Apparel Online Bangladesh Sep' 16

CONTENT Cover Story

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Expats worried; buyers fret over safety concerns! The recent terrorist attacks have raised question marks on the safety of foreign professionals working in the country’s RMG industry. The expats are ready to stay on but many foreign buyers are sceptical and watchful.… p14

Cover Story 2

Buyer Blog

Employee Engagement as HR practices gain popularity in Bangladesh apparel sector p18

The struggles of a small buying house in Bangladesh MD of US $ 20 million INZ Sourcing Limited underlines the challenges faced by small- and mediumsized apparel sourcing agencies...p28

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Tech Management Heat Insulation: A green solution for saving energy The sun’s heat drastically

increases the load on the Heating, Ventilation and Air Conditioning (HVAC) system of a building or a factory, in turn increasing the electricity consumption...

World Wrap ‘The Americas’ – Opportunities Galore in Retail p64

Bangladesh Canvas Odyssey Craft (Pvt.) Ltd.: A green facility with a difference!

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Exporter Profile Design & PD, the way forward for VIYELLATEX

Resource Centre HFL: In service of the industry! Starting as a garment

manufacturer, Managing Director of Hamid Fabrics Limited (the textile unit of Mahin Group) shifted to fabric production to meet RMG sector’s burgeoning requirement for raw materials...p50

FFT Trends Menswear Trends S/S ’17: Moving ahead this year with a relaxed and punk route p66

FROM THE EDITOR-IN-CHIEF’s DESK…

EDITORIAL TEAM

Bangladesh was able to improve its performance in the EU during the S/S 2016 season, whereas we all know Europe is not doing well and most of the sourcing destinations have suffered the consequences. While UK, France and Italy are way down in their buying, Germany is steady, though not growing. Only Spain showed positive sourcing and we all know that the stupendous success of the Inditex Group is partially responsible for this performance… Overall, sourcing from Europe has dwindled.

EDITOR-IN-CHIEF

Deepak Mohindra

EDITOR

Ila Saxena

DEPUTY EDITOR

Deepankar Shyam

It could also have adversely affected Bangladesh, but for the various safeguards the country enjoys, like the GSP advantage. During the first four months, Bangladesh registered a growth in volumes of 30 million kg, from the previous year and the growth majorly came from China losing 39 million kg of orders. While the main shift took place to Bangladesh, some orders also got diverted to Vietnam and Pakistan.

COPY EDITOR

Veereshwar Sobti

ASST. COPY EDITOR

Sahil Sehgal

CREATIVE TEAM

Raj Kumar Chahal Peeush Jauhari Satyapal Bisht Deepak Panwar

PHOTO EDITOR

Himanshu Kumar

OPERATION DIRECTOR

Mayank Mohindra

PUBLISHER & MANAGING DIRECTOR

Renu Mohindra

Obviously, buyers look at Bangladesh as the next bet after China, but my only worry now is whether the gains we have registered, would be able to continue in the future considering the unfortunate incidence in the last two months…, with terrorism raising its ugly head in Bangladesh, many are worried.

Expats are more concerned by the fact that the unrest is perpetrated by the young, educated boys with a single agenda to kill the non-Muslims. This aspect of the attacks has scared everyone…, even those who have been living in the country for a good number of years. As far as I know, a lot of expats have sent their families back home while they are staying put to see how things shape up… The Government is no doubt making the right moves, and that goes without saying, but the uncertainty has put a question mark in many minds.

Though the business is going on as usual at the moment with few hiccups, as some buyers are asking for meeting outside the country for security reasons and few are actually contemplating whether to shift some orders to safer destinations like Vietnam or even India… I hope the situation will be adequately handled and brought under control and the country continues on its growth path, with the Government, the BGMEA and other bodies actively involved.

HEAD OFFICE

We have talked to many expats and buyers and our findings make up the lead story in this issue… We also have an article on ‘employee engagement’ and ‘innovative practice of training and planning to ensure business growth and success’, while the write-up on Odyssey Craft highlights how green concept is fast gaining currency amongst the garment manufacturers…

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Bringing good business practices to the fore, we highlight AST Knitwear, which conjures up the importance of correct investment in garment manufacturing business, while INZ Sourcing’s story is of perpetual struggles of small buying houses challenged by large-scale closure of medium and small factories, the hitherto caterer to small entities with smaller order volumes. VIYELLATEX talks of how and why PD and design innovations are becoming the next big thing for the industry while Tech Management dwells on the importance of Shop Floor Control in Apparel Production, and the Cutting-edge Solutions in HVAC, the green solution for energy saving.

Best wishes for Eid-ul Azha, and ensuing success!

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Q-and-A

Companies are looking at Ethiopia as the next destination for expansion. Is it to mitigate the business losses due to growing unrest in the country or take advantage of the Ethiopian trade pact with US and other countries? Moreover, is it not better for companies to go to Myanmar to take advantage of its proximity to Bangladesh for easy management?

Bappy K Roy, Manager Sales – Morgan Tecnica, ITALY, and Eastman Technocrafts Ltd. Nowadays many companies are thinking to invest in Ethiopia, in textiles and garments division. Ethiopia like Bangladesh has a high population and with 93.8 million people, is the second most-populous African nation.

I feel companies are looking to invest in Ethiopia not for the growing unrest in Bangladesh; actually they want to find out another area where they can produce garments at a low-cost and have acceptable political stability. After Bangladesh, Ethiopia is a country which has plenty of land, low labour cost and sufficient available manpower. In every business there are risks. Especially, business like RMG sector has a special risk in political instability and worker unrest as such kinds of business activities involve large manpower. At this moment Bangladesh’s political situation is stable. Also the Government has taken proper steps to reduceworkers’ unrest. But Bangladesh is a Third World country and the political and worker issues have chances of cropping up. So, it is a better choice for companies to have another manufacturing destination as well.

I fully agree with you regarding the advantage of Ethiopian trade pact with USA and other countries. It is a strong reason to make investments there. Also, I would like to draw your attention towards another factor which could have interested the investors to invest in Ethiopian RMG sector. The Ethiopian textile and garment industry can take advantage of high-quality cotton that is grown in the country. As of setting up factories in Myanmar is concerned, yes it would be better for companies to make Myanmar their next manufacturing destination as it would facilitate easy management. But at the same time it is also very important to have a better mutual relationship between Bangladesh and Myanmar; the visa process should be made easier for Bangladesh. Myanmar Government still hasn’t started to take special care of RMG sector, which is another factor. Also, there are some existing problems in Myanmar like the Rohingia issue.

Nipun Nawaz, CEO, Nahid Trade International (NTI) After reading your ‘Mind Tree’ question, the first thing that hit my mind is: You can ‘train’ wild animals but you can never ‘tame’ them. You will always have a fear within... By wild animal I mean the basic instinct! I don’t really think that people are going to invest in Ethiopia in the near future. It may happen after 50-100 years. It is because African people are not trusted anywhere in this world. If you cannot trust, you will never

invest! So, Ethiopia is not really an investment option for the companies for now. Myanmar is not a very feasible option either. The conditions there are worse than in our country. As far as what I have gathered interacting with buyers, importers and international labels, Vietnam and Cambodia have the potential to be the next Bangladesh.

Md. Shahidullah Azim, Former Vice-President, BGMEA Recently Ethiopia has been eyed as a new garment production hub mainly due to its low-cost labour and duty-free access to the USA, which has attracted attention from overseas apparel manufacturing companies. Very few RMG companies from Bangladesh have also shown interest in expansion of their business in Ethiopia to take advantage of the low-cost labour. These companies have already gathered enormous experience in manufacturing basic garments and are now moving to high-end products for top brands of the world. They might have planned to continue production of low-priced basic apparel items by expanding their business in Ethiopia where wage is lower than that of Bangladesh. However, the African nation has some setbacks, including shortage of skilled workforce, experience and proper infrastructure that would put the country in challenges while competing in the world market.

Sunil Kumar, General Manager, Bengal Hurricane Group Ethiopia is a very hot and happening destination right now for garment business, but it has nothing to do with the unrest in Bangladesh. Even if Bangladesh was very peaceful, Ethiopia’s rise as a garment hub cannot be ignored or prevented. The choice is…, if you want to be a part of the story or not.

African continent is the final frontier for getting cheap labour. Ethiopia is the second most-populous country in Africa with young population. The minimum wage is also low compared to Bangladesh. Besides, the climatic conditions are very suitable for cultivating cotton and they have huge uncultivated landscapes, unlike Vietnam or Cambodia, where you can only sew the garments and all the rest need to be imported.

It is also the only country that is relatively peaceful compared to its neighbours. The cost of work permit for foreigners is one-tenth of what

it is in Kenya or Nigeria. The electricity is very cheap (Government is planning separate grid lines for industrial parks to offer unhindered power supply) and it is duty-free to both USA and EU. All these aspects cannot be ignored.

But there are problems like, it does not have a port and is a land-locked country.

The power supply is also not steady (which is now getting solved by giving separate grid lines to industrial parks). Also, the labour is not yet skilful. But overall, pros outperform the cons. Many Bangladeshi groups have visited Ethiopia and are looking at the possibility of putting up factories there. We as a group are also planning to visit Ethiopia early next year to look at the feasibility factor. As far as Myanmar is concerned, it also has huge potential but cannot be compared to Ethiopia. Myanmar is still into CMP business and not FOB, and is 90 per cent into woven. The banking sector is very poor and there are no proper facilities to work on LC. Besides, the infrastructure is also very poor.

There are import restrictions as well and one has to import every material that goes into garment production. The workforce is good but not skilled.

Telecommunication in the country is poor, road transport is poor and port facilities are also poor, and the real estate expensive. Though the country has lot of potential, but enough measures need to be taken by the Government to tap the same.

On the other hand, Ethiopian Government has taken various measures, which apparently are paying off. Myanmar Government also needs to take proindustry measures for the business to think of Myanmar as a good alternative.

As such the Bangladesh garment industry I feel is ready to explore Ethiopia rather than Myanmar.

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Expats worried

Buyers fret over safety concerns!

The recent terrorist attacks have raised question marks on the safety of foreign professionals working in the country’s RMG industry. The expats are ready to stay on but many foreign buyers are sceptical and watchful.

“W

hen extremist violence began to spread in Pakistan, the first signs of financial malaise were the expatriate families packing their bags before trade and investment crumbled… I saw the decline of a promising economy into a terrorist hotspot. This attack (Holey Artisan Bakery) reminds me of those days, although I hope things won’t turn out that way…”

Ominous as it may sound but these observations by Ahsan Mansur, the ex-IMF official and current Director of the Policy Research Institute (Dhaka) to a leading Bangladesh daily in the aftermath of recent terrorist attacks in Bangladesh best describes the sense of anxiety amongst the country’s entrepreneurs, especially those in the readymade garment industry – which employs a large number of expatriates (BGMEA puts the figure at 2,000) working in various capacities.

In the present context, the apprehensions of the Bangladesh garment industry seems reasonable considering the fate Pakistan had to endure. The fourth largest producer of cotton with the third largest

spinning capacity in Asia after China and India, and contributing 5% to the global spinning capacity, the slide that Pakistan had to undergo in the RMG sector in absence of the much-needed expertise – coming primarily in the form of the foreign professionals – rendered the country incapable of capitalizing on its inherent strengths and be content with the tag of a wannabe that had potential galore! Contrary to Pakistan’s descend, Bangladesh was able to script its success story to emerge as the world’s preferred garmenting hub in which the expatriates played a crucial role.

In the just-concluded fiscal year, Bangladesh RMG sector posted a 10.21% growth, mainly due to political stability, business-friendly environment and a sense of calm prevailing in the country. But that unfortunately was only till July 1 (the day of the tragic café attack). Today the scenario is somewhat different.

Majority of the foreign nationals in Bangladesh are employed in the garment sector on top positions like production managers, merchandisers, senior sewing operators, cutting masters, designers and washing experts, and mainly

LATEST UPDATE According to confirmed but unofficial reports, some expatriates have already migrated from Bangladesh to other nations seeking safety while many have shifted their families back to native countries to ensure their security.

come from countries such as India, Sri Lanka, Pakistan, China, South Korea, Taiwan, Philippines and Turkey. From 2009 to September 2015, 7,030 new work permits were issued, according to data from the Board of Investment (BoI), one of the Government bodies that issues employment visas to foreign nationals. While in 2014, the BoI reportedly issued 3,511 extensions, and in 2013 the number was 2,907.

Besides, there are other Government bodies which also issue work permits, like the Bangladesh Export Processing Zones Authority (BEPZA) and the Department of Passport and Immigration.

But are they feeling safe enough to stay put and weather out this phase of uncertainty? “No, I don’t feel secure and no foreigner would feel secure either in the current scenario,” says Akhilesh Kumar Singh, Branch Manager of Francis Wacziarg Agencies Pvt. Ltd. (an international buying house with offices in many countries including Bangladesh) while speaking to Apparel Online Bangladesh (AOB). However, Akhilesh has no immediate plans to move out of the country. “I am optimistic that the situation would improve…

“Earlier the scales were small, but now the factories are getting bigger and it is increasingly becoming obvious to the owners that they cannot handle everything by themselves, so it has become important to have competent people in the middle.” – Rahul Chhabra, General Manager – Bangladesh & India, s.Oliver Overseas Ltd. p20

Terror Aftermath: Policemen guarding the tragic Holey Artisan Bakery attack site while people place wreaths in remembrance of the dead

The Government has taken corrective steps and increased security in Dhaka. Though appreciable, but such steps are not sufficient as there is still no special securityfor the expatriates’ residences and offices,” maintained the Branch Manager of Francis Wacziarg.

Akhilesh’s fear is no exception; there are many like him in the industry.

“To be honest, I am scared of what had happened. I have been living here for more than five years but never felt insecure until now,” says Deepak Joshi, Offtce Manager of Natex Bangladesh Ltd., adding, “But moving out is not exactly what I am thinking because it’s not only about me, it’s about whole business and the entire manufacturing setup that I am looking after…” Deepak is optimistic that the Government’s initiatives would help improve the scenario. Natex’s factory being in a ‘secured area’, in Deepak’s words, is an added advantage inensuring safety. “Besides, terrorist attacks are happening everywhere these days and I don’t think one such off incident is going to affect Bangladesh RMG,” Deepak underlinesemphatically.

Bangladesh Government has already beefed up security arrangements

to bring the foreigners working in the country’s apparel industry under a special security net. “We have already re-arranged security measures all over the country after the terror attack,” said Industries Minister Amir Hossain Amu, who also heads the cabinet committee on law and order to a news agency, adding, “All foreigners including diplomats, business travellers, garment buyers, investors and development partners are covered by the extra security.”

Apex garment traders and exporters’ body (BGMEA) on its part is also coordinating with the Bangladesh Industrial Police to provide better security to the expatriates involved in the RMG sector. “Industrial Police are collecting information about foreigners working in the apparel industry to learn about their numbers and locations to ensure security,” reportedly maintained BGMEA Vice-President Mahmud Hasan Khan Babu to anews daily, underlining that once the final list of foreigners is prepared, police will sit with the trade body leaders to devise ways to provide them more protection. The BGMEA leaders are also planning to meet

the Home Minister to seek special security in areas dotted with buyers’ liaison offices, ensure full-fledged protection for foreigners and ensure their safe and unhindered movement in the country.

Akhilesh Kumar Singh, Branch Manager, Francis Wacziarg Agencies Pvt. Ltd.

Deepak Joshi, Office Manager, Natex Bangladesh Ltd.

