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Letter of Transmittal
Sharmin Sultana Sumi
Lecturer
Department of Business Administration in Finance & Banking
Faculty of Business Studies
Bangladesh University of Professionals
Mirpur Cantonment, Dhaka, 1216
Subject: Submitting a paper on Legal Environment of Textile Industry.
Madam,
We would like to draw your kind attention to the fact that we are now submitting the final term
paper after doing thorough research on the legal environments of the textile industry of Bangladesh
We have made every attempt to comprehend and implement the guidance you have kindly
provided for us. We have also made every effort to comprehend and assess any implications legal
factors may have on the textile sectors of Bangladeshi businesses. Additionally, we used any
material that was openly accessible and made an effort to create the finest version of the report.
We hope you'll approve of how we approach the topic at hand. We would be delighted to answer
any inquiries or offer any clarification on the study.
Sincerely,
Members of Group 7
Section B
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Acknowledgment
We would like to express our gratitude to the Almighty for giving us the capacity to complete the
term papers. We would like to start by expressing our gratitude to our esteemed course instructor,
Sharmin Sultana Sumi, Lecturer, Faculty of Business Studies, Bangladesh University of
Professionals, for allowing us to write this term paper and for her assistance throughout the
process. Finally, we would like to express our gratitude to all of the group members for their
suggestions and support during the procedure. Finally, we sincerely hope that you will appreciate
our report and provide us with the necessary direction.
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Team Members
Name
ID
Section
MD Mubashwirul Islam
2222151020
B
MD Shahriar Islam
2222151086
B
Azmaine Tarique Rine
2222151088
B
Department
Shuvo
Business Administration in Finance &
Banking
Raisul Azad
2222151118
B
Tanjim Faiyaz
2222151162
B
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Table of Contents
Executive Summary....................................................................................................................................... 6
Report Preliminaries ..................................................................................................................................... 8
Origin......................................................................................................................................................... 8
Objective ................................................................................................................................................... 8
Methodology............................................................................................................................................. 8
Rationale ................................................................................................................................................... 9
Scope ......................................................................................................................................................... 9
Limitations .............................................................................................................................................. 10
Industry Analysis ......................................................................................................................................... 11
Business Model ....................................................................................................................................... 11
Value Creation Process ........................................................................................................................... 11
Marketing and Distribution..................................................................................................................... 11
Target Market ......................................................................................................................................... 12
Product and Pricing Strategies ................................................................................................................ 12
Business Drivers Of the Textile Industry ................................................................................................. 12
Top Players of the Industry ......................................................................................................................... 13
Ha-Meem Group ..................................................................................................................................... 13
Ananta Group .......................................................................................................................................... 13
Plummy Fashions Ltd .............................................................................................................................. 13
Fakir Group ............................................................................................................................................. 13
DBL Group ............................................................................................................................................... 14
Labor Rights and Employment Practices Act 2006 ..................................................................................... 15
Environmental Conservation Act 1995 ....................................................................................................... 16
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Executive Summary
This paper provides a comprehensive analysis of the legal environment surrounding the textile
industry in Bangladesh. The study aims to explore the various laws, regulations, and practices
governing the industry and their impact on business, labor rights, and environmental protection.
The study explores key aspects such as industry analysis, top players, labor rights, and
environmental protection laws.
The report provides preliminary details of the study in Chapter 1, including its origins, objectives,
methodology, rationale, scope, and limitations. This chapter lays a foundation for research and
emphasizes the importance and relevance of understanding the legal environment of Bangladesh's
textile industry.
Chapter 2 focuses on industry analysis, providing insights into business models, value creation
processes, marketing and sales strategies, target markets, products, and pricing strategies. The
analysis provides a comprehensive understanding of the factors driving the growth and
competitiveness of the textile industry.
Chapter 3 covers the top players in the industry, including prominent companies such as Ha-Meem
Group, Ananta Group, Plummy Fashions Ltd., Fakir Group, and DBL Group. Each company is
examined in terms of its industry contribution, market position, and key strengths. This chapter
sheds light on the key players forming the textile sector in Bangladesh.
Chapter 4 focuses on the Labor Rights and Employment Practices Act 2006, which regulates the
rights and welfare of workers in the textile industry. This chapter provides an in-depth analysis of
legal provisions such as minimum wages, working hours, safety measures, child labor regulations,
and dispute-resolution mechanisms. This highlights the importance of defending workers' rights
to ensure a fair and ethical working environment.
