Entrepreneur treats employees with respect
'Go West' was the advice given to entrepreneurs seeking a fortune in the pioneering days of one great nation. Now, a Hong Kong-based manufacturer is applying his own version of the maxim as he expands his factory empire northwest from Dhaka.
Must Garment boss Sanjeev Mahtani plans to cross the River Brahmaputra to build several satellite factories. After seeing what is happening on the mainland and in Vietnam, as more workers opt to stay near their home provinces instead of working away for months in far-flung locations, he believes it is best to follow the workforce.
'What I saw happening in China after the new year holiday was an eye opener. People are now leaving the cities to find work in the villages,' says Mahtani, who employs 25,000 people worldwide.
'We went on a study trip to the north, a four-hour drive from Dhaka and identified several sites there. First we intend to employ 2,000 people, then 10,000 over time.'
Being near a river would also give the company access to water in order to perfect garment finishing techniques and develop textile mills.
Like Epic Group, which is another Kwun Tong-based manufacturer and a competitor, Must Garment has pioneered cleaner, safer factories with ethical working practices and good canteens. The company is also working to attain a prized United States Green Building Council endorsement.
But Mahtani also has his eyes on costs, and demand by the big fashion brands to have garments delivered quicker.
'We have to cut down on the lead time, with customers demanding the goods quicker. The people we hope to employ at our satellite factories have already worked for us. So we are following them home.'
Mahtani and his management team found that the area south of Dhaka, towards Chittagong, is already heavily occupied by factories.
'Inflation is also creeping up in terms of wages and material costs, and this will be a major challenge,' he says. 'These lower-cost satellite operations will help Must maintain costs over the next 10 years.'
A company spokesman says one of the sites will become a new textile plant once Bangladesh resolves it gas crisis. It is also hoped the port development at Chittagong will cut shipping times to the US.
Must Garments' apparel factories help meet the huge demand for new denim fashions. For this process, they are continually updated with professionals brought from Europe and Hong Kong, working at Must factories in Bangladesh to implement the latest techniques.
'You have to treat the labour with respect and give them far more in terms of wages and look after them by giving them a place where they want to come to work,' Mahtani says. 'I see that the workers are serious about their work and the quality of the goods. That's the attitude we have in Bangladesh. A stellar workforce is very important. Without that you would not be able to do well in this business. It's important that they are looked after. We have become a sort of training school and a model for other factory operators to follow. We are also becoming the employer of choice for school leavers and people with college training.'
A minimum wage bill in Bangladesh is 'not going to be difficult for us as we are already paying above that'.
Family attachments to Bangladesh remain strong too, with a sister born on independence day.
