The apparel sector is the largest contributor to Bangladesh’s export earnings, and the industry is now being led by a new generation of dynamic leaders. One such leader is Mr. Khaiyam Haque, Director of Mascot Group, who plays a crucial role in the ongoing success of the company. With a BBA from California State Polytechnic University, Pomona, Mr. Haque has been instrumental in advising the board on current business strategies and exploring future growth opportunities.
Mr. Haque is the son of the late Mr. Enamul Haque (Ripon), a Director and one of the founding members of Mascot Group. Currently, he oversees the operations of Mascot Knits Limited and is the youngest active member of the board, having started his career at the early age of 23 in 2018. In a conversation with Textile Focus, Mr. Haque shared his insights on the current state of the Ready-Made Garments (RMG) sector in Bangladesh, Mascot Group’s role within it, and the challenges the industry faces.
Textile Focus: Could you share with us the current scenario of the RMG sector?
Khaiyam Haque: Although Mascot Group represents only a small fraction of Bangladesh’s RMG sector, we are deeply concerned about the challenges and difficulties ahead. The sector has not yet fully recovered from the impacts of the global COVID-19 pandemic, the ongoing Russia-Ukraine war, and economic recessions. National issues, such as minimum wage hikes, gas shortages, and political unrest, further complicate the situation.
Currently, the business environment and policies in Bangladesh are not as favorable as they need to be to sustain and grow in the global market. In an industry where volume is key and profit margins are slim, high-interest bank loans with restrictive terms and a lack of supportive policies could be devastating. If banks fail to adapt to the changing needs of the industry, we may see more downsizing and factory closures, particularly among small and medium-sized enterprises. This could lead to a concentration of power among larger surviving factories, creating a monopoly.
Textile Focus: Could you tell us more about Mascot Group?
Khaiyam Haque: Mascot Group, comprising Mascot Knits, Mascot Fashions, and Mascot Garments Limited, is a 100% diversified woven apparel manufacturer. With a 40-year history, the group has an annual capacity of 12 million pieces and exports worth $30 million. We specialize in producing a wide range of woven tops, blouses, shirts, and bottoms for various categories. Our customer base includes 45% from the EU, 50% from the US, and 5% from other destinations. Some of the brands we work with include Inditex (Zara, Pull & Bear, Lefties), Walmart, JC Penney, Bass Pro, George UK, Sainsbury’s, Loblaws, Lidl, Teddy S.p.a, Dunnes U.K., U.S.P.A., and C&A, among others. The company is now led by the second generation, with the founding members serving as board advisors.
Textile Focus: What are your future plans to boost apparel exports?
Khaiyam Haque: At the moment, we are not focused on growth. Our priority has always been to maintain a healthy balance sheet and ensure that our liabilities are lower than our asset values. Recent events have made us more cautious about investments. Our current focus is on downsizing, paying off liabilities, and targeting high-value, ethical customers at sustainable prices. It’s not worth taking on more debt for loss-making orders. Economies of scale do not benefit us in the current climate.
Textile Focus: What recent challenges has Mascot Group faced?
Khaiyam Haque: Since the start of 2024, we’ve seen bank interest rates nearly double, while worker wages, utilities, transportation, and overall expenses have increased by 35-40%. We’ve lost nearly 15 days this year due to political unrest and riots, which translates to a 50% loss in monthly salaries, all while still carrying the financial burdens of the COVID-19 pandemic.
Many buyers have canceled orders due to political delays, forcing us to accept discounts and bear the cost of air freights due to delays in shipping and lost sales. Payment delays caused by liquidity issues are leading banks to enforce loans and charge interest, while supply chain disruptions are further straining our operations. Additionally, our buyers are expressing uncertainty about prices and order volumes for upcoming seasons.
Textile Focus: How do you view the Bangladesh market and its challenges?
Khaiyam Haque: If the current trends continue, the biggest challenge will be further price reductions and a loss of confidence from global buyers in Bangladesh, which would result in more business losses. Without initiatives from policymakers to support skill development, relax credit terms, and create fair trade policies, the industry will struggle to innovate and will continue to shrink in terms of profitability and value, making operations increasingly expensive.
As business owners, we urgently need the support of the interim government, banks, and the BGMEA to turn things around for the industry and prevent more factory closures. Currently, many factories are struggling to pay workers’ wages and face uncertainty regarding future orders.
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