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

[Saif]

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.

Could you please move the above post to textile & RMG thread? Thanks

 

[Saif]

US tariff hike no big blow to non-leather footwear exports

Emerging export item non-leather footwear remains largely unscathed after the US tariff storm, thanks to Bangladesh’s limited exposure to the American market and a stronger competitive position than some peers.

www.thedailystar.net

US tariff hike no big blow to non-leather footwear exports
Shoeniverse MD says buyers resume bookings

Riad Mahmud

Emerging export item non-leather footwear remains largely unscathed after the US tariff storm, thanks to Bangladesh's limited exposure to the American market and a stronger competitive position than some peers.

The sector, which has recently entered the half-a-billion-dollar export club from $189 million a decade earlier, is seeing American buyers returning to Bangladeshi exporters, according to a leading industry figure.

Google News LinkFor all latest news, follow The Daily Star's Google News channel.
"US buyers have done their calculations and seem ready to absorb the 35 percent tariff for now," Riad Mahmud, managing director of Shoeniverse Footwear, told The Daily Star in a recent interview.

Mahmud, who supplies products to top buyers like Walmart, Target, and Reebok, said, "Bangladesh can still emerge as a major player in the global synthetic footwear market despite recent tariff pressures."

Around 90 percent of Bangladesh's non-leather footwear exports currently go to Europe. But Mahmud sees greater promise across the Atlantic.

"US orders are large and consistent. When one style runs on the line for weeks, our efficiency improves. Europe's orders are smaller and fragmented. Constant style changes reduce output and raise costs," the Shoeniverse MD said.

Just months ago, top US retailers were exploring Bangladesh as an alternative sourcing base amid shifting global trade dynamics. The sudden introduction of a 20 percent US tariff on Bangladeshi products, on top of an existing 15 percent, had initially put a damper on that optimism.

The tariff hike, Mahmud said, was "like a fog rolling over clear skies." Half his confirmed orders were frozen almost overnight. "Buyers simply said, 'We'll get back to you.'"

Faced with idle capacity, Shoeniverse pivoted to lower-margin clients to keep its factory floors busy. "We didn't earn profit, but we avoided empty lines. It was survival." Now, orders for November and December are back on the books.

Building Resilience

To compete sustainably, Mahmud argues, Bangladesh needs the scale and stability that the US market offers. The tariff shock, he says, also exposed structural weaknesses, particularly the high dependence on Chinese raw materials, which stretched lead times to 90 days.

To address this, Shoeniverse is offering land and infrastructure at its Bhaluka industrial zone to Chinese suppliers willing to form joint ventures in Bangladesh. "If components like soles and uppers are produced here, we can cut lead times from three weeks to three hours. That's how you withstand external shocks—not by lobbying, but by building smarter."

Mahmud likened the current crisis to emergency surgery. "We didn't have time to prepare; we simply had to respond. But now we must plan our recovery and future growth."

He estimates Bangladesh's footwear exports could reach $1 billion in two and a half years if key hurdles are cleared. Chief among them is the Nirapon certification, which guarantees US-standard safety and compliance.

"It took Parasol 18 months to secure theirs. Without it, we can't access high-volume US orders," he said, adding that several other firms, including Pran-RFL and MAF Shoe, are also pursuing the certification.

Beyond America

Beyond the US, Mahmud sees potential in the Australian market, which is also seeking alternatives to China.

Besides, Vietnam's rising costs and capacity limits could push European and Australian buyers towards Bangladesh. "Bangladesh is well positioned to benefit, if we act fast."

With Bangladesh's graduation from the least developed country category approaching next year, Mahmud warns that Europe alone cannot sustain growth. "To recover our investments, we need bigger buyers from larger economies."

Mahmud was pragmatic on the US push for stronger labour unions. "As long as it's not disruptive, I believe in labour rights. We've already implemented 8-hour shifts and overtime limits. We've rejected child labour. These are global standards, and we accept them."

"The human and mental cost of violating these rights is too high, far beyond any financial calculation," he added.

Policy and Power

To ensure long-term competitiveness, Mahmud called for reforms in banking regulations.

"Payment cycles with US buyers can exceed 90 days, but current policies don't accommodate that. Also, occasional penalties for defective shipments are flagged as suspicious by banks, even when they're legitimate business practices," said the exporter.

Energy supply is another pressing issue. "We often face 6 to 8 power outages a day. That forces us to rely on gas or diesel generators, raising our production costs significantly."

Despite the hurdles, Mahmud remains hopeful.

