SHANTOMARIAM UNIVERSITY OF CREATIVE TECHNOLOGY

Assignment topics : KNIT Factory of bangladesh problems and prospects

MGM-423

BRIGHT FUTURE OPTIMISTIC

May18,2013

Md:Alauddin
Lecturer
Department of Apparel Manufacturing Management & Technology,
Shanto-Mariam University of creative Technology,
Uttara, Dhaka-1230.

Subject: SUBMISSIONOF ASSIGNMENT OF MGM-423

Dear Sir,
I am contented to enfold my Assignment for the Module of (MIS-303) as requisite by you. It is
concerning of communication in an apparel industry and the market strategy that I have learned
in this task.

It will be highly cherished if you are kind enough to acknowledge my Assignment so that I can
go ahead.

Sincerely,

Bright Future Optimistic

Semester:7th
Group: A
Batch:14th
MGM-423

PREPARED FOR:
Md:Alauddin
Lecturer
Department of Apparel Manufacturing Management

PREPARED BY:
1. Shamim (Group Leader)
ID:101011288
Group:A,Semester:7th,Batch:14th
2. Sayed Amanat Ali
ID:101011271
Group:A,Semester: 7th ,Batch:14th
3. Rasel Mahmud
ID:092011217
Group:A,Semester: 7th ,Batch:14th
4. Shamim Haider
ID:101011204
Group:A,Semester: 7th,Batch:14th
5. Shafiquel Islam
ID:101011287
Group:A,Semester: 7th,Batch:14th
6. Robin Mia
ID:101011209
Group:A,Semester: 7th ,Batch:14th
7. Md.Tohedul Islam: 7th ,Batch:14th
ID:111013001
May18,2013
SMUCT

Acknowledgement
First of all We would like to demonstrate enormous admiration to my Almighty for giving us an
ability to carry type of Dissertation on the way to completion and finalization to my
accomplishment.

Then, We would like to show gratitude Mr. Aluddin Sir for giving us the actual ideas and cues as
a raw material for this Dissertation. Especially thanks to the Authority of Shanto Mariam
University of creative Technology for selecting this type of area under discussion that really
would be a pioneer on my future and to make a great plan to the future and near next.
Finally thanks to some of my friends for giving me the valuable comments about us and my steps
to this Dissertation.

October 18,2012

.........................................
Bright Future Optimistic

Problems & Prospects of Knit factory in Bangladesh

INTRODUCTION
Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history
of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden
history. Probably it started from the Mughal age in the Indian subcontinent through Dhaka
Muslin. It had global reputation as well as demandable market around the globe especially in the
Europea market.

After industrial revolution in the west they were busy with technological advancement & started
outsourcing of readymade garments to meet up their daily demands. Many LDC's took that
chance & started readymade garment export at that markets. As an LDC Bangladesh took this
chance enjoyed quota & other facilities of them. Thus readymade garment industry started to
contribute
in
our
economy
from
late
eighties
(1977).
The history of the garment industry dates back to 1977 when the first consignment was exported
to then West Germany by Jewel Garments. The number of units, however, remained a meager 46
until the end of 1983. From a humble beginning the sector has thus made phenomenal growth
over the last two decades, the number of units growing to around 4500. The RMG industry
achievement is noteworthy, particularly for a country plagued with poor resource endowments
and adverse conditions for industrialization. Exports increased from approximately 32 million
US dollars in 1983/84 to 1.4 billion dollars in 1992/93. In 1987/88, the RMG export share
surpassed that of raw jute and allied products. The figure further rose to 5.7 billion dollars in
2003/04, representing a contribution of about 75 percent of the country's total export earnings in
that year. The employment generated by the sector is estimated to be around 1.5 million workers.
Several factors account for the outstanding successes of the RMG industry in Bangladesh. At the
same time this industry had faced & till facing many problems also. These problems & prospects
of RMG industry in Bangladesh is my topic to find out as well as to make critical analysis on
these. The importance of my study has been raised up by recent labor unrest in RMG sector.
Being the biggest contributor to the country's foreign exchange- around 76 percent- and
employing around 2.2 million people, 80 percent of them women, the importance of nurturing a
sector as vibrant and thriving as the garments industry, cannot be emphasized enough. With
export of Ready Made Garments (RMG) reaching 9.2 billion in 2007 and predictions of it rising
to 12 billion or more in the next two years, it is obvious that the industry is growing at an
exponential speed. Greater demand for our garments abroad indicates the improvement in quality
of the products as well as greater customer confidence, which translates to further expansion of

the industry, more employment, more consumers in the domestic market and a huge boost to the
economy. However, there are many jolts and stumbles along the road to economic freedom and
overcoming them will determine whether we can sustain the boom that is waiting to happen.
It is like entering 'garment utopia'. Greenery adorns the tall shiny building; a gushing fountain
greets the visitor as birds chirp away in the swaying, leafy trees. It is lunchtime and scores of
young men and women walk towards an area where the food is being served while others stroll
out for a quick meeting with their families living close by. Still others go to the child-care unit to
nurse their children or just say hello to their kids.
Inside the building, everything is squeaky clean, the executive offices, glass walls, even the
factory floors where state-of-the-art machinery add to the sophisticated process of making each
garment. After lunch, we are taken on tour of the different units - dyeing, spinning, cutting,
stitching and so on. Hundreds of workers wearing colorful masks can be seen feverishly
operating the sewing machines, sorting, cutting fabric, sewing on various parts of the garment
that will end up in some fancy store in downtown London or New York or some other trendy
American or European city.

WHAT IS KNITTING ?
Knitting is a method by which thread or yarn may be turned into cloth or other fine crafts. Itis a
fabrication process i.e. intermeshing series of loops of one or more yarns or from a setof
yarns.Knitted fabric consists of consecutive rows of loops, called stitches. As each
rowprogresses, a new loop is pulled through an existing loop. The active stitches are held on
aneedle until another loop can be passed through them. This process eventually results in afinal
product, a garment.Knitting may be done by hand or by machine.Different yarns and knitting
needles may be used to achieve different end products bygiving the final piece a different color,
texture, weight, and/or integrity. Using needles ofvarying sharpness and thickness as well as
different varieties of yarn can also change theeffect.Knitted fabrics is the third major class of
fabric, after woven and nonwoven fabrics.
WEAVING V/S KNITTING
Like weaving, knitting is a technique for producing a two-dimensional fabric made from a onedimensional yarn or thread.In weaving, threads are always straight, running parallel either
lengthwise (warp threads) orcrosswise (weft threads). By contrast, the yarn in knitted fabrics
follows a meandering path(a course), forming symmetric loops (also called bights)
symmetrically above and below the meanpath of the yarn. These meandering loops can be
stretched easily in different directions, which givesknitting much more elasticity than woven
fabrics; depending on the yarn and knitting pattern, knittedgarments can stretch as much as
500%.For comparison, woven garments stretch mainly along one direction (the bias) and are not
veryelastic, unless they are woven from stretchable material such as spandex. Knitted garments
areoften more form-fitting than woven garments, since their elasticity allows them to follow the

