There are many Indian exporters’ running units in Bangladesh and the list is going to increase as BD Designs, sister concern of Indian Designs, Bangalore is going to start a huge unit at the Karnaphuli Export Processing Zone in Bangladesh soon. The expected investment for this unit is almost US $ 8.919 million with annual production capacity of 3.4 million pieces of jackets, pants, shirts, T-shirts, suits and undergarments. The unit has created a buzz in the industry and it has the potential to create employment in Bangladesh for nearly 4,000 people.
Naseer Humayun, MD of BD Designs confirmed that production at the Bangladesh unit is going to start in about a years’ time. An agreement regarding this unit was signed between Sayed Nurul Islam, Member Investment Promotion of Bangladesh Export Processing Zone Authority (BEPZA) and Naseer Humayun from BD Designs at the BEPZA Complex in Dhaka.
Indian Designs, the parent company of BD Designs, has always been a very progressive company with major expansion plans for India, so why Bangladesh now. “There are two main reasons apart from the regular reasons related to price advantage for going into Bangladesh,” says Humayun. He expands, “First our buyers were insistent that they wanted to work in Bangladesh using imported fabric so as to get the advantage of duty-free import; and secondly, we could export to Europe duty-free which was a major advantage.” Most of the production from the Bangladesh unit will be for the Europe and USA, while the Indian factories will continue catering to the UK, which is a huge market for the company.
The team for the Bangladesh unit including the CEO and other senior members is still not finalized. Both Indian Design and BD Design under the leadership of Naseer Humayun are doing well, and only eight months ago, the company went into major expansion taking its capacity from 1,500 machines to around 4,000 machines at its two new units on the outskirts of Bangalore, at Marul. It has also started its home furnishing unit for European market just a year ago. Now the company has eight units where 10,000 peoples are working.
The company is among the exporters who are registering growth with consistent increase in its top line from Rs. 180 crore in FY 2010-11 to Rs. 290 crore in FY 2011-12 and projections to touch Rs. 350 crore in FY 2012-13. “There are so many challenges, as the coming years will be tough where the bottom line is concerned, but we are really working hard and I am confident that we will continue to grow,” concludes Humayun.
