Course Title: Strategic Management

Course ID: MGT490 Section: 02

Submitted By

Ummay habiba 1631097

Fahim ahmed 1710431

Esraah ahmed 1721411

Md. Minhazul islam abir 1721755

Sajib ahmed 1730460

Md. Tohidul islam arafat 1731645

Submitted To

Mr. Iftekhar mahfuz

Letter of Transmittal

28th
August, 2021

Mr. Iftekhar Mahfuz

School of Business

Independent University, Bangladesh

Subject: Analyzing whole textile industry and beximco textile ltd

Dear sir,

I would like to report that as you have requested and gave us the consent to work on the report on
Analysis textile industry and beximco textile ltd. This report is an essential part of our course,
and I have attempted my best to work on it precisely and earnestly with the goal that I can make
an instructive report. It is worth mentioning that, I enjoyed the whole event during my working
period. It is our group effort to expand knowledge and what is going on as the practical field of
activities right now. I hope that if I have any accidental error and lapse that may have entered
into this report will be considered with sympathy.

Therefore, I pray for your kind consideration in this regard. I will be very grateful if you accept
my report and oblige thereby.

Thank you.

Sincerely,

Habiba

Esraah ahmed

Abir

Sajib

Arafat

fahim
Table of Contents
Industry size and growth..........................................................................................................................4
Maturity of the Industry...........................................................................................................................6
External Economic Factors and their Effect on the Industry................................................................6
Ecological...............................................................................................................................................7
Legal.......................................................................................................................................................7
Social Analysis.......................................................................................................................................7
Seasonality.................................................................................................................................................8
Technological Factors...............................................................................................................................9
Regulatory, Political, and Legal Concerns............................................................................................11
Competitive Environment and Changes in the Competitive Environment.........................................13
Key Challenges Facing the Industry......................................................................................................14
Company’s Steps to Meet Three Key Challenge facing the industry..................................................17
OVERVIEW OF BEXIMCO TEXTILE LTD......................................................................................19
References................................................................................................................................................23
Industry size and growth
Bangladesh has turned out to be domestic of the world’s second-biggest garment enterprise.
They are coming to the back of China for exporting all types of garments. The readymade
garment is a brand-new fashion inside the entire world. It contributes 20% to Bangladesh’s gross
home product.

In the beyond seven years, Bangladesh has had a beneficial interest in RGM through income
sales beginning from $19 billion and developing it to extra than $30 billion. It’s a super success
through the boom of 79% in much less than 10 years. They have survived a dire disaster in
which they misplaced their workers. But this tragedy helped them through gaining higher
surroundings this is extra steady and healthful for workers. These adjustments made them
appealing inside the RGM market.

Bangladesh’s fabric and clothing enterprise has grown through leaps and limits over the last
decade, making it the world’s second-biggest exporter of garments. The RMG sector, coupled
with different apparel exports money owed for as much as 81% of the country’s export earnings,
and the swiftly developing clothing enterprise contributes as much as 20% to Bangladesh’s GDP,
extra than another secondary enterprise sector. Clothing producers in Bangladesh are main the
monetary increase within the country.

The fabric and apparel industries offer an unmarried supply of boom in Bangladesh's hastily
growing economy. Bangladesh's fabric enterprise has been a part of the alternates opposed to
resource debate. The encouragement of the garment enterprise of Bangladesh as an open
alternate regime is argued to be a far greater powerful shape of help than the over-season source.
Bangladeshi fabric enterprise and its shoppers have confronted criticism. Many are worried
about feasible employee protection violations and are operating to have the authority’s growth
protection standards. The position of ladies is crucial inside the debate as a few argue that the
fabric enterprise has been a crucial approach of monetary protection for ladies whilst others
consciousness at the reality that ladies are disproportionately fabric people and as a result are
disproportionately sufferers of such accidents. Measures were taken to make sure higher
operating conditions; however, many nonetheless argue that greater may be done.

Growth trends

In 1971, after the liberation battle Bangladesh's economic system became “agriculture”
orientated. At that point, Bangladesh adopted “export” orientated industrialization with the aid of
using that specialize unfabricated. If we are saying greater correctly it is a prepared-made
garment (RMG) area. Though the records of fabric enterprise on that may be very rich. From the
sixteenth to 18th century below the Mughal rule bangle become one of them aximumessenti
allocations for fabric production. For example, bangle produced greater than 50% of fabric and
round 80% of silk imported with the aid of using Dutch from Asia again then. Now a day’s
present day fabric enterprise performsone of the maximum essential roles in Bangladesh
economic system. Between 2011/2012 and 2017/2018 the boom fee of fabric export became 60%
and it's far approximately 85% of nations overall export. Now Bangladesh is 2dbiggest RMG
exporter in the world. They are aiming to earn $50 billion from this area in 2020/2021. In FY18
(financial year) Export Promoting Bureau (EPB) registered 8.76% boom in garment sectors.
Which became 1.51% better the set target. In this newsletter, I will talk destiny of fabric and garb
enterprise in Bangladesh.
Maturity of the Industry

A mature enterprise has exceeded each the rising and boom levels of enterprise boom. The length
of the marketplace may be measured both as unit income or the turnover of a product or an
enterprise realizes in a given period. The boom of the marketplace is the proportion alternate
with inside the length of the marketplace over a given period.

