There are many Indians who have their factories in Bangladesh and the list is growing and the latest to enter the market is BD Design, a sister concern of Indian Designs, Bangalore. Putting up the unit at the Karnaphuli Export Processing Zone in Bangladesh with an investment of around US $ 8.919 million and annual production capacity of 3.4 million pieces, the company will be manufacturing jackets, pants, shirts, T-shirts, suits and undergarments.
The unit has created a buzz in the industry and it has the potential to employ nearly 4,000 people. Naseer Humayun, MD of BD Designs confirmed that production at the Bangladesh unit is going to start in about a year’s time. “An agreement regarding this unit was signed between Sayed Nurul Islam, Member Investment Promotion of Bangladesh Export Processing Zone Authority (BEPZA) and team BD Designs at the BEPZA Complex in Dhaka,” informed Humayun.
Indian Designs, the parent company of BD Designs, has always been a very progressive company with major expansion plans for India too, so why Bangladesh now. “There are two main reasons apart from the regular reasons related to price advantage for going into Bangladesh. 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,” said Humayun.
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. Though 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 at Marul, on the outskirts of Bangalore. It has also started its home furnishing unit for European market just a year ago. Now the company has eight units where 10,000 people are working.
The company is among the very few who have registered growth with consistent increase in its top line from Rs. 180 crores in FY 2010-11 to Rs. 290 crores in FY 2011-12 and projections to touch Rs. 350 crores in FY 2012-13.
