Study on export oriented woven fabrics produced in Bangladesh

2. Prepared By : Prepared By : Mazadul Hasan sheshir ID: 2010000400008 13thBatch (session 2009-2013) Department : Wet Processing Technology Email: mazadulhasan@yahoo.com Blog : www. Textilelab.blogspot.com (visit) Southeast University Department Of Textile Engineering I/A 251,252 Tejgaon Dhaka Bangladesh

3. Total Textile Process at a Glance

4. OUR MAIN PURPOSE IS TO FIND OUT WHY WE ARE PRODUCING ONLY 30% WOVEN FABRIC WHILE IMPORT AROUND 70% WOVEN FABRICS FROM ABROAD?

5. INTRODUCTION We the men of Bangladesh are inborn weavers. If we turn back near future we can see that the local woven sector was very rich in product mix. But in recent times with the gradual development in knit sector, woven sector is day-by-day lagging behind. A matter of great sorrow that we only produce 30% of export oriented woven fabrics fabric while we import around 70% woven fabrics form abroad. What are the problems? What are the burdens towards the development of woven sector? We three friend tried our level best to sort out those problems.

6. LITERATURE SURVEY & SURVEY DATAS Some of their findings are given below: Must improve our dye-stuff manufacturing capability. Our bank interest rate is highest among all competiting countries. So we must have to reduce it.  Must improve our fabric design and research facilities. We may utilize other fibres like Bamboo, Hemp etc. Installation of solar power needs financing. Must improve woven dyeing as well as finishing capacity. Must improve our production capability of synthetic fibres. Finally quality of woven fabric should be improved.

7. EXPERIMENTAL & SURVEY DATAS At the very beginning of our thesis, we have done a survey work. We have visited at least 5 big woven industries and some buying houses. We had met a number of fabric suppliers and merchandisers. They had given us much information according to our desire. List of factories are given below: Beximco Textile Mills Limited. Noman Weaving Mills Limited. Zarba Textile Mills Limited. Shabab Fabrics. Unifill Group Limited. Dewhirst Limited. Noman Terry Limited.

8. EXPERIMENTAL & SURVEY DATAS We have enlisted some important questions relevant to our topic before reaching those textile mills and buying houses. The list of questions is given below: What are the reasons behind less number of woven projects in Bangladesh? What are the difficulties found in woven fabric production? Why we are not able to ensure acceptable quality limit of woven fabric? Which types of fabric we import from foreign countries, and what are the reasons we import it rather than produce it locally? Why we are not interested to produce variable types of woven fabrics? Is there any problem in logistic supports associated with woven fabric production?

9. PROBLEMS FOUND ABOUT WOVEN FABRIC PRODUCTION IN BANGLADESH GENERAL PROBLEMS  PRESENT PROBLEMS Investment Capability Power Consumption Improper Utilization of Technical Persons Requirement of Space Process Difficulty Buyer Recommendations Environmental Policy Very Less Woven Dyeing Facility

10. PROBLEMS FOUND ABOUT WOVEN FABRIC PRODUCTION IN BANGLADESH : PSYCHOLOGICAL PROBLEMS: OTHER REASONS: Lack of confidence Horizontally Integration High profit achieving tendency New Fabric Development Vendor don’t want to take risk Machine Conditions Factory Evaluation Lack of Modern Design Machine Lack of Government Patronizations

11. DESCRIPTION OF THE MAJOR PROBLEMS  INVESTMENT CAPABILITY Weak economic condition of Bangladesh  Limited big investors with less interest to invest in big projects.  In our country an investment of about 30-50 million is considered as very big investment .  In CHINA,INDIA,AUSTRALIA,PAKISTAN investment under 100 million is very uncommon.  In some cases new factory without 1000 looms is strictly prohibited.  So they have very good scope to setup various types of looms.  As a result they always get the big orders of bulk production.

12. Improper Utilization of Technical Persons  Most important factor for every sector in Bangladesh.  In our country most of the Textile factory as well as Garments are running without or with very small number of textile Specialist/ Technologist. This is true for both management level as well as junior level. In case of knit sector Bangladesh has already got huge experience in making various types of knit fabric. Because initially when this sector start to grow in Bangladesh, the foreign buyers are starting to give order of varies product.  Because they know the requirement & facilities to ensure the quality of knit fabric can be easily achievable & the technology is not so difficult.

13. The record of order of knit garments is given below NB: Total Export & Net Retention are in Million Dollars.

14. Improper Utilization of Technical Persons Now if we focused on woven sector the case is different in comparison of knit sector. A data to show the increasing rate of woven garments & knit garments exporting rate is given below.

15. Improper Utilization of Technical Persons If we saw the table we can see that in first moment from 1990 to 2002 the woven garments exporting amount is increasing consistently which means consistent growth of woven fabric production locally. But after a period of the increasing rate of local woven garments production is very low or can say the growth rate is very slow. To find out the reason why this happen we contact with BGMEA,BTMEA some leading buying house & some experienced Merchandiser . as the woven projects are very few in number and it is very time consuming and difficult to make skilled manpower for woven factory, so we only produce what we produce as usual.

