Readymade Garment & Textile Industry in Bangladesh

World Textile Conference II, Mumbai

September, 2016

Growth & Great Opportunities

• Asia - the biggest home of textile

• Global clothing exports share:

– China 39.3%

– Bangladesh 5.9%

– Vietnam 4.8%

– India 4.1%

• One of the largest markets having 4.43 billion population

445

175

26 22 18 15 7 6 60

50

100

150

200

250

300

350

400

450

500

World China Bangladesh Viet Nam India Turkey Indonesia Cambodia USA

WORLD CLOTHING

TRADE 2015

IN BILLION US DOLLAR

SNAPSHOT

0.1

2

0.6

2

2.2

3

4.3

5

6.4

2 12

.50 17

.91

19

.09

21

.52

24

.49

25

.49

28

.09

0.9

3

1.9

2

3.4

7

5.7

5 8.6

5

16

.20 2

2.9

3

24

.30

27

.03

30

.19

31

.21

34

.26

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

RMG Export vis-a-vis Total Export Trend of BangladeshValues in Billion US$

RMG EXPORT TOTAL EXPORT Expon. (RMG EXPORT)

Growth of RMG IndustryFY1985-FY2016

RMG Industry at a Glance

Last 10

years

compound

annual

growth

rate

(CAGR) is

12.43%

28.09

31.54

35.40

39.74

44.60

50.07

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

US$ 50 billion vision by 2021 needs 12.25% growth every year

PEOPLE AND

COMMUNITY

SUSTAINABLE

HIGHER VALUE

ADDITION,

FASHION &

DESIGN

DEVELOPMENT

EFFICIENT &

COST

COMPETITIVE

6

Strategies for Leadership

Fit for Operation:

98.96%

Closed:

39

(1.04%)

Inspected factories:

3746

(100%)

Safer Production in Bangladesh

8

Present status:

Potentials:Suits/BlazersLingerieJacketsSwimwears/sports-wear

CategoriesExport

Share%Trousers 28.34%T-shirts 24.69%Sweaters 11.32%woven shirts 8.95%Knitted shirts 3.27%5 categories 76.57%

70% basicStrong in this segment

20% midapproaching

10%top

Opportunities in Product Diversification

Vintage Denim Studio Ltd: LEED Platinum Factory -Certified by US Green Building Council

Genesis Washing Ltd., the first ever Platinum LEED certified washing plant located in Bangladesh

WORLD’S BEST FACTORIES ARE IN

BANGLADESH

Till date 35 projects have been certified by USGBC of which 33 are RMG factories. 11 of them are Platinum certified. More importantly a further 230 LEED projects are registered in USGBC of which around 150 are from RMG sector.

BANGLADESH

APPAREL

AT

A

G

LA

NC

E

A PLATINUM LEED

CERTIFIED WOVEN FACTORY

A PLATINUM LEED CERTIFIED

WASHING FACTORY

Backward Linkage Textile Sector

• 1430 textile mills are in operation

• capacity of yarn production 2100 million kg

• capacity of fabrics production is 2800 million meters

• 85% of knitted fabrics demand met locally

• Huge potential in non-cotton items

• Opportunities for Foreign Investments in textile sector

OPPORTUNITIES THROUGH MARKET

DIVERSIFICATION

12

The Win-Win Model

Collaboration between buyers and suppliers in – technology up-gradation a

– Improve workers’ skills and efficiency

– resource efficiency and environment friendly production

FY 2009 FY2016

GDP Growth 5.74% 7.05%Manufacturing Growth 6.68% 10.30%

Export $15.57 billion $34 billion

Import $22.51 billion$42.92 billion*Provisional

Private Investment as % of GDP 19.67% 21.78%

FDI Inflow (In US$)$960.50Million $2.24 billion

Per Capita GNI (US$) $676 $1466

Poverty rate 40% 22.4%

Remittance $9.69 billion $14.93 billion

Foreign Exchange reserve $15.57 billion$30.14Billion

Inflation 8.7% 5.92%

BANGLADESH ECONOMY STANDING

STRONG

Bangladesh has

become the Lower

Middle Income

Country from an

LDC based on GNI

performance

Vision to graduate

to a Middle Income

Country by 2021

Becoming a

Developed Country

by 2041

FAVORABLE

FISCAL & NON-

FISCAL POLICIES

Geographic Location

117 MILLION MOBILE

PHONE USERS

33% INTERNET

PENETRATION

DUTY FREE MARKET

ACCESS IN ALMOST

ALL DEVELOPED

COUNTRIES & FEW

DEVELOPING

COUNTRIES

BANGLADESH: THE EMERGING TIGER

Thank You !