Welcome
SHAFAYET SHAFIN(Leader)
TANVIR AHMED CHOWDHURY
MONIKA FARJANA
MD. ISHTIAQUE AHMED
SAMIA BINTE NASIR TUPTUP
Group – 01
Subject & Section- Capital Budgeting (Sec A)
FACULTY- Bohi Shajahan
PROGRAM- B.B.A
Capital Budget (Presentation)
1.-Do you think the expansion of investment in RMG is a wise
decision? Justify.
SAMIA BINTE NASIR TUPTUP
ID- 19-39851-1
ABOUT
Question-1 (Samia)
BANGLADESH IS THE 2ND
LARGEST READY-M ADE
GARMENTS (RMG) EXPORTER IN
THE WORLD AFTER CHINA.
ABOUT 81%
OF ITS EXPORT EARNINGS ARE
COMING FROM RMG. TEXTILE
AN D AP PA R E L S E C T O R ’ S
CONTRIBUTION TO
BANGLADESH
GDP IS AROUND 20%. ABOUT 20
M I L L I O N P E O P L E A R E D I R E C T LY
A S S O C I AT E D W I T H T H E
I N D U S T R Y. I T I S C L E A R T H AT
MAIN DRIVING FORCE OF
COUNTRY’S ECONOMY IS THIS
I N D U S T R Y. N O W B A N G L A D E S H
I S D R E A M I N G T O H AV E M I D D L E
I N C O M E C O U N T R Y S T AT U S B Y
2 0 2 1 , R M G W I L L C E R T A I N LY
P L AY A C R U C I A L R O L E I N
M AT E R I A L I Z I N G T H E D R E A M .
5
Business In RMG
 Quick return
 Huge market opportunities
 Abundant & skilled workforce
 Strong backward & forward linkage
 Recognized hotspot for souring
 Geographic & demographic advantage
 Duty advantages in export destinations
 One of the safest RMG in the world
Add a Footer
6
THINGS TO BE CONSIDERED WHILE
INVESTING IN RMG
 Only efficient companies will survive
 Financial Management is the key
 Investments should add capacity for
new product ranges
 Invest in design and development
 Value addition
7
Capital Budget (Presentation)
2.-What parameters are mentioned in the case regarding a huge
success in investing in RMG sector?
SHAFAYET SHAFIN
ID- 19-40324-1
The view of point that
make successful & great
benefits in RMG_
• Agriculture
• Medicine
• Foods
Question-2 (Shafin)
From the terribly starting of civilization, Bangladesh has being advancing
squad of perfection through investment RMG. It appears that conjointly
the Bangladesh economy that the non-RMG sectors like agriculture, frozen
foods and prescribed drugs do better_

The attire sector, within the business $30 billion attained wherever using 4.4
million operating & they contributed $25.95 billion to Bangladesh’s total export
earnings

article of clothing merchandise attained $12.80 billion, that is 13.65% on top of
the $11.32 billion attained throughout identical amount of FY2017-18.

Woven merchandise attained $13.15 billion, up by 13.07% from $11.51 billion
throughout identical amount of the previous financial year.

The specialized textile sector saw a 36.63% growth to $112.5 million from $82.3,
& The new factories started their operations this year & around 1,200 factories
square measure manufacturing accent things
International Success
in RMG
Relation in Local &
Foreign Success RMG
• Investment & Factors of
• Export Shipment
• Export Earnings .
• Indirect Contribution
• Shipping development.
• Organizational help
• Associate with Business
• Deal with International Market
Industrial RMG in both
Countries.
• Export earnings of RMG both
International & local
• Working improvement &
activities of labors both
countries with mutual
understanding & benefits
Capital Budget (Presentation)
3.-Do you think the current pace of growth will continue? Justify why
or why not.
TANVIR AHMED CHOWDHURY
ID- 19-39749-1
 Bangladesh is the fastest
growing economies in the
world over the past decade,
supported by a demographic
dividend, strong ready-made
garment (RMG) exports, and
stable macroeconomic
conditions. Continued
recovery in exports and
consumption will help growth
rates pick up to 6.4 4 percent
in fiscal year 2021-22.
Question-3 (Tanvir)
The COVID-19 pandemic
decelerated economic growth
in 2020. The pace of poverty
reduction slowed down,
exports declined, inequality
increased across several
dimensions and the poverty
rate in 2020 increased to 18.1
percent from 14.4 percent.

Nevertheless, strong
remittance inflows and a
rebound in export market has
helped the economy to start
recovering gradually.
development priorities
include diversifying exports
beyond the RMG sector;
deepening the financial
sector; making urbanization
more sustainable and
strengthening public
institutions
Capital Budget (Presentation)
4.-What could be the prime challenges that could be faced from such
type of investment for stakeholder?
MONIKA FARJANA
ID- 17-35569-1
RMG Sector Makes Bangladesh As A Brand
To The World
Market. The Apparel Buyers
Are Rotate In Bangladesh Mainly Due To
The Following Reasons-
Lower price of the product
Branding quality of the goods
Innovative design, smooth finishing
Committed to provide goods as per the
retailer‘s time frame and demand
RMG this sector has also some challenges
Lack of work efficiency
Cost of relocation this sector to the other places,
Development of poor infrastructure
Lack of application of labor law and poor standard of labour law,
Currency devolution with Euro,
Political turmoil,
Lack of GSP facility from world market
To meet the vision 2021 and
The lacks of commitment of the stakeholder in this regard are imperative.
Capital Budget (Presentation)
5.-Why do you think this case is significant for your course? Explain
its contribution.
MD. ISHTIAQUE AHMED
ID- 19-39401-1
Investment in RMG Sector
Case significancy with my course• Budgeting.
• Long term investment.
Question-5 (Ishtiaque)
Investment in RMG Sector
Analysis & Tools
Decision.
Tools of capital budgeting.