Some RMG factories keep operating at full capacity on weekend to clear backlogs, recoup losses

Some readymade garments (RMG) factories in Bangladesh continued their operations at full capacity even on Friday (26 July) to clear backlogs and recover from production losses caused due to a five-day closure during the nationwide unrest centring the quota reform movement.

Large groups like AL Muslim Group, Sharmin Group, Sparrow Group, and Windy Apparels have been running their production at full capacity since the morning, officials told The Business Standard.

Buying houses and liaison offices of international brands are also working to clear the backlogs. Some of them attended their offices while others were working from home.

The exporters also feared a 20% loss in orders for next summer season as internet blackouts affect buyers' confidence.

Talking to TBS, Windy Group Managing Director Mesbah Uddin Khan said they produce 1.5 lakh to 2 lakh woven appeals daily, depending on the style.

To recover the production loss, they are running their production up to 10-13 hours daily. Before the factory closure, they ran production up to 8-10 hours a day.

He said they will continue full-capacity sewing even on Friday to deliver the goods to the buyers within the business season. 

"We have to follow such busy schedules for another 3 to 4 weeks to clear backlogs," said Mesbah Uddin Khan, also a director at BGMEA.

The group has about $200 million in exports annually from its nine production units, including a washing plant. It has employed around 15,000 people, he added.

Sparrow Group Managing Director Shovon Islam said one of his US buyers is asking him to send goods through air freight. 

"They will pay for it. But in response, they also sought a 15% discount on these products," he added. 

Shovon further explained that this buyer has orders for 1.80 lakh pieces of multiple types of woven apparel, and their shipment deadline is 29 July.

"We will be able to produce up to 85,000 pieces within the given time," he said, adding that they requested a one-week extension, but the buyer is not allowing the extension. 

Thus, the buyer offered Sparrow Group to pay for the air freight charges at a discount of 15%.

However, another leading US buyer gave them a one-week extension for all goods. 

"They have orders for 1 lakh pieces of bottom-wear and lingerie with the same deadline," he added.

"The group's 15,400 workers are working overtime at their five production facilities to meet the buyers' lead time," Shovon added.

He said their buyers would generally not allow workers to work over 60 hours a week.

However, Shovon said the situation is very different now, and that they have to go beyond the limits and continue production even on Friday, usually the weekend.

Last year, the group produced goods worth $275 million, and 85 plans to reach the $300 million export mark this year, said Shovon Islam, also a director at BGMEA.

The group owned a joint venture factory in Jordan, with an annual export of around $110 million and employed 2600 people. 

"Of them, about 2200 are Bangladeshi," he added.

Earlier on Tuesday, the wheels of garment factories started rolling after five days of complete shutdown and production loss. 

Around 1,000 factories, 50% of which in the Chattogram zone, resumed operations on the day, according to industry insiders.

On Monday, a group of BGMEA and BKMEA leaders met with Home Minister Asaduzzaman Khan Kamal at his residence, seeking security assurance for factories.

Emerging from the meeting with the home minister, BGMEA President SM Mannan Kochi said security issues were the main agenda in the meeting.

"All RMG factories will resume operations on Wednesday. The minister assured us of a safe environment amid the curfew and workers ID cards will be considered as curfew pass," he added.