Apparel Online Bangladesh Magazine February Issue 2019 | Page 12

MINDTREE Q-and-A We are almost at the end of 2018, ready to step into 2019… How has 2018 been for you as far as business is concerned? We would also like to hear from you about the achievements/successes/landmarks that may have come your way in the past year which gave your business a new high. Please share your views on the same. Prakhar Singh, Country Manager, GA Morgan Dynamics Khokon Chandra Kundu, Director, Marketing, AKR  Group I don't think 2019 will be quite successful for all as Bangladesh  manufacturers are facing a crucial time now. The reasons are many, but the primary one is the new wages for workers and the National Assembly election. This is propelling the buyers to keep a close watch on the political situation in the country. As on date, the orders for which we are producing and exporting are nothing new. There are no additional CM (higher CM than existing), whereas on the other hand, the workers are waiting eagerly to receive the new salary based on new wage declaration. This is not an easy situation but we have to pay the workers’ next month salary. I am sure it is definitely going to be a big headache. It is also clear that all buyers are fully aware about the new wages declaration which is about 51 per cent more than the existing. But most of the buyers are silent on this issue. They are just giving assurance that they will do something about this very soon. Though some customers have decided to increase the CM, that is very nominal while others are expecting to take a call on this issue from March/April onwards, which according to me, is not very good in terms of business. Since buyers are reluctant to pay, factories would have to pay the workers’ salary based on the new wage structure, which would be a big burden. On the other hand, there is little uncertainty about the National election as well and buyers are sluggish about placing any new orders. So, I  would like to conclude that 2018 is about to get over with very little satisfaction in terms of business, but  2019 I feel will be even more challenging for all RMG units. Apart from the above concerns, the March-April period is not very positive in terms of business for woven  factories while even in May, business is predicted to be slow due to Ramadan. Further, we would have to pay the workers’ salary along with the festival bonus. Considering all these issues, early 2019 will be a very crucial period for the RMG sector from Bangladesh’s perspective. Going by the market feedback post the general elections, we expect 2019 to be a fruitful year from Morgan Tecnica’s perspective. With the rise in wages, more and more factories will adopt automation and this would open new avenues of growth. As far as 2018 is concerned, until October, market was very good. However after October, due to the upcoming general election in Bangladesh, things slowed down a bit. Despite this, we have been able to exceed our target for 2018, and the major reason for this growth has been the prevailing awareness in the industry about the wage hike. This has led many in the industry to start investing in technical interventions to help counter the wage hike from June onwards, in anticipation. Gianpiero Valsecchi, Sales Area Manager, Santoni SPA 2018 was a good year for Santoni and this year too, we are very positive and expect further growth in Bangladesh market. Our knitting technology for manufacturing shoe upper is giving us good results worldwide and I am sure we will get the same results in Bangladesh as well. POST YOUR COMMENTS www.apparelresources.com [email protected] NEXT MINDTREE QUESTION Garry L. Morris, Sales Director (Asia-Pacific region), Navis TubeTex Business in 2018 was reasonably good but in the last couple of months due to Christmas and New Year, business was little slow. Being the holiday season, people were more into a celebration mood globally. However, going forward in 2019, Navis TubeTex is very positive about the Bangladesh market. Bangladesh has always been a good market for us and we have forged very strong ties with our customers and it will be a win-win situation for all of us in 2019. 12 Apparel Online Bangladesh | FEBRUARY 2019 | www.apparelresources.com The very beginning of 2019 witnessed an unfortunate workers’ unrest followed by the Government’s move to hike wages in six grades, while leaving the minimum monthly pay unchanged at Taka 8,000. How do you think these two developments are going to impact your business and the overall growth prospects of the industry going forward? Please share your views on the same…