Under the dynamic leadership of Mahmud Hasan Khan (Babu), Managing Director of Rising Group, the company exemplifies how vision and strategic decision-making can drive sustainable success. Rising Group has forged a unique path in Bangladesh's textile and apparel sector, emphasizing value retention over mere volume growth. In a recent conversation with Textile Today, Mahmud Hasan Khan shared insights into the group's journey, strategies, and industry perspectives.

The Journey of Rising Group

Mahmud Hasan Khan (Babu): Rising Group’s story unfolds in two distinct phases. Our journey began in 1994 with Popular Packages & Accessories Ltd., a carton manufacturing unit. In 1997, we expanded into garment manufacturing by establishing Rising Fashions Ltd. Despite various challenges, our resilience and innovation have propelled us forward. Today, we operate 14 factories, including six ready-made garments (RMG) units and a vertically integrated textile setup that spans the entire fabric manufacturing process, supported by in-house trims production.

Currently, our operations employ around 14,000 individuals, with an annual turnover ranging between $175 and $190 million. Of this, RMG exports contribute approximately $140 million. As our name suggests, Rising Group is committed to continuous growth and progress.

Strategic focus on retention

Rising Group’s growth strategy emphasizes sustainable retention. Instead of increasing turnover from $200 million to $300 million with minimal retention gains, we prioritize stabilizing at $200 million while maximizing retention to $50 million. This approach underscores our commitment to value addition and long-term sustainability.

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Commitment to timely payments

Ensuring financial stability is a core policy. Regardless of growth or external challenges, we prioritize timely payments for workers and other stakeholders. This discipline fosters trust and smooth operations, reinforcing our reputation as a responsible employer.

Challenges in 2024 and hopes for 2025

Mahmud Hasan Khan (Babu): 2024 was uncertain and challenging. Anticipating disruptions during Bangladesh’s election period, we prepared for a difficult environment. The political instability and a US dollar crisis, inflation, and rising interest rates created a tough operating climate. Events in July and August further exacerbated the situation, deterring investment plans.

Despite these challenges, there are reasons for optimism in 2025. Global inflation is declining, and the Federal Reserve’s reduced interest rates are positive indicators. Bangladesh’s improved foreign currency reserves, bolstered by increased remittances and accurate export data, along with reduced corruption, signal a brighter outlook.

Addressing wage increments and business sustainability

Mahmud Hasan Khan (Babu): While wage increments are necessary to address inflation’s impact on workers, they must be balanced against industry sustainability. Historically, annual wage hikes averaged 5%, adjusted to factory efficiency and capacity. However, the current global market’s competitive nature, rising costs, and lack of incentives exacerbate challenges for smaller factories.

To navigate these challenges, factories must focus on efficiency, innovation, and competitive pricing. Strengthening negotiating capacity and marketing skills is crucial, as buyers are unlikely to increase prices without justification. Success ultimately rests on individual entrepreneurs’ strategic efforts rather than reliance on associations or government support.

An effective exit policy is essential to address struggling businesses. Entrepreneurs do not willingly close factories; challenges often force their hand. The government must implement policies that support industry stability and ensure law and order to facilitate business continuity.

LDC graduation and industry preparedness

Mahmud Hasan Khan (Babu): LDC graduation is a significant milestone, but its timing and management are critical. Given the current economic challenges—high inflation, a struggling banking sector, and global uncertainty—Bangladesh should consider delaying the transition by at least three years.

Signing Free Trade Agreements (FTAs) with key nations is imperative to secure market access. In terms of the RMG perspective, signing FTAs with Brazil and Russia is important. Then we will not be harmed instead we will be benefitted. Also, the present duty-free benefits we are enjoying in countries like Japan, UK, etc. should be continued.

 Diversifying beyond textiles and RMG is equally important for economic resilience. Consistent and transparent policymaking is essential to attract foreign investment and foster growth.

Upcoming BGMEA election

Mahmud Hasan Khan (Babu): Ensuring a transparent and accurate voter list is fundamental for a fair election. Past inaccuracies, such as including deceased individuals or ineligible voters, must be addressed. Leadership accountability and integrity are crucial for driving the sector forward. Our vision is to ensure the new leadership prioritizes industry betterment and effectively tackles pressing challenges.