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.
The Kazipara and Mirpur-10 metro stations, which have been closed, are expected to reopen by the end of September, though the exact date has not yet been confirmed. Mohammad Abdur Rauf, Managing Director of Dhaka Mass Transit Company Limited (DMTCL), told TBS that a technical team has been tasked with resolving the issues at the stations.
“We are working to reopen the two stations within this month, but I cannot give a specific launch date yet. We will hold a meeting with the technical team and other stakeholders soon to review the progress. A decision is likely on 18 September,” Rauf said.
He noted that Kazipara station is likely to open earlier due to less severe damage, while Mirpur-10 may face delays as it requires machinery that needs to be imported.
Additionally, Rauf mentioned plans to begin metro rail operations on Fridays starting from 20 September, with efforts being made to meet this timeline.
Dr. Muhammad Yunus, the Chief Adviser of the interim government, has announced the formation of six commissions as an initial step toward reforms, including constitutional amendments. These commissions are expected to begin operations on 1 October and complete their work within three months.
In an address to the nation on Wednesday evening (11 September) from the Chief Adviser’s Office, Yunus outlined the government’s reform agenda. This is his second national address since taking office on 8 August.
Yunus explained that the formation of the six commissions is the first step in a broader plan for constitutional reform. He stated that the commissions would be led by six distinguished citizens, selected based on their expertise. These commissions will tackle various reform areas, and more will be established in the future.
Emphasizing the importance of constitutional reforms for free and fair elections, Yunus stated, “We believe that imposing majority rule through elections, resulting in misgovernance or consolidating all power into the hands of one person, family, or group, is unacceptable. To prevent this, we are considering reforms to institutions like the Election Commission and others involved in the election process. Reforming the police administration, civil service, judiciary, and Anti-Corruption Commission is essential for ensuring fair and transparent elections. These reforms will also contribute to establishing a state system based on public ownership, accountability, and welfare.”
Yunus announced the names of the six commission heads:
- Dr. Badiul Alam Majumdar will lead the Election System Reform Commission.
- Sarfaraz Chowdhury will head the Police Administration Reform Commission.
- Justice Shah Abu Naeem Mominur Rahman will lead the Judiciary Reform Commission.
- Dr. Iftekharuzzaman will lead the Anti-Corruption Reform Commission.
- Abdul Muid Chowdhury will head the Public Administration Reform Commission.
- Dr. Shahdeen Malik will lead the Constitutional Reform Commission.
The Chief Adviser mentioned that the other members of these commissions would be determined in consultation with the heads. Additionally, representatives from the advisory council, students, workers, social movements, civil society, and political parties will participate in the commissions’ discussions.
Yunus expressed hope that the commissions would be fully operational by 1 October and complete their work within three months. Based on the commissions’ reports, the government plans to organize consultations with major political parties. A broad consultation, lasting three to seven days, involving students, civil society, political party representatives, and the government will follow. This consultation will finalize the reform framework and outline its implementation strategy.
Yunus concluded by stating that this initiative will unify the nation, fulfilling the demands of the July uprising and strengthening the country with renewed hope and optimism.
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has urged the Bangladesh government to implement a more investment-friendly tax structure to enhance foreign investor confidence.
During a meeting on Wednesday (11 September) with the newly appointed chairman of the National Board of Revenue (NBR), Abdur Rahman Khan, FICCI leaders highlighted the need for comprehensive tax reforms that would position Bangladesh as a more attractive destination for foreign direct investment (FDI) and strengthen the national economy.
Zaved Akhtar, President of FICCI, stressed the significance of fully digitising NBR operations, particularly by advancing automation systems to maximise revenue collection, as outlined in the chamber’s press release.
The delegation also recommended the establishment of a dedicated research unit within the NBR to broaden the tax base and increase revenue through in-depth market analysis, identifying gaps between market share and revenue generation.
NBR Chairman Abdur Rahman Khan acknowledged the importance of automation in stimulating economic progress and welcomed FICCI’s research findings on the taxation landscape.
FICCI’s delegation included Senior Vice President Eric M. Walker, other board members, and senior officials from member companies, alongside key officials from the NBR.