Here are 4 steps companies can take to efficiently boom income and increase marketplace
proportion throughout the adulthood stage: -

1. Target a specific marketplace segment, ideally the best spenders....

2. Focus in your coin’s cows. ...

3. Redesign your product...

4. Invest in studies and development

External Economic Factors and their Effect on the Industry

Economic Factors are the factors that affect the economy and include interest rates, tax rates,
law, policies, wages, and governmental activities. These factors are not in direct relation with the
business but it influences the investment value in the future. customers and suppliers may be the
most important people you deal with. Suppliers have a huge impact on your costs. The clout of
any given supplier depends on scarcity: If you can't buy anywhere else, your negotiating room is
limited. The power of your customers depends on how fierce the competition for their dollars is,
how good your products are, and whether your advertising makes customers want to buy from
you, among other things

Societal

Bangladesh is now no longer technologically so developed as compared to other big giants inside
the international markets. It remains the usage of out-of-date technologies due to the fact they
have to pay a high amount of money to acquire the ultra-modern generation. Although,
authorities have given an obligation lose import of generation and equipment for clothes, it is
increasing the fixed and operational cost. If they could purchase it from the local market, it
would be a blessing for the clothes industry of Bangladesh. China, Vietnam, Taiwan and so forth
are extra superior in technological advantage.

Ecological
The ecological impacts of clothes on the environment are now no longer well enough to describe
due to negative waste control. The unsuitable drainage machine is mainly responsible for it.
Besides, authorities are now no longer taking enough steps for waste control in Dhaka city.
Sound and air pollutants are the final results of this industry.

Legal
Government always encourages the clothes industry through its supportive hands maximum of
the time. That’s why a massive wide variety of agencies had been set up here and there with
inside the city. But current hearth place in a few terrific clothes agencies has drawn the sight of
the authorities. It has increased a few legal and compliance issues. The workers do now no
longer get proper wages and remuneration, working environment and safety from the agencies
(Muhammad, 2011). That’s why authorities have intervened on this trouble through imposing the
regulation and order system

Social Analysis
Bangladesh is a rustic of approximately one hundred sixty million humans and a huge quantity of
her humans are unemployed. Women are the maximum unused exertions pressure in our
economic system and those who are working are not getting nicely compensation packages as
compared to men (Bhuiyan, 2012). And it is clothes that have helped them to engage in the
mainstream of the economic system. About 78% of general clothes employee are girl who are
considerably contributing to their families living in slums and villages. Hence, they are taking
part in choice-making of families. From this factor of view, the social impacts of clothes are as
follows.

 Women empowerment has been completed in non-public and public sector.

 They are contributing to boom savings.
 They are involvedpopulace control.

Seasonality

The textile industry withinside Bangladesh is a prime zone of the United States economy.
Bangladeshi Textiles enterprise has a well-known recognition withinside the international's
aggressive clothes market place. The textile industry of Bangladesh is specialized in textile
goods, knitwear, and woven apparel. These merchandises are the pinnacle in grabbing the export
profits for the United States. The apparel product has a restrained existence cycle (summertime
season merchandise etc.), outstanding variety, volatile-unpredictable call for, and a lengthy-
inflexible deliver process. The call for facet sports of the fabric-apparel enterprises compasses
understanding the expectancies of users, the developments of the age, upcoming events, and
seasonal variations, etc. that are connected to call for forecasting and ultimately the cap potential
to layout the proper product. These sports rise from the studies and improvement divisions of the
firm. The majority of fabric enterprise product strains are seasonal, and new strains are created in
numerousinstances12 months. Traditionally, the fabric enterprise is directed through a set
calendar of alternate suggestions and marketplace weeks prepared around a two-season
technique to product ranges, specifically Spring/Summer and Fall/Winter. The apparel delivery
chain consists of many industries inclusive of textile producers, material producers, apparel
producers and stores. In addition, a terrific proportion of apparel sourcing has shifted from home
to offshore production. The latency between the date of receiving the order to the cargo of the
merchandise to the purchaser is the lead time. In ensure scenarios, the lead time may be lengthy
as compared with the promoting season, and purchaser call for might also additionally trade
swiftly with style, taste, seasons and occasions. Hence, apparel stores region an emphasis on
product availability earlier in the promoting season and the date of sale. Retail sale forecasts use
preceding years' income volumes; advertising and marketing move inclusive of charge changes,
promotional efforts or channels of distribution; outside information applicable to their
marketplace; and statistics on fashionable economic, political and cultural conditions. Based on
the company's income forecast, the executives expand an income plan that consists of the
product, charge, region, amount and time. However, forecasts have emerged as more and more
erroneous with anomalous climates. Many apparel enterprise specialists have mentioned the
significance of climate as a retail sale forecasting issue. Researchers endorse that unpredictable
climate is one most important issues of uncertainty in apparel stores. Furthermore, Agnew
concluded that the apparel retail marketplace is a greater touch to the climate than the whole
retail marketplace. Gone are the times while income has been generated most effective two
times12 months with the 2-maximum described and conventional retail seasons of
Spring/Summer and Autumn/Winter. With growing consumerism, consumers now hunt across
the12 months for brand spanking new collections to get dressed up solely for unique occasions,
festivals, and holidays. Observing this now well-hooked-purchasing behavior, visible in all most
important markets across the international. a brand-new retail calendar that each exporter has to
purpose at, as all stores big, small and nearby are adopting those seasons for offering new
collections at a fast pace. With every12 month beginning with a sparkling set of New Year
resolutions made through consumers international over, and stores selling objects geared toward
those resolutions associated with well-being, private organization, de-cluttering houses and
wardrobes, the ‘Resolution’ purchasing season is the primary retail season of the 12 months. This
season brings with it a sparkling pair of products focused toward the institution searching for
new garments to kick begin their new 12 months, and additionally the ones searching at thrift
purchasing and second-hand products. The past due spring hypersensitivity season much like the
cold, cough and flu season that falls returned it inside November, is a main season for the
pharmaceuticals. Still worthwhile for clothing stores and producers coping with technical
textiles, this season contains the largest delivery of the anti-hypersensitivity mask and overall
performance apparel for consumers. The largest style season after resort, Spring/Summer and
pre-fall, sparkling collections starting from clothing which blanketed outerwear because the most
important category, different iciness and-ons like shoes, mufflers, stoles, gloves and caps
collectively shape this season’s products. Seasonality in income strongly impacts retail
enterprise, mainly due to wonderful dates. For instance, Christmas, accompanied through
Mother’s Day, is mentioned as selling the better income volume, additionally accounting for
posterior inventories for contrast reasons. Other dates also are well worth notice, specifically:
Father's Day, Valentine’s Day, Children’s Day, and non-secular festivals.

