1997 in Dhanmondi, Dhaka, Bangladesh, and the factory
of this company was located in Savar, Dhaka, Bangladesh. The ownership structure
of this company is a Joint Venture Company. They are producing ladies' fashionable
products and others.
03. Square Fashions Limited
Square Fashions Limited is another reputed leading manufacturing industry in
Bangladesh. They are the part of Square Group of Companies that are producing a
different number of manufacturing textile products and other types of garments
products.
They are providing their servicing not only in Bangladesh but also around the world.
The mission and vision of this manufacturing company are to fulfill the demand of
10. customers. The corporate office of this garment company in Uttara, Dhaka,
Bangladesh.
04. DBL Group
DBL Group is a leading multi-dimensional garment and textile manufacturing
company in Bangladesh. The garments business unit is one of the key businesses of
DBL Group. It specializes in manufacturing and exporting quality knit garments.
They are supplying their manufacturing products in the international market. The
corporate office is situated in Kawran Bazar, Dhaka, Bangladesh. Their garment
products are made in a sustainable and eco-friendly manner. They are very popular
for their high clothing producing facilitates.
05. Opex Sinha Group
Opex Sinha Group is producing it's quality full products and providing their services
in local markets in any areas and international markets. They are exporting their
11. readymade garments in the international market at a high level. They are situated in
Kanchpur, Dhaka, Bangladesh
06. Fakir Group
Fakir Group is another leading manufacturing export-oriented garment company in
Bangladesh. They are providing their services including level designing, garments
manufacturing, and knit garments. The garments factory of this manufacturing
company and factory is located in Narayangonj, Dhaka, Bangladesh.
07. Epyllion Group
Epyllion Group is the largest manufacturing readymade garments industry in
Bangladesh. The product of these Garments Company is knitwear and garments.
12. They are providing their manufacturing products all over the local areas of
Bangladesh and the international markets including Europe, Australia, and the USA.
There are four sections of this garment industry.
08. Standard Group
Standard Group is a leading clothing manufacturer and exporter in Bangladesh that
produces high-quality knitwear for men, women, and children. The company utilizes
modern technology and equipment and provides fair wages and working conditions
for its employees. It has won multiple awards and is a member of BGMEA to
maintain safety, labor, and environmental standards.
09. Asian Apparels Limited
Asian Apparels Limited is a clothing manufacturer and exporter based in
Bangladesh, that produces knitwear and woven apparel. It is a prominent supplier of
high-quality garments for major brands and retail companies worldwide. The
company is dedicated to providing a safe and healthy working environment for its
employees. The skilled workforce is trained to produce garments of superior quality,
ensuring customer satisfaction.
13. 10. Viyellatex Limited
Viyellantex Limited is an export-oriented and leading manufacturing company in
Bangladesh that was situated in 1996 in Bangladesh. The ownership structure of this
industry is a private company. This garment industry is presenting a powerhouse and
fabricating services. They are providing house printing and printed t-shirt facilitated
services for their customers. There are eight garments’ groups for this industry. The
corporate office of this garment manufacturing industry is Airport Road, Dhaka,
Bangladesh, and started its journey in 2000.
The first knit manufacturing industry in the countries are in this industry. They are
producing their services including knitting, accessories, printing facilities, dying,
spinning, and others. The main focus of this manufacturing industry is reaching its
facilities at a global level. They are also achieving so many awards for their services.
