emerging bangladesh-july-sept. 2013

July - Sept. 2013

The Business Magazine of the Bangladesh German Chamber of Commerce & Industry (BGCCI)

BangladeshEmerging

Pauline Tamesis

BANGLADESH

THE SECOND GENERATION IS HEREWHAT’S THEIR VISION & HOW THEY’LL MAKE IT HAPPEN

Exclusive Interview

Country Director, UNDP

Office in BangladeshrdHouse 27/E, (3 Floor)

Road-10, Banani,Dhaka 1213Phone: +880-2-98827-31Fax: +880-2-988-27-33Email : [email protected] : http://education.chandanamanagement.com

Chandana Management Education Placement (CMEP)

A Concern of CMEP Foundation

Office in USAChandana Management, Inc.566 NW 55TH TerreceBoca Raton, FL-33487, USA.Tel/Fax: +1-561-241-5247Mobile: +1-561-929-3925Email: [email protected]: http://www.chandanamanagement.com

An International Education Advising Center

CMEP ExtendsCMEP Extends

We Promote Education ThroughGerman Language & Culture

Heartiest Felicitations on the

Day of German Unity

06 From the Editor

08 Opening Remarks

The Second Generation is Here

10 BGCCI Events

BGCCI activities over the last

quarter

04 Person of Interest

Interview of Pauline Tamesis,

Country Director, UNDP

20 Business Wisdom

10 Things You Need to Know

About Supply Chain

Management

Emerging Bangladesh

Volume 1 Issue 3July/Sept. 2013The business magazine of the Bangladesh German Chamber of Commerce & Industry Emerging Bangladesh will be published four times p.a. by the Bangladesh German Chamber of Commerce & IndustryPublisherSakhawat Abu Khair on behalf of Bangladesh German Chamber of Commerce & Industry It is distributed free of charge to members and qualified non-members in Bangladesh and abroad.

Features & Advertisement

Tawhidur Rashid

Photography

Din Muhammad Shibly

Design & Layout

Linework

Printed at

Binimoy Printers Ltd.

As a part of BGCCI’s Branding

Bangladesh campaign, the

chamber wants to recognize

the top Business Leaders of

Bangladesh with an exclusive

book publication. If you would

like to recommend an

entrepreneur, businessman or

innovator, send us an email at

[email protected]

CONTENTS

Bangladesh German Chamber of Commerce & Industry

stGerman House, 1 Floor, House: 10/C,Road 90, Gulshan 2, Dhaka-1212, BangladeshTel +88 02 8826480, Fax +88 02 [email protected], www.bgcci.com,Www.eurochamber.bangladesh.com

*All opinions expressed in articles do not necessarily reflect the views of BGCCI

P 22

Special Interview

22 M A Jabbar, Managing Director, DBL Group

Honorable Minister for International Development of Norway Heikki Holmas visits DBL Group factory workers with Managing Director M A Jabbar

P 10

BGCCI Executive Committee 2012-2013

President

Sakhawat Abu Khair

Senior Vice President

David Hasanat

Treasurer

Olaf Handloegten

Executive Board Members

Bernd Hagen

Sakhawat Hossain

Shakhawat Hossain

Yesmin Ipphat

Amrita Islam

Omar Sadat

Farooq Siddiqui

Executive Director

Daniel Seidl

Chief Advisor

Saiful Islam

26 Members' News

Giz

EBL

Prime Insurance

BASF

Chemtrek

CMEP

56 Special Report: Bangladesh's Next Billion

Dollar Industries

Feature

66 'Tis the Season of Holiday-Making

On its 10 years anniversary, BGCCI extends deep gratitude to its Founder,

Presidents, Executive Directors and Executive Board Members.

Founder:

Mr. Sayed Jamaluddin HaiderPresidents:

Mr. Sayed Jamaluddin Haider

Dr. Peter E. Albrich (2001-2004)

Mr. Ruhul Amin (2004-2006)

Mr. Nasir A. Chowdhury (2006-2007)

Mr. Md. Saiful Islam (2007-2011)

Mr. Sakhawat Abu Khair (2012-Till Date)Executive Directors:

Mrs. Irmgard Hettich Sherchan (2007)

Mr. Syed Feroze Ahmed (2008)

Mr. Mir Muniruzzaman (2009)

Dipl. Oec. Daniel Seidl (2009-Till Date)

P 56

Bangladesh

Interviews of Second Generation Business People What’s Their Vision & How They’ll make It Happen

2.0

35 Cover Focus

FROM THE EDITOR

In our first issue (January-March, 2013) we did a special needed as the world economy due to various factors are

report called Bangladesh 2.0. In that issue, BGCCI changing its course abruptly and only those who can

presented a series of interviews of diverse opinion leaders envision how the future is going to be like will sustain in the

who contemplated how Bangladesh can step forward to long run. We have heard about their achievements and their

become a middle-income country by the next decade. We hopes for a better Bangladesh. We are encouraged and

had a series of outlooks that gave an exciting vision of believe that they are some of the true representatives of

future: the experts opined how to plot the trajectory of Bangladesh 2.0.

sustainable growth in different sectors.I am delighted that Emerging Bangladesh has interviewed

In this issue, BGCCI wanted to exchange views of Pauline Tamesis, the Country Director of United Nations

tomorrow with the young and energetic second generation Development Programme (UNDP). She has expressed many

of business people. Emerging Bangladesh asked them about words of hope and ambition regarding Bangladesh. In the

their vision and how they want to make a difference. This past, we have seen development sectors working hand in

endeavor also brought forth the ways of implementing hand with private sectors. UNDP’s participation in the

several ideas of good business. In the past, we have seen Second Global Social Responsibility Conference 2013 bore

how the first generation businesspeople have laid the testimony to that fact. Her interview will give our readers an

foundation of what Bangladesh has become today. The idea of how Bangladesh can reap the benefits of its

world is changing and so is Bangladesh. The new world emerging opportunities, vibrant civil society and

order poses bigger challenges to the new generation. The demographic dividend. She also mentioned about

technology, the know-how, the elements are there. It's a Bangladesh's achievement in Human Development index

good news that people whom we have featured have many and attaining a stunning position in the list of those

celebrated virtues of entrepreneurship like visions, countries who have achieved some of the important

leadership and organization cultures. Millennium Development Goals. As she clearly mentioned,

no one alone can set the country on a path of prosperity. The ten businesspeople we interviewed are sure to change

BGCCI will also work with people from both private and that notion about Bangladeshi entrepreneurship. Among

development sector to make Bangladesh shine on in days to them, a few have already taken over their patriarch's

come. Thank you.business; a few will soon; while a few have already set up

their own enterprises successfully. What does this tell us?

This gives us a notion that after pursuing an education

abroad, they came back to their roots with a sense of duty to

do something for their families and the country. They are Daniel Seidlsuccessfully implementing the best business practices they

Executive Director, BGCCIhave seen and learnt. They are open to suggestions and

adapt easily to changes. The latter attitude is very much

{Emerging Bangladesh} July - Sept. 201306

{Emerging Bangladesh} July-Sept. 201308

OPENING REMARKS

THE GENERATION IS HERE

SECOND

SAKHAWAT ABU KHAIRPRESIDENT, BGCCI

G

09{Emerging Bangladesh} bgcci.com

Globally, more than 72% of family-owned successors of businesses they own or are going

businesses (FOBs) do not survive beyond the to own. But what seems more important to me is:

third generation, suggested a recent study all of them are going to become great leaders in

conducted by Hay Group, an international course of time. All of them will definitely

consultancy firm. The research studied business emerge as good businesspersons. By which I

firms of India (unfortunately no Bangladeshi mean they know how to make profits in a smarter

firm was studied) and found out two thirds of way-with the aid of technological automation

these companies have no succession plans in and better handling of issues like wages and skill

place. It is interesting in a sense that it sheds development of workers and over all compliance

lights on the dilemmas the FOBs in Asia face as well as green business policies which will allow

where ‘ Confucianistic values like loyalty and filial them to give back to the environment and the

piety are deep-rooted’. The study discussed how community they operate in.

to find the right successor within the family. The

Hay group report also indicates: The first

generation builds, the second expands and the third

destroys. From this perspective, this issue of

Emerging Bangladesh deals with an enlightening

issue: interviews of a few second-generation

business people whose companies are proud

members of BGCCI, the biggest bilateral

business chamber in Bangladesh.

Ten young business talents from ten

distinguished companies have been featured in

this issue. Some of them started at the bottom

of the managerial pyramid and slowly and

successfully made it to the top. Two things are

important here. Number one: their predecessors

did not readily believe in the popular adage that

blood is thicker than water. They wanted their Last but not least, one good news appeared as a

successors to be honed and gain firsthand silver lining amid the clouds of bad news in the

experience of complex processes of readymade garments industry. A recent study by

manufacturing, sourcing, marketing, or consulting firm McKinsey & Co found that

distributing. Many of them were born with silver Bangladesh's 20 billion USD garment business

spoons in their mouths but while at work, they would surely outrival Vietnam and Cambodia in

traded sweat and time with position. The the ranking of countries with the highest

GenNext in our cover story was thus blessed potential for future sourcing. As Achim Berg, a

with proper training to be reckoned as partner in McKinsey's German office, and the

‘professionally driven’, not ‘promoter driven’. author of the study quotes, “Bangladesh is still

Number two: since all of these young business No. 1”, when it comes to outsourcing apparels in

talents knew that they would have to work their big volumes. The author, however, mentioned

way to the top, they sincerely learned and about challenges ahead of Bangladesh. At home,

observed and some of them are still learning. a National tripartite committee is formed with

This whole process of grooming made them participation from ILO-Government, workers

patient and taught them humility ; they are closer and employers. I firmly hope we manage to walk

to their workers and employees; they know how the talk this time: come to terms with effective

things happen or go awry at the bottom of the fire safety and building safety for workers,

pyramid - in a word, they are the time-tested without whom we can never spell success.

It is high time we measure the

proportion of Bangladesh Inc. sales by

our own FOBs. It is high time we

seriously study what first generation

owners think about succession. There

should be institutions coming up with

Management Programs to study the

conditions of FOBs in Bangladesh and

how to future-proof them by injecting

adequate amount of professionalism so

that the country does not have to face

something Hay Group Popularly calls,

‘the third generation curse’.

BGCCI EVENT

Bangladesh German

Chamber of Commerce & Industry

celebrated its 10 years Anniversary

Bangladesh German Chamber of Commerce & Industry (BGCCI) celebrated its 10th anniversary with a gala event on the evening of 14th June at the grand Ballroom of the Hotel Radisson Blu in Dhaka with 450 guests. The Chamber started its journey on the 9th June of 2003, and emerged as the biggest bilateral business chamber in the country with 450-plus members till date.

The guests present at the event were: H.E. William Hanna, Ambassador, Head of Delegation of the European Union to Bangladesh; Dr. Ralf Reusch, Charge d'Affaires, Embassy of the Federal Republic of Germany; Mr. Kazi Akram Uddin Ahmed,

President, FBCCI; Mr. Sayed Jamaluddin Haider, Founder and the First President of BGCCI; Mr. Md Saiful Islam, Chief Advisor, BGCCI, and Sakhawat Abu Khair, current President of BGCCI.

H.E. William Hanna made a call to the business community to harness the immense potential of Bangladesh to make further achievements and progress in the economy. He also put emphasis on the issues of compliance, rights of the labors, preservation of environment and ensuring quality of the businesses. He highly praised BGCCI for its roles and said, this is the one of its kind business chamber, which is most dynamic and effective.

Dr. Reusch made a nice presentation on BGCCI's activities in recent times.

Daniel Seidl, Executive Director of BGCCISakhawat Abu Khair, President of BGCCI

BGCCI Past Presidents and Executive Directors and current Executive board at the 10 years Anniversary event



Bangladesh German Chamber of Commerce & Industry (BGCCI) celebrated its 10th anniversary with a gala event on the evening of 14th June at the grand Ballroom of the Hotel Radisson Blu in Dhaka with 450 guests. The Chamber started its journey on the 9th June of 2003, and emerged as the biggest bilateral business chamber in the country with 450-plus members till date.

The guests present at the event were: H.E. William Hanna, Ambassador, Head of Delegation of the European Union to Bangladesh; Dr. Ralf Reusch, Charge d'Affaires, Embassy of the Federal Republic of Germany; Mr. Kazi Akram Uddin Ahmed, President, FBCCI; Mr. Sayed Jamaluddin Haider, Founder and the First President of BGCCI; Mr. Md Saiful Islam, Chief Advisor, BGCCI, and Sakhawat Abu Khair, current President of BGCCI.

H.E. William Hanna made a call to the business community to harness the immense potential of Bangladesh to make further achievements and progress in the economy. He also put emphasis on the issues of compliance, rights of the labors, preservation of environment and ensuring quality of the businesses. He highly praised BGCCI for its roles and said, this is the one of its kind business chamber, which is most dynamic and effective.

Dr. Reusch made a nice presentation on BGCCI's activities in recent times. According to him, BGCCI stands for Big, Glamorous, Competitive, Communicative, and International. He said, this chamber become the biggest bilateral chamber and has set unique examples by organizing events like Global Social responsibility conference and so on and being offering professional services.

The FBCCI president said, “Bangladesh and Germany have a wonderful bilateral trade relationship. In strengthening that relation BGCCI played a significant role.” He also praised the feat BGCCI achieved by dint of its professionalism and international approach and hoped in future the bilateral trade relationship will foster in future.

The founding president of BGCCI Sayed Jamaluddin Haider said, “We started the chamber with a view to bolstering the trade relationship between Bangladesh and Germany. Among many obstacles the chamber has reached this height.” Expressing his optimism, he said, “I believe the present leadership at the chamber will take it further heights of success.”

Mr. Sakhawat Abu Khair, president of the chamber congratulated the members on achieving this remarkable feat. In his speech, he mentioned about the necessity of doing good business, which is not only profitable but also compliant. He extended a special note of thanks all the former presidents and executive director as well as the executive board and members to make it possible tonight.

Daniel Seidl

Mr. Md. Saiful Islam, the current Chief Advisor and the Former President of the Chamber (2007-2011) said, “BGCCI is the only non-political chamber where we only concentrate on promoting bilateral trade and branding Bangladesh. That is the secret of BGCCI's success. It has achieved that credibility and brand value. That is why when McKinsey & Company (the most renowned consulting company in the world) decided to do the 1st ever independent study on Readymade garments study of Bangladesh they chose BGCCI.”

Mr. Daniel Seidl, Executive Director of the Chamber spoke at the event. He said, “We started the chamber with 43 paying

Dr. Reusch showed a video with regards from the foreign office in Germany.

The President congratulated Executive Director for his success and underlined that he is a real 'Brand

Ambassador' of Bangladesh.

Sayed Jamaluddin Haider, Founder President Saiful Islam, Chief Advisor and Former President (2007-2011), BGCCI

Dr. Ralf Reusch, Former Charge d'Affaires of German

Cake cutting ceremony

H.E. William Hana, Ambassador, European Union

Kazi Akram Uddin Ahmed, President, FBCCI Dirk Claus, Photo Editor (STERN)

Picture Impressions


Pauline PERSON OF INTEREST


The Country Director of United Nations D e v e l o p m e n t Programme (UNDP) speaks to Emerging Bangladesh about the country’s bright economic prospects, the development challenges of the coming decade, and t h e d e m o c r a t i c dividend it stands to reap by investing in its youth.

Tamesis


Dubbed a 'basket case' in the seventies, Bangladesh has over the years made some real progress. How can a developing country like Bangladesh unlock the door to greater prosperity?

Bangladesh has fully debunked this characterization. I mean this not merely in terms of its economic performance (annual growth has now reached a trend rate of 6 to 6.5% and the country is targeting middle income status), but crucially also, its human development outcomes. Analysis from UNDP's Human Development Report (HDR) in 2010, underlined that Bangladesh had been one of the world's greatest improves in the years since independence. Its Human Development Index doubled on the comparable 1980 value and it ranked 3rd in terms of the rate of improvement out of 95 countries. Its MDG record is equally impressive, meeting its poverty target ahead of time and showing exemplary performance on the health and educational goals. Within the most recent HDR for 2013, Bangladesh is further identified as exemplifying the rise of the global south.

There has been some debate on how this has been possible given the many and varied challenges. I am not of the school that believes it is the product of serendipity or some sort of fluke. Rather, for me, it has to do with the basic features and orientation of this society and country. Its economy is largely labor intensive and open, inequality is not ingrained; it has been remarkably progressive on gender issues; its peoples are outward looking and entrepreneurial; it has a vibrant civil society, and it is blessed with a commitment to social solidarity.

I am not pretending all is rosy in the garden, but continuing to perform in the way it has, is a good start. The missing ingredient that may be truly transformative, I believe, is in the governance arena. I mean this in both a democratic, and an administrative sense. Bangladesh needs to modernize its politics and expand democratic spaces, and develop a stronger, better quality state. Moreover, the old approach will not be well suited to tackling new challenges, not least the massive social and economic change which are taking place in the country. In addition, there are the very real threats posed by global climate change. Bangladesh is especially vulnerable to rising sea levels and more volatile weather patterns. Continued successful development is contingent on the way these particular issues are dealt with.

How can Bangladesh reap from its 'demographic dividend'?

Analysis from our colleagues at UNFPA, who work with the national Bureau of Statistics, show Bangladesh is reaching a replacement level of fertility and will soon complete its demographic transition. This is impressive for a country, which faced potentially explosive population growth. Successive governments in the 1970's and 1980's, which supported strong family planning efforts, should be commended for their farsightedness.

“Co

mp

lete

ove

rnig

ht

libe

raliz

atio

n p

ose

s m

an

y risks,

mo

st

no

tab

ly in

th

e a

rea o

f c

ap

ital m

ove

me

nts

an

d b

ala

nc

e o

f p

aym

en

ts in

sta

bili

ty.”

Q.


In addition, you are right the demographic dividend offers enormous opportunities in the coming two to three decades. In this period, the working (productive) population will swell. It is the right time for the country to make the leap to a modern and industrialized future. Central to this is the effective management of key processes. I mean areas like mass education, social protection, skills training, and healthcare, which secure a highly productive economy; but also the management of key problem topics: urbanization, rapid industrialization, rural-urban migration, and environmental regulation. Macroeconomic management, capital market reform and trade policy will also need ongoing attention if the full gains are to be realized.

It is believed that openness to trade can help the development of least developed countries. What's your take on that?

I agree very strongly that trade offers engine for accelerated growth and is therefore vital for socioeconomic transformation. Indeed, few countries that have transitioned from developing to developed status have all done so through an active engagement in global trade. However, these countries' experience, and I am thinking especially of the East Asian Tiger Economies, show that any opening-up must also be phased and accompanied by careful management and oversight.

Complete overnight liberalization poses many risks, most notably in the area of capital movements and balance of payments instability. Equally, lasting structural change in the economy is not well served by an unconsidered, rapid tearing down of trade barriers, without also building productive capacity. This means actively supporting higher value added supply, and specifically, industrialization. Yet I am also wary of being too prescriptive, countries have to find their own way, and avoid over-protection.

Prior to joining UNDP Bangladesh as

Country Director, Pauline Tamesis was the

Practice Team Leader for Democratic

Governance and Coordinator for Asia

Regional Governance Programme, UNDP

Regional Centre in Bangkok.

Pauline worked at UNDP Bureau for

Development Policy in New York as the

Democratic Governance Practice

Manager and earlier as the global Policy

Adviser on Anti-Corruption, Accountability,

and Transparency. Since 1999, she has

served on the Programme Advisory

Committee of the International Anti-

corruption Conference. Pauline has 15

years of international development and

financial management experience, with 13

years of diverse governance experience

in technical/policy advisory and

programme management, fund raising

and knowledge networking. Previous

assignments include UNDP Manila, where

she was a national officer.

“UNDP as an organization cannot win this battle alone. We need all partners working with us on the

twin fronts of climate change: both adaptation and mitigation. We are

therefore reaching out to organizations like BGCCI to involve

its private sector members more directly to help Bangladesh

identify and scale up win-win opportunities to combat climate

change.”


It seems to me that Bangladesh's cautious position of promoting sectors ; and this will ensure three objectives: economic growth; trade vigorously, while also retaining certain protections and environmental sustainability (by focusing on energy efficiency, maintaining capital account restrictions is the right approach in this mitigation etc.) and inclusive social development. For such sector wide context. I also want to underline that the internal economy is also NAMA implementation, we will be working with private sector, donor vital in securing prosperity, and especially in mediating the impacts partners, and the government together.of economic transformation, ensuring that outcomes are

What kind of assistance from UNDP can help Bangladesh equitable.overcome the challenges of climate change?

To implement the concept of Green Economy to ensure Climate change is the defining development challenge of our time. For sustainable growth, private sectors will need directions and Bangladesh, impacts of climate change are amplified by our specific incentives from development organizations like yours. What geographical situation - a low-lying deltaic country, funnel shaped role does UNDP intend to play in regards to this? How are coastline with one of the highest population densities in the world.you planning to ensure participation of the private sector of

Bangladesh? UNDP has a lot to offer the government, relevant policy makers, civil society, private sector, NGOs and most importantly the millions of UNDP has established a niche in the area of inclusive green Bangladeshi citizens who bear the brunt of impacts of climate change. economy in Bangladesh and besides the government, our main Historically Bangladesh had very little role in greenhouse gas emissions partner in this new frontier is of course the private sector. In fact, that exacerbate climate change; but the country is at the receiving end of we have been working with the private sector for several years now its impacts. The impacts are manifold and are felt in the form of more here in Bangladesh. This includes major companies in the intense and more frequent extreme events such as natural disasters like pharmaceutical sector; refrigeration and lighting sectors and cyclones, floods, drought etc. As I already said, there is a direct poverty-various companies involved in modern energy and renewable climate linkage; the poorest are most vulnerable to the challenges of energy end uses. More recently, our partnership has included climate change.reaching out to the brick industry one of largest stationery source

of GHG emissions in Bangladesh. Through these initiatives, we In the past decade, with UNDP's support, the country has moved are already promoting the replication of green jobs that are aggressively with innovative practices and solutions to adapt to climate environmentally sustainable and ensure decent labor conditions. change. In the global climate policy discourse, the country is signatory to

major international conventions and multilateral agreements As you may know, we are on the ground in 177 countries and concerning climate change mitigation and protection of the ozone layer. territories, this gives us an added advantage of bringing in global UNDP collaborates with the government to undertake necessary perspective and local insight to help this new concept of green reforms to implement these conventions and to catapult the economy become more robust and pragmatic in the context of interconnected issues of poverty, environment, and climate at the heart Bangladesh. Green Economy as a concept is still evolving I believe of every national planning process, documents, and guidelines.its inclusion as a theme in last year's Rio+20 Conference helped it

gain more traction. From UNDP, we are sensitizing the main Having said the above, do keep in mind, UNDP as an organization partners of Green Economy, bringing in latest thinking through cannot win this battle alone. We need all partners working with us on the establishment of high-level policy forums such as Green twin fronts of climate change: both adaptation and mitigation. We are Development Forum; reaching out to policy makers for the need therefore reaching out to organizations like BGCCI to involve its private “whole of government” approach. I think already there is enough sector members more directly to help Bangladesh identify and scale up sensitization here that Green Economy is much broader than a silo win-win opportunities to combat climate change. This way Bangladesh approach on environment only. Within the government, we are can achieve middle income country status but avoid the mistakes of working with and providing training to various Ministries e.g. dirty industrialization. This is very important for the sustainability of Ministries of Finance, Power and Energy, Planning Commission our planet and well being of our future generations. This inclusive and etc. equitable human development idea is at the core of UNDP's mandate.

The goal is ambitious but I believe it is doable and we are here to As I said, private sector is vital is all this. We are bringing coordinate and partner and provide the needed support to all the major government closer to private sector by supporting new global partners in this process.initiatives such as Nationally Appropriate Mitigation Actions

where massive private sector investment will be required in various

“The demographic dividend offers enormous opportunities in the coming two to three decades. In this period, the working (productive) population will swell. It is the right time for the country to make the

leap to a modern and industrialized future.”


Supply ChainUnderstanding the supply chain: This involves a conceptual understanding of what a supply chain is and its various issues. It also includes the factors while designing, planning or operating a supply chain besides tracing its historical background.

Business Wisdom

Achieving strategic fit and scope: It defines supply chain strategy and explains how creating a strategic fit between a company's competitive strategy and it's supply chain remains important to optimize the performance. This also includes the scope of expanding the strategic fit from one operation within a company to all stages of the supply chain.

Optimizing the supply chain drivers and metrics: The supply chain drivers and metrics which are significantly reshaping the way business is done in the contemporary hyper competitive environment across the globe and the concept of underlying philosophy of the supply chain must be adhered to gain the maximum out of it. Taking in consideration of the logistic and cross functional drivers and knowing how to use

Designing the supply chain network: Distribution refers to the steps taken to move and store products from one stage to another in a supply chain network. Identifying several potential options for distribution network and evaluating the strengths and weaknesses of each of them is of great importance. The main aim here remains to work out a logical framework to select the appropriate distribution network for a particular product,

Designing a global supply chain network as the business expands: Globalization has offered tremendous opportunities as well as increased risk in the development of supply chains. It is important to identify sources of risk in global supply chain, adopt risk mitigation strategy, evaluate network design decision under uncertainty and monitor the changes in global supply chain decisions.

1 2 3 4 5

A supply chain consists of all parties involved directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers, and even customers themselves. Within each organization, the supply chain



Determining the demand forecasting: Demand forecasts forms the basis of all supply chain planning and are essential for making supply chain decisions. This involves the use of historical demand information and its use to forecast future demand and understand how it affects the supply chain.

Aggregate planning: Aggregate planning is a procedure to determine ideal levels of capacity, production, subcontracting, inventory, stock outs and even pricing over a specific time period. This is essential to indentify the information required to produce an aggregate plan and outline the basic trade-offs to optimize the plan.

Inventory management: The role of inventory and its proper management is of very high importance in a supply chain. Determining the various levels and types of inventory and replenishment plans to obtain economy of scale are few of the essentials to be considered here.

Sourcing and revenue management: This ultimately becomes imperative as to maintain a sustainable supply chain. The key factor in a supply chain is to maximize the profit in the total chain. With efficient sourcing and well organized revenue management the supply chain success is well determined.

Use of IT and Green practices: The supply chain practices should be modified as the modern world observes changes in IT and promoting Green concepts to reduce impact on the environment. Adopting an efficient ERP module and best practices to promote green and eco friendly supply chain concept are creating worldwide awareness to sustain any business.

6 7 8 9 10

*Ref

: Su

pp

ly C

hai

n M

anag

emen

t by

Sun

il C

ho

pra

, Pet

er M

ein

dl a

nd

D.V

. Kar

la.

A supply chain consists of all parties involved directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers, and even customers themselves. Within each organization, the supply

Management

SPECIAL INTERVIEW

Conserving water and protecting the environment is more zero surface water contamination

important than ever these days. Can you tell us what makes · Innovative measures such as the use of magnetic devices for DBL special in this regard and how DBL is contributing its

water softening resulting in energy savings alongside part to protect the environment? conventional energy saving mechanisms

DBL Group considers the environment as one of its foremost · Use the concept of 3R (Reduce, Reuse, Recycle) for solid priorities and has incorporated environmental management into its

waste managementcore business model. Over the years, DBL has actively involved

itself with different stakeholders on environment sustainability · Bio Gas plant to generate gas from solid waste such as cow programs. This has helped the organization in increasing its

dungknowledge for environment sustainability. Accordingly, DBL has

been applying its knowledge in implementing environmental · Rain water harvestingsustainable program. Some of the programs in which DBL is

DBL Group complies with the required environmental legislations currently engaged are below: and codes and works closely with buyers and investors.

· Sustainable Water Use by H&MDBL Group has seen a massive expansion over the years,

being the preferred supplier of many major western retailers. · Sustainable Apparel Coalition (SAC) by PUMA & EspritWhat are the key factors for your business success?

· PaCT (Partnership for Cleaner Textiles) by IFCWe provide our buyers with good quality products and shorter lead

· ZDHC (Zero Discharge of Hazardous Chemicals) by H&M, times at competitive price. This helped us to gain confidence and PUMA, G-Star and C&A trust of our buyers, resulting in higher revenues for us. Returns

from business were strategically invested back into business by way · REACH (Registration, Evaluation, Authorization and of setting up state of the art backward linkage industries

Restriction of Chemicals) by G-Star comprising of spinning, fabric knitting, fabric dyeing and finishing

units. Additionally investment was also made in washing plant, all · Sustainability Program by PUMAover printing, garment screen printing and corrugated carton

factory. The plant and machineries are energy efficient and of high · EMAS Easy by GIZperformance and are imported from companies in Europe and

· CERES (Sustainability Performance Reporting System) by USA. These strong backward linkage industries helped us to have H&M in-house quality control and shorter lead time, thereby resulting in

further growth for us. · CP (Cleaner Production) by IFC

We had long term vision. From the very beginning of our journey · ESIP (Energy Saving Initiative Program) by H&M and GIZ we have been rigid with maintaining quality and on-time delivery.

We marched forward with a strong team spirit and commitment. DBL Group has formed a dedicated Energy Management Center We firmly believe that managing responsibility is managing success. which is responsible for overseeing the environmental issues. Some We are flexible and committed to our strategic partners and all of the initiatives taken by us are,stake holders.

· Use of highly efficient machineries reducing water and energy Workers’ compliance is a very important issue in Bangladesh.

consumptionHow does DBL ensure the safety, welfare and fair treatment

of its employees?· Eliminate leaks, minimize washing and rinsing operations, use

of water nozzle DBL Group has setup an internal audit compliance team which

report to the Board of Directors. The audit compliance team does · Treat all effluent through biological treatment plant, ensuring regular internal audits to ensure the safety, welfare and fair

“We firmly believe that managing responsibility is managing success.”

M A JabbarManaging Director, DBL Group


treatment of the employees. Any major

risk/violation found during the audit is

reported immediately to the Board of

Directors. The team with other

functional departmental mangers has

received training on OH&S, SA 8000,

WRAP, ISO 9000, ISO 14001

What is your future outlook on

Bangladesh's RMG sector in general

and DBL Group in particular?

We definitely see a bright future for

Bangladesh's garment sector provided all

stakeholders are committed. The

government should come up with

necessary infrastructure policy and

regulatory support.

As per Mckinsey & Company “With

about 15 billion USD in exports in 2010,

ready-made garments are the country's

most important industrial sector; they

represent 13% and more than 75% of

GDP and total exports, respectively.

