Textile Idea Generation

Textile is a major industry. It is based in the conversion process of fibre into yarn, then fabric, these are then fabricated into clothes or other artifacts. Cotton remains the most important natural fibre, so is treated in depth. There are many variable processes available at the spinning and fabric-forming stages coupled with the complexities of the finishing and coloration processes to the production of a wide range of products.

Our Textile industry is playing a pivotal role towards the development of the national economy. It covers and meets local demand and exports to the world market. This sector employs near about 5 Million people. In respect of economic value addition, the contribution of this sector is about 40 per cent where 12 per cent to the national income. The export earning from this sector is about USD 17.92 billion in 2010-11 FY measuring 78 percent of the total export earning of the country. The development of this sector begins in the early 1980s with the inception of private investment. For the last 3 decades, the sector grows smoothly with spinning, weaving, denim, home textile, knitting and dyeing-finishing as Primary Textile Sector (PTS) along with secondary development of Knitwear and woven-wear. PTS can now satisfy 80-85 percent of Knitwear demand and 25 percent of woven-wear demand.

Primary Textile Sector: Fiber is the fundamental component required for making textile yarns and fabrics. There are two types - natural and synthetic. Natural fibers come from animals (sheep, goats, camel lids, etc.) or vegetable-based fibers (cotton, flax, linen, and other plant fibers). Mineral fibers (asbestos, etc) are also classified as natural fiber. Synthetic fibers are man-made and manufactured from synthetic chemicals – (byproducts of the petrochemical industries) – nylon, polyester, acetates. The characteristics of fibers directly affect the properties of the fabric it is woven into. Yarns are continuous strands of fibers that can be woven or knitted into fabrics. Natural staple fibers usually require processes such as spinning to make yarns. Silk yarn extracted from silk cocoon is continuous filament yarns. Most of the synthetic yarns also do not require the additional processes of spinning. Spinning is the process of manufacturing yarn from different types of fibres into a continuous length from one or more type of fibers. Spinning is the most important and the initial step in fabric manufacturing. The major goals of spinning is to produce the quality yarn from raw material, then remove the process faults followed by winding the short length bobbins on Cones. There are different types of spinning, the most commonly forms of spinning are: Ring, Rotor, Air Jet, Friction etc. The most important backward linkage of textile sector is spinning. We have good tradition of spinning. In 1947 we had 11 spinning mills which reached to 74 in 1972. After independence, this subsector comes under nationalization. But due to government mismanagement, most of the mills winded up. At present there are 398 spinning mills including 22 state owned mills. The government mills are running under service charge method. This subsector satisfies 85 percent local demand. Weaving is a process of formation of fabric with interlacement of two or more sets of yarns using a stable machine called loom. Human beings have started using the woven fabrics since the drawn of history. If we exclude the stone age period, the history of civilization is also, to some extent, the history of weaving. Though primitive civilizations used coarser threads to make fabrics which were crude and coarse, there are references of fine fabrics made from filament of silk in China. Second important backward linkage of the sector is weaving. Under this process Gray Fabrics is prepared from yarn. There are almost 660 gray fabrics producing units in Bangladesh in addition to more than 1000 specialized textile and power looms. Handloom is a core issue to village economy. There are almost 15 lakh people are employed in this sector directly or indirectly. This is the second employment sub sector in our country. As per loom census of 2003, there are about 5 lakh handlooms in our country. Fabric manufacturing methods are weaving and knitting. Weaving, or interlacing yarns, is the most common process used to create fabrics. Textile fabrics can be produced directly from webs of fibres by bonding, fusing or interlocking to make non-woven fabrics and felts, but their physical properties tend to restrict their potential end-usage. The mechanical manipulation of yarn into fabric is the most versatile method of manufacturing textile fabrics for a

Masum Lecturer of Textile Management, Bangladesh University of Textiles, Dhaka-1208

wide range of end-uses. Knitting is a method by which thread or yarn may be turned into cloth. Knitting consists of consecutive loops, called stitches. As each row progresses, a new loop is pulled through an existing loop. The active stitches are held on a needle until another loop can be passed through them. Basically there are two types of knitting which are weft knitting, versus wrap knitting and another type is flat knitting versus circular knitting. Knitting, Knit-weaving and Hosiery products like T-shirt, Polo-shirt, Under shirts, Underwear, Bra, Panty, etc. are playing a pivotal role in export sector in our country. Embroidery is the art or handicraft of making or decorating a design on a piece of fabric or other similar supplies with ornamental needlework. Finishing is the final series of operations that produces finished textile fabric from grey goods. Textile finishing usually includes treatments such as scouring, bleaching, dyeing and/or printing, the final mechanical or chemical finishing operations etc. Dyeing & finishing play pivotal role in marketing garments and related products. There are almost 300 such units which produces near about 1600 million meter.