“Even though the Government has taken enough precautions and increased security, there is a sense of fear,” maintained Sunil Kumar, General Manager of Bengal Hurricane Group (a leading manufacturer and exporter of wide range of knitted garments), adding, “But I would like to believe this (Dhaka café attack) is a stray incident and things would improve soon.” But unlike Kumar, there are some who would prefer waiting to see how successful Government’s initiatives prove to be before giving their thumbs up. “I should have been in Bangladesh but due to the terrorist attack I have diverted my journey to India. After 30 years of regular visits to Bangladesh I am not feeling any longer safe. We have two engineers travelling to Bangladesh, and frankly speaking I am not feeling well knowing the situation over there. We have booked them in the safest hotels, but this is not a guarantee,” maintained

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Gianpiero Valsecchi, Sales Area Manager of Santoni while speaking to AOB. “I do not think that the local Government is capable of guaranteeing proper security to expats. When you are stuck in the traffic for hours, one realizes that nothing could be done if someone with a gun comes attacking. At this moment I do not have confidence at all unless the local authorities can prove a real sign of action,” the Italian observed.

Contrary to Gianpeiro, Chinmoy Halder, Assistant Manager – Customer Service, Li & Fung Bangladesh observed, “I am not scared… These types of incidents happen but I am not planning to move out,” adding, “Reports of expats leaving Dhaka is also not true. They might be concerned by the turn of events but not moving out for sure. Bangladesh Government is doing its best; security has been beefed up and the police department is also very efficient.” Halder’s optimism is echoed by Bappy K. Roy, Manager Sales of Morgan Tecnica, Italy, and Eastman Technocrafts Ltd. “I feel secure here in Bangladesh,” says Bappy but not before adding the caveat that the Government ought to work more on improving the security system, collaborate with the like-minded countries to fight terrorism and take help of trade bodies (BGMEA and BKMEA) and the social media to inform the expat community of its steps to ensure their security.

Despite a long history of turbulent domestic politics, plucky Bangladesh has ridden out many storms – from labour unrest, mass transport blockades and large-scale political paralysis to workplace disasters.

But the back-to-back terrorist attacks in Dhaka and Kishoreganj have brought the industry face-toface with its biggest image crisis ever with some expressing fear that security worries have potentials of crippling the garment sector. It has also eroded the foreigners’ faith in the country’s security machinery substantially. Japan, which

Mahmud Hasan Khan Babu, Vice-President, BGMEA

Sunil Kumar, General Manager, Bengal Hurricane Group

reportedly has 68 enlisted private companies and NGOs currently operating in Bangladesh, has requested the Government to deploy adequately-equipped armed guards to provide security for the Japanese companies operating in the country. The British Council, a UK Government organization that promotes educational opportunities and cultural relations, reportedly underlined that it was shutting its Bangladesh office until it could put in place new security measures.

The US embassy in Dhaka has on its part reportedly maintained that it will pay for diplomats to send families home. Same is the case with European Union (EU), which has reportedly described the current situation very critical with fears of further attacks and as such actively considering sending back the staff members’ families to Europe. “We’re not overreacting,” the BBC Bangla quoted EU Ambassador in Dhaka Pierre Mayaudon saying, who went on to add, “We’ll take the final decision within the next few days.” Security expert from the EU headquarters is already in the country to evaluate the security scenario.

WHAT ABOUT OVERSEAS BUYERS?

Gianpiero Valsecchi, Sales Area Manager, Santoni

Uniqlo, the owner of Fast Retailing (FRCOF) has announced suspension of all “unnecessary” business travel to Bangladesh while Swedish retailer H&M has also reportedly sent an email to all its vendors informing them about a series of upgraded security norms at its Bangladesh office. Puma, though assured to continue sourcing from Bangladesh added, “…we will decide (travel) on a case by case basis, depending on how the situation is evolving.” An official at El Corte Inglés, one of Europe’s largest department store chains, meanwhile reportedly told a daily that the company had moved all eight of its foreign staff out of the country and was observing a twomonth “hold period” before deciding whether they would return.

This has the Bangladesh Garment Buying House Association (BGBA) calling upon all the political parties to jointly reach a consensus to overcome this challenging scenario.

“H&M is thinking to limit their business in the country. Many other buyers are also showing unwillingness to expand their businesses,” reportedly observed a worried BGBA President Qazi Iftekar Hossain Babul, while addressing a press conference in Dhaka noting July-August is the peak time for western buyers to place orders, and if they fail to do so, it would amount to substantial business loss for Bangladesh RMG sector.

The damage has already been done and now the country needs to reassure foreigners working here as well as overseas buyers that their safety and security is of paramount importance… It has to work hard to bring back the confidence of investors once again. Backing intentions with action is perhaps the best way forward for Bangladesh to reinstate the lost faith. The killing of the nine suspected militants in Kalyanpur, Dhaka, by police as well as rounding up of many suspected extremists from other parts of the country, has somewhat restored the confidence. Acting on clues picked up from intelligence networks and preempting probable assault, police laid siege to a Kalyanpur-based housing apartment in which the suspected terrorists were holed up and gunned them down in a protracted gun battle.

Though the expatriate community is putting up a brave front by not abandoning the country, the Government definitely needs to reciprocate this gesture by ensuring their safety. Wooing back the foreign buyers would be the next step… Else Bangladesh following the footsteps of its restive neighbour – despite its potential and popularity – is difficult to rule out. And this definitely would not be a good news for the RMG sector, the lifeblood of the country’s economy.

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‘Employee Engagement’ is the mantra: Workers busy makinggarments at a readymade garment factory

EMPLOYEEENGAGEMENT

ASHRPRACTICESGAINPOPULARITYIN BANGLADESH APPARELSECTOR GARMENT MANUFACTURERS USING INNOVATIVE TOOLS FOR EMPLOYEE ENGAGEMENT & RETENTION

uman Resources (HR) today is not just the recruitment or payroll management. It has moved much beyond the realms of the yesteryears to innovative HR and employee engagement practices in order to retain employees and allow them to remain cultivated and effective, considered essentials for business success and growth.

H

Energypac Fashions Ltd. (a part of Energypac, one of the largest power engineering and power distribution equipment manufacturer

of Bangladesh) headed by MD & CEO Humayun Rashid, is a strong believer in skill development as an active medium of employee engagement for business advancement. “Training is a continuous process to find an optimal solution in building the capacity of our labour force to strengthen our overall business performance,” observes Rashid, who offers abundant scope of career growth to retain the employees while also engaging them effectively through skill building programmes.

“My workers are my biggest assets… It’s the proximity with the workers, which motivates and keeps me going,” underlines the MD of Mohammadi Group, Rubana Huq, who has initiated a slew of measures to improve the livelihood index of the workers in an effort to engage them productively. Starting operations in 1986 in the garment industry with merely 52 workers – increasing the workforce strength to over 10,000, over the years and diversifying into Real Estate, Power

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ESSENTIALS Middlemanagement is the heart of a company’s operations, and is also instrumental in earning profits for the organization…

Companies can fall or face huge problems due to a ‘misleading’ middlemanagement which is a critical link between the top management and the workers.

Generation, Information Technology and High-tech Entertainment inbetween, Mohammadi Group has now tied up with the Asian University for Women (AUW), Chittagong, to enable the women workers pursue higher studies after which Rubana’s plans are to upgrade them into managerial positions.

Spearheaded by A H Aslam (Sunny) as the Managing Director, Crony Group has found in employee engagement the right tool to deal with attrition successfully. Crony Group’s migration rate of meagre 3 per cent is a clear testimony of its successful employee engagement initiatives that has proved to be the game changer in retaining the workforce.

created a separate employee welfare department to serve as the nodal point for all employee engagement activities. No wonder the company boasts of labour turnover of just 6-8 per cent in a total strength of 15,000-strong workforce, mainly due to such initiatives.

Following the specially-designed path to connect employees with the organisation, Aslam has started Calorie Distribution Programme, under which Crony Group spent a total of BDT 25,000,000

Spending between US $ 1,300 to US $ 3,000 per annum on training, Manvill Styles besides engaging the employees successfully is also upgrading the skill set of the middle-managers with great results.

“Middle-management is the heart of a company’s operations, and is also

Humayun Rashid, MD & CEO, Energypac Fashions Ltd.

Rahul Chhabra, General Manager, Bangladesh & India, s.Oliver Overseas Ltd.

A HAslam (Sunny), Managing Director, CronyGroup

in the industry according to many.

“Earlier the scales were small, but now the factories are getting bigger and it is increasingly becoming obvious to the owners that they cannot handle everything by themselves, so it has become important to have competent people in the middle,” observes Rahul Chhabra, General Manager – Bangladesh & India, s.Oliver Overseas Ltd. According to Chhabra, a major reason for the lack of trust and dependability on the middle-management, apart from lack of training, is high rate of job migration/attrition.

(US $ 321,000) in 2014 alone. At the mid-management level, Crony Group also offers performance-based sponsored holiday packages as a measure to engage and motivate them to do well.

instrumental in earning profits for the organization. The companies can fall or face huge problems due to a ‘misleading’ middle-management which is a critical link between the top management and the workers…,” shares M. M. Nazrul Islam, Dy. Managing Director, Manvill Styles, the entrepreneur with a futuristic outlook, whose novel HR practice of employee engagement is being increasingly employed by the garment manufacturers in Bangladesh to connect the workers with organisational goals and objectives effectively.

Rubana’s endeavour to impart higher education, besides fulfilling the objective of employee engagement, may well prove to be what is perhaps required to meet the demands for quality middle-management as well, something that is in short supply

For Ananta Garments, employee engagement is not only a means to ensure business growth, buta much-needed requirement to retain its competitive edge. “The workers who leave for money come back to Ananta Garments as they miss the employee engagement activities in other companies,” underlines MD of Ananta Group, Inam Khan, who has

TRAINING & PLANNING THE FOUNDATION FOR EPYLLION GROUP… Epyllion witnessed 25% export growth in 2014-15 through employee training and properplanning ight factories and exports to 20 countries (in Europe), what distinguishes Epyllion Group and perhaps even puts it a step ahead of other manufacturers, is Epyllion’s singular focus on training and planning. “Whatever you use, whichever machine you buy and whatever automation you do, it’s the leadership, the skilled people and pure planning that run the company…,” says Reazuddin Al-Mamoon, Managing Director of Epyllion Group, underlining the power of people and what skilled manpower can do to a company’s business prospect.

E

For Reaz it all starts with the recruitment. “Apart from academic qualifications, common sense and energy levels, what we also look for before selecting a candidate is proactive approach,” explains Reaz, who organises job fairs in different universities to get the right kind of people, offer them good environment and educate them about the industry.

Taking in account the nervousness of the new recruits, Epyllion also provides them a buddy to break the ice. “I believe in multi-tasking,” Reaz says adding that once recruited, employees are imparted a general training cutting across departments followed by specific and selective department-based training. “At the end, we send them to Japan for better understanding of how people are treated with respect, and who in turn value and revere their responsibilities to achieve better and improved results,” explains Reaz, for whom the need of compliance is much beyond just business needs.

Ensuring social and workplace safety is directly related to boosting workers’ morale and encouraging them to perform better. As such Epyllion Group has invested a lot on compliance besides spending on expanding capacities in textile, garments and garment accessories.

Largely known for its kidswear and menswear capacities, Epyllion’s

FACTS • C&A (46%), M&S (19%) and G-Star (12%) together constitute for majority share of Epyllion Group’s buyer-base.

• Epyllion Group claims to be one of the pioneers in getting automation in garment manufacturing.

• Epyllion Group has knitting capacity of 30,000 kg/day, and sewing capacity of 3,000,000 pieces/ month.

• From kidswear, Epyllion has now diversified into menswear and ladieswear successfully.

Reazuddin Al-Mamoon, Managing Director, Epyllion Group

strength in manufacturing comes from its skilled and efficient manpower. “Imparting training is much more than just achieving production efficiency. It is about enriching the workers’ skill-set and knowledge which would hold them in good stead in career growth…,” maintains Reaz. Epyllion’s technical department provides training and technical counselling to the operators, who are multi-skilled.

“In the last four years, we have strengthened the ladieswear segment and are currently catering to M&S and G-Star RAW,” shares Reaz.

Epyllion did not face much difficulty with the addition of ladieswear because of the multi-skilled operators and the collaboration of development department with the merchandising arm. If any style comes to merchandising department, they immediately send it to the development department. “They know the strengths of each operator and what style he/she can handle.

Sometimes buyers give a style that we simplify and get back to the buyer with the changes for his approval, based on the skill sets of our operators,” explains Reaz. It is the development department that makes

the style in an easier way and passes on to the marketing team to approach the buyer and convince them that it would be better and more productive for operators to sew the style in that particular way.

“I love the product and being on the shopfloor,” says Reaz enthusiastically, expressing his love for production, who has put in place the required systems to optimally utilize the skillset of the workers who are trained on a regular basis to handle jobs with efficiency. Reaz emphasizes on 4 KPIs – Efficiency, Wastage, RTS (Return to Suppliers) and Inspections – every time he visits the floor. The technical department prepares operators in each department to check their products before it leaves their table to the next department so that product coming out of the line should be a quality product.

Lots of opportunities are coming up for Bangladesh in the changing global scenario and Reaz is very optimistic, provided companies are able to maintain OTD (On Time Delivery) and adherence to TNA. Epyllion Group ensures that their OTD rate is always between 99%-100% with the help of its two departments –

Epyllion Group (Garments Division) Dekko Knitwears Limited (DKL) Mirabella Dresses Limited (MDL) Epyllion Knitwears Limited (EKWL) Dazzling Dresses Limited (DDL) Epyllion Style Limited (ESL) Epyllion Style Limited (ESL) – Extension Epyllion Group (Accessory Units) Epyllion Limited (EPL) – Accessory Hub Epyllion Limited (EPL) – Value Addition Epyllion Limited (EPL) – C&F

Business Planning (BP) and Central Planning (CP). BP department continuously works on the business strategies, keeping an eye into the future and accordingly does necessary groundwork for it.

Based on anticipation of growth for global market of RMG, they make calculations for next year.

Accordingly, CP procures all the requisites for garment production.

In collaboration with BP and CP, marketing department observes the market situations, ongoing trends and the buyers’ business. In that way, BP and CP are the foundation of 99%-100% OTD. Successfully mastering the struggle of following TNA throughout the process, the company holds prior TNA meetings and continuous meetings regarding future projections. CP department is integrated with other department through UK-based planning software FastReact, which helps to integrated business planning for well-timed production of each step of the supply chain without any delay. If any

irregularities arise, CP raises the flag immediately and alerts them right away.

“Bangladesh has that fire in the belly to grab markets of China and India in coming years,” argues Reaz confidently. He also believes that the only threat to Bangladesh is internal factors like poor infrastructure and lack of good management. He also adds that R&D is the foremost thing to be focused upon. “Bangladesh is far behind in R&D from other countries,” underlines Reaz. He emphasises that the next step for the country is to invest in R&D and training of people for this. Bringing R&D to Bangladesh will take an expat route from Europe as Bangladesh does not have sufficient strong fashion designing institutes. “On my trip to Belgium, I met my businessman friend who introduced me his design team.

He asked my management team to learn things from them so that they can benefit Epyllion,” narrates Reaz, quite certain there’s no stopping Bangladesh’s growth, one way or the other.

Design & PD, the way forward for

VIYELLATEX Apparel retailers have little time to spend on designs and are increasingly getting dependent on the factories to support them with new innovations… The retailers at most would throw some ideas; give inspirations and key directions to the factories to work on… The observations of Reji Paulose, Creative Head – Design and Product Development, VIYELLATEX Group, underline the significance of design and development for the Bangladesh apparel industry under the changing dynamics.

espite a new paradigm, valueadditions through product development is slowly catching up in the country. A case in point is the multidimensional business conglomerate of VIYELLATEX Group, with spinning, knitting, dyeing, accessories and printing facilities. Under the stewardship of its dynamic Chairman David Hasanat, VIYELLATEX – which caters to brands such as Calvin Klein, Puma, Esprit, Hugo Boss, Next, DKNY, Tommy Hilfiger, s.Oliver and M&S – has set up a 22member-strong design and product development team under the command and control of Reji, an alumni of NIFT with double Masters Degree in Design (from Milan) and Product Management (from Paris).

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“Unlike many, Hasanat has a vision.

He wants to move beyond being just a tech pack vendor,” says Reji, who opted to work for Bangladesh and especially VIYELLATEX, to be able to work for some of the globally-renowned brands.

