Bangladesh Leather & Footware Industry

[Rezwan12]

12:00 AM, October 13, 2020 / LAST MODIFIED: 02:05 AM, October 13, 2020

Leather turning into a big draw for foreign investors

Industry insiders say

Refayet Ullah Mirdha

The leather sector in Bangladesh is turning into a hotspot for foreign investment due to the country's low manufacturing costs, availability of cheap raw materials and its eligibility for trade benefits on exports, said industry insiders.

New investors from Japan, Taiwan and Vietnam have been contacting local leather goods and footwear manufacturers either to make investments in joint ventures or in companies they could establish themselves.

The export incentive on crust leather is 7.5 per cent while its 15 per cent on leather goods, which is also a major factor drawing foreign direct investment (FDI) to this sector.

Crust leather is the term applied to leather which is dried after tanning but has not yet been dyed.

Foreign investors are also interested in Bangladesh's domestic markets because of the rising number of middle-income customers and lifestyle changes for rapid urbanization which have mainly pushed up the use and sale of leather goods and footwear.

Currently, total investment in leather and leather goods and footwear is more than $1 billion, of which some $700 million is from domestic investors while the remaining $300 million is from foreign investors who are engaged in the export of manufactured goods.

"Of the foreign investment, most of the amount came from Germany, Taiwan, China, India and Italy," said Saiful Islam, president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh.

"I have been receiving a lot of queries from foreign investors as they are interested to invest in Bangladesh," he said.

Interest spiked when the government recently allowed tanneries at the country's Savar Tannery Industrial Estate (STIE) to set up their individual effluent treatment plants (ETPs).

The use of ETPs ticks one of the boxes for global standards, added Islam, also managing director of Picard Bangladesh.

Coupled with the cheap rates of an abundant source of raw materials, foreign investors see prospects of good business, he said.

So far, the government has allowed two tanneries to construct their own ETPs for delays in the establishment of a central one for the STIE.

Currently, some 123 out of 155 tanneries at the STIE are operational.

Due to poor adoption of global standards set by Leather Working Group, Bangladeshi exporters have failed to avail compliance and environmental certifications from the global body for the leather goods sector.

This leaves them with no choice but to sell goods to some non-compliant Chinese factories and accept prices that are 40 per cent lower than the international norm.

Md Shaheen Ahmed, president of the Bangladesh Tanners Association (BTA), said tanneries would surely benefit if foreign investment comes in the leather goods sector because it would increase demand for locally tanned rawhide.

Whatever investment that has been made in tanneries till date has come from locals, he said.

The establishment of ETPs by just 50 privately-run tanneries at the STIE can bring substantial benefits to the sector through the attainment of LWG certifications.

But so far, only two have been allowed to construct their ETPs, he added.

Ahmed also expressed concern over the difficulties in monitoring of privately-run ETPs at the STIE by government officials.

M Abu Eusuf, professor of the Department of Development Studies at the University of Dhaka, also believes that this sector would immensely benefit from the arrival of foreign investment.

Bangladesh has revised its export target for leather goods to $3 billion by the end of next year. If the foreign investment comes, achieving the target would be easier. Vietnam has already proved this, he said.

Currently, international brands like ABC-Mart, Adidas, Aldo, Esprit, Hugo Boss, H&M, Kate Spade, Kmart, Michael Kors, Marks & Spencer, Nike, Steve Madden, Sears and Timberland source leather goods and footwear from Bangladesh. 

 

https://www.thedailystar.net/business/news/leather-turning-big-draw-foreign-investors-1977121

[Rezwan12]

12:00 AM, October 13, 2020 / LAST MODIFIED: 01:55 AM, October 13, 2020

Maf Shoes to invest Tk 1,118cr to set up new factory

The sister concern of TK Group will establish the unit inside Bangabandhu Shilpa Nagar

Jagaran Chakma

Maf Shoes, a sister concern of TK Group, is set to invest Tk 1,118 crore to establish an export-oriented footwear manufacturing unit alongside other backward linkage industries at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram.

"We want to increase our exports and provide backward linkage products to local footwear manufacturers," said Mohammad Shahadat Ullah, executive director of Maf Shoes.

"For this reason, we have decided to invest in export-oriented factories for synthetic sports shoes, sports-gears and other associated backward linkage facilities at BSMSN," he added.

Maf Shoes will set up a total of 10 manufacturing units related to footwear and its backward linkage industries, he said.

The proposed project will create 5,500 job opportunities, Ullah said.

Of the Tk 1,118 crore investment, 30 per cent will come through equity while the remaining 70 per cent will be funded by banks.

 Two private banks have already assured that they would finance the new labour-intensive footwear factory.

Maf Shoes has already submitted an investment proposal to the Bangladesh Economic Zones Authority (Beza), seeking a 50-acre plot for the new facility, which will be the company's third footwear manufacturing unit.

"We will give them the land they wanted as the company will produce both export-oriented and import substitute products at the same time," Paban Chowdhury, executive chairman of Beza, told The Daily Star.

Renowned footwear retailers want to explore sources other than China for their products, leading to increased competition in the global footwear market, which has encouraged Maf Shoes to go ahead with its plans, he added.

The global market size for synthetic footwear is about $150 billion but there is still huge potential for growth in the sector, which could turn into the second largest export earning sector for Bangladesh with proper and timely policy support from government.

Ullah also said the government has brought the sports and synthetic footwear sector into focus, making it the most preferred sector under the latest export policy.

The authorities concerned have even proposed special facilities like tax rebates for the sector.

Moreover, a 4 per cent export cash subsidy was recently introduced for this highly labour-intensive sector to make it suitably incentivised to attract more export orders.

Maf Shoes, a pioneer in synthetic or non-leather sports footwear products in Bangladesh, is a 100 per cent export-oriented company with the highest solo investment, Ullah said.

Bangladesh annually earns about $300 million from sports shoe exports, of which Maf Shoes accounts for 20 per cent.

On average, the company has grown by 20 per cent annually for the last five years, he added.

The company exported 1.14 crore pairs of sport shoes in 2019 while the figure was 91 lakh in 2018.

However, Ullah expects to export 1.25 crore pairs this year and 2 crore pairs next year.

"We began commercial export in 2011 with only $0.17 million. Last year, we exported $57 million and despite pandemic affect, we are projecting $70 million in export receipts for this year," he said.

Maf Shoes is already in the process of establishing their second unit at the Nasirabad industrial zone at cost of Tk 137 crore. The facility is set to go into commercial production in March next year.

The company produces a wide range of footwear for all age groups and provides complete manufacturing solutions under one umbrella, engaging 8,500 workers in the process.

Maf Shoes is one of the most reliable and dedicated sourcing partners of Decathlon, a leading sportswear retailer based in France.

Maf Shoes covers 15 per cent of Decathlon's global market demands and has also started making shoes for another global footwear giant, Deichmann from Germany.

Currently, most raw materials Maf Shoes uses in its products are sourced from China, Vietnam, South Korea etc.

But due to the ongoing Covid-19 pandemic, the company loses at least eight weeks on each shipment, allowing its global competitors to reach an advantageous position, Ullah said.

To create ample production facilities that will be suitable for the next 15 years equipped with proper backward linked facilities like circular knitting, warp knitting, rubber outsole, etc, Maf Shoes will manufacture these products at its new units.

The company will also step into other sports-gear segments like swimming goggles, swimming caps, kickboards and the like.

In October 2019, Prime Minister Sheikh Hasina announced the continuation of financial incentives in the leather sector for at least the next five years to help the country achieve its targeted export earnings from the leather goods and footwear industry.

She made the announcement while inaugurating the Bangladesh Leather Footwear and Leather Goods International Sourcing Show.

The PM said that as part of export diversification, the leather goods industry has been identified as a priority sector for Bangladesh's economy and national industrial development strategy.

"For this, various initiatives have been taken to develop the leather and leather footwear industries," she said, adding that barely a decade ago, most of the country's export earnings from this sector mainly came from shipments of leather as a raw material. 

 

https://www.thedailystar.net/business/news/maf-shoes-invest-tk-1118cr-set-new-factory-1977113

[Joel Ahmed]

https://www.dhakatribune.com/business/stock/2021/08/29/bata-s-great-comeback-q2-earnings-turn-positive

Bata’s great comeback: Q2 earnings turn positive

 Tribune Desk

 Published at 05:39 pm August 29th, 2021

Bata said that the reason behind this massive deviation is the company’s revenue witnessing a 426% increase

After a massive loss in its Q1 (January-March) earnings for the first time in its business history, Bata came back strongly with positive earnings in Q2 (April-June) of 2021. 

In a filing with Dhaka Stock Exchange on Sunday, Bata said its earnings per share (EPS) was Tk1.15 for the Q2 of 2021, a 102.14% increase from Tk53.74 in the negative for the Q2 of 2020.

During the first six months of 2021, its EPS was Tk2.44 in the negative against Tk51.67 for the first six months of 2019. 

Meanwhile, its net asset value (NAV) per share was Tk265.50 as of June 30, 2021 and Tk267.94 as of December 31, 2020. 

The reasons behind Bata’s great comeback

Bata said that the reason behind this massive deviation is the company’s revenue witnessing a 426% increase. 

Bata achieved this revenue by clearing products by offering bulk discounts, which boosted sales on a massive scale. 

Besides increasing sales, the EPS also increased because the company maintained its expenses in proportion to turnover.

[Joel Ahmed]

Footwear Industry of Bangladesh

https://www.youtube.com/watch?v=N-dynfJ9DPM

[Joel Ahmed]

https://bonikbarta.net/magazine_details/4077

রফতানিতে বিশ্বজয়ের তালিকায় নাম ছড়াচ্ছে বরিশালের ফরচুন

এম মিরাজ হোসাইন, বরিশাল

জুলাই ০৬, ২০২২

https://bonikbarta.net/uploads/magazine_post_image/magazine_post_4077_1.jpg

ঐকান্তিক প্রচেষ্টা, দৃঢ় মনোবল আর সততায় ভর করে একটি প্রতিষ্ঠান বিশ্বে মাথা তুলে দাঁড়াতে পারে। বাংলাদেশের সবচেয়ে অবহেলিত এলাকা হিসেবে বিবেচিত বরিশালে প্রতিষ্ঠিত ফরচুন সু কোম্পানি এমন কৃতিত্ব দেখিয়েছে। জায়গা করে নিয়েছে এশিয়ার সেরা ২০০ প্রতিষ্ঠানের তালিকায়। যুক্তরাষ্ট্রের ব্যবসা-বাণিজ্যবিষয়ক সাময়িকী ফোর্বসে এ তথ্য উঠে এসেছে।

সম্পূর্ণ রফতানিমুখী প্রতিষ্ঠানটি বর্তমানে স্পেন, জার্মানি, ভারত, ইতালি, পোল্যান্ড, যুক্তরাষ্ট্রসহ পশ্চিমা দেশগুলোয় তাদের উৎপাদিত পণ্য রফতানি করছে। পাশাপাশি এ অঞ্চলের অবহেলিত নারী ও বেকার যুবকদের কর্মসংস্থানের সুযোগ সৃষ্টি করেছে। এরই মধ্যে কোম্পানির চেয়ারম্যান ২০১৮ সালে দেশে শ্রেষ্ঠ তরুণ শিল্পোদ্যোক্তা হিসেবে পুরস্কার পেয়েছেন। ২০২০ সালে যুক্তরাষ্ট্রের বিজনেস ম্যাগাজিন ফোর্বসের ‘এশিয়াস ২০০ বেস্ট আন্ডার আ বিলিয়ন’ প্রতিষ্ঠানের তালিকায় দেশের শীর্ষ তিন প্রতিষ্ঠানের মধ্যে বরিশালের ফরচুন সুজের নাম উঠে আসে। অন্য দুই প্রতিষ্ঠান হলো স্কয়ার ফার্মাসিউটিক্যালস ও রেনাটা ফার্মাসিউটিক্যাল। এছাড়া ২০২১ সালে বঙ্গবন্ধু শিল্প পুরস্কারে প্রথম স্থান অর্জন করেছে ‘ফরচুন গ্রুপ অব কোম্পানি লিমিটেড’। ফরচুনের জুতা রফতানি হচ্ছে ইউরোপ, আমেরিকাসহ বিশ্বের বিভিন্ন দেশে। তাদের বার্ষিক লেনদেনের পরিমাণ ৮০০ কোটি টাকার বেশি।

