[🇧🇩] Footwear, Rubber and leather Industry in Bangladesh

[Bilal9]

Here is a factory overview for Shoeniverse Ltd. in Mymensingh

 

[Bilal9]

Another factory profile for Apex Footwear Ltd. in Gazipur. This is one of the largest state-of-the-art shoe factories in South Asia. They produce both leather-dress and non-leather-sports shoes.

 

[Saif]

Bangladesh needs to accelerate green transformation of the leather industry

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full

thefinancialexpress.com.bd

Bangladesh needs to accelerate green transformation of the leather industry

T I M Nurul Kabir
Published :
Jul 05, 2025 22:06
Updated :
Jul 05, 2025 22:06

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full potential.

According to the global market research reports and consulting firm Fortune Business Insights, the global leather goods market size was valued at USD 498.57 billion in 2024 and is projected to grow from USD 531.07 billion in 2025 to USD 855.36 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.05 per cent during the forecast period.

Leather and leather goods industry of Bangladesh is the second highest export-earning sector after the readymade garments (RMG) industry. Bangladesh's leather is acclaimed nationally and internationally for its high-quality grain, uniform fibre structure, smooth feel and natural texture.

The leather industry of Bangladesh has the advantage of abundant availability of domestic raw materials and low-cost labour. As Bangladesh is rich in key raw materials, the leather and leather goods industry has the potential to be the key sector for export diversification.

Previously exports depended mainly on wet blue leather. However, processed leather and finished leather products can add up to 90 per cent value to leather goods. In recent years, total export of raw hides, skins, and leather shows a downward trend. On the other hand, total export of merchandise made of leather is observed to have an increasing trend, signaling a shift toward higher-value products.

According to the Export Promotion Bureau (EPB) data, total leather exports between July 2024 and May 2025 amounted to 1,057.82 million US dollars, an increase of 12.55 per cent over the same period of the previous fiscal year. Leather footwear exports have demonstrated significant success. According to the World Footwear 2024 Yearbook, Bangladesh has emerged as one of the world's top 10 footwear producers over the past decade.

Export receipts from leather footwear stood at 545.35 million US dollars during the first ten months of FY25, showing 26.08 per cent rise. On the contrary leather goods exports between July 2024 and March 2025 fell by 6.11 per cent to 256.44 million US dollars, and finished leather exports fell by 6.29 per cent to 99.40 million US dollars, on a comparable basis to the same months of the previous fiscal year.

Bangladesh accounts for about 3.5 per cent of the total rawhide produced globally. However, despite ample supply of domestic raw materials the leather and leather goods industry contributes nearly 4 per cent of the country's total exports. The RMG industry, despite significant reliance on imported raw materials on the other hand, contributes 80 per cent to Bangladesh's total export earnings. Main restraints to industry performance of the leather sector include issues such as fragmentation in the sector; inefficient procurement, preservation and processing system of rawhide and animal skins; water pollution and health safety compliance issues, and inadequate finance.

Bangladesh's total supply of rawhide and skins is around 20 million units per year, of which about 50 per cent comes during the main sacrificial festival Eid-ul-Adha. In absence of an integrated network for collecting and preserving rawhides the procurement, preservation and processing system is fragmented and irregular.

Seasonal traders, brokers and wholesalers buy rawhides on the basis of average size. Rawhide is treated with salt for preservation. Workers involved in applying salt lack proper knowledge about preservation, and so, skin quality declines and skins are often permanently damaged. Moreover, per unit preservation cost of goat/sheep skin is higher than the selling price that the traders get. Local collectors and seasonal traders have been discarding goat/sheep skins along roadsides during Eid-ul-Adha. Such inability to sell bovine hides represents financial loss for the traders and a missed opportunity for the leather industry.

Tanners buy salt-cured rawhides from the wholesalers at per square foot price. There are 200 tanneries and 3500 small and medium enterprises (SMEs) producing blue wet leather, crust leather and finished leather from rawhides. According to the Bangladesh Investment Development Authority (BIDA), Bangladesh produces 350 million square feet of leather every year, of which 56 per cent comprise cowhides, 30 per cent goat/sheep hides and skins and 14 per cent buffalo skins. Of the total leather produced 20 to 25 per cent is used to meet domestic demand and 75 to 80 per cent is exported.