Secondary Textile Sector: Garment making is one of the basic content of fashion designing. Proficiency in the art of sewing is an essential pre-requisite in garment making. There are Woven garments and Knitted garments. Shirts, trousers, sarees, bed spreads, blankets, towels and made ups are Woven. T-Shirts, sweatshirts, undergarments, pyjamas and socks are Knits. Garment manufacturing processes include all activities from the point when textiles are received at the factory, to when retail-ready garments are shipped to the distributor. Some processes—such as fabric relaxing, cutting, and sewing—occur in the manufacturing of all garments. Other optional processes may also be performed as specified by the customer, including such things as embroidering, screen printing, and laundering. Accessories are used on garments, some are part of the garments such as buttons, zippers, interlining etc. while others are used for decorating and enhancing the product appearance such as sequins, embroidery etc. Merchandising is a process through which products are planned, developed, executed and presented to the buyer. It includes directing and overseeing the development of product line from start to finish. Marketing and merchandising department: A team of merchandisers and marketers work together under a profit controls head. Merchandisers handle the foreign buyers. The teams are made according to the buyers being handled. Costing is the deciding factor of the prices and the important thing to be followed in all important stages like purchase, production, marketing, sales, etc. Very good knowledge and experience is very much essential for doing successful marketing and sales. Also update knowledge about everything related to textiles, is essential to make perfect costing. Dispatching is the process of delivering the products to the customers using various modes of transport such as road, rail, air and sea.

Bangladesh Textile Mills Corporation (BTMC) was established with 74 mills through Bangladesh Industrial Enterprises (Nationalization) Order, 1972. Afterwords, BTMC establised more 12 mills under its supervision from 1978 to 1995. Out of the above 86 mills, Government has already privatized, sold or liquidited 64 mills

The journey of export-oriented RMG begun in FY 1977-78 and grown in 1980s. At present the subsector earns almost 78% of export earnings of the country. RMG is subdivided into Oven and Knitwears. Export Demand for oven products is 3000 million meter of which only 40% are backed by loccal porducers where as Export demand for Knitting products is about 5000 million meters of which 90% is backed by local backward linkage.

Since 1986 the supervisory role for RMG is conducted by Textile Cell of the Export Promotion Bureau of Bangladesh. On the other hand Textile Directorate of Textile & Jute Ministry also monitored the garments until 1993 but from 1994 this role is transferred to Investment Board of Bangladesh. However, rules of business including licensing, registration, regulation remains unchanged with the ministry. To tackle the rampant growth of textile sector Textile & Garments Industry Board Act is under consideration

Masum Lecturer of Textile Management, Bangladesh University of Textiles, Dhaka-1208

The main rawmaterials of textile industry is rawcotton and synthetic fibre. Rawcotton of Bangaldesh is world standard but production is very scanty that met only 1-2% of total demand having actual production of near about 50000 bell per year on average. On the other hand prodction of synthetic fibre thawarts the diversification of the industry.

Statistics of Education and Training programs for this sector is not so affuluent in relation with the employment. Moreover under BTMC “National Institute of Textile Trining Research and Design (NITTRAD)” is playing a good role for the development of this sector. This institute is getting help from different development agencies. At present it is running a EU supported project named Better Work and Standards (BEST) Programme for 5 years starting from 2010

Global Textile Sector

1. Top Ten Cotton Producers

Below are the leading cotton producers for the 2004-5 season. Among the top 10 cotton-producing nations, the top 3 producers accounted for over 70% of their total production.

Masum Lecturer of Textile Management, Bangladesh University of Textiles, Dhaka-1208

1. China … 25.5 million bales (32.7% of cotton production from top 10)

2. United States … 17.6 million (22.6%)3. India … 12.5 million (16%)4. Pakistan … 8.5 million (10.7%)5. Brazil … 4.4 million (5.7%)

6. Turkey … 4.2 million (5.4%)7. Greece … 1.7 million (2.2%)8. Australia … 1.3 million (1.7%)9. Syria … 1.3 million (1.7%)10. Mali … 1.1 million (1.4%).

2. Top Cotton Exporters

Below are the leading cotton exporters for 2004-5. America generates well over half of the exports from the top 10 nations.

1. United States … 2.9 million tonnes (54.9% of cotton exports from top 10)

2. Australia … 445.9 thousand tonnes (8.5%)

3. Uzbekistan … 440 thousand (8.3%)4. Brazil … 331 thousand (6.3%)

5. Greece … 286 thousand (5.4%)6. Mali … 206.8 thousand (3.9%)7. Egypt … 183.7 thousand (3.5%)8. Burkina Faso … 178.7 thousand (3.4%)9. Zimbabwe … 173.4 thousand (3.3%)10. Tajikistan … 133.1 thousand (2.5%).

