Youngone, Ha-Meem on top, Ananta creates a stir

The top place for readymade garment (RMG) export from Bangladesh remains in the hands of foreign entrepreneurs. This time too, Youngone Corporation owned by South Korea's Kihak Sung, topped the list of readymade garment exporters. Coming up second is the locally owned Ha-Meem Group. While exports by these groups have declined over the past two years, they still hold the two positions.

The remaining eight industrial groups in the Top 10 list of RMG exporters for the 2023-24 fiscal are Mondol Group, Ananta Group, DBL Group, Pacific Group, Palmal Group, Standard Group, Beximco and Square Group. Over the past one or two years there eight groups have advanced or fell behind, and some have dropped out.

Prothom Alo drew up this list of Top 10 exporters in the RMG industry by scrutinising the 2023-24 fiscal export figures of the National Board of Revenue (NBR). Local exports and sample exports were left out and only actual exports were taken into account.

A study of NBR's export figures for the last three years indicates that over a span of one or two years, the overall exports by these 10 groups has declined. In 2021-22 the total exports of the Top 10 was around USD 4.86 billion. The next year this declined to USD 4.68 billion. And finally in the last financial year the total exports of these 10 groups was around USD 4.59 billion.

The decline in exports by the top groups has had an impact on overall readymade garment export. The 2021-22 fiscal is said to have been the golden year for the country's garment export. In that financial year, garment exports totalled USD 30.34 billion. The next year, exports declined by 7.41 per cent. In the 2023-24 fiscal exports fell by another 1 per cent to USD 36.88 billion.

The NBR figures appear after duty is collected following taxation of the export consignments. NBR exports records include the previous fiscal's consignments of which export duty was paid in the last fiscal. Every year there is information of export information of around USD 1.5 billion which have been taken into account. This is done because if duty is not paid as yet on some consignments which were exported last fiscal, then the figures will appear in this fiscal's records.

As a single company, South Korea's Youngone Group first reached near to a billion dollars in exports. Last 2022-23 fiscal the company exported readymade garments of USD 985.3 million. In the last fiscal their exports fell by 18 per cent, but they still retained the position of top RMG exporters.

Last fiscal Youngone exported readymade garments of USD 806.4 million. Other than readymade garments, this South Korean company exports various items including bags, shoes and raw material for the garment industry. It has indirect exports too.

Youngone exported readymade garments to 52 countries last financial year. It exported 34.5 million pieces of readymade garments. They export high-end garments from Bangladesh. They retain business with the German brand Adidas.

It was also through Youngone that the first private sector export processing zone started in Bangladesh. The number of Youngone factories in this export processing zone is on a steady rise. The group manufactures various types of garments from 100 per cent reprocessed polyester yarn. These garments are being supplied to Adidas, Ralph Lauren and such work famous buyers.

Ha-Meem group leads in readymade garment export among locally owned companies. In 2021-22 fiscal the group exported readymade garments of USD 666.6 million, placing at second position among the top RMG exporters. In a span of two years its exports fell by 12 per cent. In the past fiscal the group exported readymade garments of USD 586.7 million. Despite the decline in exports, Ha-Meem retained its second position.

Ha-Meem exports garments to 63 countries of the world. Their largest market is the US. Last fiscal the group exported USD 436 million in garments to the US, which is 74 per cent of their total exports. Their main export is pants.

Speaking to Prothom Alo, the managing director (MD) of Ha-Meem Group, AK Azad, said, "Our main market for readymade garments is the US. Last year sales of readymade garments there fell and so did the prices. That is why our exports fell too. When the US market turns around, we hope our group's exports will pick up again too."

New countries are being added to the readymade garment export destinations of Mondol Group. Two years ago the group would export garments to 67 countries. That has now increased to 71. Mondol Group is seeing a steady increase in exports. Last fiscal its exports went up by 5 per cent to USD 505 million. Two years ago this was USD 478.8 million.

Mondol mostly exports T-shirts. Around one-third of its exports are T-shirts. Last fiscal the group exported 236.9 million pieces of garments. The main destination of their exports are European countries.

Abdul Majid Mondol is the founder of Mondol Group. His son Abdul Majid Mondol is presented the managing director of the group.

Ananta Group put on an amazing performance in readymade garment exports last fiscal. For the first time the group grabbed a position on the list of Top 10 RMG exporters. And it jumped straight to the fourth place. Last fiscal Ananta's six RMG factories exported garments worth USD 465.7 million. This is 96 per cent more than the previous fiscal.

Last financial year Ananta Group exported around 85 million pieces of readymade garments to 63 countries of the world. Their buyers include GAP, Marks and Spencer, Levi Strauss, Old Navy, PVH, H&M and such world famous brands. The groups exports suits, sweaters, women's lingerie and general garments too.

Ananta Apparels was started by the industrialist Humayun Zahir in 1991 in his own building on Elephant Road, Dhaka. In 1993 Humayun Zahir was shot dead by miscreants, after which his wife Qamrun Nahar Zahir took over the reins of the company. She is presently the company's chairman. Elder son Sharif Zahir is the managing director and younger son Asif Zahir is the deputy managing director.

Ananta Group has seven factories at present in Adamjee EPZ, Gazipur, Kanchpur and Chattogram EPZ. They have 26,000 employees.

