In a decisive shift for Bangladesh's textile landscape, the interim government has officially scrapped a direct deal with Japanese firm Revival Group, opting instead for an open international tender to lease the debt-stricken Beximco Industrial Park.
Overseen by the Bangladesh Investment Development Authority (BIDA) on the directives of Muhammad Yunus, Chief Adviser this transition aims to uphold public procurement transparency. The pivot follows an impasse where state-owned Janata Bank and the Financial Institutions Division failed to reach a consensus on the previous tripartite draft, citing the lack of competitive bidding as a primary concern.
Lender aggression and asset auctions
The urgency for a new operator is fueled by a staggering default profile exceeding 35,000 crore BDT ($2.9 billion). Janata Bank, which holds nearly 65 per cent of this exposure, recently initiated independent auction processes for key units including International Knitwear & Apparel and Urban Fashions. While a recent High Court stay has temporarily paused these sales, the bank continues to push for aggressive recovery. The primary goal is the immediate recovery of the 600 crore BDT government loan used for worker arrears, stated M Sakhawat Hossain, Brigadier General (retd), Potential lessees must now demonstrate not only operational expertise but also the capacity to satisfy the state's priority claims.
Operational survival and export viability
Despite the financial turmoil, Beximco’s 15 textile units remain a high-value asset due to advanced machinery and a legacy of servicing global majors like Inditex and Target. The industry view, echoed by BGMEA leadership, suggests, successful leasing depends on a ‘reputation-first’ operator who can restore buyer confidence shattered by the February shutdown. Any new contract will likely reflect the original proposal’s core structure: the operator provides working capital while profit shares are funneled directly to debt adjustment, bypassing the original owners.
The BIDA-led leasing initiative targets the revitalization of 15 garment and textile factories at the Beximco Industrial Park in Gazipur. Focused on high-capacity apparel exports, the plan seeks to reinstate 25,000 workers while servicing a 23,000 crore BDT debt to Janata Bank. Management under the new tender will focus on technical efficiency and ESG compliance to regain international brand certification.