কোম্পানি সূত্রে জানা গেছে, ২০১০ সালের ১৪ মার্চ বরিশাল শিল্পনগরীতে প্রতিষ্ঠিত হয় ‘ফরচুন সুজ লিমিটেড’। মাত্র ৪৭২ জন জনবল নিয়ে জুতা তৈরির কারখানাটি চালু হয় ২০১১ সালের ৭ সেপ্টেম্বর। অনুন্নত যোগাযোগ ব্যবস্থা আর দক্ষ শ্রমিকের অভাব থাকলেও ধীরে ধীরে এগিয়ে চলা প্রতিষ্ঠানটির উৎপাদিত পণ্য পশ্চিমা দেশগুলোয় বেশ জনপ্রিয় হয়ে ওঠে। এর ধারাবাহিকতায় সম্পূর্ণ রফতানিনির্ভর এ প্রতিষ্ঠান ২০১৫ সালের ১৪ জানুয়ারি পাবলিক লিমিটেড কোম্পানিতে রূপান্তরিত হয়।

বর্তমানে ‘ফরচুন গ্রুপ অব কোম্পানি লিমিটেড’-এর আরো চারটি প্রডাকশন লাইন (প্রিমিয়ার ফটওয়্যার লি., এমজে ইন্ডাস্ট্রিজ, ইউনিওয়ার্ল্ড ফুটওয়্যার অ্যান্ড টেকনোলজি লি. ও ফেন-এন ফুটওয়্যার লি.) সংযুক্ত করে এখন পাঁচটি কারখানায় বরিশালে পণ্য উৎপাদন করছে। উৎপাদিত পণ্য প্রায় দশক ধরে নানা চ্যালেঞ্জ মোকাবেলা করে দেশের গণ্ডি পেরিয়ে এখন ইউরোপের বাজারে জায়গা করে নিয়েছে।

স্পেন, জার্মানি, ভারত, ইতালি, পোল্যান্ড, যুক্তরাষ্ট্রসহ পশ্চিমা দেশগুলোয় ফরচুনের উৎপাদিত পণ্য রফতানি করায় একদিকে যেমন দেশে বৈদেশিক মুদ্রা আসছে, অন্যদিকে স্বাবলম্বী হচ্ছেন ওই অঞ্চলের অবহেলিত নারীরা। এখানে কর্মরত সাড়ে চার হাজার শ্রমিকের মধ্যে ৮০ ভাগই নারী। ফরচুন সুজ বর্তমানে তাদের নয়টি উৎপাদন লাইনে প্রতিদিন সাড়ে ৩৫ হাজার জুতা তৈরি করছে। গত অর্থবছরে কোম্পানিটির রাজস্ব ১৮ শতাংশ বেড়ে ১ হাজার ৪৪০ কোটি ৪০ লাখ টাকা হয়েছে। এছাড়া ১০৯ শতাংশ বেড়ে কর-পরবর্তী নিট মুনাফা হয়েছে ২৪ কোটি ৫৫ লাখ টাকা।