Furthermore, the U.S. provides over half of the cotton exports to China. Chinese farmers complain that the American government unfairly subsidizes domestic cotton production by as much as US$3 billion annually. These subsidies lead to lower cotton prices on the world market and therefore less money into the pockets of Chinese cotton growers. In turn, Chinese farmers lack incentive to plant more cotton crops which could help alleviate shortages.

3. Top Cotton Importers

Below are the leading cotton importers in 2004-5. Among the top 10 importing countries, the top 3 took in almost 60% of their total cotton imports.

Masum Lecturer of Textile Management, Bangladesh University of Textiles, Dhaka-1208

1. China … 1,901.1 thousand tonnes (38.2% of cotton imports from top 10)

2. Turkey … 585.1 thousand (11.8%)3. Indonesia … 448.7 thousand (9%)4. Mexico … 398.1 thousand (8%)5. Thailand … 358.4 thousand (7.2%)

6. Pakistan … 330.4 thousand (6.6%)7. Russia … 308.1 thousand (6.2%)8. South Korea … 268.8 thousand (5.4%)9. Italy … 208.7 thousand (4.2%)10. India … 171.2 thousand (3.4%)

Notable by its absence from the above list, the U.S. has outsourced the bulk of its textile industry to developing countries with cheaper labour costs. Instead, the U.S. provides raw cotton to textile producing countries like China and then buys the finished cotton-fabric products.

While China has shown great strides in becoming an international superpower in world trade, cotton is one arena where the United States continues to dominate the exporting and importing game.

The producing, consuming, exporting and  importing country ranks dealing with cotton. According to US Department of Agriculture (USDA) the list goes like this:

1. Cotton PRODUCERS (growers) Ranks - China, USA, India, Pakistan, Brazil, Uzbekistan, Turkey.

2. Cotton CONSUMERS Ranks - China, India, Pakistan, USA, Turkey, Brazil, Indonesia3. Cotton EXPORTERS Ranks - USA, Uzbekistan, Australia, Brazil, Mali, Greece, Burkina Faso4. Cotton IMPORTERS Ranks - China, Indonesia, Turkey, Pakistan, Thailand, Mexico,

Bangladesh

China is the major player for cotton in the world. But, the demand for Cotton in China is also immense. Therefore, they have to import cotton as well. The fact that makes USA the major exporter of cotton, is they produce more than their consumption, this is also true for Uzbekistan.

And the reason Bangladesh, Mexico, Pakistan, and Thailand are in the top importer list is because they have the most demandable textile industries that work as a hub for high quality and low cost yarns and fabrics.

However, the rank of Bangladesh as a Cotton Importing country may rise up the ladder due to more than 100% growth in the Knitwear industry recently. This fact can easily tell us how big the Bangladesh’s Garments Industry is.

Global Ready Made Garments

Global Ready Made Garments exports have experienced extraordinarily high rates of growth, along with the continual entry of new suppliers.

Global export of textiles and ready-made garment (RMG) exceeds US $ 300 billion per year, well over one-third of which is accounted for by developing countries. Growth was particularly dramatic in China with exports increasing several times over previous years, for Mexico and Turkey, for Mauritius and Jamaica, as well as the better known cases of East and South-East Asia.

The value of world garments exports is estimated to have been $166 billion in 1996 (WTO 1998, vol. 2, p. 132).4. Until the end of the 1980s the top four garment exporters were Hong Kong, Italy, Republic of Korea, and Taiwan. China emerged as a leading exporter in the second half of the 1980s and today occupies the number one position in the world. In 1995 China and Hong Kong together had a share of 21.2 per cent of the world markets, and they pose a formidable challenge to other developing countries.

The United States and the EU together imported more than 70 per cent of world's clothing imports in

1996. In that year the United States and the EU imported clothing worth $43.3 billion and $80.9 billion respectively (WTO 1998, vol. 2, p. 133).5

China emerging as a major supplier of clothing is a big worry. It is the largest garment exporter in the world and its share in the world garment exports amount to 20 per cent. Several developing countries such as India, Thailand, Bangladesh, Indonesia, Sri Lanka, Pakistan, East European countries and Turkey are all becoming sizeable producers of ready made garments.