To enable compliance in the leather industry and to prevent pollution of the Buriganga river, all the tanneries were relocated from Hazaribagh to the BSCIC Tannery Industrial Estate in Savar. However, the central effluent treatment plant (CETP) has still not been made fully operational and there is no permanent arrangement for a solid waste disposal site or dumping yard. The result is growing pollution in the Dhaleshwari river. Work environment in tanneries is very dirty due to poor management of waste. Most tanneries do not follow the basic health compliance guidelines.

The government is urging the tannery owners to establish their own effluent treatment plant (ETP). According to reports, so far six companies have been given permission to build ETP of their own and another eight to 10 tanneries are in the process of getting approval. However, most SMEs do not have funds to establish ETP of their own.

Issues concerning environmental and health standards leave negative impact on the export of rawhide and leather goods. Having an effluent distribution system is one of the prerequisites for obtaining internationally recognized Leather Working Group (LWG) certification. Tanneries are unable to obtain the LWG certificate due to the lack of fully functional central effluent treatment plant (CETP).

All the developed countries, including the US, Japan and the EU demand transparent and sustainable supply chains. Major global brands stipulate that the products must be made using leather from LWG-certified companies. Using locally produced leather for higher value addition is not possible because majority of the tanneries do not have LWG certificate. Local tanneries are compelled to sell leather to countries such as China and India at approximately 50-60 per cent lower prices than that in Western markets. And Bangladeshi exporters spend approximately $100 million annually to import LWG certified finished leather, although the country has abundant supply of rawhide.

Despite the obvious challenges, the leather industry of Bangladesh has shown magnificent resilience and achieved remarkable growth in recent years. To unlock the full potentials of the leather industry, Bangladesh needs to accelerate green transformation of tanneries, develop integrated network for raw material collection and preservation and engage in public-private collaboration for skills development and green finance to achieve sustainable export growth in the post-LDC era.

T.I.M. Nurul Kabir is Business, Technology and Policy Analyst.​

 

[Saif]

US tariff threatens booming synthetic shoe exports

The country’s growing non-leather footwear industry now faces a major setback as a steep new tariff from the United States threatens its growth

www.thedailystar.net

US tariff threatens booming synthetic shoe exports

The country's growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

Synthetic shoes, popular worldwide for their comfort and style over leather footwear, helped push export earnings from this segment to $523 million in the recently concluded fiscal year (FY) 2024-25, up from $244 million in FY 2017-18.

Buoyed by increasing global demand, manufacturers had been eyeing $1 billion in annual earnings within the next two to three years.

But that optimism is now fading as Bangladeshi exporters will have to contend with a 50 percent tariff on synthetic footwear shipments to the US from August 1.

The rate includes a newly imposed 35 percent duty on top of the 15 percent they were already paying.

Local shoe-makers fear this could reverse a trend that had seen US buyers increasingly shifting their sourcing from China to Bangladesh. The move is likely to hand the advantage to Vietnam, which faces a much lower 20 percent tariff.

"This sector thrives because global buyers see Bangladesh as a cost-effective alternative to China," said Riad Mahmud, managing director of Shoeniverse Footwear.

"But a 35 percent additional tariff would erase our price advantage and push buyers towards Vietnam, which has to pay a tariff of only 20 percent," he added.

Mahmud said that the sharp rise in duty could wipe out profits, disrupt cash flow, and threaten jobs.

His Shoeniverse plant in Mymensingh alone employs 4,700 workers.

He said, "Around 95 percent of orders from US buyers have been temporarily postponed due to the new tariff. This is not an industry where you can pause for six weeks and simply restart."

Over the years, Bangladesh has been gaining traction in the global synthetic shoe market, thanks to its competitive labour costs and export experience from the readymade garments sector.

The country's Western buyers include leading brands like H&M, Puma, Decathlon, Inditex, Aldi, Matalan, and RedTape. After the pandemic, these brands have been placing more orders to diversify away from China.

According to the Bangladesh Investment Development Authority (Bida), the non-leather segment is rapidly catching up with leather footwear, which earned $672 million in exports in FY 2024-25, a 23.54 percent increase year-on-year.

But while synthetic shoes are cheaper to make, the profit margins are razor-thin.

