Knit Asia Garment Division

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Effectiveness of Merchandising & Operation process development in the Country Economical growth on the basis Of

“Knit Asia Garment Division”


Knit Asia Ltd, is a garments industry, It has been operating its activities in Bangladesh since 2005.In order to identify the different activities that are performed by Knit Asia garments, which plays a vital role in our economic development, this research has been intended to be conducted by us for acquiring knowledge of garment industry. In general Knit Asia garments have always tried to meet the buyer expectation to do business smoothly and to seek better position in the garments industry.

This research project has been adopted to identify each of the activities of its operation and how it has build up customer satisfaction & retained its customer by ensuring better quality.

Objective of the Research:

The major objective of this research is to demonstrate the Merchandising, Quality, Operation process, marketing strategy that contributes to the garments sector for economic development of the country.

The specific objectives of this research are:

1. To analyze each operational process.

2. To analyze the contribution for economic development.

3. To identify the process of day by day growth & development

4. To maintain customer satisfaction by quality assurance.

5. To analyze its Marketing / Merchandising strategy

Scope of the Research:

The findings of this research project will help the customer of the product to know the process of its operation. The manufacturers will also know the desire of the customer which may prompt them to adopt measures for customer satisfaction as per the cota free globalization.

Research Design:

The research project is both descriptive and exploratory in nature. The descriptive research will be conducted to define the basic marketing / merchandising activities of Knit Asia garments & enrich its quality for home and abroad. The exploratory research will be conduct to measure the customer’s satisfaction level on the basis of quality by Knit Asia garments.

Ee4e3 Data and Data Sources:

Both secondary and primary data will be needed to attain the objectives of this research project. There are several method of collecting primary data, particularly in survey and descriptive research these are:

1. Observation method

2. Interview method

3. through Questionnaires

4. Through schedules, and other method, which include?

a) Warranty cards

b) Distributor audits

c) Pantry audit

d) Consumer Panels

e) Using Mechanical devices

f) Through projective techniques

g) Depth Interview

h) Content analysis

The secondary data were collected from the following sources:

1. Company internal records, Magazines

2. BGMA (Bangladesh Garments Manufacturing Association) directory

3. Company Financial statement, Report 2006-2007 (June),

4. Custom and BEPZA (Bangladesh Export Processing Zone Authority) Magazine,

7th Edition, 2007

6. Reports and publications of various associations connected with business and industry, bank, stock exchange etc.2007,

Instrument of Data Collection:

For Primary Data: The method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by government. In the method a questionnaire is sent to the person concerned with a request to answer the questions and return the questionnaire. Questionnaire used to gather primary data from 10 Respondents. A well planned undisguised questionnaire was formulated to acquire desired information from sample elements regarding the operation aspects of Knit Asia garments.

Data Processing: The data, after collection, has been processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we used all relevant data for making contemplated comparisons and analysis. Technically speaking, processing implies editing, coding, classification and tabulation of collected data so that they are amenable to analysis. Data is edited to avoid clarification contradiction, irrelevant, and false responses. Afterwards, the average level of customer satisfaction on each issue of Knit Asia garments has been determined by central tendency of statistics, so as to reveal the proportion of satisfaction & dissatisfaction.

*Data Analysis and interpretation: The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Thus in the process of analysis, relationships or differences supporting of conflicting with original or new hypotheses should be subjected to statistical tests of significance to determine what validity data can be said to indicate any conclusion. In order to extract meaningful information from the data collected, the analysis will be carried out. After editing the data properly, they will be tabulated by using statistical tools i.e. percentage, average, dispersion etc. alternatively the collected data will also be analyzed by using diagrams, graph etc.

Limitation of the research project:

F Time and funds are the major limitation of this research project.


The entire research project took 90days to conduct, which were scheduled as below:

A) Data were gathered within 70 days after the acceptance of the proposal by the research guide.

B) Next 5 days were utilized for editing, the data for clearing and recollection.

C) Subsequent 7 days were used to analyze, internet and to prepare the final draft of the report.

D) Final 8 days were required to prepare the final report of the research project.

Bangladesh History :

Europeans began to set up trading posts in the area of Bangladesh in the 16th century; eventually the British came to dominate the region and it became part of British India. In 1947, West Pakistan and East Bengal (both primarily Muslim) separated from India (largely Hindu) and jointly became the new country of Pakistan. East Bengal became East Pakistan in 1955, but the awkward arrangement of a two-part country with its territorial units separated by 1,600 km left the Bengalis marginalized and dissatisfied. East Pakistan seceded from its union with West Pakistan in 1971 and was renamed Bangladesh. Today Bangladesh is playing a role Model as a developing country for the Global world.

Bangladesh country profile

Name : People’s Republic of Bangladesh

Official Name : Bangladesh

Capital city : Dhaka (pop. 10 million).

Geographical Location : Between 20°34′ and 26°38′ north latitude and between 88°01′ and 92°41′ 147, 570 sq. km. (55,813 sq. mi.); about the size of Wisconsin. east longitude.1,47,570 or 57,295 sq.miles.

Boundary : North : India

West : India

East : India and Myanmar

South : Bay of Bengal

Unit of Currency : Taka

Time : GMT+6.00 hours.

Major Divisions : Dhaka, Chittagong, Khulna, Rajshahi, Barisal, Sylhet.

Major Cities : Dhaka (Pop. 10 million), Chittagong (2.8 million),

Khulna (1.8 million), Rajshahi (1 million), Mymensingh, Camilla,

Barisal, Sylhet.

Climate : Winter temp (max 29°C Min 11°C) Semitropical, Monsoonal.

Terrain : Mainly flat alluvial plain, with hills in the northeast and southeast.

Population : 129.2 Million (2001), Growth rate 1.48% (2001)

Language : Bengali but English is widely used.

Principal Industries : Garments, Jute, Cotton, Textile, Tea, Paper, Newsprint, Cement, Fertilizer,

Sugar, Fish, Engineering, Electric Cables, Leather.

Principal Exports : Readymade garments, Jute and jute products, Tea, Leather, Chemical,

Fertilizer and Frozen food etc.

Sea Ports : Chittagong and Mongla.

Airports : Dhaka, Chittagong (International).

Jessore, Rajshahi, Ishwardi, Sylhet, Cox’s Bazar, Syedpur, Barisal (Local).

GEOGRAPHY: : Bangladesh is a low-lying, riparian country located in South Asia with a largely marshy jungle coastline of 710 kilometers (440 mi.) on the northern littoral of the Bay of Bengal. Formed by a deltaic plain at the confluence of the Ganges (Padma), Brahmaputra (Jamuna), and Meghna Rivers and their tributaries, Bangladesh’s alluvial soil is highly fertile but vulnerable to flood and drought. Hills rise above the plain only in the Chittagong Hill Tracts in the far southeast and the Sylhet division in the northeast. Straddling the Tropic of Cancer, Bangladesh has a subtropical monsoonal climate characterized by heavy seasonal rainfall, moderately warm temperatures, and high humidity. Natural calamities, such as floods, tropical cyclones, tornadoes, and tidal bores affect the country almost every year. Bangladesh also is affected by major cyclones–on average 16 times a decade. Urbanization is proceeding rapidly, and it is estimated that only 30% of the population entering the labor force in the future will be absorbed into agriculture, although many will likely find other kinds of work in rural areas. The areas around Dhaka and Comilla are the most densely settled. The Sundarbans, an area of coastal tropical jungle in the southwest and last wild home of the Bengal Tiger, and the Chittagong Hill Tracts on the southeastern border with Burma and India, are the least densely populated.

People: :

Nationality: Noun and adjective–Bangladeshi(s). Population: 146 million. Annual growth rate: 1.8%.

Ethnic groups: Bengali 98%, tribal groups, non-Bengali Muslims. Religions: Muslim 88.3%; Hindu 10.5%; Christian 0.3%, Buddhist 0.6%, others 0.3%. Languages: Bangla (official, also known as Bengali), English. Education: Attendance– 61%. Literacy– 62.66. Health: Infant mortality rate (below 1)–56/1,000. Life expectancy–62 years (male), 63 years (female).Work force (60.3 million): Agriculture— 62.3%; manufacturing and mining– 7.6%; others—30.1%.