Bangladesh Textile Sector

1. Yarn Manufacturing: 385(Daily Star on 26-01-2012) Ring Spinning 97 Ring Spinning with Open-end Capacity 195 Rotor/Open-end 51 Synthetic Yarn Mills 30

2. Fabric Manufacturing : 721 (Daily Star on 26-01-2012)

Woven 561 Denim 21 Home Textiles 18 Knit Fabrics 103

3. Dyeing-Printing-Finishing 233 (Daily Star on 26-01-2012)

4. CapacitySpindle Capacity 8,700,000 Rotor / Open-end Capacity 230,000 Yarn Manufacturing Capacity (100% Capacity Utilization) 1700,000,000 Kgs Fabric Manufacturing Capacity Mtr. 2000,000,000 Fabric Processing Capacity Mtr. 2000,000,000

5. Number of Looms of BTMA Shuttle-less 17,000 Shuttle 13,000

6. Raw Material Requirements: Bales 7,600,000

Raw Cotton :7.5 Ml. Bales (if 100% capacity is utilized) Rae-Cotton Import / Consumed :4.0 Ml. Bales (if 100% capacity is utilized) Raw Cotton Source :USA, Australia, CIS, Russia, India, Pakistan, China,

Central America, East & West Africa etc. Type of Raw Cotton Imports :1-1/8", 1-1/6", 1-32", 1-5/32" etc.

7. Other Raw Material Used

o Polyester, Viscose and Acrylic Staple Fiber, Cheif and Pet-Chips, Cotton Waste and Waste Cotton

o Yarn 5-10 counts (both for Knit and Woven) o Synthetic and Filament Yarn o All kinds of Cotton & Knit Fabrics

8. Contribution of Textiles 40% Industrial Value Addition Comes From Textile Provide Over 5.0 Million Jobs of which 80% are woman

Around 80% of the export earning comes from Textile & Textile related product The Value Addition in woven RMG is now around 35% to 40% and KNIT RMG is around 70% Around 40% of the total demand of Woven Fabrics for Export oriented RMG is supplied by the

local weaving mills 90% of the domestic fabrics and 100% yarn requirements of Knit Garments are met by Primary

Textile Sector (PTS) Provide 0.2 Million jobs in Waste Recycle Industry related to RMG Contributes 12% to GDP, it is expected 15% by 2021 Generate huge cliental base for Banking, Insurance, Shipping, Transport, Hotel, Cosmetics,

Toiletries & related economic activities.

Bangladesh Export & Import Analysis

1. Total Export ( 2010-2011)

Cash 17512.9 million USDEPZ 2800.9 2million USD Total 20313.8million USD

2. Cash Export (Commodity wise)

Readymade garments 77.1%Fish, Shrimps and Prawns 3.3% Jute manufactures 3.8%Leather and leather manufactures 2.7%Raw jute 1.6%Furnace oil, naphtha and bitumen 0.6%Fertilizer 1%

3. Cash Export (Country wise)

U.S.A. 21.5%Germany 15.6%U.K. 9.1%France 7.5%Netherlands 5.6%Italy 4%Canada 4%Spain 3.6%Turkey 3.4%Belgium 2.7%India 2.7%

4. Cash Export (Bloc wise)

E.U. 54.3% NAFTA 26.0 %OIC 7.2 %Other Asian Countries 5.1 %Other European Countries 4 5% ACU 3.9 %SAARC 3.3 %OPEC 2.0 %ASEAN 1.2 %

5. EPZ Zones & Export

A-type (100% foreign investment), B-type (Join venture between Bangladeshi and foreigners) and C-type (100% Bangladeshi enterprises)

Enterprise Type Total no. of EnterprisesA B C

Chittagong 87 23 53 163Dhaka 68 10 21 99Mongla 7 2 1 10Ishwardi 4 1 4 9Comilla 11 8 9 28Uttara (Nilphamary) 3 1 4 8Adamjee 17 5 4 26Karnaphuli 19 1 5 25 Total 216 51 101 368

Total export from EPZ as per BEPZA is 2.8 billion USD in 2010-2011 FY

6. Import Expenditure (In Million USD)

Major Commodities 2009-10

1. FOOD GRAINS 837i. Rice 75ii. Wheat 761

2. Milk & cream 1063. Spices 1094. Oil seeds 5. Edible oil 10506. Pulses all sorts 3507. Sugar 6508. Clinker 3339. Crude petroleum 53510. POL 202111. Chemical 97212. Pharmaceutical products 10313. Fertilizer 71714. Dyeing, tanning etc.materials 27515. Plastics and rubber articles thereof 96616. Raw cotton 143917. Yarn 71818. Textile and articles thereof 198619. Staple fibre 11820. Iron, steel and other base metals 145321. Capital machinery 159522. Others 5862

Sub total : 22325Imports of EPZ 1413 Grand Total : 23738