Mahmud mentioned that labour makes up 20 to 22 percent of production costs, while raw materials account for around 70 percent. On top of that, delays at customs and unclear trade policies are putting further pressure on the sector.

"Without clarity, planning is impossible. Bangladesh has the skills to lead in synthetic footwear, but we urgently need stable trade conditions," said Mahmud.

Hasnat Md Abu Obida Marshall, managing director of Maf Shoes Ltd, which supplies footwear items to brands like Kappa and H&M, said many exporters were already feeling the heat, with US orders either on hold or cancelled.

"European buyers have not objected yet, but those in the US market could suffer badly," he said.

Marshall said the new tariff imposed by the Trump administration adds to long-standing issues.

Unlike China, Bangladesh depends heavily on imported raw materials, often taxed at up to 60 percent, which raises product costs eventually.

"We import everything yet try to compete on price," said Marshall, adding that China not only has local access to raw materials but also offers 7 to 12 percent government incentives.

According to him, even an 8 percent cash incentive offered by Bangladesh fails to make a meaningful impact.

"If I pay 60 percent duty and get 8 percent incentive, there is no real benefit left," Marshall said, adding that many exporters skip the incentive altogether due to the bureaucratic process.

He also identified low productivity as a concern, saying that despite lower wages than in Vietnam, Bangladesh still falls behind in producing value-added footwear.

The shoe-maker also said that the country's graduation from the least-developed country club in November next year further clouds the sector's outlook.

"If we rush into investments, we risk heavy losses and job cuts," he said.

The tariff uncertainty has already rippled into other sectors like garments, he added, and could damage Bangladesh's standing in the global footwear market without strong policy support and investment in capacity.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said the new US tariff would severely disrupt exports to the American market, especially for companies that had made targeted investments there.

He urged the government to expedite negotiations with US authorities to secure continued access and protect the export sector.

"If Bangladeshi exporters fail to remain competitive in the US market, they will have to seek alternative destinations to recover their investments and safeguard the jobs of hundreds of workers," Chowdhury said.

Hasanuzzaman, managing director and CEO of BLING Shoes Ltd, which posted 30 percent export growth last fiscal year, echoed similar concerns.

Hasanuzzaman said he supplies US buyers, including Merrell, Saucony, and Carter, and although none of his current orders have been cancelled, the future is uncertain.

"If the tariff is not reduced, exports will definitely be hampered," he said.​

 

[Bilal9]

US tariff threatens booming synthetic shoe exports

The country’s growing non-leather footwear industry now faces a major setback as a steep new tariff from the United States threatens its growth

www.thedailystar.net

US tariff threatens booming synthetic shoe exports

View attachment 20211

The country's growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

Synthetic shoes, popular worldwide for their comfort and style over leather footwear, helped push export earnings from this segment to $523 million in the recently concluded fiscal year (FY) 2024-25, up from $244 million in FY 2017-18.

Buoyed by increasing global demand, manufacturers had been eyeing $1 billion in annual earnings within the next two to three years.

But that optimism is now fading as Bangladeshi exporters will have to contend with a 50 percent tariff on synthetic footwear shipments to the US from August 1.

The rate includes a newly imposed 35 percent duty on top of the 15 percent they were already paying.

Local shoe-makers fear this could reverse a trend that had seen US buyers increasingly shifting their sourcing from China to Bangladesh. The move is likely to hand the advantage to Vietnam, which faces a much lower 20 percent tariff.

"This sector thrives because global buyers see Bangladesh as a cost-effective alternative to China," said Riad Mahmud, managing director of Shoeniverse Footwear.

"But a 35 percent additional tariff would erase our price advantage and push buyers towards Vietnam, which has to pay a tariff of only 20 percent," he added.

Mahmud said that the sharp rise in duty could wipe out profits, disrupt cash flow, and threaten jobs.

His Shoeniverse plant in Mymensingh alone employs 4,700 workers.

He said, "Around 95 percent of orders from US buyers have been temporarily postponed due to the new tariff. This is not an industry where you can pause for six weeks and simply restart."

Over the years, Bangladesh has been gaining traction in the global synthetic shoe market, thanks to its competitive labour costs and export experience from the readymade garments sector.

