An Internship Report

On

“Export procedures of Garment Products

&
A case study of Triton Textile Bangladesh”

Prepared For:

Professor. Rafiqul Islam

Department of Business and Economics
Daffodil International University

Prepared By:

Md. Wasi Uddin Abdullah

Id: 071-11-1608
Department of Business and Economics
Daffodil International University

Daffodil International University

102, Sukrabad, Mirpur Road, Dhaka-1207.

Date of Submission: May 16, 2010

 DAFFODIL INTERNATIONAL UNIVERSITY

CERTIFICATE OF APPROVAL

This is to certify that Md. Wasi Uddin Abdullah ID No: 071-11-1608 a student of BBA
program Daffodil International University worked under my supervision during his
internship placement with Triton Textile, Bangladesh Liaison Office.

I am pleased to state that Md. Wasi Uddin Abdullah worked hard in preparing this
report. The data and findings presented in the report seem to be authentic.

Md. Wasi Uddin Abdullah possesses a good moral Character and pleasing personality. I
wish him all success.

Rafiqul Islam
Professor
Faculty of Business & Economics
Daffodil International University
May 16, 2010

To
Professor Rafiqul Islam
Department of Business & Economics
Daffodil International University

Subject: Letter of Transmittal

Dear Sir,

I am very glad to submit this report to you on the “Export procedures of Garment
Products & A case study of Triton Textile Bangladesh . The report deals with a brief view
of garments industry of Bangladesh and current scenario of a multinational business
enterprise evolved with garments business in Bangladesh.

It has been a great experience of working on this report and I have got a glimpse of a
thrust sector of Bangladesh. I have tried my best to make this report a high quality one.
Some data, which were available, are included in this report. There may be some lack of
sufficient data that I could not collect from desire authority.

I thank you for any supplementary interoperation on clarification that may be required. I
hope this report will satisfy you & meet the requirements for the Bachelor of Business
Administration program (BBA). I would like to request you to accept my report &
oblige thereby.

Sincerely Yours

________________________________
Md. Wasi Uddin Abdullah
Id: 071-11-1608
Program: BBA
Major in Finance
Department of Business & Economics
Daffodil International University
 ACKNOWLEDGMENT

At the very beginning, I would like to express my deepest gratitude to almighty

ALLAH for giving me the strength and composure to finish the report.

It certainly it would not have been possible without the help of many people. I would
like to acknowledge my appreciation to all those who had helped during the process.

First, I must express my gratitude to Professor Rafiqul Islam of Daffodil International

University- my internship advisor, who helped me to choose a topic that was of interest
and could be of use to my organization. His guidance in helping me to separate the
important and necessary details from the unnecessary certainly helped me to stay on the
correct track (and reduced my work somewhat).

My heartfelt gratitude and respect goes my mentor Mr. Iftekhar Amin Chowdhury
for his endless effort for me and Mr. Mofaqkharul Islam Biplob, Coordinator Kiabi
Sweater department of Triton Textile Bangladesh as well as entire merchandising
team specially Mr. Khairul Islam, Mr. Shadiqul Islam and Mr. Rubayat Hossain .
Their guidance during my exposure to the work force had been invaluable and helped
me adapt to the work environment. Furthermore, they assigned responsibilities to me
and allowed me enough latitude to do it my own way and learn for my own self.

My gratitude goes out to all my friends who helped during the difficult times when I felt
like work was hard and ready to give up. Lastly, I would like to thank my family who
has been with me during all my life. They have been extremely patient and always
willing to sacrifice when it came to my studies and now work. Without such a
wonderful family, I do not think I could have withstood all these four, extremely
difficult, years of university, let alone complete this report.
Executive Summary
The Bachelor of Business Administration is designed to meet the needs of the students
who want to develop their career as executives in the fields of different business areas
as well as teaching and research positions in different institutions. To obtain this degree,
Internship program is an integral part.

The report is prepared on the basis of 3 (Three) months and onward practical
experience at the Triton Textile Bangladesh as well as the touch of Garments Sector of
Bangladesh.. The internship program helped me a lot to learn about the practical
environment and situation of a Garments Sector and also make up a bridge between the
theoretical and practical aspects.

This report is organized as following: part-one I have tried to give an overview of

Garments Industry, in part two a profile of Triton Textile Bangladesh, in third part a
general view of export procedure and last part I have tried to find out some problem and
try to my view opinion as recommendation.
Contents in Brief

Chapter One : Introduction;

Chapter Two : An Overview of Garment Industry of

Bangladesh;

Chapter Three : Corporate Profile of Triton Textile Bangladesh

Chapter Four : Export Procedures of a Garments Industry

Chapter Five : Problem Identification;

Chapter Six : Recommendations;

Chapter Seven : Conclusion.

 Table of Contents

Chapter One Introduction 01

1.1 Origin of the report 01
1.2 Objective of the study 01
1.3 Study Methodology 02

Chapter Two An Overview of Garment Industry of Bangladesh 03

2.1 History of RMG Industry in Bangladesh. 04
2.2 Product Tree 05
2.3 Characteristics of RMG Sector in Bangladesh 09
2.3.1. Growth in the Industry 09
2.3.2 Trading Pattern 10
2.3.3 Growth Trend over the Years 11
2.3.4 List of Top Players in the Market 13
2.4 The Changed Market Scenario 14
2.4.1 At the Global level 14
2.4.2 Post-MFA Development Strategy & Assistance 17
for RMG sector
2.5 SWOT Analysis 24
2.6 VALUE CHAIN 24

Chapter Three Corporate Profile of Triton Textile Bangladesh 26

3.1 Triton Textile Bangladesh at a 26
glance 26
3.2 Corporate Value 27
3.3 Team Member of Triton Textile 28
3.4 Organizational structure of Triton 29
Textile Bangladesh 30
3.4.1 Organogram of Merchandising Team 31
3.4.2 Organogram of Quality Assistance Team
3.4.3 Organogram of Compliance Team 31
34
3.5 Product Range 35
3.6 Suppliers in Bangladesh 35
3.6.1 Competitive Advantage 35
3.7 Supplier Base 37
3.7.1. Code of Condact
3.7. 2 Deal With Child labor

Chapter Four Export Procedures of Triton Textile Bangladesh 39

4.1 Approaches of Clients 39
4.2 Mode of Inquiry or Order 39
Confirmation 40
4.2.1 Direct Inquiry 40
4.2.2 Auction 41
4.2.3 Difference between Dutch and English
Auction 41
4.3 Order Follow Up Process 41
4.3.1 Merchandising Department 42
4.3.2 Quality Assistance Department 42
 4.3.3 Compliance Department 42
4.3.4 Shipping Department

Chapter Five Problem Identification; 43

5.1 External or Macro Environmental Problems 43
5.2 Internal or Organizational Problem 45

Chapter Six Recommendations; 46

6.1 Recommendation for External Problems 46
6.2 Recommendation for International Problems 46

Chapter Seven Conclusion 48

Appendix 48
 Chapter One: Introduction

1.1 Origin of the report:

Internship for three months in private business organizations, government offices,

public corporations, Bank or other not- Bank but financial institution is an integral part
of the BBA program of the business faculty of the Daffodil International University.
The objective of the program is to expose the students in the organizational work
situation. Each student is required to undergo the program & prepare a report according
to a format specified by the supervision teacher.

