Readymade and has come to the position it


Readymade Garments (RMG) is one of the auspicious sectors in Bangladesh. The apparel
industry of Bangladesh started its journey in the 1980s and has come to the position it is in
today. In this long run, a series of garment industries have been growing up in different areas
like Narayanganj, Gazipur, Narsingdi, Mymensingh, Chittagong and so on. It also should be
mentioned that, further expansion in these area is not a viable thing and will be considered as
a threat to the environment and safety requirements. However, this sector has experienced a
tremendous growth of 55% from 2002 to 2014. As a result Bangladesh is now exporting 35
types of garment products to almost 31 countries among which 60% are European buyers and
the rest are American. In 1972, the World Bank approximated the gross domestic product
(GDP) of Bangladesh at USD 6.29 billion and it grew to USD 173.82 billion by 2014, with
USD 31.2 billion of that generated by exports, 82% of which was ready-made garments.
However, though the RMG sector in this country has been a successful story over a long time,
it is only based on day to day experience rather than any relevant educational skill or proper
plan. Till today the back-linkage supplies are directly or indirectly related to import process
which is a very critical factor for sustainable growth of any business. At present Bangladesh
occupies the 2nd position in RMG manufacturing just after China and it has been claimed to be
the “Next China” in few years, but still now, this market is mostly producing basic and semi
value added garments. In the meantime the global market in this industry has experienced a
rapid change in last couple of years. China produced a lot of engineering value added product
to the market to maximize the customer satisfaction. So there is a possibility of bringing a
change in product line in near future. As textile industries have an adverse impact on
environment, there are difficulties in environment friendly manufacturing. Despite a few RMG
industries of Bangladesh has played a notable role in green manufacturing practices which is
very expensive. Then again one of the fundamental needs of human civilization is cloth. With
the growing population the demand of cloth will increase anyway. But it is a matter of concern
whether the demand will continue with the same product range or it will change. Moreover the
customer response time is a critical factor to satisfy customer demand. In Bangladesh the lead
time is 90-120 days which is quite higher than other countries in this region.
Again cost of manufacturing is exponentially increasing with the passing of time and rising of
economy. At the same time the market is very competitive. So it is a great challenge for the
manufacturer to produce products in the affordable buying range. And because of being a dense
industrial area the scope of erecting more industries has become narrow with limited
infrastructure growth. In that case another relevant option may be to explore new potential
areas like- Khulna, Rajshahi and Barisal where new industrial zone can be established other
than EPZ and EZ but there might be difficulties involving legal approvals from regulatory
commission and logistics. Moreover Bangladesh is a politically instable country and natural
calamities are very common throughout the year.
Now, suppose, you are Mr. Steve and you work as a business analyst for a leading readymade
garment Industry named Agile Apparel Solution Ltd. Which is located at Gazipur, Dhaka. You
experienced an excellent business growth in last five years starting from 150 million to 175
million export. You are trying to continue the current growth level in future. To do so you can
decide on expanding the existing facility or go for setting up a new factory.
Now you have to make a suitable proposal to convince the managing director considering all
the facts described above.

x

Hi!
I'm William!

Would you like to get a custom essay? How about receiving a customized one?

Check it out