Feasibility Study On An Export Oriented Knit Wear Garments

Abstract

The country exports its apparel products worth nearly 4 billion US$ per year to the USA, EU, Canada and other countries of the world. At present the country is the 6th largest apparel supplier to the USA and EU countries.The major products are Knit and Woven Shirts and Blouses, Trousers, Skirts, Shorts, Jackets, Sweaters,Sportswear and many more casual and fashion apparels. The Government of Rangladesh offers great inccntives for cncouragi ng the use of local fabrics in the export oriented garment industries. For encouraging textile export, the import of capital machinery is duty-free. Import of cotton is also duty free. Moreover, the Government has recently implemented several policy reforms to create a more open and competitive climate for foreign investment. The project envisages setting up of an export oriented Knitting, Dyeing and Finishing unit and setting up of an export oriented garments section at Narayanganj. Main machinery for the project has been proposed to be imported from ftaly, Germany, and Japan. The project is expected to go into commercial operation within 9 (nine) months from the date of opening of LlC for imported machinery. Total Fixed cost of the Knitting Dyeing & Finishing unit & Garments unit has been estimated at Tk.204403 Lac. The project is considered technically feasible, socially desirable, financially rewarding, commercially profitable, economically viable and highly suitable for banking financing.