As a regular student of Bachelor of Business Administration (BBA) program, is

requires an internship of three months attachment with an organization followed by
writing and submission of a report. This report is end result of an internship attachment
with one of the top graded Multinational Business Enterprise evolved with garments
sourcing round the world, Triton Textile Bangladesh. As per the advice &
recommendations of the honorable supervisors Mr. Professor Rafiqul Islam the main
concentration of the report is Garment Industry of Bangladesh particular reference to
Export Procedure. This report focuses on the practices of export system .This report
will obviously increase the existing idea of export procedure rendered by the different
Garments Industries.

1.2 Objective of the report:

The objective of the Internship report is to gain practical knowledge about brief idea of
Garments Sector, Corporate profile of Triton Textile Bangladesh Ltd with special
attention to the export procedures of the garments industries.
1.3 Study Methodology:

The study requires a systematic procedure from selection of the topic to preparation of
the final report. To perform the study, the data sources were to be identified and
collected; to be classified, analyzed, interpreted & presented in a systemic manner &
key points were to be found out. The over all process of methodology has been given as
below:
Selection of the topic: The topic of the study was assigned by the respected supervisor.
While assigning the topic necessary recommendations and suggestions were provided
by the supervisor to make this internship report a well organized and perfect one.

A. Identifying data sources: Essential data sources, both primary and

secondary, were identified that would be needed to carry on the study
and complete this report.
(i) The primary data sources:
 Face to face conversation with the officers;
 Practical desk work;
 Relevant file study as provided by the concerned officers.
(ii) Secondary data sources:
 Different circulars issued by the BGMEA
 Market review of the Triton Textile Bangladesh Ltd.
 Company profile of the Triton Textile Bangladesh Ltd.

B. Data collection: primary data were collected through direct and face to
face interview of the different personnel of the Triton Textile
Bangladesh Ltd.
C. Classification, analysis, interpretation and presentation of data: Some
pictorial tools are used in this report for analyzing the collected data and
to classifying those to interpret them in a clear and understanding
manner.
 D. Findings of the study: The collected data were scrutinized and were
pointed out and shown as findings. Few recommendations are made for
improvement of the current situation.
E. Final report preparation: on the basis of the suggestion of the
supervisor, some corrections were made to present the paper in this
form.

1.4 Limitation:

Some of the limitations of the report are:

1. Personal busyness of the officers at the time of collecting primary data.

2. Accuracy of the secondary data depends upon the accuracy of the

secondary source as cross checking was not possible

3. Due to confidentiality the garments policy restricts disclosing some

important data.

4 Due to lack of information in BGMEA website I could not get updated valuable
information from concerned authority.
 Chapter Two:
An Overview of Garment Industry of Bangladesh

2.1 HISTORY OF RMG INDUSTRY IN BANGLADESH

The hundred percent export-oriented RMG industry experienced phenomenal growth

during the last 15 or so years. In 1978, there were only 9 export-oriented garment
manufacturing units, which generated export earnings of hardly one million dollar. Some
of these units were very small and produced garments for both domestic and export
markets. Four such small and old units were Reaz Garments, Paris Garments, Jewel
Garments and Baishakhi Garments. Reaz Garments, the pioneer, was established in 1960
as a small tailoring outfit, named Reaz Store in Dhaka. It served only domestic markets
for about 15 years. In 1973 it changed its name to M/s Reaz Garments Ltd. And expanded
its operations into export market by selling 10,000 pieces of men's shirts worth French
Franc 13 million to a Paris-based firm in 1978. It was the first direct exporter of garments
from Bangladesh. Desh Garments Ltd, the first non-equity joint-venture in the garment
industry was established in 1979. Desh had technical and marketing collaboration with
Daewoo Corporation of South Korea. It was also the first hundred percent export-oriented
company. It had about 120 operators including 3 women trained in South Korea, and with
these trained workers it started its production in early 1980. Another South Korean Firm,
Youngones Corporation formed the first equity jointventure garment factory with a
Bangladeshi firm, Trexim Ltd. in 1980. Bangladeshi partners contributed 51% of the
equity of the new firm, named Youngones Bangladesh. It exported its first consignment
of padded and non-padded jackets to Sweden in December 1980. Within a short period,
Bangladeshi entrepreneurs got familiar with the world apparel markets and marketing.
They acquired the expertise of mobilizing resources to export-oriented RMG industries.
Foreign buyers found Bangladesh an increasingly attractive sourcing place. To take
advantage of this cheap source, foreign buyers extended, in many cases, suppliers' credit
under special arrangements. In some cases, local banks provided part of the equity capital.
The problem of working capital was greatly solved with the introduction of back-to-back
letter of credit, which also facilitated import of quality fabric, the basic raw material of
the industry. The government assigned high priority to the development of RMG industry.
Till the end of 1982, there were only 47 garment manufacturing units. The breakthrough
occurred in 1984-85, when the number of garment factories increased to 587. The number
of RMG factories shot up to around 2,900 in 1999. Bangladesh is now one of the 12
largest apparel exporters of the world, the sixth largest supplier in the US market and the
fifth largest supplier of T-shirts in the EU market. The industry has grown during the
1990s roughly at the rate of 22%. In the past, until 1980, jute and jute goods topped the
list of merchandises exported from Bangladesh and contributed more than 50% of the
total export earnings. By late 1980s, RMG exports replaced jute and jute goods and
became the number one in terms of exports.

