Asif Ibrahim, Managing Director of Newage Group – a leading manufacturer and exporter of woven and knit apparels, with an annual turnover of about US $ 75 million, which grew from a modest garment manufacturing unit and employing merely 150 people to giving employment to 7,300 people today at its four manufacturing destinations in Dhaka – is someone who has been at the forefront in developing the industry, formulating policies for its growth in diverse capacities at various points of time, be it as the President of Dhaka Chamber of Commerce and Industry (DCCI) or Chairman, Board of Trustees – Business Initiative Leading Development (BUILD). In an intense and thought-provoking discussion with AOB, he shares his perspective on the current scenario of the Bangladesh apparel industry and the way forward according to his reading of the situation…
One of the biggest thrust for growth of the garment manufacturing industry in Bangladesh has been the abundance of labour at relatively low cost, but with the changing dynamics of the business, this is not enough to propel the industry forward, anymore. A seasoned veteran, what bothers Asif the most is the dearth of quality human resources which have cropped up as the biggest obstacle between the industry and its date with growth and success. “People-management has emerged as a real big challenge for us. There is acute shortage of mid-level management professionals who can efficiently handle and adapt with the requirements of the changing times,” observes Asif, underlining that most of the mid-management professionals currently engaged in the industry lack in educational pre-requisites. “What they have learnt, is all through their experience of working in the factories, rather than by any formal education. So, when it comes to adopting to new and advanced techniques of garment manufacturing, there is usually a lot of resistance from them as they feel their jobs could be at stake in such a scenario,” points out Asif, driving home the fact that RMG sector being a low-tech industry with principal thrust on the manpower, shortage of efficient middle managers, calls for a thorough introspection by all to address the issue.
“Be it the Government, garment manufacturers’ association or even the factory owners, no one really focused on planning and skill development, keeping in pace with the technological advancements,” says Asif, who fears that if the issue is not taken care of now, it has all the makings to snowball into a serious problem for the industry in the near future.
“This is the only reason why you see so many expats in the garment industry today, be it Lankans, Indians or the Filipinos, who all are here to fill in the void in middle management,” Asif underlines, and who despite being appreciative of the Government’s efforts to address the same, does not forget to point out its limitations as well. “I think there has to be a joint effort by both the Government and the private sector where the latter will have to play a pivotal role. Besides, the association also has to step in much more proactively,” suggests Asif, highlighting that to start with, the industry first needs to attract the right type of talents. “If the BUFT institute (BGMEA University of Fashion & Technology) can flourish properly with a national agenda for skill development, clearly defining the direction and areas of concentration, we can perhaps churn out some really talented professionals,” Asif says, adding, “With ILO, we have set up a centre for excellence where the Government, BGMEA and ILO are working in tandem whose results are yet to come in.” The MD of Newage Group is however apprehensive if these efforts would be sufficient to cope with the problem considering its magnitude and urgency which demands a large-scale and concerted effort to say the least.
Another burning issue which can very well take the sheen off the world’s preferred garmenting hub, is the rising labour costs, which has Asif mulling over ways and means to counter it. “If we don’t improve our efficiency, we won’t be able to hold on to the much talked about competitive edge that we enjoy. Labour wage being the biggest component of our expense, if there is any further increase, impacts would be here to see soon,” warns Asif, highlighting the importance of employee engagement and system improvement to increase efficiency and production. “We are putting in efforts to improve systems but they are largely unorganised and sporadic,” points out Asif adding honestly that the efforts are mostly the buyer-driven efficiency improvement exercises which has been in the forefront lately. “Many buyers have appointed consultants to help improve efficiency levels of the factories that they source from. Such buyer-driven efforts are essentially for their own requirements. Instead, we need a more concerted, organised and sustained endeavour for results to present,” emphasizes Asif.
A firm believer in developing the region as a hub of garment manufacturing where India and Bangladesh, instead of being competitors, support and complement each other to ensure all buyers’ needs are fulfilled from the subcontinent itself, Asif feels the two countries need to work more closely with each other both at the policy and industry level. The MD of Newage Group wonders why Bangladesh’s exports to India still remains so insignificant considering the neighbour’s huge population and its demands matching the headcount that Bangladesh can fulfil to a large extent. “Only a handful of Indian retailers source from Bangladesh like Van Heusen, Peter England and a few more,” laments the ex-president of DCCI, who identifies Indian Prime Minister Narendra Modi’s offer of 200 acres of land in Gujarat for Bangladeshi garment manufacturers to open a warehouse, a new beginning of a mutually beneficial relationship between the two. “Of the 40 companies invited to set up the warehouse, we are also a part,” observes Asif, who in his words is now “keen on connecting the dots between the Indian retail shops and the Bangladesh garment manufacturers for a better tomorrow”.
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