1.1 Problem Identification
The export-oriented readymade garments segment of the Textile & Clothing industry in Bangladesh enjoyed a gigantic growth rate in terms of foreign trade for last one and half decade. Bangladesh economy is highly dependent on the export of ready-made garments. Currently more than 6000 RMG units are operating in the country. But the concern for the T&C industry is that about 70% of the fabric requirement is fulfilled by imports. Hardly will you find apparels manufacturers who have their own capacity of producing fabrics. Large-scale producers of fabrics are as well very few in numbers. It is a severe problem for the industry so that after 2004 the global T&C market has been absolutely opened. Quota provisions for LDCs has void. Reasonably the world market will become extremely competitive and low-cost producers will be succeeded. Bangladeshi apparels producers will possibly lose lots of suppliers as because in the quota-free world they would find manufacturing RMG more profitable. So it is a high time for the T&C industry.
BEXTEX Limited, the leading textile company in the country is very much willing to take the challenge of global competition. BTL promotes its products directly to the foreign importer of RMG. The company perceives the RMG manufacturing units just as channels to reach the customers. But, it is also valid that BTL has got interests in the well-running of the RMG wing of the Bangladesh industry.
All these issues strongly recommend that before confronting the intense global competition, the company must justifies the performance of the entire industry, what is the picture of the financial performance of the company, its capability and strength, current position, and what