Chapter 5 examines the Environmental Conservation Act of 1995 and its impact on the textile
industry. Discuss legal requirements related to environmental protection, waste management,
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pollution control, and sustainable practices. This chapter highlights the industry's responsibility to
minimize environmental impact and follow regulatory frameworks to ensure long-term
sustainability.
The paper ends with a reference section containing a list of sources and materials used during the
research process. References ensure the reliability and completeness of the information presented
in the work.
Overall, this document serves as a comprehensive guide to understanding the legal framework of
Bangladesh's textile industry. This highlights the importance of worker rights and compliance with
environmental protection laws in promoting a sustainable and socially responsible textile industry.
The insights and analysis provided in this paper will be valuable to industry players, policymakers,
researchers, and anyone seeking a deeper understanding of the legal landscape surrounding the
textile sector in Bangladesh.
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Chapter 1
Report Preliminaries
Origin
The origin of this research lies in the growing importance of the textile industry in Bangladesh and
the need to understand its legal environment. The textile industry plays a central role in the
country's economy, contributing to job creation, export earnings and industrial growth. The
purpose of this study is to explore the legal aspects shaping and regulating the textile industry and
to provide valuable insight into the regulatory framework and its implications.
Objective
The main objective of this study is to analyze and evaluate the legal framework of Bangladesh's
textile industry. The purpose of this research is to identify and research relevant laws, regulations,
and policies that affect industry operations, labor rights, and environmental sustainability.
Understanding the legal framework provides stakeholders with insight into the challenges and
opportunities facing the textile industry, enabling them to formulate strategies to improve
compliance, ethical practices, and industry-wide growth.
Methodology
This study uses comprehensive research methods to achieve its objectives. Our research approach
includes an extensive literature review of trade journals, industry reports, government publications,
and legal documents. Primary data is collected through interviews and discussions with industry
experts, policymakers, and stakeholders. Secondary data, such as industry statistics and regulatory
documents, is also analyzed. The results of this study are based on a thorough analysis and critical
evaluation of the collected data.
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Rationale
The rationale for conducting this research is to have a comprehensive understanding of the legal
framework that shapes the textile industry in Bangladesh. The study aims to highlight the strengths,
weaknesses, opportunities, and challenges facing the industry by examining the existing legal
framework. It also aims to identify areas for improvement and make recommendations to improve
compliance, promote workers' rights, and ensure sustainable practices in the textile industry.
Scope
The scope of this study includes legal aspects affecting the textile industry in Bangladesh. It covers
a wide range of topics, including labor rights, employment practices, environmental regulations,
and industry-specific laws. The study focuses on key legislation such as the Labor Rights and
Employment Practices Act 2006 and the Environmental Conservation Act 1995, providing a
comprehensive analysis of their impact on the textile industry. However, it is important to note
that this research does not cover the entire legal landscape and may not address specific niches
within the industry.
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Limitations
Despite rigorous research methods, this study has certain limitations. The availability and
accessibility of data and information vary and can affect the depth of analysis in specific areas. In
addition, legal frameworks and industry practices must be continuously monitored and updated.
The findings and recommendations of this study should be considered in light of these limitations,
and further research is encouraged to explore specific areas of interest and emerging legal
developments in the textile industry in Bangladesh.
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Chapter 2
Industry Analysis
Business Model
Bangladesh's textile industry operates under a variety of business models. These models span
various stages of the value chain, such as raw material sourcing, manufacturing, distribution, and
retail. The industry mostly follows a vertical integration model, with companies engaging in
multiple activities from yarn production to finished garment manufacturing. This enables better
control over quality, cost efficiency, and on-time delivery. Other business models include contract
manufacturing, where companies specialize in specific manufacturing processes, and licensing
agreements, where international brands collaborate on production with local manufacturers.
Value Creation Process
The value creation process in the textile industry involves transforming raw materials into final
products that meet the needs of domestic and international markets. It includes various working
steps such as spinning, weaving, knitting, dyeing, printing, cutting, sewing, and finishing. The
industry emphasizes quality control, on-time production, and cost efficiency throughout the value
chain to meet customer requirements. Adding value also requires design and innovation to remain
competitive and adapt to changing market trends.
