ASSIGNMENT

OF
THE GIVEN PROBLEM (BANGLADESHI APPAREL INDUSTRY’S PERFORMANCE:
TRADE POTTENTIAL & GROWTH OPPORTUNITY )

SUBMITTED TO:
DR. SHAFIUL ISLAM
COURSE TEACHER
FIBRE AND YARN STUDIES (ATM- 502)

SUBMITTED BY:
MOHAMMAD MAKBUL HOSSAIN (RANA)
GROUP LEADER (S-P, GROUP)
MBA PROGRAM
FALL-2005 SEMESTER
PRIMEASIA UNIVERSITY

SUBMITTED DATE:
20/01/2006

S-P Group 1
 Case Study: Bangladeshi Apparel Industry’s
Performances: Trade Potential and growth
opportunity
OVERVIEW:
• Export import Trade Balances
• Bilateral Trade Scenario
• Global Labor Costs
• Analyze ans summarize trade data
• Use metric units and US $
• Top 5 trading Partner (export & import)
• Mention Currency conversion date and factor
• Segments Major Items
• Out line our idea
• Visualize our presentation
• Trade balance= Total Export – Total import
• Trade Surplus
• Trade Deficit
S-P Group 2
MBA Program Batch -052
 S. No. Name ID No Phone E-mail

01 Md. Delware Masud 052-004-067 076978903

02 Md. Abdul Matin 052-005-067 0172651084
03 Md. Tasriful Islam 052-007-067 0177438069
04 Md. Mahbubul Alam Mahedi 052-009-067 0191351564 Mehedi@craftex-
bd.com
05 Md. Anisur Rahman 052-017-067 0189150213
06 Mohammad Makbul 052-019- 011042799 Mdmakbul@yahoo.co
m
Hossain (Rana) 067
07 Md. Omar faruq 052-022-067 011106764
08 Md. Abdul Bari Rabin 052-024-067 0173036389
09 Md. Fokan Ahmed 052-025-067 0175011036 Forkan@beximtex.com
10 Mrs. Jahan Akter Seem 052-029-067 0176350812

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 MEMORANDUM
Date: 07/01/2006

To
The course teacher
Fiber and yarn Studies (ATM- 502)
PAU

From
Mohammad Makbul Hossain (rana)
Group Leader (S-P Grp)
School of Business, PAU
Sub: Case Study for Bangladeshi Apparel Industries Performance: Trade Potential & Growth
Opportunity.

Dear Sir
In response to your kind notice that we are very much interested to prepare a technical
report on Bangladeshi Apparel Industries Performance: Potential & Growth Opportunity.
for it’s export import & trade Balance with various scenario. I have enclosed some slides that will
help to know the informatuon.

You’re faithfully

(M.H. Rana)
S-P Group 4
 CERTIFICATE OF APPROVAL

I have the pleasure to approve the Project Titled " Case Study for Bangladeshi Apparel
Industries Performance: Trade Potential & Growth Opportunity” Group S-P, Batch N0. 052
Semester: Fall-2005 to be presented to the School of Business, Prime Asia University, Banani, Dhaka
in partial fulfillment of the requirement for the Masters of Business Administration Program.

Supervisor

(Dr. Shafiul Islam CTEXT, FTI)

Dated: January 07, 2006 School of Business , Primeasia university
Banani, Dhaka.

S-P Group 5
• INTRODUCTION:

• What is textile?
• Originally: A woven fabric: now applied to any one of the following
• Staple fibers and filaments suitable for conversion to or use as yarns, or for
the preparation of woven, knit or non woven fabrics
• Yarns made from natural or manufactured fibers
• Fabrics and other manufactured product made from fibers as defined
above and from yarns
• Garments and others articles from fibers, yarns or fabrics when th
products retain the characteristic flexibility and drape of the original
fabric's
•

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Source: Textile Dictionary S-P Group 7
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 PROCESS FLOWCHART OF COTTON YARN (CARDED)
PTML (PLANT-1)
MIXING

BLOW ROOM

CARDING

DRAWING (1st PASSAGE)

DRAWING (FINAL PASSAGE)

SIMPLEX

RING

FINISHING/WINDING

PACKING

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 The currency relation Different type shown in the block – Diagram.

