Interviewed By Sumaiya Siddique, MBR Team
MBR: Our local textile industry has shown reluctance to get adapt to the modern machinery. Instead, The millers are more comfortable with age-old machines imported from China, Korea, Japan, etc. Will you help us to understand why?
Mr. Abdullah Al Mamun: Inadequate investment is one of the hindrances that act behind being unable to use modern technology. Local Textile industry
needs heavy investment in machineries as it is a capital intensive industry but we have lacking of such investments. As a consequence, the factories are unable to upgrade them and fails to embrace the modern technology. One of our neighboring country, India has a special program, called Technology Upgradation Fund Scheme, under this program, funds are allocated to the development of the textile industry in such a way, so that they can get adapt to
modern technology easily. We also need such programs to be able to get adapted to modern machineries.
MBR: Although skilled workers are the precondition for the sustainability of an industry, our local textile industry lacks it and there is no major initiative to improve it in the RMG sector. Why don’t we see such initiative for the industry?
Mr. Abdullah Al Mamun: There are some skill development programs on going but we need more. There is a program run by an international development finance institution under the ministry of finance called Skill for Employment Investment (SEIP) which aims to develop the skill of the workers but the main problem is that our local textile industry is still unorganized and so, the concerned entities are yet to be aware of such development programs run by the government. In this situation, a proper circulation of such initiatives will help us to overcome the obstacle.
MBR: The local textile industry of our neighboring countries not only fulfill most of their local demand but also has their presence in the international market; for example: Arvind and Raymond. Why don’t we have such brands with both local and international presence?
Mr. Abdullah Al Mamun: In order to make the presence of our local textile both in domestic and international market, we need to reform some of our policies. For an example, for a textile company to be 100% export oriented company, they need to export 80% of their production which is a difficult threshold to be met. If such policies are relaxed, our local textiles will be in a better position to make its presence both in domestic and international
market.
MBR: Once we had world recognized fabric: Jamdani and Muslin but with time, but at present, fabric processors try to emulate the
design of neighboring countries and there is no significant R&D as well in this sector. What are the reasons that have created such a situation?
Mr. Abdullah Al Mamun: Our Jamdani still has a very bold presence across the world. Certainly, as time passes by and with the up-gradation of the technology, the lifestyle of the people has changed and we can see a diverse array of products in the market now. Our traditional jamdani is prepared by remote weavers and they also need proper technological up-gradation. If we can create a specialized program for jamdani, it will create a bolder presence in the globe.
MBR: Our local textile mostly focuses on women wear and traditional men wear, but it lacks initiative from our millers to produce formal/semi-formal male wear: denim, gabardine, shirting and panting fabric. Will you please share with us why our investors are reluctant to invest this sector?
Mr. Abdullah Al Mamun: Although in the past, our local textile industry focused on womenswear and a few traditional male-wear, at present, local brands are making their presence in the male formal/semi-formal wear. We are also very optimistic that in the next few years, we will cater our local market which is around USD 7 billion dollar and it will be a matter of great pride for us.
The Local Textile Industry of Bangladesh: A Signature of Our Culture
Clothing is one of the basic needs of human life for survival that comes after food but it is more than an essential requirement as it represents the uniqueness
and identity of a nation. We have represented our heritage in the global stage through Jamdani and Moslin. With passage of time, our concentration moved
towards the RMG and we, through leveraging our competitive advantage of low cost production, have secured the third position in the world.
Although it is very common to associate the RMG sector with local textile industry, RMG is different from local textile. RMG sector is engaged in manufacturing
export oriented products while the local textile holds the aim to serve the native demand.
The local textile has to go through five distinctive steps to produce the finished goods. The process starts from import of cotton, and then we move to spinning which means the production of yarn. After producing yarn we move to the next step and it is weaving where grey fabrics are produced. Then we move to the fourth step where grey fabrics move into dyeing and printing factories and finally, we step into the final stair and it is the finished goods.
The size of local textile industry is immense and its market size is of USD 7 billion dollar. Although there is a trend of duplicating the design of neighboring
countries but our local brands, for example: Yellow, Sailor, Aarong, etc. are promising and we hope that in the near future we will cater our domestic market with own distinctiveness.
Nothing is beyond challenges and limitations, and our local textile industry also has certain challenges which range from scarcity of investment to reform of existing policies. Yet, we can see a prospective future of this sector, and proper nurture of this segment will let us set our footprint in abroad as well, after fulfilling the domestic demand.
RIFAT ISHTIAQ KHAN
Manager
IDLC Finance Ltd.