Marketing and Distribution
Marketing and sales strategies in the textile industry focus on reaching customers effectively and
efficiently. Companies use a combination of traditional and digital marketing channels to promote
their products. This includes participation in trade fairs, exhibitions, and fashion shows, as well as
online platforms, social media, and e-commerce. The distribution network consists of wholesalers,
retailers, and direct sales channels. The industry also adopts export-oriented strategies to enter
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international markets by leveraging trade agreements, market research, and customer
segmentation.
Target Market
The textile industry serves a wide range of target markets, both domestically and internationally.
Domestically, it caters to a growing middle class and a rising demand for affordable and
fashionable clothing. The industry also targets the international market, capitalizing on
Bangladesh's competitive advantage in terms of cost efficiency and labor-intensive production.
Our main export destinations include the United States, European Union countries, and other Asian
markets. The industry's target market is influenced by factors such as consumer preferences,
market trends the and regulatory requirements of specific regions.
Product and Pricing Strategies
The textile industry's product strategy is to offer a diverse range of products, including apparel,
home textiles, fabrics, and accessories. Companies focus on differentiating their products through
design, quality, and sustainability features. Pricing strategies consider factors such as production
costs, competition, market demand, and customer values. The industry strives to balance cost
competitiveness and maintain profitability and to adjust prices in line with market trends and
customer expectations.
Business Drivers Of the Textile Industry
Bangladesh's textile industry is driven by several factors that contribute to its growth and
competitiveness. These drivers include cost benefits from affordable labor, favorable government
policies, and incentives, access to raw materials, technological advances, infrastructure
development, and evolving consumer preferences. The industry's ability to adapt to changing
market dynamics, integrate sustainable practices, and embrace new technologies also plays a key
role in its overall performance and competitiveness in the global textile market.
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Chapter 3
Top Players of the Industry
Ha-Meem Group
Ha-Meem Group is a well-known vertically integrated garment wholesaler in Bangladesh. The
company operates multiple manufacturing facilities including spinning, knitting, dyeing, printing
and garment production. Focusing on quality and compliance, Ha-Meem Group has earned a
reputation for supplying a wide range of apparel products to domestic and international markets.
The company's sound supply chain management, ethical practices, and adherence to labor rights
contribute to its success in the industry.
Ananta Group
Ananta Group is a leading player in the textile industry in Bangladesh, specializing in
manufacturing and exporting garments. The group has state-of-the-art facilities with advanced
machinery and technology. Due to its commitment to sustainability, Ananta Group has introduced
environmentally friendly production processes and has obtained various certifications for its
environmental and social compliance efforts. The company's focus on innovation, design
capabilities and customer-centric approach has made it a trusted partner for global brands.
Plummy Fashions Ltd
Plummy Fashions Ltd is a long-established textile company in Bangladesh mainly engaged in
manufacturing knitwear. The company has a comprehensive production system including knitting,
dyeing, cutting, sewing and finishing units. Plummy Fashions Ltd has built a reputation for product
quality, competitive prices and timely delivery. We maintain close relationships with our domestic
and international customers to meet their specific requirements and ensure customer satisfaction.
Fakir Group
Fakir Group is a well-known textile group in Bangladesh, operating in various sectors such as
textiles, apparel and accessories. The group has a diverse portfolio of products and services ranging
from fabric production to finished garments. Fakir Group emphasizes sustainable and ethical
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practices and integrates the latest technologies for energy saving and waste management. The
company's customer-centric approach establishes long-term partnerships with well-known global
brands.
DBL Group
DBL Group is a leading textile and apparel manufacturer known for its vertical integration and
commitment to quality. The group has expertise in yarn production, fabric manufacturing, dyeing,
printing and garment production. DBL Group has implemented an efficient production system
with an emphasis on automation and advanced technology to ensure consistent quality and
productivity. Compliance with international standards and certifications makes the company a
reliable supplier in the global textile market.
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Chapter 4
Labor Rights and Employment Practices Act 2006
The Labor Rights and Employment Practices Act, of 2006 is a key law in Bangladesh protecting
the rights of workers in the textile industry. The law contains comprehensive provisions on various
aspects of workers' rights, ensuring fair treatment, safe working conditions,, and fair remuneration
for workers.
The law covers important areas such as employment contracts, working hours, holiday
entitlements, wages, workplace health and safety, social security, and dispute resolution
mechanisms. It aims to establish a legal framework for hiring, dismissal, and conditions of
employment, to prevent exploitation, and ensure a fair and harmonious working environment.