Source: Daily Ittefaq on • All Units are Metric Systems

02/01/2006

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Global Spinning & Weaving Labor Cost
Comparison US$/Operator hour –2002
NAFIA South America Asia European union Mid East Africa

Mexico 2.3 Paro 1.63 Banglade 0.25 Portugal 4.78 Ethiopia 0.62
sh
Canada 13.59 Argenti 1.7 Pakistan 0.34 Graces 7.56 Kenya 0.62
na
USA 15.13 Colomb 1.82 Sri 0.4 Spain 9.52 Egypt 1.01
ia Lanka
Venezuel 1.34 Brazil 2.5 China 0.41 Turkey 2.13 Tunisia 1.77
a
Indonesi 0.5 Italy/UK 13.93
a
Source:
Direct : 0.70Textile
Million ;Journal, Canada
About 70% Page-
of them are WomenDate:
Indirect: 0.40 Million
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 QUANTITY AND VALUE OF TOTAL APPAREL EXPORT

TOTAL APPAREL EXPORT IN MN.US$ TOTAL APPAREL EXPORT IN MN.DZ

YEAR
WOVEN KNIT TOTAL WOVEN KNIT TOTAL

1992-93 1240.48 204.54 1445.02 36.05 10.66 46.71

1993-94 1291.65 264.14 1555.79 34.35 10.81 45.16

1994-95 1835.09 393.26 2228.35 47.21 15.30 62.51

1995-96 1948.81 598.32 2547.13 48.82 23.18 72.00

1996-97 2237.95 763.30 3001.25 53.45 27.54 80.99

1997-98 2844.43 937.51 3781.94 65.59 32.60 98.19

1998-99 2984.96 1035.02 4019.98 64.79 36.66 101.45

1999-2000 3081.19 1268.22 4349.41 66.63 45.27 111.90

2000-2001 3364.32 1495.51 4859.83 71.48 52.54 124.02

2001-2002 3124.82 1458.93 4583.75 77.05 63.39 140.44

2002-2003 3258.27 1653.82 4912.09 82.83 69.18 152.01

2003-2004 3538.07 2148.02 5686.09 90.48 91.60 182.08

2004-2005 3598.20 2819.47 6417.67 92.26 120.13 212.39

2005-2006 (July-
701.53 662.63 1364.16 18.46 28.81 47.27
August)
Source: www.BKMEA.COM date: 08/12/2005
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 YEAR SHIRTS TROUSERS JACKETS T-SHIRT SWEATER
1993-94 805.34 80.56 126.85 225.90 ….
1994-95 791.20 101.23 146.83 232.24 ….
1995-96 807.66 112.02 171.73 366.36 70.41
1996-97 759.57 230.98 309.21 391.21 196.60
1997-98 961.13 333.28 467.19 388.50 296.29
1998-99 1043.11 394.85 393.44 471.88 271.70
1999-2000 1021.17 484.06 439.77 563.58 325.07
2000-2001 1073.59 656.33 573.74 597.42 476.87
2001-2002 871.21 636.61 412.34 546.28 517.83
2002-2003 1019.87 643.66 464.51 642.62 578.37
2003-2004 1116.57 1334.85 364.77 1062.10 616.31
2004-2005 1053.34 1667.72 430.28 1349.71 893.12
2005-2006
199.96 304.22 117.14 199.90 299.94
(July-August)
Source: www.BKMEA.COM date: 08/12/2005
S-P Group 12
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Source: www.BKMEA.COM date: 08/12/2005
S-P Group 13
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 WOVEN KNIT TOTAL

Export
July - June July - June % incr./de July - June July - June Export July - June July - June Export
2003-04 2004-05 cr. 2003-04 2004-05 % incr./decr. 2003-04 2004-05 % incr./decr.