The country's Western buyers include leading brands like H&M, Puma, Decathlon, Inditex, Aldi, Matalan, and RedTape. After the pandemic, these brands have been placing more orders to diversify away from China.

According to the Bangladesh Investment Development Authority (Bida), the non-leather segment is rapidly catching up with leather footwear, which earned $672 million in exports in FY 2024-25, a 23.54 percent increase year-on-year.

But while synthetic shoes are cheaper to make, the profit margins are razor-thin.

Mahmud mentioned that labour makes up 20 to 22 percent of production costs, while raw materials account for around 70 percent. On top of that, delays at customs and unclear trade policies are putting further pressure on the sector.

"Without clarity, planning is impossible. Bangladesh has the skills to lead in synthetic footwear, but we urgently need stable trade conditions," said Mahmud.

Hasnat Md Abu Obida Marshall, managing director of Maf Shoes Ltd, which supplies footwear items to brands like Kappa and H&M, said many exporters were already feeling the heat, with US orders either on hold or cancelled.

"European buyers have not objected yet, but those in the US market could suffer badly," he said.

Marshall said the new tariff imposed by the Trump administration adds to long-standing issues.

Unlike China, Bangladesh depends heavily on imported raw materials, often taxed at up to 60 percent, which raises product costs eventually.

"We import everything yet try to compete on price," said Marshall, adding that China not only has local access to raw materials but also offers 7 to 12 percent government incentives.

According to him, even an 8 percent cash incentive offered by Bangladesh fails to make a meaningful impact.

"If I pay 60 percent duty and get 8 percent incentive, there is no real benefit left," Marshall said, adding that many exporters skip the incentive altogether due to the bureaucratic process.

He also identified low productivity as a concern, saying that despite lower wages than in Vietnam, Bangladesh still falls behind in producing value-added footwear.

The shoe-maker also said that the country's graduation from the least-developed country club in November next year further clouds the sector's outlook.

"If we rush into investments, we risk heavy losses and job cuts," he said.

The tariff uncertainty has already rippled into other sectors like garments, he added, and could damage Bangladesh's standing in the global footwear market without strong policy support and investment in capacity.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said the new US tariff would severely disrupt exports to the American market, especially for companies that had made targeted investments there.

He urged the government to expedite negotiations with US authorities to secure continued access and protect the export sector.

"If Bangladeshi exporters fail to remain competitive in the US market, they will have to seek alternative destinations to recover their investments and safeguard the jobs of hundreds of workers," Chowdhury said.

Hasanuzzaman, managing director and CEO of BLING Shoes Ltd, which posted 30 percent export growth last fiscal year, echoed similar concerns.

Hasanuzzaman said he supplies US buyers, including Merrell, Saucony, and Carter, and although none of his current orders have been cancelled, the future is uncertain.

"If the tariff is not reduced, exports will definitely be hampered," he said.​

I think the tariff threats are a bargaining tool by the US Trade office.

Trade reps from Bangladesh are already negotiating actively with US trade reps and there will be agreements reached soon...

 

[Saif]

I think the tariff threats are a bargaining tool by the US Trade office.

Trade reps from Bangladesh are already negotiating actively with US trade reps and there will be agreements reached soon...

US trade representatives have already sent a long list of products on which they need Bangladesh to give duty free access.

 

[Bilal9]

US trade representatives have already sent a long list of products on which they need Bangladesh to give duty free access.

Well we are not in a position to negotiate from any position of strength.

Running to the WTO will not help.

So concede we must.

 

[Saif]

Leather, leather-goods exports see 10pc growth

The export earnings from the leather and leather goods increased by 10.19 per cent to $1.14 billion in the recently concluded financial year 2024-25, according to the Export Promotion Bureau...

www.newagebd.net

Leather, leather-goods exports see 10pc growth
Staff Correspondent 22 July, 2025, 23:31

Two workers arrange hides at a tannery in the capital recently. The export earnings from the leather and leather goods increase by 10.19 per cent in FY25. | Sony Ramani

The export earnings from the leather and leather goods increased by 10.19 per cent to $1.14 billion in the recently concluded financial year 2024-25, according to the Export Promotion Bureau.

The leather sector, one of the major industries after the readymade garment sector, earned $1.03 billion in FY24.