After having worked in various capacities in India – Tirupur and Bangalore, and as an independent fashion consultant, Reji is already on his job in the right earnest. “Of the 22 people, six are in core designing, three are graphic designers and the remaining are in product development. Initially things were little difficult; the very idea of design development is new for Bangladesh so it

Reji Paulose (L), Creative Head – Design & PD, VIYELLATEX Group at the presentation of company’s S/S ’17 collections

was bit of a problem to get the right people. The primary requirement for design developer is to grab an idea and develop concepts on those lines. For that I went to different universities, gave mock-up classes, conducted tests to evaluate the students’ basic understanding of design and their comprehension skills,” explains the expatriate from India. Reji spent the initial eight months of his roughly one year and eight months with VIYELLATEX, in understanding the Bangladesh garment industry while also doing the groundwork to put up a hand-picked and efficient team. Today, Reji and his team have enabled VIYELLATEX to come up with some high value- added activewear, outerwear, jackets and multi-assembly products, for some of the premium brands. “We do a lot of mix media like leather with knits, faux leather and assembled jackets,” says Reji. Scarce local availability of specialized yarns is but a major constraint for the Bangladesh apparel industry to go up the value chain. “We have hence come up with VIYELLATEX Spinning Limited, which fulfils all our yarn requirements… Cotton imported from USA, Australia and other countries are processed step by step through sophisticated machineries and processes to ensure the best-quality yarn,” Reji underlines.

Working on clients’ briefings, Reji’s team has already created the capsule collection for Spring/Summer 2017 and brainstorming is at its peak to give shape to the Autumn/ Winter collections for next year.

So what is the kind of lead time, VIYELLATEX offers talking of fast fashion? “Normally we offer design cycle of 20-30 days. If one is looking for specialized wash programmes, layering, embroidery or special prints, it tends to be little more time-consuming but we try our best to manage within the specified timeframe,” Reji underlines.

VIYELLATEX is perhaps the first in Bangladesh to come up with such a skilled and professional team feels Reji, who does not fail to maintain that it is just a matter of time before others start taking to design and development to ensure business growth.

Models display Viyellatex’s Spring/Summer ’17 collections

The professional in Reji, who has the distinction of interning with Prada besides presenting his swimwear

collection for Victoria’s Secret, the success of design developer actually is in bringing best cost product to the table. “You might do an exceptional design development but the next thing you know China did the same in half the price. This is a big challenge as well as very interesting aspect too,” says Reji, who came up trumps as a cost-conscious designer when he was able to offer design innovations based on a leather jacket with gel prints originally sourced from China, for Kelvin Klein, and at a lesser price.

“Using local fabrics, I was able to give the same look and feel with diverse design options which was appreciated by the client,” maintains Reji. But the innovator in him feels the pre-requisites of faster lead time and price-competitiveness at times curtails the possibilities of creativity.

“But then I have to understand the reality and not get carried away by the prospects of designs as commercial viability is the bottomline,” Reji maintains. As such he has worked out a plan with his sales and marketing team to avoid any conflict of interest.

“Luckily for us, the sales team has given a target price and allowed us to play around with design, development and innovations within the range,” maintains Reji, who thinks India and Bangladesh garment industry have their own strengths and weaknesses. “Bangladesh is not doing all the product categories as India and vice-versa. But India has its strengths in value-additions in terms of embroidery and hand work.

Talking of fashion, India is a tad more aware of the global trends,” Reji explicates.

Prompted by his mission to give the clients new design developments based on global trends rather than depending on them, Reji is now trying to catch up on all international fairs and events, including Premier Vision, Milan Fashion Week and New York Texworld to bounce off ideas and pick up leads and new developments with other professionals to help him come up with his own creations. “We are also planning to come up with a library that would have the latest fashion and trend magazines besides regular lectures by specialists and guest lecturers to help the team update their skill-set, knowledge base and creative potentials,” concludes an upbeat Reji.

The struggles of a small buying house in Bangladesh MDof US $ 20 million INZ Sourcing Limited underlines the challenges faced by small- and medium-sized apparel sourcing agencies

Camaieu (France), Sorina (Mexico), Williams Ltd. (UK), SQP International PLC (UK), Local Boys (UK), Yorkshire Trading (UK), Popsoda (UK) and Incoiber (Spain),” states the Managing Director of the US $ 20 million-turnover company. These days Didarul depends on references to a considerable extent for his business expansion and there are reasons for it. “With multiple players in the market, references are of great help. Recently one of the factories with which I am working got me sweater business,” Didarul maintains.

He laments that approaching a new buyer without reference most of the time does not help in your business, citing example of a buyer whom he corresponded for years but is yet to get any order, small or big, indicative of how difficult it is to woo the buyers who are spoilt for choice in the existing scenario.

Didarul Islam, Managing Director, INZ Sourcing Limited

mploying around 40-50 people and helmed by Didarul Islam as the Managing Director, INZ Sourcing Limited, a medium-sized buying house based out of Mirpur, Dhaka, which started operations in 2004, is experiencing the growing struggle in conducting day-to-day businesses.

“Small factories are slowly getting out of equation due to the compliance and quality issues while bigger factories are only getting bigger and are reluctant to entertain small volume orders,” articulates Didarul.

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INZ Sourcing Limited deals in all kinds of apparels in knit, woven and sweaters, and works predominantly with both small and big volume European and American brands and retailers. “Some of my clients are TAO (France), MIM (France), Tally Weijl (France),

on a weekly basis,” explains Didarul.

For Local Boys, the agency is sourcing big volume orders but their prices are less as compared to Yorkshire Trading and Popsoda, both of which give small orders ranging from 2,000 to 4,000 pieces. INZ places orders depending on the strengths and suitability of manufacturing units, all of which are compliant and certified factories.

Though the buying agency has very close association with its clients as well as the select factories, Didarul feels that working with them is not easy. “As the quantities are usually small and getting smaller by the day, we give the styles to one single factory so that they are happy. If we give very small orders to different factories, controlling production and quality becomes rather difficult,” maintains the INZ’s owner, who assigns dedicated merchandiser and QC to each of his client in an effort to serve them more efficiently by understanding their needs, requirements and working styles better.

Known for bigger volumes and basic items, Didarul is keenly following the rise of value-added, fashionable and hitherto not so popular product categories from Bangladesh of late.

“In basics, there is hardly any benefit…

A few days back, I did 1,25,000 pieces of swimsuit order for one of my clients, who is also trying his hands in jackets,” Didarul maintains. “Now we are doing soft-shell jackets. This is one product category which seems to hold a lot of prospect and as such we are trying to build our competencies in jackets,” he endorses. But, irrespective of the strong emergence of new product categories, Didarul is surprisingly indifferent to further business expansions. And this primarily is due to the increasing manufacturing cost, diminishing margins and the sense of uncertainty amongst the not so big apparel trading houses, fuelled justifiably by the large-scale closure of small- and medium-sized factories on which these buying houses pinned their hopes to cater to their limited requirements.

Even as prices are shrinking, the list of services is getting longer with requirement of Lab (local) dips within 3-4 days and foreign ones within 7 days; Fit sample or size set samples within 4-5 days; PPS samples within 7 days; and Styling/Development samples (using local yarns/fabrics) &animation within 5-7 days. “We also update the clients on production status of orders

“Even in value-added products, the profit margins dwindle significantly with increase in volume. For example the soft-shell jackets which we are doing currently for US $ 13 apiece will go down to US $ 9 with increase in volume,” underlines Didarul referring to why dealing in specialized and valueadded apparels holds no big profit guarantee for buying houses like his.

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ODYSSEY CRAFT (PVT.) LTD.

A green facility with a difference!

Green concept is the new trend amongst the garment manufacturers of Bangladesh. Now Odyssey Craft (Pvt.) Limited is coming up with a sustainable green factory, at Depashi, Kalampur, that has obtained LEED registration (Leadership in Energy and Environmental Design) certificate.

Graphical representation of the upcoming green facility of Odyssey Craft (Pvt.) Limited

o, what makes Odyssey different from other green facilities? Even though profit remains as one of the underlining reasons, but aiming to achieve the Platinum certification, Odyssey owes its inception as much to marketing and business requirements as it is for social and environmental causes. “Being a Bangladeshi and a ‘son of the soil’, I take it as my moral responsibility to take care of my land and the environment, and also to leave something for the future generations to feel proud about.

My intention behind entering the garment industry was not to make only money, but also to generate employment for the people of my country. Profit is not paramount for me in this project as well,” explains Abu Bakar Siddique Khan Ripon, Managing Director, Odyssey Craft (Pvt.) Ltd. After a long spell with various buying houses and

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retailers including Walmart, in diverse capacities, Ripon started his first garment factory, Rio Fashion, in 2005 and having tasted considerable success in the last one decade, set along to give wings to his dream project.

To be set up on an area of 10 acres with monthly production capacity of more than 1 million pieces of denim pants, casual bottoms, padded jackets, ladies tops and windbreakers, Ripon’s target is to start trial runs by July 2017. “We are working on two distinct fronts to minimize environmental impact and ensure waste reduction, and reuse and increase efficiency while minimizing production cost,” maintains Ripon. He is also investing in sophisticated and environmentfriendly machineries to optimize productivity and reduce cost while minimizing wastage (Odyssey plans to be a zero-waste facility in the country). Odyssey Craft has revamped the cutting room with auto cutters and spreaders backed by latest cutting-edge technology. “We are also planning to ensure hundred per cent waste-water recycling and rain water harvesting for drinking and other uses,” explains Ripon, who identifies washing a major cause of environmental pollution. Equipped with 3D laser washing machines from Europe, the plant will be geared up to handle every sophisticated wash processes with wash specialists from Turkey. It would be a zero-steam washing plant with 90 per cent water recycling facility, underlines Ripon.

To complement and back the technology Ripon has worked out plans to come up with well-trained and competent workforce for thisnew project. “There will be two training centres – one close to theproject and another one at a distance of 30 kilometres, to train the operators…

In the next phase, we would undertake training for the middle-management,” says Ripon, in consultation with domain experts to design Standard Operating Procedures, HR Practices and Training Modules for higher ups in the management hierarchy currently.

“For R&D, we will set up an institute

Abu Bakar Siddique Khan Ripon, Managing Director, Odyssey Craft (Pvt.) Limited

Leaders around the world have made LEED the most widely used third-party verification for green buildings, with around 1.85 million sq. feet being certified daily.

where latest styles and washes would be developed to offer options to the customers to choose from.The designers would be from Europe, especially Spain, underlines Ripon who has made it mandatory for anyone joining Odyssey Craft to undertake training. “Even the CEO would have to take on a week-long training and orientation programme before taking up the assignment,” asserts Ripon, who has decided to go public with his company’s finances; safety measures, compliance status and other relevant information to enable buyers get all required information at the click of the mouse and maintain business transparency, a trend followed by many responsible global businesses that adheres to the codes of business conduct and ethics by making public relevant information and practices pertaining to the businesses.

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AST KNITWEAR’s CAREFUL AND CONSCIOUS SHIFT TOWARDS ‘PRODUCT DEVELOPMENT’

Md. Golam Saroar, MD& CEO, ASTKnitwear (sitting) with Sunil Kumar Lehari, Chief of Marketing & Operations, ASTKnitwear

S p e c i a l i z i n g in w i d e va r i e t y o f k n i t g a r m e n t s , c o m p a n y ’ s M D u n d e r l i n e s his b u s i n e s s p l a n a n d initiatives for A S T

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nassuming and simple, Md. Golam Saroar, Managing

Director & CEO of AST Knitwear is one of those entrepreneurs who started small to make it big by virtue of his business acumen, deep understanding of the garment industry that borders on preempting the potential markets, trends, products and above all his rare knack to make the right investments. “Initially, we started with 60 machines and used to export garments worth US $ 60,000-70,000/ month and now we export apparels worth US $ 40-50 million a year,”

maintains Saroar, who holds majority share in the US $ 50 million Bengal Hurricane Group – consisting of Arabi Fashion Limited, Bengal Hurricane Dyeing &Printing Limited, GS Embroidery, Novel Hurricane Knit Garments Limited, and AST Knitwear Limited, under its umbrella.

This year the group’s target is to achieve US $ 55 million from garment exports. “Every year we set goals and work in accordance by increasing our buyer-base and offerings,” underlines Sunil Kumar Lehari, Chief of Marketing & Operations, AST Knitwear, who is also confident

that if everything goes as per plan, exports would cross even the US $ 55 million mark by end of 2016.

Keeping with this objective as well as Saroar’s arrogation that valueadded garments would be the next big thing from Bangladesh besides also being a practical necessity to slowly move out of regular categories that already has many makers, AST Knitwear has started offering line of semi-fashionable apparels. “Till three years back we were all about basics but now 60 per cent of our products are basics and the remaining 40 per cent fashion. The value

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APARTOFBENGALHURRICANEGROUP,AST KNITWEAR ISANOEKO-TEXANDBSCI-CERTIFIEDCOMPANY ESTABLISHED IN2004, THECOMPANYAND MANUFACTURESWIDERANGEOFKNIT PRODUCTS,INCLUDING T-SHIRTS, POLOSHIRTS,SWEATSHIRTS,HOODIES,FLEECESHIRTS,TANKTOPS,LEGGINGS,SKIRTS,LADIESTOPS, ETC,TOCATERPRIMARILYTOEUROPE,USAANDJAPAN.ITHASPRODUCTIONCAPACITYOF9,00,000 PIECESPER MONTHANDCOUNTSNAMESSUCHASDEBENHAMS,INDITEX,ESPRIT,H&MANDUNIQLOAMONGSTITS CLIENTS.

additions are through different washes, performance fabrics, hand embellishments, embroidery and exclusive prints. We believe that if you want to be sustainable, you will have to change the mode of business and be flexible. In Bangladesh, many companies have closed down due to wrong business strategies and lack of flexibility,” explains Saroar, who holds a distinct advantage in offering exclusive prints by virtue of his in-house dyeing and printing facility – Bengal Hurricane Dyeing & Printing (Pvt.) Ltd., a BangladeshDenmark joint venture, taken care of by his Danish partner and Technical Director, Henrik Ellerbaek, who also oversees the operation of the fabric department.

A vertically integrated entity with fabric manufacturing facility (producing 28,000 kg fabrics every day in different texture and construction like Single Jersey, Interlock, Pique Polo, Viscose, Lycra, Nylon, Polyester, 1X1 and 2X2 Rib Fabrics, Pique Fabrics, Fleece), dyeing (22 tonnes per day) and finishing facilities, AST has also started producing overdyed garments in the women’s wear section. To get an edge over competitors and encouraged by buyers like, Cecil, Esprit, Boboli and APG, which offers better prices for value-additions and novel developments, the company has also set up a full-fledged product development team. “There are in all 80 people; 12 are in design team while the sampling section, which again is a part of the design team has 50 people, and the rest are in R&D,”

ESSENTIALS Taking cognisance of the fact that to ensure business growth one needs to keep changing and add more value to the operations, the company’s CEO has already envisaged, and is working with due diligence on the pure hardcore manufacturing aspects by developing systems and producing more value within the existing setup.

Saroar maintains. R&D’s job is to make developments in fabrics while the design team looks after fashion development endeavours.

An astute business mind, Saroar has also taken cognisance of the fact that to ensure business growth one needs to keep changing and add more value to the operations.

Product-centric activities being taken care of through diversification, R&D and value additions, the pure hardcore manufacturing aspects by developing systems and producing more value within the existing setup is something the company’s CEO has already envisaged and is working on with due diligence. He is planning to introduce new interventions,which comes at a substantial cost, and is expected to prove beneficial in long run. “To improve efficiency, we are going for a hanger system which will be integrated with the ERP. The trial run for the same will start in a month’s time,” underlines Saroar.

Eurotex is his first choice for the hanger system while the ERP would come from STAGE, India. Doing comparatively smaller volumes of value-added products until now AST is yet to decide on programme/s to be assigned to this new system.

