Clifton Group, established in 1985, is a leading name in the textile and garment industry, recognized for its focus on quality, innovation, and sustainability. Continuously evolving, the company prioritizes industrial transformation, automation, and worker welfare while expanding into both traditional and emerging markets. By investing in modern technology and workforce development, Clifton Group aims to lead the global apparel industry.
Recently, Wagely, Bangladesh’s leading financial wellness platform for workers, along with Textile Focus had a conversation with Md. M Mohiuddin Chowdhury, Director & CEO of Clifton Group and Former Director, BGMEA. He shared the recent scenario of Clifton Group activities and the new year’s planning. A brief conversation is given below.
Textile Focus: We all know that the industry has undergone many changes since its inception. Could you highlight some significant changes in the industry over the past 10 years?
Md. M Mohiuddin Chowdhury: Since the Rana Plaza disaster, the industry has been transforming in terms of fire safety, building safety, and infrastructure. We have been working on industrial standards. Some factories have shut down, while others have continued production by maintaining Accord standards. Overall, the industrial transformation in the last 10 years has been significant, not just in terms of structure but also in machinery development. Currently, everyone is highly concerned about the 4th Industrial Revolution, where automation is inevitable. As worker wages and power costs are increasing, our challenge is to significantly improve production efficiency. The best factories currently have an efficiency rate between 50%-56%, with a maximum of 60%. However, the average efficiency of our country’s industry is below 50%, which is why we need to work hard to raise this rate above 70%.
Textile Focus: Could you share the journey of Clifton Group with us and highlight your achievements over the past 10 years?
Md. M Mohiuddin Chowdhury: Our industry was established in 1985, with its official journey beginning in 1987. Overcoming various challenges, we have managed to sustain our business, which is our greatest success. We initiated our industrial transformation after the Rana Plaza disaster, ensuring worker facilities. Additionally, we have been updating our machinery and developing a skilled workforce. Various NGOs and organizations have supported us through training sessions and seminars. Despite rising costs, we have managed to stay in business, which we consider our success.
Textile Focus: Could you tell us about the positive facilities Clifton Group has ensured for its workers?
Md. M Mohiuddin Chowdhury: We try to fulfil government-mandated facilities as quickly as possible. For example, there was no government directive on worker bonuses, but we introduced them early to increase employee motivation. Beyond that, we ensure all necessary facilities for their convenience. We also provide emergency financial support to workers, even though it was not a mandatory requirement. Sick leave is granted based on health conditions, and workers are reinstated once they fully recover. We always strive to maintain industry standards.
Textile Focus: Providing financial support to workers is a crucial and positive initiative. In that case, what financial challenges are you currently facing in the garment industry?
Md. M Mohiuddin Chowdhury: Since the COVID-19 pandemic, we have been facing financial challenges. During that time, we had to operate at only 60% capacity, and as you know, no industry remains profitable at such low capacity. However, since last year, we have seen some improvement, with capacity utilization reaching 80%-85%. Meanwhile, our industry costs have significantly increased due to certain non-compliance issues. For example, gas prices have doubled in the last three years, and electricity prices have also risen without a clear policy. Compared to other countries, Bangladesh’s cost increase is much higher. While customs duties have been reduced, operational costs have risen. The only solution is to enhance efficiency in the industry. To improve efficiency, we need modern machinery, training sessions, and skilled workers.
Textile Focus: There is uncertainty in the apparel industry, but Clifton Group continues to maintain a positive trajectory. What is your outlook for the future of this industry?
Md. M Mohiuddin Chowdhury: International customers are increasing their demand, and we are receiving orders accordingly. However, we are still not operating at full efficiency, which needs more attention. We are currently receiving about 80% of the expected orders, whereas we should be receiving 100%. During peak seasons, we must quickly reach full capacity to meet demand. Since order volumes are increasing in Bangladesh, we must prepare accordingly. Due to the deteriorating relationship between China and the US, we anticipate a surge in orders coming to Bangladesh. If we can achieve 100% efficiency, I believe we can recover from our losses.
Textile Focus: Finally, what is Clifton Group’s plan for 2025? What additional steps are you taking to enhance efficiency?
Md. M Mohiuddin Chowdhury: As part of our plans, we have launched industrial engineering. We are also analyzing each product to find ways to increase efficiency. While anyone can produce common products, we are focusing on specialized products. Our goal is to manufacture products for major global brands. We are also exploring new markets beyond Europe and the US. We see potential in markets like China and Taiwan, as their manufacturing costs are very high, making them potential clients for outsourcing. Additionally, we are working to expand into new markets.