The area that is now Bangladesh has a rich historical and cultural past, combining Dravidian, Indo-Aryan, Mongol/Mughul, Arab, Persian, Turkic, and west European cultures. Residents of Bangladesh, about 98% of whom are ethnic Bengali and speak Bangla, are called Bangladeshis. Urdu-speaking, non-Bengali Muslims of Indian origin, and various tribal groups, mostly in the Chittagong Hill Tracts, comprise the remainder. Most Bangladeshis (about 88.3%) are Muslims, but Hindus constitute a sizable (10.5%) minority. There also are a small number of Buddhists, Christians, and animists. English is spoken in urban areas and among the educated. Sufi religious teachers succeeded in converting many Bengalis to Islam, even before the arrival of Muslim armies from the west. About 1200 AD, Muslim invaders established political control over the Bengal region. This political control also encouraged conversion to Islam. Since then, Islam has played a crucial role in the region’s history and politics, with a Muslim majority emerging, particularly in the eastern region of Bengal.


Bengal was absorbed into the Mughul Empire in the 16th century, and Dhaka, the seat of a nawab (the representative of the emperor), gained some importance as a provincial center. But it remained remote and thus a difficult to govern region–especially the section east of the Brahmaputra River–outside the mainstream of Mughul politics. Portuguese traders and missionaries were the first Europeans to reach Bengal in the latter part of the 15th century. They were followed by representatives of the Dutch, the French, and the British East India Companies. By the end of the 17th century, the British presence on the Indian subcontinent was centered in Calcutta. During the 18th and 19th centuries, the British gradually extended their commercial contacts and administrative control beyond Calcutta to Bengal. In 1859, the British Crown replaced the East India Company, extending British dominion from Bengal, which became a region of India, in the east to the Indus River in the west.

The rise of nationalism throughout British-controlled India in the late 19th century resulted in mounting animosity between the Hindu and Muslim communities. In 1885, the All-India National Congress was founded with Indian and British membership. Muslims seeking an organization of their own founded the All-India Muslim League in 1906. Although both the League and the Congress supported the goal of Indian self-government within the British Empire, the two parties were unable to agree on a way to ensure the protection of Muslim political, social, and economic rights. The subsequent history of the nationalist movement was characterized by periods of Hindu-Muslim cooperation, as well as by communal antagonism. The idea of a separate Muslim state gained increasing popularity among Indian Muslims after 1936, when the Muslim League suffered a decisive defeat in the first elections under India’s 1935 constitution. In 1940, the Muslim League called for an independent state in regions where Muslims were in the majority. Campaigning on that platform in provincial elections in 1946, the League won the majority of the Muslim seats contested in Bengal. Widespread communal violence followed, especially in Calcutta.

When British India was partitioned and the independent dominions of India and Pakistan were created in 1947, the region of Bengal was divided along religious lines. The predominantly Muslim eastern half was designated East Pakistan–and made part of the newly independent Pakistan–while the predominantly Hindu western part became the Indian state of West Bengal. Pakistan’s history from 1947 to 1971 was marked by political instability and economic difficulties. Dominion status was rejected in 1956 in favor of an “Islamic republic within the Commonwealth.” Attempts at civilian political rule failed, and the government imposed martial law between 1958 and 1962, and again between 1969 and 1971.

