A team of Bangladesh’s RMG manufacturers will leave Dhaka today for India’s westernmost state of Gujarat to see the prospect of setting up a warehouse for grabbing the local market there.
During the visit, a five-member delegation, led by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Matlub Ahmad, will try to know about the possible challenges and prospects of setting up a warehouse and distribution center there.
Among others, the delegation includes BGMEA Vice President Shahidullah Azim.
During a meeting with Indian Prime Minister Narendra Modi’s visit on June 7, the BGMEA President informally sought a 50-acre land in India for a warehouse and a distribution centre.
In response, PM Modi gave an assurance of considering the proposal and invited a business delegation to visit India.
“We’re going to visit India to discuss the business plan and see the location of the proposed site to get first-hand experience,” BGMEA Vice President Shahidullah Azim told the Dhaka Tribune yesterday.
Azim said: “We’ll hold several meetings with the authorities concerned to know more about the Foreign Direct Investment Policy of India, the legal aspects for securing proposed land and its cost, availability of power and energy connection and cost, workers’ wage structures and labour rights situation.”
“We will also try to gather information about Indian custom duty, income tax, municipals taxes,” said Azim.
With the first hand experience after the visit, a feasibility report on the business proposal will be finalized for further action.
Azim also stated that if the findings found positive prospects in India, a company would be formed comprising the garment and the textile sector people for exporting products to India, as BGMEA or BKMEA cannot run any business.
On June 14, the BGMEA submitted a formal proposal to the Indian High Commissioner in Dhaka Pankaj Saran to convey the message to the Indian authorities concerned.
According to the proposal, the land will be procured in the name of the company to be formed by BGMEA, BKMEA and others.
The trade bodies will make an investment of approximately US$25m to set up the warehouse and distribution centre.
The apparel makers will open 1,000 retail stores in different Indian cities to display and sell out their products to earn a sum of $1b in the next few years, reads the BGMEA proposal.