bodyscurvature closely.Thread used in weaving is usually much finer than the yarn used in
knitting, which can give theknitted fabric more bulk and less drape than a woven fabric.
CHARACTERISTICS
Knitted fabric is unique in that it possesses a high order of elasticity and recovery. It can be
stretched to a considerable length and yet will gradually return to its original shape or
conformation. Design patterns can be changed quickly to meet fashion needs. Process is less
expensive and faster regardless of fabric width. The knitted structure is porous. It allows the
skin to breathe freely. Its elasticity permits greater freedom of body movements. Knitted fabrics
have higher potential shrinkage than woven fabrics. The accepted standard is 5 percent for knits.
Knits are less likely to wrinkle during use, care, packing and storage. Air permeability arising
from its looped structure, imparts to it desirable and appealing properties.
DEFECTS IN KNITTED FABRICS SKEWING BOWING OR TWISTING NEEDLE RUN
KNOTS SLUB FABRIC RUN BARRE PRESS OFF SPIRALITY
FORMATION OF A KNIT STITCH
(1) Start position (2) Clearing (3) Latch opening (4) Feeding (5) Drawing (6) Knock over
STRUCTUREThere are two main industrial categories of machine knitting : warp knitting and
weft knitting.Fabrics in both these categories consist essentially of a series of interlinked loops of
yarn. Warp Knit Warp knitting is the process of making a fabric in which the loops form in a
vertical or warp wise direction; the yarn is prepared as warp on beams with one or more yarns for
each needle. The fabric has a flatter, closer, less elastic knit than weft knit and is very often run
resistant. Weft Knit Weft knitting is the most common type of knitting, it is the process of
making a fabric by forming a series of connected loops in a horizontal or filling-wise direction;
produced on both flat and circular knitting machines.
WARP AND WEFT KNITTING
In the more common weft knitting, the wales are perpendicular to the course of the yarn. In
warp knitting, the wales and courses run roughly parallel. In weft knitting, the entire fabric may
be produced from a single yarn, by adding stitches to each wale in turn, moving across the fabric
as in a raster scan. Weft-knit fabrics may also be knit with multiple yarns, usually to produce
interesting color patterns. The two most common approaches are intarsia and stranded color
work. In intarsia, the yarns are used in well-segregated regions, e.g., a red apple on a field of
green; in that case, the yarns are kept on separate spools and only one is knitted at any time.
PRINCIPLE OF KNITTINGLOOP AND STITCH
The loop is the fundamental element of all knitted fabrics. It is a basic unit consisting of a loop of
yarn meshed at its base with previously formed basic units (stitches). Components of a knitting
loop are the needle loop and the sinker loop. A needle loop is one which has been drawn through
a previous loop. A sinker loop is one which connects adjacent needle loops. The stitch is the
smallest dimensionally stable unit of all knitted fabrics. It consists of a yarn loop, which is held
together by being intermeshed with another stitch or other loops. There are three basic knitted

stitches : KNIT, TUCK and MISS (float or non-knit) which form the starting point for the entire
range of weft knitted structure
KNIT STITCHES
Knit stitch (technical face) : is of V-shape appearance where the shanks are above, and the feet
are below the head of the preceding stitch. Purl stitch (technical back) : is of the semi-circle
appearance where the legs are below, and the feet are above the head of the preceding stitch.
Tuck stitch : is made when a needle rises to take a new loop without casting off the old. It
consists of a held loop and a tuck loop, both of which are intermeshed in the same course. Miss
stitch (Float) : A length of yarn not received by a needle and connecting two loops of the same
course that are not in adjacent wales.
KNITTING METHODS
Knitting was originally done by hand on straight or round needles by slipping stitches fromone
needle to the other and making a new stitch with each change.While hand knitting continues, the
main commercial product now is turned out by machine.A knitting machine is a device used to
create knitted fabrics in a semi or fully automatedfashion.There are numerous types of knitting
machines, ranging from the simple, non-mechanical, tothe highly complex and electronic. All,
however, produce various types of knittedfabrics, usually either flat or tubular, and of varying
degrees of complexity.Pattern stitches can be selected by hand manipulation of the needles, or
with push-buttonsand dials, mechanical punch cards, or electronic pattern reading devices and
computers.
KNITTING MACHINES
KNITTING NEEDLES
SPRING BEARD NEEDLESThis needle consists of a top hook curveddownwards with a
finished tip and thedownward continuation is called beard. LATCH NEEDLEIt consists of a
hook portion at the top and alatch riveted at certain distance from theneedle head. Latch needles
are given slidingmovements in individual grooves calledtricks of the cylinder. COMPOUND
NEEDLEThe speed of the bearded needle machine isrestricted by two factors. The
presserrequired to close or open the beard and thelength of the beard.
FLATBED MACHINES
In flat knitting, the fabric is usually turned after every row. However, in some versions of
doubleknitting with two yarns and double-pointed knitting needles, the fabric may turned after
everysecond row.A flat knitting machine is very flexible, allowing complex stitch designs,
shaped knitting andprecise width adjustment. It is, however relatively slow when compared to a
circular machine.The two largest manufacturers of industrial flat knitting machines are Stoll of
Germany, andShimla Seiki of Japan. But the pioneer of flat knitting machine is MATSUYA,
Japan.

FASHION MACHINES
Fully fashioned knitting machines are flat knitting machines that produce custom pre-shaped
pieces ofa knitted garment.Instead of knitting a whole rectangular sheet of fabric, instructions
from a knit pattern on a punch cardor computer file guide a fully fashioned knitting machines
needles to add or drop stitches to createcustom two-dimensional shapes appropriate to the
desired finished garment structure. The piecesemerge from the machine ready to be sewn
together.
CIRCULAR MACHINES
Circular knitting or knitting in the round is a form of knitting that creates a seamless tube.
Whenknitting circularly, the knitting is cast on and the circle of stitches is joined. Knitting is
worked inrounds (the equivalent of rows in flat knitting) in a spiral.Originally, circular knitting
was done using a set of four or five double-pointed needles. Later, circularneedles were invented,
which can also be used to knit in the round: the circular needle looks like twoshort knitting
needles connected by a cable between them. Longer circular needles can be used toproduce
narrow tubes of knitting for socks, mittens, and other items using the Magic Looptechnique.