“Initially we will keep changing the styles. The system will be the same where there will be flexibility to connect new lines or reduce the number of lines. Depending on the efficiency that we get, will decide if it would be for a single product in bigger quantity or different products in smaller volumes. But, I don’t think the system would be very feasible for smaller programmes,”

Saroar explains, for whom RoI is not a pressing issue. “We are not looking at immediate returns but are sure of long-term advantages.

ROI aside, this system would also give us several other benefits like gaining better control over the shop floor,” says the Head of Marketing &Operations of AST, who is joined by Saroar to explain how to identify the right investment opportunities.“Scope of investment in this business is so huge that spending thousand crore Taka is no big deal and yes one has to invest to keep relevant as well. But that does not mean doing it aggressively; one needs to first analyze the market and check the feasibility factor before any big expense,” says Saroar, who criss-crosses the globe several times over in a year to touch base and interact with garment professional from across geographical locations and attend all possible events to keep abreast of new developments.

Despite all the success, Saroar feels there’s no place for complacency in the garment industry. “This is such a sensitive business that the very moment one loses control, the damage is done, and it is very difficult to recover from there,” cautions AST’s MD. Keeping eyes and ears open at all times to pick up the clue at very first instance and work out requisite action plans is the best possible bet against business loss, feels AST’s owner. “… Also, whenever there is any new development or a change, we prepare ourselves and if need be, make investments as well to maintain our competencies,” concludes Saroar.

Bangl ades h B a n k ' s l owc o s t fund for workers' dormitories Bangladesh Bank has recently approved lowcost funds to 13 apparel manufacturers to build dormitories for their workers in order to provide them with better living facilities. This was informed by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) officials to the media recently.

“It is a good start, which is necessary for the sector.

I think it will give a better living opportunity for the workers,” BGMEA VicePresident Mahmud Hasan Khan Babu reportedly told a Bangladesh daily. Hasan also called upon the Government to allocate more funds for the sector so that each and every factory owner can erect hostel for their workers.

It may be mentioned here that according to an agreement signed between Bangladesh Bank and BGMEA, the Central Bank will provide loans at 1.5 per cent interest and the loan amount has to be repaid in 15 years. Of the construction cost, Bangladesh Bank will provide 60 per cent, which would be calculated on the basis of land price and construction cost. If the land price amounts to 40 per cent of the total cost, the factory owners would not have to pay any amount while Bangladesh Bank will pay the full construction cost.

According to the BGMEA, the US $ 28 billion RMG industry employs 40 lakh workers, of which 80 per cent are women, and mostly from rural areas.

Higher i n c e n t i v e f or l e a t h e r s e c t o r irks environmentalists The Government’s recent move to increase cash incentives for leather goods exporters hasreportedly led to protests from the country’s environmentalists in the backdrop of reported failure of tanneries and garment factories to shift from Hazaribagh, leading to pollutionof Buriganga River and water bodies of nearbyareas.

According to reports, a joint meeting between the Ministries of Finance and Commerce attended by the respective Ministers,AMA Muhith and Tofail Ahmed, decided to increase the cash incentives for leather goods exporters to 15 per cent from the current 12.5 per cent, which would reportedly cost the exchequer additional expenditure of BDT 300 crore.

Reacting to the Government’s decision, General Secretary of Bangladesh Paribesh Andolan, MA Matin reportedly said that by

increasing the cash incentives to the ‘errant tanners the Government has raised fresh doubts about its commitment to shift the polluting factories’ from the capital’s densely populated neighbourhood. Matin also reportedly blamed a powerful group in the Government of ‘backing the errant tanners’.

However, in a letter addressed to AMA Muhith, the President of

Bangladesh Tanners Association (BTA), Shaheen Ahmed reportedly assured the Minister that they were expecting to relocate their factories to Savar within months. He said that in the backdrop of recession in some of the developed economies and continuous fall of Euro, the tanners needed increased cash incentives to retain competitiveness of leather and leather goods theyexport.

Bangladesh, I ndia i n t e g r a t e Benapole -Petrapole c h e c k - p o s t and trade worth around US $ 5 billion takes place at Petrapole, which is more than all the other Indian land ports and landcustoms stations puttogether.

Taking business relations a step higher for mutual benefit, Bangladesh and India recently merged the busiest land check-post at Benapole-Petrapole, which according to the Indian High Commission will also be the biggest land port in the entire South Asia.

Aimed at eliminating infrastructural bottlenecks to achieve “effective and efficient” security, immigration, customs, and quarantine functions, Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi opened the new ‘Petrapole Integrated Check Post’ (ICP) through a video conference. West Bengal Chief Minister Mamata

Banerjee also reportedly joined the duo from Kolkata.

The second ICP on the IndiaBangladesh border after the one in Agartala (in Tripura, India), and the biggest anywhere on India’s borders, around 70 to 80 per cent of the India-Bangladesh trade reportedly passes through Benapole-Petrapole

According to reports, the next land customs station to be upgraded will be Dawki in Meghalaya (India), where land acquisition for the project has already been completed.

Bangladesh-India relations witnessed an array of engagements in recent years which received a booster after Hasina Government recently opened transit facilities to India, enabling it to carry goods to its northeastern states through Bangladesh.

RMG f a c t o r i e s r e c t i f y 64% of s a f e t y f ault s : A c c o r d

PM f or speeding up of EZ e s t a b l i s h m e n t process

The Accord on Fire and Building Safety in Bangladesh, in its latest progress report, stated that 64 per cent of safety faults in the readymade garment factories that produce for European retailers have been corrected till July.However, it also underlined that most of the factories remained behindschedule in their remediationwork.

Underlining that prime and foremost goal of establishing economic zones was to create employment opportunities to expedite industrial development in the country, Prime Minister Sheikh Hasina asked the Bangladesh Economic Zone Authorities (BEZA) to speed up the process of establishing economic zones in the country.

The report also mentions that electrical remediation achieved highest 80 per cent progress; structural remediation witnessed merely 40 per cent progress, while 60 per cent of fire-related issues were fixed. During the inspection, the Accord found 19,790 structural faults in the factories and up till July

only 3,854 issues were corrected; while out of 33,613 electrical safety risks, 23,403 issues were remediated. Initial inspection was conducted in 1,648 factories and out of them 1,402 factories remained behind the schedule in implementing the corrective action plan.

Fifteen factories have completed all remediation work while 34 factories were terminated by the platform from its supplier list due to failure in implementing the workplace safety measures, thereport stated, adding that now the Accord inspectors are conducting followups and verification inspections in the factories to speedup remediationwork.

Briefing newsmen after a meeting of BEZA’s Governing Board, PM’s Press Secretary Ihsanul Karim maintained that Hasina put emphasis on a self-reliant economy for country’s fast economic progress and creating job opportunities through mobilizing more public and private investments. “To ensure overall development of the country is the main goal of our Government and for this we’re continuing our efforts for industrial development and thus creating more employment opportunities,” Hasina reportedly said. The meeting was also attended by Finance Minister Abul Maal Abdul Muhith, Industries Minister Amir Hossain Amu, Commerce Minister Tofail Ahmed, Road Transport Minister Obaidul Kader, Environment Minister Anwar Hossain Monju, Planning Minister AHM Mustafa Kamal, Executive Chairman

E x p a t s in RMG sector to get special s e c u r i t y : Repor t s The recent terror attack at a cafe in Dhaka which killed nine Italians, associated with the country’s flourishing RMG sector, besides seven Japanese (involved with developmental projects in the country) amongst others, seems to have prompted the authorities to take measures to tighten foreigners’ security in the country! To bring the foreigners working in the country’s apparel industry under special security net, Bangladesh Industrial Police are reportedly collecting information pertaining to the expats, according to media reports.

“Industrial Police are collecting information about foreigners working in the apparel industry to learn about their numbers and locations to ensure security,” reportedly maintained Bangladesh Garment Manufacturers and

Exporters Association’s (BGMEA) Vice-President MahmudHasan Khan Babu to a news daily, underlining that the final list of foreigners will be made very soon and police will sit with the trade body leaders to devise ways to provide them more protection.

Meanwhile, Industrial Police Director General (DG) Abdus Salam reportedly met the BGMEA leaders to discuss on the issue and find out ways to provide fullfledged protection to foreigners.

“We are taking measures to ensure security so that foreigners can move and work without any fear as before and feel safe here,” reportedly maintained DG of Industrial Police.

The security steps also aim to keep the RMG business out of adverse impact in the wake of security concerns, Salamsaid.

of the Board of Investment Dr. SA Samad, State Minister for Power Nasrul Hamid, PM’s Principal Secretary Abul Kalam Azad, Bangladesh Bank Governor Fazle Kabir, Federation of Bangladesh Chambers of Commerce and Industry President Abdul Matlub Ahmad, among others. Sheikh Hasina, who is also the Chairman of BEZA – a forum under Prime Minister’s Office to establish about 100 economic zones in the country to encourage rapid economic growth through expansion and diversification of industry, employment, production and export, reportedly also underscored the need for ensuring overall development of the country and the region through attracting more public and private investments. In this connection, the Prime Minister maintained that her Government wants to strengthen the regional cooperation with neighbouring countries through linking Bangladesh with Bhutan, India and Nepal (BBIN) and establishing Bangladesh, China, India and Myanmar (BCIM) Economic Corridor.

Wa l m a r t t o a c q u i r e J e t . c o m f or w h o p p i n g US $ 3 bill i on In the world of retail where competition is steep, companies are preparing themselves for a better future! In a recent development, Walmart Stores Inc. has decided to buy Jet.com – which is amongst the fastest growing and most innovative e-commerce companies in the US market – for a handsome amount of US $ 3 billion (additional US $ 300 million worth of Walmart shares will be paid over time as part of the transaction), to compete with the e-commerce retail giant Amazon in a bigger way.

It may be mentioned here that the online business of Walmart

grow faster; the seamless shopping experience we’re pursuing will happen quicker; and we’ll enable the Jet brand to be even more successful in a shorter period of time and our customers will win.

It’s another jolt of entrepreneurial spirit being injected into Walmart,” said Doug McMillon, President and CEO of Walmart Stores Inc.

remained sluggish over the past year. Therefore, the Jet deal happens to be management’s effort to boost and line-up online growth.

“We’re looking for ways to lower prices, broaden our assortment

and offer the simplest, easiest shopping experience because that’s what our customers want.

We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will

Both Jet and Walmart will uphold their distinct brands… While Walmart will emphasize on delivering the company’s Everyday Low Price Strategy, Jet will go on to provide a unique customer experience with curated collections.

Adidas, t h e ‘most VF Cor por at ion relevant' brand in China a p p o i n t s n e w Global Br and Pr esident f or Ti m b e r l a n d Sportswear giant Adidas has yet again proved its mettle by becoming the ‘most relevant’ brand in China!

The retailer is way ahead than other brands like Zara, Nike, Uniqlo and H&Mas far as popularity amongst Gen-Y and Gen-Z in China is concerned. This was revealed in a recent survey done by RTG Consulting Group, which studied

4,000 of China’s Gen-Y, popularly called the ‘Millennials’, born between 1980 and 2000, and Gen-Z, the group born since just before the start of themillennium.

The index also indicated that fashion brands are more significant for Gen-Z and as far as Gen-Y is concerned, technology is the major pull for them.

In the list of most relevant fashion brands, Zara stood second, just after Adidas for Gen-Y, followed

by Nike, Uniqlo, and H&M. As far as Gen-Z is concerned, Nike stood second, followed by Uniqlo, Zara, and Converse.

“The results were surprising as there were a number of brands we did not expect to see ranked in the top 10, and for some we were even more surprised which did not rank at all. It certainly goes to show how if brands do not pay attention to how fast the market landscape can change, they risk not being relevant to today’s consumers,” said Angelito Tan Jr. Chief Executive of RTG Consulting Group.

VF Corporation, a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories, has appointed Jim Pisani as Global Brand President, Timberland, effective immediately. He is replacing Stewart Whitney who left the company in July this year.

Commenting on the appointment, Scott Baxter, Vice President, VF said, “Jim is a tremendously talented and accomplished executive with a proven track record of delivering consistent business results and generating new growth opportunities. His passion, energy, and embodiment of the values deeply rooted in the Timberland brand and in VF make him the ideal leader to guide the brand into its next phase of global growth.”

Pisani most recently served as President of VF’s Licensed Sports Group, which includes the Majestic ® brand. He reportedly joined VF in 2008 as President of VF Licensed Sports Group. Prior to VF, he was engaged in branding, merchandising, sales and marketing operations at Pepsi Co and Kraft Foods.

Excited about his new role, Pisani said, “There are so many opportunities in front of the Timberland brand and I look forward to partnering with the talented teams around the world to leverage our collective strengths and accelerate growth.” Timberland is engaged in the design, manufacturing and marketing of premium footwear, apparel and accessories for the outdoor lifestyle.

LVM H sells Donna K a r a n t o G-III Appar el Amidst speculations, LVMHhas finally agreed to sell Donna Karan International to G-III Apparel Group Ltd. in a deal valuing the lossmaking fashion brand at US $ 650 million. The deal is expected toclose in late 2016 or early 2017, as said in a joint statement. G-III will gain the Donna Karan and DKNY brands, as per thedeal.

Morris Goldfarb, Chairman, Chief Executive Officer and President of G-III averred, “Donna Karan International is an iconic global fashion company. Its lifestyle aesthetic resonates well with consumers throughout the world.

We are excited to build upon its strong foundation as we seek to capitalize on a significant market opportunity. Donna Karan brings increased scale and diversification, while providing incremental growth on top of our portfolio of some of the best fashion brands in the world. We believe we are well positioned to create and sustain additional value for our shareholders, partners, and customers.”

However, industry analysts estimate DKNY’s annual sales at

US $ 450-500 million, which means that G-III would be paying 1-1.5 times the annual revenue that will be less than the 1.9 times LVMH paid while buying the brand in year 2001.

“Donna Karan International has a deep heritage, global recognition, and renewed energy. We believe the DKNY brand has a dynamic position in the market, and when G-III approached us about acquiring the brand, we concluded that the time was right and that G-III was the right steward going forward. We are pleased to have reached an agreement with G-III, a company that has the expertise and capabilities to broaden the brand’s distribution and take it to its next level of success,” said Toni Belloni, Group Managing Director of LVMH.

Wa l m a r t ' s M e x i c o u n i t selli ng i t s clothing chain El Puerto De Liverpool (Liverpool), one of Mexico’s department store operators which has more than 100 outlets, will pay US $ 852 million to buy Suburbia clothing chain of Walmart Stores’ Mexican unit. Liverpool will buy Suburbia with its 119 stores and real estate including debt of 1.4 billion pesos.

This move is part of its efforts to streamline and sell businesses not central to overseasoperations.The retailer acquired Suburbia’s parent

supermarket chain Cifra in 1997.

Suburbia has stores in 46 cities and is popular with urban shoppers, ranking among Mexico’s top five department stores. It contributed around 3 per cent to Walmex’s overall revenue last year. Walmart’s international division, which contributes roughly one-thirdof the company’s total annual sales of nearly US $ 480 billion, has already divested some non-core businesses across Chile, Mexico andCanada.

JCPenney r e p o r t s 2.2% sur ge in comparable sales; a p p o i n t s n e w Chair m an American fashion retailer JCPenney has announced its financial results for the second quarter ended July 30, 2016. The company reported a surge of 2.2 per cent in comparable sales.

Its net loss improved by 52 per cent to US $ 56 million against the prior year.

For the quarter, Sephora, Home, and Footwear and Handbags were the company’s top performing divisions. SG&A expenses in the reporting period decreased US $ 48 million to US $ 853 million. The company reiterates its outlook 2016 and expects its comparable store sales to achieve an increase of 3 per cent to 4 per cent.

In a separate development, the company appointed Marvin R. Ellison as the new Chairman of the company, effective August 1, 2016. Ellison succeeds Myron E. Ullman III who will

be retiring in accordance with the transition plan that the company outlined in 2014.