McKinsey forecasts export-value growth

of 7 to 9% annually within the next ten

years, so the market will double by 2015

and nearly triple by 2020.”

We feel by the year 2025 garments export

from Bangladesh can reach 75 billion

USD and DBL Group will have a visible

contribution in the export earnings of

Bangladesh.

Winner Takes All A list of awards won by DBL group so far

L� DBL Group was awarded the 'Enterprise of the Year' at the 13th DHL-Dailystar

Bangladesh Business Awards 2012.

LL� Social & Environmental Excellence Awards 2012

D� DBL Group was awarded for 'Factory of the Year for Environmental

Sustainability' & 'Best Waste Management' under Environmental Compliance

category.

E� Honorable Mentions in 'Health & Safety' & 'Improvement of Working and Living

Conditions for the Workers' under Social Compliance category were also

received.

LLL� Standard Chartered-Financial Express CSR Award - 2010-11

LY� HSBC Export Excellence Award 2009

Y� CSR Award of BGMEA - 2008

YL� Highest Exporter Award of BGMEA 2005

YLL� Flamingo Fashions Ltd. as the 'Platinum Supplier' of H&M. Flamingo Fashions

Ltd. is the only 'Platinum Supplier' of H&M in Bangladesh for knit garments.

YLLL� 7KH\ �DUH�the only company in Bangladesh to have exported fabrics to Marks &

Spencer factory in Indonesia and we are the sole supplier of fabrics to the factories

in Dhaka, EPZ, manufacturing for Marks & Spencer.

L[ � Mr. Jabbar was invited by the Norwegian Ministry of Foreign Affairs to attend

the CSR Conference 2012 held in Oslo.

[ � Hamza Textiles Limited (a concern of DBL Group) received acknowledgement

certificate from Financial Times/IFC Sustainable Finance Awards 2013 in the

'Sustainable Investment of the Year' category.

DBL Group won The Bangladesh Business Award 2012 under Enterprise of the Year category. Vice Chairman of DBL Group, M A Rahim received the award from Honorable Minister of Finance A M A Muhit


P

MEMBERS

PSES (Promotion of Social and to export their products (but need targeted Environmental Standards in the Industry), technical assistance to take the next step) a joint project of the governments of or wish to enter new markets. The content Bangladesh and Germany, implemented by of the workshop included elements on Deutsche how to improve access to loan and GesellschaftfürInternationaleZusammenar leverage export opportunities offered by beit(GIZ) GmbH, organized a two-day diaspora communities. A group of 45 capacity-building workshop sponsored by participants from different Bangladeshi International Trade Center (ITC), and international organization received Bangladesh German Chamber of this training, among them members of Commerce and Industry (BGCCI)and Chamber, Associations and officials of supported by European Union (EU) on ministries representing various sectors like “Researching and Analyzing Export garments, textile, electronics, IT, fisheries, Markets” from June 26-27, 2013 at the Jute, leather, pharmaceuticals and German House in Gulshan 2, Dhaka, footwear. The workshop was spread out Bangladesh. The aim of this workshop into two days: first day provided greater was to connect exporters with equity and knowledge and experience of the market debt financing sources and creating analysis and research process, using ITC's linkages between Bangladeshi exporters web-based tools such as Market Access and Diaspora communities. Map, Trade Map and more importantly,

the Standards Map. It also included a “It was most informative!”, “the most

presentation on identifying trade useful workshop I have attended in recent

opportunities provided by the diaspora economic benefits. The training was times, under the most hospitable and how to engage diaspora in broader conducted by Mathieu Lamolle who has environment!” and “Kudos to GIZ for context i.e. as entrepreneurs/investors; over 10 years of experience in organizing such a good workshop!” were capacity builders, ambassador/advocates international trade, market access and only a handful of the positive feedback etc. The second day focused more on the sustainable development issues. Lamolle received during and post the success that Standards Map, voluntary sustainability emphasized on the impact of the has been the ITC workshop this year, standards and their role in international European export market compared to the hosted by GIZ for the second consecutive trade. In the long run, this training has the rest of the world and said, “The EU time. This training workshop was potential to translate into tangible export nation countries contributed 55.13% developed to build capacity of firms or orders and other related firm-level towards the total export of Bangladesh, management positions that are interested

with Germany shouldering an impressive 15.45% on its own, compared to the US, which contributed 19.3% based on ITC Trade Map data end of fiscal year 2012.” The graph extracted from the ITC Trade Map here encapsulates the statistics for the fiscal year ending 2012:- Mr. Lamolle, having already trained contemporaries earlier in 2012 from similar organizations and background, comfortably blended with the participants and was seen to be able to create an interactive session on both days, full of information and knowledge sharing.

Promita Sengupta, the acting Country Director for GIZ, in her introductory speech, had motivated the participants by encouraging everyone to work closely

“The EU nation countries contributed 55.13%

towards the total export of Bangladesh, with Germany shouldering an impressive

15.45% on its own, compared to the US, which

contributed 19.3% based on ITC Trade Map data end of

fiscal year 2012.”

GIZ organizes

“Export Market based Workshop”

with ITC


together, especially in a developing build a bridge between the local and noted in his speech, “Bangladesh is an country like Bangladesh, which almost overseas markets.” Seidl also commented, emerging market with an interesting completely relies on its export. The chief “BGCCI is the biggest bilateral business growth rate of 6% and a population of guest, the European Union's Ambassador chamber in Bangladesh and our goal is to 164 million, of which 52% is under 25! A to Bangladesh, H.E. William Hannah also promote trade between Bangladesh, lot of countries have already been highlighted in his keynote speech how the Germany and the rest of Europe. It also sourcing from here but the ball game has potentials for exports of non-textile plays a vital role in branding this country, now changed. The parties requesting industrial products with a very liberal through the Branding Bangladesh orders are no longer dictating the terms originating rule still remain untapped. campaign, and engages with European and the compliant factories are over

press to challenge negative perceptions booked. The question arises on how we Echoing such thoughts, Daniel Seidl,

and encourage balanced reporting, on the can build trust first here in Bangladesh Executive Director of BGCCI and also a

image of Bangladesh overseas.” He also (for overseas buyers) and guest speaker at the inaugural ceremony,

wished the workshop and its participants all the success in their individual endeavors and hoped that collectively this nation can reach greater heights.

The closing ceremony also took place at the German House at the end of the second day workshop on the 27th June, where certificates were awarded to the participants by Elke Shrestha, the acting Program Coordinator for PSES. This workshop was organized by GIZ for the second consecutive year in collaboration with ITC and there are plans to conduct more such trainings in 2014 and 2015. The total workshop was facilitated by Noushin Safinaz, Senior Advisor (PSES, GIZ) and the PSES PR team.


From the left, Daniel Seidl, BGCCI; William Hannah, EU; Promita Sengupta, GIZ; Elke Shrestha, GIZ and Mathieu Lamolle, ITC.

MEMBERS

114.49 million USD for Biman Bangladesh Airlines Ltd. to finance Pre orking closely with national carrier and local private Delivery Payment (PDP) to Boeing for purchase of two brand new airlines for over a decade EBL has become W Boeing B777-300 ER aircrafts. EBL won the milestone deal competing synonymous with aviation financing in Bangladesh.with global banks for its innovative solutions.

With innovative and tailor-made financial solutions, Eastern Bank Biman has a 1.3 billion USD agreement with Boeing for purchase of 10 Limited (EBL) has curved a niche for itself in aviation financing in new aircrafts. Of which, the successful deal for first two 777-300 ER Bangladesh. Over the past one decade excellent track record, paved the way for subsequent purchases.special products, and the ability to innovate and keep pace with the

fast changing world have made EBL the undisputable market These first two 777-300 ER aircrafts are already in Biman's fleet since

leader in aircraft financing in the country. From financing Boeing 2012. Eight other aircrafts will be purchased by 2020. They are two

purchase for national flag carrier to financing private sector B777-300ERs, four B787 Dreamliners and two B737-800s.

airlines to helicopter import, EBL has made its mark in almost all

areas of aviation industry. As an undisputed leader in the field, EBL in 2010 was the first local bank

to act as the lead arranger for raising BDT 980 million for Regent “We believe in specialization. For us each customer is unique and

Airways, one of the successful airlines in domestic operations in we offer tailor-made products for them. Our milestone deal of

Bangladesh. Regent Airways purchased two 50-seater DASH 8 Q300s. 114.49 million USD Biman for purchase of two 777-300 ER

aircrafts from Boeing, BDT 980 million syndicated loan for

Regent Airways and 65 million USD loan for Biman do tell a tale of

consistence excellence and our commitment to contribute to the

development of aviation industry,” says Managing Director and

CEO of EBL Ali Reza Iftekhar with aplomb.

According to official statistics about 8.5 million Bangladeshis are

living and working abroad contributing to the growth of passenger

movements. Because of business growth Bangladeshis are also

traveling to international destinations in great numbers. While the

aggregate global growth in passenger carrier is about 6% in the

past few years, Bangladesh has registered an average 8% growth in

the last three years. In cargo sector, the growth figure is

phenomenal at 13 % while global average is 7%. This suggests that

there are plenty of growth opportunities in aviation industry in

Bangladesh.

EBL's strong footprint in aviation owes much to its rich deep

understanding of the industry and product range, which includes

working capital finance, pre-delivery payment financing,

syndicated long term commercial loan, syndicated project finance,

structured LC and trade finance for aircraft/helicopter import.

EBL played a catalytic role in the coming of age of the country's

private sector and helped the industry take off the ground.

Apart from working with pride and confidence with the national

carrier Biman, EBL's expertise in aviation financing proved critical

in making the Regent Airways, Novo Air Ltd, South Asian Airlines

Ltd, and Meghna Aviation Ltd ventures successful.

“The success of EBL lies in its ethos and passion to perform and

delivery,” says Iftekhar and elaborates, “We are precise,

transparent, and innovative. We understand issues in depth. This is

why we keep things simple and clear.”

EBL is working closely with local corporates for helicopter import

and financing.

In aviation financing history of Bangladesh EBL is the first local

bank to lead and arrange a syndicated USD Term Loan facility of

EBL Soaring High

in Aviation Financing


“We believe in holistic approach, our card products and services are also

designed to complement the growth of aviation industry. We have

recently introduced Airmile Reward Program - EBL SkyMiles. A first in

Bangladesh,” says Iftekhar.

“Our existing and new EBL Visa Platinum, Visa Signature and Visa

Infinite Credit Cardholders can now earn Skymiles for every 60 taka or

1 dollar retail spending. The accumulated Skymiles can be redeemed for

air tickets, absolutely free, for any destination and over 360 Airlines

worldwide.”

“Along with this Reward Program we have also launched three Skymile

branded credit cards with Visa Infinite Card.”

EBL as the first bank in Bangladesh has tied up with agoda.com making

it easier for the customers to make their hotel bookings online. It is an

Online Travel Agency (OTA) that specializes in hotel booking. EBL

Cardholders will get up to 7% off over already lowest agoda.com rates.

Agoda.com is a platform through which EBL cardholders can choose

from over 2,85,000 hotels.In 2012, EBL took the bold initiative to financed 9.75 million

EBL with its skills and knowledge about aviation financing has not only USD to purchase of two Embraer ERJ-145 aircrafts for Novo Air, set new industry standards but continue to build on its experience to which entered the domestic skies in January 2013. add value to the growth of aviation industry in Bangladesh.

Currently, EBL is working as the advisor and arranger to Regent EBL is also helping the local airlines to spread their wings to regional Airways for facilitating delivery of two 737-700 aircrafts and skies. arrange required financing. Regent Airways is taking lease of two

Boeing 737-700 aircrafts from International Lease Finance Talking about the motto of the bank, Iftekhar says in a confident note,

Corporation (ILFC), USA. Regent is also taking dry lease of a “winning for today is building for tomorrow.” He concludes by adding

brand new Havilland aircraft from Cavu Management LLC, that, “with our expertise in aircraft financing and prudent banking

Florida. This DHC-6-400 aircraft manufactured by Viking Air, solutions, we are now ready to cater to the needs of international

Canada has option of landing and takeoff in water. This aircraft clients.”

will serve Chevron Bangladesh Ltd for their gas project in Bibiana,

Sylhet.


“The success of EBL

lies in its ethos and passion

to perform and delivery.”Ali Reza Iftekhar

Managing Director and CEO of EBL

As an undisputed leader in the

field, EBL in 2010 was the first

local bank to act as the lead

arranger for raising BDT 980m

for Regent Airways, one of the

successful airlines in domestic

operations in Bangladesh.

MEMBERS

Prime Insurance Company Limited has signed an MoU with Shirazie, Director & Head of Transaction Banking of Standard

Standard Chartered Bank Limited to set up a smooth banking Chartered Bank signed the agreement on behalf of their respective

transaction for its employees, client and stakeholders. organization.

In this connection, a Memorandum of Understanding was The Chairman of Prime Insurance Company Ferdous Amin expressed

signed between Prime Insurance Company and Standard that by this agreement both of the two companies will be benefitted as

Chartered Bank Ltd on Cash Management Solution to provide well as the MoU will definitely give some new insights for shaping up the

payroll solution to the employees of Prime Insurance and Cash financial strategies of Prime Insurance.

Management solutions that will enable Prime Insurance to The Board of Directors and top Executives of Prime Insurance

manage their transactional cash flows and provide prompt Company and Standard Chartered Banks, Managing Director of

services to their valued clients on Wednesday of August 21 at the Different banks and Valued Corporate Clients of Prime Insurance,

Ball room of The Westin Dhaka. Md. Ezhar Hossain, Managing President of different Chambers were also present at the occasion.

Director of Prime Insurance Company Limited and Hussain

Md Ezhar Hossain, Managing Director of Prime Insurance Company Ltd and Hussain Shirazie, Director & Head of Transaction Banking of Standard Chartered Bank

exchange documents after signing an agreement recently.

Prime Insurance signedan MoU with Standard Chartered Bank on Cash Management Solution


MEMBERS

To celebrate the launch of the new brand, the EB team at BASF thanks to MasterGlenium which is given robustness and self-leveling

Bangladesh and Regional Business Unit (RBU) head Mark Volmer properties by MasterMix. Smart Dynamic Concrete is durable, easy

had invited their guests to an event at a five star hotel in the capital, to apply, saves time and money and has a low environmental

Dhaka on July 4. Some 165 architects, designers, building owners, footprint properties Bangladesh's construction sector embraces as

constructors, concrete and cement producers and engineers followed well: Speed and stability are trump cards here, too, and the sector has

the invitation and were greeted by Fahima Shahadat, Business grown by about 15% in previous years, mainly through residential

Manager and Master Builder Solutions project leader in Bangladesh. and office construction in Dhaka and numerous transport

infrastructure projects throughout the country. Finally Charles C. The official launch of Master Builders Solutions was an unveiling,

Jones, Marketing Manager, EB India, explained the benefits of literally: After a laser show complete with theater fog on the stage, the

plasticizers of the Polyheed 8900 series.curtain lifted and revealed the new brand and logo while confetti was

raining down. The event was rounded out by the expert opinion of two prominent

representatives from the country's construction sector: Professor M. The dramatic moment was framed by an abundance of information:

Shamim Z. Bosunia, President of the Institute of Engineers, First, N. Janakiram Raju, head of BASF Bangladesh, introduced

Bangladesh and Professor Jamilur Reza Chowdhury, Vice Chancellor BASF in his presentation:“We create chemistry”. Following this,

of the University of Asia Pacific in Dhaka, reported on their utterly Mark Volmer head of the RBU Construction Chemicals, Asia Pacific,

positive experiences from 20 years of working with construction provided an introduction to the new brand, its background and its

chemicals, and said they were convinced that the new brand would benefits for the customer. After the unveiling the focus shifted to

bring substantial benefits both for Bangladesh's construction sector specific technologies: Upen Patel, Business Director, EB India,

and for BASF. presented smart dynamic concrete a particularly flowable concrete

BASF Bangladesh launches

Master Builders Solutions

{Emerging Bangladesh} July - Sept. 2013 31

MEMBERS

Chemtrek is the first and only manufacturer of the Cationic Prill used for the import.