FLAT KNITTING VERSUS CIRCULAR KNITTING

Circular knitting (also called "knitting in the round") is a form of knitting that can be used to
create a seamless tube. Knitting is worked in rounds (the equivalent of rows in flat knitting) in a
helix. Flat knitting, on the other hand, is used, in its most basic form, to make flat, rectangular
pieces of cloth. It is done with two straight knitting needles and is worked in rows, horizontal
lines of stitches. Circular knitting is employed to create pieces that are circular or tube-shaped,
such as hats, socks, mittens, and sleeves. Flat knitting is usually used to knit flat pieces like
scarves, blankets, afghans, and the backs and fronts of sweaters.

KNITPRODUCTS:
INDUSTRY TYPES
1. Knitting (Fabric Manufacturing by weft or warp knitting technique)2. Knitted Garments
(Panel knitting, cutting & assembling or Fully Cut Garments made from knitted Fabrics or
Integral Garments) 3. Knitted Fabric & Garments (Fabric knitting and garment manufacturing in
the same factory premises)

AZMOT KNITTING LTD

Yarn making (Spinning Industry) Yarn Dyeing Fabrics Dyeing & Finishing Fabric Printing
Garment Washings (Stone, Acid, Enzyme Washes, Milling, Shrink Resist etc.)

SWOTANALYSIS
The new environment represents a serious threat to Bangladesh. On the one hand, it is opening a
vast market with unlimited export potentials; on the other hand, it signals fierce competition
from textile giants like China, India and, from efficient producers like Thailand, Sri Lanka and
Vietnam. Competition may also come from Sub Saharan Africa and the Caribbean countries due
to preferential treatment from USA through TDA 2000. Different regional agreements like
NAFTA also appear to be unfavorable for the RMG sector of Bangladesh.
Given the changed scenario described above, the following sections focus on SWOT (strengths
& weaknesses and opportunities & threats) analysis of the RMG industry of Bangladesh.
Strengths
One of the strengths behind the success of RMG of Bangladesh is the availability of low cost
labor compared to other countries in the region. The labor rates in textile industry (compiled by
Warner International) show that the average hourly wage rates for Bangladesh, India, Pakistan
and Sri Lanka were respectively US$ 0.23, $0.56, $0.49 and $0.39 (Bhattacharya 1999a). Being
in the manufacturing of RMG for two decades, Bangladesh now possesses a large pool of skilled
& semiskilled manpower. Moreover, there are many unemployed young men and women who
can easily be converted into a skilled workforce if needed.
Given the fairly long learning curve in this industry, extensive experience in dealing with foreign
buyers, offshore bankers, shippers, and Clearing and Forwarding (C&F) agents is a valuable
asset for the exporters of Bangladesh.

Weaknesses

Dependence on others for raw materials, low productivity, limited knowledge in international
marketing information, poor infrastructure, political instability, disruptive trade unionism,

inefficiency in port management, and excessive dependence on RMG sub-sector are the major
weaknesses of the industry.
The industry is heavily dependent on others for outsourcing of raw materials such as clothing
and accessories. Bangladesh is currently importing raw materials (gray fabrics) for its RMG
factories from countries like India, China and Thailand under back-to-back L/Cs. In a quota free
environment, these countries will obviously try to export finished apparels to North American
markets rather than sell fabrics to countries like Bangladesh (Bhattacharya 1999b). With equal
access to the world market, these direct competitors will either stop selling materials to their
competitors like Bangladesh (a strategic move) or charge higher prices for their materials
(because of increased internal demand). In either case, Bangladesh will face difficulty in
procuring the required raw materials at reasonable prices.
Another major shortcoming of the apparel sector is the low productivity of its workers. The
laborer productivity of Bangladesh is much lower than that of Sri Lanka, South Korea and Hong
Kong (Reza, Rashid and Rahman 1998). Low productivity might erode the advantage of low cost
of labor of Bangladesh.
Exporters of Bangladesh also have limited access to current market intelligence and international
trade information (World Bank 1999) because, so far, foreign buying houses have been
dominating the marketing part of the business. In a post MFA era, if these buying houses shift
their bases to other countries, Bangladeshi exporters may face serious problems in finding their
ultimate buyers.
At present problems in port management is a serious challenge to RMG industry of Bangladesh.
The Chittagong Port is the most important entry and exit point for trade and commerce of the
country. Almost 90 percent of the exports and 75 percent of the imports of Bangladesh are
accomplished through the Chittagong Port (Huq 2000). Therefore, it is considered as the
countrys economic lifeline.
Opportunities:

The greatest opportunities lie on the unlimited market outside Bangladesh. In a quota free world,
the United Nations Commission for Trade and Development
(UNCTAD 1986) estimated that removal of the MFA and tariffs by developed
countries will expand exports of clothing by 135 percent and textile by 78 percent. Trela and
Whaley (1990), using a global general equilibrium model, estimated that the change will be
much larger: the value of imports of textiles and clothing will rise by 305 percent in the US, 200
percent in Canada, and 190 percent in EU. This indicates that phasing out of quota will expand
the market tremendously. Asia by far is the largest player in the world textile and clothing market

and, industry experts are confident that, overall, Asia still will dominate (Arvin et. al. 1996).In
the knitting sector, Bangladesh gained substantial competitive advantage over her competitors.
According to the Bangladesh Knitwear Management and Exporters Association (BKMEA), the
cost of yarn production per kg. in the private sector of Bangladesh is only US$1.48, whereas in
India it is $1.78, in Pakistan $1.60, in Japan $2.38, in Korea $1.73 and in Thailand $2.78 (IFC
1998 cited in Bhattacharya 1999). Therefore, knit-RMG has a good prospect for Bangladesh in
post MFA period. The apparel sector of Bangladesh mainly exports low-cost products to the
international market. But she can move into high value added products through diversification.
This is not impossible given her two decades of experience, good relationship with buyers,
worldwide reputation, and presence in quality-conscious United States and EU markets. Recently
it has already penetrated the difficult but lucrative quality-conscious Japanese market.

Threats:
The biggest threat will be the fierce competition from efficient producers like Hong Kong,
China, India, Thailand, Sri Lanka, Vietnam and many SSA and Caribbean countries. Threats
might come not only from marketing but also from outsourcing. As mentioned earlier, more than
95 percent fabrics are imported from direct competitors. The potential danger after 2005 is that
these countries might either stop selling their raw materials to Bangladesh or increase the price
of their
materials tremendously. Whatever may be the case, Bangladesh will lose some competitive edge
in the world market.
Environmental issues, labor standard, Trade Related Aspects of
Intellectual Property Rights
(TRIPs) etc. might also appear as a deadly threat to developing countries like Bangladesh. In the
words of Reza (1996):
Although developing countries are not being singled out for environmental issues, being
poorer, they cannot obviously maintain rigorous environmental standards. Moreover, the
fact that their competitive advantage often lies in natural resources and pollutionintensive industries implies that they are vulnerable to being pressured to enforce stricter
Appendix:
RMG industry is dominated by the private sector but the textile sub-sector is not. State-owned
textile mills are losing concerns, piling up huge losses every year. Past experience shows that the
public sector is not only unreliable; it is also inefficient and unable to maintain quality and low
cost8. Many attempts in the past have failed to privatize the losing state-owned textile mills due
to violent protests from trade unions. Instead of selling the mills to the private sector, they can be
leased out to private companies / groups in RMG sector to be managed better. BGMEA should
act as a lead manager and the management should be given full control of the mills. It will run

the mill for its own purposes applying all techniques of modern management. Funds may be
collected through issuing shares/bonds mainly to RMG factory owners. The new management
will modernize, restructure and reengineer the factory to convert it into a viable project. The
potential danger is that there may arise problems from massive lay-off and labor dissatisfaction. I
propose that this should not be termed as lay-off. Rather the private management will use
whatever labor they need and the government should pay full salary to unused laborers for the
time being (At present the government is doing so anyway, spending). Given the huge internal
demand, it is expected that subsequent expansion of the operation s will absorb the remaining
labor force into the system.
Now days, major companies are adopting merchandising concepts, which comply with all
procedures to execute and dispatch the shipment on time, considering quality, cost and time.
Merchandisers are serious in the success of any garment retail business. They provide the right
products at the right time, enabling a company to match with latest market trends and meet the
market demand. In the merchandising concept, time management is a gig to manage one's time
properly, so he can focus on value adding actions.
Today's garment merchandisers have to move with frequent changes in demand and the
developing technologies utilized in manufacturing and production. To find out customer
requirements, they regularly visit retail outlets, and come up with latest updates from frontline
staff. In order to keep an eye on developments in sourcing, site visits are made every week to
mainland factories to meet suppliers and study product

Savar Textiles Ltd is a mother concern of Supasox Ltd and Surma Garments Ltd. All are located
at
Savar
near
Dhaka
the
Capital
city
of
Bangladesh.
Savar Textiles and Supasox is the socks manufacturing unit and Surma Garments is only the
garments unit (composite) .
Company Profile
Basic Information
Company Name:
Business Type:
Product/Service

Savar Textiles Ltd.

Manufacturer
Socks, Garments

(We Sell):
Product/Service
(We Buy):
Address:
Number of Employees:

yarn,accessories,machine,spares
BGMEA Complex, 8th Floor, 23/1 Panthopath Link Road,
Kawran Bazar, Dhaka
Above 1000 People

Company Website URL:

Year Established: 1995
Legal
Representative/Business
Owner:

Chairman

Trade & Mark

Main Markets:

Main Customers:
Export Percentage:

NorthAmeric
SouthAmerica
EasternEurope
Western Europe
Tesco, George, R & J,
91% - 100%

Factory Information
Factory Location:
QA/QC:
No. of Production Lines:
No. of QC Staff:
Management
Certification:

Savar
In House
Above 10
91 - 100 People
ISO 9001:2000 Others

The objectives of saver group are to provide high quality service to its customers, to participate
in the growth and expansion of our national economy, to set high standards of integrity, to bring
total satisfaction to our buyer, shareholders and employees, and to become the most sought after

garment in the country, rendering technology driven innovative services by the dedicated team of
professionals.

Table : SAVER GROUP OBJECTIVES

Highly
quality
service
Customer-driven
focus
Total commitment
to quality
Outstanding
products

Contribute in the
economy
Quality of human
resources
Commitment to its
clients at each level

TO ASSIST IN BRINGING HIGH QUALITY SERVICE TO OUR CUSTOMERS AND TO PARTICIPATE IN THE
GROWTH AND EXPANSION OF OUR NATIONAL ECONOMY.

TO SET

HIGH STANDARDS OF INTEGRITY

AND BRING TOTAL SATISFACTION TO OUR CLIENTS, BUYER AND EMPLOYEES.

TO

BECOME THE

MOST SOUGHT AFTER GARMENT IN THE COUNTRY, RENDERING TECHNOLOGY DRIVEN INNOVATIVE
SERVICES BY OUR DEDICATED TEAM OF PROFESSIONALS.

Knit Garments Problem & Slove

Data Collection:
For the assessment, both primary and secondary data was collected. For this we interviewed 5
garments company through using a structured questionnaire. Personal interview technique was

applied while fill up the questionnaire on respondents. The sample garments companies who are
interviewed are given in a chart:

ResearchMethodology of the study:

Sources of type:Basically it is a descriptive research by nature. data:Both primary &
secondary data are used for this study, these By a Primary data: it includes the
following sources of data.are: Face to facequestionnaire through merchandiser and
floor in-charge. conversation with the top officials.

Primary data:
Objective of the The broad objective of this report is tostudy:Broad objective: identify
the current problems and prospects of SAVER GROUP LTD identify the current
problems of SAVER GROUP LTD Specific objectives: To find out the current position
of Bangladeshi SAVER GROUP LTD. garments industry in the To identify the growth
and trends ofworld. SAVER GROUP LTD

Secondary data:
I need much information for the report, which we get from secondary data.These are:
Annual report of ANNTO GROUP LTD. Different types of document of SAVER
GROUP LTD. Various published document from BGMEA. World wide web. Data
collection procedure: Questionnaire: Well structured questionnaire is used for primary
data collection. Population: Total population 24 including merchandiser & floor incharge.

Sampling frame: Name list of 247. merchandiser & Sampling method: Nonprobabilityfloor in-charge. convenience sampling methods are Sample size: 10 sample
size.used.