2.2PRODUCT TREE

Bangladesh exports about 63 items to different apparel markets. These products include
suits, jeans, embroidery cloths, shirts, trousers, children wares, sweaters, knitwear etc.
However, major portions of Bangladesh's exports are shirts, blouses, T-shirt, pullovers
and these products are produced mainly to cater middle and lower market segments of US
and EU. It needs to be mentioned here that Bangladesh produces a very limited categories
of expensive and fashion oriented garments. Main apparel items exported from
Bangladesh is shown in the tree – diagram drawn below:
Knitwear:

The knitwear sub-sector in Bangladesh has made phenomenal progress in the past 10-12
years. In 2002-2003 this sub-sector has made 25.3% contribution to the country’s total
export. The fast growth of this sector is resulted from abundant and cheaply available labor
and low investment requirement, high demand for knitwear variety in the USA and EU
countries. The following table shows the export of knitwear from Bangladesh:

Table: 1 Knit Export as a percentage of total National Export Value in thousand

(‘000) USD

Woven:

In the year 1992-93 the woven export was 86% of the total apparel export of the country,
the rest 14% being the knit apparel. During the 80s and early 90s woven export dominated
the total apparel export. It still contributes the major portion but the dominance has been
substantially reduced by the phenomenal growth in knit garments export. Many countries of
the world including the USA, Canada, Japan and Europe are prone to cold weather through
out the year and people living in these countries wearing sweaters as a basic item of
clothing. Sweaters are traded worldwide under knitwear (HS Code 6110) which includes
sweater, pullovers, vests, jerseys. These products are mostly exported from the countries of
 Asian region because of the low production cost where: the China occupies the largest
market share. While the export oriented garments sector extends back almost 24 years, the
growth of export oriented sweater industries in Bangladesh is a fairly recent phenomenon.
According to BGMEA sources out of a total of 2,429 Ready Made Garments Woven
Knitwear garments industries in the country only 175 industries are regularly
manufacturing sweaters. The annual export of sweater from Bangladesh shows an
increasing trend. The following table shows the main apparel items exported from
Bangladesh:

Table 2:
VALU OF QUANTITY OF TOTAL APPERAL EXPORT FISCAL YEAR BASIS

(VALUE IN MN. US$ UQANTITY IN MN DOZEN)

TOTAL APPERAL EXPORT
TOTAL APPERAL EXPORT IN MN. US$`
YEAR (IN MN DZ)
WOVEN KNIT SWEATER TOTAL WOVEN KNIT TOTAL
1995-96 1948.81 527.91 70.41 2547.13 48.82 23.18 72.00
1996-97 2237.95 566.7 196.60 3001.25 53.45 27.54 80.99
1997-98 2844.43 641.22 296.29 3781.94 65.59 32.60 98.19
1998-99 2984.96 763.32 271.70 4019.98 64.79 36.66 101.45
1999-00 3081.19 943.15 325.07 4349.41 66.63 45.27 111.90
2000-01 3364.32 1018.64 476.87 4859.83 71.48 52.54 124.02
2001-02 3124.82 941.1 517.83 4583.75 77.05 63.39 140.44
2002-03 3258.27 1075.45 578.37 4912.09 82.83 69.18 152.01
2003-04 3538.07 1531.71 616.31 5686.09 90.48 91.60 182.08
2004-05 3598.20 1926.35 893.12 6417.67 92.48 120.13 212.39
2005-06 4083.82 2772.97 1044.01 7900.8 108.82 165.02 273.84
2006-07 4657.63 3305.51 1248.09 9211.23 133.08 199.54 332.62
2007-08 5167.28 4058.43 1427.09 10699.8 147.43 241.60 389.03
2008-09 5918.51 4570.64 1858.62 12347.77 169.59 290.92 460.51

Data source: Export Promotion Bureau Compiled by BGMEA

The following table shows the trend of apparel product export in the international
market.

Table 3:

COMPARETIVE STATEMENT ON EXPORT OF RMG AND TOTAL EXPORT

OF BANGLADESH

EXPORT
TOTAL EXPORT OF % OF RMG’S
YEAR OF BANGLADESH (IN MILLION TO
RMG US$) TOATLEXPORT
(IN MILLION US$)
1983-84 31.57 811.00 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.70 32.45
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.90 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.90 61.40
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.20 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.20 75.61
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33

Data source: Export Promotion Bureau Compiled by BGMEA

2.3THE CHARACTERISTICS OF RMG SECTOR IN BANGLADESH

2.3.1Growth in the Industry

The growth in the RMG sector in Bangladesh can be explained by combination of

favorable factors, the abundant availability of cheap but easily trainable labor force and
the policy incentives, particularly bonded warehouse facilities for duty free import of
inputs. Total number of garment manufacturers in Bangladesh as at the close of fiscal
year 2001-2002 was around 3,618. Number of new entrants in this industry followed a
steady trend over the last decade. People from all walks of life have undertaken this
venture mainly due to the following reasons:

• Low capital intensive

• Technological involvement is not very high
• Easy-to-manage operations
• Opportunities elsewhere is very limited

Table 4:
Table 5:

Data source: Export Promotion Bureau Compiled by BGMEA

2.3.2 Trading Pattern

Traditionally export in the RMG industry has been done through back to back L/C.
However, presently this tradition is changing. The concept of "Open Account Trading"
is now in place. Under this situation, large buyers aside themselves from arranging
 export L/Cs for cost saving purpose. The bargaining power of these large buyers bind
the exporters from LDCs like Bangladesh to enter into a contract under which no export
L/C is issued and payment is made directly after receiving satisfactory quality shipment
of goods. Here lies the risk of performance and accountability. If the buyer is not
reputed enough, problems may arise. In Bangladesh, large RMG factories tend to
maintain direct contact with the large buyers to safeguard themselves from unforeseen
accountability risks.

2.3.3Growth Trend over the Years

Graph shown in the figure below shows the growth trend of the RMG sector in
terms of export value and quantity:

Table 6:

Source: EPB and BGMEA [* the year is July 2004 to April 2005]
Table 7:

MAIN APPERALITEM EXPORTED FROM BANGLADESH

(VALUE IN MN US $)

YEAR SHIRTS TROUSERS JACKETS T-SHIRT SWEATER

1995-96 807.66 112.02 171.73 366.36 70.41
1996-97 759.57 230.98 309.21 391.21 196.60
1997-98 961.13 333.28 467.19 388.50 296.29
1998-99 1043.11 394.85 393.44 471.88 271.70
1999-00 1021.17 484.06 439.77 563.58 325.07
2000-01 1073.59 656.33 573.74 597.42 476.87
2001-02 871.21 636.61 412.34 546.28 517.83
2002-03 1019.87 643.66 464.51 642.62 578.37
2003-04 1116.57 1334.85 364.77 1062.10 616.31
2004-05 1053.34 1667.72 430.28 1349.71 893.12
2005-06 1056.69 2165.25 389.52 1781.51 1044.01
2006-07 943.44 2201.32 1005.06 2208.9 1248.01
2007-08 915.6 2512.74 1181.52 2765.56 1474.09
2008-09 1000.16 3007.29 1299.74 3065.86 1858.62

Table 8:

