Economy
Raymond Eyes India Amid Bangladesh Political Shift
Following the political shift in Bangladesh, Raymond, the renowned textile and clothing company, has reported a surge in inquiries from international businesses, according to the Times of India. The company sees this as a prime opportunity to strengthen its operations, particularly in India.
When questioned about the possibility of moving some of Raymond’s garment manufacturing from Bangladesh to India, Chairman and Managing Director Gautam Singhania expressed optimism. “We are hoping so. We are seeing the inquiries. It obviously needs a little bit of time, but we are certainly seeing positive signs on that,” he stated.
Singhania highlighted India’s advantages, noting that Raymond’s end-to-end supply chain, encompassing both fabric and garment production, positions the country as a more favorable base. This integrated supply capability not only streamlines production but also accelerates final delivery for international brands, making India a compelling choice despite its higher labor costs compared to Bangladesh.
“While Indian labor may be more expensive than in Bangladesh, consider the overall picture. We offer both fabric and end-to-end supply. This saves time, and for that, you pay a premium,” Singhania explained.
He further emphasized that Bangladesh lacks the fabric supply chain that India boasts, presenting a significant opportunity for India to capitalize on its well-established fabric base. “Bangladesh only has garmenting bases, whereas India has the complete supply chain,” he added.
Raymond’s recent capacity expansion has also come online at an opportune time, according to Singhania, who mentioned that the company is continuously exploring new opportunities. He also pointed out that India’s political stability, large middle class, and robust consumption and manufacturing capabilities make it an attractive business environment.
The company is also in the process of listing Raymond Lifestyle, following its demerger from the parent company, which will consolidate all apparel-related businesses of the nearly century-old Raymond group.
In addition to Bangladesh, India is emerging as a preferred sourcing destination as global companies adopt the ‘China+1’ strategy. Singhania noted, “This strategy is benefiting us, strengthening relationships with existing customers, and opening doors to new markets and customer acquisition.”
He also underscored the importance of diversification in business strategies. “Everybody needs a hedging strategy. Nobody would like to put all the eggs in one basket,” he remarked.
Moreover, Singhania contrasted India’s focus on value and quality with China’s emphasis on quantity. “China is about quantity—if you want cheap quality, go to China. India, however, is about value and quality. They are volume; we are value,” he asserted.
Raymond’s Garmenting Unit, which supplies high-value clothing products to leading international brands, is a key player in this shift. According to the company’s latest annual report, Raymond has the capacity to produce 7.5 million pieces of jackets, trousers, and shirts in India, with an additional 3.2 million units produced in Ethiopia.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