Under the law, employers are required to meet minimum wage requirements, provide decent
working conditions, and provide workers with benefits such as annual leave, sick leave, and
maternity leave. The law also addresses issues of discrimination, child labor, forced labor and
harassment, and provides for severe penalties for violators.
In addition, the law encourages the establishment of social funds and the formation of trade unions
for workers, gives workers the right to collective bargaining, and allows workers to have a voice
on issues affecting their rights and interests. I make sure that I am heard. In addition, Labor Courts
have been established to handle disputes that may arise between employers and employees.
The implementation and enforcement of the Labor and Employment Practices Act 2006 is essential
to ensuring the protection and welfare of workers in the textile industry. Governments play a key
role in cooperating with relevant authorities and regulators to monitor compliance, conduct
inspections and take necessary action against violations. The provisions of this law help promote
fair and sustainable working conditions in the textile industry, promote social responsibility, and
uphold human rights principles. By complying with these legal requirements, textile companies
can enhance their reputation, attract overseas buyers, and contribute to the development and
growth of the industry as a whole.
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Chapter 5
Environmental Conservation Act 1995
The Environmental Conservation Act, 1995 is an important law in Bangladesh aimed at protecting
and preserving the environment in the textile industry and other sectors. This law recognizes the
importance of sustainable practices and the need to minimize the environmental impact of
industrial activities.
The Environmental Conservation Act 1995 establishes a legal framework for environmental
management, pollution prevention and conservation measures. It sets out guidelines and standards
that industries, including textiles, must adhere to to ensure environmentally responsible operations.
Under this law, textile enterprises are required to obtain environmental permits and approvals
before starting industrial activities. Strict regulations on waste disposal, air pollution, water
pollution control and hazardous substances must be adhered to. The law emphasizes the
introduction of anti-pollution technology, waste reduction measures, proper treatment and disposal
of industrial wastewater and solid waste.
Additionally, the law promotes the implementation of sustainable practices in the textile industry,
such as using environmentally friendly materials, conserving energy and promoting renewable
energy sources. In addition, it promotes awareness and education on environmental issues, thereby
fostering a culture of environmental responsibility among industry players.
The Environmental Conservation Act 1995 established environmental courts and tribunals to deal
with cases relating to environmental crimes and violations. It sets penalties and sanctions for
violations. The aim is to prevent environmentally harmful practices and encourage businesses to
prioritize environmental protection.
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By complying with the Environmental Conservation Act 1995, textile companies can contribute
to the conservation of natural resources, the reduction of pollution and overall environmental
sustainability. Complying with this law not only protects the environment, but also enhances the
industry's reputation, makes it more competitive in the global marketplace, and attracts green
customers.
It is important for textile companies to stay up to date with the latest legislative changes and
supplementary regulations and guidelines from relevant environmental authorities. Regular
monitoring, self-assessments and environmental audits are essential to ensure legal compliance
and promote continuous improvement of environmental management practices in the textile
industry.
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CONCLUSION
In summary, the legal framework surrounding Bangladesh's textile industry plays an important
role in shaping its operations and practices. The industry is subject to a comprehensive set of laws
and regulations covering various aspects such as labor rights, environmental protection, health and
safety, and trade practices. These laws aim to protect the rights and welfare of workers, ensure
sustainable and responsible production, and promote fair trade practices.
The Labor Rights and Employment Practices Act 2006 provides guidelines on workers' rights,
working conditions, wages and dispute resolution mechanisms. Its aim is to create a fair and equal
working environment for employees in the textile industry. The Environmental Conservation Act
1995 focuses on minimizing the environmental impact of industry by regulating waste
management, pollution control and resource conservation. Encourage the adoption of sustainable
practices and promote environmental protection.
These regulatory frameworks, coupled with the efforts of the top players in the industry, have
contributed to significant growth in the textile sector in Bangladesh. The industry has made a
significant contribution to the national economy, with an emphasis on the garment business as its
main export sector.
However, there are still some challenges and areas that need further attention. This includes
improving worker safety and welfare, ensuring effective implementation and enforcement of labor
and environmental regulations, and addressing issues of fair trade and transparency in supply
chains.
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Cooperation between industry players, government authorities and international organizations is
essential to improve the legal framework of the textile industry. Continuous monitoring, regular
audits and development programs help improve regulatory compliance and promote sustainable
practices.
Overall, a strong legal framework combined with responsible business practices will create a
favorable environment for Bangladesh's textile industry and ensure its long-term growth,
competitiveness and sustainability.
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