“I am pleased that the board has appointed Marvin as Chairman. Over the past year-and-a-half, he has proven himself to be the right leader for our company, as we have made significant progress in implementing the changes needed to rebuild JCPenney into a successful, modern retailer with a profitable and sustainable business. It’s been a privilege to work closely with Marvin, and I am pleased to know that this company is in good hands for the future,” states Ullman while expressing his delight over Marvin’s appointment.

Marvin has been the CEO of JCPenney since August 2015.

Earlier in 2014, he served as Executive Vice President of US Stores of The Home Depot Inc., a home improvement specialty retailer.

JCPenney, one of the US’ largest apparel and home furnishings retailers, operates over 1,000 store locations across the country and Puerto Rico.

Change of guar ds a t Ta r g e t post of Director of Logistics and Supply Chain Strategy at Apple, where he was responsible for the transformation of logistics operations to support an omnichannel distribution model.

Target Corporation, the secondlargest discount retailer in the United States, has announced Don Liu as the new Executive Vice President, Chief Legal Officer and General Counsel, effective August 22, 2016. Liu will be replacing Tim Baer, who is to retire in July next year after his 23 years of venture with the company. Baer will serve in an advisory role for the next 12 months, supporting Liu’s transition to Target.

Commenting on the appointment, Brian Cornell, Chairman and Chief Executive Officer of the company said, “I look forward to having on board Don with our team. His extensive legal expertise as well as his deep business acumen will help us continue to navigate the increasingly complex business environment with the highest standards of ethics and integrity.”

Liu will oversee all the legal matters, corporate governance and Government affairs of the company.

Liu with his extensive professional affiliations joins Target from Xerox Corporation, where he served as Executive Vice President, General Counsel and Corporate Secretary

Don Liu, Executive Vice President, Chief Legal Officer and General Counsel, Target

since 2007. There also he had responsibilities similar to Target.

On joining Target, Liu said, “I am privileged to join Target as general counsel. Joining the organization will provide me with an incredible opportunity to bring my passion for the law to one of the great retail companies in America. I look forward to building Target’s business and positively impacting its reputation.”

Meanwhile, Target has roped in Ben Cook, the ex-Director

from Apple, as the Senior Vice President for Global Logistics, Inventory Allocation and Replenishment. He will lead the optimization of Target’s inbound and outbound supply chain processes.

Ben Cook brings in the experience of leading a range of supply chain functions, from international transportation and distribution to inventory control and directto-customer delivery. He comes to Target most recently from the

“The opportunity to apply creative thinking and my past experience to a supply chain of this scale is exhilarating,” said Cook, adding, “Target has a reputable brand and a loyal guest base already in place, and I’m excited to be part of the team building an operation for the future that strengthens guest love and drives long-term company growth.”

Cook’s responsibilities will include overseeing inventory allocation and replenishment, merchandise planning operations and global logistics. On his appointment, Target’s Executive Vice President and Chief Supply Chain and Logistics Officer, Arthur Valdez averred that Ben’s expertise and proven track record in cutting cost and reducing complexity in the name of speed will be an incredible asset to Target. He believes that Cook is the right addition to strengthen Target’s supply chain.

Hugo Boss t o c l o s e s t o r e s as pr of it d e c l i n e s Hugo Boss, a Germany-basedluxury fashion house, recently reported that its quarterly net profit plunged 84 per cent to US $ 12.25million and sales dropped by 4 per cent. As a consequence of the poor results, the retailer will now be closingdown some of itsstores.

“The fashion house would shut another 20 stores and refocus on its US business as it cuts its full-year outlook following a dropoff in second quarter profits,” informs Mark Langer, Chief Executive of Hugo Boss adding that the decision has been taken to once again return to the profit making path. However, the market environment will remain

challenging for the foreseeable future, adds Mark who replaced Claus-Dietrich Lahrs in the month of May for the position he is currently operating at. He wants the brand to focus more on menswear.

Earlier in March this year, Hugo Boss announced closure of around 20 of its 145 stores in Greater China and 20 less-profitable stores globally in the next 18 months, with its strategy to focus on selling the brand at high-quality outlets in the US market in an effort to minimize discounting.

The fashion brand is now expecting its full-year currency adjusted sales to fall between 0

per cent and 3 per cent, while it expects earnings before interest, taxation, depreciation and

amortization (EBITDA) before special items to fall between 17 per cent and 23 per cent.

Rising w a g e s in China t o c r e a t e j obs in Sout h Asia: WB Repor t As per the latest World Bank report titled ‘Stitches to Riches: Apparel Employment, Trade and Economic Development’, in view of rising wages in China, the global garment industry will shift for cheaper production alternatives in South Asia. This move is expected to create 1.5 million new jobs in the South Asian countries.

China surges by just 10%, South Asia’s exports to key markets like the US and EU would increase by 13-25% while the South-east Asian countries would fare even better, with a 37-51% increase.

Although China still dominates the global apparel market with a share of 41% to that of 12% of South Asia, sourcing in China is becoming increasingly costly for important export markets like the US and EU that are already scouting for alternatives. It may be mentioned here that among the South Asian countries, Bangladesh, Sri Lanka and Pakistan are considered big winners in terms of garment exports to the US, states the World Bank report.

The report further mentions that the South-east Asian countries – Cambodia, Indonesia and Vietnam, are outperforming the South Asian ones – Bangladesh, India, Pakistan and Sri Lanka, in terms of overall apparel export performance, product diversity and non-cost related factors important to global buyers.

Furthermore, if the labour cost in

Vietnam's NWC for 7.3% Cam bodia s e e k s FTA minimum wage rise with UK In a recent development, Vietnam National Wage Council (NWC) has reportedly finalized on minimum wage increase of 7.3% for the year 2017. The option for wage hike will soon be proposed to Nguyễn Xuân Phúc, Prime Minister of Vietnam, for approval.

“The council has agreed onminimum wage hike ranging between US $ 8.07 and US $ 11.21 for four regions of Vietnam, following which the regional wages will range from US $ 115.69 in region 4 to US $ 168.16 in region 1,” said NWC

Head, Pham Minh Huan, who also serves as MoLISA (Ministry of Labor, Invalids and Social Affairs) Deputy Minister. Supporting the proposal, Hoang Quang Phong, Deputy Head of Vietnam Chamber of Commerce and Industry averred, “The rise of 7.3% presents an effort of employers as there remain many difficulties in Vietnam’s business situation.” On the contrary, Mai Duc Chinh, Director of Vietnam General Confederation of Labor (GCL) said that his confederation was not satisfied with the rise.

At a recently held meeting between Cambodia and Britain, the sole topic on the table was the much-anticipated Free Trade Agreement (FTA) between the two countries following ‘Brexit’. The Cambodian Commerce Minister Pan Sorasak pushed for a speedy deal in a bid to strengthen their bilateral trade and economic ties during the meet.

British Ambassador to Cambodia Bill Longhurst has advised the Minister to wait until the end of 2016 or early next year to get a confirmation on whether Cambodia needs to sign the FTA with Britain or whether the current tariff-free agreement with the EU under the ‘Everything But Arms’ agreement will be sufficient in terms of trade between the two countries.

Kaing Monika, Deputy Secretary General of Garment Manufacturers Association in Cambodia (GMAC) is of the

opinion that Cambodia will not feel the direct impact of Brexit, for the time being, despite it being one of the main destinations for the country’s garment exports as it accounts for about 45% of Cambodia’s total garment exports.

It may be mentioned here that bilateral trade between Cambodia and Britain rose from about US $ 749.01 million in 2013 to US $ 807 million in 2014, according to the Ministry of Commerce, Cambodia.

Kor ea - M yanm ar j o i n t venture to produce FOB g a r m e n t s

India inks MoU w i t h Afghanistan; hikes duty drawback rates

Myanmar-based investment company Olympus Asia Group has signed a Memorandum of Understanding (MoU) with Panko Corporation, a global clothing company based in Korea, and is looking for land (500 acres) in Yangon, Bago or Ayeywarwady regions of Myanmar to set up garment factories for the manufacturing of Free-on-Board (FOB) garments, depending on best combination of costs for electricity, employees and logistics.

Synthetic and Rayon Textile Export Promotion Council (SRTEPC), an apex body of Indian textile industry, and Southern Gujarat Chamber of Commerce and Industry (SGCCI) have jointly signed a Memorandum of Understanding (MoU) with a delegation from Afghanistan to boost export of polyester fabrics and made-ups. The signing took place at the ‘Source India 2016’ exhibition in Surat (India).

The project will commence within a year and it will take around three years to build the required infrastructure, mentions U Okkar Zaw Naing, CEO of Olympus Asia Group, while adding thatthe

factories thus established will operate under the FOBmodel.

Naing further added that the integrated factories will create between 40,000 to 60,000 job opportunities for the people of Myanmar. The company will also offer training to the employees along with competitive salaries.

Also, the joint venture will set-up an international-standard waste water treatment plant; generate its own electricity; and construct dormitories for garment workers.

The companies will produce their own cotton and buttons in Myanmar, as well as producing clothes for export, thus working towards complete vertical integration and self-sufficiency.

“Afghanistan is a promising market for the export of textile fabrics from Surat and other MMF centres across the country.

We are expecting to triple our direct export from India to Afghanistan in the next couple of years. Afghanistan traders are more than willing to enter into direct business with traders in Surat and other places,” Narain Agarwal, Vice Chairman, SRTEPC told a leading Indian daily.

Currently, Indian exporters are not extensively engaged in direct trade of textiles with Afghanistan which they sell to it through third countries. At the moment, trade with Afghanistan stands at around US $ 165 million, which also includes fabric

‘Sri L a n k a n o t t o be m a j o r l y a ff e c t e d by Brexit' Throughout contemplation of the impending effect of ‘Brexit’ on Sri Lanka’s economy, especially for the garment sector which counts UK as one of its major export destinations, experts believe there won’t be any major impact of the ‘Brexit’ over the country’s apparel sector.

The observation was made by Dr. Amila Kankanamge, President of Colombo Chamber of Commerce as he expressed his views on Britain’s exit from the European Union stating that Sri Lanka needs to develop a strong local economy which is unaffected by international incidents. “However this does not imply that our national economic model should be created based on European political and economic factors,” he adds.

Kankanamge stated that since clothing is a basic humannecessity, a large number of countries around the world produce and buy apparels. And hence, it is decisive to develop a second market place for the products so that in case of crisis in the main market, goods could be sold through this alternative market until the situation is resolved.

He further said that Sri Lanka should have a proper methodology to monitor the behaviour of the international marketplace so that the country could issue local products for sale accordingly in the regional as well as international markets. Kankanamge concluded by stating that if Sri Lanka maintains good quality in the apparels produced locally, it would not lose its position in the global market.

exports worth US $ 161 million, made-ups worth US $ 3 million and polyester yarn worth US $ 1 million. Now with this MoU in place, it is expected that trade between the two countries will further increase.

In a separate development, the Indian Government has recently announced increase of duty drawback rates to 4.7% as against the previous 3.2% for exports of non-fabric inputs made from imported fabrics under the Advance Authorisation Scheme in view to boost high-value apparel exports and support its declining exports.

The Finance Ministry informed that any concerns arising from the new schedule of rates will be taken into account by an Expert Committee. Duty-free import of fabric under the Special Advance Authorisation Scheme shall be allowed for export of articles of apparel and clothing accessories for export of items covered under Chapter 61 and 62, subject to the terms and conditions.

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HFL In service of the industry!

STARTING AS A GARMENT MANUFACTURER, MANAGING DIRECTOR O F HAMID FABRICS LIMITED (THE TEXTILE UNIT O F MAHIN GROUP) SHIFTED TO FABRIC PRODUCTION TO MEET RMG SECTOR’s BURGEONING REQUIREMENT FOR RAW MATERIALS... extiles manufactured in Bangladesh today contribute around 40% of the total fabrics’ demand of the export-oriented RMG sector while the remaining is sourced from various fabric destinations globally, indicating an abysmally skewed demand-supply scenario existing in the country. Despite the share of domestic yarn and fabric supporting RMG sector increasing over the years, the absolute gap between demand and supply only kept rising owing to the high growth of RMG exports. “As things stands today, Bangladesh needs more textile mills than garment factories. In the existing scenario even 10 more Hamids would not be enough to meet the burgeoning fabric demand. Textile thus is a better way of serving the nation than coming up with a RMG unit,” rightly points out Abdullah Al-Mahmud, Managing Director of Hamid Fabrics Limited (HFL), who started his career as a garment manufacturer but shifted focus exclusively to fabrics, lately.

T

Abdullah Al-Mahmud, Managing Director, Hamid Fabrics Limited (HFL)

“Garmenting now is a small part of my business. In the 1990s, I was one amongst few big players in garment manufacturing in Bangladesh…,” reminisces Abdullah, who wound up one of his two RMG units in 2003 and the other one, although operational, is more into subcontracting business now. “Though I have been approached by the buyers several times, I refrained from manufacturing garments,” states HFL’s Managing Director underlining how other garment manufacturers felt threatened by the prospect of him weaning away their clients. The company is now contemplating to set up a green garment factory (still at the drawing board stage) for its own brand of apparels.

HFL, which has all the processes in-house right from weaving to dyeing and finishing except spinning, sources the yarns majorly from countries like India, Vietnam, Indonesia, Thailand, etc.,

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Hamid Fabrics has a Sri Lankan expat to look after marketing; another one is from Hong Kong who is in-charge of production.

There is also a Malaysian expert, incharge of the yarn dyeing facility; while the heads of maintenance and weaving are both from India.

depending on the kind of yarns that it requires. In pipeline for HFL is a 50,000-spindle spinning facility, to come up sometime late next year.

The company produces around 2.5 million yards of high-quality fabrics every month in more than 150 constructions which include Twill, Canvas, Oxford, Ribstop, Bedford Cord, Ottoman, Herringbone along with 100% cotton and blended fabrics mixed with Rayon, Spandex and other similar yarns. Also, Hamid Fabrics highly automated yarn

about the right machines but also product development and innovative offerings, and to facilitate which he has his eldest daughter Nusrat Mahmud, a qualified fashion designer from Polimoda (Florence, Italy) and also the Director of HFL, to helm the planned design studio and work in tandem with the full-fledged and seasoned R&D team to deliver the much-needed thrust as HFL sets in motion with the massive expansion drive. “These days the oriental concepts are gaining popularity,

We have a lot of flexibility, so much so that I can even do 200 metres of fabric. I have installed different sizing and warping machines in it,” explains Abdullah putting to rest all doubts on the feasibility of going for value-added fabrics.

Nominated supplier for brands such as Abercrombie & Fitch, V&F, H&M, Uniqlo and the likes, Hamid Fabrics’ turnover from fabrics is around US $ 85 million currently, which Abdullah aspires to take well past the US $ 100 million mark by next year. Apart from

Some of the offerings from Hamid Fabrics Limited (HFL)

THECOMPANYPRODUCESAROUND2.5 MILLIONYARDSOFHIGH-QUALITYFABRICS EVERY MONTHINMORETHAN150 CONSTRUCTIONSWHICHINCLUDETWILL,CANVAS, OXFORD, RIBSTOP,BEDFORDCORD,OTTOMAN,HERRINGBONEALONGWITH100 COTTONAND BLENDED FABRICSMIXED WITHRAYON, SPANDEXANDOTHERSIMILAR YARNS dyeing facility at Narsingdi, a short distance from Dhaka, would be up and running in a month’s time.

“With this new plant, our production capacity will add up to 3.5 million yards per month,” says Abdullah, who has installed loops from Toyota for this facility.” According to him investing in high-end machines, although is a costly affair, is worth doing considering hassle-free performance and quality output.