Almost from the advent of independent Pakistan in 1947, frictions developed between East and West Pakistan, which were separated by more than 1,000 miles of Indian Territory. East Pakistanis felt exploited by the West Pakistan-dominated central government. Linguistic, cultural, and ethnic differences also contributed to the estrangement of East from West Pakistan. Bengalis strongly resisted attempts to impose Urdu as the sole official language of Pakistan. Responding to these grievances, Sheikh Mujibur Rahman in 1948 formed a students’ organization called the Chhatra League. In 1949, Maulana Abdul Hamid Khan Bhasani and some other Bengali leaders formed the East Pakistan Awami Muslim League (AL), a party designed mainly to promote Bengali interests. This party dropped the word Muslim from its name in 1955 and came to be known as Awami League. Mujib became president of the Awami League in 1966 and emerged as leader of the Bengali autonomy movement. In 1966, he was arrested for his political activities. After the Awami League won almost all the East Pakistan seats of the Pakistan national assembly in 1970-71 elections, West Pakistan opened talks with the East on constitutional questions about the division of power between the central government and the provinces, as well as the formation of a national government headed by the Awami League. The talks proved unsuccessful, however, and on March 1, 1971, Pakistani President Yahya Khan indefinitely postponed the pending national assembly session, precipitating massive civil disobedience in East Pakistan. Mujib was arrested again; his party was banned, and most of his aides fled to India and organized a provisional government. On March 26, 1971, following a bloody crackdown by the Pakistan Army, Bengali nationalists declared an independent People’s Republic of Bangladesh. As fighting grew between the army and the Bengali mukti bahini (“freedom fighters”), an estimated 10 million Bengalis, mainly Hindus, sought refuge in the Indian states of Assam and West Bengal. On April 17, 1971, a provisional government was formed in Meherpur district in western Bangladesh bordering India with Sheikh Mujibur Rahman, who was in prison in Pakistan, as President, Syed Nazrul Islam as Acting President, and Tajuddin Ahmed as Prime Minister. The crisis in East Pakistan produced new strains in Pakistan’s troubled relations with India. The two nations had fought a war in 1965, mainly in the west, but the refugee pressure in India in the fall of 1971 produced new tensions in the east. Indian sympathies lay with East Pakistan, and in November, India intervened on the side of the Bangladeshis. On December 16, 1971, Pakistani forces surrendered, and Bangladesh– meaning “Bengal country”– was born; the new country became a parliamentary democracy under a 1972 constitution. The first government of the new nation of Bangladesh was formed in Dhaka.


Type: Parliamentary democracy. Independence: 1971 (from Pakistan). Constitution: 1972; amended 1974, 1979, 1986, 1988, 1991, 1996, 2004. Branches: Executive–president (chief of state), prime minister (head of government), cabinet. Legislative–unicameral parliament (345 members). Judicial–civil court system based on British model. Administrative subdivisions: Divisions, districts, sub districts, unions, villages. Political parties: 30-40 active political parties: largest ones include Bangladesh Nationalist Party (BNP), the Awami League (AL), the Jatiya Party, and the Jamaat-e-Islami Party.

Suffrage: Universal at age 18.


Fiscal year: July 1 to June 30. Annual GDP growth rate (FY 2006 est.): 6.7%. GDP: $60 billion Inflation (April 2006): 6.5%. Exchange Rate: FY 2003: 1 $= Taka 57.90 FY 2006: 1 $= Taka 69.43

Annual Budget (FY 2007): $ 10 billion. Per capita GDP (2006): $ 456. Natural resources: Natural gas, fertile soil, water. Agriculture ( 21.8% of GDP): Products–rice, jute, tea, sugar, wheat. Land–cultivable area cropped at rate of 180% in 2004; 176% in 1997; largely subsistence farming dependent on monsoon rainfall, but growing commercial farming and increasing use of irrigation. Industry (Manufacturing; 17% of GDP): Types–garments and knitwear, jute goods, frozen fish and seafood, textiles, fertilizer, sugar, tea, leather, ship-breaking for scrap, pharmaceuticals, ceramic tableware, newsprint.

Trade (FY 2005): Total Imports (FY 2005)- $ 13.4 billion: capital goods, food grains, petroleum, textiles, chemicals, vegetable oils. Total Exports (FY 2005) — $ 8.7 billion: garments and knitwear, frozen fish, jute and jute goods, leather and leather products, tea, urea fertilizer, ceramic tableware.

Exports to U.S. (FY 2005)–$2.5 billion. Imports from U.S. (FY 2005)–$333 million.

Year GDP – real growth rate Rank Percent Change Date of Information
2003 4.40% 51 2002 est.
2004 5.30% 48 20.45 % 2003 est.
2005 4.90% 84 -7.55 % 2004 est.
2006 6.40% 50 30.61 % 2005 est.

Back to Bangladesh Economy

Bangladesh has made significant strides in its economic sector since its independence in 1971. Bangladeshi garments industry is one of the largest and comprehensive industry in the world. Before 1980, Bangladesh’s economy and foreign exchange earnings were driven by the jute industry. However, this industry started to fall dramatically from 1970, when polypropylene products gained popularity over the jute products.

Current GDP per capita of Bangladesh registered a peak growth of 57% in the Seventies immediately after Independence. But this proved unsustainable and growth consequently scaled back to 29% in the Eighties and 24% in the Nineties.