Name of the Garments Company

SAVER GROUP LTD.
AZMOT KNIT LTD.
ALAM FIBER IMPEX Ltd.
SAM GARMENTS LTD.
TOKIO MODEL LIMITED.
AMAN GROUP LTD.
MONDUL GROUP LTD.
RAHAN GARMENTS (PVT) LTD:
ANNANTO GROUP LTD.
MOHAMMEDI GROUP LTD.

Sampling plan:
Garments Company of Dhaka are constitutes as the study area, because of convenience of the
field work and easy communication. For the crisis condition of Bangladesh it was difficult for us
to collect data form more samples. Above it, we go for different garments company and the
company who intended to talk with us is taken as a sample. I tried to get rid of any kind of
personal biasness and taking true information.
Data analysis:
We analyzed the data by averaging the response of the sample. Most of the analysis and
discussions of this study have been made on the basis of the information obtained from the
interview with the questionnaires. Besides, observation of the interviewers has also been an
important component of analysis and discussion.
Scope of the Study:

This study has focused upon the various problems regarding with the garments company and the
prospect of these industries. We have taken 5 garments company to gather data on the present
situation of the garments industries as well as problem regarding and the future of the industries.
Limitations of the Report:
Since our study is based on both primary and secondary data, there is a possibility of getting fake
information. If the surveyed personnel provide us with any fabricated information about their
opinion of their organization, then the report findings may be erroneous. Above all, this study is
weak in some points. The notable ones are as under:

The survey was conducted in a very short time so we were not able to collect more
information.

This survey made on crisis situation of Bangladesh, so it was difficult to collect more
samples.

Only the big and the reputed Garments Company consider here as sample.

The questionnaire contains some questions that, if answered properly, might damage the
companys image. In this type of questions, the respondents might provide socially
acceptable answers. This risk was unavoidable.

Another limitation of this study is the persons private information were not disclosing
some, data and information for obvious reasons, which could be very much useful.

Lack of experience in this field.

Lack of proper authority to conduct the interview program.

Recommendation:
Bangladesh economy at present is more globally integrated than at any time in the past. The
MFA phase-out will lead to more efficient global realignments of the Garments and Clothing
industry. The phase out was expected to have negative impact on the economy of Bangladesh.
Recent data reveals that Bangladesh absorbed the shock successfully and indeed RMG exports
grew significantly both in FY06 and (especially) in FY07. Due to a number of steps taken by the
industry, Bangladesh still remains competitive in RMG exports even in this post phase-out
period.
Our Garments Industries can improve their position in the world map by reducing the overall
problems. Such as management labor conflict, proper management policy, efficiency of the
manager, maintainable time schedule for the product, proper strategic plan etc.

Government also have some responsibility to improve the situation by providing- proper policy
to protect the garments industries, solve the license problem, quickly loading facility in the port,
providing proper environment for the work, keep the industry free from all kind of political
problem and the biasness. Credit must be provided when the industry fall in need.
To be an upper position holder in the world Garments Sector there is no way except follow the
above recommendations. We hope by maintaining proper management and policy strategies our
country will take the apex position in future.

Analysis Technique & Report Writing:

At first, we went to different garments company and collect information from the personnel. In
preparing this report, we approached according to the following procedure:
The Bangladesh Garment Industry:
For Bangladesh, the readymade garment export industry has been the proverbial goose that lays
the golden eggs for over fifteen years now. The sector now dominates the modern economy in
export earnings, secondary impact and employment generated. The events in 1998 serve to
highlight the vulnerability of this industry to both internal and external shocks on the demand
and supply side. Given the dominance of the sector in the overall modern economy of
Bangladesh, this vulnerability should be a matter of some concern to the policymakers in
Bangladesh. Although in gross terms the sectors contributions to the countrys export earnings is
around 74 percent, in net terms the share would be much less partially because the backward
linkages in textile have been slow to develop. The dependence on a single sector, no matter how
resilient or sturdy that sector is, is a matter of policy concern. We believe the policymakers in
Bangladesh should work to reduce this dependence by moving quickly to develop the other
export industries using the lessons learned from the success of apparel exports. Support for the
apparel sector should not be reduced. In fact, another way to reduce the vulnerability is to
diversify the product and the market mix. It is heartening to observe that the knit products are
rapidly gaining share in overall garment exports as these products are sold in quota-free markets
and reflect the strength of Bangladeshi producers in the fully competitive global apparel markets.
Preliminary data and informal evidence indicate that this sector seems to have weathered the
devastating floods relatively well. The industry is one hundred percent export-oriented and
therefore insulated from domestic demand shocks; however, it remains vulnerable to domestic
supply shocks and the smooth functioning of the banking, transportation and other forward and
backward linkage sectors of the economy. The Dhaka-Chittagong road remains the main
transportation link connecting the production units, mostly situated in and around Dhaka and the
port in Chittagong, where the raw material and the finished products are shipped in and out.
Despite increased dependence on air transportation, trucks remain the main vehicles for
transporting raw materials and finished products for Bangladesh garment exports. The floods
disrupted the normal flow of traffic on this road.

Eventually, this road link was completely severed for several days when large sections of the
road went under water for a few weeks during the latter phase of the floods. This delinking of
the road connection between Dhaka and the port in Chittagong was as serious a threat as one can
imagine for the garment exporters. The industry responded by calling upon the Bangladesh navy
to help with trawlers and renting a plane from Thai Air that was used to directly fly garment
consiments from the Dhaka airport to the Chittagong airport several times a day.

Contribution of the RMG Industry :

RMG business started in the late 70s as a negligible non-traditional sector with a narrow export
base and by the year 1983 it emerged as a promising export earning sector; presently it
contributes around 75 percent of the total export earnings. Over the past one and half decade,
RMG export earnings have increased by more than 8 times with an exceptional growth rate of
16.5 percent per annum. In FY06, earnings reached about 8 billion USD, which was only less
than a billion USD in FY91. Excepting FY02, the industry registered significant positive growth
throughout this period

In terms of GDP, RMGs contribution is highly remarkable; it reaches 13 percent of GDP which
was only about 3 percent in FY91. This is a clear indication of the industrys contribution to the
overall economy. It also plays a pivotal role to promote the development of other key sectors of
the economy like banking, insurance, shipping, hotel, tourism, road transportation, railway
container services, etc.

A 1999 study found the industry supporting approximately USD 2.0 billion worth of economic
activities (Bhattacharya and Rahman), when the value of exports stood at a little over USD 4.0
billion.
One of the key advantages of the RMG industry is its cheap labor force, which provides a
competitive edge over its competitors. The sector has created jobs for about two million people
of which 70 percent are women who mostly come from rural areas. The sector opened up
employment opportunities for many more individuals through direct and indirect economic
activities, which eventually helps the countrys social development, woman empowerment and
poverty alleviation.
Exporting Condition of Garments Industry:
The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh
economy. It is the largest exporting industry in Bangladesh, which experienced phenomenal
growth during the last 20 years. By taking advantage of an insulated market under the provision
of Multi Fibre Agreement (MFA) of GATT, it attained a high profile in terms of foreign exchange
earnings, exports, industrialization and contribution to GDP within a short span of time. The
industry plays a key role in employment generation and in the provision of income to the poor.
Nearly two million workers are directly and more than ten million inhabitants are indirectly
associated with the industry. Over the past twenty years, the number of manufacturing units has
grown from 180 to over 3600. The sector has also played a significant role in the socio-economic
development of the country.
The Agreement on Textile and Clothing (ATC) introduced in 1994, aimed at bringing textiles
and clothing within the domain of WTO rules by abolishing all quotas by the end of 2004. It
provides an adjustment period of 10 years, so that countries affected by the MFA could take the
necessary steps to adjust to the new trading environment. Liberalization of trade following the
Uruguay Round agreement presents opportunities as well as challenges for a developing country
like Bangladesh in RMG sector. In the Post-Uruguay Round period, traditional instruments of
trade policy such as tariffs, quotas, and subsidies will become less feasible and less relevant. In a
liberalized trade regime, competition among textiles and clothing exporting countries is likely to
become intense. The objective of this paper is to identify the prospects of RMG industry after the
MFA phase out by analyzing the current scenario along with different policy measures and the
available options in order to be more competitive in the new regime.
The export made by Garments Industries of Bangladesh is improving year after year except some
of the year. Strike, layout, shutdown of company, political problem, economic problem, inflation
etc. are the prime cause of decreasing export in this important sector. But above it, Readymade
Garments Industries is the leading sector in export sector.
Year
1991 92
1992 93
1993 94
1994 95

Export (in US $ million)

624.16
866.82
1182.57
1445.02

Percentage change
32.49
38.88
36.43
22.19

1995 96
1996 97
1997 98
1998 99
1999 00
2000 01
2001 - 02
2002 03
2003 04
2004 05
2005 06

1555.79
2228.35
2547.13
3001.25
3781.94
4019.98
4349.41
4859.83
4583.75
4912.12
5686.09

7.67
43.47
14.11
17.83
26.01
6.29
8.19
11.74
5.68
7.21
15.83

Figure: Year Export by the garments industries (in US $ million)

Average Quota Prices of Selected Garments Items Exported by Bangladesh, 2006
Position of Bangladesh is exporting product in USA is not very satisfactory but this situation is
better than any other condition of the previous time. But if our Government take some essential
law and break out the wall of biasness then the position of Bangladesh in Garments sector would
be hope to better.
Findings:
From the survey we have found some tremendous information that help to build our practical
knowledge about the garments industry of our country. Through our survey we try to bring out
the present situation, problems and the prospects of these industries. In these aspects we divided
our finding into three main parts. First part contains the general information about the garments
industries of our country and the other second and third part contains the problems and the
prospects of these industries sequentially. These topics are discussed belowCompany profile
We take information from five leading garments company to identify the problem of this sector.
Short profile of the Company are given belowMillenium Garments Limited:
It is a manufacturing company, established in 1990. More than 1200 employees found their
working place in this organization. Different types of modern equipment in here to run the
production smoothly. Such as- 450 pcs of different type of cutting, sewing and finishing
machines supplied by mostly Singer and Brother. Its main market for exporting is European
Countries, USA. And the other customer groups are Ekinsa, Spain; Vesage, UK; Etam,
Singapore; Vetura, France; Amcobus, U.S.A; Miles, Germany; Star Wear, U.S.A. It is one of the
leading exports Garment Company of our country.

ANNANTO GROUP LTD:

It was founded in 1993. Rahan started manufacturing and exporting from 1995. Manufacturer
and exporter of all type of apparels, specialized in under garments, sportswear and knit & woven
garments. The total working area comprises of 29,000 square feet in one floor. Their plant and
office is located in the central part of the city. This give security and convenience for the
transportation of goods and all kinds of supports needed for daily production and financial
facility.
TOKIO MODEL LIMITED:
The company was established in 1990 as a Public Limited Company. The company authorized
capital was in US $ 12.7 Million. Its production capacity is 29,000 Doz/ Month Approx. Oven &
Knitwear Items. More than 750 employees participate here in the manufacturing activities. It is
another leading Garment Company of our country.
Fabrics & Commodities Exchange Ltds a well reputed Garments Exporters in Bangladesh.
Accordingly as a first step of their customer familiarization process, they would like to brief with
their business process and how this could be of any interest to their organization. Based
in Dhaka, Bangladesh they manufacture over 200,000 units a month including Knit, Woven and
Sweater. A highly qualified team of QA foresees the manufacturing process. Reliability and cost
effectiveness are on the utmost priority while we provide value added services to our vast
growing client list.
ALAM FIBER IMPEX LIMITED:
Alam Fiber Impex is one of the leading Exporter and Manufacturers agents in Bangladesh. It
was established in 1988. It basically works with the product of-RAWJUTE (JUTE FIBER) JUTE
YARN / JUTE TWINE JUTE CLOTH (HESSIAN / CBC) JUTE BAG / JUTE SACKS
HANDICRAFTS READY-MADE GARMENTS. They demand they offer reasonable price for
their products. There stay some motto with which Alam Fiber Impex willing to run- We maintain
quality properly, we never compromise with quality, Timely shipment is our business ethics, and
Customers satisfaction is our motto.
Problems Regarding With RMG:
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.
Low working salary is another vital fact which makes the labor conflict. Worker made strike,
layout to capture their demand. Some time bonus and the overtime salary are the important cause
of crisis. Insufficient government policy about this sector is a great problem in Garments
Company.

There are some other problems which are associated with this sector. Those are- lack of
marketing tactics, absence of easily on-hand middle management, a small number of
manufacturing methods, lack of training organizations for industrial workers, supervisors and
managers, autocratic approach of nearly all the investors, fewer process units for textiles and
garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit
complicated and loading/unloading takes much time, time-consuming custom clearance etc.

