Despite global economic slowdown, Bangladesh entrepreneurs set up 134 new RMG factories in 2023 to tap the industry’s growing potential. A large number of these factories are likely to commence production this year. They have been mostly set up by new entrepreneurs though a few have also being developed by large players who joined the race to expand their business.
The shifting of sourcing by global buyers from China to other countries is creating huge opportunities for Bangladesh apparel markers, says Faruque Hassan, President, BGMEA.
In 2023, companies like Badsha Group of Industries, Pacific Jeans Group, Ha-Meem Group, Sadma Group, and Beximco diversified their business to garment manufacturing to meet the rising export demand.
Badsha Group invested Tk800 crore in its Pioneer Denim facility at Madhabpur, Habiganj, to set up a state-of-the-art unit with a target of $700 million export earning a year. The project involves construction of two seven-floor production units, two sheds for storage facilities and three sheds for dyeing and washing plants. The factory will export denim garments worth $700 million a year by 2028 besides creating employment opportunities for 15,000 people, notes Badsha Mia, Founder.
Bangladesh’s largest investor in Chattogram EPZ, Pacific Jeans is also developing a factory in the EPZ with an investment of $31.75 million in Pacific Attires.
The factory will produce high-value formalwear such as suits, blazers, jackets, coats, pants, and casualwear, affirms Syed Mohammad Tanvir, Managing Director, Pacific Jeans Group. It will also create job opportunities for 9,000 people besides boosting exports by $250 million, he adds.
One of Bangladesh’s leading garment exporters, Ha-Meem Group is developing an outerwear factory with 16 production units. .
AK Azad, Managing Director, says, the group shifted from garment capacity expansion to diversification to ensure the group’s business’ sustainability in future.
Despite a slow demand the RMG industry is on well on its path to meet the $100 billion export target by 2030, adds Hassan.