ফরচুন গ্রুপ অব কোম্পানির প্রধান নির্বাহী কর্মকর্তা মোহম্মদ রেদওয়ান বলেন, তাদের কোম্পানির তৈরি জুতার আকৃতি, গঠন ও গুণগত মান দেশের অন্য যেকোনো ব্র্যান্ডের জুতার চেয়ে উন্নত। ফরচুন পণ্য তৈরিতে ক্রেতা সন্তুষ্টির বিষয়ে কখনই কোনো আপস করে না। ফরচুন বিশ্বের বিখ্যাত ব্র্যান্ডের জন্য সুজ তৈরি করে।

তিনি জানান, আন্তর্জাতিক বাজারে রফতানির জন্য নারী, পুরুষ ও শিশুদের জন্য বিভিন্ন স্টাইলের সুজ, ফ্যাশনেবল ও স্পোর্টস সুজ উৎপাদন করে। নিজস্ব ল্যাব সেকশনের মাধ্যমে পরীক্ষা-নিরীক্ষা করে এ জুতাগুলো বহির্বিশ্বে রফতানি করা হয়। প্রতিষ্ঠানটির মার্কেটিং ব্যবস্থাকে আরো বিস্তৃত করতে চীনের গুংঝুয়ান শহরে রয়েছে একটি কার্যালয়। সেখান থেকেই পুরো ইউরোপে এ প্রতিষ্ঠানের পণ্য সরবরাহ ও বিক্রি করা হচ্ছে।

এদিকে রাষ্ট্রায়ত্ত দুটি পাটকলের জমি ইজারা পেয়েছে ফরচুন সুজ। ৫৬ একর আয়তনের এ জমিতে ফরচুন জুটেক্স নামে নতুন প্রতিষ্ঠান গড়ে তুলবে পুঁজিবাজারে তালিকাভুক্ত এ কোম্পানি। এ কারখানায় দেশ-বিদেশের বাজারে সম্ভাবনাময় পাটজাত পণ্য উৎপাদন করা হবে। চলতি বছরের শুরুর দিকে চট্টগ্রাম ও খুলনা জোনে রাষ্ট্রায়ত্ত ১৩টি পাটকল বেসরকারি খাতে ইজারা দেয়ার জন্য একটি আন্তর্জাতিক দরপত্র আহ্বান করে বাংলাদেশ পাটকল করপোরেশন (বিজেএমসি)। ওই দরপত্রে অংশ নেয় পুঁজিবাজারে তালিকাভুক্ত দুটিসহ মোট ১৮টি দেশী-বিদেশী সংস্থা ও প্রতিষ্ঠান। সর্বশেষ গত ২৫ মে চূড়ান্ত প্রস্তাব জমা দেয় কোম্পানিগুলো। এর মধ্যে ফরচুন সুজ খুলনা জোনে প্লাটিনাম জুবিলি জুট মিলস ও দৌলতপুর জুট মিলস ইজারা পেতে প্রস্তাব দেয়। বিজেএমসির মূল্যায়ন কমিটি চূড়ান্ত প্রস্তাব জমা দেয়া কোম্পানিগুলোর মধ্যে বিজয়ী প্রতিষ্ঠানগুলোকে সরকারি মালিকানাধীন পাটকল ইজারা দেয়ার জন্য চূড়ান্ত করে। এর মধ্যে ফরচুন সুজকে দেয়া হয় ৫৬ একর জমি।

পাট খাতে বিনিয়োগের চিন্তা থেকে ফরচুন সুজ সরকারি জমির ইজারায় অংশ নেয় জানিয়ে কোম্পানিটির সেক্রেটারি রিয়াজউদ্দিন ভূইয়া বলেন, গ্রুপ ম্যানেজমেন্ট নতুন কোম্পানির মাধ্যমে পাট খাতে বিনিয়োগের সিদ্ধান্ত নিয়েছে। তবে অল্প সময়ে নতুন কোম্পানি খোলা সম্ভব নয় বিধায় ফরচুন সুজের নামে দরপত্র জমা দেয়া হয়েছিল।