According to our survey in five leading Company we found some problem which are given in a
chart with their percentage-

Primary Problems
Problems

high

01.Raw-materials
3
2
0
5
60%
40%
100%

medium

low

total

02. Marketing problems

1
3
1
5
20%
60%
20%
100%

03. Machinery problem

5
0
0
5
100%
100%

04. Inefficient workforce

3
2

0
5
60%
40%
100%

05. Licensing problem

1
1
3
5
20%
20%
60%
100%

06. Quota problem

4
1
0
5
80%
20%

100%

07. Poor government policy

3
2
0
5
60%
40%
100%

08. Labor unrest/strike

5
0
0
5
100%
100%

Chart: Primary problems of Garments Industries

Graph: Primary problems of Garments Industries
Secondary problems
Problems

high

medium

low

total

01.Middle man affect

1
3
1
5
20%
60%
20%
100%

02. Sluggish business linkage

0
2
3
5
40%
60%
100%

03. Unloading(RM) takes time

2
2

1
5
40%
40%
20%
100%

04. Time consuming schedule

2
3
0
5
40%
60%
100%

05. Communication gap

1
2
2
5
20%
40%

40%
100%

06. Dependency on foreign market

5
0
0
5
100%
100%

07. Trade block

0
2
3
5
40%
60%
100%

08. Credit problem

2
3

0
5
40%
60%
100%

Chart: Secondary problems of Garments Industries

Graph: Secondary problems of Garments Industries
Safety Problems:
Safety need for the worker is mandatory to maintain in all the organization. But without the
facility of this necessary product a lot of accident is occur incurred every year in most of the
company. Some important cause of the accident are given below Routes are blocked by storage materials
Machine layout is often staggered
Lack of signage for escape route
No provision for emergency lighting
Doors, opening along escape routes, are not fire resistant.
Doors are not self-closing and often do not open along the direction of escape.
Adequate doors as well as adequate staircases are not provided to aid quick exit
Fire exit or emergency staircase lacks proper maintenance
Lack of proper exit route to reach the place of safety
Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air
Fire in a Bangladesh factory is likely to spread quickly because the principle of
compartmentalization is practiced
Lack of awareness among the workers and the owners

But now the situation is much improved and we found, all the surveyed garments are fulfilling
the requirement of emergency exit. It is provided in all the cases, signage is present and fire
fighting equipments are up to date, a departure from the past. Even fire drill is held once in a
month.
Fire safety in garments industry: Necessary Design matters:
.
Bangladesh Faces the Challenge of Globalization:
Bangladesh faces the challenge of achieving accelerated economic growth and alleviating the
massive poverty that afflicts nearly two-fifths of its 135 million people. To meet this challenge,
market-oriented liberalizing policy reforms were initiated in the mid-1980s and were pursued
much more vigorously in the 1990s. These reforms were particularly aimed at moving towards
an open economic regime and integrating with the global economy.
During the 1990s, notable progress was made in economic performance. Along with maintaining
economic stabilization with a significantly reduced and declining dependence on foreign aid, the
economy appeared to begin a transition from stabilization to growth. The average annual growth
in per capita income had steadily accelerated from about 1.6 per cent per annum in the first half
of the 1980s to 3.6 percent by the latter half of the 1990s. This improved performance owed itself
both to a slowdown in population growth and a sustained increase in the rate of GDP growth,
which averaged 5.2 percent annually during the second half of the 1990s. During this time,
progress in the human development indicators was even more impressive. Bangladesh was in
fact among the top performing countries in the 1990s, when measured by its improvement in the
Human Development Index (HDI) as estimated by the United Nations Development Project
(UNDP). In terms of the increase in the value of HDI between 1990 and 2001, Bangladesh is
surpassed only by China and Cape Verde.
While most low-income countries depend largely on the export of primary commodities,
Bangladesh has made the transition from being primarily a jute-exporting country to a garmentexporting one. This transition has been dictated by the countrys resource endowment,
characterized by extreme land scarcity and a very high population density, making economic
growth dependent on the export of labor-intensive manufactures.
In the wake of the 2001 global recession, Bangladeshs reliance on foreign countries as a market
for exports and as a source of remittances has become obvious. If Bangladesh is to become less
vulnerable to the economic fortunes of others, it will need to strengthen its domestic economy,
creating jobs and markets at home. A strong domestic sector and an improved overall investment
environment will provide a more stable source of income like what the garment industry has
provided so far and will rekindle and sustain Bangladeshs economic growth.

Prospects of the RMG Industry:

Despite many difficulties faced by the RMG industry over the past years, it continued to show its
robust performance and competitive strength. The resilience and bold trend in this MFA phaseout period partly reflects the imposition of safeguard quotas by US and similar restrictions by
EU administration on China up to 2008, which has been the largest supplier of textiles and
apparel to USA. Other factors like price competitiveness, enhanced GSP facility, market and
product diversification, cheap labor, increased backward integration, high level of investment,
and government support are among the key factors that helped the country to continue the
momentum in export earnings in the apparel sector. Some of these elements are reviewed below.
Market Diversification:
Bangladeshi RMG products are mainly destined to the US and EU. Back in 1996-97, Bangladesh
was the 7th and 5th largest apparel exporter to the USA and European Union respectively. The
industry was successful in exploring the opportunities in markets away from EU and US. In
FY07, a successful turnaround was observed in exports to third countries, which having a
negative growth in FY06 rose three-fold in FY07, which helped to record 23.1 percent overall
export growth in the RMG sector. It is anticipated that the trend of market diversification will
continue and this will help to maintain the growth momentum of export earnings. At the same
time a recent WTO review points out that Bangladesh has not been able to exploit fully the duty
free access to EU that it enjoys. While this is pointed out to be due to stringent rules of origin
(ROO) criteria, the relative stagnation in exports to EU requires further analysis.
Product Diversification:
The growth pattern of RMG exports can be categorized into two distinct phases. During the
initial phase it was the woven category, which contributed the most. Second phase is the
emergence of knitwear products that powered the recent double digit (year-on-year) growth
starting in FY04. In the globalized economy and ever-changing fashion world, product
diversification is the key to continuous business success. Starting with a few items, the
entrepreneurs of the RMG sector have also been able to diversify the product base ranging from
ordinary shirts, T-shirts, trousers, shorts, pajamas, ladies and childrens wear to sophisticated
high value items like quality suits, branded jeans, jackets, sweaters, embroidered wear etc. It is
clear that value addition accrues mostly in the designer items, and the sooner local entrepreneurs
can catch on to this trend the brighter be the RMG future.
Backward Integration:
RMG industry in Bangladesh has already proved itself to be a resilient industry and can be a
catalyst for further industrialization in the country. However, this vital industry still depends
heavily on imported fabrics. After the liberalization of the quota regime some of the major textile
suppliers Thailand, India, China, Hong Kong, Indonesia and Taiwan increased their own RMG
exports.

