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1 Welcome to our presentation Subject: Organizational Behavior & Management Pattern & RMG Industry in Bangladesh Study on: N. R. GROUP Submitted by: Tarikul Islam ID: 2010110001055 Munzur Rahman ID: 2010110001054 Mominul Islam ID: 2010110001066 Submited To Md. Anamul Habib

Presentation Outline:

2 Presentation Outline 1. Introduction: Over all RMG industry in Bangladesh 2. Objectives of the Study 3. Scope of the Study 4. Limitation of the Study 5. Data collection and interpretation 6. Findings and analysis 7. Identification problems 8. Conclusion and recommendation


3 Introduction: Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh. Ready-made garments manufactured in Bangladesh are divided mainly into two broad categories: woven and knit products. Shirts, T-shirts and trousers are the main woven products and undergarments, socks, stockings, T-shirts, sweaters and other casual and soft garments are the main knit products.

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4 Objectives of the study To know about current situation of RMG in Bangladesh To know about Managerial behavior of RMG To identify of problems in production and marketing of RMG To suggest some policy guideline of RMG

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5 scope of the study Decision to establish the purpose of the organization. Collective or shared goals A controlled performance

Background of garment industries in Bangladesh::

6 Background of garment industries in Bangladesh: Large scale production of readymade garments (RMG) in organized factories is a new phenomenon in Bangladesh. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposal income and change in life style. Important issues related to the Bangladesh ready-made Garment industry Year(s) Issue 1977-1980 Early period of growth 1982-1985 Boom days 1985 Imposition of quota restrictions 1990s Knitwear sector developed significantly 1993-1995 Child labor issue and its solution 2003 Withdrawal of Canadian quota restriction 2005 Phase-out of export-quota system

The present scenery of the Garment Industry::

7 The present scenery of the Garment Industry: At present there is more than about 50000 garment industry in Bangladesh. About 3 million people work in the garment industry. The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions, wages and benefits. Garment factories in Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws the worker are demanding their various wants and as a result conflict is began with the industry.

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8 Problems in the Garment Industry of Bangladesh : Labor unrest Political instability and corruption Lack of appropriate management knowledge Lack of oriented policy Lack of good government policy Lack of skills and expertise utilization Structural rigidities Policy included constraints Small number of manufacturing method Poor research centre Naturally not raw material producing country Lack of marketing policy Lack of supply chain, backward linkage (woven sector) Weakness in innovative textile e.g. medical, technical, and smart textile. Competition with neighboring countries Vulnerable industries dependence on imports Lack of sufficient technologically skilled worker No government university in textile sector Environmental effect natural disaster Crisis in power sector gas crisis, electricity crisis)

Objectives of the study:

9 Objectives of the study To know about current situation of RMG in Bangladesh To know about Managerial behavior of RMG To identify of problems in production and marketing of RMG To suggest some policy guideline of RMG

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10 Some possible point for which Garments sector can be greatly developed: A huge segment of the Investment is still virgin (woven and home textile) People with specialized knowledge are attracted on textile and clothing sector A member of LDC with which US is committed to enhance export trade Export Processing zones GSP privilege Europe, Canada and USA Member of MIGA (Multilateral Investment Guarantee Agency) Convenience of duty custom bonded ware house facilities Sufficient labor force at low wage rate Low energy rate Cheaper transportation

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11 Recommendation: Necessary steps can be taken to eliminate the problem:- Good government policy Developing infrastructure and Improving Utility The role of Banking Sector (low interest rate) To ensure swift trading To ensure Product diversification Earn new technology Searching new market To ensure the backward linkage industry To ensure the proper education system To build up world standard research centre To ensure quality product Cooperative relation among BGMEA, BKMEA, BTMA and backward linkage industries

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12 Conclusion: Three associations namely BGMEA, BKMEA and BTMA are playing advocacy in this sector. We need vertical integration of textile and clothing to be competitive in the global market. Strong market research, training in competence building, diversified marketing policy, avoid political unrest, avoid labor unrest etc can be the bursting factors for building global competence.

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13 Thank You for Your Attention

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