16. Improper Utilization of Technical Persons . They told us that,’’ For producing various types of quality woven fabric, we don’t have enough expertise and we can’t make enough skilled manpower timely.’’ For this reason the woven projects are not increasing gradually like knit projects in Bangladesh.” As the woven projects are very few in number and it is very time consuming and difficult to make skilled manpower for woven factory, so we only produce what we produce as usual. . As the variation in production number of projects is very less, the textile expertise of Bangladesh lost their interest to be a woven fabric expert and thus the sector is going to the hand of non-tech people.

17. PROCESS DIFFICULTY Sequence of operation (Gray Woven Fabric) Yarn from spinning(cone) For warp Winding For weft Warping Weft(cone) Sizing Drawing and denting Knotting Looming Weaving Inspection Folding Packaging

18. PROCESS DIFFICULTY Sequence of operation (Knitting): Yarn in cone form Feeding the yarn cone in the creel Feeding the yarn in the feeder via positive feeding arrangement and tension device Knitting Withdraw the rolled fabric and weighting Numbering Inspection Delivered to the garments

19. PROCESS DIFFICULTY If we focus on these processes we can easily understand why woven fabric production is difficult and why variations can’t be easily brought in woven fabric in comparison with knit fabric.

20. ENVIRONMENTAL POLICY  Buyer evaluates the factory by find out their environmental policies. . Most of our factories have no any specific environmental policies, even they have no any ETP. . Factory owner’s main argument about ETP is that ETP running is very costly and added extra value to the product. Buyers also see where the factory is established, is it in a crowed ful area or outside of the town, they also see how much impact of that factory to the environment.

21. ENVIRONMENTAL POLICY A Data of Minimum Standard Requirements of factory environment which proposed by an well reputed Buyer is given below:

22. PRESENT PROBLEMS Power Consumption:  No doubt it on off the major problems.  Lack of resource and investment.  Lack of maintenance of existing power plants.  Many capable groups are waiting for power supply in their big projects, those are already established, machines are available….but power supply is nil!  As we all know that before weaving, WARPING & SIZING is mandatory and it consumes huge power than knit industry.

23. Power Consumption A case study showed that a renowned woven factory named NOMAN WEAVING MILL’S per month needed power is 3723 kw(for 128 looms). While a renowned knitting factory named Mother Color having 128 circular knitting machines per month power consumption is only 768 kw. So it is now clear that a huge power is needed to run a woven factory.

24. Requirement of Space 30 acr

26. Requirement of Space 1 acre

27. Buyers Recommendation A RECOMMENDATION LIST OF BUYER FOR WOVEN PRODUCTION:

28. Buyers Recommendation

29. Buyers Recommendation

30. Buyers Recommendation .

31. Buyers Recommendation

32. PSYCHOLOGICAL PROBLEM LACK OF CONFIDENCE: ‘’ WHY WE ARE PRODUCING ONLY SOME COMMON FABRICS, WHY COULD NOT WE PRODUCE OTHER DIFFICULT DESIGN FABRICS? WHERE MOST OF THE CASES ALL FACILITIES ARE AVAILABLE!’’ Before answer that question we have to look after some facts: 99% of our woven factories have very less amount of TECHNICAL PERSONS! Even those non-tech persons have gained the PRODUCTION MANAJER post! When a buyer contact with that PRODUCTION MANAJER and then show his fabric sample, which is very difficult to analyse and more difficult to produce.

33. PSYCHOLOGICAL PROBLEM That time He(PM) began to think about his factory pressure, by this time He easily sort out that ‘’ HAY I HAVE ALREADY GOT ENOUGH ORDER OF NORMAL BULK FABRIC PRODUCTION, WHY SHOUD I ACCEPT THAT DIFFICULT DESIGN ORDER, WHICH ANALYSIS SHOULD BE TIME WASTING AND THE WHOLE PROCESS OF PRODUCTION SHOULD BOTHER MY MIND A LOT!’’ Another fact tells that ‘’THIS TYPE OF RELAXED MENTALITY ‘’ didn’t grow in a day..........it is the lack of inspiration to the manager from the superiors. As a result day by day that person loses his attention towards doing some innovative things. These lead us to the unsatisfactory development.

34. PSYCHOLOGICAL PROBLEM HIGH PROFIT ACHIEVEING TENDENCY:  This type of tendency has a great impact in our woven sector. A case study tells that our factory owners always try to make minimum 200% profit on every shipment/individual product.  . To achieve high profit sometimes they apply illegal theory, for example in sizing they use lower quality or lower cost chemical. Suppose a fabric construction is 50*50/140*96=58’’ in that case total warp required is 8120 but they do it with 8000 ends. No problem they minimize the problem in the section of finishing. So they saved 120 cones then 120*2.8=336 Dollar saved.