If Bangladesh wants to enjoy increased market access created by the global open market
economy it has no alternative but to produce textile items competitively at home through the
establishment of backward linkage with the RMG industry. To some extent the industry has
foreseen the need and has embarked on its own capacity building.
Flow of Investment :
It is plausible that domestic entrepreneurs alone may not be able to develop the textile industry
by establishing modern mills with adequate capacity to meet the growing RMG demand. It is
important to have significant flow of investment both in terms of finance and technology. Figure
3 indicates that the investment outlook in this sector is encouraging, although the uncertainties
before the MFA phase-out period caused a sluggish investment scenario. In part the momentum
in the post-MFA phase-out period is indicative of the efforts underway towards capacity building
through backward integration. This is evident in the pace of lending to the RMG sector and in the
rising import share of RMG related machinery. However further progress would be necessary to
improve and sustain competitiveness on a global scale.
Policy Regime of Government:
Government of Bangladesh has played an active role in designing policy support to the RMG
sector that includes back-to-back L/C, bonded warehouse, cash incentives, export credit
guarantee scheme, tax holiday and related facilities. At present government operates a cash
compensation scheme through which domestic suppliers to export-oriented RMG units receive a
cash payment equivalent to 5 percent of the net FOB value of exported garments. At the same
time, income tax rate for textile manufacturers were reduced to 15 percent from its earlier level
for the period up to June 30, 2008. The reduced tax rates and other facilities are likely to have a
positive impact on the RMG sector.
Infrastructural Impediments:
The existence of sound infrastructural facilities is a prerequisite for economic development. In
Bangladesh, continuing growth of the RMG sector is dependent on the development of a strong
backward linkage in order to reduce the lead time. However, other factors constraining
competitiveness of Bangladeshs RMG exports included the absence of adequate physical
infrastructure and utilities.
Labor Productivity:
The productive efficiency of labor is more important determinant for gaining comparative
advantage than the physical abundance of labor. In Bangladesh, the garment workers are mostly
women with little education and training. The employment of an uneven number of unskilled
labors by the garment factories results in low productivity and comparatively more expensive
apparels. Bangladesh labor productivity is known to be lower when it compared with of Sri
Lanka, South Korea and Hong Kong. Bangladesh must look for ways to improve the productivity
of its labor force if it wants to compete regionally if not globally. Because of cheap labor if our

country makes the labor productivity in the apex position, then we think the future of this sector
is highly optimistic.
Research and Training:
The country has no dedicated research institute related to the apparel sector. RMG is highly
fashion oriented and constant market research is necessary to become successful in the business.
BGMEA has already established an institute which offers bachelors degree in fashion designing
and BKMEA is planning on setting up a research and training institute. These and related
initiatives need encouragement possibly intermediated by donor-assisted technology and
knowledge transfer. A facilitating public sector role can be very relevant here.
Supportive Government Policy:
In contrast to the public sector-led import-substituting industrialization strategy pursued during
the first few years after independence, the industrialization philosophy of the government
changed rather dramatically from the late 1970s when the emphasis was on export-oriented
growth to be spearheaded by the private sector. Towards this end, various policy reforms were
implemented in the 1980s and 1990s. Some of these reformed policies contributed considerably
to the growth of the RMG industry in Bangladesh.
During the 1980s, a number of incentives were introduced to encourage export activities. Some
of them were new like the Bonded Warehouse Facility (BWF), while others like the Export
Performance License (XPL) Scheme
37 were already in operation and were improved upon. Also, rebates were given on import duties
and indirect taxes, there were tax reductions on export income, and export financing was
arranged. Under the XPL scheme, exporters of non-traditional products received import licenses
for specific products over and above their normal percentage allotment based on the f.o.b. value
of their exports. Under the Duty Drawback System, exporters of manufactured goods were
entitled to get refund of duties and taxes paid on imported inputs used in export production, and
also all excise duties paid on exported finished goods. For certain fast-moving items such as
RMG, a notional system of duty payments was adopted in 1982-83. Under this system, exporters
were exempted from paying duties and taxes on imports used in export production at the time of
importation, but were required to keep records of raw and 21packaging materials imported. The
duties and taxes payable on the imports were kept in a suspense account. Liabilities to pay the
amounts in suspense were removed on proof of exports.
The discussion in this section clearly points to the positive contribution made by policy reforms
to the growth of the RMG industry in Bangladesh. In particular, two policies the SBW facility
and the back-to-back L/C system- led to significant reduction in cost of producing garments and
enhanced competitiveness of Bangladeshs garments exports. It also allowed garment
manufacturers to earn more profit which, when necessary, could be used to overcome difficulties
arising from weak governance. Furthermore, poor governance, reflected in the leakage of dutyfree imported fabrics in the domestic market, paradoxically enough also helped the garment

manufacturers to earn extra profit and thereby enabled them to absorb the high cost of doing
businesses a fall out of bad governance.
Suggestions Regarding Fire Safety:
We need to remember that when there is a fire, the first thing one should do is to run away from
it. And this is what everyone does in such a situation. But the situation become dangerous and
tragic when the escape doorways and gates are found locked. Precautionary should need to be
adopted are given below:
Building should be constructed with fire resisting materials
Adequate exits and proper escape routes should be designed
Protection against fire and smoke should be ensured
Electrical wiring must be properly designed, installed and maintained
Escape routes should be lighted at all times, kept clear, be indicated by signs
Regular fire drills should be held
Doors should be protected and should open along the direction of escape
Doors should not open on the steps and sufficient space should be provided.
Smoke/Fire alarm systems must be installed
adequate number of extinguishers should be provided
Prior relationship with local Fire services should be established

CONCLUSION
We should all concentrate on using cotton and allied yarn in Knitting industry for value addition
for the economic upliftment of our country rather than selling raw materials like cotton and
cotton yarns as it is. Initiate more reforms and extend the TUF facility for another five years if it
really wishes Indian Knitting and Knit garment industry capture a major chunk in the
International Market and contribute to the major economic development of the country.
Government should reform its Labor Policy and make it industry friendly This would further
encourage the setting up of new units. Government should reduce the transaction costs from the
present 11% to 4% which is still higher than the international 2%. Government should refund
taxes, duties and subsidies on export production in time. Government should strive for a
uniform Taxation Policy for all States. This will help all round uniform development of all the
States of India and add considerably to the economic growth of India