textile industry in bangladesh

TEXTILE INDUSTRY IN BANGLADESH

RAKIB HOSSAIN (11.02.08.047)

INTRODUCTION60% of the export contracts of

western brands are with European buyers and about 40% with

American buyers. Only 5% of factories are owned by foreign

investors, with most of the production being controlled by local

investors

Contribution to the people

Huge economical aspect

Major exporting products

HISTORY

From 1947 to 1971, most

textile industries were owned by West

Pakistanis

Nationalization of industries

after 1971 and rise of BTMC (Bangladesh Textile Mills Corporation)

Gradual Denationalizati

on of production of textiles after

1982

New Industrial Policy (NPI), Creation of

Export Processing

Zones (EPZs) & encouragemen

t of direct foreign

investment

STRUCTURE OF BANGLADESH’S TEXTILE INDUSTRY

The public sectorThe

handloom sectorThe

private sector

SUB-SECTORS OF TEXTILE INDUSTRY

Spinning Weaving/ fabric manufacturing Knitting Dying-printing-finishing Export Oriented Garments Another part can be added- Washing

plant

SLSub-sector No. of units Installed Capacity Production

Capacity in a year

1 Spinning 385 8.7 million spindle0.23 million rotor

2050 million kgs

2 Weaving/Fabric manufacturing 721 17250 shuttle less13500 shuttle

2150 million meter

1. Weaving

2. Denim

3. Home Textile

4. Knitting

5842017100

3 Dyeing-Printing-Finishing 233 2200 million meter

4 Export oriented garment industry 5150 561 million dozen

ECONOMICAL ASPECT

Single source of economical growth in Bangladesh’s rapidly developing economy

In 2010, people under poverty line become 31.5% from 2005’s 40%

The garment industry accounts for 76% of the country's export earnings and 10% of its GDP & 40% of industrial value addition

The export value of the readymade garments are expected to touch 22 billion USD this fiscal year. In the fiscal year 2010-2011 country’s apparel export was 17 billion USD

RMG Export Chart

EDUCATIONAL RESOURCES

One dedicated textile university, one dedicated clothing university (in the pipeline), one dedicated research institute

Textile post graduation (masters) in 1 public university and 2 private universities

Textile under graduation (degree) in 2 public universities, 5 government textile colleges and 13 private universities, about 6 private institutes

Textiles diploma in 2 government institutes, (3 more in the pipeline), 67 private institutes

Textile vocational courses in 40 government institutes, (23 more proposed), 5 private institutes.

HUMAN RESOURCES LEVEL Existing At

2009Required In 2014-15

Gap

Ph .D 25 1087 1062

Masters 65 4708 4643

B. Sc. Engg./Tech.

2034 19996 17962

Diploma 3520 44863 41343

Total 5644 70654 65010

SUCCCESS OF TEXTILE SECTOR

Economical boost of the country

2nd leading country in global clothing market

Employment of about 5.5 million people

Empowerment of Women

Self sufficiency

Radically transformed the socio-economic condition of the country which raised awareness regarding children education, health safety, population control, disaster management and so on

Chart of export

Share in global market

REASONS BEHIND THIS TEXTILE BOOM

RESOURCES

OPPORTUNITIES

POLICY DECISION

PROBLEMS FACED BY THE TEXTILE INDUSTRY

Large demand-supply gap

Insufficient & irregular power supply

Accession of China in WTO

Extremely high bank charges and interest rates

High handling charges for shipping

Lack of co-ordination among various government agencies

Political issues

FAILURE IN THIS INDUSTRY

01 •No international qualified brand•Insufficient Cotton Production

02 •Inadequate skilled workers•No separated area for textile industry

03 •Safety Issue •Insufficient Labor Law regarding this industry

ONE THING TO SAY , WHILE MOST OF THE COUNTRIES WILL STRUGGLE TO MAINTAIN THEIR INDUSTRY, BANGLADESH MOST LIKELY WILL GROW FURTHER !!

Conclusion----------------------------

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