Seasonal modifications affect consumers' reputation of the want for clothing. The alternate of
seasons affects the textile industry, from style to entertainment. In style, designers from all
around the international create garments for the 4important seasons, with one-of-a-kind patterns
and fabrics. When we pass into the less warm months, shops regularly transfer gears, filling their
cabinets with jumpers and jackets. Demand and hobby in merchandise are usually suffering from
seasons. In different sectors like travel, seasonality affects the range of human beings reserving
vacations at one-of-a-kind destinations. Many companies, like the gaming business, for example,
even tailor their offerings to preserve up with the modifications.

Technological Factors

The textile industry is a worldwide enterprise. This industry is one of all the most important
withinside the global and employs tens of thousands and thousands of people. Textile substances
are crafted from fiber, yarns, and fabrics. Textiles may be determined in a lot of substances,
starting from the garments in your closet to the air filters on your vacuum cleaner. While the
fabric enterprise's awareness became firstly at the top product, nations have begun out to
awareness of the technological know-how and generation factor of textiles. The cap potential of
a rustic to create new machines and generation offers its producers a fair large percentage of this
market, which, in turn, affects extra profits. In evolved nations, human-system interactions might
be pushed with the aid of using demographic extrude and a scarcity of professional employees.
Trends factor to incorporate manufacturing technology and hybrid techniques wherein numerous
steps are grouped right into an unmarried system. Mass customization leads to style and garb
manufacturers to supply their fashions inside the proximity of stop consumers. Innovations
withinside the fabric and style enterprise may be visible withinside the preliminary packages of
human-system communication, including voice-managed weaving devices. Other changes,
including synthetic intelligence in large information, will take longer. Some technology will take
numerous years till they're mature enough, including completely automatic spinning. When
evaluating virtual solutions, the sensor-assisted manufacturing information collection. The garb
enterprise goes via a progressive extrude referred to as the Fourth Industrial Revolution. It can
track groups with the assist of contemporary-day technology including IoT, synthetic intelligence
(AI) and cloud computing and offering offerings withinside the manufacturing method with
entire impartial delivery. Technology has an excellent effect on fabric and garment enterprises.
Through this progressive extrude, a brand-new horizon of capacity has been opened withinside
the garment enterprise of Bangladesh. With some experimental effects, its miles tested that the
go back on generation is a whole lot better than the funding on business equipment. According to
True, the enterprise’s 4. zero is pushing groups to combine virtual technology including the
Internet of Things (IoT), radio-frequency identification (RFID), robotics, augmented reality,
additive production and cloud generation. Despite investing in a superior and high-priced
generation, groups are failing to attain the preferred balance via it. Achieving sustainability isn't
always viable without changing the big information acquired via automation and digitization into
essential information. Nowadays we will create style via a laptop software program, wherein
case time might be saved, and this painting would require little or no manpower. The country’s
pinnacle garment industries at the moment are leaning closer to Laptop-aided layout software
programs. With the assist of this software program,it's miles now viable to without problems
create styles of various elements of various clothes and keep them in laptop memory. This
smooth replica of the sample may be made right into a sample of clothes of various sizes with the
aid of using making it larger or smaller. The current emergence of IoT has created an
interconnection among a couple of technology, which has made it viable to create stepped
forward tracking and coordination amongst commercial enterprise partners. IoT has the
functionality to paintings on numerous elements of style layout, development, and production in
fabric and garb industries. the country’s exceedingly reasonably-price desertions pressure and a
few proficient industrialists have laid the inspiration for the gear enterprise. Despite numerous
adversities and obstacles, the readymade clothes enterprise has been capable of the advantage of
any such unique region in exports. But new marketers are being born all around the globe, the
upward thrust of industrialists. New technologies are being born all of the time, a few are semi-
automatic, and a few are automatic. With the usage of those technologies, on the only hand, time
is reducing and on the opposite hand, manufacturing is growing manifold. The range of
employees is likewise declining in comparison to that, ensuing in a discount in overall
manufacturing costs.
The demanding situations dealing with the fabric and textile industries withinside the present-day
effective international consists of efficiency, sustainability and spark off reaction to patron needs.
The business ecosystem, the fashion of sustainable enterprise globally and the consumer-pushed
economic system inspire business establishments to be greater innovative. Because generation-
savvy purchasers are greater inclined to spend cash for environmentally aware and
environmentally pleasant merchandise. As a result, the fabric has to be paintings very
strategically withinside the Fourth Industrial Revolution via way of means of focusing on the
social, monetary and environmental three-pronged approach. It has emerged as tough for textile
and garment factories now no longer best to supply first-class merchandise and on time, however
additionally to hold long-time period sustainability. If its miles stated that we're long way
beforehand in phrases of generation used withinside the gear enterprise, then it could be visible
that the usage of generation in a number of the pinnacle industries withinside the theUnited
States of America is relatively better. In addition, the use of the recent generations likewise
beginning to extrude the configuration of the old school machine. But even then, in lots of
industries, it's a milestone the less now no longer viable to apply all of the generations withinside
the proper way.