"This is our RMG moment," he said, referring to the boom of Bangladesh's readymade garment sector, the crown jewel of the country's export industry.

"If we localise supply chains, ensure compliance, and scale up, we can replicate the garment sector's success in footwear," he noted.

The tariffs, he said, have not shut the US market. "The door is still open, just with a higher threshold. The opportunity remains. Now it's on us."​

 

[Bilal9]

Bangladesh’s Footwear Exports Surge on Strong Demand​

Bangladesh’s footwear sector posted robust growth between July 2024 and May 2025, with both leather and non-leather segments driving the momentum, Export Promotion Bureau data shows.

Exports of non-leather footwear jumped 30.25% YoY to $494.28 million, while leather footwear rose 28.96% YoY to $620.17 million. In May alone, leather footwear exports surged 54.68% to $74.82 million, outpacing non-leather footwear’s 21.14% rise to $48.07 million.

By contrast, other leather segments underperformed. Leather goods fell 3.39% YoY to $317.87 million (though May saw a 20.78% rebound), and finished leather slid 7.82% YoY to $119.78 million.

Overall, Bangladesh’s leather exports climbed 12.55% YoY to $1.06 billion, largely fueled by the footwear boom.

 

[Saif]

At last IMED diagnoses leather park's malaise!

The imbroglio that the Savar Leather Industrial Park finds itself in is the result of ineptitude and concerns other than the overriding one to turn this facility into a world class leather hub. Begun as early as 2003, the relocation of many tanneries from Dhaka's Hazaribagh took place in 2017

thefinancialexpress.com.bd

At last IMED diagnoses leather park's malaise!

FE
Published :
Nov 24, 2025 22:29
Updated :
Nov 24, 2025 22:29

The imbroglio that the Savar Leather Industrial Park finds itself in is the result of ineptitude and concerns other than the overriding one to turn this facility into a world class leather hub. Begun as early as 2003, the relocation of many tanneries from Dhaka's Hazaribagh took place in 2017 and continued well beyond. The fracas over the industrial estates' central effluent treatment plant (CETP) and the government's false claim for readying the leather park were to blame for no mass shift by tanneries from Hazaribagh to the new location in Savar. So far, 140 of the 155 tanneries allocated plots there have started operating but the rest are yet to complete construction of their factories. Actually, tanners alone are not responsible for such prolonged shifts. It is the deposed government that is accountable for the imbroglio. The malfunctioning CETP is not only acting as a disincentive but has also stood as an impediment to obtaining Leather Working Group (LWG) certificates by deserving leather factories and getting access to high-end export markets. The country's image as a leather and leather goods producer has also seriously been compromised.

Now the implementation monitoring and evaluation division (IMED) under the ministry of planning (MOP) has assessed the weaknesses and lost opportunities of the leather industrial estate. Apart from the cost escalation and delayed construction of facilities, the number one crisis involves CETP's limited capacity and that too falling short of the standard treatment of effluent. The entire project thus fails to deliver the service it was meant to do. This failure turns out to be the main cause for hindering the prospect of Bangladesh's tannery industry. However, the fact that IMED took such a long time to investigate the tannery park's loopholes smacks either of its limitation or indifference to this potentially crucial foreign exchange earner, perhaps next to the readymade garments (RMG).

Allegedly, industrial parks or any other mega projects are undertaken mostly for personal gains by quarters involved with the process, not on patriotic consideration. Or, how can one justify the fiasco bedevilling the CETP at the Savar leather estate? The Chinese company that got the working order for the CETP should have been made to account for the useless facility. The environmental damage caused to the River Dhaleshwari and the estate's surrounding because of the failure on the part of the treatment plant is incalculable. Any government anywhere would have filed a lawsuit against the company for non-compliance.

So here is a case of mismanagement of a vital project, a lack of monitoring and supervision or misgovernance. This also highlights the underdevelopment of countries under the rule of authoritarian and oligarchic governments which do not have to be accountable to their people. A country's progress is thus pulled down by its backlogs. This country desperately needs to diversify its export basket. The leather could not only fill some of the vacuum but also earn foreign exchange 50-60 per cent more in high-end markets compared to the low-end markets. Quite a number of leather factories are producing world-class leather goods. Reportedly, seven to eight factories have earned the LWG certificates with just one in the Savar leather industrial park, which has its own CETP. If about 150 tanneries could get the LWG certificates, the leather industry here could grab a good share of the around $500 billion global leather goods market, projected to grow to one valued at $855 billion by 2032.​

 

[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.​