The company’s MDrealises that the drive for growth today is not only

so we might hire people from Korea or even Japan for the design studio… Initially, it would be only for the fabric segment,” maintains Nusrat, determined to move up the value chain to offer high-end and differential fabrics to her clients. But, considering HFL’s huge setup and equally large production capacity, producing high-end and fashionable fabrics, which are mostly made in smaller quantities, prove to be an impediment? “Not at all; I have designed this facility differently…

capacity enhancement, HFL’s name and standing in the global arena for quality and timely delivery would be the other vital keys in achieving this goal, feels Abdullah. “… I would rather not do a project than compromise on quality of the product, employee welfare and environmental safeguards,” maintains HFL’s MD on a parting note, whose pursuance of excellence, quality and services, made Hamid Fabrics Limited what it is today, a leading and reputed fabric supplier from Bangladesh.

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Heat Insulation: AGREEN SOLUTION FOR SAVING ENERGY The sun’s heat drastically increases the load on the Heating, Ventilation and Air Conditioning (HVAC) system of a buildingor a factory, in turn increasing the electricity consumption.

However, a significant amount of load can be reduced on the HVAC system by applying a heat insulating coat in the form of paint or tiles on theexterior walls andthe roof.

ompanies that are providing these heat insulating solutions claim that these solutions can reflect back up to 95% of the heat, in turn reducing the temperature of the surface of the roof by almost 20° C and bringing about a difference of 5-8° C inside the room. “Under the direct exposure, when the outside temperature is 45° C, the temperature of the ceiling is nothing more than 35° C and of the concrete roof is 70° C, and after applying our solutions the same comes down by 20° C, comfortable enough to walk on the surface with bare feet,” states Sameer Roy of Himani Insulation, dealers of Thermatek’s heat insulating products.

C

The rooms built directly under the roof of the building inflict the highest load on the HVAC system as the ACs run at 18° C. Hence, if such solutions are applied, the air-conditioners would run at a moderate load, consuming significantly less power.

“These solutions can also affect the health of a person because if a person comes out in an air-conditioned cabin or room in an open area with a higher temperature, on a regular basis, he/she is bound to fall sick,” highlights Sameer. With summers lasting for almost 9 months in all the apparel manufacturing hubs, direct savings range from 30% to 50% in the electricity bills while the indirect savings are numerous as companies can do away with the air-condition in some areas and scenarios. During winters, it works in the opposite manner, by not letting the heat inside the room move out through the walls or the roof as the building is completely enveloped, thus maintaining the comfortable temperature inside the room. The reduction of temperature inside the building helps in cutting down the power consumption by up to 50%,

Heat-resistant tiles appear like normal white tiles

The sun's radiation hits the roofsurface

Solar reflectance: The function of solar energy that is reflected by the roof

Thermal emittance: The relative ability of the roof surface to radiate absorbedheat

Some heat is absorbed by the roof and transferred to the buildingbelow

Only some amount of heat is absorbed by the roof after being heat proofed

again because of the reduction in the use of room heaters.

The effect of these systems increases with the increase in amount of heat. Most of these heat proofing solutions conform to Green building requirements and help in reducing the carbon footprint by saving almost 25-40%. There are a few factors upon which the effectiveness of their product depends:

• Windows & their opening inside the room – The amountof heat coming inside the room would vary with the openings and glass windows in the room.

• People inside the room – The net amount of heat produced by the individuals due to exhalation inside the room would increase with the number of individuals inside the room.

Dry CoatingFilm

Table 1: Comparison of different heat proofing solutions Sr. No.

Company name

Product name

Reduction Recoating in Interval temperature (° Celsius)

1

Dr. Fixit

LEC(Low Energy Consumption) System

8 to 10 (inside the building)

4years

Costing

Process

Rs.280 per sq. ft. (excluding concrete screed)

6 layers are laid on the roof, as follows: 0.5 mmthick layer of Dr. Fixit Extensa R is sprayed 40 mmthick layer of Dr. Fixit Foamshield is sprayed One coat of Dr Fixit Newcoat using roller Geotextile membrane of 150 gsm Layer of concrete screed

Stable voids for excellent heatinsulation The heat insulating membrane has air voids which don’t let the heat pass

Two coats of Dr. Fixit Newcoat/Dr FixitHeatshield 2

VividIndia

Topcoat

6 to 8 (inside the building)

Rs.4500 for a 20 litres bucket (covers 650 sq. ft. approx.)

4years

• Surface of the roof – The amount of heat conducted through the walls is dependent on their thickness and nature of the materials used in construction. Hence for concrete walls the natural heat insulation would be the maximum, for asbestos it would be a bit lesser and for corrugated GI sheet it would be the least.

• Air-conditioning – The airconditioning system inside the room would obviously affect the temperature inside.

• Wind conditions on the surface of the roof – The wind on the surface of the roof drives away the heat on the surface.

Heat proofing solutions are available in mainly three types – paint, tiles and mortar. Paints are also of two types: first, based on elastomeric coating which does not crack even under rapidly changing climatic conditions, unlike the traditional waterproofing layers which develop cracks easily, allowing water to seep in.

These elastomeric coatings have hollow microspheres which have encapsulated air which helps in heat insulation as it does not allow heat to pass through it and a little amount which does pass is at a slow speed and hence the effect is reduced till the time it reaches the

Cleaning Chem + 1 l. ‘tuffcrate’ + 4 kg. grey cement + 7 l. water ----- 2 coatings (for water proofing) Washing 1 l. paint + 0.6g water coating (for heat insulation)

1

After 6 hours 1 l. paint + 0.2g water coating

1

After 6 hours 1 l. paint + 0.2g water coating

1

3

Indian Cool Proof Insulation Heat Reflective and Paint Engineering

5 to 6 (inside the building)

3years

Rs. 20 per sq.ft.

2 coats of the heat reflective paint areapplied

4

Thermatek

12 to 20 (on the surface ofterrace)

No recoating required

Rs. 60 per sq.ft.

Heat resistant tiles are fixed with the help of heat resistant mortar on the terrace

Thermatek Cool 12 to 20 (on Mortar the surface ofterrace)

No recoating required

Rs. 120 per sq.ft.

Applied like any other mortar; works best when applied in combination with Thermatek Heat Resistant Terrace Tiles

Thermatek 17 (on the Colored Heat surface of Reflective Paint terrace)

3years

Rs. 6100 for Paint is applied on the surface 800-1000 sq. of the roof ft. (depending or walls using brush onthe surface)

Thermatek Heat Resistant Terrace Tiles

wall, resulting in cooler surfaces.

The second type of paint is based on a patented technology which reflects back up to 95% of the heat, once the infrared rays strike its surface.

These paints wear off like normal wall paints and need to be recoated after a period of 3-4 years and can be applied on exterior walls as well as all sorts of roofs, except for on smooth plaster, as it does not stay on it. The same can also be applied

on pre-fabricated structures and on water tanks to avoid the water from heating up. The tiles consist of three layers, the top layer reflects the infrared rays, the middle layer emits the heat absorbed and the bottom layer is of mortar, which does not let the heat pass through it. Mortar can be used separately as well, according to the requirement, but works best when applied in combination with the tiles.

With summers lasting for almost 9 months in all the apparel manufacturing hubs, direct savings range from 30% to 50% in the electricity bills while the indirect savings are numerous as companies can do away with the air-condition in some areas and scenarios. During winters, it works in the opposite manner…

TO ADVERTISE

GOING TO A GOODEVENT?

Contact Rani Mahendru +91-11-47390000 (512) rani@apparelresources.com

Send your industry gossip, photos and news to isaxena@apparelresources.com

Shop floor control in apparel production Shop floor control begins by understanding the reason for control. Two views of running a production floor are shared with biasness towards the Material Flow View. In this article, Anand Deshpande, Founder & CEO of Admaa Consulting, and a specialist in Lean and Six Sigma consulting in the apparel industry, automotive, financial services and education sector, identifies elements required to control the output from the shop floor and concludes by offering practical tips to extract maximum production potential from the shop floor.

hop floor is the place in the manufacturing industry where losses are accumulated or profits are made. It is the heart of any product organization, and thus should be the core competence of that organization.

S

Managing the shop floor has never been or ever will be an easy task. On a typical apparel shop floor, during the transformation of the raw material in the form of fabric to finished goods, i.e. apparels, we encounter issues like random disruptions, inventory pile-up, alterations, quality issues, missed shipments, heated arguments between various stakeholders and chaos.

Why is the apparel shop floor such a challenging workplace?

An apparel shop floor, in any part of the world, is characterized by two important elements – Variability and Dependency.

Variability is a change experienced over a period of time. Typically, the shop floor experiences variability in following ways: Material: A batch of fabric rolls (shell) from the supplier could have one roll that is defective, compelling inspection of input material. Most organizations deploy a sampling plan to inspect these rolls. Inspection does not add value per se but is required to ensure a smooth production flow.

It could also be that more rolls are defective and require re-ordering, thus causing delay in order execution.

Machine: It is a common sight to see a machine broken down early in the morning which requires repair or replacement after the shift commences.

Random disruptions like these reduce the first hour output.Gaining momentum after sudden break in production is always a challenge.

Men/People: A new operator or a less skilled operator introduces skill variability in the system. As apparel production is very labour-intensive, speed of the slowest operator defines the speed of the production line.

Assuming a less skilled operator is introduced in the collar section. He/ she will reduce the production speed by at least 20 per cent.

Method: A standard methoddeployed in operation ensures consistency in the cycle time for each cycle, thus resulting in constant output every hour. Any deviation from the standard method impacts quality of the output as well as the time taken to produce.

many times from the production floor about the style information missing from the tech pack. In such cases, the production floor makes some style changes that the customer does not really need.

On the other hand, dependency on the production floor impacts production performance in the following ways: People Dependency: Skills in a labour-intensive industry have a deep impact on productivity, quality and production volumes. Typically, apparel industries are located in the hinterland that does not have an adequate exposure to the industrialculture.

Absenteeism due to trivial reason is common. If an employee, skilled in operating the sleeve setting machine is absent, the line slows down. Moreover, if the same resource is required for two different operations, then it becomes a bottleneck.

Measurement: How many times have we observed two quality checkers differ on the quality characteristics of the same product? The answer is many times. Measurement variability is observed in measuring input material, semi-finished products and finished products.

Routing Sequence Dependency: The material flows from being raw material to a finished product with a defined routing sequence. Within cutting, the material flows from laying to cutting, then to numbering, fusing and finally bundling. The product routing sequence introduces dependency as pre-defined process steps that cannot be bypassed.

Information: Variability in information about the specification of the final product between a Merchandiser and Production Executive leads to variability in the understanding of the product attributes. Wehear so

Product Changeover Dependency: During the production line changeover from one product to another, we cannot produce the new product, unless the setup required for the newproduct is complete.

Local Dependency: Each geographical region has its own characteristics.

The political situation can always be unpredictable. Strikes, walkouts and general disruptions due to political situations are always on thecards.

Illustration A: Tools for smooth material flow on shop floor Changeover Management

Daily Accountability

WIPControl

Local weather, if inclement, can always cause absenteeism in large numbers, thereby affecting daily production.

The secret of productionmanagement lies in effectively combating dependency and variability. Generally speaking, the management strategies to address these variables usually deploy the ‘Resource Utilization View’ or ‘Material Flow View’.

Visual Management

Resource Utilizationbased Production Management Strategy

Skill Management

The Resource Utilization Viewstresses the maximum utilization of resources such as Man, Machine and Material.

The Plant Manager conforming to this strategy, views the plant as if it is a static unit where people andmachines are occupying a fixed space on the floor. The material moves as per the laid out operation number.

This view reinforcesthe following elements: • Resources are costly.

• To manage the cost of eachresource, efficiency should be increased.

• To assure increased efficiency, time must not be wasted by the resource.

• To ensure that resources do not waste time, metrics that measure resource utilization must be promoted.

Utilization of the resource with no corresponding requirement in demand can only lead to waste.

Material Flowbased Production Management Strategy The factory can also be managed by focusing on how the material flows from input process to the output process. The factory is viewed as if it is a unit engaged in transforming the material into the end-product by moving from one section to the other

Improving MaterialFlow

Performance Managemen t

without any stops or interruptions.

This view reinforces the following concepts: • Materials must flow from one process to the other without any stagnation.

• There are separate value streams for unique products, hence there are no product-intersecting flows.

Quality Improvement

Capacity Management

• Ensure availability of capacity to meet Service Level Agreement (SLA) and quality standards.

• Balance the workload with available capacity.

• Optimize capacity continually by eliminating non-core activities.

• Establish capacity benchmark for processes (current and transitions).

• Customer demand determines resources that need to be deployed.

•Facilitate process standardization.

• The metrics to manage production are lead time, WIP to Standard WIP (SWIP) ratio, First Time Through, etc.

usually following steps are taken:

Making the material flow swiftly must be the ultimate goal of the plant. The production environment is shaped along this principle by ensuring that material releases on time which improves process efficiency and output quality.

Tools for smooth material flow on shop floor To improve the material flow on the shop floor, the following initiatives can be embarked upon:

Capacity Management The purpose of Capacity Management is to:

To manage capacity on shop floor, • Mapping the process with the help of tools like Value Stream Map. • Defining Takt Time for the process.

• Tabulating process data like cycle time, machine downtime, error rate, and cost for each step of theprocess.

• Adding the work content for the entire process (sum the cycle times for each element of the process).

• Calculating the exact number of people and machines required for process.

Visual Management Visual Management is a practice involving the clear display of charts, lists and performance records, so that both, management and workers are continuously reminded of all the production elements that make Quality, Cost and Delivery (QCD) successful.

Shop floor is the place in the manufacturing industry where losses are accumulated or profits are made.

It is the heart of any product organization, and thus should be the core competence of that organization.

Managing the shop floor has never been or ever will be an easy task. On a typical apparel shop floor, during the transformation of the raw material in the form of fabric to finished goods, we encounter issues like random disruptions, inventory pile-up, alterations, quality issues, missed shipments…, etc.

Skills in a labour-intensive industry have a deep impact on productivity, quality and production volumes. Typically, apparel industries are located in the hinterland that does not have an adequate exposure to the industrial culture.

Absenteeism, due to trivial reasons, is common. If an employee skilled in operating the sleeve setting machine is absent, the line slows down.

Moreover, if the same resource is required for two different operations, then it becomes a bottleneck.

The purpose of Visual Management is to: • Make problems visible, i.e. detecting abnormalities so that employees can take corrective action.

• Stay in touch with reality as Visual Management is a method for determining whether everything is under control or not, and for sending a warning the moment an abnormality arises.

Illustration B: Sample material flow on apparel shop floor CuttingProcess BatchProduction

Parts Sewing Process Single PieceFlow

To manage the shop floor visually, following steps can be taken:

• Build standards for workplace by creating markings on the floor and visual dashboards.

• Warn about abnormalities by deploying visual indicators, buzzers, and on lights and visual displays.

• Stop and prevent abnormalities by deploying error detection and error prevention strategies.

Skill Management Skill Management is about the provisioning of skills for effective and efficient service delivery for a desired quality standard. Skill building relies on effective anticipation of skill requirement, knowledge of skill gaps and continuous upskilling.

The purpose of Skill Management isto: • Develop skills continually to deliver best value to the customer.

• Identify current skill deficit and anticipate future skill needs.

• Train and develop team members on current skill deficit.

Skills on the shop floor can be managed in following ways: • Prepare the skill matrix to identify skill deficit in the process/department.

• Address skill gaps by creating a ‘Training Needs Analysis’ document and customize training (create training calendar) to enhance skills.

• Monitor training of the individual.

• Review and update skill matrix at a defined frequency.

Performance Management Performance Management is a practice that measures organizational

We reinforce daily accountability on the shop floor by conducting problemsolving meetings between: • Team leader and production crew.

• Supervisors and team leaders.

•Setting targets for improvement.

• Embark upon workplace organization by deploying 5S initiative.

assignments made in response to yesterday’s problems.

Assembly Sewing Process Single PieceFlow Material Flow FinishingProcess Single PieceFlow

performance, identifies the root cause of variation in performance and addresses the gaps through Continuous Improvement.

The purpose of Performance Management is to: • Design Specific, Measurable, Attainable, Relevant, and Trackable (SMART) metrics to align objectives across all levels of the organization.