Buyers of textile enterprises will usually need to shop for excessive excellent merchandise at low
prices. As a result, our aggressive marketplace is slowly increasing. Because we're nevertheless-
depending loads on traditional methods. So, there may be no opportunity to the use cutting-
degeneration in fabric and clothing enterprise to maintain and enhance our role in this aggressive
marketplace. But the wish is that at the gift maximum of the clothing industries in Bangladesh
have begun out the use of cutting-degeneration and equipment.

Regulatory, Political, and Legal Concerns

Regulatory

The regulatory position of multinationals displays3 interconnected however now no longer

always at the same time steady considerations. The first is a reputation that effective supply
chain shoppers can without delay and in a roundabout way act to pressure down employment
requirements in dealer Organizations. The 2d is an acknowledgment that growing international
locations often do now no longer own a regulatory ability and/or willingness to counter such
destructive effects. The 0.33 is the perception that its miles feasible to apply the delivery chain
electricity of multinationals to improve, in place of harm, labor requirements in dealer businesses
The view that labor requirements had been had to fight the chance of aggressive pressures riding
down employment situations has been expressed with the aid of using a number social thinkers
from as early because of the nineteenth century. The attention at the regulatory position of
multinationals displays3 interconnected however now no longer always at the same time steady
considerations. The first is a reputation that effectively delivers chain shoppers can without delay
and in a roundabout way act to pressure down employment requirements in dealer businesses.
The 2d is an acknowledgment that growing international locations often do now no longer own a
regulatory ability and/or willingness to counter such destructive effects. The 0.33 is the
perception that it miles feasible to apply the delivery chain electricity of multinationals to
improve, in place of harm, labor requirements in dealer organizations. A new guiding principle
aimed toward stemming unauthorized subcontracting in Bangladesh's fabric and garb quarter will
assist manage its "unplanned" expansion - however, at a chance of accelerated expenses and
misplaced jobs, enterprise proprietors warn. They favor the law of subcontracting however insist
"effective" and "fair" implementation of policies are essential. The recommendations set policies
on workers' welfare, labor rights and place of business safety, and insist corporations take out
organization coverage for workers. It additionally insists subcontractors be part of both the
BGMEA or the intention of the brand-new rule is to permit enterprise in institutions to reveal
subcontractors' compliance with different requirements inside the recommendations.

Political

Bangladesh is the unexpectedly develop monetary united states of America. The textile and
apparel region are the principal supply of forex earnings. the contribution of textile clothes
enterprise withinside the global garb region is likewise very significant, presently it has grown to
be second biggest exporters of clothes merchandise withinside the global. Besides these nice
achievements, the arena is dealing with a few issues inclusive of political instabilities. The
political events of any united states of America are meant to stay for social and monetary
tendencies in their countries. Their political sports are anticipated to be for the betterment of the
situation of the United States of America and the people, however, matters aren't passed off
usually in a favored way. When political events of a rustic take adversarial function closer to
every other, the instabilities occurred. It hampered the improvement of a rustic. Renowned
marketers have suffered a whole lot because of hartal issues. Trucks wearing items and
merchandise have been burned in Dhaka-Chittagong and Dhaka-Mymensingh motor was
inflicting a large lack of capital. Every time throughout the election, political instability has
created sufferings for the marketers who should have to lead the United States of America to
tendencies. The scenario throughout the election if now no longer be controlled, the personal
sectors could be the best sufferers. The textile region is large and it has many methods and
techniques to be executed internally or externally. If one in all of them is interrupted, the
complete method is challenged. Hartals have challenged every method which includes
transportation. The textile enterprise presents one hundred fifty lakhs of employment wherein
80% are women. During hartal, their attendance is less. As their attendance is less, because of
absence a number of the method are stopped. Thus, productiveness decreases. Production and
productiveness are hampered throughout the hartal.
 Legal Concerns

There exists a few country-wide recommendations for environmental control it inside the
fabrication of Bangladesh. These prison devices act as a catalyst for enhancing the whole
excellent commercial surroundings withinside the fabrication of the country. The significance of
environmental consideration, occupational health &protection and land acquisition associated
with fabric region has been identified in some of the country-wide documents. The foremost
applicable policies, acts, regulations and plans The Textile Products (Labelling and Fiber
Composition) Regulations specify the data approximately the fiber content material of clothes
that have to be provided. This can both be on a label on the garment, or the garment's packaging.
If you deliver to a wholesaler, the bill accompanying the order can include the data.

Competitive Environment and Changes in the Competitive Environment

The RMG (Readymade Garment) industry of Bangladesh noted the leadership of private
Enterprise, in this way the country’s successful transfer to a significant export-oriented economy.
The key products of this industry are Knit and Woven Shirts and Blouses, Trousers, Skirts,
Shorts, Jackets, Sweaters, Sportswear, and lots of more casual and fashion apparel. The country
features a small textile industry, but the quantity and quality of its output are unable to
completely meet the demand of the clothes industry. Most all of Bangladesh’s garments exports
are made up of imported textiles.

