Business
All BGMEA factories clear wages for March before Eid: BGMEA
All 2,151 factories running under the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) have cleared their wages for the month of March 2023.
Among them, festival bonuses were paid in 2145 factories (99.72%), according to data shared by the BGMEA.
The remaining six factories were to complete bonus payments by today.
Meanwhile, 1768 factories (82.19%) paid advance salaries for the month of April.
BGMEA President Faruque Hassan has expressed gratitude to all the entrepreneurs of the garment industry for their efforts to ensure a happy Eid-ul-Fitr by making payments to workers despite having various difficulties.
The BGMEA said it brought around 450 garment factories, which might face difficulties in paying their workers, under close monitoring and assisted them in solving their problems.
Regarding Eid holidays, BGMEA said garment owners have started giving leave to their workers on the occasion of Eid in phases, which started on April 16 and continued till April 20 at the request of the government and the trade body.
Faruque Hassan thanked the governor of Bangladesh Bank and the managing directors of the scheduled banks for keeping banks open during holidays and facilitating salary-bonus payments in the RMG factories.
He also called upon the government to step up vigilance to ensure that buses, trains, and launches do not carry passengers beyond their capacity and requested the government to ensure that passengers are not transported in trucks to avoid untoward accidents during the Eid journey.
He also extended thanks and gratitude to the Minister of Road Transport and Bridges, the Commerce Ministry, the Home Minister, the Shipping Minister, the State Minister for Labour and Employment, the Department of Inspection for Factories and Establishments, the law enforcement agencies, the intelligence agencies, labour leaders, and journalists for their cooperation in ensuring that garment workers can happily celebrate Eid-ul-Fitr with their near and dear ones.
Walton's business thrives in Q3 of FY 22-23
Walton recorded profit in the third quarter of the current financial year 2022-23 despite adverse business conditions like the global economic recession and geopolitical crisis, said a press release today.
The report was published after reviewed and approved by the company's board of directors at a board meeting held on Wednesday.
According to published reports, the company's earnings per share (EPS) for the period ended March 31 of the current financial year (third quarter) was Tk 8.25. As on March 31, 2023, the company's Net Asset Value Per Share (NAVPS) stood at Tk 224.57 without revaluation and Tk 327.84 with revaluation. In this period, the company's Net operating cash flow per share (NOCFPS) stood at Tk 73.70, which is 550.49 times higher than the same period last year.
According to Walton authorities, due to the increase in transportation costs and the depreciation of the Bangladeshi currency against the US dollar, the cost of raw materials and spare parts increased drastically.
However, Walton is overcoming all the adverse business situations by taking various timely initiatives and thus returning to profit in the third quarter.
As the demand and sales of electronics products in the country increased remarkably centering the temperature rise and two Eids in the country, the authorities hope that the company's profit will be increased more in the fourth quarter of the current financial year.
Banks to remain open on Thursday, Friday to facilitate payment of RMG workers’ salary, bonus
Bangladesh Bank (BB) has directed keeping the scheduled banks open on April 19-21 (Wednesday to Friday) to facilitate payment of garment workers' salary, Eid bonus and allowances.
The central bank has asked the banks to keep open the branches before Eid-ul-Fitr in the industrial areas including Dhaka metropolitan, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and the industry related branches of banks located in Narayanganj and Chittagong ensuring adequate security.
Read more: Gazette published fixing Tk 8,000 as minimum wage for RMG workers
The Department of Off-site Supervision of Bangladesh Bank on Monday issued a circular in this regard
Bangabazar fire: MCCI donates 1 lakh each for 142 most affected traders
The Metropolitan Chamber of Commerce and Industry (MCCI) on Wednesday handed over cheques of Tk 1 lakh each to 142 victims of Bangabazar fire.
The organization provided the assistance at a cheque handing over ceremony at their Motijheel office.
Chamber members, president of Bangladesh Shop Owners Association and affected traders were present on the occasion.
On the occasion, MCCI President Md. Saiful Islam expressed sympathy to the affected businessmen and their families and stressed the importance of supporting the business community in difficult times.
"We are determined to work to the best of our ability to get you back to where you were,” he said.
The 142 affected businessmen were selected by the Society for National Charity that conducted on-spot inspections and identified 142 of the worst-hit people.
ACs selling like hot cakes in heat wave
The sale of air conditioners (AC) has apparently doubled in Dhaka, as the heatwave in the capital saw people suffer the hottest days in over six decades.An AC is almost the only option that offers some relief without disruptions to normal routine. The pressure on customers to buy an AC has increased in many electronics stores in Dhaka.The sales operators of different brand outlets told UNB that AC sales usually increase during the summer season, but this year the growth in sales is already extraordinary - double that in other years, which was beyond their expectations.They said that earlier only well-to-do families would buy ACs, but now a much larger chunk of society is able to afford what was once considered a 'luxury' item. The salesmen claim that given the intense demand, AC is no longer a 'luxury' product, but rather a 'necessity item for city-dwellers'.Mahmud Hasan, manager of the LG Butterfly outlet in Banani, said, “The heat has just started. The way the temperature has already crossed the record is not bearable. That's why a lot of ACs are being sold. The product is sold out before it is picked up in the store. Still have a lot of orders, but can't finish them."On the other hand, buyers complain that the heat has also affected the price of ACs. Compared to last year; the price of an AC has been jacked up by Tk 10,000 for a 1-tonne AC. Larger ACs that can service larger spaces have seen their asking price go up by Tk 32,000 - depending on the brand.
