RFL exporting shoes to 37 countries
Currently, various non-leather shoes, slippers, flipflops, and cads of world famous brands like H&M, Kappa, and Ambro are being manufactured in Bangladesh, with the country's leading conglomerate RFL producing these sorts of shoes since 2017.
RFL exported shoes worth around 4.7 million dollars in the 2021-22 fiscal year which rose to about $7.4 million in the FY 2022-23.
Currently, the group is exporting shoes to 37 countries. Officials concerned said it plans it will annually export non-leather footwear of $50 million in the next five years.
The company is making a big investment to boost the export of non-leather shoes at a time when the government says to diversify exports to tackle the dollar and global economic crisis.
Sources concerned said the global footwear market size stood at around $400 billion in 2023 and it will be around $500 billion in 2027. Non-leather footwear is a large part of the market. Considering it, RFL started producing non-leather shoes in 2017.
Kappa, Redtape, Ambro shoes being manufactured in Narsingdi
RFL started exporting non-leather footwear in 2021. Footwear products are being manufactured at Danga Industrial Park factory in Narsingdi. Officials concerned said around Tk 138 crore was invested in the footwear sector and around 2,500 people were employed there. The factory is capable of producing 2 lakh cementing shoes, 1 lakh IMEVA shoes, 5 lakh flipflops and 1 lakh injection sneaker each month.
Rahat Hossain Roni, chief operation officer of RFL Footwear, told Jago News, "RFL footwear products are being exported to 37 countries. Of these, the number of European countries is more. The monthly manufacturing capacity of the RFL export unit is around 6 lakh pairs. There are a total of 10 production lines in four different processes under two units."
He said, "We are working to increase new buyers. Income will rise more from exports in the next financial year and it will be double than last FY. We created strong backward linkage and it's our good side. We are operating 10 lines under six categories. RFL footwear has already achieved GRS and RCS certificates which will play a supporting role."
Visiting Danga Industrial Park, machines and workers were seen manufacturing different parts of shoes. Different types of shoes are being produced there after testing quality control and sustainability.
Officials concerned said most of the raw materials used in RFL's non-leather footwear are being imported. Now RFL is broadly working with backward linkage so that it can itself produce raw materials. The company is preparing to manufacture soles, mold, and synthetics used in non-leather footwear soon.
Production officials said if it is possible to produce raw materials in the country used in non-leather footwear, lead time in case of export will drastically decline. If the government gives facilities like garments to establish backward linkage, domestic investors will move into this sector. Then, the necessary linkage will develop for non-leather footwear including accessories.
If necessary linkage develops in the country, buyers will be more interested in purchasing products from Bangladesh because lead time will decrease. Besides, it will be possible to accept it if buyers raise the number of purchase orders at any time.
In case of export, RFL Footwear currently manufactures ladies shoes, ladies sandals and different types of kids items. It will, however, go soon to manufacture high-end or high-price non-leather footwear.
About this, PRAN-RFL Group CEO and Chairman Ahsan Khan Chowdhury said, "There are all facilities in the country for this industry. The government gives all policy assistance that is needed to advance the footwear industry. We have a bond license and we can bring goods under duty-free facilities. Now we want to establish the industry outside Dhaka. We will install the footwear industry in the northern parts within a year. Footwear exports saw around 80 percent growth. We want to move forward."
About the crisis in port management, Ahsan Khan Chowdhury said, "It is needed to increase the capacity of port management so that imported raw materials are unloaded quickly and export of production are quickly and easy. The sector lacks skilled human resources. The government can play an important role in creating skilled human resources.
SM/SU