প্রতিষ্ঠানটির চেয়ারম্যান মিজানুর রহমান জানিয়েছেন, বরিশালকেন্দ্রিক এ প্রতিষ্ঠানের কারখানা রয়েছে দেশের বিভিন্ন জেলায়। পদ্মা সেতুর দ্বার খুলে যাওয়ায় বরিশাল অঞ্চলের ব্যবসা-বাণিজ্যে কী ধরনের পরিবর্তন আসছে, তা বলা যাচ্ছে না। এতদিন আমাদের পণ্যবাহী ট্রাকগুলো চট্টগ্রাম বন্দরে নেয়ার সময় বিভিন্ন ফেরিঘাটে অনেক সময় দিনের পর দিন আটকে থাকত। এ কারণে অনেক সময় আমাদের শিপমেন্ট বাতিল করতে হয়েছে। এতে আর্থিকভাবে লোকসানের মুখে পড়েছি। ভোগান্তি এখন লাঘব হয়েছে। পদ্মা সেতু উদ্বোধনের পর বেশ সুবিধা হচ্ছে। আশা করছি, শিপমেন্ট বাতিলের মতো পরিস্থিতিতে আর পড়তে হবে না।

বাংলাদেশ ৫০ বিলিয়ন ডলার রফতানির মাইল ফলকে পৌঁছার ব্যাপারে ফরচুন গ্রুপের চেয়ারম্যান মিজানুর রহমান বলেন, দক্ষিণবঙ্গ থেকে এর অংশীদার হতে পেরে নিজেকে সৌভাগ্যবান মনে করছি। দক্ষিণ এশিয়ায় আজ ভারতের পরই রফতানি ৫০ বিলিয়ন ডলার অতিক্রম করা আমাদের বিশেষ অর্জন। আশা করছি শিগগিরই আমরা রফতানিকারক হিসেবে হাই প্রডাক্ট রফতানি করে ভারতকেও পেছনে ফেলতে সক্ষম হব

[Joel Ahmed]

https://www.thedailystar.net/business/economy/news/export-leather-goods-hits-decade-high-3065886

Economy

Export of leather goods hits decade high

Sukanta Halder

Thu Jul 7, 2022 10:30 AM Last update on: Thu Jul 7, 2022 11:31 AM

Exports of leather, leather goods and footwear surged in fiscal 2021-22 as importing countries reduced their dependence on China. Photo: Star/file

Leather, leather goods and footwear exports from Bangladesh reached a 10-year-high in the just concluded fiscal year thanks to the arrival of orders that shifted away from competitors, according to industry players.

Exports were at a record high of $1,245 million in fiscal 2021-22 as importing countries reduced their dependency on China and other producing nations amid the Covid-19 pandemic.

Besides, there are new products and innovations in local industry, they said.

Exports were at their lowest point in the last decade during fiscal 2012-13, when $979 million worth of leather products were shipped abroad. The last time exports came close to the current record was in fiscal 2016-17, when international buyers purchased $1,234 million worth of leather products from the country, as per data from the Export Promotion Bureau.

Ziaur Rahman, managing director of Bay Footwear, said several orders from Indonesia, Vietnam and Cambodia had shifted to Bangladesh due to the coronavirus crisis, specifically during the second wave in 2021.

"That's why Bangladesh has seen such an unusual hike in exports but this will decrease to some extent in the coming days," he added.

Rahman then said growth in the next few quarters could be slow as their main buyers are from the US, where inflation has increased considerably.

"There is also over stocking as many products have remained unsold since the start of the pandemic."

Md Saiful Islam, president of Metropolitan Chamber of Commerce and Industry, said the last two fiscal years were an unusual time for Covid-19.

"But we did not face any factory disruptions during pandemic and this gave a positive message to customers."

Buyers are reducing their dependence on China considering the current state of the global economy, which is recovering from Covid-19 at a time when the Russia-Ukraine war has disrupted the global supply chain.