VALUE in Million US $

All Countries
Woven Gro Knit Total Growt
Month Growt
(In Year) wth (In Year) h Rate
(Woven+Knit) h
Rate
2008-09 2009-10 Rate 2008-09 2009-10 2008-09 2009-10
July 547.30 521.78 -4.66 640.50 651.85 1.77 1187.80 1173.63 -1.19
August 485.90 490.09 0.86 569.64 552.46 -3.02 1055.54 1042.55 -1.23
September 492.08 364.76 -25.87 620.94 449.63 -27.59 1113.02 814.39 -26.83
October 292.22 307.76 5.32 357.04 440.46 23.36 649.26 748.22 15.24
November 487.81 439.78 -9.85 548.53 487.28 -11.17 1036.34 927.06 -10.54
December 500.44 458.49 -8.38 503.98 426.27 -15.42 1004.42 884.76 -11.91
January
February
March
April
May
June
Total 2805.752582.66 -7.95 3240.63 3007.95 -7.18 6046.38 5590.61 -7.54
Data source: Export Promotion Bureau Compiled by BGMEA
 2.3.4List of Top Players in the Market

The following is the list of Knitwear Manufacturer who leads the market:
 Following is the list of leaders in woven Product Manufacturing

2.4 THE CHANGED MARKET SCENARIO

2.4.1At the Global level:

The country exports about USD 5.5 billion worth of RMG products or 2.6 per cent of
the world’s USD 195 billion RMG market. This market has been estimated to reach
USD350 billion by 2007. The challenge that Bangladesh faces is two-pronged. It has to
retain its present 2.6 per cent market share and then also try to maintain it in fast
expanding markets by competing with the world. Indeed, it is a daunting agenda.

Bangladesh should continue to press for zero tariff access to the US market. About
USD 310.0 million worth of tariff is imposed annually on Bangladesh’s export to the
US market. On the process of on going negotiation, BGMEA, at a reception hosted by
them to Betsy Stillman, special trade policy advisor for South Asia at the office of
USTR reiterated the demand for Duty free access to US market on July 18, 2004. Mr.
Stillman suggested continuous lobbying with the US government for getting the duty-
free facility. (July 19, 2004; the daily Star)
 CPD modeling exercise shows that a zero tariff access is likely to substantively
enhance Bangladesh’s competitive strength in US market and increase exports by about
USD 1.0 billion or 50%. Zero tariff access to Canadian market in 2001 has helped
Bangladesh to increase her apparel export from USD 105.8 million in 2002 to D 162.8
million in 2003, a growth of about 54%.

Bangladesh has sought a 30 percent increase in market share of all primary and
manufactured products of least developed countries (LDCs) in EU, the USA and Japan
in line with the commitment made in the Tokyo Round of GATT. To overcome the
possible disaster in the LDC exports after the expiry of MFA (Multi-fibre arrangement)
regime in 2004, Bangladesh has made the appeal to consider this, official sources said.
It was feared that about 30 to 50 percent of the garment factories in Bangladesh and
other LDCs will be closed down in the post-MFA era throwing a large number of
workers mostly women out of jobs. In last six months after 1st January 2005 no record
of such mishap in the country has seen.

"So if the market share of LDCs is not retained they will face serious economic and
social problems and the existing poverty condition will further be aggravated,"
commerce minister Altaf Hossain Chowdhury said in separate letters to US Trade
Representative Robert B Zoellick, EU Trade Commissioner Pascal Lamy and Japanese
Minister for Economy, Trade and Industry Shoichi Nakagawa. The commerce minister
in the letters sought special and differential treatments for primary and manufactured
products including ready-made garment frozen food, tea, Raw Jute and Agricultural
products, sources in the commerce ministry said. Over 90 percent of the country’s total
exports go to these three markets, with EU topping the list following by the US.

"The LDCs including Bangladesh will benefit much should there be further prolonging
of the transition period i.e. an extension of the ATC (agreement on textile and clothing
beyond 2004. It is certain that the LDCs will loose guaranteed markets. They will be
forced to compete with suppliers from countries with backward linkages and skilled
labor force such as Hong Kong South Korea, India, Pakistan and particularly China,"
the letters read.

Awarding such treatment in favor of LDCs will not be against the spirit of the World
Trade Organization, agreed upon by the member countries at the Tokyo Round of the
General Agreement on Tariff and Trade in 1979, the commerce Minister pointed out.
"Notwithstanding the provision of Article 1 of the general agreement contracting parties
may accord deferential and more favorable treatments to developing countries without
according such treatment to other contracting parties" the GATT signatories decided at
the Tokyo Round.

The Commerce Minister felt the need for a decisive strategy to raise the LDCs market
share of primary and low-tech labour intensive manufactured goods by 30 percent letter
to John McCain, US senator and Chairman, senate committee on commerce, science
and transportation sought duty-free market access in the US for ready-made garments to
help Bangladesh avert possible debacle after 2005, official sources said. In the letter, he
also urged US 7 government to include the name of Bangladesh in the list under its
Trade Development Act (TDA) 2000 which provided duty-free to 72 sub Saharan and
Caribbean basin countries to the US market.

Bangladesh export to the US fell about 12 percent over the last two years because of
TDA 2000 and signing of a number of bilateral and regional free trade agreements
between the US and some apparel producing countries, Sources in the commerce
ministry told New Age. The United States International Trade Commission in a recent
study said the fate of Bangladesh RMG export to the US will face uncertainty after
2004. Another study report by the American Textile Manufacturers Institute in
December 2003 cautioned that Bangladesh will lose 1.05 billion dollars in US market
by 2006 due to elimination of Multi-Fibre Arrangement from 2005.

2.4.2 Post-MFA Development Strategy & Technical Assistance for

RMG sector

The warnings for Post MFA era were: Final report on “Post-MFA Development
Strategy & Technical Assistance for RMG sector” prepared by Gherzi Textile
Organization, Switzerland suggested that Bangladesh will need to set up 45 more
spinning mills to meet the challenges after 2004.

A meeting of the Commerce Ministry on Post-MFA observed, “Studies by the

international agencies, including IMF and World Bank and local think tank Centre for
Policy Dialogue, however, apprehended a severe negative impact on the RMG sector
and million of unemployment during the quota free regime. But the reality is that
neither single factory was closed down nor a single person was jobless in the first three
months after the decade old MFA expired December 31, 2004. Even the Ministry could
not utilize a fund worth Tk 200 million that was allocated to train and rehabilitate
retrenched workers by the Export Promotion Bureau (EPB) as no jobless worker sought
assistance from the special cell under the EPB during the last three months and as such
the Commerce Ministry finally returned the fund to the Finance Ministry. However,
business leaders of the RMG and textile sector, donor agencies, high officials of the
different ministries, who attended the meeting noted that no firm conclusion should be
drawn evaluating the scenario of such a short period of three months. The Commerce
Ministry is preparing the post MFA action plan worth USD 40 million, keeping in mind
the long-term effect of the quota free era. According to EPB export statistics, export of
knitwear and woven garments have experienced an increase of 38.05% and 6.09%
respectively in February in 2005 over the corresponding period of previous year.
(Source: The Financial Express, April 2005)
In the post MFA period after 2004 the import cost of yarn or fabrics is assumed to be
very high, consequently backward linkage would be sine qua non. This is a token of
Government’s concern for strengthening Backward Linkage, which in turn, justifies the
viability of new spinning units.

