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

[Saif]

Why Savar leather park cannot go global

The recent findings about the Leather Industrial Park in Savar by the Implementation Monitoring and Evaluation Division (IMED) have once again brought Bangladesh's struggle with industrial governance, environmental compliance and export competitiveness into sharp focus. What was once envisioned as

thefinancialexpress.com.bd

Why Savar leather park cannot go global

Wasi Ahmed
Published :
Nov 25, 2025 23:47
Updated :
Nov 25, 2025 23:47

The recent findings about the Leather Industrial Park in Savar by the Implementation Monitoring and Evaluation Division (IMED) have once again brought Bangladesh's struggle with industrial governance, environmental compliance and export competitiveness into sharp focus. What was once envisioned as a modern, environmentally responsible industrial cluster-capable of lifting Bangladesh's leather sector into the league of globally compliant exporters-has instead emerged as a textbook example of how systemic inefficiencies can derail even the most ambitious national projects.

The IMED's report, which lays bare an array of operational, structural, and environmental failures, underscores a deeper malaise: the absence of sustained oversight and institutional commitment in the country's major industrial undertakings. The project fell short in virtually every area that mattered-budget discipline, construction quality, timeline adherence, regulatory compliance, and environmental responsibility. The cumulative impact is not only staggering in monetary terms but reputationally debilitating for a sector that holds immense promise.

When the Leather Industrial Park was approved in the early 2000s, it symbolised a transformational shift. The relocation of tanneries from Hazaribagh-then one of the world's most polluted industrial zones-was intended to protect Dhaka's environment while building a globally competitive leather-processing hub in Savar. The project's original budget of Tk 1.76 billion and three-year timeline were modest considering the key activities to be undertaken -- a Central Effluent Treatment Plant (CETP), integrated industrial infrastructure, waste management facilities, and a clean environment that would finally allow Bangladeshi leather goods to enter premium Western markets.

Nearly two decades later, the project has ended up costing more than five times its initial budget and taking over six times longer than planned. This increase in cost and time over-run would have been tolerable, had the end result achieved its objectives. Instead, the CETP, the centre-piece of the entire project, remains noncompliant with both international benchmarks and even the government's own environmental standards. Effluent samples collected by both IMED and the Department of Environment reveal dangerously elevated levels of total suspended solids, chromium, chloride, and biochemical-oxygen demand. These indicators paint a troubling picture -- a facility that not only fails to treat industrial waste effectively but also continues to pose real threats to local rivers, ecology and human communities.

The consequences are far from environmental alone. Because the CETP does not meet international standards, leather factories in Savar are unable to procure the Leather Working Group (LWG) certification-now a global prerequisite for accessing high-value markets in the EU, USA, Australia, Russia, and beyond. The lack of certification forces exporters to divert their products to low-end markets such as China, where returns are 50-60 percent lower. Experts estimate that Bangladesh is losing over $500 million in potential export earnings each year due to this certification gap.

Beyond environmental compliance, the governance failures exposed in the project are equally alarming. Over the 18.5 years of implementation, the project saw 17 project directors, 12 of whom were part-time. Such a high turnover undermined continuity, accountability, and strategic direction. In industrial development projects, especially those involving complex infrastructure and environmental safeguards, consistent leadership is essential. Instead, the Savar leather park was left adrift, steered by revolving-door leadership with little ability to take long-term ownership of outcomes.

The IMED's inspection also uncovered glaring construction-related lapses. Cracks in roof slabs, exposed reinforcement in cable drains, inadequate waterproofing, and substandard casting point to serious oversights by contractors and weak monitoring by public agencies. For a project of such national importance, these structural flaws reflect not just poor workmanship but a broader negligence to public investment and industrial safety.

Adding to the operational challenges is the lack of essential supporting services within the leather estate. Absence of banks, insurance offices, and postal facilities may seem minor, but for tannery owners, these omissions translate into daily operational difficulties.

What emerges from the IMED review is a disturbing image of a project caught between ambition and apathy, between promises made and promises unfulfilled. The High Court's directives in 2017, which mandated proper operation of the CETP and broader environmental safeguards, remain largely unimplemented. Such institutional disregard not only weakens environmental governance but erodes public confidence in the government's ability to enforce the rule of law.

The leather sector in Bangladesh still holds significant potential. With the global market for sustainable and ethically produced leather expansion, Bangladesh could seize tremendous opportunities-if only the compliance bottleneck was resolved. The IMED has rightly warned that unless the Ministry of Industries immediately operationalises the CETP at international standard, enforces strict environmental regulations, and accelerates LWG certification for factories, Bangladesh will continue losing ground in premium leather markets.