• Review metrics and identify gaps.

• Design corrective action plans to plug the gaps and improve performance.

• Drive improvements by taking up continuous improvement projects.

We could manage the performance on the shop floor in the following ways: • Review performance measures at a defined frequency.

• Conduct a gap analysis on performance.

• Implement corrective measures to plug the gaps.

• Plan-Do-Check-Act (PDCA) analysis on implemented measures.

• Value stream leader with supervisor and support group.

• Value stream leader with production manager and support group.

Generally, these meetings are focused on discussing the below agendas: • Assignments and special items for the day.

• Daily rotation and labour plans for the day.

• On designated days topics like 5S, Safety, Quality, Delivery, Cost, Morale and Environment (SQDCME) boards may receive special focus.

• Daily performance data added to trend charts on Safety, Quality, Delivery and Cost – along with any other important parameter.

Quality Management Quality Management ensures the best quality product to the client against a defined standard at the lowest cost.

The purpose of Quality Management is to: • Focus on quality at source.

• Rely less on inspections and more on defect detection and defect prevention.

• Error proofing a process step wherever possible, and eliminating opportunity for an error.

• Process Confirmation and Process Standardization to ensure consistent quality.

• Problem solving through Root Cause Analysis.

To manage quality following sequence of measures can be taken:

Daily Accountability

• Identify Critical to Satisfaction (CTS) characteristics from the voice of the customer.

The purpose of Daily Accountability is to:

• Filter the Critical to Quality (CTQ) characteristics from the CTS.

• Reinforce Lean Management’s focus on processes.

• Define a quality metric for theCTQs.

• Through meetings identify opportunities for improvement.

• Conduct a gap analysis on expected performance versus the actual.

• Ensure follow-up on task

• Conduct a Root Cause Analysis

to know reasons for customer dissatisfaction.

• Decide corrective and preventive actions for each root cause.

• Review quality metrics over a defined period of time.

Changeover Management Changeover Management ensures that time to successfully switchover from earlier product to next product is continually reduced.

The purpose of Changeover Management is to: • Reduce all non-value activities during the changover process.

• Set up all the machines to produce the next product.

• Giving a heads-up to the operators and making them ready to produce the next product.

• Reduce the changover time as organization matures.

To manage changeovers we could do the following: • Identify all the activites required for a changeover.

• Segregate activities into internal work (that requires machine to be stopped) and external work.

• Try to convert as muchinternal work into external work.

• Keep reducing time required to perform internal work.

WIP Control WIP Control ensures that WIP in the system at specific points is maintained to consistently achieve the bottleneck rate under current process cycle times.

The purpose of WIP Control is to restore buffers, keep buffers. It also facilitates the consistency of output through the bottleneck by not starving it.

To manage WIP,the following strategies can be adopted: • Maintaining SWIP at critical points along the production system.

• Not starving or blocking the bottleneck by keeping WIP before the bottleneck and space to offload output from the bottleneck to not block the bottleneck.

• Create a metric of WIP to SWIP ratio where SWIP is Standard WIP that is supposed to be maintained.

If the WIP to SWIP Ratio is greater

than 1.2, the WIP is likely to go out of control. If it is less than 0.8, the WIP is not enough.

Practical tips to manage material flow on apparel shop floor Let us assume that a jacket production line produces jackets at the rate of 480 pieces per day. As shown in Illustration B, the cutting section produces in batches while the sewing and finishing use single-piece flow system. The sewing process is divided into Parts Assembly and Final Assembly. The Parts Assembly produces collar, lining, front and back, and sleeve concurrently. In the Final Assembly, these parts are sewn together.

To enhance productivity, quality and production, following pointers should be focused upon:

Balance the line with respect to Takt Time: The Takt Time based on customer demand of 480 per day is 60 seconds.

Balance the line in such a way that each operator works to a cycle time of at least 50 seconds, if not less. Any operator who works with a cycle time of below 50 seconds, then he/she would tend to overproduce. Lower cycletimes, considerably lower than the Takt Time, tend to hide quality issues, niggling machine problems, etc. By loading the operator with work cycle time that is closer to Takt Time, we also expose waste in the productionsystem.

Parts section should be ahead of the assembly at all times The Supermarkets between parts sewing and final sewing assembly should maintain Standard WIP of at least 2 hours to enable assembly to be run at all times. In a situation where the parts section runs significantly ahead of the assembly, stop the line and multi-skill employees. Another way of utilizing excess resources is to clear the alterations in the line.

If the final assembly is running faster than the parts assembly line, slow down the assembly section to match the parts assembly line’s speed. The excess resources generated could be deployed to clear the rework and

Create a metric of WIP to SWIP ratio where SWIP is Standard WIP that is supposed to be maintained. If the WIP to SWIP ratio is greater than 1.2, the WIP is likely to go out of control. If it is less than 0.8, the WIP is not enough.

speed-up the parts assembly line.

Synchronize the production of parts by matching serial numbers As the concurrent output from parts sewing arrives at the pairing station before final assembly, invariably we discover a mismatch in serial numbers between various parts. Serial No. 111 for collar may arrive first as opposed to Serial No. 113 of front and back.

Ensure that the same serial numbers are produced concurrently to avoid mismatch of parts. One could use a strike-off sheet of serial numbers. The end line QC can strike off all the serial numbers that have been passed for every part. The serial numbers that have not been struck-off are the ones that need to be tracked on the line and expedited.

Avoid first hour production losses The first hour output almost always sets the pace for the day. If the first hour output is at least 80 per cent of desired output per hour, there is every chance of meeting the daily target. Therefore, to avoid first hour production losses, following steps should be taken: • Man the production line within 10 minutes of the start of the shift.

• Consider unplanned absenteeism and plan for it on the previous day with due diligence with the team leaders.

• Do not empty the last leg of assembly line on the previous day (the reason being that if the line is pulled through to improve production on previous day, there is a huge gap in morning that reduces first hour output to under 30 per cent of target).

• Maintenance personnel must be present in the line at the start of shift to immediately respond to breakdowns.

• The supervisor must observe critical to quality processes by confirming the process in the very first hour.

Keep production floor neat and clean at all times They say that a shop floor is a reflection of the management.

Escalation policy sets the guidelines for an issue to be escalated to the Plant Manager if its resolution does not happen in a certain time frame. The escalation policy creates a ‘Sense of Urgency’ on the production floor.

Workplace organization is the first element of production management that must get the utmost priority. To organize the workplace, ensure the following: • Devise hourly cleaning schedules across production lines.

• Ensure that teams keep workplace neat and clean before leaving for home.

• Embark upon a 5S journey and do not stop.

• Put 5S posters all over the jacket line to encourage cleanliness.

• Define Standard WIP across all sections of the production system and maintain the WIP.

Devise an escalation policy Escalation policy is a document that sets the guidelines for an issue to be escalated to the Plant Manager if its resolution does not happen in a certain time frame. The escalation policy creates a ‘Sense of Urgency’ on the production floor. For instance, the supervisor must escalate a machine breakdown to the plant manager if it is not resolved in 20 minutes.

Generate daily production reports for all sections Production reports are a reflection of the floor performance and so should they be. It is often observed that most plants are run with macro-level production reports devoid of any details about reasons for the production losses. The recommendation is to create production reports that highlight the following: • Reasons for the day’s losses (absenteeism, machine breakdown, etc.)

• Report production losses on an hourly basis.

• Supervisors must update production reports on an hourly basis.

• Production reports must reach the plant manager within 15 minutes of end of shift.

• Analyse reports to detect trends and areas for improvement on a monthly basis (let the respective supervisors do it for you).

• Embark on improving data analytics.

Review production on an hourly basis Most production plants conduct a sunrise or sunset meeting, which does not add much value. Instead conducting meetings on the floor on an hourly basis will yield better results. Hourly meetings help detect abnormalities and encourage a problem-solving culture. If there are no hourly meetings, vague reasons are put forth for production losses and we are clueless about the production rhythm for the day.

Recommendations on the process of conducting hourly meetings: • Create a visual centre displaying hourly production and top 10 issues in delivery and quality. The floor is expected to assemble at this centre every hour to discuss hourly production issues.

• Enforce the discipline of hourly reviews across all the departments.

• Identify bottleneck areas during hourly review and focus all your resources to bring the bottleneck areas up to speed with rest of the line.

• Seek agreement on next steps from supervisors during the review.

• Validate the production target per hour with the budgeted target per hour.

• Enforce the reporting of hourly production on an A3 paper than using the whiteboards.

Paper is ideally recording mechanism for future reference and validation.

Encourage a problemsolving culture by using 8D methodology to solve quality problems 8D is a problem-solving methodology deployed to address quality issues faced by automotive factories as reported from the field. It is a structured approach that involves the following activities: • Defining the problem.

• Identifying the interim

containment action to tide over the crisis.

• Determining the root cause.

• Deciding the permanent corrective action.

• Ensuring that the problem does recur.

The 8D approach could be used not only for problems that are reported by external customers, but also by problems or internal defects reported by internal customers. A problem like ‘loop slant’ or ‘lapel shape-out’ could easily be resolved using this structured approach.

Multi-skill employees on a daily basis In a labour-intensive industry such as the apparel industry, multiskilling must become a day-to-day production priority. It is observed that absenteeism is very high on the floor leading to skill deficit. This in turn puts the brakes on a smooth production flow.

There are two engagement areas for upskilling – Classroom Training and On-the-job Training. The employee on boarding must begin with skill development and due time must be allowed for the same.

We observe that to develop some proficiency in sewing at least 2-3 weeks are required. It makes sense to have a bench in place that is ready to be tapped at any time.

On-the-job training requires the employee to be skilled specifically for certain product styles. This also involves training the employee on at least four skills that are critical to the success of the output rate. Not only does it improve operator’s speed, but also helps counter unplanned absenteeism.

A technique the apparel industry can borrow from the automotive industry is to rotate the employee on four jobs in a day, i.e. two hours on every job.

In this way, within a month or so, the operator would get trained on four skills.

A tool known as the ‘Skill Matrix’ can be used to identify the existing skill gaps, draw up training plans and follow-up on upskilling progress.

A monthly review of the skill matrix is necessary to continue the skill development cycle.

Gear up to get involved with the myriad world of words of the apparel manufacturing trade and relish the joy of precision – there is only one right answer. So, brush up, revise and revive your technical and managerial acumen because the first correct entry wins an Apparel Resources pen drive and complimentary six months’ PDF subscription of Apparel Online Bangladesh (AOB) magazine, and a chance to write an article of choice (exclusively related to the garment industry) to be published in AOB.

TECHTEASE –I

LEAN MANAGEMENT The 1st TechTease highlights the principles and tools of Lean Management, a management and manufacturing philosophy derived from the Japanese Toyota Production System. Although focusing on reducing the Seven Wastes of transport, inventory, motion, waiting, over-processing, overproduction and defective production in performing any task, Lean has over the years evolved from an application point of view and hence has been sub-divided into various concepts, tools and approaches for achieving higher productivity and efficiency. This crossword, encrypted with 20 Lean jargons, presents an opportunity to sharpen ones’ knowledge of Lean Management... Handy to show-off among a group of industry experts!

1 2

3

4 5

7

6

8 9

10

11 12

13

14 15

16 17

CLUES Across 1. Japanese term for sorting and keeping just what is needed.

3. A communication tool used to identify items that a person has flagged for removal from a work area.

5. Refers to a quality level of 3.4 defects per million opportunities. It is a technique that focuses on improving processes by reducing variability.

10. One of the 7 Wastes that refers to the actions of people or machinery that do not add value to the product.

11. A shop floor, line-side location where parts are sorted and made ready for presentation to operators.

13. Process that authorises production as inventory is consumed. A classic example is Toyota Production System.

14. Any activity that adds to the cost of a product without adding to its value.

15. Japanese word for signal. It is used in a pull system to signal when production is to start, and can take a number of forms.

16. A continuous improvement vehicle for driving quick hit value by implementing ‘Do now’ solutions through waste elimination.

17. Anything that does not add value to the final product or service, in the eyes of the customer.

Down 1. The process that allows a person to reduce the time to change a production process over from making one part or product to process.

2. Uneven flow of parts; demand exceeds capacity.

4.

The actual facts or reliable and observed data required to understand what the actual problem is.

6. Japanese term for sustaining the 5S process.

7. A comprehensive program to maximize equipment availability in which production operators are trained to perform routine maintenance tasks on a regular basis, while technicians and engineers handle more specialized tasks.

8. The place where the product is actually transformed.

9. Defined as ‘giving the customer what they want, when they need it, with the required quality, whilst using the minimum amount of resources (labour, space, equipment and WIP, i.e. lowest cost)’.

11. A set of fixed instructions or steps for carrying out a process.

12. A visual picture of how material and information flows from suppliers, through manufacturing, to the customer. It includes calculations of total cycle time and value-added time.

13. Japanese term meaning fool proofing. Ideally, this is an engineered method or solution which makes it very difficult or impossible to produce a defective part.

[We also welcome suggestions from our readers for topics on which they would like to see crosswords in the future editions.]

The solutions to the TechTease – I will be published in AOBOctober 2016 issue. Readers can mail the images of the completed crosswords to editor@apparelresources.com by September 20, 2016.

Apparel imports by EU in first four months see growth in both value and volume

January – April 2016 The EU seems to be little on the satisfactory track as in the first four months of the year its apparel imports have increased by 2.11% in quantity and 1.71% in value. Although these four months were not enthusiastic for India, the country registered fall in overall apparel export to EU by (-) 0.38% in quantity and (-) 0.42% in value. India’s export of woven-based garments was down (-) 3.17% in quantity but up by 0.50% in value.

While knitted-based apparels was up by 1.80% in quantity, it was down by (-) 1.47% in value.

2.11%

Average UVR

VolumeIncrease

20 (Euro per kg of fabric equivalent)

Global Apparel Imports by the European Union during Jan. – April 2016

18.44

15

Percentage decrease in UVR

10

0.37%

0

2015

2016

Year

Value Increase

1.71%

18.37

Apparel imports of the EU: selected countries Country/ Category

Jan.-April 2015 Qty

Value

Jan.-April 2016 Qty

% Increase/Decrease

Value

Qty

Value

WORLD

Change in Knitted Quantity

3.24%

Knitted

766.75

12437.35

791.63

12575.55

3.24

1.11

Woven

654.79

13781.56

659.92

14091.84

0.78

2.25

1421.54

26218.92

1451.55

26667.39

2.11

1.71

Knitted

252.18

3967.23

233.07

3559.77

-7.58

-10.27

Woven

261.12

5079.21

240.45

4648.28

-7.92

-8.48

Total

513.30

9046.43

473.51

8208.04

-7.75

-9.27 -1.47

Total CHINA

INDIA

Value

1.11% Change in Woven Quantity

0.78% Value

2.25% [The information has been extracted from EU custom site and further analyzed.]

Knitted

54.76

964.86

55.74

950.63

1.80

Woven

42.84

1097.23

41.48

1102.72

-3.17

0.50

Total

97.60

2062.09

97.23

2053.36

-0.38

-0.42

Knitted

209.28

2643.23

228.73

2823.43

9.30

6.82

Woven

133.26

2138.04

144.51

2399.24

8.45

12.22

Total

342.54

4781.27

373.24

5222.67

8.96

9.23

Knitted

17.78

312.56

22.34

313.86

25.62

0.42

Woven

10.55

248.46

9.35

225.90

-11.35

-9.08

Total

28.33

561.02

31.69

539.76

11.85

-3.79

Knitted

27.93

294.98

31.27

336.85

11.98

14.20

Woven

31.94

467.29

33.59

485.99

5.17

4.00

Total

59.87

762.26

64.87

822.83

8.34

7.95

Knitted

11.80

230.36

12.46

274.86

5.62

19.32

Woven

26.92

610.96

28.39

670.64

5.44

9.77

Total

38.72

841.31

40.85

945.50

5.49

12.38

BANGLADESH

SRI LANKA

PAKISTAN

VIETNAM

Qty. & Value in mn Kg & Euro

2 4 6

Ladies skirts record

1 3 5

Importof ladies blouses registers substantial growth

maximum negative impact for India

In the review period, EU import of ladies blouses increased 8.98% in volumes; values also grew by 7.40%. For India, the segment also registered growth of 7.48% in volumes and 4.12% in values.