Speaking to Prothom Alo, the managing director of Ananta Group, Sharif Zahir said, "The garments industry saw negative growth due to the decline in purchase orders after Covid. As a strategy, we added new buyer companies and focussed in export of diverse products and high-end garments. That is why exports increased. Our target is to manufacture garment raw materials in the country. That is why we have invested in the country's first 100 per cent synthetic fabric manufacturing factory in Narsingdi. If the factory in established within this year, then the value addition to exports will increase."

Two years ago DBL Group's exports were half a billion dollars. It had ranked third among RMG exporters then. Last fiscal they exported USD 461.7 billion in RMG and took fifth place.

This group exports to 58 countries including in Europe, America, the Middle East and Africa. Last fiscal it exported 187.9 million pieces of garments. So an average DBL manufactures over 500,000 pieces of garments every day. Two major buyers of DBL are C&A and H&M.

Dulal Brothers Limited or the DBL Group began in 1991 in a small factory on Green Road. The DBL Group was established by four brothers -- Abdul Wahed, MA Jabbar, MA Rahim and MA Quader. While they started off with readymade garments, their businesses include ceramic tiles, IT, telecommunications, and dredging.

Vice chairman of DBL Group MA Rahim, speaking to Prothom Alo, said, "We will not venture into any new investments over the next one or two years. We will focus on consolidating our existing businesses. Our main aim in particular is to cut down waste, increase production and strengthen our supervision."

Chattogram's Pacific Jeans Group ranks sixth in RMG exports and its exports have seen a slight rise. Last fiscal the group exports garments of USD 405 million, which was 2 per cent more than the previous year. In this span of time the group exported 43.1 million pieces of garments to 47 countries. Japan's multinational retailer Uniclo is Pacific's biggest buyer. Their main export product is denim garments.

The later founder of Pacific Group, Md Nasir Uddin, began his RMG business four decades ago with NZN Fashion. He was the pioneer of jeans export in Bangladesh. They have 9 factories at present.

From is founding till 2018 Pacific Jeans Group had been exporting woven garments. Then they added knitwear in their exports. However, denim remains their major export. While most garment factories in Bangladesh manufacture cheap garments, Pacific's garment cost more on average. Last fiscal each garment of the group was exported for USD 9.36 on average.

Managing director of Pacific Group, Syed Mohammed Tanvir, told Prothom Alo, "Alongside denim, we are leaning towards diverse garments. Rather than increasing the quantity of our exports, we are paying attention to high-end and high-price garments. So while the volume of garments will not increase much, there will be value addition."

Ranking at seven, Palmal Group's exports have slid down over the past two years. In 2021-22 fiscal, the group exported USD 486 million of readymade garments. In a steady downslide, this fell to YSD 378.3 million in 2023-24 fiscal.

Last fiscal the group exported 140 million pieces of garments to 67 countries. The group basically exports knit garments. The knit garments include T-shirts, Polo shirts, shorts, etc. Two major buyers of the group are Old navy and Wal-Mart.

Palmal Group was founded by entrepreneur Nurul Huq Sikder four decades ago. Presently his son Mafiz Sikder is the managing director of the group.

Two years ago Standard Group was in fourth position exporting USD 480 million worth of garments. But exports have declined and it now is at eighth place. Last fiscal the group exported garments of USD 362.8 million.

Standard Group basic exports woven garments. Their main woven export products is trouser pants. Last fiscal they exports 55 million pieces of garments. Their main buyers are Marks and Spencer, GAP, American Eagle, etc.

The Standard Group was started up four decades ago by two engineer friends Mosharraf Hossain and Atiqur Rahman. Now the second generation is at the helm of the group.

Chairman of Standard Group Atiqur Rahman told Prothom Alo, "Our exports declined when a Japanese buying company left Bangladesh. We are looking for new buyers. We are also endeavouring to increase our productivity and our RMG exports."

Last fiscal Beximco Groups exports were the lowest in three years. Last fiscal the group exported garments of USD 314.9 million. It fell from eighth place to ninth.

The 11 companies of the group last fiscal exported 70 million garments to 39 countries. Inditex is their biggest buyer. Beximco's diversified garments include isolation gowns and cover gowns. Last fiscal Beximco exported 21.2 million isolation gowns to the US.

Private industry and investment advisor to former prime minister Sheikh Hasina, Salman F Rahman, is in the ownership of Beximco. After the fall of the government, he is now in jail.

Square has been advancing at a snail's pace in the garment industry. Over the past five years it has always seen growth. In a matter of one year's different the group's exports increased by almost 2 per cent. Last fiscal the group exported garments of USD 305.6 million, managing to make it to the Top 10.

Square was started by four friends way back in 1958. The main leader was Samson H Chowdhury. After he passed away, his offspring are taking this old industrial group ahead. The grandchildren have now joined in too. While it began with pharmaceuticals, it branched out to health services, consumable goods, textiles, readymade garments, media, TV, IT, security services, banks and insurance, helicopters and agricultural products.

Square Group present exports RMG to 55 countries. Its buyers include Hugo Boss, Ralph Lauren, Marks and Spencer, Puma and other world renowned brands.

Chairman of Square Textiles, Tapan Chowdhury, told Prothom Chowdhury, "We plan to invest further in readymade garments. There is ample demand. But the change in political scenario and the incidents that have followed, have hit the RMG sector hard. The buyers are concerned about labour safety, security of the factories and whether the products can be delivered on time. As it is, 25 per cent of the orders for next season have been relocated. The recent attacks on factories have not been a good omen. Unless the situation improves soon, the country will face serious losses."

* This report appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir