Starting its journey as a house of ready made garments, Epyllion Group is engaged in manufacturing and exporting of knit apparels since 1994 and is considered as one of the biggest conglomerates in Bangladesh with substantial establishment of its backward linkage of all kinds of knit garments, textile, wet processing and garments accessories. Reazuddin Al Mamoon, Chairman of Epyllion Group, spoke to Fibre2Fashion about the reasons the RMG sector is considered to be the backbone of the Bangladesh textile industry, and the biggest effects the Covid pandemic has had on the country's garment industry.
Bangladesh is today one of the world's largest garment exporters, with the RMG sector accounting for 84 per cent of Bangladesh's exports. What factors have contributed to this fact?
Efficient workforce.
Manufacturing cost is comparatively competitive.
Backward Linkage.
Practice on R&D.
Earned credibility.
What are the various businesses under the Epyllion umbrella and what revenue can the textile related businesses claim of?
The various business areas under the Epyllion umbrella are:
Fabric Manufacturing
Garments Manufacturing
Garments Accessory
Wet Processing
Testing Laboratory
Retail Business
Food & Beverage
Apparel business claims 90 per cent of the revenue.
What is the retail presence of your brand Sailor in Bangladesh? Which all cities does it cover?
Sailor has a strong market presence, and it has been possible in 6 years only. Its signature design and uniqueness have put it among the top listed brands in the country. 20 outlets of Sailor cover the major cities of Bangladesh including all the divisions.
At a time when Vietnam is not far behind and may have also overtaken Bangladesh last year, what steps is Bangladesh taking to manage risk from competing nations and adapt to changing demand patterns in the global fashion market?
Competition will be always there, and it is a driving force behind our growth. We are constantly coming up with:
New ideas and innovation through R&D (both in product and process).
Adopting technological integration in management and manufacturing process.
Setting up Design Studio; able to offer styles.
Grow capability to deliver product in shorter lead-time.
What have been the greatest effects of the Covid pandemic on the Bangladesh garment industry apart from closure of factories and retrenchment of workers? What challenges were seen in sourcing of raw materials, order fulfillment, inventories etc?
During the pandemic, sales dropped significantly which had a negative effect on cash flow and as a result, financial discipline was interfered.
Piled up inventory caused higher 'Cost of Inventory' during the pandemic though it was gradually released.
Since demand increased in the world market right after the first wave of Covid; we struggled to ensure supply against that demand.
Consequently, we had to refuse surplus orders which moved to the competing countries.
Raw materials price have increased; but faced difficulties to negotiate it with buyers as they were unwilling to increase selling price keeping the profit level as before.
What is the role of Epyllion Foundation? What are the welfare activities it has undertaken through the years?
Epyllion foundation defines all the CSR activities of the company. These activities are guided by 17 sustainable development goals, ISO 26000 and ISO 45001.
The CSR activities include - educational scholarship, youth skills development and healthy growth of children and adolescent, promoting sports at all levels and in remote areas, humanitarian support during disaster (both natural and manmade), regular food supply to the underprivileged, distribution of winter cloths, community health and sanitation support, humanitarian support to the Rohingya and support to all the movements to protect environment.
Which are the major markets that you export to and which brands and retailers does this include?
Approximately 80 per cent of our export includes renowned European brands.
How has been the recovery of the garment industry since last year? Has it bounced back to its pre-Covid levels yet?
In the post-Covid situation, a number of small factories have shut down. It will be very difficult for them to bounce back in coming years. For the rest, manufacturing sites are well managed and prepared for operation and orders are also being regular since demand is there. So the whole industry is bouncing back to pre-Covid level. Only challenge remaining is higher raw material price, and its consequences in costing.
Where is Epyllion placed as a company today in Bangladesh and the global arena? What are your strengths?
Epyllion is considered as a benchmark within the industry. To earn this status, we practice institutional approach, putting sustainability ahead of agenda and thus creating employer branding locally and internationally.
We believe that we are at the top of our buyer's choice because of our business ethics and performance. Epyllion is listed in sustainable supplier category by the buyers.
Strengths are:
High morale and business ethics.
Sustainability driven approach.
People.
Data driven decision making.
Adopting Technology.
Shorter lead-time support.
Ahead in practicing R&D.
Which products do you export and what is export share of each?
Knitted tee shirt - 40 per cent, polo shirt- 20 per cent, sweatshirt - 30 per cent, and bottoms - 10 per cent.
How sustainable are your manufacturing units? What steps have you taken across the value chain to ensure a smaller carbon footprint?
Sustainability of manufacturing units is bound by social and environmental compliance and guided by ethical business practices. Epyllion Group has a dedicated compliance team in every unit for ensuring different indicators of sustainability. Regular external and internal audit are conducted for assurance as well.
Steps to curve carbon footprint includes establishment of LEED certified green factory, enrollment to carbon neutralised programme, carbon offsetting programmes, establishment of Effluent Treatment Plant, reduction of energy and resource consumption, reuse of rainwater, recycling of waste and safe disposal of industrial waste.
What are your future plans?
Business Expansion
Create more employment opportunity
System driven and technology sophisticated company
Fully sustainable global standard business entity
Published on: 25/05/2021
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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