Assessing the Feasibility of Establishing Apparel Production Facilities in Bangladesh

The Opportunity

On behalf of a leading Hong Kong-based global intimate apparels group, LightCastle Partners conducted a project titled, “Location Analysis for Intimate Apparel Production in Bangladesh”. As a garment manufacturer who presently sources apparel from Bangladesh through buying houses, they wanted to set up a wholly-owned facility in Bangladesh, as part of their global expansion. LightCastle was assigned to provide guidance by charting the way forward and providing a shortlist of potential sites through performing a feasibility study and market research.

Approach

LightCastle Partners conducted a technical feasibility study on Bangladesh vis-a-vis other potential investment destinations by preparing an overview of the apparel manufacturing landscape in Bangladesh, and of the government incentives available for setting up in the country. The study utilized unstructured Interviews and expert consultations to collect data.

The team developed a long-list of potential locations in private lands and industrial parks from government sources and industry experts. Then, using a customized weighted scoring using a combination of various labour, logistics, industrial, social and political indicators, a short-list of selected sites was derived. Furthermore, preliminary estimates of staffing needs, sample factory layout, possible investment outlay, and potential timeline for activities needed to set up the fully-owned subsidiary in Bangladesh was also provided.

Future

The study is expected to assist the client in finalizing the location of their next global operations.