Ladies skirts can be said to be the most hit product category for India as quantities in this category were down (-) 34.75%, while values dropped (-) 17.41%.

Even Bangladesh also noticed decline in the products’ exports to the EU. Only Vietnam noticed growth in terms of volume as well as quantity in this segment.

Bangladesh sees good growth in suits/ensembles

Sweaters register growth in exports from Bangladesh andVietnam

For Bangladesh, substantial growth continues in suits/ ensembles category with increase in both quantities by 22.63% and values 23.49%; despite that EU’s import of the same was down by (-) 13.24% in quantity terms.

While exports in sweaters by Bangladesh were up 17.61% in volume, it increased 18.85% in value terms. Vietnam too noticed increase in quantity of sweater export to the EU of 40.91% in volume and 31.71% in value.

Babies wear,a growth category for India, but not for Bangladesh

Maximumgrowth in undergarments forVietnam and Bangladesh

India registered growth in babies wear export to the EU of 17.12% in quantity and 14.57% in value. Bangladesh noticed fall of (-) 1.45% in volume in the export of same product to the EU while value grew by 9.98%. Vietnam lost volume wise (-) 11.73% in babies wear but there was growth in its value by 6.91%. Even China lost both in volume as well as value in this category.

Vietnam has registered a whopping 95.24% increase in volume and 59.27% in value of exports in undergarments to the EU in the first four months of the year. Bangladesh also registered stupendous growth in the category with volume increasing 49.72% while value saw growth of 41.02%.

Item wise percentage increase in total apparel imports by EU from India, Bangladesh and Vietnam: Jan.-April 2016 as against Jan.-April 2015 Exports to EU

Total Imports by EU APPAREL TYPE

Qty % Change

Value % Change

Qty Actual

India Value Qty % Actual Change

Value % Change

Qty Actual

Bangladesh Value Qty % Actual Change

Value % Change

Qty Actual

Vietnam Value Qty % Actual Change

Value % Change

Babies Wear

0.73

3.79

6.72

219.22

17.12

14.57

10.31

186.01

-1.45

9.98

0.22

6.55

-11.73

6.91

Foundation Garments

3.99

1.21

0.11

6.14

11.76

2.18

2.16

71.31

39.45

25.22

0.52

29.01

23.08

44.26

Jackets & Blazers

4.98

7.68

1.02

26.22

27.62

17.75

4.13

70.12

35.51

41.05

3.77

83.88

-0.21

9.18

Ladies Blouses

8.98

7.40

9.37

297.56

7.48

4.12

5.71

127.29

32.88

25.30

1.88

37.27

2.10

3.65

Ladies Dresses

5.68

2.84

9.73

265.99

-4.93

-3.75

7.81

118.76

24.86

28.39

1.78

40.85

15.81

21.73

-4.91

-1.31

1.54

38.68

-34.75

-17.41

2.83

43.66

-17.82

-3.19

0.46

10.32

8.82

17.95

8.79

7.34

0.69

9.01

29.08

36.98

6.39

23.76

23.98

1.85

42.77

25.98

Men's Shirts

-3.47

-3.73

9.45

216.17

-9.15

-4.86

42.58

650.33

4.41

3.96

3.74

96.26

-10.37

-5.17

Nightwear

2.66

-1.46

8.32

103.54

1.97

-2.00

7.38

81.52

21.70

23.54

0.69

7.58

-28.45

-3.05

Ladies Skirts Legwear

Suits/Ensembles

0.60

0.11

-13.24

-4.23

0.64

13.09

-4.99

2.48

0.93

12.75

22.63

23.49

0.20

3.78

3.73

41.52

Sweaters

2.86

1.46

3.31

63.48

-12.82

-10.76

31.80

470.48

17.61

18.85

1.93

37.89

40.91

31.71

Trousers

1.47

1.89

2.92

124.15

1775.01

9.64

10.10

12.68

246.24

5.55

8.35

T-Shirts

-0.63

-1.34

18.69

325.67

-0.89

-3.23

108.17

1198.25

2.14

-1.60

2.56

56.22

0.05

23.68

8.26

3.12

3.05

50.35

1.08

-2.32

7.61

127.13

49.72

41.02

0.67

18.45

95.24

59.27

Undergarments

15.36

271.06

-0.77

Value in mn Euro and qty. in mn kg

Canadian consumers, who only add to the potential of the Americas and the growth opportunity it offers.

Lucrative Latin American market

‘The Americas’ Opportunities Galore in Retail LATIN AMERICA SHOWS STRONG SIGNS O F GROWTH During the currently prevailing scenario of global uncertainties, brands and retailers alike are looking for moving markets to capture growth opportunities, amongst which many are revisiting the US and also looking at the growth potential of Latin American markets. After almost a decade of inactivity and slowdown, the US is now perceived as a growth market which has been confirmed by a recent study of McKinsey & Co. – ‘Key Growth Drivers of British Luxury’– which reveals that 75 per cent of luxury company respondents identified the US as a future growth market, while 79 per cent believed it to be the current growth market.

any global events in the past year have attracted the attention of retail experts towards the Americas as a safer bet, especially for ‘luxury’. With the European market being clouded by Brexit and instability in the Middle East growing, the continuous slowdown in the Chinese market and the tepid performance of the Asian market, the ‘Americas’ seem to be the only region where some resemblance of growth is being registered.

Latin America is being seen as an opportunity, with markets such as Colombia and Mexico showing strong potential; and though the Brazilian economy is still risky, nevertheless its wealth and scale make it a market worth exploring. Also, luxury players can no longer ignore the smaller South American markets or the

M

Latin America is amongst the emerging markets for luxury brands with a few but relatively untapped potential pockets across the region in regard to economic stability, market accessibility and a significant concentration of wealthy consumers.

Currently, Mexico is amongst the top fashion markets in Latin America with the second largest economy and the second highest number of millionaires and billionaires. It is favoured due to its close proximity to the US and a relatively open market.

On the other hand, Mexico’s growing middle-class, strengthening economy, and consumer desire for upscale products and experiences, make for a strong opportunity for luxury brands.

Over the years, Mexico has witnessed the presence of luxury brands such as Gucci, Chanel, Burberry, Marc Jacobs, Theory, Emporio Armani, Coach, etc. with room for more in the pipeline. The Mexican market has always played second fiddle to the Brazilian market for quite some time, but due to political and economic volatility in Brazil, the position is soon expected to be taken by Mexico.

Nonetheless, Brazil still remains a lucrative market for luxury retailers due to the tourist influx and Brazilians’ love for fashion.

Brazil offers long-term potential to some brands given its size and the large number of wealthy people (the country accounts for more than 50 per cent of the total of South America’s high net worth individuals) as well as the fast growing urban centres beyond Sao Paulo and Rio de Janeiro. According to experts, Brazil is still not a mature market and there is a lot of opportunity for growth which is primarily the reason why Louis Vuitton’s Cruise 2017 runway show happened in Brazil, and Hermès which is sponsoring the country’s show jumping team during the Olympics. The brand is opening a second store there, its first in Rio, this summer.

Apart from Mexico and Brazil, the recent political changes have brought optimism in unstable markets such

as Argentina as well as Colombia, which after years of being defined by violence and corruption is now an increasingly open and stable economy, growing at more than 3 per cent per year. Over the last 10 years, Colombians have been one of the top three shoppers from Latin America in the US and are gaining recognition as sophisticated and savvy luxury consumers.

Economic Stability and Growth The US continues to be the world’s largest economy with a stable annual GDP growth of approximately 2 per cent, as the luxury market in New York alone accounts for US $ 25.5 billion, estimated to be more than the whole of Japan and Los Angeles at US $ 6 billion is double the size of the Russian market. Though various luxury brands have penetrated deeply in the region but there are untapped opportunities in markets around the country where the retail footprints

are nascent and much lighter. The overall economic picture of the America looks stronger, but it is still a luxury market segment that is rapidly evolving. Currently, the private consumption growth in the US is growing reasonably at 2 to 3 per cent that would inch closer to 4 per cent next year due to unemployment being as low as 4.9 per cent.

Furthermore, the real wage growth and disposable incomes both are increasing as the household debt has dropped to 10.1 per cent and US household net worth has increased from US $ 30 trillion in 2008 to US $ 88 trillion today. In terms of wealth creation, the US now has 14 million affluent households, earning more than US $ 1,50,000 annually with a mean income of approximately US $ 3,00,000 and assets of about US $ 3 million.

According to the ‘Affluent Perspective Global Study’, there is a forecast of 0.9 per cent reduction in luxury spending in 2016 among all affluent groups, except in two American

Latin America is amongst the emerging markets for luxury brands with a few but relatively untapped potential pockets across the region in regard to economic stability, market accessibility and a significant concentration of wealthy consumers.

Currently, Mexico is amongst the top fashion markets in Latin America with the second largest economy...

millennials and America’s 4,00,000 wealthiest households, whose spending is expected to increase by 8 per cent to 10 per cent, respectively. A significant shift in consumer attitude and behaviour is being witnessed as new hubs for luxury are coming up; the concept of the American department store is evolving and gaining strength; luxury brands are building profile and scaling geographically, and the retailers are feeling the need to focus on emotional marketing strategy to garner consumer loyalty.

The Americas – The land of opportunity A stable and stronger economy as opposed to the rest of the world is resulting in retailers exploring the untapped potential of the Americas, which is motivating brands to re-strategize their operations and marketing tactics to find favour amongst the American consumers that are continuously growing stronger.

It’s that time of the year when we decide what the menswear market will be like brimming with in the coming seasons. The most directional fashion collections in the world this year ushered in a new set of style directives for next year’s menswear.

Both traditional and contemporary labels displayed collections heavily influenced by 1990s punk fashion, with strong sub-trends centred on the relaxed sleepwear and on-the-go explorer, while following on from S/S ’16 – all-white looks, neutrals and an abundance of bold silhouettes and stripes – continued to make a strong statement. After reviewing all the shows and collections, we’ve highlighted the five strongest trends for Spring/Summer 2017…

Menswear Trends S/S ’17

Moving ahead this year with a relaxed and punk route

From shades of brown and grey to ivory and white, many Spring/Summer 2017 collections presented monochromatic looks that felt fresh, polished and effortlessly, good. Jil Sander used knit cardigans with straight-fit trousers for most of the looks, Trussardi’s style was a little more high style with the addition of flared pants, neck scarves and duster coats, Canali kept it simple with jackets and regular fitpants and Neil Barrett opted for brown separates that showed head-to-toe looks in neutral colour schemes.

Neutrals

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1 2 3 4

Canali Trussardi NeilBarrett JilSander

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The new relaxed attire includes oversized kimonos, robes, and silk sets appearing on many runways, it's all about pyjama dressing, this season.

Dolce & Gabbana presented a maxi polkadot muumuu, which is a loose Hawaiian dress with matching pants as a potential new street wear look that came with headphones and sneakers.

Fendi took a different route to the trend by aiming for the bathrobe, made of terry cloth and with floral patchwork on it. Trussardi’s pyjama look was luxe, which was crafted, in shiny satin with a light jacket over the top.

Pyjama Dressing

1 1 2

Dolce &Gabbana

2

Dolce &Gabbana

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4

3 Fendi 4 Trussardi

Exploration and adventure was a key theme in Milan and Paris, this time around. There were African safari prints at Louis Vuitton which included sandals for footwear and printed backpacks that adhered to the theme; Prada was all about the backpacker that literally packs it all, with windcheaters, track pants, high-collared jackets and socks with sandals. The collision of cultures was also clear from the patterns represented by Gucci that appeared a bit chinoiserie, borrowed from the East and combined with styling from the West.

Explorer

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3

1 2 3 4

Prada Prada Gucci LouisVuitton

4

Continuing to be a strong trend through to summer next year, denim made many appearances in different guises across the fashion capitals. Christopher Shannonshowed multiple looks featuring denim jackets and jeans in Texas Tuxedo styles but heavily distressed or patchworked, while at E. Tautz wide-legged denim jeans were matched with contemporary tailoring. Besides customization, size was also played around with; it was MAN that decided to introduce oversized denim to their looks that put the jeans in focus and everything else in the background.

Bold Denim

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Punk

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ChristopherShannon E.Tautz MAN ChristopherShannon

The classic punk style has been lurking in and out of recent collections, especially in London.

Dior Homme took on Kings Road punk in full swing, adopting cutoff sleeve shirts, studs, badges, patches and checks with an unshakable attitude. Big, bold text statements and repetitive logos were seen at Comme des Garçons with transparent pieces embodying bold text that read ‘Shout Out Aloud’ and ‘It’s My Fashion’.

Elsewhere, Kenzo used ‘100% energy’ and ‘Brilliant’ motifs on hoodies and T-shirts, and Ann Demeulemeester’s sheer vests read, “I am red with love”.

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DiorHomme AnnDemeulemeester Commedes Garçons Kenzo

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Vi c u n h a f o r e c a s t s S/S 2018 t r e n d s Brazilian denim fabric producer Vicunha Textil has forecast some trends for Spring/Summer 2018 season. These trends have been announced using their product line manufactured from 100 per cent BCI cotton and the Dryyarn technology.

Vicunha’s shirting range for the new Spring/Summer 2018 is in line with the market demand for looser fit silhouettes with drape.

The current trend for retro-modern patterns is reinterpreted in fabrics with patchwork effects in multitones and textures with irregular slubs in the warp and weft that emphasize the characteristics of the fabrics. Texture features strongly in the collection with fresh small dobby’s and herringbones,

company will satisfy even the most ‘discerning’ customers.

In the wide-width fabric range, Vicunha vintage-look denims offers cost-efficient and versatile options with fabrics providing higher yield per metre, enabling manufacturers to cut down on amount required per garment.

which when coated further emphasizes the structure in wash.

In the premium denim range, Vicunha’s focus is on highperformance denims with perfect

recovery. These are in fresh summer blues perfect for the new season. Soft and with luxurious hand-feel, the competitively priced fabrics, according to the

Known for its sustainable approach to denim production, Vicunha’s fabric range also includes a series of styles made using three recycled PET bottles per metre, which requires around 80% less water. Launched this season, the Eco Recycle range of fabrics incorporate waste yarns recycled to come up with new offerings.

Foreign envoys ur ge Bangladesh t o speed-up t r a d e union r e g i s t r a t i o n w o r k Five foreign diplomats – from EU, USA, UK, Canada and Netherlands, reportedly called upon the Bangladesh Government to accelerate the pace of trade union registration work in the readymade garment sector and lower instances of rejection of applications for trade union formations. At a meeting with senior officials of Commerce, Labour and Foreign Ministries in Dhaka recently, the envoys of the

Dutch Ambassador Leoni Margaretha Cuelenaere

respective countries reportedly expressed their dissatisfaction over the alleged slow pace of formation of participation and safety committees in the RMG factories.

The meeting was also attended by Country Director of International Labour Organisation Srinivas Reddy, Bangladesh Commerce Secretary Hedayetullah Al

USAmbassador Marcia Stephens BloomBernicat

Mamoon, Labour Secretary Mikail Shipar, and Foreign Secretary Shahidul Haque. According to media reports, the diplomats maintained that the rate of trade union registration in the RMG sector was far lower than the number of factories in the sector while, the number of rejection of applications for registration remained high. They also expressed concern over the delay

Head of EUdelegation to Bangladesh PierreMayaudon

in implementing corrective action plans in the RMG factories which have been inspected under a Government-ILO joint initiative.

The envoys also pressed the Government to form a remediation coordination cell so that the cell can bear the responsibility for ensuring factory safety once the timeframe of two platforms of global buyers ends.

UKHigh Commissioner Allison Blake

Canadian High Commissioner Benoit-Pierre Laramee