Bangladesh has also made major strides to meet the food needs of its increasing population, through increased domestic production. Currently, Bangladesh is the third largest rice producing country in the world. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the population faces serious nutritional risk. Bangladesh’s predominantly agricultural economy depends heavily on an erratic monsoonal cycle, with periodic flooding and drought. Although improving, infrastructure to support transportation, communications, and power supply is poorly developed. The country has large reserves of natural gas and limited reserves of coal and oil. While Bangladesh’s industrial base is weak, unskilled labor is inexpensive and plentiful.

Bangladesh Opportunity

Bangladesh – the country of world famous muslin fabric and the Great Royal Bengal Tiger has now emerged as an child labour free apparel giant in the world textile and apparel market. The country exports its apparel products worth nearly 5 billion US$ per year to the USA, EU, Canada and other countries of the world. At present the country is the 6th largest apparel supplier to the USA and EU countries. The major products are Knit and Woven Shirts and Blouses, Trousers, Skirts, Shorts, Jackets, Sweaters, Sportswear’s and many more casual and fashion apparels.

Back to Bangladesh Economy

The first ready-made garment factories in Bangladesh aimed at the export market were opened in the late 1970s by investors from other Asian countries whose exports had been restrained by quotas imposed by importing nations. By the mid-1980s, the ready-made garment industry had become a strong export earner. Garment exports brought receipts of only US$3 million in FY 1981, but by 1984 exports had risen to US$32 million, and the following year revenue soared to US$116 million. For FY 1985 and FY 1986, ready-made garments were the second biggest foreign exchange earner for Bangladesh after jute.

In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an ‘Open Door Policy’ to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. We have eight EPZs in Bangladesh.

EPZs of Bangladesh

Dhaka – EPZ

Chittagong – EPZ

Mongla – EPZ

Ishwardi – EPZ

Comilla – EPZ

Uttara – EPZ

Adamjee – EPZ

Karnaphuli – EPZ

Dhaka Export Processing Zone (EPZ-DAK)


Savar. 35 kms from Dhaka city centre, 25 kms from Zia- International Airport.

Utility Services:Supply: Own water supply system.

Tariff: Tk. 17.71 / cm.

Gas Supply: From Titas Gas Field.

Tariff Tk. 5.43 / cm.

Power Supply : 11 kv, 3 phase, 50 cycles / sec.

Tariff Tk. 4.18 / kwh.

Contact Person:

General Manager

Contract Address:
Dhaka Export Processing Zone, Ganakbari,

Savar, Dhaka

Phone: +880 2 7701002, +880 2 7701004

Fax: +880 2 7701003

Total Present Enterprises by Type

Type – A (100% Foreign) : 155

Type – B (Join Venture) : 42

Type – C (100% Local) : 58

Total : 255

Profile Of Zone:

Zone area : 143.84 hectares (355.34 acres)

Number of industrial plots : 372

Size of each plot : 2000 sqm.

Tariff: US $ 2.00 /sqm /year.

Space of Standard Factory Building: 76


Banglsdesh EPZ Authority has sanctioned 201 industrial units for EPZs of the country during the last 5 years. Of these 84 are fully foreign owned, 41 under joint venture & 76 are 100% Bangladeshi, Among them 52 are for Chittgong, 51 for Dhaka EPZ, 26 For Mongla EPZ, 16 for Ishwardi EPZ, 34 for Comilla EPZ, & 7 for Uttara, 10 for Adamjee EPZ, & 5 for Karnaphuli EPZ,. BEPZA has sanctioned 29 enterprises in 2001-02 fiscal year, 27 in 2002-03, 55 in 2003-04, 54 in 2004-05 & 36 in 2005-06. Meanwhile, among the 201sanctioned plants 79 have already started production.

The enterprises of EPZs have exporteed goods worth US$ 11839.80 million up to June 2006 where as it was US$ 4823.78 million till June, 2001. During the last 5 years the export volume enhanced to US$ 7016.02 million. The export earnings from EPZs crossed the billion dollar mark in the last five years. In 2001-02 export from EPZs was US$ 1077.03 million, in 2002-03 it was US$1200.22 million, in 2004-2005 US$ 1548.55 million & it was US$ 1836.18 milliuon in 2005-06.Despite worldwide recession, FDI has increased in the EPZs during the last 60 months. In June, 2001 the investment in EPZs was US$ 475.20 million whereas in june 2006 the investment stood at 979.89 million. The volume of investment has rised to US$ 504.69 million in the operating enterprises of EPZs reflects the positive impact of industrialization.


