The apparel units within Team Group adopted a strategic approach to boost exports by embracing green technology and enhancing the skill sets of their workforce, yielding favourable outcomes over the recent years.
This achievement served as a catalyst for Abdullah Hil Rakib, the managing director of Team Group, inspiring him to pursue further transformations aligned with the global demand for environmentally friendly manufacturing practices.
Rakib envisioned an escalation in exports from the 4A Yarn Dyeing division, targeting a milestone of $200 million by FY26.
鈥楾o accomplish this, we intend to erect two additional facilities, housing 30-40 new production lines dedicated to functional knitwear and activewear,鈥� he said.
Rakib, also a director at the Bangladesh Garment Manufacturers and Exporters Association, emphasised that this export growth would be achieved without an increase in manpower, while ensuring improved wages for heightened efficiency.
He attributed this proactive approach to the industry鈥檚 growing sense of social responsibility, an affinity for environmental stewardship, and the evolving consumer preferences on the global stage.
鈥楾his shift has prompted garment sector entrepreneurs to eagerly establish a greater number of ecologically sound factories within the country,鈥� he said.
Rakib pointed out that the key moment following the tragic Rana Plaza building collapse in 2013 led entrepreneurs to recognise the imperative for change within the industry, subsequently adopting a green transformation ethos.
He highlighted that the implementation of this philosophy extended beyond factory premises and infiltrated the entire eco-system, influencing personal lives and driving positive changes.
Rakib underlined that responsible clothing choices were essential, necessitating adherence to rigorous environmental, social, and governance (ESG) guidelines for manufacturing facilities.
Adapting to the evolving landscape of the industry, Rakib advised that entrepreneurs must invest in cultivating skill matrices to remain competitive.
He posited that sustained success in business hinged on those entrepreneurs who would steadfastly embrace Industry 4.0 and champion the principles of ESG, ensuring long-term sustainability.
The evolution of Bangladesh鈥檚 ready-made garment sector commenced in the 1980s, and its growth was nurtured by governmental and policymaker support.
鈥楽ome of our pioneering entrepreneurs, such as M Noorul Quader, the founder of Desh Garments, recognised the sector鈥檚 potential, leading to substantial expansion between 1990 and 2010,鈥� explained Rakib.
The advancement of Bangladesh鈥檚 RMG sector could largely be attributed to the Multifiber Arrangement (MFA) of that era, an international trade accord governing textile and clothing trade, which imposed quotas on developing countries鈥� exports of yarn, fabric, and clothing to developed nations and this arrangement concluded in 2004.
During that period, entrepreneurs were more focused on production than safety and regulatory compliance.
Factory safety was often limited to fire extinguishers and a couple of stairways, as required by buyers.
However, the wake-up call came with the tragic Rana Plaza building collapse, leading to a heightened awareness of worker safety.
This incident triggered a transformative phase for the RMG sector, according to Rakib.
In the initial stages of this transformation, entrepreneurs recognised the importance of practices such as reusing, recycling, and reducing waste in the sector.
Team Group鈥檚 garment manufacturing unit, 4A Yarn Dyeing Ltd, achieved the esteemed Leadership in Energy and Environmental Design (LEED) platinum certification from the United States Green Building Council.
Initially facing challenges, the unit was revitalised under Rakib鈥檚 leadership, who championed the concept of recycling.
Since taking over the factory in 2009, Team Group had been dedicated to greening the facility and enhancing working conditions.
This endeavour involved integrating cutting-edge machinery into the operations.
Surprisingly, even workers with minimal technical education were able to proficiently operate software, showcasing their adaptability.
While competitive labour costs and energy prices were once defining strengths of the RMG sector, Rakib highlighted that these aspects were no longer as competitive.
Instead, the sector鈥檚 confidence stemmed from the efficiency gains achieved during this transformation.
He foresaw a potential labour crisis for the ready-made garment sector between 2030 and 2040.
This projection arose from the expectation that current workers would prioritise imparting technological education to their children rather than having them work in clothing factories.