Belgium 82.759 67.532 -18.399 106.456 132.839 24.783 189.215 200.371 5.896

France 218.997 211.985 -3.202 292.711 373.285 27.527 511.708 585.270 14.376

Germany 686.028 620.548 -9.545 544.433 668.818 22.847 1230.461 1289.366 4.787

Italy 114.542 113.838 -0.615 136.222 184.929 35.756 250.764 298.767 19.143

Netherlands 146.179 117.494 -19.623 121.516 142.664 17.403 267.695 260.158 -2.816

Spain 106.282 99.579 -6.307 136.125 208.220 52.962 242.407 307.799 26.976

Sweden 63.126 49.964 -20.850 55.917 62.408 11.608 119.043 112.372 -5.604

U.K. 382.370 357.881 -6.405 289.717 330.081 13.932 672.087 687.962 2.362

Total EU 1877.544 1707.558 -9.054 1786.883 2238.095 25.251 3664.427 3945.653 7.674

% of EU 53.067 47.456 83.187 79.380 64.445 61.481

Canada 185.737 189.195 1.862 70.663 118.746 68.046 256.400 307.941 20.102

% of Canada 5.250 5.258 3.290 4.212 4.509 4.798

USA 1391.795 1623.407 16.641 236.793 402.684 70.057 1628.588 2026.091 24.408

% of USA 39.338 45.117 11.024 14.282 28.642 31.570

Japan 15.997 12.567 -21.442 3.789 3.735 -1.425 19.786 16.302 -17.608

% of Japan 0.452 0.349 0.176 0.132 0.348 0.254

Australia 2.467 3.272 32.631 1.272 4.027 216.588 3.739 7.299 95.213

% of Australia 0.070 0.091 0.059 0.143 0.066 0.114

Source: www.BKMEA.COM date: 08/12/2005

GRAND TOTAL 3538.066 3598.205 1.700 2148.022 2819.472 31.259 5686.088 6417.677 12.866

S-P Group 14
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 Source: www.BKMEA.COM date: 08/12/2005
S-P Group 15
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 History of Development of Knitwear of Bangladesh

The RMG business started in Bangladesh in the 70s but it was then merely a casual effort. The first consignment of knitwear export was made in 1973 and the first consignment of woven
garments was made in 1977. Though started later, but it was the woven sector that first dint a spot in the export pie of Bangladesh. In 1981-82 the contribution of woven garments in the
total export was 1.10%. Afterwards it is a story of sustained success for the Bangladesh RMG sector. Within a decade the contribution of woven to the export basket became 42.83% (1990-
91) and the knitwear sector's contribution was 7.64% (1990-91).

Changes in combination of Export Products over time

Source: www.jetro.com date: 08/12/2005

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 Bilateral Textile and Apparel Trade Scenario 2002-
2003
Items CANADA USA

2002 2003 +/- % 2002 2003 +/- %

Textile Exports 2.2 2.3 2% 10.2 10.5 1%
Apparel Exports 2 1.9 1% 5.6 5.1 -7%
Textile And Apparel Exports 4.2 4.2 1% 15.9 15.6 -2%

Textile Imports 4 4.1 2% 16.1 17 6%

Apparel Imports 3.9 4.4 12% 63.8 68.7 8%
Textile And Apparel Imports 7.9 8.5 7% 79.9 85.7 7%

Textile Trade Deficit 1.8 1.8 2% 5.8 6.6 14%

Apparel Trade Deficit 1.9 2.4 26% 58.3 63.6 9%
Textile And Apparel Trade 3.7 4.2 14% 64.2 70.2 9%
Deficit

Source: Textile Journal, Canada, Page:---- Date-------

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 Trade Balance With Bangladesh

Source: www.Jetro.com date: 08/12/2005

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 Growth of Textile and Apparel Industries in Bangladesh
Particulars 1994 2004
Spinning Mills No. of Spindles for yarn 1.40 Million 4.20 Million

Rotor unit for yarn 3000 no. 36600 no.

Looms for fabrics 100 no. 6880 no.

Export Oriented Garments 1537 no. 3800 no.