"And we got some of the positive benefits," added Islam, also managing director of Picard Bangladesh.

Islam, also a former president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, went on to say that new innovations have been introduced in the domestic industry.

"We have developed new products and I think that's why we have had good growth." Islam said every single factory in the industry has increased their production capacity and efficiency.

Shaheen Ahamed, chairman of the Bangladesh Tanners Association, said international buyers have increased their selling prices by 20-25 per cent at retail and so, this had a positive impact on export receipts.

There are about 60 local leather goods companies in Bangladesh, including Apex Footwear, Jennys Shoes and Bay Footwear, that export various items mainly to Japan, the EU and to some extent, the US.

Leather goods are one of the top three highest export earning sectors of the country.

Meanwhile, the government is drawing up a ten-year perspective plan that includes a target to increase the leather sector's export earnings to $10-$12 billion by 2030.

The global leather goods market size is anticipated to reach $624.08 billion by 2028, registering a CAGR of about 5.9 per cent over the forecast period, according to a report by Grand View Research.

[Joel Ahmed]

দেশের একমাত্র সনদধারী চামড়াজাত পণ্য রপ্তানিকারক রিফ লেদার

https://www.facebook.com/watch/?ref=saved&v=4604081549694389

 

[Joel Ahmed]

https://www.tbsnews.net/economy/industry/hazaribagh-now-promising-hub-diversified-leather-products-467730

Joynal Abedin Shishir

30 July, 2022, 12:15 pm

Last modified: 30 July, 2022, 02:34 pm

Hazaribagh now a promising hub of diversified leather products

Many who became jobless during the tannery relocation process have turned their lives around after they started producing and selling leather goods

 

Hazaribagh has been transformed into a diversified leather products hub from a rawhide tannery zone in the span of only five years since the tanneries were shifted to Savar. 

The hub now manufactures products such as shoes, slippers, jackets, office bags, wallets, purses, belts, school bags and ladies' handbags and registers an annual turnover of Tk100 crore.

According to the Hazaribagh Leather Shoes and Goods Association, around 150 small and medium factories are in operation in Hazaribagh, the total number of factories in the country being 400.

Tania Wahab, a successful businesswoman in Hazaribagh, launched her factory – Athene – in 2005 with only one machine and one worker in a 100 square-foot room.

Today her factory has grown to 6,500 square feet and employs more than 200 full-time and contractual workers. Tania produces leather jackets, shoes, wallets, vanity bags, etc. Her annual turnover now stands at more than Tk4 crore.

"After the tanneries were shifted in 2017, leather goods manufacturing started to boom significantly," she said. 

"The demand for locally manufactured products has largely increased in the domestic market," she added.

Tania also supplies products to various reputed shoe brands, among which are Bata, Apex and Bay, as well as exports 10% of her products to Italy and Canada.

SALAM's entrepreneur Manager Mazharul Islam told The Business Standard, "The number of customers in the hub has been increasing steadily. During Eid, we usually sell TK12-15 lac worth of products. We are committed to produce 100% leather goods and sell at a low profit margin. That's why our products' reputation has been spreading across the country."

Mamunur Rashid, another entrepreneur, started his leather goods brand "Time" after the tanneries shifted in 2017.

Some 25 workers are employed in his factory and his annual turnover is TK60-70 lakh.

There are small and large leather goods shops on both sides of Sher-e-Bangla Road in Hazaribagh. These shops sell products at both wholesale and retail prices. After the tanneries moved out, these shops came up.

"The tanneries operated in Hazaribagh for 66 years until they were shifted in 2017. Many factories also closed down due to complications regarding the relocation. Many also ended up becoming jobless at the time," said Mamunur Rashid.

"They slowly started the business of selling leather products by renting one or two rooms in an abandoned factory building at low rent. Now all of them are financially solvent," he said, adding that he easily sells Tk3-4 lakh worth of products per month.

Suman, the owner of a shop named SP Leather, said, "Traders at the famous markets in Dhaka buy our products at low prices and sell them at much higher prices."