Softener in the country. Bangladesh can now be considered as the A BGCCI Gold Member, Chemtrek has started the manufacturing

fifth country manufacturing this product in Asia. and sales of EUROSOFT since November, 2012. It is now

Recently in a Chemtrek launched the much anticipated textile regularly used by many textile industries and Garment Wash Plants

essential through a Meet-the-Press organized in a five star Hotel in in the country.

Dhaka. Husna Mansur, Chairman; Abul Mansur, Vice Chairman; Chemtrek ensures high quality and offers competitive pricing that

Ainul Azim, Managing Director and Faisal Mansur, CEO of makes EUROSOFT a cost effective product and money saver for

Chemtrek were present at the event. Daniel Seidl, Executive the industry. While the product is receiving wide acceptance in the

Director of BGCCI also spoke at the event.country, it is also being regularly exported to Srilanka. Currently

The technology transfer was done by a group of German and negotiations are underway for export of EUROSOFT to the users

American Scientists. Cationic Softener is a very essential chemical in India and Pakistan.

for textile and Garments wet processing. It imparts excellent It may be mentioned here that Chemtrek's sister company

softening and lubricity to fabric and protect it from mold. Chemtrek Consumers Ltd. is the manufacturer of the following

Over 30,000 tons is imported every year from Taiwan, Germany, brands that are marketed globally: Kelly's and Turbo: Home care

China and Korea. Therefore, EUROSOFT has a great potential product; His & Her: Hair and Body care products.

for import replacement that will save the valuable foreign currency

Chemtrek launched

EUROSOFT Cationic Prill Softener


MEMBERS

It is our pleasure to apprise you all that CMEP has currently become potential in many a field. So, through this online German language the active Gold member of BGCCI. As many of you already know course, we are procuring many students who intend to give their best that CMEP is an international education advising center in to prove their worth. Bangladesh that has been promoting German education through

One more thing our German language Institute virtually offers the German language Institute (located in Germany) since its inception.

students is 9-month course to learn the language, which is called Our pivotal purpose is to encourage the students to learn German

“German Intensive Course- DSH Preparation.” And this 9-month language to study in Germany, where the medium of instruction at

German language course is not so sufficient as to meet the tertiary level is German. Therefore, their prior knowledge of the

requirement of the program; but if the students can acquire some language will, certainly, help them to be acquainted with the system

prior knowledge by completing A1 level in German language under quickly and get hold of the ins and outs of the technologically and

CMEP in Bangladesh, then they are on the right track to complete the globally advanced German education. This language will help our

rest of the 9-month course in Germany smoothly and effectively.students communicate with people at ease as well as visit various

places such as educational institutions, research institutes, cultural On top of that, language is not a factor; rather a formulation; and this centers, museums, and the like. formulation cannot be changed. Thus, German language, as a

medium of instruction, to study in Germany will not affect our With this view in mind, very recently, CMEP has launched a new hi-

students.tech method to introduce Bangladeshi students to German language

through online, which is provided by our language partner After all, the benefits our students will cash in on by learning German "Sprachcaffe". Our students are getting in touch with native German language through online dissemination are as follows:teachers, at least visually, through this distance-learning program.

1. Get affection and love with this languageThey are the well-experienced educators of German language who

2. Get involved with the culture of host languageare immensely capable of speaking German with accurate

3. Know more about German education and its challengepronunciation in native accents. We are using high-tech equipments

like multimedia projectors, quality white screens, and other Not knowing German language, sometimes our students face accompanying IT tools ensuring the quality projection of classes problems when they arrive in Germany, especially communicating through video conferences in an atmosphere in which you will feel with people both outside and inside the academia. Sometimes like attending your class in the native country. students finding difficulties in learning German will, for sure, feel

enthusiastic and eager to learn German language under the This is the first time implementation of online German language

innovative technique and dynamic leadership of the native educators course offered by CMEP in Bangladesh for our students who have

born in Germany.made up their minds to accomplish their study in Germany. That is, it

is an authentic process and means to sort out the genuine and

competent candidates through various tests, which will,

understandably, make huge contributions in the field of their interest

and expertise. Certainly, these practices and trainings make their

adaption to German culture smoother and easier. As they will be

quite ahead of the other students in terms of their acquisition of the

language, they will naturally tend to adapt to norms and mores of

German culture. Let's look at feasibility of the matter in relation to

its applicability and utility.

To commence with, online German language course programs

provided by German Language Institute " Sprachcaffe" under the

auspice of the European Language Framework, which is used to

maintain quality control. It would be apposite to mention here that

this package of German language is comprised of six levels which

are: A1, A2, B1, B2, C1 & C2 respectively. So, our focus is to

introduce Bangladeshi students to acquire the minimum knowledge

of German language which belongs to A1 level. This course, we are

providing for students, is equally divided into two partsone being

A1.1 (6 weeks = 48 units) and the other A1.2 ( 6 weeks= 48 units).

Moreover, the books and curriculum we are following here are same

as those followed by the Goethe Institut. Hence it proves beyond

doubt that students will complete this A1 level course with 96 units

that will form a strong foundation to cope with the rest of courses to

follow in Germany

As we mentioned earlier, language is related with education, tradition,

and culture-the acquaintance of which helps the students to come

with flying color in the end. With great sincerity and integrity, CMEP

is always searching for some genuine and competent students, who

will be genuinely keen on studying in Germany to prove their

Learn German Online with CMEP


35

COVER FOCUS BANGLADESH 2.0

One of the most memorable quotations in literature is attributed to George R R Martin's character Tywin Lannister: “All of us will soon be dead and rotting underground. It's the family name that lives on. It's all that lives on. Not your personal glory, not your honor... but family.” These words are a striking way to remind us that we all leave a legacy, and what we pass on is what will eventually matter in the pages of history. Family matters. It is what we have been taught ever since childhood, and it is what we shall remember when our time ends our family, and what we did with it. Ensuring a solid legacy has been for many people an obsessive dream and an ambition that they will go to all ends to fulfill. The family name commands respect, it brings recognition, and it adds credibility. “We could establish a dynasty that would last a thousand years... or we could collapse into nothing,” the Lannister patriarch further adds. One of the most fail proof ways of establishing a family name, and in turn, a dynasty, is to plant a family owned business in the bed of sustainable success. For Tywin Lannister there was no choice but to continue the legacy his ancestors had left, better it, and plan for its future so that House Lannister remained the most powerful family in his world. It was a burning ambition and he went to all ends to maintain it. Matriarchs and patriarchs, who also act as heads of family owned businesses, covet the same goal. However, the matter of succession becomes an issue because our present society has empowered younger members to discover their own ambitions and encourages them to pursue them. What happens when the heir apparent suddenly decides that he or she wishes to pursue a career vastly removed from the jobs done in the family owned business? Who, then, shall take over? Is the line of succession to be ignored and the younger son of the third daughter to lead the business? Even if the younger members are sure in their minds that we will lead their forefathers' businesses, many of them still desire to pursue a foreign education that will better enable them to take charge. A global viewpoint makes working with locals smoother, they reason. Visiting international cities, attending leadership conferences, being used to a 'course method' approach to their learning, made them more aware and socially conscious. For most, the transition from 'international student' to “FOB heir” is a smooth process. Others, however, might feel out of touch with the local customs after experiencing the wider world, though most fall in the former category. They desire to make changes for the better while still preserving the family values. Some of them wish to digitalize the entire process, while still others change from a “one man army” to a “team”. A few people will enter into a managerial role and lead immediately, while others will work their way up they learn to follow in order to lead. Their own values, when coupled with those established by their predecessors, make the family owned business a force to be reckoned with. As you read on this issue's cover story, you will know about ten such business people who are taking their FOB or their own enterprises to a new height implementing individual visions and ideas. In fact, they are the true representatives of Bangladesh tomorrow.

Bangladesh 2.0:The Second Generation of Businesspeople

{Emerging Bangladesh} bgcci.com

BANGLADESH 2.0

While getting on to the 16th floor of the gigantic Dragon Tower buyers and due to pressure from buyers and other stakeholders the during lunchtime, you will see hordes of workers swarming out of working conditions will dramatically improve in the industry which the gates. You will see faces, of mostly young people and a bunch of will ultimately result in more orders coming into Bangladesh and men and women in their mid 20s, 30s and even 40s. All of them are definitely in the long run both the workers and owner would benefit off to enjoy their afternoon meal, reluctant and busy chatting with ,” he adds. Will the foreign buyers, many of which face fierce criticism one another. Even on the stairs, schools of women, giggling, at their home for seeing the cheapest form of labor around the world, whispering, or just silently coming down. Everyone is at an ease as if leave us? When asked, Sobhan reveals: the fact is all my buyers called they were in their own houses; or at least this building offers a up after the gruesome incidents and assured that they were not going palpable comforting effect in their body and soul. A really strong to leave me provided I took precautionary steps to ensure strict building that has enjoyed more than 20 summers ; a factory that compliance to their code of conduct. “The capacity is also the provides livelihood to around 4000 workers, the saga of Dragon reason,” he goes on to saying, “ no one can produce such huge Sweaters Ltd., a concern of Dragon Group which employs about volumes in such a short lead time; hence those who claim that 12000 workers in all of its units , is one of the biggest success stories Vietnam or Combodia or Myanmar is going to snatch away the of Bangladesh's knitwear industry. Bangladesh's share of the pie can swallow their own words.”

However, he expects that international buyers too will take us Atop of that building is the corporate office of the company. The

seriously by offering us better and fair price for our products, local workforce there too looks lazy at the lunch hour except one man,

companies, on the other hand, should not try to cut each other off by who was ready for the interview. Meet Mostafa Q Sobhan, the

offering lesser, and lesser prices; because such cut throat competition Managing Director of the eponymous sweater factory and spinning

can never do any good to the industry. “We must master the skills and mill and number of other companies ranging from IT , Insurance and

art of better negotiations; we need to make our planning perfect and to hospitality business. His office is managing the Shanghai Office

should immediately make sure that our labors are skilled enough to that is the sourcing hub of the company in Mainland China and the

ensure better productivity in an efficient way,” he asserts.UK office that is responsible for the marketing endeavors. The

company at present annually exports around 6 million pieces of Sobhan joined his father, Mostafa Golam Quddus' business after sweater to international brands like Primark, Awear, C& A, George, completing Graduation from Nottingham Trent University in the NEXT , WALMART etc. Surprisingly, the man at the helm of this UK. He started off at the floor level and didn't have the luxury to be successful enterprise seems rather down to earth, poised. Sobhan, promoted by his father; rather he managed his way to the top by who is also the Chairman of the Child Labor Standing Committee of having firsthand experience of how to make sweaters; how to market BGMEA faced his first questions in an eloquent manner: “It's true or distribute it. For the last three years, he is solely running the show. due to the recent incidents Bangladesh is facing an image crisis

Are you doing things differently than your father used to?among the international buyers but if you look closely several good

things are about to happen.” He sounds like those who can extract Sobhan answers with a smile. “During my father's stint, it was like a positivism from almost anything. “The companies which are already one-man army-everything was at his beck and call.” He has however compliant will keep the good job and can command good price from decentralized the whole management process. “I hire people who I

find are smarter than me and than train them properly; I want them to

own their jobs and have feeling for the company; this ensures that

they will take the right decision on right time to make the best use of

opportunities and constant follow up mechanism are also

implemented on them to oversee that work is going on at desired

speed,” Sobhan explains while sharing his recipes as a successful

manager with us.

Diversification is Sobhan's another forte. According to him, with 175

million dollar worth locally made software (of which 70% are

exported), Bangladesh IT-industry can easily fetch 1 billion US

dollar in export revenue within the next ten years. Which is why he set

off into IT-business: his exclusive agreement of MICSROSOFT

Partner IT academy in association with Microsoft will impart not

only IT-Training among the youth but eventually will foray into

software manufacturing and export. His another big venture is

“Diversifying our

portfolio will enable us

to grow in different

fields as the economy

grows up.”

Mostafa Q SobhanManaging Director, Dragon Group


in Bangladesh. She replies,“My children are very much aware of the importance

of productive work. That should be the main purpose of one's So what has been your achievement in SS Steel so far? “I am still

life.” At the end of our interview, Sarazeen rushes to another learning, every day,” she answers with a smile. According to her

meeting, almost like a force of nature. No matter how busy she is views, one can claim to have achieved something only if one can

with her career, she maintains that “parenting is a serious career double the wealth inherited. The local market has world-class steel

and a solemn responsibility.” Explaining physics to her twelve-year producers, unfortunately hindered by the severe lack of energy

old son and reading nursery rhymes to her three year-old daughter supply and infrastructure.

is also part of the job.

A mother of two, Sarazeen is an avid reader and is especially fond Her favorite parting quote is:

of black-and-white dramas. So, has it ever occurred that you were Money demands that you sell, not your weakness to men's stupidity, but your talent to their reason”-

Ayn Randin a dilemma to choose between your career and your children?


“Would you make an investment if I reduce your

inventory of scrap from 90 days to 45 days, so that your

working capital reduces to 50% with the current 18% cost

of funds?”

BANGLADESH 2.0

SAP is at the center of today's technology revolution, developing due to numerous potholes, she had her phone ringing innovations that not only help businesses run like never before, continuously. She is preoccupied with meeting clients from S.S. but also improve the lives of people everywhere. Solutions and working with S.S. Steel, an old family concern. A

dedicated fan of Ayn Rand's 57-year-old 1200-page novel 'Atlas As the market leader in enterprise application software for the last

Shrugged', Sarazeen believes that “...heroes are entrepreneurs, they 40 years, SAP helps companies of all sizes and industries run

trade values for values.”better. From back office to boardroom, warehouse to storefront,

desktop to mobile device SAP empowers people and A hardcore realist, Sarazeen believes there is no alternative to organizations to work together more efficiently and use business values, such as honesty, integrity, and productivity, claiming “there insight more effectively to stay ahead of the competition. SAP are no short cuts in life.” After studying Math and Physics in applications and services enable more than 248,500 customers to Georgetown University, Washington D.C., she returned to the operate profitably, adapt continuously, and grow sustainably. So family steel factory to assist her father, Bangladesh's darling why don't you and your company join the best-run companies as footballer Kazi Salahuddin. It was no cakewalk for her. She joined well? the company as a trainee and had firsthand experience in the scrap

yard and melt shop. A quick learner and hardworking by nature, it If you like to find out more about how to become a best-run

is only expected that SAP, Germany's Blue chip Company for company, this is where Sarazeen Kazi comes in. This admirably

renowned enterprise software solutions, roped her in, when they dynamic woman can assist you by transforming your business to

envisioned digging the gold mine in Bangladesh. Supported by take up the challenges of the present and the future.

partners like PriceWaterHouse Cooper and Ernst & Young,

Sarazeen wants SAP to become a household name. As the As we were having a bumpy car ride from Gulshan 1 to Gulshan 2,

Managing Director of SS Solutions, a Gold Partner of SAP, she

stated “Our goal is to make SAP accessible at an affordable price

with niche foreign and local resources. As SAP makes the world

'run better,' SS Solutions would like to be part of enabling

Bangladesh to 'run better.'”