Economic Environment of Bangladesh: The financial system of Bangladesh is characterized by

the economy in Bangladesh certain sectors of the economy are left to non-public ownership and
free-market mechanism while other sectors have significant state ownership and government
planning. Once there was an outsized state sector in Bangladesh but the recent trend to
privatization has reduced state ownership of varied businesses. A number of the recently
privatized sectors are airlines, banking, customs, etc. this tends privatization is creating a positive
atmosphere for international business. As foreign firms can invest within the privatized sector
there'll be a positive impact on the economy of Bangladesh.

Social Environment of Bangladesh: Social value consists of social customs, practice, religion,
and social moral standards. Social value shows our moral standard ours. Without social values,
we cannot get older as complete social men. Within the past social values were more
conservative, rigid, and powerful. We all know that Bangladesh may be a conservative Muslim
country. People want to live more religiously. The young were more respectful to their superiors.
Smoking ahead of the superior was forbidden. People want to believe in joint families. But now
people are becoming more and more liberal. They follow religion in a much-relaxed way. Men
and ladies now mix frequently. Our social values are changing fast. There’s a transparent western
influence on our culture and values. Many of us now accept western values. The causes of these
social values are the satellite, television, globalization, free exchanges among the nations, and
trade. There are certain effects on our social values. Women are now playing a more important
role in several parts of our society. As western music, culture, and modes of life are becoming
more and more conversant in us, our social values also are getting westernized. People now
prefer living with a small family. There are rapid exchanges among different communities in our
society. Our social values reflect our moral standards, culture, and tradition. We should always
be more aware of maintaining these values. If we lose our values, we'll haven't any individual
identity as a nation. Our social values show our identity. Over 98 percent of its people are
Bengalis; the rest is Biharis, or non-Bengali Muslims, and indigenous tribal peoples.
Bangladeshis are especially pleased with their rich cultural and linguistic heritage because their
independent nation is partially the result of a strong movement to uphold and preserve their
language and culture. Bangladeshis identify themselves nearly with Bangla, their national
language.

Key Challenges Facing the Industry

Internal Issues Pose a Bigger Threat for Bangladesh’s Textile Industry: The industry goes
through one of the toughest periods in decades. The worldwide recession which has hit the
worldwide textile really hard isn't the sole cause for concern. The high cost of production
resulting from a moment rise in energy costs has been the first explanation for concern for the
industry. Depreciation of Bangladeshi Taka during a previous couple of years raised the value of
imported inputs. Additionally, double-digit inflation and therefore the high cost of financing has
seriously affected the expansion within the textile industry. Bangladesh textile industry exports
have skilled challenges during the last three years as exporters cannot effectively market their
products since buyers aren't enough visiting Bangladesh thanks to adverse travel advisory and it's
getting more and harder for the exporters to travel abroad. Additionally, he stressed that
government should take immediate measures to get rid of the slowdown within the textile sector.
The high cost of doing business is due to an intensive increase in the rate of interest which has
increased the issues of the industry. Also, loans availed crisis by the industry, hence, the quantity
of non-performing loans has reached an alarming situation. Moreover, power shutdowns may
end in massive unemployment leading to a law-and-order situation.

Lack of Research and Development (R and D) within the Cotton Sector: the shortage of research
and development (R and D) within the many especially within the cotton sector of Bangladesh
has resulted in the inferiority of cotton as compared to the remainder of Asia. Due to the next
low profitability in cotton crops, farmers are shifting to other cash crops, like sugar cane. It’s the
shortage of proper R and D that has led to such a state. The pesticide sector stands to profit from
stunting local R and D as higher-yield cotton is more pesticide-resistant.
Lack of Modernize Equipment: critics argue that the textile industry has old equipment and
machinery. The lack of timely modernizes the equipment and machinery has led to the decline of
Bangladesh's textile competitiveness. Thanks to obsolete technology the value of production is
higher in Bangladesh as compared to other countries like India, Pakistan, and China.

Finance Bill to Burden Industry Further: All Bangladesh Textile Mills Corporation has told that
the government’s actions aren't matching consistent with its expectations for the textile industry
and its smooth growth. Consistent with him, the reintroduction of minimum tax on domestic
sales would invite an unavoidable liquidity problem, which is already reached an alarming level.
Also, the textile industry was facing a negative generation of funds thanks to an unaffordable
mark-up rate on the one hand and acute shortage of energy supply and unimaginable power tariff
for the industry.

Increasing Cost of Production: the value of production of textile rises thanks to many reasons
like increasing rate of interest, double-digit inflation, and decreasing value of Bangladeshi Taka.
The in particular reason increased the value of production of the textile industry which creates a
drag for the textile industry to compete within the international market

Energy Crisis: Electricity Crisis: As a consequence of load shedding the textile production
capacity of varied sub-sectors has been reduced by up to 30 percent. Many joint meetings of the
organization were held at different times to formulate a joint strategy to deal with the alarming
electricity crisis being faced by the textile industry. The meeting unanimously decided to
constitute a joint working party of electricity management for the textile industry within the
larger interests of the worth chain of the textile industry10. The joint working party will meet
shortly to style an in-depth decision to pursue the subsequent goals; immediate total exemption
from electricity load shedding for the textile industry value chain; Rationalization and reduction
of electricity tariff. The load-shedding of electricity causes a rapid decrease in production which
also reduced the export order. The value of production has risen thanks to a moment increase in
electricity tariff. Thanks to load shedding, some mill owner uses an alternate source of energy
sort of a generator which increases their cost of production further. Thanks to such a dramatic
situation, the potential competitiveness of this industry within the international market was
affected badly.