However, despite the domestic supply of raw materials, the leather export earning has been hovering around $1 billion for the last several years.

In FY23, the sector earned $1.17 billion, compared with $1.24 billion in FY22 and $1.03 billion in FY21, as stated in the EPB data.

In FY25, the country earned $48.28 billion from exporting goods, 8.58 per cent higher than the $44.46 billion in FY24, while the earnings from the leather sector accounted for approximately 2.36 per cent of the total export earnings.

Speaking to New Age, Md Nasir Khan, vice-president of the Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh, said that due to a lack of governmental policy support, the leather sector had been unable to break out of the $1 billion cycle for decades.

‘We don’t have any unified policy and incentive facilities for all export-oriented sectors. Despite having domestic supply of raw materials and high-quality products, leather sector is lagging years after years,’ he added.

Sometimes it seemed that policymakers didn’t want the sector to export more, as it didn’t receive sufficient policy support, he added, saying that even the central effluent treatment plant was under-capacity and non-functional, which reflected their reluctance.

‘To diversify products, government must remove the discrimination between RMG sector and all other export-oriented sectors. The government must introduce unified policy, bond facilities and other incentives,’ he added.

He also stated that the leather sector has the capacity to earn $10 billion, as it can add value of up to 90 per cent, thanks to its raw materials. However, the government destroyed this opportunity by transferring the industry to Savar without proper establishment and the required CETP.

He also said that the same principle applies to market diversification — if the government wants, it can also diversify Bangladesh’s market.

For almost three decades, Apex Footwear Limited has been in the shoe exporting business, with a footprint in the US, UK, Europe, and Japan.

Omar Faruk, company secretary of Apex Footwear Limited, told New Age that like the overall leather goods sector, they also face some global and internal challenges, including dollar issues and other domestic challenges.

He also said that the recently declared 35 per cent tariff on Bangladeshi exports of goods would further impact the sector.

The businesses also stated that, despite having significant export potential, the leather sector has faced stagnation primarily due to persistent compliance issues.

Global buyers are refraining from importing leather goods from Bangladesh, as the country’s leather industry continues to fall short of meeting compliance requirements, including obtaining a Leather Working Group certificate.

Talking to New Age, M Masrur Reaz, chairman of the Policy Exchange Bangladesh, said that the country didn’t utilise its capacity and potential.

‘The authority didn’t strengthen the seamless connections among different value chains like rawhide collecting, processing, finishing and backward linkage,’ he added.

He also stated that a significant number of companies in the sector lacked standard certificates, such as LWG, which deterred foreign buyers from importing.

‘Despite the potential of reaching $10 billion export annually, we don’t have integrated planning, especially on infrastructure, finance, skill, and attracting foreign investment,’ he added.

The businesses and experts also suggested some key factors, including investing in the environment, product diversification, developing skilled workforces, and sufficient governmental support.

They also urged manufacturers to ensure supply chain traceability, invest in branding and marketing, and continue to adopt advanced manufacturing technologies.​

 

[Saif]

Young entrepreneurs bootstrapping the leather sector

From setting up micro-factories in Hazaribagh to attending international expositions, a new generation of leather entrepreneurs is trying to bring fresh momentum to one of Bangladesh’s most promising sectors for exports.

www.thedailystar.net

Young entrepreneurs bootstrapping the leather sector

Emerging leather entrepreneurs showcase their products at the 9th Bangladesh Leather & Footwear Expo organised by the Bangladesh Tanners Association at the International Convention City Bashundhara recently. The event offered an opportunity for young entrepreneurs to connect with buyers and build export pathways. Photo: Star

From setting up micro-factories in Hazaribagh to attending international expositions, a new generation of leather entrepreneurs is trying to bring fresh momentum to one of Bangladesh's most promising sectors for exports.

With technical expertise, business insight, and a strong sense of commitment, they are transforming the leather goods industry—from one once burdened by environmental and compliance challenges to a sector of new opportunities.

The vibe was evident at the 9th Bangladesh Leather & Footwear Expo, organised by the Bangladesh Tanners Association (BTA) at the International Convention City Bashundhara from last Thursday to Saturday.

Several emerging entrepreneurs stood out with inspiring stories of determination and innovation.