Sarazeen continues: “I would like to share a story with you, which

prompted me to explain SAP standing on one foot. My father, a

businessman, once asked me to summarize ‘this SAP thing’ in a

few sentences. As it is, the Apple iPhone is already a huge

technology challenge for him. Life in his view is “all about your

foot on the ground, from the war, to the football field or to the

scrap yard of the steel mills.”

So, Sarazeen explained to him. “Would you make an investment if

I reduce your inventory of scrap from 90 days to 45 days, so that

your working capital reduces to 50% with the current 18% cost of

funds?” He stopped and listened. From then on, he never

questioned the value of SAP.

Sarazeen wants to make this investment offer to all the companies

As the market leader in

enterprise application

software for the last 40

years, SAP helps

companies of all sizes

and industries run

better.

Sarazeen Bratzler née KaziManaging Director, SS Solutions


setting up a four-star hotel in Dhaka; an MOU has already been USD from Canada of which mostly are finished products and

signed with Carlson Rezidor Hotel group (an American company agricultural products and services . But Canadian investors are

which also owns the Radisson and Country Inn & suites Brand ) . interested to venture into other fields, especially into agricultural

The Group is also major shareholder in a Rupali Insurance company products and textile manufacturing. CANCHAM is also working to

and just recently got approval for operating a new Life Insurance hold a Trade fair in February of 2014, followed by a food festival in

company in the country. So why trying so many different fields? mid-March of the same year and the Chamber is also planning to

Sobhan answers: the economy of Bangladesh is at its infancy at the hold a Showcase Fair in Toronto in the near future where local

moment. Diversifying our portfolio will enable us to grow in enterprises will display Bangladeshi products and services to the

different fields as the economy grows up. In future, one of his most Canadian Market.

ambitious projects is to set up a private EPZ with all modern Sobhan, a regular tennis player, sees more automation is due in

amenities that the foreign investors look for.coming days in the knitwear industry. “In next five to ten years, there

Sobhan is thankful that bilateral trade bodies like BGCCI are not will be installations of around 3000 Automatic hand flat knitting

only bringing FDIs but also branding Bangladesh in a very fruitful machines in our factory and this is going to take our productivity to a

way. Sobhan himself is one of the directors of Canada Bangladesh new level. With advancements of this stature, becoming something

Chamber of Commerce & Industry. He states that the export trade as big as China is definitely going to be a dream come true,” Sobhan

between two countries is around 1.1 billion USD of which majority beams with hope.

are garments products , and Bangladesh imports about 400 million


A really strong building that has enjoyed more than 20 summers ; a factory that provides

livelihood to around 4000 workers, the saga of Dragon Sweaters Ltd., a concern of Dragon

Group which employs about 12000 workers in all of its units , is one of the biggest success

stories of Bangladesh's knitwear industry.


BANGLADESH 2.0

Romo Rouf Chowdhury is a residential and commercial

Bangladeshi business magnate, projects. As Managing Director

investor, and philanthropist. He is of the Rangs Group he is leading

widely considered as one of the diversified business activity

most successful entrepreneurs of taking his businesses to new

his generation. As Managing heights every day. Conducting

Director of Rangs Group, one of business countrywide and

t h e l a r g e s t i n d u s t r i a l worldwide, driven by the passion

conglomerates of the country, to be the best, under his

with vested interest in industries leadership Rangs Group brings

that inc lude automobi les, trusted brands of around the

electronics, real estate, shipping, world within the reach of

pharmaceuticals, renewable ever yone in Bangladesh.

energy, servicing, media & Ment ionab l e b rands a re

publications, telecommunication, Mitsubishi, Toshiba, Suzuki (2

he constantly strives to implement wheelers), The Daily Shokaler

the practical initiatives required to Khobor, and the prestigious

achieve his vision guided by luxury brand from Germany,

relentless focus on values. In Mercedes-Benz among others.

doing this, he delivers operational Romo is a self-confident

excellence to meet commitments b u s i n e s s m a n i n s t a n t l y

to the community served. recognizable wherever he goes

Unconven t iona l th ink ing , but he still cares a lot about

imagination and straight talk are people. One of the reasons of

characteristic of his leadership his success is the way he treats

style. his staff and colleagues. His

Born in 1972, this young friendly disposition and belief in

entrepreneur graduated from the happiness of the people

Durham University, UK in Civil around him make him both a

Engineering. On returning from motivation and inspiration to

the UK in 1996, along with the people who work alongside

assuming responsibility in the him. When he is not wheeling

family's traditional automobile and dealing he can be found

business and he personally and c r u i s i n g t h e r i v e r s o f

passionately set up a real-estate Bangladesh sailing his boat or

business. Today Rangs Properties reading a book, Paulo Coelho

Limited is a market leader in the being a favorite author.

construction and sale of quality

His friendly

disposition and belief

in the happiness of the

people around him

make him both a

motivation and

inspiration to the

people who work

alongside him.

Romo Rouf ChowdhuryManaging Director, Rangs Group


As Managing Director of the Rangs Group he is leading diversified

business activity taking his businesses to new heights every day.

{Emerging Bangladesh} July-Sept. 201342

BANGLADESH 2.0

Amrita Islam's recent visit to a 4000-employee leather goods discipline and mindset towards work. Three workers were silently manufacturing plant on the outskirts of Ho Chi Minh City in using one cutting machine, which is impossible to imagine for a Vietnam was special for many reasons. She wanted to see how the Bangladeshi factory. You will surely find the latter engaged in factory produces world class leather goods for a popular North frequent chit-chats, which ultimately takes a toll on their timely American Brand which Amrita's own company Picard Bangladesh is delivery of work,' she explains. Not for the love of overtime they going to manufacture in a couple of months. receive with salary, it's just a relaxed attitude towards work among our

workers that she has observed during her five year tenure at Picard The most striking feature that Amrita found in the company in

Bangladesh Ltd.Vietnam was the cultural perception of work among the people she

encountered there. Everyone was attentive and engrossed in his or Picard Bangladesh Ltd. is the pioneer in leather goods manufacturing her own tasks, which shows how successfully they have drawn a line in Bangladesh. Previously the company was only exporting to between their work and leisure: they know how to complete a task on Germany, whereas now it has branched out to buyers in Singapore, time and then set off to the circle they belong to. 'It's not like they are Australia, and Italy. Famous brands like Tessere, Jane Shilton from more skilled than our Bangladeshi workers; they just have a different Singapore; Kitamura from Japan; Sportscraft, Wilson Accessories

and Barmah Hats from Australia are now outsourcing from Picard

Bangladesh. Amrita seems very happy when she mentions about the

Italian brand Max & Co. (under the Max Mara Group), for whom the

first shipment is going to be done by the end of last month.

Much of this credit goes to Amrita who joined her father Saiful

Islam's 18-years old company in 2008 as a Management Trainee. Fast

forward two years: she became the Head of Operations and Business

Development and in 2013, she became the Deputy Managing

Director of the company. Throughout her tenure, she focused on

one particular goal: to expand the export basket of Picard

Bangladesh. To be more specific: by 2020, she wants Picard

Bangladesh to be making 50% of its products for the Picard brand

and the rest half for renowned international brands; the proportion is

currently 70:30. She wants the world to see that like RMG,

Bangladesh too has the prowess to be number one outsourcing

destination of leather goods. And she has every reason to be this

much optimistic. The leather and leather goods industry exhibited

129% of growth in last couple of years here. Since leather goods

need a lot of handwork to be involved, Bangladesh's mettle in regards

to this is beyond any question. In addition, a la the RMG sector the

labor cost is easily affordable for many international buyers, whereas

China is moving away from traditional manufacturing as the labor

costs are increasing.

So, what's the biggest challenge for the leather goods manufacturing

So, what's the biggest

challenge for the leather

goods manufacturing

companies in

Bangladesh? When

asked, Amrita strongly

opined: the lack of right

person at the right

place.

Amrita IslamDeputy Managing Director, Picard Bangladesh Ltd.

companies in Bangladesh? When asked, Amrita strongly opined: the unified educated voice of workers is behind the eruptions of the

lack of right person at the right place. Her company closely works recent sporadic labor unrest. 'The workers need to be educated of

with University of Leather Technology and many a time, she finds what they really want. Rising the wage is not going to solve the

recruits from there lack in practical industrial training. 'The problem as that will put more pressures on their daily expenses-

theoretical curriculum at the university is excellent. However, the because, an increase in the wage will eventually lead to swell in price

students receive very little hands-on experience. It would be of every single commodity and service they have access to. 'It's a

beneficial for both the students and their future employers if they lose-all situation,' she states. So, what exactly should they asked for?

were able to receive industry experience in conjunction with theory. When asked, Amrita indicates to the needs of benefits like proper

Since the leather goods sector is relatively new in Bangladesh, it is gratuity and healthcare facility of workers. 'They should seek for all

also difficult to get experienced professional people ,' she adds. 'It's those fringe benefits that actually can bring a change in their quality

the people who make the real difference.' of lifestyle.'

Amrita, who is a graduate from the University of New South Wales, Bold and buoyant with a pragmatic vision, Amrita is hopeful that

Australia took Organization and Management studies in her Masters, the upcoming shift of her company to a new 8-storied factory

as she wanted to have important insights and better soft skills of premises will eventually make it more productive. We wish her all

being a manager, which her undergrad Majors like Economics and the best!

Accountancy 'couldn't provide'. Amrita thinks the absence of a


To be more specific: by 2020, she wants Picard Bangladesh to be making 50%

of its products for the mother brand Picard in Germany and the rest half for

renowned international brands; the proportion is currently 70:30.

BANGLADESH 2.0

The late 20th century witnessed the dawn of a new religion. This new congenial working environment. Beside all of required utilities and set of beliefs and practices breathed a new life in something that the about 0.71 million square feet of floor space for production, with modern world owes a lot to. That 'something' is nothing but 1864 sewing machines. “It has an ideal environment to produce industrialization, which has changed our lifestyle completely with about 120000 pieces of high quality and diverse types of knit many of its blessings or blemishes. Moreover, innovation is, take it or garments every day,” Robin pinpoints the capacity of the company.leave it, that new religion which changed how we perceive or practice

The company has given utmost priority to the issues regarding industrialization for personal to national gains; for making individual

workers interests, rights and working condition, and tried to establish wealth to building an entire economy. Robin Razon Sakhawat is a

sustainable control over the workforce by practicing an ideal human firm believer of this hypothesis and it is completely on par with the

relation model of management. “Governing the workers motto of his company, Robintex Group: destined for industrial

participation committees (WPC), for an instance, is a regular effort to innovation.

mitigate the grievances of the workers in a proper way,” he adds.With a mission to offer quality knit apparels in the world market,

Besides, the company has certainly proved its ability to apply Robintex Group, consisting of three sister concerns in its same

contingent polices that are compliant to government laws, premise, has been operating in the export oriented knit textile

appropriate to the workers demand, befitting to changing and present industries in Bangladesh. Starting with an initial investment about 3

socio-cultural circumstances. “We prioritize the welfare activities too. million USD, today, an aggregate investment of 95.55 million USD;

We believe we have made our working place a second home for the direct employment of 7500 people, and an export of about 65.11

workers and they truly feel it.”Robintex regularly trains its workers million USD in 2011-Robintex is a promise well-kept. “It's a promise

for safe chemical handling and firefighting. Evacuations drills are to innovate continuously and offer top most quality of products with

carried out on a regular schedule so that all of its people can keep the use of best practices,” Robin states. “For the worldwide

themselves trained and ready to respond to quick evacuation calls in customers, I would like to convey this simple message that as a

case of fire or other emergencies. Thru a well- structured workers Germany-Bangladesh joint venture, Robintex has successfully

participation committee (WPC), a mutual participatory approach is started its business journey by earning global partners faith and

practiced in Robintex. “Under its capacity, the top management continual export growth from the very inception of its

makes itself always available to hear the workers to mitigate their establishment.” Increasing by more than 27.50% every year for over

grievances in a proper way,” he adds.the last decade, Robintex exported apparel worth about 65.11million

USD in the year 2011 and about 36 million pieces of apparel worth Highlighting the certificates and awards is not all about to prove the about 82 million USD in 2012. company's position, rather, what it ensures the practice of quality

culture that help us get rid of objections from buyers internally and Giving correct value to the meaning of its slogan, Destined for Industrial

minimize likely problems. “What is more, we have consciously Innovation, Robintex is persistently putting our efforts to utilize

strategized our production procedures, in-house management and unique and innovative attempts which customers may realize from its

quality leadership that benefit worldwide appeal traders and adoption of top brand machineries, mastering technologies and

consumers by maintaining delivery schedule most professionally and

on top contending for the price leadership which a buyer can

definitely rely on and find it most competitive in this region, or

probably in the entire world.” Company's latest winning streaks at

various award ceremonies bore testimony to this fact. Besides, an

active member of BCI, it has successfully obtained ISO, Organic

Cotton Certificate, i.e., Control Union Certificate, OEKOTEX

Certificate, and several others. Robintex Bangladesh Ltd. received an

Award for World Quality Commitment Paris 2012. It is the first and

only time for a Bangladeshi textile company to receive this

prestigious award. Also this year March, the company won twin

awards: International Quality Era Award for Quality and Excellence

in Geneva and Platinum Technology Award for Quality and Best

Trade in Berlin.

Keeping abreast of the fabrics quality in global context and demand,

Robintex, being an active member of BCI, is very much conscious

“We believe we have

made our working

place a second home

for the workers and

they truly feel it.”

Robin Razon SakhawatDirector, Robintex Group


about not only the yarn quality but also the best of knitting quality by Robintex, as the director puts himself, always pleasantly welcomes

using the most dependable computerized circular and flat knitting the potential customers to visit us and look forward to their interests

machines of top-notch quality. “Its use of Germany origin high to experience a better business with the company. They will of

speed Terrot and Mayer & Ciecircular knitting machines from the course like our demonstration of infrastructural and industrial

year 2012 is an instance of our commitment of bringing innovation strength and attitude towards business commitments what we

in production,” he exemplifies. respect the most. On this occasion, Robin extends his heartfelt

gratitude to all valued clients whose trust on us supported a lot in As of the whole industry, Robin thinks there are many other

enjoying a continuous growth for long and in the continued contemporary companies who are doing really well when it comes to

expansion of business for Robintex Group.“We have gone for adapting to new technologies, with compliance issues and so on.

further expansion to increase our production capacity by 25% to However, he feels a vision is still missing and the recipe to succeed

about 6 million pieces of garments a year, and am pretty much sure with that vision will have to put in the place. “Otherwise, the world

that the in future, we will be able to become bigger.”will know only about the sad accidents; not the new benchmarks we

have been making.”


Beside all of required utilities and about 0.71 million square feet of floor

space for production, with 1864 sewing machines, Robintex has an ideal

environment to produce about 120000 pieces of high quality and diverse

types of knit garments every day.