In its manifesto, BGMEA asserted that Bangladesh鈥檚 apparel exports would reach $100 billion by 2030, alongside a projection that the sector鈥檚 workforce would total 6.6 million.
鈥楾his implies that employment figures will not witness growth; rather, they might experience a decline,鈥� Rakib pointed out.
The entrepreneur shared his perspective that the demand for clothing from Bangladesh in Western markets would be restructured over the next 10-15 years.
鈥楢s the purchasing power of the middle-income group gradually rises, Bangladesh is expected to increasingly focus on meeting domestic apparel demands,鈥� he said.
Consequently, Rakib suggested that after 2050, the allure of RMG exports might wane for numerous manufacturers due to the burgeoning appeal of the local market.
Rakib surmised that Western buyers might transition away from offshore production, spurred by the weaknesses exposed by the Covid-19 pandemic.
Instead, there was an anticipation of a shift towards relocating operations closer to the domestic market, potentially leading to a shortage of skilled workers.
This shortfall might eventually drive buyers to explore nations like Bangladesh not only for sourcing raw materials but also for accessing their workforce.
He also forecasted a profound shift in global demand and supply by 2045-55, coupled with the rise of technological advancements and a downward trend in consumption to preserve the planet.
He envisioned a transformed RMG industry characterised by increased responsibility.
Regarding environmentally-friendly factories, Rakib underscored that while global buyers showed preferences for such facilities when placing orders, they often hesitated to offer premium prices as a token of appreciation for these initiatives.
Rakib emphasised the importance of shared responsibility, urging the European Union and other developed nations to compel buyers to invest equitably, thereby offsetting their carbon footprint.
Elaborating on the adoption of green technology, Rakib articulated a commitment to environmental responsibility, highlighting that industry growth should not come at the expense of harming vulnerable farmers.
He stressed that pollution prevention could harmonise the coexistence of industry and agriculture, fostering mutual reinforcement rather than discord.
鈥榃ithin Team Group鈥檚 operations, enhancing worker efficiency is paramount, with a particular emphasis on cultivating a comfortable and conducive work environment in their factory,鈥� he said.
During the fiscal year 2022-23, 4A Yarn Dyeing, situated in Baipail within Savar under the Dhaka district, achieved garment exports amounting to $91 million, with a targeted export goal of $120 million in FY24.
鈥極ur approach involves enhancing exports through the integration of advanced technology and the upskilling of our workforce. We anticipate expanding exports while leveraging our current manpower, ensuring improved wages in exchange for enhanced efficiency,鈥� remarked Rakib.
Rakib held an optimistic outlook for the future, aspiring for exports from 4A Yarn Dyeing to reach $200 million by FY26.
The factory, comprising a workforce of 7,000 employees, specialised in crafting a diverse array of garments, including padded jackets, quilted jackets, seam-sealed jackets, down jackets, bomber jackets, ski-wear, jogging suits, rainwear, casual jackets, gilets, windbreakers, and leather jackets for renowned brands such as Guess, Next, Tommy Hilfiger, Calvin Klein, and s. Oliver.
Distinguished as the world鈥檚 inaugural outerwear manufacturer to endorse the Fashion Industry Charter for Climate Action, Bangladesh鈥檚 4A Yarn Dyeing Ltd was steadfast in its commitment to achieving a 50 per cent absolute reduction in greenhouse gas emissions by 2030 and attaining carbon neutrality by 2050.
Beyond its role in RMG manufacturing, the Team Group encompassed a garment buying house, a pharmaceutical enterprise, and a real estate company.
The group鈥檚 managing director outlined a comprehensive plan to transform all of their industries into eco-friendly entities by 2026.
Furthermore, the group aimed to augment total exports to $1 billion by 2030, a significant upswing from the existing $650 million.
Rakib acknowledged that despite remarkable strides in safety and environmental sustainability, the Bangladesh RMG sector often faced negative campaigns on the international stage.
This, he believed, was partly due to a lack of effective branding and promotion of the sector鈥檚 achievements.