The textile and clothing behemoths of Bangladesh are investing their excess wealth in new industries to take advantage of an economic growth that’s booming and a rising purchasing power among consumers.
Successful garment and textile manufacturers have expanded to other industries, such as real estate development, electricity production, farming, dairying, banking and tea, making computer chips, the capital market, finance, health and education, leasing, ecommerce, construction and pharmaceuticals.
Follow The Daily Star on Google News to get the latest updates. Since the 1970s, when local entrepreneurs exploited the quota-based system to create a successful industry, textile and garment manufacturing has played a crucial role in the economic sector by creating foreign currency and jobs.
Over the past three decades, these factories have contributed to nearly 85% of national export revenues. Industry people claim that over 100 factories in the textile and clothing industry have an export revenue of more than $500 million per year.
Ha-Meem Group is one of the leading garment and textile companies that have invested in sectors such as media, bank, insurance and tea estate.
“My primary focus remains the textile and apparel sector, even though I’ve started to invest in other sectors,” stated AK Azad. Chairman and CEO of Ha-Meem.
To meet international retailer and brand demands, the Group is increasing its presence in the textiles and clothing sector. They are producing denim and recycled fabric.
DBL Group has been one of Bangladesh’s biggest textile and garment producers. They have invested heavily in ceramics, tiles and pharmaceuticals as well in agricultural products, digital technologies and dairy.
MA Jabbar said that DBL Group’s managing director, MA Jabbar. “These areas have huge potential for growth.”
DBL’s core business is clothing and apparel, and the company has grown a great deal.
Ananta Group has also invested money in hotels, real estate and other businesses.
Sharif Zahir said that despite the massive investment made in other industries, Ananta Group’s primary focus is on textiles.
The textile and clothing entrepreneur who makes value-added high-end garments for Western buyers has said he’s already invested millions in generating electricity.
Entrepreneur plans on spending more money to produce 1 600 megawatts.
Md.SaifulIslam, President of the Metropolitan Chamber of Commerce and Industry (which mainly represents conglomerates), says large groups are increasingly investing in sectors with diversified risks, as they can reap greater profits on the local market.
The economy is growing and there are new opportunities. “On the other hand the risks on export markets are high and fierce competition exists in international markets.”
HSBC global research reported last year that Bangladesh was expected to become the ninth largest consumer market worldwide by 2030. It will surpass the United Kingdom, Germany, and France. Bangladesh was the 16th biggest consumer market in 2021.
Islam also said that the investment and growth of the textile and apparel sector is increasing at the same time.
Md. Amin Helaly is the senior vice president of Federation of Bangladesh Chambers of Commerce and Industry. Md. Amin believes that when entrepreneurs have surplus money, they invest in new businesses. This is what is occurring now in Bangladesh.
Now is the right time to move Bangladesh’s business to the next stage. The chance has already been created.”
The business leader may say, for example, that Bangladesh should produce textile machines because the sector is so strong.
Bangladesh, the second largest apparel exporter in the world, increased its share of the global clothing trade to 7.9 per cent in 2022, from 6.4% in 2021.
The fact that large groups are moving into new industries does not mean they will abandon the traditional textile and garment sectors. In fact, the groups have spent millions on green factories.
Bangladesh currently leads the world in LEED certified green buildings with 200 factories. Another 500 units are awaiting a similar certification.
Leading in Energy and Environmental Design (LEED) is the greenest building rating system in use globally.
The local textile and clothing mills are also increasing production of higher-end, value-added garments. This will result in higher prices than the current basic apparel items.
Helaly also added, “Small businesses should have the opportunity to grow so they can be bigger in time.”