Knitwear makers in Bangladesh are now integrating their existing composite units with more facilities. Composite units are one of the main strengths of the country’s knitwear sub-sector that sources more than 90 per cent of fabrics from the local market. Traditionally a knit factory having its own knitting, dyeing, sewing and finishing facilities is known as a composite.

Global brands and retailers now prefer their sourcing units to have more integrated facilities like washing, printing and embroidery on the premises or under single ownership mainly to ensure compliance in the whole supply chain. This helps buyers trace and ensure all safety and other requirements if all the units are on one premise or surrounding areas or have the same ownership. Big brands and buyersdo not want to risk their reputation by sourcing from any unit that is not compliant.

Policy support, especially cash incentives up to 25 per cent for local fabric sourcing, has also helped entrepreneurs set up composite units. The number of composite units ranges from 400 from 500.

Value addition by the composite units is nearly 100 per cent as they source fabrics from the local market. The knitwear sector as a whole adds value to about 75 to 80 per cent because the basic raw material, cotton, is being imported.