Comments
Garment exporter Ambattur Clothing, which has a huge manufacturing base in Bangladesh, says the current disenchantment with the working conditions in some of the country’s garment factories has not impacted its business.
The industry will clean itself up and bounce back in a year, according to Vijay Mahtaney, Managing Director of the Chennai-headquartered company.
Recent accidents (a fire accident and a building collapse) at two garment factories in Bangladesh, which killed several people, have raised questions about safety standards here.
In an immediate impact, buyers have shifted some of the orders to India, Vietnam and Cambodia.
The business here may shrink five per cent this year, but Bangladesh, seen as a strong threat to India, will get its act together, says Mahtaney.
Cheaper production costs prompted Ambattur Clothing to set shop in Bangladesh in 2007.
The company has two manufacturing units, three lakh sq ft each, in Bangladesh, employing 8,000 people. (It also has manufacturing units in Bahrain, Jordan and Chennai.)
Over 60 per cent of its business comes from Bangladesh, supplying to brands such as Zara, Gap and Taylor. Chennai accounts for just 15 per cent.
“My business in Bangladesh has not been hit by the crisis due to the compliance standards we have developed. The delinquent factories will also catch up. Bangladesh has a productive labour base which is hungry to grow.”
Labour and factory laws exist in Bangladesh, but they have not been adequately enforced.
The Indian garment industry too, was in a similar situation a few years ago, before the laws tightened, says Mahtaney.
While Disney has reportedly pulled out of Bangladesh, Walmart has severed ties with factories not following standards. Global media has reported that the US may restrict or remove import breaks to Bangladesh, but Mahtaney feels such a move will only be deemed “anti-poor”.
“Especially when European companies have signed a pact to help Bangladeshi factories improve safety standards.”
Bangladesh’s garment exports stand at $20 billion. Six years ago, it was just $8 billion. India exports approximately $30 billion worth of garments and textiles.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.