The freeing of quota from January 2005 would result in additional world trade of USD
100 billion, hence post MFA will offer immense scope of garments export due to
decrease in unit price. Bangladesh may be an important player in the international
market especially in knit garments because of
i. Cheap Labor
ii. Available Gas to produce electricity
iii. Growth of Backward linkage like spinning mills contributing towards the reduction
of lead time from 90-120 days to 30-45 days. With the increase in the volume, the
demand of yarn will increase significantly on the other hand the export of the same to
Bangladesh from India will decline for the following reason: I. WTO provisions do not
allow dumping in a competitive world market II. Increase in price of Indian Yarn due to
withdrawal of subsidies III. Increase in demand by their RMG Industries resulting a
shortfall in supply of yarn. Moreover, to meet the changes of 2004, Bangladesh will
need to set up additional 45 Spinning Mills, 82 Weaving Mills, 81 Knitting & Knit
processing unit, 51 Woven processing unit (Source: Final Report on “Post MFA
development strategy & Technical Assistance for the RMG Sector” prepared by Gherzi
Textile Organization, Switzerland)
Change after January 2005,

Analysis of data shows various interesting findings on RMG industry after the scary
January 2005

Value and Volume of RMG Export:

Source: EPB and BGMEA [* the year is July 2004 to April 2005]
 Trend of Unit Price Change:

Source: EPB and BGMEA [* the year is July 2004 to April 2005]

Source: EPB and BGMEA [* the year is July 2004 to April 2005]
 Export Trend from Bangladesh

Factors which became crucial as quota is phased-out:

 A reduced lead time: from 90-120 days to 30-45 days.

 Ability to service Full Spectrum of Supply Chain Management (Vertical
Capabilities)
 Raising Price Competitiveness (it means either reducing wage arte) or
raising productivity and lowering cost of doing business.
 Ethical Sourcing (Introduce of Compliance stickers: SA-8000, ISO-
9000, ISO-14000; Minimum Wage, Freedom of Association, Working
Environment, Health & Safety concerns).
 Creation of Central Bonded Warehouse.
 Economies of Scale (Small may not be beautiful).
 New concepts Documents on Payment / Documents on Acceptance
(DP/DA) are going to replace LC mechanism.

Present Situation (as on July 2005): (source – Financial Express 23 July 2005)

 The knitwear export registered a 169 percent growth and oven 18

percent in the USA market in the first five months of the quota free era
compared to the corresponding period of last year, reports BDNEWS.
 Up to the month of May 2005 during the last 11 months, knitwear of
USD 370 million and oven worth USD 1.44billion were exported to the
USA.
  During these 11 months exports increased by 78.85 % and 15.47% in
Knitwear and Oven respectively. [EPB]
 Total Knit export to USA in Jan – May 2005 is USD 150 million.

Causes for No Negative Change:(RD, CPD, Mr. Mustafizur Rahman – FE 23 July2005)

 RMG has achieved more expertise than its competitors due to the
depreciation of money.
 High growth rate in US economy, the purchasing capacity of Americans
has risen resulting in positive influence on both the sections.

RMG growth Continues: (FE – 25 July 2005)

 84 new garment units were established since the beginning of the quota
free era in 1 January 2005.
 BGMEA members stood at 4,107 until July 2005 where the same was
3,957 in the corresponding period of the previous fiscal.
 New set up: 13 knit units, 24 sweater factories, 8 jacket factories, 1
dyeing factory and 7 woven and knit factories.

An article published in The Daily Star on Sunday, the 30th July2005 says the country’s
exporters have put the postMFA doomsayers to shame by fetching approximately US$
8.58 Billion in fiscal year (FY) 2004-2005 or nearly US$ 1.0 Billion more than US$
7.60 Billion in FY 04. According to Export Promotion Bureau (EPB) the total export
earnings in the 11 months of FY 05 was US$7.785 Billion. The EPB is yet to finish
calculating June’s export figure but estimates it to be more than US$ 800 Million,
which puts the annual earnings at US$8.585 Billion, slightly more than the targeted
US$ 8.565 Billion.
 Some reliable source has detected following reasons behind the growth although
prominent doomsayers, international monetary fund had forewarned of Bangladesh
losing a quarter of its exports and a huge number of jobs in 2005 due to quota
elimination.
 Bangladesh has become well known in the Global apparel market as
reliable sources of cheap garments. Unit cost of apparel in Bangladesh
is the cheapest in the South Asian region. For Bangladesh the unit cost
of shirts comes to 11 cents, which is 26 cents for India, 43 Cents for
Pakistan and 79 Cents for Srilanka.
 Bangladesh labour force is also skilled for the low end products, which
comprise the bulk of its exports. Another big reason is that China was
unable to immediately cash in on the open market system because of the
special safe guard clause the US imposed on its exports.

Major Product Exported from Bangladesh

Value in Million US$

Year Product Exported Percentage (%)
RMG 12347.77 79.33
Frozen Food 454.53 2.92
Tea 12.29 0.08
Raw Jute 148.17 0.95
Fiscal Year
Chemical Product 421.58 2.71
Jute Goods 373.18 2.40
2008-2009
Leather 177.32 1.14
Agro Products 122.3 0.79
Others 1508.06 9.69
Total 15565.19 100.00

2.5 SWOT ANALYSIS:

2.5 VALUECHAIN

Sources of Raw Materials:

 Cotton and Yarn are imported from different countries of the world.
 This is one of the advantages for our RMG industry.
 Depending on the buyer’s requirement Bangladesh can import raw materials
from best sources.
 Moreover to set up a spinning mill huge investment is required.
 About 70% knit raw materials are produced in Bangladesh
Chapter Three:
Corporate Profile of Triton Textile Bangladesh

3.1 Triton Textile Bangladesh at a Glance:

Since the early 1960s, Triton Textile has provided customers with the widest range of
textile and apparel outsourcing services through centrally located offices across Asia.

Triton Textile is today headquartered in Hong Kong at the heart of Asia from where we
constantly reassess our focus toward the most competitive sourcing markets.

Triton Textile also have an extensive network of offices in China, Bangladesh and
Indonesia that allows us to provide a comprehensive array of fine fabrics and apparel
services from sourcing and development to contracting and logistics services.