BEPZA is playing a pivotal role for poverty alleviation through job creation. During the last 5 years 67,825 Bangladeshi nationals have been employed in EPZs of the countr’y. Employment generation ratio of EPZS proved the significant role of BEPZA for socio- economic development of the country. The operating industries of EPZs have generated employment for 1,78,952 Persons. Of them 1,77,809 are Bangladeshis & 1143 are foreign nationals. Among the Bangladeshi nationals 1,04,155 are employed in Chittagong EPZ & 64636 in Dhaka EPZ while 5787 in nComilla EPZ, 300 in Mongla EPZ, 1250 in Uttara EPZ, 1625 in Adamjee EPZ, & 56 in Isheardi EPZ, Among the total work force 60% is female.

Job New Creation

The operating enterprises of EPZs have generated new employment for 23,021 Bangladeshi nationls during the fisical year 2005-06. Of them, 9736 persons are employed in chittagong EPZ, 8356 in Dhaka EPZ, 2973 in Comilla EPZ, 95 in Mongla EPZ, 36 in Ishwardi EPZ, 200 in Uttara EPZ, & 1625 in Adamjee EPZ.


The industrial units of EPZs have exparted goods warth US$ 1836.18 million during the last fiscal year which exceeded the target by US$ 236.18 million. Export earnings from Chittagong EPZ stands at US$ 873.03 million while that of Dhaka EPZ US$ 918.30 million, Comilla EPZ US$ 34.99,Mongla EPZ US$ 7.09 million, Ishwargi EPZ US$ 2.54 million & Adamjee Epz US$ 230 thousand.


US$ 112.89 million capital investment rised in the operating 242 enterprises of EPZs during July 2005 to June 2006. Of this total amount, investment in Chittagong EPZ increased to US$ 35.95 million while that of Dhaka EPZ increased in US$ 61.57 million, Comilla EPZ US$ 10.62 million, Adamjee EPZ US$ 4.00 million & Ishwrdi EPZ US$ 760 thousand.

Enterprise & New Plants Sanctioned

BEPZA has sanctioned 36 new industrial units during the last fiscal year. Of these 20 are fully foreign owned 6 under joint ventures & the rest 10 are bangladeshis. Among the 20 fully foreign owned industries 4 will be in Chittigong EPZ, 3 in Dhaka EPZ, 2 in Irshwardi EPZ, 5 in Adamjee EPZ, 2 in Karnaphuli EPZ, 3 in Comilla EPZ & 01 in Mongla EPZ. Among the 6 joint venture industries, 2 will be in Dhaka EPZ, 1 In Chittagong EPZ, 2 in Adamjee Epz & 1 in Karnaphuli EPZ. Among the 10 Bangladeshi owned plants 1 for Ishwardi EPZ, 2 for Dhaka EPZ, 2 for adamjee EPZ, 1 for Comilla EPZ, 2 for Karnaphuli EPZ & the rest 2 for Chittagong EPZ.

Investment Climate in Bangladesh

The Government of Bangladesh offers great incentives for encouraging the use of local fabrics in the export oriented garment industries. For encouraging textile export, the import of capital machinery is duty-free. Import of cotton is also duty-free. Moreover, the Government has recently implemented several policy reforms to create a more open and competitive climate for foreign investment. Bangladesh is endowed with abundant and cheap labour force that is easily trainable and convertible into semi-skilled and skilled work force. Price, heavily weighted by the labour cost, is one of the main determinants of comparative advantage in the labour-intensive garment industry. The price of labour in our country is lower compared to some of our neighbouring countries as well as some other garment producing countries in South-East Asia and East Europe. Obviously, existence of such cheap but easily trainable labour is one of the advantages that Bangladesh enjoys and will be enjoying over a considerable period in the context of international trade on clothing. An extensive programme of incentives, to expedite investment in the country, are now in place covering :-

· No Ceiling for investment

· Tax holiday of up to 10 years

· Tax-exemption and duty-free importation of capital machinery and spare parts for 100% export oriented industries

· Residency permits for foreign nationals including citizenship

· Easy capital profit and divided repatriation facilities

· Double taxation avoidance

· Tax-exemption on the interest payable on foreign loans

· Taka convertible on current account etc.