The story of the Savar Leather Industrial Park is ultimately a cautionary tale: that infrastructure alone is not enough, that environmental responsibility cannot be an afterthought, and that governance-above all-matters. Without institutional reform, transparent oversight, and a culture of accountability, even the most well-funded industrial projects risk becoming monuments to missed opportunities.

Now that the IMED has come up with its findings on the appalling state of the CETP project, it remains to be seen whether it becomes merely another example of squandered potential, or is there any decisive action for the government to resuscitate it.​

 

[Saif]

Leather and footwear: The next big export frontier for Bangladesh

When Bangladesh’s export story is mentioned, garments usually dominate the headline. Yet beneath that louder narrative, another sector has been steadily gaining international attention.

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Leather and footwear: The next big export frontier for Bangladesh

By K Tanzeel Zaman

When Bangladesh’s export story is mentioned, garments usually dominate the headline. Yet beneath that louder narrative, another sector has been steadily gaining international attention. The leather and footwear industry, once known mainly for exporting raw hide, is now quietly positioning itself as one of Bangladesh’s most promising export frontiers. Industry insiders say the shift is real, and it is evident in the stories of those who left comfortable lives abroad to return and build something from scratch.


As of 2025, the industry is ranked among the top global players. Bangladesh is the 18th largest exporter in the global footwear market. Last fiscal year (FY2024-25) saw a surge in footwear exports, and earnings rose more than 34 per cent. Numbers rarely lie. They point to a sector that is waking up properly, not by accident, but because the ingredients are finally starting to align.

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However, statistics alone do not capture why this sector feels different now. You understand it better when you hear someone like Sara Hossain speak.

Md Saddam Hossain, Quality Assurance Officer, Craftsman

Hossain is the Corporate Director of Craftsman Footwear and Accessories, someone who had every reason to stay in Canada after living there for 18 years. A stable job, a predictable life, a child settled in school — a routine that worked without friction. Yet, none of it felt like it was building anything. When her father floated the idea of a shoe factory, she hesitated. But took the chance.

She arrived knowing nothing about making shoes. She learnt by walking the factory floor with her father and realising how many hands touch one pair before it reaches a shelf.

“We have no idea how many people are involved in making just a pair of shoes. There is so much that goes into making them comfortable and look good,” she says.

Her creativity found a home in this repetitive craft. She also noticed almost immediately that Bangladeshis are incredibly trend-sensitive. Yet, the local shelves still look the same. Designing for a market that wants variety but has very few people producing it felt like a chance worth fighting for. As she observed, “People follow global trends, but locally we still see the same designs in stores.”

That sense of possibility is one of Bangladesh’s biggest advantages. Labour costs remain competitive. Raw materials are available at home. Buyers from Europe and North America are already watching because the pricing and quality have improved. The government recognises the sector as a priority for investment under the Bangladesh Investment Development Authority (BIDA) and has created incentives to support it.


Still, the road is anything but smooth. There are deep challenges the country must acknowledge. Many tanneries and leather units operate far below capacity.

The export basket is still too heavy on raw hides and semi-processed products that earn little compared to finished shoes and bags. Countries like China, Vietnam and India capture the markets Bangladesh aims for because they mastered finishing, branding and consistency long ago.

Skill shortages remain a major bottleneck. The number of actual designers is low. Many who claim the title are technicians or hobbyists.

“When I am hiring someone whom I call a designer, he is not actually a designer,” Hossain said. “He is basically a technician or maybe a student out of passion.”

Financing is another hurdle. Entrepreneurs struggle with collateral demands, high interest rates, and banks that treat the sector as high risk. Foreign investment remains far below potential. Buyers abroad still associate Bangladesh with raw leather, not luxury finishing, which creates a credibility gap.

Even when manufacturers want to scale, the supply chain slows them down. Without proper backend finishing capabilities, much of the leather has to be sent to China for processing and then bought back at a higher price. That adds delays and uncertainty.

Local inspection is often impossible when shipments come from abroad, leaving room for inconsistency. “I have to buy my own leather at a higher price after it goes to China and comes back,” Hossain said.

Despite this, people like Sara Hossain remain in the trade. Their factories employ hundreds. Her reflections on Bangladesh’s chaos are painfully relatable. She does not thrive in it. She developed routines to survive it.

Good shoes, she says, are defined by comfort, quality and proportion. If you forget you are wearing them after a day at the office, then they have done their job. The process is long and meticulous. A single pair takes around two to three hours.