Team up with Triton Textile and take advantage of our 40 years of established business
experience and deep ties with the Asia’s garment business

3.2 Corporate Value

As Triton Textile is providing professional guidance in out-sourcing of ready-made
garment production in the most competitive markets in Asia all staff have to work
according to a set of clearly defined corporate values. The corporate value of Triton
Textile is as follows:

Proactive

We do much more than just take initiative… our results are born from the prudent
decisions we make. This enables us to override our personal feelings and focus solely
on values, and as a values-driven company we make things happen...!

Innovative

We are motivated to create, think, and execute in new ways. We take efficiency to far
higher levels than our competitors...
Dedicated

We dedicate ourselves to understanding what our customers want. We then act as

professional experts on their behalf with their suppliers. We are dedicated to realising
our customers’ outsourcing goals in Asia...

3.3Team Member of Triton Textile

All of our offices are managed by experienced professional experts in the garment
sector.

Each office also has a team of skilled, dedicated staff, who speak the local language and
specialize in merchandising, technical support, social compliance and managing export
documentation.

Commercial:

We monitor and keep you abreast on all orders from the time we receive your enquiry
until the final shipment is completed. We also oversee fabrics and accessories sourcing,
recommend qualified suppliers, monitor time schedules and keep the lines of
communication clear between the supplier and you - our honored customer.

Technical :

We at Triton Textile carry out careful inspections of fabrics, accessories and paper
patterns prior to the start of any production run. We also monitor and consult with the
factory during the production process to ensure smooth operations. We are there in
person as well to inspect all packing and material labeling. You ultimately receive
finished and packed garments accompanied by comprehensive and detailed inspection
reports.
Export Documentation :

To ensure smooth L/C negotiations and to guarantee that no orders are shipped until all
documents are correct, we issue inspection certificates to suppliers once all aspects of
the order meet with your exacting requirements.

3.4 Organizational structure of Triton Textile Bangladesh

Organization Chart of Management of Triton Textile Ltd:

3.4.1 Organogram of Merchandising Team

Merchandising team basically works for fabrics and apparel sourcing, development,
contracting with supplier to actual buyer. The merchandising team of Bangladesh is
follows
3.4.2 Organogram of Quality Assistance Team

Quality assistance time plays a vital role for the maintenance of quality level of
exported garments. They provide in line and final inspection at all factories and
facilities of additional home test for maintain quality level. The overview of quality
assistance team is as follows:
3.4.3 Organogram of Compliance Team

The main motive of Triton Textile Bangladesh Compliance Team to develop the
compliance level of new factories to achieve customer required compliance level, and
audit part of the sourcing as well as update compliance level. The compliance team
hierarchy is as follows:

3.5 Product Range

Vast Asian office network allows Triton to advice on which country is most suitable for
manufacturing any garment products. The customer always wins with the right price
and quality level from Triton Textile.

Bangladesh for men, ladies & children:

 Shirts & casual woven bottoms.

 Light knit top and bottoms.
 Heavy knit / sweaters.
 Light sports wear.
China for men, ladies & children:

 Active sportswear: ski set, padded jackets, wind breakers, swim wear, biking
pants.
 Rain wear
 Lingerie
 General underwear
 Pyjamas & night gown

Indonesia for men, ladies & children:

 Socks
 Dress pants
 Ladies blouse
 Sweat shirts
 Heavy knit / sweaters.

The Competitive Product Range:

Quota
China Indonesia Bangladesh Cambodia Pakistan India
Cat.

4 T- & Polo T- & Polo shirts T- & Polo shirts T- & Polo
shirts CVC/100 % cotton 100 % cotton shirts
Polyamide/ CVC/100 %
Spandex cotton
5 Sweaters sweaters, flat knit, sweaters, flat
With fancy 1 1/2 - 12 gg, knit, 3 - 12 gg, 100
yarn, Angola jacquard, intarsia, % acrylic,
mixture yarn 100 % acrylic, 100 acrylic/cotton,
% cotton, pullovers, polar
acrylic/cotton, fleece
acrylic/nylon.

Sweatshirts,
fleece, cvc & 100 %
cotton
6 Casual Pants Casual pants, Casual pants,
Fancy style twill, canvas, twill, canvas, Casual
with a lot of denim, 100 % denim, 100 % pants, twill,
cut & sewn, cotton cotton canvas,
zip-off pants denim, 100
Dress Pants Shorts, % cotton
100 % polyester, twill, canvas, Shorts
poly viscose denim, 100 % twill,
cotton canvas,
denim, 100
 % cotton
7 Ladies Blouse. Ladies Ladies
Woven Blouse. Blouse.
Woven Woven
8 Dress Shirts, Dress
poplin, yarn dyed Dress Shirts, Shirts
check, solid dyed. poplin, yarn dyed yarn
CVC, 100 % cotton check, solid dyed. dyed
T/C, CVC, 100 %
cotton

Casual
ShirtsFlannel,
viscose, twill
12 Socks & Tighs Socks & Tighs
knitted knitted
13 Underwear Underwear Underwear
knitted knitted knitted
14 Men's long Men's long coat Mens & Boys
coat overcoat &
raincoat
15 Ladies overcoat
Ladies Coat Ladies Coat & raincoat

16 Men's Set Mens or boys

suits
18 Singlets, Under Singlets, Under Singlets,
Pants, Briefs. Pants, Briefs. Under
Knitted Knitted Pants,
Briefs.
Knitted
18A Pyjamas Pyjamas woven Pyjamas woven
woven
21 Woven Jacket Woven Jacket Windbreakers
24 Pyjamas, Pyjamas, knitted Pyjamas, knitted Pyjamas,
knitted knitted
28 Pants, knitted Pants, knitted Pants,
knitted
31 Bra fancy Bra, knitted. Bra, knitted. Bra,
style knitted
68 Baby Wear Baby wear /
Infant wear
< 12m
72 Swim Shorts Swim Shorts Swimwear
74 Suit - girls &
ladies. Knitted
78 West. Woven
Other outer Scarf / Poncho
Garments.
Woven.
Depending on
garment
weight
86 Bra Shirt

Product Overview by Country - Updated on 17 November 2009

3.6 Suppliers in Bangladesh:
Supplier’s per production group

Sweater T-shirt Woven

Zaastex Radiance Dekko

Sweatermaker Reedisha Panwin

Hannan Aboni Epcot

Best Wool APS Skyline

Amtranet Abanti Birds

Tamishna Cotton Club Tanaz

Goodrich Asrotex Fashion Flash

Indesore Newage Vertex

Dotcom Mitali Ananta Denim

Odessa Doel

Mashiata Rising

Taqfwa/Libas

Fakhrudin

New Supplier’s started for Kiabi

Sweater T-shirt Woven

Mashiata DOEL Ananta

Indesore Rising group Vertex

 Mitali

Fakhrudin

Taqfwa/Libas

Supplier Base Overview

3.7 Competitive Advantage

I. Operating garment sourcing offices in Asia for more than 40 years

ii. Employing more than 165 dedicated staff in Asia

iii. Export in excess of 70 million pcs of garment annually

iv. Corporation with more than 200 garment factories in Asia

v. Offshore Export from India, Pakistan and Cambodia

vi. Customer base of private labels, retailers, importers and mail order companies

vii. Code of conduct ensuring ethical outsourcing of your garment production

3.7.1 Code of Conduct

Triton Textile LTD outlines the following basic requirements, which must be fulfilled
by all vendors:

Child Labor
No Child labor is accepted. “Child” is defined as someone below the age of having
completed compulsory education in the country of employment or below the age of 15
years.