Investors can also take advantage of the generalized system of preference which allows duty-free access to European and Japanese Markets.

Backward – Linkage of Apparel Industry Shows Potential for Foreign Investment

Estimate shows that about 80 percent of garment accessories like cartons, threads, buttons, labels, poly bags, gum tapes, shirt boards, neck boards etc. are now being produced in our country, contributing to the national GDP. But, the textile (Spinning, Weaving, Finishing etc.) industry is just budding.

Prospect for a huge textile industry capable to supply over 3 billion yards of fabrics a year to the export oriented garment industry has also been developed by the industry.

Presently, the total fabric requirement in our captive market is for about 3 billion yards, of which about 85-90 percent we import from countries like China, India, Hong Kong, Singapore, Thailand, Korea, Indonesia, Taiwan, etc.. Fabric requirement is increasing @ 20 percent per annum. This offers a tremendous opportunity for further industrialization in our country.

Taking the global context within the purview of open market economy by the year 2005, we can exploit the benefit of the potential textile industry of the country by immediately establishing 60 moderate-size composite textile mills, capable of producing 30 million yards of fabrics per year per factory.

The Bangladesh Garments Sector

The striking successes of readymade garment (RMG) export from Bangladesh over the last two and half decades has surpassed the most optimistic expectation. Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country contributing 76% of total export earnings. The overall impact of the readymade garment exports is certainly one of the most spectacular social and economic developments in the contemporary world. Of total 2.2 million workers over one and half million are women employed in semi-skilled and skilled jobs producing clothing for exports. The development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh. Now Bangladesh earmarks her strong position in the global apparel export market where her product has been well-known for quality, price and competitiveness.

BGMEA at a glance

Starting in late 70s as a small nontraditional sector of export, Ready-made Garment (RMG) emerged as a promising export earning sector of the country by the year 1983. Bangladesh at that time lacked a sectoral trade body, non-government in nature, free from traditional bureaucracy, to help the sector to boost up the country’s foreign exchange earnings. As a result, 1977 marked the birth of BGMEA. Since its humble inception with only nineteen (19) garment manufacturers and exporters, BGMEA has grown into a strong and dynamic body. Today it is proud to have about 3500 garment manufacturers and exporters as its members. The fundamental objective of BGMEA is to establish a healthy business environment for a close and mutually beneficial relationship between the manufacturers, exporters and importers in the process ensuring a steady growth in the foreign exchange earnings of the country. To this end, BGMEA has been playing a very strong role to lead the industry in concurrence with the government.

Functions of BGMEA

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the largest exporters’ guild in the country, with a membership of 4094, which is no mean achievement considering its inception in 1977 with only 12 members. This spectacular progress has been possible through its total commitment towards promoting a congenial atmosphere of interaction and co-operation at all levels of production and marketing. This sector has provided employment to two million workers and has put to use the invaluable talent of a large female workforce, leading not only to their positive contribution to their family and society, but also to their own self-realization and freedom from age-old economic overthrow. BGMEA is harnessing all the divergent sectors of the garments industry through policy making, marketing and overseeing the interests of the parties involved. It is also involved in facilitating the intercommunication of its member companies with overseas trade bodies and organizations.

Brief about BTMA

Bangladesh Textile Mills association (BTMA) is the national trade organization representing Yarn, Fabric Manufacturers and Textile Product Processors mills of the country under private sector. BTMA is registered in 1983 with the Joint Stock Companies as an Association, not for profit, under the Companies Act 1994, with initial membership of 22 mills for the following main objectives:

To organize such factories and workshops for selling or display centers centrally which may be of common benefit for sections which might not be possible or feasible for

Currently the number of membership of BTMA is 810 under:

  • Spinning – 222
  • Weaving – 458
  • Dyeing-Printing-Finishing – 141

Over 2.50 billion EURO has been invested in these mills and about 3.50 million people are currently employed.