Among them was Forida Yesmin Bithi, chief executive officer (CEO) of Deer Leather Goods and Footwear Ltd.

A leather engineering graduate, Bithi transitioned from a technical background into entrepreneurship in 2020 with just Tk 3 lakh, two machines, and one assistant.

Today, she leads a team of nine and manufactures belts, wallets, office bags, handbags, shoes, and sandals. Her products, once catering mainly to local clients, are now reaching Malaysia and Italy via export intermediaries.

She proudly informed that her company is now capable of producing leather goods worth around Tk 12 lakh per month.

"This business has potential, and I believe it will continue to grow," she said.

This year marked her third appearance at the expo. "This platform is vital for visibility—it helps small entrepreneurs like us connect to bigger markets," she added.

Another inspiring figure is Md Tasnim Alam Shahin, founder and CEO of 3 Tech.

Nearly two decades in the industry, Shahin originally aspired to study leather technology, but family responsibilities pushed him toward business.

With Tk 5 lakh in support from his family, he founded 3 Tech in 2007.

His breakthrough came with an order for jackets from Novartis, followed by partnerships with brands like Bata.

The company now employs 35 workers. Prior to the pandemic, it annually exported goods worth over Tk 2 crore.

"The pandemic slowed us down," Shahin acknowledged. "But with the right policies and quality focus, Bangladesh's leather sector can thrive globally again," he said.

Meanwhile, Tahmina Akter Shammi, managing director of ARLENS Leather, brought with her the experience of an entirely different field.

Previously a World Bank project staffer focusing on export readiness in non-readymade garment (RMG) sectors, she shifted to leather after seeing its global promise.

She launched ARLENS Leather in early 2024 with minimal investment and now operates a small-scale production unit in Hazaribagh.

Her products—backpacks, wallets, and accessories—are sold wholesale and retail, generating modest exports via buying houses. Monthly production is worth around Tk 4 lakh.

"I reinvest all profits. For me, it's about creative freedom and building something of my own," Shammi said.

Golam Mursalin, managing partner of Collagen Bangladesh, is part of the growing community of leather technologists entering the sector.

On attaining BSc and MSc degrees in leather engineering, Mursalin started his career at Reliance, a Chinese company, and later joined a Chinese buying house.

In 2017, he began his own business processing hides for export. "My capital was my knowledge and labour," he recalled.

Collagen Bangladesh now operates with four partners—each a leather technologist—and supplies finished leather to top local exporters while directly exporting to Poland.

In 2023, they expanded into production arrangements specialising in small batches of finished leather goods to align with international buyer demands. "Value addition is the future," Mursalin said.

But challenges remain—rawhide perishability, price competitiveness, and high production costs due to the need to import the chemicals used in the process.

"Imported inputs and lack of bonded warehouse facilities make it difficult to compete with countries like Pakistan," he explained.

"Still, more leather engineering graduates are entering this field, and with the right policy support—such as export-linked chemical subsidies—we can do much better," said Mursalin.

All in all, over 130 local and foreign companies participated in the fair, including exporters of leather goods, footwear, machinery, and raw materials.

The vigour of the exporters gives hope, especially because the sector's earnings from sales abroad have slightly dropped to $345 million in the fiscal year 2024–25 from $353 million in the preceding year.

Md Mizanur Rahman, general secretary of the BTA, expressed optimism over the young entrepreneurs in this sector.

"These young entrepreneurs are innovative and well-educated. They understand quality, global trends, and what the market demands. We support their growth—because they represent the next generation of leadership in our sector," he said.

He said as Bangladesh eyes a bigger stake in global leather exports, the rise of technically trained, self-driven entrepreneurs could be the missing link between potential and performance.

From micro-factories in Hazaribagh to export shipments bound for Europe and Southeast Asia, the transformation is already underway, he added.​

 

[Bilal9]

Pran-RFL’s Varendra Rajshahi Textile creates 2,000 jobs in just 6 months, aims for 12,000​

The group revived a state-owned factory that had been closed for 22 years​

Infograph: TBS

• -2,000 jobs created, 90% filled by local women
• -Factory exports shoes, bags to Europe and America
• -Tk350 crore investment planned, targeting 12,000 total jobs
• -Revived old textile mill closed for 22 years
• -Expansion includes garments, call center, and training facility
• -Vision: decentralized, sustainable industry creating rural employment

---

In just six months since launching operations, Varendra Rajshahi Textile Ltd, a new industrial venture by Pran-RFL Group, has created employment for 2,000 people, 90% of whom are women.