35. PSYCHOLOGICAL PROBLEM Here comes the matter of cost, in Bangladesh the cost of fabric is relatively high than other fabric producing countries. Main reason is that we always import raw materials to machines, these added huge value to the products. Here comes another fact that our factory owners are not deep thinkers or having business related intelligence. They can’t realize that if they consider the cost of these products they may get more orders, but it is a matter of great sorrow that they can’t do this. In another case most of the time they follow the international market price, for example 1 yds fabric price is 2.98 $, India that time cleverly drop the rate in to 2.85$. Then again the Bangladeshi factory owners drop the rate. Again India raises the price but that time Buyers think that India gives us better quality than Bangladesh, then why should we drop the order in Bangladesh! The average price of Bangladesh-made shirts was $62.74 per dozen in 1998. This price was the second lowest. The Dominican Republic sold the lowest priced shirts of the same category at $54.79 per dozen. Prices of Indian, Mexican and Sri Lankan shirts were $81.04, $76.26 and $74.77 respectively. Against this, the prices of Hong Kong and Malaysia shirts were $107.34 and $134.08 respectively. Exporters from Bangladesh produce mostly those items on which quotas are available.

36. PSYCHOLOGICAL PROBLEM VENDOR DO NOT WANT TO TAKE RISK : From the above discussion already we have seen that in 95% cases we have got only common fabric orders. Now-a-days it became more difficult for the Garments officials to choose the fabric producing factories by their own because of buyer restriction. A case study tells that; GAP the most famous buyer in the world. They ordered Ananta garments to sort fabric from an Indian fabric producing factory. They did not prefer our Bangladeshi factories. Another fact is that Ananta garments are habituated to sort fabric from that Indian reputed factory. Suppose after 5/6 years GAP permit them to sort fabric from anywhere, that time Ananta garments official thinks that why should I sort fabric from other factories while that Indian factory supplying our required fabric in a satisfactory way.

37. OTHER REASONS HORIZONTALLY INTEGRATION : Most of the woven factories are horizontally integrated. It seems that they don’t have any spinning, dyeing, printing, finishing, garments facilities under one specific shed. Most of them are very much dependent on yarn supply. A matter of great sorrow that our yarn quality is not too good and cost is comparatively higher than international market. As a result the fabric cost is become high. NEW FABRIC DEVELOPMENT: Very less amount of new fabric development according to buyer requirements, also we are not capable of all sort of fabric development. Own innovation is almost absent here. Thus we can’t attract or assure the new buyers, those who want to drop their orders. That’s why we always got the order of regular or normal fabric production. Fabric developers are not interested to build up new fabric concept because there might not have facilities to produce that sort of value added fabric. Finally we always having same buyer same production

38. OTHER REASONS MACHINE CONDITIONS: Most of the machines of our factories are almost 5/10/15 years old. So when buyers come to an audit in that mill they became demoralized. Some of the factories are using end life Warping and Sizing machines thus the efficiency became less. Most of machine having duplicate parts thus they losing their efficiency gradually. Another case study said that in most of the factories the WARPERS & WEAVERS beams became ‘TAL’ that’s why warping and sizing became faulty. FACTORY EVALUATION: Unfair policies of big industries also responsible for this condition. A case study showed that big industries when expand their plants, they easily get extra power because they are renowned while new factories failed to achieve that. Buyers mentality is also responsible, they always drop order to the renowned factories. While in many places in our country produce quality fabrics. Another concept is that those less renowned factories failed to prove themselves, they failed to catch buyer. They satisfied themselves by producing only local fabric.

39. OTHER REASONS LACK OF MODERN DESIGN MACHINE: Our machines are capable of producing only normal design fabrics. So we can’t produce difficult design fabric specially curtain fabric and heavy blankets. In winter major countries a great demand of heavy blanket is seen. The absence of modern JACQUARD machine caused a great misfortune to get those order. LACK OF GOVERNMENT PETRONIZATIONS: No doubt that woven sector is a promising sector in Bangladesh. It needs huge government patronization, but the real scenario is totally different. To import woven machinery and accessories, vendor doesn’t get any Tax holiday facilities. If we focus India, China, Honkong, Thailand and other woven fabric producing countries, we found that their producers have got huge facilities provided by their government. Facilities are given below:

40. OTHER REASONS Their government provided huge research facilities and they have got the independence of making decisions. They have got 100% tax free facilities for any kind of woven related import. They have got uninterrupted power supply. Their bank interest for this sector is almost 0-1%. They have got huge technical persons as well as modern machineries. They achieved ultra modern technologies by the shake of huge Textile related institutes. Now if we focus our Textile sector specially woven sector we are facing above discussed laggings. Now we are standing towards a great opportunity that is technical textiles. Its application is gradually increasing day by day. An important fact is that 90% of Technical textiles are made by woven fabrics. Now if we want to grab that opportunity or catch the market we must have to improve our present condition of woven sector.

41. OTHER REASONS A consumption of technical textile is given below:

42. THINKINGS 1. Establishment of Modern Woven Fabric Research Centre. 2. Special patronization of Government for the improvement of woven sector. 3. Encourage the local woven manufacturer to come into International Market. 4. Provide Special facilities in case of Power supply for woven sector. 5. Increase expert manpower for woven sector. 6. Try to produce Textile Machineries locally. 7. Establishment of active R&D Section in every woven factory.