Gokaldas Exports has deferred its expansion plans for Bangladesh as the country continues to suffer from political unrest. The company had planned to set up a garment factory in the nation.
However, Gokuldas Exports will continue to engage in contract manufacturing in Bangladesh for the time being, says SivaramakrishnanGanapathi, Vice Chairman and Managing Director. The company currently exports to over 50 countries including the US, Canada and various other European nations,
Emphasising the importance of the apparel manufacturing sector to Bangladesh’s economy, Ganapathi states, the country needs to protect and support the industry for its own best interest.
The turmoil in Bangladesh escalated when Prime Minister Sheikh Hasina was forced to step down and flee to India following violent clashes between students and pro-government supporters. What began as peaceful protests against government jobs quota quickly spiraled into deadly unrest, with the UN Human Rights Office reporting that over 600 people have been killed in the protests.
In light of the situation, several leading European companies have approached Gokaldas Exports for assistance in meeting their increased demand, Ganapathi notes. Although sourcing from India instead of duty-free Bangladesh is more expensive for these companies, their inquiries reflect a growing effort by foreign brands to mitigate risks in their supply chains.