Forced Labor

No forced labor is accepted. “Forced Labor” is defined as prison labor, slavery, any
person compelled to violence, intimidation or forced to work under penalty for non-
performance.

Disciplinary Measures

No Employee shall be exposed to verbal-, psychological-, physical- sexual abuse or

harassment.

Non-Discrimination

Vendors shall base the employment of the workers solely on their skills, irrelevant of
race, caste, skin color, gender, religious belief, political opinion, physical disability,
ethnic-, national- or social back ground, nationality or sexual orientation.

Working Hours

The maximum number of weekly hours permitted by national law shall not be
exceeded. At all times, the regular weekly working hours can never exceed 48 hours or
60 hours including overtime. Employees cannot be forced to work overtime.

Wages
Workers have the right to associate, organize and bargain collectively in a legal and
peaceful manner.

Freedom of Association

All employees must receive wages which are equal to- or exceed the minimum wages
defined by law. Any overtime must be compensated according to national regulations.

Health & Safety

Vendors shall maintain a clean, safe and healthy working environment in compliance
with local laws and regulations. All workers must have proper access to fire escapes.

Bribery & Corruption

The vendor agrees not to enter into any kind of bribery or corruption with any
individual representing Triton Textile or any of its Principals. Where gifts are presented
in adherence to a country’s individual customs or etiquette, it shall be ensured that such
gifts do not lead to obligatory dependencies.

Chemical- & Technical Compliance

As a minimum we work according to EU standards / laws. If a principal may have

requirements exceeding the EU standards, such requirements will be followed
accordingly.

Access to Code of Conduct

Vendors shall translate this code of conduct into the local language, then make their
workers aware of its content, and post it in a place within the working premises
accessible to all employees.
Subcontracting

In the event of subcontracting work, the vendor must ensure that the subcontractor
comply with this code of conduct.

3.7.2 Deal With Child labor

If child labor is discovered at any of suppliers, Triton Textile take the following
actions:
1. Stop production immediately and move operations to another factory, without
causing delays in the delivery of ready-made garments.

2. If switching factories is not possible due to peak season circumstances with

alternate factories being fully booked, we will stop production and demand that all child
labor be removed from the factory area before production can continue.

3. Once we have determined that no child is working, we will continue production,

and second a Triton Textile staff to the factory on a full-time basis to make sure there is
no repeat occurrence of child labor.

4. Once our order for ready-made garments has been completed, we will then place
the offending factory on our banned supplier list for a minimum of one year.

5 Only after we have found that the offending factory has improved its policies
and does not, in any way, employ child labor (following the 1-year ban from our
supplier list) will we begin negotiations with them again. However, it is our stated aim,
whenever possible, to avoid working with factories that have employed children. Stop
production immediately and move operations to another factory, without causing delays
in the delivery of ready-made garments
Chapter Four:
Export Procedure of Triton Textile Bangladesh

4.1 Approaches of Clients

Normally garments retailer buy garments product from manufacturer or from their
agent in two ways:
1. Through Direct Buyer
2. Through Importer

Direct Buyer source their garments product on behalf of their company through their
argent. Actually they work continuously with collection manager or marketing manager
and designer for their routine sales. They meet regular demand of forecasted style or
regular item for their organization.

On the other hand importer is one who source not only garments but also fancy or
promotional item for their shops whether through agent office or any other via media.
Here they are free to source from any region or other agent.

4.2 Mode of Inquiry or Order Confirmation

As Triton Textile works as an agent office of different renowned brand all over the
world basically they provide sourcing facility to regular buyer to its client. In this part
of the report we will give a brief view of export procedure of garments product focused
on regular buyer of its clients (Basically Kiabi Procedure).

Buyer of placed order in two ways:

1. Direct Inquiry
2. Auction
4.2.1 Direct Inquiry:
After making a final selection of styling collection manager or marketing manager and
buyer determine a tentative price level of garment and in which shops to be launched
Then they decide their which agent office will be the best to carry out the order. For
example, if the garments manufacturing process is much involved with highly
automated machine, complex computerized graphical design or have less lead time then
they will choose China agent office rather than Bangladesh. But if it requires much
human labor and cheaper price then they place it to Bangladesh agent office.
Onward buyer will send technical file for style, color requirement, possible delivery
date to agent office. They also send possible PO (Purchase Order) sending date and
FBL( Fabric Booking Latter) to agent office. Then Triton Textile transmit all
information to its nominated suppliers for detail price with cost break down and counter
sample weight. After negotiation with all suppliers Triton send all prices to its client.
Finally by comparing price level of suppliers and reputation buyer placed that order to a
particular supplier.

4.2.2 Auction

Auction is totally different from direct inquiry. Here, buyer send all required
information ( Technical file, PO or FBL issuing time, Shipment date) to its all agent
office. Onward all agent office transmit inquiry to all vendor. After submitting all
proposal and minimum price level Triton or its client arrange online auction to execute
the order. Before auction buyer send auction participation rules to supplier and
management of supplier sign back in authorization form. For this purpose all vendor
gets unique log in password and username to access on online auction website. There
are two type of auction

a. Dutch Auction
b. English Auction

4.2.3 Difference between Dutch and English Auction

The main difference between Dutch and English is auction bidding time. In English
auction vendor entitle to put their own price and bid till the last given time. The vendor
who’s price level is lowest or nearest to the buyer target will own the auction and
permit to execute the order. On the other hand in Dutch auction all vendors will log in
on the auction website the buyer will put a total price and total quantity in auction site.
After calculating price level if vendor think it is workable for him then agreed yes other
wise again buyer put different price level on auction site. Once any vendors agreed on
price level and accept then the auction comes to end and the order goes to that vendor.

