Local start-ups are aiding the RMG industry move towards sustainability
By harnessing the power of innovation and sustainability, Bangladeshi startups are reshaping the textile industry landscape and setting a new standard for global competitiveness
At present, there is a surge of innovation and modernisation in Bangladesh's textile industry, led by the country's start-ups, with the aim of driving sustainability and economic efficiency in the sector. With the goal of retaining more financial resources domestically, these start-ups are trying to address the industry's overreliance on foreign technology and supplies.
Build Bangladesh and the H&M Foundation jointly organise the Needle Innovation Challenge (NIC), which has developed into a breeding ground for new ideas and has given rise to companies such as Plastile, foamTEX, ThreadBridge, Thrift Store, Rentify, Sui-Chorki, FemmeStitch, and Pina-TEX Wear.
Plastile aims to create useful RMG accessories out of plastic trash, possibly creating a new market for recycled materials. Pina-TEX Wear is working to lower Bangladesh's high import costs for cotton and cotton-based textiles by creating an affordable method of removing fibre from pineapple leaves as an alternative to imported cotton.
A new company called Green Dye seeks to replace synthetic and chemical-based dyes by using microorganisms to produce an organic cloth colour. Bangladesh now imports more than 178 million USD of synthetic dye annually, while organic or natural dye would be more cost-effective.
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By upcycling textile waste, another firm called DenimRevive hopes to support the fashion industry's commitment to sustainability and waste reduction. The creative business concept of DenimRevive centres on repurposing locally produced denim trash to create a range of upcycled goods, including clothes, accessories, and handicrafts. They promote sustainable fashion, which has a global market potential of 6.89 billion USD.
Ackermans, a different startup, aims to transform our perception of clothing accessories. The use of sugarcane bagasse to make biodegradable buttons and tags for the RMG industry is the fundamental invention of Ackermans.
An ed-tech company called Shimmy Technologies is training RMG employees for an automated future. By using gamification to teach and upskill manufacturing workers, they make sure that the labour force can continue to support jobs in the era of automation. They put special emphasis on upskilling female employees, who are frequently left behind in the transition to more technologically sophisticated industrial techniques.
Some of these companies convert plastic waste into useful accessories for RMG or ready-made garments. At the same time, others are using microbes to produce organic dyes that come along with self-healing and biodegradable packaging.
Others have gone as far as reimagining the tailor experience with a Common Facility Centre for women from far-flung areas and calling on sustainable fashion through clothing rental platforms and thrift store ideas.
As environmental issues become increasingly pressing and sustainability becomes a buzzword all over the world, the Bangladeshi garment industry faces a defining moment when it is required to choose between sustainable principles and rapid growth.
The pursuit of sustainability reflects a significant paradigm shift in Bangladesh's RMG sector. Leading the change are projects such as the Partnership for Cleaner Textile and the Circular Economy in Bangladesh's Apparel Industry project.
For example, PaCT alone guided more than 200 factories on a sustainable path, helping them save enormous sums in water, energy, and chemicals while ensuring the industry's products are environmentally friendly.
Located half a world away from Europe, Bangladesh is nevertheless its third-largest supplier of clothes and textiles. Hence, becoming more sustainable not only solves powerful environmental issues but also allows European firms to work with countries conforming to the EU's standards.
The Challenge of imports and financial leakage
Bangladesh's reliance on imports makes it helpless against variances in worldwide costs. Any expansion in the cost of unrefined substances, like cotton or engineered strands, can fundamentally affect creation costs and dissolve net revenues for makers. Bangladesh's importing items include cotton, synthetic fibres, and dyes, the bulk of which are sourced from countries like China and India.
In importing materials, Bangladesh faces economic vulnerabilities, supply chain risks, and strategic mitigations. Bringing in tremendous amounts of unrefined components like cotton, manufactured strands, and colours requires significant amounts of USD. This reliance can drain trade savings, particularly during worldwide market volatility, influencing the country's capacity to import other fundamental merchandise.
Reliance on a couple of nations for basic sources makes Bangladesh vulnerable to international strains and exchange fluctuations. For example, any disturbance in exchange with China or India can prompt quick deficiencies and cost climbs. The financial implications of this reliance are staggering, with Bangladesh spending a little over $3 billion to import just cotton annually.
Additionally, Bangladesh also imports synthetic fibres and the dyes used to colour them, which also account for several hundred million more in annual import bills.
According to Index Mundi, Bangladesh's need for massive cotton to support the RMG, means that it imports over 7 million bales of cotton at a great import cost. High cotton prices or a restriction on import-export regulations can change the cost structure and profitability of Bangladesh RMG producers overnight.
Balancing profit and environment
Against this background, the twin imperatives of economic dynamism and sustainability may be effective for the textile industry in Bangladesh. The adoption of concepts from the circular economy, much less import reliance, and moving towards sustainable manufacturing point to marked change towards the future, which will be more self-reliant and sensitive to the environment.
Creative startups have a critical role to play in promoting this change. They are breaking new ground in recycling, upcycling, and creating sustainable materials that reconcile environmental responsibility with commercial viability. By harnessing the power of innovation and sustainability, Bangladeshi startups are reshaping the textile industry landscape and setting a new standard for global competitiveness.
These programs not only help reduce the industry's dependency on imports but also steer it towards efficiency and sustainability. Bangladesh's RMG sector is now transforming into an exemplary example of how environmental management and economic prosperity can go hand in hand.
As Bangladesh continues to navigate the complexities of global trade and environmental sustainability, the role of these startups becomes increasingly crucial.
Reshad Rahman Bhuiyan is an entrepreneur and a student currently studying in North South University, majoring in HRM and Marketing.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard
