Bangladeshi RMG manufacturers are seeking scope for establishing a regional value chain for the raw material supply of manmade fiber-based fabrics from India to increase their share in the global readymade garment market.
To establish a sourcing network for raw materials, the Bangladesh Garment Manufacturers and Exporters Association and the Confederation of Indian Textile Industry jointly arranged a sourcing meet and roadshow on February 9-12 in India, media reported.
A Bangladeshi delegation led by BGMEA president Faruque Hassan held several meetings with senior officials of the Indian government and textile industry people in Delhi, Ahmedabad, and Surat to explore the scope for importing raw materials of MMF-based garments and exporting readymade garments to the neighboring country.
The BGMEA president said that they held a meeting with Indian textile secretary Rachna Shah at the Ministry of Textile in Delhi on Friday.
He said they had fruitful discussions about the bottleneck and congestion at both ends and about import payments in Indian currency instead of US dollars.
BGMEA vice-president Md Shahidulla Azim said that they invited Indian investors and businesspeople to explore the investment opportunities in Bangladesh’s non-cotton textile industry as the textile industry in Bangladesh still did not have varieties in the production like spandex, rayon, viscose, and other manmade fiber-based fabrics.
They also discussed the possibilities of forming a regional value chain through creating an integrated network of ‘raw material supply’, ‘production networks’, and ‘marketing networks at the retail level’ may lead two countries to develop global brands jointly.
Azim said that the global apparel market was moving towards MMF-based production while Bangladesh produced only 20% of MMF-based garments in its total production.
He said that the share of MMF-based garments stood 75% of total global production and Bangladesh would have to develop its MMF base to achieve the $100 billion RMG export target by 2030.
Azim said that Surat is the hub for Indian MMF fabric and it would convenient for Bangladesh to source raw materials from the market with a shorter lead time.
Currently, Bangladesh imports MMF-based fabrics mainly from China.
The BGMEA leaders said that the import of raw materials from India would also create an opportunity for Bangladesh to increase its RMG export to the neighboring country.
The size of the Indian apparel market is nearly $180 billion and there is potential for Bangladesh to increase its exports to the destination, they said.