Some things remain proudly manual, such as finishing touches, hand-painted areas, and details that machines cannot replicate. Even with machinery, the final eye must be human. In her factory, it is still about 60 per cent manual and 40 per cent automated. “Handmade things have their own finishing, and that’s the uniqueness,” she said.

Hossain believes Bangladesh has not yet formed its own design language but is slowly getting there. She builds collections with trends in mind but adjusts for weather, local habits, and the demographic she is serving. Comfort testing happens in multiple rounds, and she relies on real users to point out issues.

Sourcing remains largely local at around ninety per cent, but limitations in processing force her to rely on other countries for the rest. Exporting is difficult because buyers want premium finishing but do not want to pay a premium price. Logistics issues and port delays add another layer of frustration.

Her vision for the future is simple but ambitious. Sara Hossain wants people to pick up local products and recognise the value without comparing them to foreign brands first. She wants longevity and sustainability to matter.

Under the right conditions with investment, policy support and infrastructure, Bangladesh’s leather and footwear sector can become a major growth driver. It already has the labour, the demand, the raw materials and the ambition. What it needs now is a cleaner system, better financing, improved compliance and a national commitment to value-added production. The foundation is here. The momentum is real. The question now is whether Bangladesh is willing to step fully into a future it has already begun building.​

 

[Saif]

GoTan Project ends with strong call for safety culture in Bangladesh’s tanneries

The closing ceremony of the “Good Working Conditions in Tanneries (GoTan)” project was held on Wednesday at a hotel in Dhaka city under the theme “From Risk to Responsibility: Towards Safety Culture in Bangladesh’s Tanneries". Speaking as the chief guest, A S M Ashraful Isl

thefinancialexpress.com.bd

GoTan Project ends with strong call for safety culture in Bangladesh’s tanneries

FE ONLINE REPORT

Published :
Apr 22, 2026 23:23
Updated :
Apr 22, 2026 23:23

The closing ceremony of the “Good Working Conditions in Tanneries (GoTan)” project was held on Wednesday at a hotel in Dhaka city under the theme “From Risk to Responsibility: Towards Safety Culture in Bangladesh’s Tanneries".

Speaking as the chief guest, A S M Ashraful Islam, NDC, Additional Secretary of the Ministry of Labour and Employment, said, “This event marks an important step towards building a safe and sustainable tannery sector in Bangladesh. The GoTan project has strengthened occupational safety and health (OSH) practices and institutional capacity. Moving forward, ensuring compliance, environmental responsibility, and collective action will be essential to enhance global competitiveness.”

Md. Matiur Rahman, Joint Inspector General of the Department of Inspection for Factories and Establishments (DIFE) and Project Director of GoTan, highlighted the significant progress achieved through the initiative. “The capacity of workers, employers, and relevant stakeholders has been strengthened. There is now increased awareness of and commitment to implementing labour laws and OSH standards. A positive shift in the mindset of factory owners is one of the project’s major achievements,” he stated.

Md Firoz Alam, Head of the GoTan Project, emphasised that the initiative went beyond a conventional project. “It represented a commitment to improving workers’ health, safety, and working conditions,” he said. He noted that, for the first time, a sector-specific inspection checklist for the tannery industry had been developed and efforts were made to effectively implement OSH management systems. “Our core focus was to foster a sustainable OSH culture in the tannery sector,” he added.

In his remarks as Chair, Arif Ahmed Khan, Additional Inspector General of DIFE, expressed appreciation to all stakeholders for successfully completing the project despite various challenges. He noted that the tannery sector holds significant potential and stressed the importance of collective efforts by employers, workers, and all concerned parties to drive its future growth.

Representing workers, Abul Kalam Azad, President of the Tannery Workers Union, highlighted ongoing challenges in the sector. “Although tanneries were relocated from Hazaribagh to Hemayetpur in 2017, the expected improvements in environmental conditions and overall business development have not been fully realised," he said. He further observed that while Bangladesh’s garment sector has achieved global leadership, the tannery sector—despite being older—continues to face significant sustainability challenges. He urged all stakeholders to reflect on these issues and take effective measures for the sector’s advancement.

The event was attended by officials from the Ministry of Labour and Employment and DIFE, representatives of the German Embassy and GIZ, as well as leaders of tannery owners’ associations and workers’ organisations.​

 

[Saif]

Bata to make quality shoes affordable for all

Shoemaker Bata is strengthening its presence in Bangladesh, promising to “democratise” footwear by making quality, design and comfort accessible to all, not just a narrow segment of buyers, according to the group CEO.

www.thedailystar.net

Bata to make quality shoes affordable for all
Group CEO Panos Mytaros says in an interview

Ahsan Habib

Panos Mytaros

Shoemaker Bata is strengthening its presence in Bangladesh, promising to “democratise” footwear by making quality, design and comfort accessible to all, not just a narrow segment of buyers, according to the group CEO.