BANGLADESH 2.0

Ibnul Wara was one of the thousands of visitors from 39 countries 300% over the decade, the former having almost 900% growth,” says who made it to the GDS-an immensely popular international event Ibnul. “I believe I am at the right place at the right time,” he adds. “It for shoes and accessories. It was a chilly winter morning in means we need to go up the ladder and contemplate heavily on value Dusseldorf; heavy snowfalls had already caused a massive traffic addition,”he states. “I believe we should start thinking about 360-outside, leading to many buyers cancelling their appointments. But degree vision and roadmap, that will set Bangladesh on the path of those who were inside enjoyed the fête to the fullest. Standing amidst staggering prosperity from these exportable,” he adds. He believes that ocean of opportunities, Ibnul , the young Managing Director of that Vietnam should be the benchmark for this sector in Bangladesh Austan Ltd. was enjoying how big players, especially the ones from says, “we have access to basic raw materials as opposed to Vietnam, India were nabbing their share of the pie. He hoped one day, he too who, despite having to rely heavily on import of raw material was going to join the club of those achievers. And why wouldn't he (approx. 70%) has a sector value of approximately 8billion USD be? A report from Research & Markets, world's renowned market which is almost 8 times that of Bangladesh. We have a share of less research store, forecasts that the demand for leather Goods industry than 1% of the world market share!” Ibnul wants to emulate their has grown than ever before. Industry revenue is expected to reach game plan here and show that Bangladesh has much more to offer 91.2 billion USD by 2018, with a Compound Annual Growth Rate of than meets the eye. 3.4%, over the next five years. To reap the best harvest from the hay

“It's time for certain policy changes in this sector,” says Ibnul. days of global shoe and leather goods industry, GDS is looking

“Policies were put in place to support tannery sector by putting forward to become the 'Global destinations of shoes and accessories

subsidy in the form of rebate on export of Crust (semi finished) with a new concept-trendier, earlier and more market driven. Ibnul thinks

leather. Now its time to focus on value addition and discourage the the same concept should be adopted here in Bangladesh.

export of crust. Up to 80% value addition is possible by encouraging Ibnul, whose leisure time passion circles around cricket always to convert our raw materials into finished products such as shoes and wanted to be a businessman and at this stage, working for a thrust bags.” He believes foreign investment will play a crucial role in this sector like leather industry, the sheer optimism he possess is almost aspect. Currently our major exportable from the leather industry are contagious. In the last one decade, the leather industry has crusts. The country procures approximately 220m sqf of raw experienced a tremendous growth and that added a incredible materials locally among which 50% is exported. The export momentum in the leather goods and footwear industry. “Leather and breakdown consists of 75% at the crust stage hence losing leather products in Bangladesh have grown at a remarkable rate of tremendous opportunity of in-house value addition. “Imagine how

much more we can add to our export earnings by encouraging value

addition in the sector,” Ibnul beams with sanguinity, who's own

company is specialized to produce finished leather. According to

him, it will not only save money from draining out of the country but

also can turn help Bangladesh beat Vietnam where the volume of

leather and footwear exports has gradually increased from US$1

billion in 2000 to 8 billion USD in 2011, leading to a trade surplus by

this sector of 48%. Data also shows that in the first six months of

2012, Vietnam exported in excess of 3 billion USD worth of

footwear, an 8% year-on-year increase. But as mentioned earlier, we

need a policy change and a massive drive to implement what we

envision for.

Ibnul also points to the biggest headache of the leather industry

in Bangladesh. Human Right Watch's recent report has already

Ibnul WaraManaging Director, Austan Ltd.

“The country

deserves positive

publicity as well

where there is truth

to it.”


criticized the work and environmental conditions in the tanneries in etc. “Approximately 2-4 million sq. feet of finished leather (printed,

Bangladesh. However, the report does not cover the other side of the napa-a soft leather and wax-finished lather) a year we export to these

story where the government is working on certain measures to countries,” he mentions. The brands it supplies leather to are: Fossil,

address the issue by relocating the tannery industry to Savar with Max & Co. , Picard, Tommy Hilfiger, Sportscraft and Kitamura

proper working conditions and a central water treatment plant. “The amongst many others. The factory has a workforce of 100 people

country deserves positive publicity as well where there is truth to it,” and is blessed with all the avant-garde heavy machines needed to

Ibnul sounds grim though he hopes the issue is settled at any cost. As produce finished leathers. Ibnul considers the leather industry can

of his own company, he is happy as it is situated inside Export bring Bangladesh the same amount of foreign currency and pride

Processing Zone with facilities like adequate gas and electricity that readymade garments industry did. “In this connection, I think

supply. Besides, a central ETP plant ensures that toxic waste the Human Rights Watch's report is a blessing in the disguise. It

materials are treated properly and not left to cause harm to workers warns us that we need to be compliant, environment friendly. In a

or the local community. word, we need to be responsible. Taking it seriously, we can come up

with a future-proof strategy to attain a sustainable growth,” he Austan Ltd. at present is producing finished leather to be exported to

concludes with a note of positivity.a many top companies in Europe, North America, Japan, Australia,


“Leather and leather

products in Bangladesh

have grown at a

remarkable rate of

300% over the decade,

the former having

almost 900% growth.”

BANGLADESH 2.0

As we were talking about Pride's billboards all over the town demand for things not “deshi”. “Even though Pride is and always showing models clad in saris or western outfits having loud colors, will be a sort of tradition that mothers and grandmothers wear on flaunting unconventional looks and oozing oodles of boldness, a early Eid morning, the challenge now is to make Pride relatable Sumbal Momen, one of the three young entrants of the third again to a younger, more fashionable market, while promoting our generation of Pride Group , who is at the helm of her company's strength in weaving, printing and quality. These are locally marketing and brand communications department, knows that manufactured products, as good if not better than international much water has flown under the bridge. Like a smart marketer, she products. We have a lot to be proud of in Pride”, asserts Sumbal. is apt in feeling the pulse of time and hence, wants to break the

However, Pride is not all about saris. They are a vertical textile stereotype and to represent her female models as bold characters

group engaged in manufacturing and export of knitwear to the having strong spirits. And she truly is good at it. Like it or not, one

EU. According to Sumbal, she takes a lot of pride in the fact that is bound to look back at those billboards, which means the recall

they are still a family managed company. “Eventually, to ensure a rates for Pride Limited and Urban Truth are much higher than its

company's sustainability, we must go the route of professional contemporaries who basically showcase the same girls in almost

management, and that process has begun, but there is a lot of the same attires.

blood, sweat and tears that we have put in as a family. My uncles It is ironic to Sumbal that her generation is facing the same and father are still extremely active and involved, and now the third dilemma her grandfather, Al-Hajj Halimur Rahman faced in the generation has come to help. A company is only as strong as its 60s, which brought about the existence of Pride: combating the family”. Their vision, as coined by their Director, Dr. Moyeen, is surge of Indian or Pakistani designer wear, and the ever prevalent “To Be A Thought Leader”, and Sumbal believes that they have

done much to deserve that title. “As an enterprise, Pride Group

has set new benchmarks by being first in many endeavors: thanks

to the efforts of Dr. Moyeen, we are one of the pioneers in

adopting best practices in the RMG industry. In retail, we were

one of the first local brands to properly implement the concept of

retail management, with branding, fixed pricing, a proper

showroom to display products, visual merchandising, and the

current retail and garment industry owes a lot to the innovative

thinking of Mohammed Abdul Moyeed, Dr. Moyeen and

Professor Mohammed Abdul Momen, directors of Pride Group,”

says Sumbal.

With a major in Economics , her stint at college studying Liberal

Arts offered her a wider window of so many new things

happening all over the world. It was during her time in college that

Pride Group's newest brand, “Urban Truth” came into being.

“The strength we have acquired in export with our fabrication and

design capabilities has made us confident to provide for the local

market what we have been supplying internationally. We have been

involved in the manufacturing of women's apparel for more than

20 years. This, combined with our retailing experience, gave us the

idea to create our own brand.” They also have plans to take this

brand international. “With the kind of investment we put into

Urban Truth, it would make good business sense to have a global

outlook. If the opportunity presented itself, we would definitely

like to penetrate the international market, but the competition is

“As an enterprise, Pride

Group has set new

benchmarks by being

first in many endeavors:

thanks to the efforts of

Dr. Moyeen, we are one

of the pioneers in

adopting best practices

in the RMG industry.”

Sumbal MomenManager, Marketing Communications, Pride Group


mind-boggling. Then again, brands like Zara became giants in not only with competition but copy-cats, and frauds masquerading

their home base before venturing out, so we are optimistic.” as our products. We have a lot of challenges ahead, but Pride was

born different. We have the experience, we have the brute strength The path has been challenging, especially in the recent year when

and the knowledge, and the spirit with which our grandfather built the retail market saw a dip. “With the political climate, the stock

this, still fuels not only my father and uncles, but myself, my market fiasco, customers have become very conservative in their

brothers and sister who are in the business, as well. I am spending, which is why the retail market has seen the lowest

optimistic.”performance this past Eid in years. But I strongly believe that even

with these factors, the only way to stand out is through innovation. We too have no reason to argue with her.

This market has become too homogenous, and we have to deal


“The strength we have

acquired in export with

our fabrication and

design capabilities has

made us confident to

provide for the local

market what we have

been supplying

internationally.”

BANGLADESH 2.0

A day becomes much more exciting and challenging to Fakir deserves without any qualms. Having a workforce of around 8000 Nafizuzzaman as soon as he steps at Fakir Apparels. Most of the people, currently the factory's yearly turnover is 80 million USD a time, the schedule is very hectic, but that's ok for an energetic man year and it caters to clients like H & M, C&A, Tom Tailor, Esprit, like him. Nonetheless, there is one particular day every week that Levis, Primark to name a few. And there is another metric that seems almost electric; it charges him with so much renewed vigor. causes envy in many: The company is enjoying a steady 15% This is the day when Nafiz's employees gather in a special meeting growth every year. So what is the recipe for success? Nafiz, himself place called “The Idea Centre”. As the name suggests, it is easy to a graduate in Marketing and Finance, says, “We never stopped understand the “why” of their gathering: to come up with some inspiring and culturing creativity; which in return has always kept new ideas to add more momentum in productivity-may be in the us on par with the ever changing universe of apparel goods.” He is form of increasing efficiency or by decreasing waste-all very much especially thankful to all the innovative designers from home and in accord with the ethos of their company. His father established abroad who have helped them palpate the pulse of changing tastes the company in the year 1998 with a view to becoming excellent of brands around the world. quality apparels manufacturer by satisfying social, ethical and environmental

That weekly meeting in the so-called “Idea Centre” is just another commitment. A very down to earth, humble and result oriented man

example to keep fueling inventiveness. Nafiz boastfully mentions he was and lady luck had no problem bestowing all the successes he

about how his team came up with a solution to lessen wastage of so

much of paper just by photocopying. “One of us came up with the

idea and we thought let's try it and the result is a revelation. No one

ever imagined that we were wasting so much of paper and now we

are on the way to reverse it completely,” he elaborates. But it was

enlightening to know that people just don't do brainstorming

during that session; there is even a provision of giving push-ups

and doing other sorts of physical exercises. Nafiz, who himself is a

big fan of English Premier League, plays football with his

employees. He believes these are important to get the creative juice

flowing. And all these efforts of continuous innovation and highly

commendable work and employee ethics have enabled the

company to add a few remarkable gems in its crown. It has been

H&M Gold Supplier since 2011. From 2008 to 2010, the company

was awarded Best Workers Friendly Knitwear Industry by BKMEA

and Ministry of Labor & Employment of Bangladesh. In 2012,

Brand Forum awarded “Best Worker Management Relationship”

and Best Factory providing “Workers Special Benefits / Benefits

beyond Labor Law” under Social and Environmental Excellence

category to Fakir Apparels.

Fakir Apparels has always been a dynamic company as it adapts easily

with a new technology or method. “Time teaches us a lot of thing.

Proper knowledge enables us to make more informed decisions and

that practice is embedded in the DNA of this company,” he informs.

“Couple it with a world class marketing strategy, you are sure to come

“We never stopped

inspiring and culturing

creativity; which in

return has always kept

us on par with the ever

changing universe of

apparel goods.”

Fakir NafizuzzamanDirector, Fakir Apparels Ltd.


up with a winning formula,” Nafiz shares his company's bag of tricks become more sophisticated; have to move up the value chain to

with Emerging Bangladesh. produce more designer products than just basic items. For that, we

will have to make our labors more skilled and efficient; then our We asked him about his take on the world apparel industries. Big

buyers won't haggle much and we can ensure better wages for our companies are afraid of upcoming challenges and the one that tops

workers. Also, it's not only about how much we pay them. We have the chart is uncertainty. According to him, it is us who have created

to think about a formula that changes the quality of their lives.” At the uncertainty. Our greed and myopic visions have not only

the same time, Nafiz suggests of adopting much leaner crippled the world economy but also have traumatized every single

manufacturing while focusing to cut wastes as much as possible. As business sector. And for a labor intensive sector like RMG, which is

for his own company, in future, he wants to inaugurate more very competitive, long term plans are badly needed. “We have to

digitalized solutions and analytics. “My father built this company look at the growth of other countries: China- 31.6%, Vietnam-

and we have many employees who are here from the beginning; 12%; Korea-32% and Bangladesh-24%. Now forget about China;

these people are willing to work for my dad. As a boss, I would like if you take Vietnam into account you will see they are paying much

to emulate him totally but as you can see, time will demand more more to their workers (0.38 USD/hour, in Bangladesh it’s

automation, I think I would like to be more tech savvy in 0.22USD/Hour). So besides manufacturing and price hike due to

operational management.” Nafiz considers Bill Gates to be the ingredients becoming costlier than ever, soaring labor cost is going

business icon to look up to. “You can see that he has revolutionized to hit us soon,” Nafiz doesn't sound concerned but confident.

the software industry; one day I would like to leave a mark as big as According to him, giving a cold shoulder to the call of increasing

him in the sector I work for,” Nafiz Concludes.wages of labors is not going to solve the problem. “We will have to


In 2012, Brand Forum awarded “Best Worker Management

Relationship” and Best Factory providing “Workers Special Benefits /

Benefits beyond Labor Law” under Social and Environmental Excellence

category to Fakir Apparels.

BANGLADESH 2.0

One of the advantages of staying in a cosmopolitan city is you ventured into a business, which had almost no other players in the come in touch with so many exciting cultures and people. And if then market and his hard work, and time-appropriate steps made him you are young, have a vibrant friend circle and look forward to a pioneer. After more than two decades, the company has enjoying your freedom in a meaningful way, every day offers you so successfully diversified into many other branches of not only paper much to learn about life. Zoana Shahab Khan is lucky to have that but into pre-press and printing machineries and evolved into a one-chance, though she doesn't believe that there is anything called stop solution provider for the printing industry. They are the pioneer luck; success depends on how much effort you are willing to give in bringing the Computer to Plate (CTP) printing technology to behind a project. She is thankful for her stay in London, which Bangladesh and are currently representing brands including Kodak, changed her perception about many things, especially work ethics. Konica Minolta, X-rite Pantone, Micro Inks and many others. The She went there to pursue her graduation at UCL and realized how company's annual turnover is 62 M USD, excluding that of Hanzee important it is for a person to become disciplined in every walk of Industrial Co. Ltd-a sister concern of Zeeshan Group. life and learn how to take responsibility. “Usually we are very much

What's more striking is that Hanzee Industrial, a joint venture with pampered and protected here by our parents and hardly any of us

Hansol Paper, the global paper giant from South Korea, started would like to do our own stuff, but staying abroad changed all that

operation in 2011 and within two years, its turnover stands at 13.7 for me. It helped me become an independent, confident and

million USD. So, what's the magic behind? Zoana states: “It is about organized person, be it work or leisure,” she states.

providing paper and paper board of international standards locally We were sitting at the Gulshan-1 office of Zeeshan International. but with much lower lead time and almost zero inventory for the Not a very big set up here, but as soon as you step in, you can feel the packaging industries in Bangladesh. This has proved to be highly vibrant work environment. The company was started by her father efficient for the exporters in the fast paced RMG industry. Our motto ShahabUddin Khan in 1992 as an indenting company to deal with has been to ensure customer satisfaction by rendering world-class paper and petrochemical products. The man like a true visionary customer service and never to compromise with quality.”