Gas Shortage: Gas load-shedding continues in textile industries despite a big increase in
temperature. A Spokesman for the Bangladesh Textile Mills Corporation (BTMC) claimed that
60 to 70 percent of the industry had been affected and was unable to simply accept export orders
coming in from around the globe. Continuous gas disconnection over months, causing huge
production losses is badly affecting the potential of the industry. Within the larger interest of the
economy and exports, the Govt should “ensure utility companies provide smooth electricity and
gas supply to the textile industry”.

Tight Monetary Policy: The continuity of tight monetary policy causes an intensive increase in
the cost of production. Thanks to high interest rate financing cost increases which cause a severe
effect on production. The withholding of 1% also affects the assembly badly. The high cost of
doing business is due to an intensive increase in the rate of interest which has increased the
issues of the industry. The Govt should take immediate measures to get rid of the slowdown
within the textile sector.

Removal of subsidy on the Textile sector: The provisions of Finance Bill 2012-2013 aren't textile
industry-friendly in the least. Provisions just like the reintroduction of 0.5% minimum tax on
domestic sales, withholding on import of textile and articles, etc., are nothing but the last Strick
on industry’s back. The minimum tax on domestic sales would invite an unavoidable liquidity
problem, which is already reached an alarming level. The textile industry was facing a negative
generation of funds thanks to an unaffordable markup rate.

Lack of latest investment: Bangladesh's textile industry is facing the matter of low productivity
thanks to its obsolete textile sorts of machinery. To beat this problem and to face the
competition, Bangladesh Textile Industry would require high investments. There’s an endless
trend of investing in spinning for several years. Bangladesh is facing external also internal
problems that restrict the new investment7. The unpredictable internal condition of Bangladesh
causes a rapid decrease in foreign investment that affected all industries but especially the textile
industry.

Energy Crisis: Electricity Crisis: As a consequence of load shedding the textile production
capacity of varied sub-sectors has been reduced by up to 30 percent. Many joint meetings of the
organization were held at different times to formulate a joint strategy to deal with the alarming
electricity crisis being faced by the textile industry. The united working party will meet shortly to
style an in-depth decision to pursue the subsequent goals; immediate total exemption from
electricity load shedding for the textile industry value chain; Rationalization and reduction of
electricity tariff. A rapid decrease in production which also reduced the export orders because of
load-shedding of electricity. The value of production has risen thanks to a moment increase in
electricity tariff. Thanks to load shedding, some mill owner uses an alternate source of energy
sort of a generator which increases their cost of production further. Thanks to such a dramatic
situation, the potential competitiveness of this industry within the international market was
affected badly.

Gas Shortage: in textile industries despite a big increase in temperature because of Gas load-
shedding. Continuous gas disconnection over months, causing huge production losses is badly
affecting the potential of the industry. The larger interest of the economy and exports, the Govt
should “ensure utility companies provide smooth electricity and gas supply to the textile
industry”.

Tight Monetary Policy: The tight monetary policy causes an intensive increase in the cost of
production. Thanks to high-interest rate financing cost increases which cause a severe effect on
production. The withholding of 1% also affects the assembly badly. The high cost of doing
business is due to an intensive increase in the rate of interest which has increased the issues of
the industry. The Govt should take immediate measures to get rid of the slowdown within the
textile sector.

Removal of subsidy on the Textile sector: The provisions of Finance Bill 2012-2013 aren't textile
industry-friendly in the least. The reintroduction of 0.5% minimum tax on domestic sales,
withholding on import of textile and articles, etc., are nothing but the last strict on industry’s
back. The low tax on domestic sales would invite an unavoidable liquidity problem. The textile
industry was facing a negative generation of funds thanks to an unaffordable markup rate.

Lack of latest investment: Bangladesh's textile industry is facing the matter of low productivity
thanks to its obsolete textile sorts of machinery. To beat and to face the competition, Bangladesh
Textile Industry would require high investments. There’s the endless trend of investing in
spinning for several years. Bangladesh is facing external also internal problems that restrict the
new investment7. The internal condition of Bangladesh causes a rapid decrease in foreign
investment that affected all industries but especially the textile industry.

Company’s Steps to Meet Three Key Challenge facing the industry

Some Recommendations are given as under Zero rating on import of all textile machinery, Zero-
rating exports, tariff reduction, Incessant energy supply to textile units, Issues concerning the
market access, Quality products with timely delivery, Single digit price and special power tariff
for the textile industry.

Duty free market access to European Union and us , Remedy though Foreign Direct Investment
(FDI), Image Building of Bangladesh to draw in Foreign Direct Investment (FDI), specialize in
Value Addition, Technology Up-gradation and Capacity Building, Human Resources
Development, Reducing the value of doing Business in Bangladesh, Need for Improving Textile
Production, Awareness of International Quality Standards, Introducing concept of on-the- job-
training, Introducing efficient management techniques, Subsidy removal should be taken a back,
rate of interest should be low down so as to survive this industry, Electricity and gas tariff,
Removal of Energy Crisis, Exploration of latest Export Markets, Bonded warehouse facilities,
Duty free importation of raw materials of export within the RMG, Avoidance of double taxation
for venture projects, tax exemption for up to 3 years for foreign technicians, Duty on dyes and
chemicals are going to be withdrawn, Duty free import of capital machinery, Closer monitoring
of leakage within the market, Appoint an advisory committee to represent the industry to the
Govt , Improvement of research and technology , All sectors of the industry are going to be
modernized, Rehabilitated the maximum amount as possible, Tariffs are going to be rationalized,
The policy involves the establishment of the many new factories and projects, but doesn't
provide a scheme for financing them, the shortage of coaching and technology is mentioned, but
no steps are suggested for enhancing the kills of the workforce and engineers, No suggestions are
made for fixing institutions to conduct the technical and market research needed to upgrade the
standard of Bangladeshi products to form them more appealing within the international market,
the necessity for the expansion of the Bangladesh's infrastructure like road, port, and railway
capacities to accommodate increased imports and exports isn't mentioned, the good problems
arising from the shortage of land on which to create the required factories is additionally not
considered. The policy states that environmental pollution is negligible, but doesn't go further
into the matter. However, it had been very obvious to me on one among my factory visits that
effluent treatment and disposal within the industry may be a very significant issue. The necessity
for more power is mentioned, but no plans are devised on how the expansion are going to be
undertaken.

