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The secret behind success of Fashion Power Group

Fashion Power Group is a diversified agglomerate which has vertically integrated apparel and textile manufacturing facilities, with concerns in Printing, Embroidery etc. Fashion Power Group started its journey in 2003 and till date, it has resulted in a conglomerate of 08 concerns comprising forward and backward linkage factories — among them, Fashion Power Bangladesh Ltd. is our parent company and the export-oriented garments industries Fabrica Knit Composite Ltd. (Vertical Setup of Knit Composite), FNF Trend Fashion Ltd. (Woven Project), Taharat Composite Ltd. (Knit Composite), Tazkia Composite Ltd. (Combined with Knit and Woven), FSD Printing & Packaging Ltd., Far-Sur Young Fashion Ltd.  and Esotiq Lifestyle Ltd. Besides, to make one-stop service, introduce packaging and printing factory named Tahmid and Twalha Accessories & Printing Ltd. and Anik Poly & Packaging Industries Ltd.

Mizanur Rahman
Figure 1: Mijanur Rahman, Managing Director & CEO, Fashion Power Group.

Throughout its journey, Mijanur Rahman, Managing Director & CEO, Fashion Power Group and Director, BGMEA has a phoenix-like fairy tale transformation in his life. Starting his career as an employee at a garment factory – he has transformed himself into a successful garment entrepreneur.

Back in 1998, young Mr. Mijanur Rahman came to Dhaka in hunt of a better life. Through the course of time – the thousands of apparel workers and the trade’s vibrant nature enthralled and drew him in this business.

Under the versatile leadership of Mr. Mijanur Rahman, Fashion Power Group has been able to create a dynamic and vibrant working environment with people having national and international exposure.

Recently in a conversation Mr. Mijanur Rahman shared his journey, pathways and views on Bangladesh’s overall apparel sector with Textile Today.

Journey of Fashion Power Group

Mijanur Rahman: Fashion Power Group is a diversified agglomerate that has vertically integrated apparel and textile manufacturing facilities, with concerns in Printing, Embroidery, etc. FPG started its venture in 2003 and within a short span of time it has curved out its niche in the industry.

To ensure its all-out diversified support, Fashion Power Group integrated one-stop service stations in all of its projects. In addition, FPG is robustly upholding the compliance standard along with fire safety and CSR activities as well as the client CoC.

Fashion Power Group supplies top-notch quality apparel to globally prominent brands and retailers and is intensive on safeguarding the reputation of Bangladesh’s readymade garments (RMG) and textiles industry.

However, the success of Fashion Power Group didn’t come all on a sudden. From its initial days, the FPG made very clear strategies on how it aims to have impacts to the country and the world.

Mijanur Rahman sharing FPG’s success with Amzad Hossaind Monir, Head of Business Development, Textile Today
Figure 2: Mijanur Rahman sharing FPG’s success with Amzad Hossaind Monir, Head of Business Development, Textile Today.

Having said that, behind the Fashion Power Group’s success, there are a lot of contributions – which has enabled us to come this far. But most essentially, I will highlight that I have been very honest throughout my whole career. I have never deceived any of my customers/suppliers knowingly in my 25 years of my career & journey. And I think this the most essential recipe for my success, as when you keep your customers/suppliers happy – they also provided me with top-notch products. The relationship between me and my customers helped each other in thriving. Countless times it happened that I helped my suppliers when they were in tough times, similarly, they also pulled me up in my dire times.

Side by side, as a businessman, my only dream was to move forward in a balanced manner – following the moral of honesty. Because, I will only thrive if this apparel industry, my suppliers, customers and workers survive. This is my motto throughout my 20 years of readymade garment (RMG) entrepreneurship career. Thus, Fashion Power Group reached its pivotal success.

Transparency and long-term relationship are the core value of Fashion Power Group. And to accomplish our vision by practicing corporate governance, being transparent in our operation, nonstop perfections of qualities and work process through state-of-the-art R&D, developing expertise, sharing and needs, consistency of commitment, caring the social ethics and environmental parameters with maintaining networks with the relevant area.

Having said that, at present, Fashion Power Group has altogether 8 concerns with a 12500 workforce – with annual earnings around $160 to $170 million.

Fashion Power Group is a fully integrated vertical company – knitting, dyeing, all-over printing, cutting, screen printing, sewing, washing, finishing, packaging and logistics. Today, Fashion Power Group is a vertically integrated manufacturer and exporter of garments for men, women – meaning, this group has consolidated all stages of production starting from knitting, dyeing, finishing to cutting, sewing and packing under one roof. And we source 90% from in-house and the rest of the 10% i.e., sweaters and shirts, we source outside.

In terms of capacities, FPG produces 3 million Pcs of apparel monthly. While its monthly Knitting production capacity stood around 1,50,000 Kgs, dyeing 6,00,000 Kg, and 6,00,000 Kg of finishing capacity.

Progress of Bangladesh’s textile & apparel industry

Mijanur Rahman: Our textile and apparel industry has transformed into one of the most eco-friendly and compliant globally. Despite this leading position, it is demoralizing that brands and retailers are not offering us ethical prices. Whereas, other Asian manufacturing giant countries have grabbed the higher end of apparel with more market share. Though their green foothold is not as strong as ours.

The paramount reason is that over the years Bangladesh has grown into the apparel forward business giant – while we lack in the backward linkage. A good portion of our raw materials, finished goods are imported – meaning despite investing millions of dollars – we will not be able to grab the opportunity as our margin is eaten away by a huge amount of import. And we suffer to make our businesses making more profitable.

It is high time to focus on the textile backward linkage industry. This import-based mentality is also creating a lot of challenges for us. For instance, importing from China usually takes a couple of weeks and in this era of industry 4.0 and fast fashion – this delay is rendering us obsolete. The faster we can make the import-export process the quicker the money circulation process will be. Like at present, we are working on 120 days lead time – making 3 consignments annually and instead, if we can deliver in 45 to 50 days like in China and Vietnam – then it will make more money circulation and export earnings. To be able to do that, we need more and more backward linkage investment to achieve in-house capability.

Mijanur Rahman closely observing FPG’s operations.
Figure 3: Mijanur Rahman closely observing FPG’s operations.

Having said that, developing capacity on man-made fiber (MMF) will give us a price advantage along with product diversification.

In addition, I will also say that ease of doing business needs to be more polished to smoothen our operation. Yes, the country has progressed a lot in recent years but there are some glitches in customs, bonds, etc.

Overall, for holistic growth, we need support from the govt., all the stakeholders and the entrepreneurs. Only then we will be able to reap the benefit fully.

Best strategy for non-traditional markets

Mijanur Rahman: I think that we have a massive opportunity in non-traditional markets. The overall non-traditional market growth was 10.55% in July-October FY2022-23. Most importantly to grow more, we have to focus on country and product branding. For instance, we recently successfully concluded the weeklong ‘Made in Bangladesh’ week.

Having said that, we need to do extensive branding in different promising markets South America, Africa, Australia, the Middle East and other markets – regarding our apparel product capabilities. Just like our competitor countries, we have to organize regular fairs through country-related trade bodies, embassies and other related bodies to engage the market buyers.

For instance, the Middle East is a very near market for us and it has immense potential for us. Not only that, apparel is re-exported to African countries from hubs like Dubai and Saudi Arabia. So, these markets hold enormous potentials.aq

BGMEA’s approach to explore new market

Mijanur Rahman: BGMEA and the colleague of us have been exploring all the promising markets. As the leading trade body, BGMEA has been playing an active role, I must say.

We are working, visiting various potential markets, and their embassies to open up these markets for us.

We are also working closely with the government and other related agencies to solve issues. Hopefully, we will see the benefits of these valuable efforts for Bangladesh’s textile and apparel industry.

Global economic slowdown

Mijanur Rahman: At the moment, due to the unstable global scenario western countries are suffering a lot due to the energy crisis. As a result, we have witnessed some crises. But right now, the govt. has given their utmost effort to solve the situation. And things are under control right now – thanks to the govt. for solving the issue at the earliest time.

Capacity expansion & order plan

Mijanur Rahman: I will say the RMG industry needs to be careful about capacity expansion. As unplanned capacity expansion has created a lot of challenges for us. Some of us are taking orders by undercutting. These practices give the buyers unethical influence over us.

Like I said earlier, instead of forwarding capacity increase – we have to focus on backward linkage capability – high-end fabric development, R&D, design house, chemicals, etc. overall, we have to develop value-added apparel item manufacturing skills. Because we have to keep in mind that a buyer will not increase a couple of million pieces of basic knit products overnight. Even though retailers and brands sometimes push us for capacity expansion – but we will have to keep in mind that they will move the order to a cheaper alternative or defer payment if the market witnesses any trouble.

As manufacturers, we have to make our moves in a calculative way. Only then we will be able to avoid such situations.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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