It should be noted that although local companies like Walton have ventured into the AC market, it is still dominated by foreign brands.Therefore the AC marketing companies blamed the depreciation of local currency exchange with the US dollar as a driver of the higher prices for the imported ACs, even before the heat wave created the conditions to loosen buyers' pockets.
Unilever Bangladesh employees donate their salary for Eid fundraising
The employees of Unilever Bangladesh Limited (UBL), the country’s leading Fast-Moving Consumer Goods (FMCG) company, have voluntarily donated a portion of their salary to support underprivileged families to celebrate Eid-ul-Fitr this year.
The donation drive was part of Unilever’s employee volunteering programme that allows employees to be associated with community development, sustainability projects and live their life purpose. Through contribution 230 families will receive essential food items.
During the Eid season, many families struggle to buy necessary food products and miss out on the joy of the holy occasion. This year, due to rising inflation many families are facing additional challenges. To distribute food for the underprivileged families, the UBL has partnered with two non-profit organisations, Utsho Bangladesh and Spreeha. UBL employees will also volunteer their time to distribute the products before the Eid day.
Shamima Akhter, director at corporate affairs of partnerships and communications in the UBL, said, “Unilever Bangladesh has been part of the country’s journey since its inception, and we believe what is good for the country is good for Unilever. As Unilever thrives on building an equitable and inclusive society, our company, brands and people always take bold and required steps in every situation. The spirit of Eid is of caring for the members of our society, and hence we collaborated with Utsho Bangladesh and Spreeha to share the joy of Eid with the less fortunate members of our society.”
Ramadan donation campaign aims for a healthy society that will help UBL grow as well,” she added.
UBL will continue taking initiatives that gives back to the community to foster empathy, innovation, and growth.
Nagad introduces add-money thru’ Agrani Bank’s smart banking app
In an effort to make digital transactions more convenient and affordable, Nagad introduced add-money thru’ Agrani Bank’s smart banking app.
From now, people can transfer money to their Nagad wallets using Agrani Bank’s ‘Smart Banking’ app, said a press release issued on Tuesday.
An agreement has recently been signed between Nagad Limited and Agrani Bank at the latter’s office in the capital’s Motijheel area.
On behalf of Nagad, its Executive Director Maruful Islam Jhalak, Head of Business Mohammad Mahbub Sobhan, and Deputy General Manager Md Bayzid were present during the signing ceremony.
On the other hand, Md Murshedul Kabir, managing director and chief executive officer of Agrani Bank, Wahida Begum, deputy managing director of Agrani Bank, Shyamal Krishna Saha, deputy managing director of Agrani Bank, Rezina Parveen, deputy managing director of Agrani Bank, and Md Shahinur Rahman, general Manager of Agrani Bank, attended the event.
Talking about the agreement, Executive Director Maruful Islam Jhalak said, “We are working on making digital transactions more seamless and convenient. In continuation of it, Nagad has signed this agreement with Agrani Bank.”
From now on, customers of Agrani Bank can easily add money to Nagad wallets, he added.
Currently, 31 banks allow their customers to add money to Nagad wallets. These include Trust Bank, the City Bank, Community Bank, First Security Islami Bank, Mutual Trust Bank, Premier Bank, AB Bank, NRBC Bank, Dhaka Bank, Social Islami Bank, IFIC Bank, National Bank, Exim Bank, Midland Bank, Standard Bank Limited, Union Bank, Shahajalal Islami Bank, NRBC Bank, Rajshahi Krishi Unnayan Bank, Meghna Bank Limited, Bangladesh Development Bank Limited, Bengal Commercial Bank Limited, South Bangla Agriculture Bank, Islami Bank Bangladesh, Southeast Bank, Mercantile Bank, Padma Bank, Citizens Bank, and Bangladesh Commerce Bank Limited.
Volkswagen unveils electric luxury sedan at China auto show
Volkswagen unveiled an electric luxury sedan that promises a 700-kilometer (435-mile) battery range as global and Chinese automakers showed their latest SUVs, sedans and muscle cars Tuesday at the world’s biggest auto show.
Auto Shanghai 2023 reflects the intense competition in China’s fast-growing electric vehicle market after the ruling Communist Party poured billions of dollars into promoting the technology. China accounted for two-thirds of global electrics sales last year.
Brands including General Motors, BMW and Nissan and Chinese rivals BYD Auto and NIO unveiled dozens of new EVs in the cavernous Shanghai exhibition center. Brands touted faster charging, satellite-linked navigation and entertainment, and the future possibility of self-driving technology.
Volkswagen’s ID.7 sedan, the new flagship model for its electric vehicles, was one of 28 models displayed by the German automaker, half of them electrified.
“We are turbo-charging our electric campaign,” said the CEO of VW’s passenger car brand, Thomas Schäfer, who rode onto the stage aboard an electric minibus.
Automakers are looking to China to drive sales growth at a time of slack American and European demand, but that requires them to invest to develop competitive models in a crowded market. Established global brands face pressure from ambitious Chinese newcomers and to meet government sales quotas for electrics. Many are forming partnerships to split soaring development costs.
China is “playing a leading role in the industry’s electric and digital transformation,” said Ford Motor Co. CEO Jim Farley in a recorded message played on a video screen.
Electrics accounted for just over 1 in 4 of the 23.6 million SUVs, sedans and minivans sold last year in China while sales of traditional gasoline-powered vehicles declined.
BMW AG showed an all-electric lineup including two new models, the i7 M70L and XM Label Red. The German sport luxury brand’s M760Le was shown in China for the first time.
GM debuted an electric SUV, the Buick Electra E5, ahead of the auto show. Toyota Motor Co. unveiled two new models for its bZ line of zero-emissions vehicles. Toyota also displayed a prototype self-driving taxi developed with China’s Pony.ai, a leading competitor in the country’s fast-evolving autonomous vehicle industry.
For the first time since 2019, executives flew in from the United States, Europe and Japan for the show after anti-virus controls that cut off most travel into and out of China were lifted in December. VW flew in its entire board of directors and that of Porsche in a show of commitment to the Chinese market.
The organizers said automakers would debut 100 new models, 70 of them electric, according to Chinese media.
Drivers in the world’s biggest auto market bought 5.4 million pure-electric vehicles last year — about two-thirds of the global total of 8 million — plus 1.5 million gasoline-electric hybrids. That was more than one-quarter of total auto sales of 23.6 million. This year’s EV sales are forecast to rise another 30%.
Beijing is winding down government support and shifting the burden to automakers by requiring them to earn credits for EV sales.
Sonamasjid Land Port in Chapainawabganj to remain closed for 6 days during Eid
Export-import activities between Bangladesh and India via the Sonamasjid Land Port will remain suspended for six days on the occasion of Eid-ul-Fitr, the biggest festival of Muslims, port authorities said today.
Abdur Rashid, general secretary of Sonamasjid Land Port C&F Agents Association, said that trade activities will remain suspended from April 19 to April 24 on the occasion of Eid.
Read: Benapole Port to remain shut for 5 days
Trade activities will resume on April 25, he said. However, loading and unloading activities of imported goods at the port will remain normal during this period.
Besides, travelers with passports can travel between Bangladesh and India through the land port's immigration check post during this time, he added.
Dip in US market fails to dent apparel sector's growth momentum
Bangladesh’s apparel exports in the first nine months of the current fiscal, i.e. July 2022-March 2023, jumped by around 12 percent - an impressive clip by anybody's standards. It is even more impressive when you consider that apparel exports to the US, which has been its largest single market, actually declined 5%.
On the other hand, exports to the European Union overall, kept up with the pace of the industry. Apparel exports to the European Union during July-March of the 2022-23 fiscal also jumped by almost 12 percent (11.8% to be more precise), to $17.61 billion, compared to the $15.75 billion recorded in July-March of the 2021-22 fiscal, according to BGMEA Director Mohiuddin Rubel.
The overall growth in apparel export has been an impressive 12.2%, from $31.43 billion in the first 9 months of FY 2021-22, to $35.25 billion in the first 9 months of FY 2022-23.
Read More: Speakers emphasise safety, security in industries to avert another Rana Plaza tragedy
This highly impressive growth figure has been achieved despite the industry's exports to the US having actually declined by 5 percent - to $6.25 billion in the first 9 months of the current fiscal, from the $6.6 billion recorded last year.
Bangladesh’s apparel exports to the UK and Canada reached $3.84 billion and $1.08 billion with 14.04 percent and 17.68 percent growth respectively.
Among the major markets in the EU, apparel exports to Germany declined by 4.16% year-over-year while exports to France and Spain grew by 25.23% and 18.82% year-over-year respectively. On the other hand, exports to Poland declined by 14.86%.
Read More: BGMEA writes to US policymakers for duty-free access for US cotton-made apparel.
The most significant growth was reported in the nontraditional sector. The apparel export to nontraditional market increased by 34.74% to US$6.44 billion in July-March period of FY 2022-23 from US$ 4.78 billion in the same period.
Mohiuddin Rubel, BGMEA director, said: “BGMEA is working to facilitate the exploration of new markets, as well as working on policy reforms to facilitate and simplify business.”
“Our efforts will be continued, and it’s time for all of us in the industry to promote and highlight our strengths in new products and new markets before the global customers (existing and new ones) to explore new opportunities. That will help sustain our growth in the longer term,” he added.
Read More: Apparel exports to EU grew 35.69% in 2022.