So did she always want to join the family business? When asked,

Zoana says, “For a brief period, I wanted to become an investment

banker. The job seemed both challenging and prestigious to me.”

Due to her majors in Economics and Finance, she was highly

encouraged to join that league. Later, as time passed, she found her

true calling in business. “Blame it on the DNA, the entrepreneurial

spirit runs in my blood and I am so thankful to my parents for that.”

Zoana who still considers herself to be a keen learner of the business,

thinks there are certain things that only time can teach. She is

optimistic about the youth of our country who are born risk-taker.

“With the right guidance I believe the next generation can prosper in

any sort of business.” She thinks the government should do much

more to encourage people who want to be job-makers, not just mere

job seekers. Pointing at many examples of successful enterprises

around the country, she says, “Bangladesh truly owes a lot to these

people who have brought the country such good growth in last

couple of decades and all of them inspire me big time.”

Zoana thinks the second generation of entrepreneurs in Bangladesh

is here to add much more new things in our export basket as the

“With the right

guidance I believe

the next generation

can prosper in any

sort of business.”

Zoana Shahab KhanDirector, Zeeshan International Agencies Pvt. Ltd.


opportunities are aplenty, as Asia becomes the next engine of growth easily in mind: what happens if in future, more and more officers

of world economy. “We have to look out to new opportunities and decide to go paperless? Zoana takes the question with a grain of salt.

make ourselves prepared for challenges of tomorrow. The demands “In Bangladesh, I still believe that is not going to happen any time

of printing industry are soaring day by day and not many in the soon. And to find out better solutions to keep enterprises afloat, we

market can ensure the quality; this is where our experience and support innovation. As you know we are pioneering new printing

professionalism of two decades comes in handy. Our vision is to technology to make Bangladesh more competitive in the world stage,

create a one-stop solution for our clients by providing all their it shows that we have already thought about it. We the second

required materials under one shed.” She is quite justified in putting generation of Bangladeshi Inc. is definitely going to add more

such claims, as the company already is a winner of - International volume in sales. The technology is here to help us; the people of our

Quality Crown Award 2013 (Gold category). country are very hard working and we have our patriarchs'

experiences to use as stepping stone.”Since paper is a big concern in their business, the question comes


What's more striking

is that Hanzee

Industrial, a joint

venture with Hansol

Paper, the global

paper giant from

South Korea, started

operation in 2011

and within two years,

its turnover stands at

13.7 million USD.

BANGLADESH 2.0

Faisal Mansur joined early 2011 to overlook Chemtrek Consumers, a Being a student of International Marketing, the cutthroat

concern of Chemtrek Industries Bangladesh Ltd. With his education competition in the local market is nothing new to Faisal. “Predatory

finished from the United States and having experience in Sales, IT, marketing policy is very much en vogue here: instead of flaunting their

Marketing, and Design, Faisal wanted to use his knowledge to bring strength, many players simply like to strike at their competitors'

Chemtrek into the digital era. However, he had two barriers to weakness. So, one must be very cautious.” At the same time, Faisal

overcome. The first one was the usual communication barrier. Being believes small companies in Bangladesh are not up for spending big

brought up in the USA since his early boyhood, it wasn't that easy for bucks for creation of a new product or innovation of old ones. That

him to become fluent in Bengali though it was his mother tongue. But is not the case with his company. The very fact of innovation is what

there was a bigger problem. He found out that some of the his parents set out to accomplish in Bangladesh.

employees of his company are time bandits. They were lacking Both Husna Mansur and Abul Mansur, parents of Faisal Mansur

commitments to their works and failing repeatedly to meet deadlines, could have happily stayed back in the United States of America.

and never ran short of excuses. Calm and patient by nature, Faisal Being successful chemists, they had already proved their mettle in the

took time to understand their psychology. He spoke with them and highly competitive professional atmosphere of the country that

made them understand how they were wasting their potential. spends billions of dollars every year for research and development.

Instead of coming harsh on them, Faisal gave them achievable They had both fame and money. But deep down inside, they had this

targets. Whether it was large targets relating to sales, or simple targets craving to come back to their country that hardly has seen

such as Internet usage time. Faisal's motivation did magic: even the investments in R & D sector. Both of them wanted to contribute in

most underperforming employees of the company started to give their own ways to the economy of the country. They chose the

extra efforts to achieve their goals. “It was tough but I was happy chemical sector, in which both of them had ample aptitude and idea.

when I found these people became more attentive and punctual,” Along with them, joined Ainul Azim, a retired army colonel and

says he. “Usually I have always found local people much more cousin of Husna to look after the business. That's how Chemtrek

hardworking, yet we still need to go a long way when it comes to adapt came into existence.

to proper organizational culture in big enterprises. In order to do

that, we must take the necessary steps no matter how big or small!” “Inspired by the motivation of enriching the country's poor chemical

sector, our supreme goal is to help place Bangladesh on track as a

prominent location for the era of Chemical Manufacturing,” Faisal

describes his company's objective. So far ranging from household

cares to textile chemicals; the company manufactures and produces

40+ items, which gives Chemtrek recognition as a local company

with global standards. We want to be your partner to innovative

chemicals!”

Among a number of new products, one thing that brought Chemtrek

under spotlight was the launching of Eurosoft, a type of Cationic

Fabric Softener. Cationic Fabric Softener is one of those chemicals

that is an absolute necessity for Garments and Textile Industries. A

simple product by appearance yet requires a highly technical factory

to produce! In Bangladesh alone, the market cap for this softener is

US$54 Million. It used to be imported 100%. But thanks to

Chemtrek, Bangladesh can now be considered as the fifth country

manufacturing this product in Asia. “The demand is vast: over 30,000

tons is imported from countries like Taiwan, Germany, China, and

“We didn't want to

set up a mere

company here; we

wanted to set up a

culture.”

CEO, Chemtrek Industries Bangladesh Ltd.

Faisal Mansur


Korea. We have started to manufacture it since last November. consumers,” states Faisal. Under Faisal's leadership, the teams were

Locally we can meet up to 300 tons. In a year, we would like to achieve reinvigorated and that eventually brought positive change to the

the goal of producing 1000 tons,” Faisal informs. What attracts company.

buyers from India and Pakistan is the cost effectiveness of our Faisal pursues his leisure time by doing graphic designing. He started

Bangladeshi- manufactured softeners. from a very early age and now it's almost like an addiction to him.

Due to the expansion of middle class, the consumer products market “Playing with designs is great fun to me. Besides, it widens my mental

in Bangladesh is bigger than ever before. Chemtrek wants to capture horizon and fuels my creativity.” As for his company, is there

a sizeable share of the Household and Body Care consumer market, anything special he would like to achieve? “We didn't want to set up a

currently enjoyed by few multinationals and local companies. They mere company here; we wanted to set up a culture. Keeping that in

have products like Kellys and Turbo and His and Her Body care. mind, we would like to venture into newer fields of consumer goods

“With an aim to increase consumer satisfaction and total market and win over our customers by offering international quality

coverage we diversified our distribution channel throughout the products in a cost effective way,” Faisal concludes depicting his

country. Our market and distribution set up works with a view to dreams of tomorrow.

close with a maximum number of retailers who are near to


“The demand is vast:

over 30,000 tons is

imported from countries

like Taiwan, Germany,

China, and Korea. We

have started to

manufacture it since last

November. Locally we

can meet up to 300

tons. In a year, we

would like to achieve

the goal of producing

1000 tons.”


SPECIAL REPORT

Bangladesh Next Billion Dollar Industries


What if the only billion dollar industry of Bangladesh, that is responsible for more than 80% of the export

earning, loses its growth; or even worse loses its market? Calculating the probability of such incident will

be a mammoth task. However, recent scenario such as political instability, violence and possessions in

order to increase the wages of garments workers, and withdrawal of GSP facility cast doubt on the future

of RMG sector and raise one question will there be any industry to back up our export earning if RMG falls

apart?

The answer of the question is not easy since most of the other industries in our country are able to export

less than a billion dollar annually. The agriculture and frozen food sector may have the prospect to cross

the billion dollar border but the capacity of agricultural production is not unlimited. Moreover, the

domestic demand of such product has been increasing with the increase of population. Here is the

necessity of such industry which will be able to contribute to the export earnings after satisfying the

domestic needs; an industry which is yet to reach its full potential. Economists believe that the

diversification of portfolio reduces the risk. The task may become gigantic for one industry but the

simultaneous development of some industries will eventually diversify our earning sources and decrease

the pressure from RMG sector. That is why, in quest for Bangladesh's next billion dollar industries, Tanay

Kumar Roy has reviewed five different sectors that are yet to flourish to its full potential.

A welder working at Western Marine Shipyard Ltd.

No more seating down at the sideline; the Information Technology Even though the

and software industry of Bangladesh has joined the mainstream indus t r y has

economy contributing 450 million USD in recent years. According to b e e n

the industry experts, currently the IT industry of Bangladesh is e x p e r i e n c i n g

having a consistent growth rate of 25%. h i gh g rowth

rate, some issues Not only the industry is contributing significantly in the national

such a s low income, but also it has been playing very crucial role in creating high

s p e e d o f quality employment for a sizable portion of young graduates of the

internet is taking country. According to Bangladesh Association of Software and

a toll on its Information Services (BASIS), around 800 organizations are

future growth registered in this sector. Current data says that the industry is

p r o s p e c t . employing more than 70,000 people. Over 70% of the companies are

However, recent found to be involved in development and maintenance of software

data from BRTC for their clients followed by IT enabled service (49.8%) and E-

s h o w s t h a t commerce/ Web services (45.4%). The most value added service is

66.38% of 160 million people have access to mobile services and developing software products or productized services which done by

22.27% of the population has access to internet considering over 10 18% of the businesses. Moreover, a good number of software and IT

million internet users in 2011. Recently, the largest mobile operators service companies who provide non-specialized/non-focused

of Bangladesh has purchased 3G license from government. The new services are surviving on business demand generated across different

3G connection is expected to enhance the client industries. Examples of such general IT

speed of connection and include more of the solutions are accounting solution, web site

population in the network. Another issue development, CRM, sales automation, office

raised by KPMG in its report in 2012 is that management, security solutions etc.

the services that Bangladesh provides have

lower value added potential comparing to the An analysis of the export data reveals that, on other countries.an average the annual export of IT related

product and services has experienced 29.71% The government, to boost up this sector, has

growth. In the fiscal year 2012-13, come up with the plan of setting up IT parks

Bangladesh has achieved 100 million USD in various zones of the country. The second

export earning which 43.53% greater than IT park is going to be established at Janata

that of the previous year. This contribution is Tower in Karwan Bazar. To attract investors

made by 160 companies who render their more in this sector, 10 years of tax holiday has

services in almost 60 countries. USA, UK, been announced. Recently, the Ministry of

Canada, Australia, Denmark, Netherlands are Information and Communication Technology

the top buyers of such services. Some of the (ICT) has been funded by World Bank. In the

top companies in the sector are REVE project called “Leveraging ICT: Growth,

Systems (VoIP Mobile Dialer Solutions), Employment and Governance”, 70 million

Tiger IT (developing biometric solutions for dollars will be spent to develop 30,000

international clients), SSD-Tech (developing international standard IT professionals. The

VAS mobile platforms for companies across project will also generate indirect employment

two continents).of 120,000 people. It is expected that the

professionals would be able to provide higher Not only the companies but also 35,000+ value added services and solved the issue freelancers who work individually or in a raised by KPMG. Moreover, the government group contributed 7 million dollars to the has begun collecting ideas regarding public earning of Bangladesh in 2010. According to services (e.g. education, health, banking and KPMG, Dhaka city is the one of the top city financial services) from its directorates and holding largest number of freelancers who departments to develop mobile applications cost individual freelancers who cost almost (apps) to provide such services to people. So, it 40% lower than established destinations like

th is not exaggerated when immediate past India and Philippines and 1/10 of that in US. President of BASIS Fahim Mashroor said that That is why it is no wonder why Gartner, one if export growth of IT sector continued like of the most respected global consulting this it were quite possible to achieve 1 billion groups, has included Bangladesh in the list of dollar by 2021.top 30 outsourcing countries in 2010.

IT Industry


What would you expect from an industry when SMEs. All together the industry employs the local demand of its products experiences 600,000 to 800,000 people directly and 2 around 30% secular growth per annum? million people indirectly. Most of the Statistics may vary but the industry that meets products are exported to 17 countries more than half of the demand of the local including UAE, Qatar, Kuwait, Saudi market and earns millions of dollars for the Arabia, South Sudan, North Sudan, country requires special attention. That is why, Tanzania, Myanmar and Iran. Bangladesh Light Engineering (LE) sector attached as one is on the way to expand our overseas of the Highest 'Priority Sector' (in the Export market by introducing office in Dubai and Policy-2009) and a 'thrust sector' (in its Industry USA. Thus Bangladesh has the Policy 2010) by the government of Bangladesh. opportunity to extend its export of LE

products over $300 million compared to Business Promotion Council (BPC), responsible

282 million USD in June 2011- May 2012 for the advancement of key sectors, states that

and surpass average annual export growth over 10,000 of different types of products are

of 13%. manufactured in this industry. The consumer of

light engineering products and services are both There are a number of reasons behind the the public and private sector. This industry success of the growth despite the industry produces capital machinery and spares for lacks technological expertise. Availability cement, paper, jute, textile, sugar, food of trainable labors at competitive cost processing, railway, shipping, garments and perhaps is the most significant reason of provides backup support by repairing and all. On the other hand, the small firms maintaining the equipment. According to working in the sector form clusters and Business Promotion Council, a number of develop expertise on a particular potential export quality light engineering technology or production process and products are going to foreign market on direct thus improve their productivity. and subcontracting means. These are spare parts Minimum Duty on import of basic raw of paper & cement mills, bicycle, fancy light fitting, construction materials, 10% cash incentive for light engineering product export by equipment, battery, voltage stabilizer, iron chain, cast iron article, government are also contributing to the growth of the sector.carbon rod, motorcycles, bicycles, automobile spares, electronics

What Bangladesh currently requires is structured policy from items, and stainless steel wares.

government, setting up “clustered industrial parks”, international Large companies do not lead the industry. Instead, a research quality and testing laboratory, research and development. If these conducted by BUET found that around 40,000 of Small and steps are taken, it is expected that Bangladesh will be able to grab Medium Enterprises around the country make up the sector. South potential market since the labor costs are increasing in rival. Asia Enterprise Development Facility (SEDF) managed by Moreover, the availability of trade concessions (such as GSP, SAPTA International Finance Corporation (IFC), in its study in 2008 and WTO Hong Kong declaration 2005) and DFQF (Duty Free and categorized the industry in 31 clusters across the country. The largest Quota Free)access to 97% of products including light engineering cluster of all is at Dholaikhal in Dhaka that houses around 5,000 products from LDCs) to rich countries would help Bangladesh

increase its export volume.