"There are not that many sales at the retail level due to a lack of promotion and lack of awareness about the place. But we know this situation will change," said a self-assured Suman.

Leather-BD.com's salesman Junied Ahmed told The Business Standard, "Compared to previous Eid season, sales were higher this time as the prices of our products are the lowest compared to other markets." 

Maksuda Khatun and her husband took a gamble to try their luck in the leather industry. The couple arranged some Tk15 lakh by selling ornaments and resorting to family savings to set up a leather goods factory. That is how Shabab Leather began its journey in August 2016 with five employees.

Shabab Leather, also located in Hazaribagh, now has 48 regular employees and mainly produces bags, wallets, long wallets, belts, jackets, key rings, files and all other corporate items. These products have now spread beyond the country's borders to the international market of Japan, Switzerland, Morocco, the Netherlands, Malaysia and Canada.

Maksuda recently received corporate orders for 6,000 bags, each costing Tk6,500. She has also received an order from Switzerland for 4,000 pieces of wallets, and 2,000 pieces of key boxes.

"I dream of gradually expanding my business. I used to produce very little, but now my factory produces 10,000 pieces of leather goods a month," she said.

"Hopefully, at some point I will be able to reach the production target of 30-40 thousand pieces a month, because Hazaribagh is becoming popular day by day as a leather products hub."

Mujibur Rahman Mujo, president of Hazaribagh Leather Shoes and Goods Association, said that after the tanneries moved, the places they had occupied were left empty for many days.

"Many who opened shops and businesses here were involved in this industry in various ways. Some were workers, some were managers, and some were technicians or engineers," he said.

"Apart from this, based on the supply of leather processed in Hazaribagh, many businessmen have moved here from the leather product manufacturing factories in Chawkbazar and Keraniganj. Many of those who lost their jobs in the tannery relocation process, who did not go to work in Savar, are trying to settle here," said Mujibur Rahman, adding that the number of shops has increased rapidly as a result.

Hazaribagh Leather Shoes and Goods Association secretary Sakwat Ullah told The Business Standard, "At present demand for 25% of leather goods is met by products manufactured in this hub. We are wholesalers countrywide. If we get support from the government we will be able to supply TK1500 crore worth of leather goods."

[Joel Ahmed]

https://www.tbsnews.net/bangladesh/initiative-turn-savar-tannery-solid-waste-products-487730

TBS Report

31 August, 2022, 10:25 pm

Last modified: 31 August, 2022, 10:25 pm

Initiative to turn Savar tannery solid waste into products 

The Dhaka Tannery Industrial Estate Waste Treatment Plant Company Limited has initiated a plan to turn solid waste from the Savar Industrial Industry into saleable products.

The treatment plant company, formed by the government in 2019 to manage waste from the tannery industry in Savar, has asked interested by-product manufacturers to submit applications to this end by 28 September 2022.

Local-foreign joint ventures and companies with automated machinery will be prioritised in this regard, according to people familiar with the matter.

Mostaque Ahmed, managing director of Dhaka Tannery Industrial Estate Waste Treatment Plant Company, told The Business Standard, "Solid waste is a threat to the environment but it is possible to produce by-products from this waste."

Two types of waste are produced from leather processing in Savar—liquid and solid. The liquid waste ends up in rivers after being treated at the Central Effluent Treatment Plant, while the solid waste is dumped on open grounds.

The industry produces 64000 tonnes of solid waste every year and has reached beyond the authorities' capacity to manage, resulting in unchecked mixing with river water.

This is not the first time such recycling initiatives have been taken to manage the waste from the tanneries in Savar. 

"A few companies have shown interest in processing the [solid] waste before, but not much progress was made to that end. Now, we have decided to sell the waste at a lower price," said Mostaque Ahmed.

According to experts, solid waste from raw leather processing can be used to make several by-products, including animal feed, biogas, compost fertiliser, gelatine, glue, leather fibre board, paper, wallets, bricks, and even tiles.