JANUARY 296.07 221.74 517.81 7536.75 9383.89 16920.64
FEBRUARY 292.92 196.06 488.98 7580.54 8397.53 15978.07
MARCH 264.55 231.41 495.96 6731.88 9869.20 16601.08
APRIL 236.57 215.08 451.65 6005.58 9033.66 15039.24
MAY 313.24 272.33 585.57 7935.77 11606.30 19542.07
JUNE 377.89 283.68 661.57 9771.15 12089.91 21861.06
JULY 362.79 345.25 708.04 10365.43 15010.87 25376.30
AUGUST 338.74 317.44 656.18 8095.89 13799.13 21895.02
SEPTEMBER 265.88 256.59 522.47 6922.93 11147.39 18070.32
OCTOBER 319.04 310.76 629.8 8461.8 13281.57 21743.37
NOVEMBER 247.43 230.28 477.71 7595.57 10231.91 17827.48
DECEMBER 374.48 329.92 704.40 9383.77 14339.13 23722.90
TOTAL 3689.60 3210.54 6900.14 96387.06 138190.49 234577.55


354.15 296.67 650.82 9509.41 12502.99 22012.40
FEBRUARY 352.36 282.98 635.34 9374.56 12192.85 21567.41
MARCH 349.64 314.32 663.96 9316.63 13542.16 22858.79
APRIL 293.41 322.95 616.36 7739.40 13956.32 21695.72
MAY 391.06 387.68 778.74 10410.34 16789.89 27200.23
JUNE 437.11 421.37 858.48 11639.48 18228.70 29868.18
JULY 451.91 452.94 904.85 12937.59 19779.04 32716.63
AUGUST 461.89 446.91 908.80 13172.7 19604.33 32777.03
SEPTEMBER 351.87 349.05 700.92 10044.76 15292.34 25337.10
OCTOBER 311.38 351.68 663.06 8881.19 15368.05 24249.24
NOVEMBER 330.3 314.96 645.26 9423.23 13766.74 23189.97
DECEMBER 459.71 447.21 906.92 13199.67 19571.99 32771.66
TOTAL 4544.79 4388.72 8933.51 125648.96 190595.40 316244.36
1992-93 1240.48 204.54 1445.02 36.05 10.66 46.71
1993-94 1291.65 264.14 1555.79 34.35 10.81 45.16
1994-95 1835.09 393.26 2228.35 47.21 15.30 62.51
1995-96 1948.81 598.32 2547.13 48.82 23.18 72.00
1996-97 2237.95 763.30 3001.25 53.45 27.54 80.99
1997-98 2844.43 937.51 3781.94 65.59 32.60 98.19
1998-99 2984.96 1035.02 4019.98 64.79 36.66 101.45
1999-2000 3081.19 1268.22 4349.41 66.63 45.27 111.90
2000-2001 3364.32 1495.51 4859.83 71.48 52.54 124.02
2001-2002 3124.82 1458.93 4583.75 77.05 63.39 140.44
2002-2003 3258.27 1653.82 4912.09 82.83 69.18 152.01
2003-2004 3538.07 2148.02 5686.09 90.48 91.60 182.08
2004-2005 3598.20 2819.47 6417.67 92.26 120.13 212.39
2005-2006 4083.82 3816.98 7900.80 108.82 165.02 273.84
2006-2007 (Dec) 2368.07 2362.29 4730.36 67.65 103.38 171.03

1993-94 805.34 80.56 126.85 225.90 ….
1994-95 791.20 101.23 146.83 232.24 ….
1995-96 807.66 112.02 171.73 366.36 70.41
1996-97 759.57 230.98 309.21 391.21 196.60
1997-98 961.13 333.28 467.19 388.50 296.29
1998-99 1043.11 394.85 393.44 471.88 271.70
1999-2000 1021.17 484.06 439.77 563.58 325.07
2000-2001 1073.59 656.33 573.74 597.42 476.87
2001-2002 871.21 636.61 412.34 546.28 517.83
2002-2003 1019.87 643.66 464.51 642.62 578.37
2003-2004 1116.57 1334.85 364.77 1062.10 616.31
2004-2005 1053.34 1667.72 430.28 1349.71 893.12
2005-2006 1056.69 2165.25 389.52 1781.51 1044.01