The textile industry in Bangladesh has grown in hit or miss manner and a critical demand-supply
gap has arisen for both yarn and fabric5. The crisis will naturally deepen unless appropriate
backward linkages, the incorporation of the elemental steps within the textile industry during to
the RMG industry, are often built to satisfy the rapidly approaching challenges within the global
textile market. Because the population is growing and therefore the standard of living is
increasing in Bangladesh, the demand for textiles is increasing rapidly. This presents an urgent
got to dramatically increase capacities in spinning, weaving, knitting, and dyeing, printing, and
finishing sub-sectors. This may require the adoption of the foremost modern and appropriate
technology to make sure quality products at competitive prices.

The increasing possibility of yarn production in Bangladesh. It’s a difficulty that has been looked
into extensively by many researchers. These investigations have revealed the country actually
features a comparative advantage over all competitors in terms of the expense of yarn
production. Bangladesh's over India and Pakistan advantage disappears. It remains competitive
with other producers. This is often essentially a result of the upper cost of raw materials in
Bangladesh, as most got to be imported. Korea is that the cheapest in Bangladesh amongst all the
yarn producers between powers. The country also features a very low rate of depreciation and a
reasonably low-interest rate. The value of instrumental materials in Bangladesh is that the
highest in all the yarn producers, as is that the price of raw materials. Thanks to these two
factors, Bangladesh loses its comparative advantage over India and Pakistan. The country isn't
only handicapped by the import tariffs and shipping expenses but India and Pakistan subsidize
the raw cotton, which is sold locally, leading to countries like Bangladesh paying more for
equivalent cotton. The result for the Bangladeshi spinning mills of such price differentials is that
they obtain raw cotton of equivalent quality at prices, which are approximately 30% above the
Indian mills, and Pakistani mills14. Bangladesh's spinning mills have to be compelled to pay
handling, freight, and commission charges which put them in a disadvantageous situation. The
weaving and knitting sub-sectors also will get to expand at a rapid rate, as there's an outsized
demand-supply gap within the country. Increased investment within the modernized machinery
and sub-sectors. Bangladesh gain profits, more competitive weaving, and knitting sectors. As
they're expanding at a rate that's not hooked into any of the opposite sectors. Local grey material
becomes more competitive, and its production is increased, the dyeing, printing, and finishing
sub-sector. Also, it will be got to expand to accommodate for the increased supply. These
problems automatically improve the market position leading, and to improved opportunities for
the expansion of the Bangladeshi textile industry. Bangladesh's textile industry goes through one
of the toughest periods days after day. The worldwide recession which has hit the worldwide
textile hard isn't the sole cause for concern. Also affected the Bangladesh textile industry was
affected very badly by internal issues. The high cost of production resulting from a moment rise
in energy costs has been the first explanation for concern for the industry. It’s getting more and
harder for exporters to travel abroad to grab potential buyers. Bangladesh’s textile industry, in
the research and development section, is not that much improved. The assembly capability is
extremely low thanks to obsolete machinery and technology. Bangladesh is facing a high cost of
production thanks to several factors just like the hike in electricity tariff, the rise in the rate of
interest, energy crisis, increasing cost of inputs, internal dispute political instability, and removal
of subsidy. The in particular the factors increase the value of production which decreases the
exports. And also Govt. provide subsidies to the textile industry for the survival of this industry.

OVERVIEW OF BEXIMCO TEXTILE LTD

Beximco Textiles Ltd. was founded on March 8, 1994, as a public limited company with limited
liability in Bangladesh. In 1995, the company began commercial operations and issued shares
and debentures to the public at the same year. The company's shares are traded on the
Bangladeshi stock exchanges in Dhaka and Chittagong. Beximco Textile Ltd. is a cutting-edge
composite manufacturer. Its weaving part contains 288 high-speed air-jet looms, as well as a
high-tech dyeing and finishing facility that can produce 100,000 yards of completed fabric every
day. The BEXIMCO Industrial Park is where the company is located.

Bextex Ltd. has a state-of-the-art composite knitting production plant that can meet the growing
needs of high-quality knitwear exporters in Bangladesh. The project was established as an ultra-
modern knitting, dyeing and finishing facility. Over the years, the company has produced and
sold high-quality knitted fabrics, and introduced the latest soft and hard technologies in the
knitting, dyeing and finishing, and finishing of knitted fabrics. In addition, the company owns
122,000 spindles of cotton and polyester yarn spinning mills, which is one of the largest spinning
mills in China. The factory was created to satisfy the country’s export-oriented industries.

