The small and medium enterprises (SMEs) in Pabna are thriving on the use of ready-made garment waste in apparel making, business insiders have said.
The demand for these apparels made of garment waste is increasing gradually in export destinations.
The entrepreneurs are exporting their products to neighbouring India and Bhutan on a regular basis, the business insiders have said.
Some of the entrepreneurs are now exporting their products to new destinations like Malaysia and the United Arab Emirates.
Arifur Rahman, one of such successful entrepreneurs, is exporting his apparel items to Malaysia.
"I have been exporting garments from my small factory to Malaysia for the last three years," he said last week.
"Even I cannot take all the orders from my party due to my limited capacity and investment," he told the FE.
He also said he now exports goods worth Tk 0.6 million (6.0 lakh) per month on an average to Malaysia.
"I sell my products via a middleman. But I can make more profit, if I myself can export the products directly."
The 32-year-old businessman said he has been running his own business for eight years, after working in other factories for several years.
Arif now runs his business from a small factory on the third floor of the Pabna A R Corner shopping complex.
The complex now houses more than 300 of such business units including mini factories and display centres.
It has become a major hub of this business.
In addition, more than a thousand of such factories are operating across the district.
Hundreds of entrepreneurs of these factories are not only achieving success for themselves but also creating jobs for others.
The hosiery business of Pabna has a long tradition. It spans over 105 years.
The use of garment waste in apparel making has added a new dimension to the business.
It got going in the district two decades ago.
Pabna Hosiery Manufacturers Group President Md Monir Hossain (Popy) told the FE that the new business created jobs for more than 25,000 people across the district.
They include 3,000 to 4,000 women, he also said.
"This business in Pabna is accounting for transactions worth Tk 20-25 million per week," he disclosed.
He also said thousands of households across the district have now turned into tiny readymade garment (RMG) factories.
They collect orders and raw materials from entrepreneurs who are locally known as 'mohajon.'
The fabrics for such factories are collected mostly from Gazipur, Dhaka and Pabna.
They cost Tk 100-140 per kg, depending on the variety and quality.
At present, the traders are making various types of T-shirts.
These products are in high demand in different states of neighbouring India because of their quality and cheap rates.
The traders export items worth Tk 380 million a year to India.
A good volume of the products are also exported to Bhutan and Nepal.
Despite great potential, many entrepreneurs were failing to expand their business in the district due to fund shortages, said Monir Hossain.
The Small and Medium Enterprise Foundation (SMEF) is closely working with them to address the issue.
Under SMEF's supervision, Southeast Bank Limited's Pabna Branch has undertaken a scheme to lend Tk 50 million (5.0 crore) to 150 entrepreneurs in one year since September 2017. The interest rate is 9.0 per cent.
"Unfortunately, 20 entrepreneurs received only Tk 10 million so far," Monir said.
He also said many entrepreneurs can expand their business and create more jobs, if they are provided with low-cost finance.
"Most of the businesses are not capable of getting loans from banks, mainly due to lacking the required papers," he added.
They are also unable to show any collateral against the loans, he said.
The SMEF is organising training programmes regularly on business management, leadership, accounting and product diversification to promote it.
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