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Pre-Feasibility Study of a Proposed “Knitwear Village”, Bangladesh

Project: Pre-Feasibility Study of a Proposed “Knitwear Village”, Bangladesh
Completion Date: 2010
Client: Bangladesh Investment Climate Fund (BICF)
Services Provided: Site analysis, Industry sector analysis, Market demand analysis, Site layout and costings, Financial & Economic analysis

Project Description

The knitwear industry in Bangladesh is a major export sector which has experienced significant growth in the last decade (over 20% annually) to more than 100 countries. There are over 1,500 companies involved in the export of knitwear. Many of the factories are dispersed without adequate effluent treatment plants resulting in discharge of toxic waste into water courses. In many cases for knitting, dyeing and printing the scattering of factories leads to a lack of clustering benefits and increased costs as well as degradation of the environment. The establishment of a Knit Village would solve many of these production problems. Companies could take advantage to the economies of scale associated with a single effluent treatment plant and the other benefits associated with clustering.

The study involved:

  • An understanding of the knitwear manufacturers and exporters associations visions of the project and location preferences;
  • Comparative analysis of a number of sites;
  • An industry sector market demand forecasts including demand for utilities (electricity and water);
  • An institution analysis of how best to organise and manage the zone;
  • A brief examination of the social and environmental consequences of the development;
  • An analysis of the financial and economic impact of the development.

 

 

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