• 40,000 employees of multiple nationalities

• Annual sales of US $ 500 million
• Complete vertical infrastructure
• Global footprint for service and manufacturing collaboration
• Recruitment of choice
• Innovation and speed for multiple categories of products
• Solid design support
Over the years, BEXIMCO has developed in-house design capabilities with teams based in
Bangladesh and Spain. In addition, it has partnered with a number of world-renowned design
institutes including Fashion Institute of Technology, Parsons, London School of Fashion, NIFT
and NID, to reach out to talented designers. The Group has built solid working relationships with
its key customers through constant dialogue. The Group's technology partners include in vista,
Huntsman, CHT, Rudolf and Clariant. Main customers are American Eagle, Arcadia Group,
Calvin Klein, H&M, Macy's, Tommy Hilfiger, Warnaco and Zara. The Group plans to develop
its textile activity through capacity increases. After the expansion, the annual knitwear capacity
is expected to increase to 80 million pounds from the current 11 million pounds, and the annual
knitwear capacity is expected to reach 145 million pieces out of the current 20 million pieces.

The group also entered the retail clothing sector through "Yellow", a young brand that is sold
through BEXIMCO's own outlets. Yellow is a design-oriented brand that advocates creativity
and original thinking, and highlights a relaxed and optimistic outlook on life through high-
quality products. The adventurous spirit of this product line stems from the innovative tradition
of the BEXIMCO Group and a passionate and exploratory life. Beximco is strategically looking
to promote and expand its "Yellow" brand, which has become the number one fashion brand in
Bangladesh and is rapidly expanding in Pakistan and Algeria. Not only that, the brand is also
going international in Southeast Asia through a tripartite cooperation between the Japanese
company Beximco and a major retail group in Bangkok. We are not saturated with the current
yellow market and we present an excellent growth opportunity of over 100% every year. We
have certainly caught a big wave and are confident we can ride it without stumbling. We would
like to conquer one continent at a time,” declares by Syed Naved Husain, Group Director &
CEO, Beximco Limited. Such is the growing popularity of Yellow in Asia that Beximco is in
conversation with a retailer having 500 stores in one of the very affluent countries to provide a
corner for its clothing. “If deals such as these breaks for us, then it will provide the right
direction for growth as 500 doors will open up the windows of opportunity for many more,” said
by Naved Husain. No surprise, the brand is one of the company's growth engines, with a target of
BDT 350 crore (Bangladesh Stores Only) by 2017, up from BDT 100 crore in 2015. This makes
it a small but important segment of the Beximco Group, which has a turnover of around US $ 1
billion, with the garmenting segment accounting for half of that.

Strong business ethics, business excellence, creating anefficientworking environment,

continuous improvement through strong corporate governance, and dynamic employee
engagement have been the organization'sroleasa leadingcompoundcompany in Bangladesh's
factories.

Mission:

Beximco Textiles Ltd. is a full-service provider with strong vertically integrated production
facilities and creative and analytical capabilities, which clearly differentiates us from most other
South Asian suppliers. Each of its activities should benefit and add value to the common heritage
of our society. They firmly believe that they are ultimately responsible for each constituency
with which they interact; namely: employees, your valued customers, your suppliers, your
business partners, your shareholders and citizens.
Vision:

• Obtained a leading position in the high value-added apparel market in the United States and
Europe.

• Use "innovation" and "speed" as the main driving forces instead of cotton and cheap labor.

• Dominate these markets with high quality: men's, women's, children's clothing, shirts (formal
and informal), shirts (formal and informal), skirts, jackets, jeans and informal non-denim
trousers, tops and knitted pants.

Goal

Our goal is to achieve the same distinction as the luminous body in the sky. Our main goal is to
provide quality that truly reflects our vision of manufacturing excellence

Consumer of the products

Beximco Textile Ltd is 2100% export-oriented industry. All the goods produced in this industry
are exported into various foreign countries. Some of the industries name who are the main buyers
of these products are: Zara, Enyce, Coogi, S-Oliver, Tema, River Island, Mother Care, US polo,
Rocawear, T. Land, Calvin, Bershka, JC Penny, Charter House etc.

Market Segments of Beximco Textiles

The profile for the Beximco Textiles customers is consists of the following geographic,
demographics & behavior factors.

Geographic – Beximco Textiles Products cover the whole of World specially EU & USA. It also
sells product with in the country.

Demographic – Beximco Textiles Ltd. targets both female and male as a buyer. Their main
consumer is between the age group of 12-45. As customers knowledge about new features and
facilities are improving, they started to prefer innovative and more varieties in the product. They
prefer more and different color combinations.

Target Market of Beximco Textile Ltd.

RMG companies are the target market of Beximco Textiles Ltd. Beximco Textile Ltd. are mainly
looking for the international RMG companies and buyers rather than national buyers.

 Customer Group - All RMG companies.

  Consumer Group - People from all walks of life, Market, show room.

Market Positioning

Beximco Textile positions itself in niche market segments with targeted B2B end sales. Due to
their strong public relations and the inactivity of their competitors, they gradually position
themselves in these duty stations. When it comes to niche markets, the company is already
catering to a segment called "moderate" clothing, which is currently favored by luxury brands
like D&G and retailers like M&S and Uniqlo. Beximco claims to be the only company in the
world that produces 90-100% stretch denim and garment dyeing products, while most companies
in Turkey and India produce up to 70% stretch fabrics. King of stretch development without
denim. In addition to niche categories, the company also aims to further consolidate its expertise
in specific categories such as denim, non-denim, different types of washes, and stretch and seeks
to explore sportswear as an opportunity for future growth.
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