Located on 26 acres in Rajshahi's Naodapara area, the factory is currently producing around six lakh pairs of shoes and bags per month, with most of the products being exported to Europe, America, and other global markets.

Monthly sales from the factory are already reaching Tk20–25 crore, and the company has recently unveiled plans for major expansion.

According to company officials, the factory currently manufactures various types of shoes, luggage, and storage bags, with plans to expand into ready-made garments. The group, one of Bangladesh's largest conglomerates, also intends to establish a world-class call centre and a training facility within the premises.

Speaking to The Business Standard, Kamruzzaman Kamal, director (marketing) of Pran-RFL Group, said, "We have plans to invest Tk350 crore in this factory over the next two years. This will open up employment opportunities for around 12,000 people in the region."

The site, formerly home to the long-defunct Rajshahi Textile Mill, had remained idle for 22 years before Pran-RFL took over the land from Bangladesh Textile Mills Corporation (BTMC) under a public-private partnership.

Pran-RFL revived the site in December last year and began operations after renovating the factory's only remaining shed.


"We had to scrap most of the old machinery, which had become unusable over time," Kamruzzaman said. "Since the facility was originally set up for textile production, we had to install entirely new equipment suitable for manufacturing shoes and bags."


Kamruzzaman added that products from the factory range from affordable Tk100 sandals to premium shoes priced at Tk5,000. "Raw materials are sourced both locally and internationally, and the manufacturing is done in phases to meet the needs of both domestic and global customers."

Looking ahead, the company plans to start garment production and set up a modern telemarketing centre at the site, which will offer additional employment, especially for women.


Kamruzzaman said in addition to Barendra Rajshahi Textile Ltd, their products are also being manufactured in several other factories in Rajshahi, including some within the Bscic industrial area.

"Our goal is to create employment opportunities for the people of this region, and Pran-RFL Group is working towards that objective," he said. He added that everyone working in the factory is from Rajshahi, with 90% of them being women.

The factory currently employs 2,000 local workers, including many from marginalised backgrounds.

Shankari Rani, a resident of Godagari and a production worker at the factory, said her job has been a vital source of support for her family. "My husband is a blacksmith, but his earnings were not enough. Working here allows me to contribute to household expenses and support our two daughters," she said. "Our shifts run from 8am to 8pm, with a one-hour lunch break."

Naheda Akhter Nitu, a training executive at the factory, joined four and a half months ago. "I used to work in Dhaka, but my family wanted me to stay in Rajshahi. When this factory opened, I didn't hesitate to join."

To mark the milestone of 2,000 jobs created, PRAN-RFL Group held a celebration on Saturday titled "Celebrating 2,000 Jobs; Targeting 12,000" at the factory premises. Brig Gen (retd) Dr M Sakhawat Hossain, adviser to the Ministry of Labour and Employment, attended the event as chief guest.

Also present were Labour Secretary AHM Shafiquzzaman, Pran-RFL Chairman and CEO Ahsan Khan Chowdhury, Rajshahi Superintendent of Police Farzana Islam, and BTMC Manager Nurul Alam, among other officials.

"This initiative by Pran-RFL is a remarkable step forward," said Sakhawat Hossain. "Reviving a state-owned factory that had been closed for 22 years and generating 2,000 jobs in such a short time is truly praiseworthy. This is not just an industrial revival – it marks the beginning of a socio-economic transformation."

"While many people from rural areas are forced to migrate to cities due to a lack of local job opportunities, Pran-RFL is showing how regional industrialisation can create sustainable employment," he added.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said, "Our vision is big. We believe the days of having to move to Dhaka for work are coming to an end.

"Instead, in the future, we aim to go to remote areas, set up industries, and offer people jobs right where they live. We are investing in labour-intensive industries in Rajshahi and are successfully creating a large number of employment opportunities."

He further noted that the facility will be developed into a fully sustainable green industrial park, with all products aimed at export markets.

"We are working on creating more employment opportunities for women through ventures like telemarketing centres," he said.