4.3 Order Follow up Process:

Once the order is confirmed to vendor triton start a team works to ship out the goods.
The working process of different department is as follows.

i. Merchandising Department:
After getting confirmation from buyer side which vendor is going to execute the order
merchandising team collect technical information like detail style clarification, color,
yarn quality, tentative weight (because it vary to unit price), require animation, artwork,
trims or any other reference regarding the style. After getting all the information triton
transmit those information to vendor. Onward supplier submits all garments color,
animation, accessories, and striped panel for buyer approval. Afterward Triton checks
all submission with buyer and informed vendor if any rectification is needed. In this
time Triton collects PO or FBL from its client so that supplier can open LC and
purchase yarn and trims. After getting styling approval form own QC team as well as
buyer side readjusts price level of garments in case of any price changed.
Merchandising team keep record of all approval on online as well as sever system. They
transmit all information from both side supplier and buyer thought out whole export
procedure.

ii. Quality Assistance Team:

All quality concern goes to quality assistance team. They assist all technical side of
garments whether in yarn quality, styling or maintaining chemical issue. When the
production is going on factory they take inspection for maintaining quality issue.
 Before finally ship out the goods usually they take 4 inline inspection and afterward
final inspection before hand over to forwarder. To ensure quality they use in house lab
as well as third party lab test. According to KIABI requirement Triton authorized
SGS as third party quality in charge. According to KIABI buyer requirements they
also test phthalates and azo of garments.

iii. Compliance Department:

Through out the year compliance department follow up all compliance issues on
suppliers. Usually different brand required different third party compliance
certification. Triton Compliance department assist to audit regularly and give a guide
line to suppliers to pass third party audit certification.

iv. Shipping department

All export procedure comes to end at shipping department. After successfully
completion of garments production Triton QC team finally check all quality issue and
advice merchandising team. After full-fill all requirement merchandising team issue a
SRC (Shipment Realize Certificate) to finally handover the goods to forwarder getting
payment IC from shipping department. After getting SRC copy shipping department
check with import department of Triton’s clients and issue clearance to bank payment.
If any rebate, penalty or claim arise shipping department negotiate with both side and
assist to payment process.
Chapter Five:
Problem Identification

According to my job experience and current scenario of Ready Made Garments

Industry I have got some external or macro environmental as internal or organizational
problem. These problems are discussed as below:

5.1 External or Macro Environmental Problems:

a. Shortage of Raw yarn or Uncontrollable Yarn Supply:

The price level of raw yarn in world market is going up day by day. For this reason yarn
price stacked on extreme point. As a results the garments price of Bangladesh become
less competitive. More over due to shortage of raw yarn some yarn supplier using bad
quality raw yarn.

b. Cancellation of Export Incentives in China:

In previous year China Government provide 7% export incentives to raw yarn supplier.
But now due to increase the inland yarn consumption China Government cancel the
incentives facilities more over for securing inland demand China authority impose 7%
tax for exporting yarn raw. For this reason the situation become quit unfavorable to
Bangladesh for yarn sourcing.

c. Shortage of Power , Gas Supply for Smooth Production:

Shortage of power supply and gas problem is another vital problem in garments
production. Due to shortage of power and gas factory can not make production on time
and for this reason buyer are imposing big penalty and losing order day by day.
 d. Insecure or Unrest Political Situation:

Insecure or unrest political situation is another obstacle for our RMG sector. For this
reason production hamper and unrest situation arise in factory labor.

e. In efficient Backward Linage:

In efficient backward linkage is most important reason where we are behind our
competitors like China. We are depended on fancy yarn, accessories to other countries.
More over it took most of the lead time for sourcing from abroad. This type of
dependency makes us less competitive in world market.

f. Shipment Lead Time:

Shipment lead time is another reason why Bangladesh losing order from its competitor.
For example if a supplier hand over goods to its sea forwarder it will takes at least 36
days to reach European countries where it takes only 28 days from china. By
considering this reason most of retailers buy their urgent goods or for securing on time
shipment of fancy garments order from China supplier.
5.2 Internal or Organizational Problem

a. Compensation Package :

The employer’s compensation package for Triton Textile Bangladesh is too much poor
compared to any other relative company. Though it provides medical insurance facility,
equal employing opportunity and practice very good corporate culture to its employee
but over all compensation packages is not sufficient.

b. Insufficient Manpower and Lac of Professional Training for

Fresher:

As the business is growing day by day and many renowned brands are adding on its
client list. Triton Textile Bangladesh is facing a shortage of man power. It needs to
recruit new employee to re adjust the work load in different department.

c. More Storehouses for Preservation of File, Document and Sample:

In present condition Triton Textile Bangladesh have to increase store capacity to keep
records of its file, documents as well as samples. It will help more to follow up the
order as well as develop new customer.
 Chapter Six:
Recommendations

6.1 Recommendations for External or Macro Environmental Problem:

i. Resume New Policy: Bangladesh Government has to resume policy for producing
raw yarn locally so that we can reduce dependency on other country. Moreover
government of Bangladesh has to take initiatives to build a long lasting strong
backward linkage locally to stabilize this sector.

ii. Increase New Investment: Government has to take steps to increase more domestic
as well as foreign investment in this sector. Even banking sector has to be more
involved regarding investment in this sector and have to offer less interest for backward
linkage industry of this sector.

iii. Ensure Power and Gas Supply: For continuing sustainable growth in this sector
and smooth production process local authority have to ensure power and gas supply to
this sector.

6.2 Recommendations for External or Internal Problem:

i. Compensation Package: Triton has to re-adjust its compensation package

for its all employee which will provide a sound lifestyle and social security
to its employee.
ii. Special Training Facility for Fresher: Triton has to arrange special
training facility for fresher who are joining in Triton family. It will help to
understand the corporate culture of company as well as enrich the technical
side to perform efficiently for organization.
iii. Increase Store Capacity: Triton has to increase more store capacity for
store of important file, document and sample as reference. It will help all
department specially quality department and merchandising department for
new style development.
Chapter Seven:
Conclusion

The RMG industry occupies a very significant position in the economy of

Bangladesh. It accounts a major portion of gross domestic product (GDP) and 25%
of gross value addition in the manufacturing sector of the country. It is a major
source of employment and absorbs about a third of the industrial workforce.
Among different multinational company is operating their garments business in
Bangladesh, Triton Textile is a member of the Jebsen & Jessen Family Enterprise
(Germany). During my intern period I have had the opportunity to work with Triton
Textile Bangladesh Liaison Office. Since my intern period I come to realize that
though the garments industries have a lot of potential for future extension from
present condition it needs to overcome few obstacles. We have to reduce the
dependency on other countries for raw materials. For sustainable growth in future
Bangladesh government have to resume policy rebuild up the backward linkage of
this sector.

Reference

Print Reference:
 Market Review Bangladesh; Triton Textile Bangladesh.
 “The Tritonian IV-2009”, quarterly Newsletter, Editor : Jens Sorensen

Web Reference:

 http://www.scribd.com/doc/7022262/Industry-Paper-on-
RMG-Redefined
 www.tritontextile.com
 www.epb.gov.bd
 www.bgmea.com.bd