Yarn / Spindles (8hrs or Shift) 2.5 gm 6.25 gm
Yarn recovery 82.00% 88.00%
Lead times developments (Garments) 16 Weeks 6 weeks

Incomes from exports of woven Garments 1240 Mil. USD 3538 Mil. USD

Incomes from exports of knit Garments 204 Mil. USD 2148 Mil. USD
Retention 0 1200 Mil. USD

ITET Bulletin Date: 10/10/2005,Dhaka

S-P Group 19
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 Growth of T & A in Bangladesh

100000

10000

1000 Garments
Value Looms
100 Spinning
Income from woven RMG
10 Income from Knit RMG

1
1994 2004
Year

Source:Own Analysis
S-P Group 20
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 Top 5 trading Partner (export)
Total Exports USD 2819.47 Million (2nd Largest)

#USA USD 402.38

# EU USD 2227.27
# Canada USD 118.38
#Others USD 71.4
Share in Exports 38.12 % (Highest)
Share in Net Exports 32 % (Highest)
Contribution of National exports increase - 63.85 % highest
Net Retention Amount USD 1691.68 Highest
Net retention Rate 60% highest
Quantity Exported 120.13 Million dozen
Top sector in RMG

Source: www.Jetro.com date: 08/12/2005

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 Top 5 trading Partner (Import)

Country FY 03-04
India 1602.28
Republic of China 1198.09
Singapore 911.04
Japan 551.65
Hong Kong 432.87
Republic Of Korea 420.03
Source: www.Jetro.com Statistical data of Bangladesh bank Date08/12/2005
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 I started my own
import export
business

Source: www. Jetro .com export import of Bangladesh coach date: 08/12/2005
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 Major Country-Wise Export Of Commodities By Broad Description (Value in "000" US
From Bangladesh During The Period Of July-June 2004-05 $)

Raw Woven July-June % Share of

Commodity Jute Goods Knitweare Others
Jute garments 2004/05 Total Export
1,623,40
USA 746 17,858 402,684 193,170 2,412,046 27.87
7
Germany 609 3,273 668,818 620,548 37,014 1,353,796 15.64
UK 251 8,003 330,081 357,881 127,270 943,175 10.90
France 7 577 373,285 211,985 33,913 626,170 7.24
Italy 229 1,489 184,929 113,838 21,521 369,182 4.27
Canada 33 1,930 118,746 189,195 23,864 335,428 3.88
Spain 129 3,700 208,220 99,579 6,734 329,436 3.81
Belgium 446 26,075 132,839 67,532 8,837 325,435 3.76
Netherlands 205 8,311 142,664 117,494 16,586 291,944 3.37
Other countries 69,090 202,577 190,974 133,547 317,884 1,268,098 14.65
3,598,20 8,654,52
Grand Total 04-05: 96,186 307,477 2,819,472 896010
5 3
% Share Export 1.11 3.55 32.58 41.58 10.35
Total Export 03-04 79695 246452 2148022 3538066 810720 7602998
% Change 20.69 24.76 31.26 1.70 10.52 13.83

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 S-P Group 25
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 Category- Wise Imports (Million US $)

% Share
% of
FY 97- FY 98- FY 99- FY 00- FY 01- FY 02- Change Commo
Commodity
98 99 00 01 02 03 in FY dity in
02-03 FY 02-
03

Tanning and Dyeing Extracts 66 66 71 91 87 86 -1.15% 0.89%

Cotton 207 233 277 360 312 393 25.96% 4.07%
Yarn 327 283 300 322 283 270 -4.59% 2.80%
Textile and Articles Thereof 1264 1109 1153 1291 1,063 1,106 4.05% 11.46%
Staple Fiber 48 39 43 39 39 41 5.13% 0.42%
Others 914 1060 1335 1424 1,280 1,395 8.98% 14.46%
Sub Total 7027 7510 7709 8650 7,913 8,921 12.74% 92.46%
Imports By EPZ 493 496 665 685 627 727 15.95% 7.54%
100.00
Total Import (CIF) 7,520 8,006 8,374 9,335 8,540 9,648 12.97%
%
Source: Statistial Department, Bnagladesh Bank

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 Country Wise Import (Million US $)

Country FY 97-98 FY 98-99 FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY 03-04