In his first visit to the country as the chief executive of Bata Group, Panos Mytaros said he gathered fresh insights into a market shaped by tradition, changing tastes and rising expectations.

In an interview with The Daily Star, Mytaros said he wants to modernise the brand by blending global design trends with local preferences, especially around celebrations, while ensuring high standards remain affordable across income groups.

“I find the Bangladeshi consumers very traditional. For them, celebrations matter a lot, and buying patterns increase during those times,” he said.

At the same time, he observed a clear shift in consumer behaviour. “The consumer wants quality and is ready to pay an affordable price for quality. It is not just a price-sensitive consumer base, which is very interesting,” he said. “They also want a specific taste and variety.”

Bata has been running its business in Bangladesh since 1962, and enjoys strong brand recognition. But Mytaros said that legacy alone will not secure its future.

“Consumers know Bata. We do not need to prove Bata to the consumer,” he said. “But that gives us a very big responsibility to continuously attract new consumers and be relevant.”


That relevance, he said, depends on adapting to modern expectations without losing sight of tradition. “The Bangladesh market needs more variety. It needs design which fits, and this is what Bata has to do and will do.”

Drawing on his global experience, Mytaros described Bata as a “unique” brand for its deep local roots.

“Bata is considered local in many countries because it has been there for many years. It is part of the culture,” he said. “It is not somebody selling shoes.”

That identity shapes the company’s strategy. “Bata cannot be just a global company which makes a global collection and ships it to a market,” he said. “It needs to be with the market and at the same time be global.”

Central to that approach is what he called an “unreasonably good” product proposition, which explains why a customer should choose your product, specific benefits, solutions to pain points, and competitive advantages.

“The consumer has to touch and say, ‘This is so good,’ but it is actually unreasonable economically,” he said. “There is this perception that quality and premiumness cost more, and this is something Bata has to make available for everyone.”

At this point, the idea of democratisation runs through the company’s plans.

“I call it democratise quality, democratise design, democratise comfort,” he said. “This is actually very fundamental in Bata’s history.”

He said the goal is to serve all segments of society. “We will make sneakers that are comfortable and designed for everyone. Not for the elite or only one part of the demographic,” he said. “At the end of the day, it is the same ritual we had many years ago, but modernised.”

Alongside product changes, Bata is restructuring its business model to reduce complexity while keeping local responsiveness.

“We are a very big company that operates in a highly decentralised way. It worked for many years, but it created complications,” said the CEO.

Simplification, he added, is essential. “If we offer too many things, we confuse the consumer,” he said. “Simplification starts with the product and the message.”

In Bangladesh, the company plans to focus on two core categories: leather shoes and sneakers. “Be very clear -- these are our sneakers, these are our shoes, and tell the consumer why you buy Bata,” he said.

For the focus on sneakers, Mytaros pointed to the rapid rise of casual footwear worldwide.

“Sneakers are a very big trend and have changed the shoe world in the past decade,” he said. “It is not just a choice anymore; it is part of consumers’ lives.”

Bata plans to sharpen its sneaker offer while keeping it inclusive. “You will see much more clarity, much more relevance, especially with younger audiences. But not only for them, for everyone,” he said.

Mytaros said he sees Bangladesh playing a larger part in the group’s global strategy, both as a market and a production base.

“I see a lot of design inspiration coming from Bangladesh influencing Bata,” he said. “And definitely, more manufacturing and exporting shoes from Bangladesh to other Bata countries.”

With a population of around 180 million and a fast-developing economy, Mytaros said he believes the country can become a key growth driver for the group.

On the expansion plan, the CEO said the company is preparing to expand both retail and manufacturing operations in Bangladesh.

“We need to get more Bata shoes onto people’s feet,” he said. “Many consumers do not relate to Bata today. We need to get them back.”

He said that growth will come through new stores, franchise partnerships and higher production capacity. “We have plans to expand retail, expand with partners and expand manufacturing, for Bangladesh and for export,” he said. “So yes, general expansion.”

Summing up his approach, he said, “Our mission is simple. Make great shoes that everyone can afford, not just a few.”

Bata Shoe Company Bangladesh Ltd reported sales of Tk 700 crore in the first nine months of 2025, up from Tk 696 crore in the same period a year earlier. In 2024, the listed multinational declared a 445 percent cash dividend for shareholders.

The company, listed on the Dhaka Stock Exchange in 1985, saw its shares trade at Tk 831 yesterday.​