60 {Emerging Bangladesh} bgcci.com

Light Engineering Industry

All together the industry

employs 600,000 to

800,000 people directly

and 2 million people

indirectly.

If the scope of value addition is considered, controlling the rest 30% market. The larger the industry that beats RMG is leather. enterprises are controlling the domestic Leather industry has 90% scope of value market of high ended leather products but addition as opposed to 50% of that of RMG. they are mostly dependent on imported On the other hand, 90% of the raw materials products. This is because, 50% percent of the needed for the industry is available locally. As leather produced is being exported in the a result, the industry, holding the 4th place in form of semi-finished and finished leather terms of earning foreign exchange, is losing the value addition opportunity. Rest considered as a 'thrust sector' by the 50% is being converted into footwear and government. leather products for low-end market. So there

is an immense opportunity for the MSMEs to The industry is categorized in 3 sub sectors

provide up to 150 million USD in import leather, leather products and leather footwear.

substitution via becoming subcontractors for According to the data provided by Export

these very large global enterprises.Promotion Bureau (EPB), they hold 41%,

16% and 43% of the total leather industry Adequate compet i t ive workforces, respectively totaling to 980.67 million dollar availability of labor and low labor cost, worth of export value. The industry has unique grain pattern and fiber structure of experienced 15.23% average annual export cattle, cheaper price and relatively less lead growth for last 11 years; the growth rate of time as a result of locally available basic raw fiscal year 2012-13 being 28.81%. Among the materials, geographical location of tanneries subsectors, leather products experienced are the key strength of the industry. highest growth rate of 62.6% with 161.62 Moreover, high tax on competitors by major million USD export earnings. Most of the leather products importers, no duty on shoes, leather made products include trunks, suit- leather products made and exported from cases, handbags, shopping bags, belts, musical instrument cases, Bangladesh, GSP facilities for export to EU have made the industry traveling bags, rucksacks, map-cases, cutlery cases etc. they are mainly globally competitive. That is why, global retail chains such as JC exported to Italy, New Zealand, Poland, UK, Belgium, France, Penny, Marks & Spencer, Tesco and Wal-Mart, which buy clothes Germany, the USA, Canada and Spain. Besides, new destinations like from Bangladesh, also started collecting footwear from here to widen South Africa, Latin America, Oceania, Far-East Asia and Russia have sourcing along with garments, according to exporters.emerged recently.

The main controversy of the industry is the pollution it creates. The The leather sector, with its 3 subsectors, includes 220 tanneries, 3,500 unmonitored pollution in Hazaribag area is of major concern. To MSMEs and 110 large firms of leather products controlling more control pollution, promote the industry and develop the quality of than 90% of the export market. Most of the enterprises are located in products the government of Bangladesh announced that the Hazaribag of Dhaka, followed by two big clusters at Bhairab and tanneries located in Hazaribag will be shifted to a purpose-built and Chittagong. The sector generates direct and indirect employment for modern cluster in Savar, on the banks of the river Dhaleswari, 10 about 850,000 people, including a significant number of women, kilometers from Hazaribag. The key highlight of the Savar cluster particularly in the leather products industries. was to be the Common Effluent Treatment Plant (CETP),

conforming to international environmental standards. Implemented According to a report prepared by European Union's INSPIRED

by Bangladesh Small and Cottage Industries Corporation program, the footwear and leather goods are mostly dominated by

(BSCIC),the project will support 195 tanneries with an employment MSMEs (70%). Organized factories like Bata, Apex, Jennys, etc are

p o t e n t i a l o f

100,000 people. It

is expected that the

construction of

the cluster will

draw attention of

t h e f o r e i g n

investors and the

sector will be able

to produce more

v a l u e a d d e d

products.

Leather Industry


Who could imagine that an industry would double exported products include tablets, its revenue within 2 years? Nothing seems capsules, syrups, specialized products like impossible for the pharmaceuticals industry of inhalers, suppositories, steroids, nasal Bangladesh which has reached annual revenue of sprays, injections, anti-cancer drugs, anti-BDT 124.25 billion (1.52 billion USD) in 2012, retroviral drugs for HIV/AIDS and anti-compared to its retail market size of BDT 68 bird flu drugs. Although at present billion in 2010. MarketResearch.com, an industry Bangladesh exports generic medicines to a and market research company that published the good number of low-end markets in the data, also forecast that the revenue of the Asian, Middle Eastern, Latin and African pharmaceutical industry and healthcare sector will regions where markets are less regulated, be 1.79 billion USD and 5.16 billion USD in 2013 the real opportunity for the country's respectively. The average annual growth rate of the pharmaceutical sector to grow with local market of Bangladesh, which is responsible attendant challenges lies in penetrating the for 97% supply of necessary medicine in the high-end advanced markets After being country, is 16.5% in lass 11 years. According to successful in these less-regulated markets, BRAC EPL, an industry research company, the the companies took the initiative to increased life expectancy of population, increased explore some of the more-regulated medical coverage, emergence of private healthcare markets like Russia, Ukraine, Georgia and services, growing income base of population and Singapore.popularization of wellness drug are some of the

Even though government-spending factors contributing to high industry growth in

proportion for health sector in Bangladesh recent times.

is lower than that of other countries in Bangladesh manufactures about 450 generic Asian region, it is one possible area where drugs for 5,300 registered brands which have 8,300 different forms future growth may come from. Increase in government spending, of dosages and strengths. These include a wide range of products increase in number of modern hospitals, and increase in life from anti-ulcerants, flour-quinolones, anti-rheumatic non-steroid expectancy of people (Bangladesh 68.3, World 69.4, South Asia 65) drugs, non-narcotic analgesics, antihistamines, and oral anti-diabetic are some of the drivers for future growth. According to BRAC EPL, drugs. Some larger firms have also started producing anti-cancer and healthcare expenditure in nominal value will grow at 15.4% annually anti-retroviral drugs. Domestic manufacturers account for 97% of over the next five years. To promote the sector government has taken the drug sales in the local market while the remaining 3% are some steps which include: imported. About 85% of the drugs sold in Bangladesh are generics

import duty reduction for certain raw materials (from 12% to 5%), and 15% are patented drugs. There are about 250 licensed

lower duty for importing certain capital machineries used in the pharmaceutical manufacturers in the country; however, currently a

pharmaceutical industry (from 12% to 3%), withdrawal of 5% little over 168 companies are in operation. It is highly concentrated as

import duty, 15% vat, 20% supplementary duty for different top 20 companies produce 85% of the revenue. The top

pharmaceutical products, and extended eligibility for tax holiday pharmaceuticals companies based on export revenue in 2012 are

(ranging from 5 to 7 years based on location) for both BEXIMCO, Novartis, Square, Incepta, Tecno, Renata and Acme.

pharmaceutical and API firms.Among the 49 LDCs, Bangladesh is the only country which has a

One of the major concerning issues for the pharmaceuticals industry very strong manufacturing base in pharmaceuticals. Bangladesh as an

is Trade-Related Aspects of Intellectual Property Rights (TRIPs) LDC is now legally allowed to reverse engineer, manufacture and sell

agreement which permits Bangladesh to reverse-engineer patented generic versions of on-patent pharmaceutical products for domestic

generic pharmaceutical products to sell locally and export to markets consumption as well as for export to other LDCs. Most of the

around the world. Bangladesh imports approximately 80% of its

APIs for domestic production; 20% of which are patented. The

exemption continues till December 31, 2015 and it is assumed that if

the exemption is not increased the cost of pharmaceutical products

will increase and Bangladesh will face severe problems. However,

analysts think impact may not be devastating as proportion of patent

drugs is very small in our market. Moreover, the government is

constructing an API industrial park at Gajaria upazila in Munshiganj

spending more than BDT 2 billion. The construction of the park is

expected to be completed before the exemption is over and it is

expected that Bangladesh can save at least 70% of cost of raw

materials when the industrial park goes into production.

64 {Emerging Bangladesh} bgcci.com

Pharmaceuticals Industry

What would take the second largest ship breaking country of the entrepreneurs, with the support of government, have utilized the world to create a shipbuilding industry? May be late, but the answer cost as a competitive advantage and gained access to the world has been found and shipbuilding is on the verge of being an market. Bangladesh Foreign Trade Institute (BFTI) in one of its important sector in the economy of Bangladesh. All inland and research findings said that the country's shipbuilding industry could coastal ships are now manufactured in Bangladeshi shipyards. As the become the third largest foreign exchange earner in less than ten turnover of the industry has reached 600 million USD in 2012, the years. But it requires government's provides support to overcome government has declared shipping industry as one of the driving some of the shortcomings such as access to bank guarantees, access forces of our economy. The government's move aims at developing through green channels, declaration of export-oriented shipyards as the shipbuilding sector to its full scale so that more and more orders export processing zones, capital investment, and infrastructure and from overseas pour in to the Bangladeshi dockyards. technological support.

According to industry ministry sources, though there were some 70 In response to the demand of the industry, the government has shipbuilding firms in Bangladesh in the beginning of 2012. Among initiated some steps which include offering a 12-year tax rebate them Ananda, Western Marine, High Speed facility to the local ship building Shipbui lding, Dhaka Dockyard and industry to help the latter flourish and Engineering Works, Khan Brothers earn foreign exchange in greater Shipbuilding and Karnaphuli Shipyard are the volume. Under the facility, listed leading ones that make ocean-going vessels for shipbuilders will have to pay only 5% international buyers. They are capable of corporate tax while the rate will be 10% making ships of about 10,000 DWT (Dead for non-listed ones. The decision was Weight Ton) as per international standard. taken following repeated requests

made by the ship building industry A study conducted by Denmark Embassy of

leaders so that the industry could grow Bangladesh, the shipbuilding industry has been

at a faster pace when the global experiencing 10% growth rate on an average.

economy especially that of Europe is in The country has been exporting new ships to

deep financial crisis. On the other hand, European Union market, especially to

Denmark expressed keen interest to Denmark, Finland and Germany. It is now set

transfer its sophisticated technology to to deliver a good number of ships under orders

modernize Bangladesh's growing received from Germany, the Netherlands, and

shipbui ld ing industr y and i ts Denmark. Foreign companies such as Grona

infrastructure. The implication of Shipping, KOMROWSKI, WESSELS,

advanced technology is expected to be LohmaanBereederungen GmbH and Co KG,

able to attract European investors Stella Shipping, LAMOR Group are the key

which will increase the liquidity of this buyers of those ships.

capital intensive industry.The rapid growth of shipbuilding industry in

The industry experts hopes that the tax recent years can be attributed to the abundance

rebate and the mutual cooperation of of cheap labor, initiatives of the entrepreneurs,

Denmark will help the shipbuilding patronization of the government, and

industry to grow at a faster pace, geographical structure of Bangladesh. Studies

creating 1.5 million additional jobs and show that the labor cost in shipbuilding

earning 2 billion USD from export of industry comprises between 20% and 30% of

ships by 2015.total manufacturing costs. In Bangladesh, it is

15% less than that of China. The

Shipbuilding Industry

Studies show that the labor cost in shipbuilding industry comprises

between 20% and 30% of total manufacturing costs. In Bangladesh, it is

15% less than that of China.

{Emerging Bangladesh} bgcci.com 65

FEATURE FESTIVAL

unwavering faith and the willingness to sacrifice and After running the marathon in the share one's privileges with the needy while

rat race that we call “everyday life”, highlighting the Islamic pilgrimage to the city of

Mecca. Both events require various pious rituals to be we Bangladeshis love our holidays. performed, but it's the fringe curriculum that really

gets everyone in the mood to rejoice. When it comes We put all our eggs in these to celebrating Eid-ul-Adha in Bangladesh, which is sporadically chronicled breaks, expected to take place mid-October this year, it is

usually the gorurhaat (livestock trade fair) that has the planning our happiest of activities entire nation in an uproar. Gigantic bazaars, complete

celebrat ing, travel ing, and with funfair, mushroom almost overnight throughout

the nations where even the most orderly of persons SLEEPING! I, for one, am guilty get down and dirty to acquire that perfect cow or goat

of slicing into a healthy portion of at the best rate. While on the roads during the weeks

before the festival event, one will find the new owners both my Eid holidays each year to of these livestock walk their animal home from the

snooze. Having confessed that, at fair, proudly displaying their purchases adorned by

colorful accessories. And do the bystanders simply the risk of sounding like a observe? Absolutely not! They shout out asking for

the buying price because they know the owner is just complete hypocrite, I will request itching to divulge. This endearing practice you will you to not sleep away your only get to witness in Bangladesh.

holidays. Don't do what I do. This year, we can expect to enjoy the third most

celebrated religious festival, Durga Puja (prayers to the Utilize your holidays better, Hindu chief-goddess Durga), back-to-back with Eid-

especially during the coming ul-Adha. While on many levels, the ritualistic concepts

of the two events contradict one another, what is months.really interesting to see is how the people of these two

It always seems that before we even work out the kinks faiths harmoniously celebrate their individual of Eid-ul-Fitr from our system, the second major proceedings, often even participating in each other's festival of the year Eid-ul-Adha comes knocking merriment. The Bijaya Dashami (victorious tenth) (despite the allotted two and half months interval in closes a series of events and religious prayers that take between).While the first festival punctuates the place over a period of ten days, during which the closing of the month long fasting and abstinence goddess is invoked, prayed to and then her images are aimed to help the affluent commiserate with the immersed in water. The immersion, which takes place underprivileged, the second event denotes in the evening of the tenth day, is an especially a

fascinating sight where usually giant effigies of the

goddess in sunk into rivers, pond, lakes and even the

ocean.

With two of the largest religious festivals of the nation

covering the two largest religious communities,

October is set out to be a very busy holiday season

indeed. One of the most enjoyable aspects I find of

celebrating festivals in Bangladesh is that there is

almost always an aura of mystery revolving around the

schedule of these holidays. As most festivals are

dependent on the lunar cycle, it always becomes a hot

topic among communities as to when the next holiday

will come up. Because making the most of the

opportunity is paramount!

-By Zaireen Sultana Lupa

'TIS the SEASON for

HOLIDAY-MAKING


ESQR’s Quality Achievements Award, London 2013 International Quality ERA AWard, Geneva 2013

Technology Award Quality & Best Trade, Berlin 2013 World Quality Commitment Award, Paris 2012

www.robintexbd.com

Corporate Head Office: T.K Bhaban (8th Floor), 13 Kawran Bazar, Dhaka-1215, BangladeshFactory: Vulta, Rupganj, Narayangonj, Bangladesh.

A Bangladesh - Germany Joint VentureRobintex (Bangladesh) Limited

Robintex (Bangladesh) Limited, Garments SectionComptex Bangladesh Limited

Robin Knitware Limited

TM

emerging bangladesh-july-sept. 2013

Documents

business leaders of

international education

managing director

business magazine

theday of german unity

bgcci executive committee

executive directors

sayed jamaluddin haiderdr