India 934.14 1,234.82 832.60 1,183.99 1,018.82 1357.78 1602.28

Republic of China 592.51 560.42 568.04 708.96 878.42 938.27 1198.09

Singapore 321.43 553.04 700.99 823.65 871.44 1000.16 911.04

Japan 482.86 493.93 685.15 846.03 655.02 605.15 551.65

Hong Kong 442.63 451.54 455.42 477.64 440.87 433.34 432.87

Republic Of Korea 381.37 286.62 319.25 411.47 345.51 332.91 420.03

Taiwan 352.90 360.78 386.25 411.97 311.72 328.34 376.54

USA 310.72 300.88 324.67 248.10 260.85 223.16 225.6

UK 350.69 201.88 224.62 272.47 193.63 204.16 212.67

Australia 174.16 198.12 199.90 218.77 181.76 188.82 218.01

Other Countries 2,683.99 2,867.95 3,011.50 3,046.58 2,754.84

Sub Total 7,027.39 7,509.99 7,708.40 8,649.62 7,912.88

Import Of EPZ 492.60 496.00 665.60 685.40 627.10

Grand Total 7,520.00 8,005.99 8,374.00 9,335.02 8,539.98

Source: Bangladesh Bank

Note: All the fiscal (FY) data represent July-June period

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 Segments Major Import Items
Cotton (all types), cotton yarn and thread & cotton fabrics

Knitted or crocheted fabrics

Special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings

embroidery

Articles of apparel and clothing accessories, not knitted or crocheted

Man- made staple fibers

Man-made filaments

Plastics & articles thereof:

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 knitwear AND Hosiery
Terry Towel
Home textile
Handicrafts
Raw Jute, Jute Goods
Knitwear , T . Shirt, Sweater
Woven Garments
Shirts
Trousers
Jackets
Others S-P Group 29
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 Trade Surplus
Aid and Trade Indicators
Trade Deficit
1997 1998 1999 1/

Total Exports FOB 4,406 5,161 5,313

Exports to U.S. 3/ 1.679 1,846 N/A

Total Imports CIF 7,162 7,524 7,515

Imports from U.S. 3/ 259 318 N/A

Trade Balance -2,756 -2,363 -2,202

Balance with U.S. 3/ 1,420 1,528 N/A

External Public Debt 4/ 15,025 15,855 16,234

Fiscal Deficit/GDP (pct) 4.5 4.2 5.3

Current Account Deficit/GDP (pct) 2.4 3.6 4.2

Debt Service Payments/GDP (pct) 1.0 1.0 1.0

Gold and Foreign Exchange Reserves 1,719 1,751 1,522

Aid from U.S. 5/ 73.6 77.0 153.0

Aid from All Sources 6/ 1,481 1,419 1,502

1/ The Bangladesh fiscal year is July 1 to June 30.

2/ Percentage change calculated in local currency.
3/ Figures are for the calendar year.
4/ Medium and long-term.
5/ Figures are for the U.S. fiscal year (October 1-September 30).
6/ Disbursements.
© All rights reserved
Last updated on Sunday, October 30, 2005.
S-P Group 30
 ACKNOWLEDGEMENT
I gratefully acknowledge my indebtedness to Lecturer Dr. Shaiful Islam CTEXT
FTI, Course teacher Prof. Dr. Md. Kayemuddin, Prof. Dr. Zakir Hossain Director
School of Business, Primeasia University, who have acted as my supervisor. He has
introduced us to the Case Study for Bangladeshi Apparel Industries Performance: Trade Potential &
Growth Opportunity” in the course of Fiber and Yarn Study has given me a proper
education and made us confident that we can carry on further. His help and
guidance have been an outstanding factor for the completion of this work.
I express my sincere thanks to the members of the teaching staffs of School of
Business, Primeasia University especially to Lecturer Dr. Shafiul islam, with all the
staff of School of Business, PAU.
I take this opportunity to express my heart full thanks to all of the Authority for
providing me all sorts of valuable information.
Finally, I extend my indebtedness to our H.able VC, Registrar, Dr. Iyub Nabi
khan and my friends especially Mr. Rabin , Forkan, Lovely& Golam Sawarwer DM
PTML BEXIMCO to my beloved parents in the form of financial support,
encouragement and advice, it can never be returned adequately and these support and
blessing have made it possible to carry out this Programming work to completion.

S-P Group 31
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