India-based multinational fashion brand Raymond is planning to wind up its business due to the ongoing situation in Bangladesh. However, the fashion brand is not going to implement this decision soon.
Gautam Singhania, chairman and managing director of Raymond, said this in an interview given to the Times of India.
Gautam Singhania said, since the recent political change in Bangladesh, we have been under pressure from various global firms. Many are eager to take advantage of this situation. That is why we have taken such a decision.
He said, for now we are monitoring the overall situation. It will take some time; However, our decision to withdraw is final.
Singhania said labor costs in Bangladesh are relatively cheap compared to India and Bangladesh has a huge market of 170 million people. This is positive for business but the biggest problem here is lack of clothing.
Raymond Chairman said that labor is cheaper in Bangladesh compared to India. The market is also fairly satisfactory; But this country has no textile base. There is no supply of self-made clothes. Almost all of the infrastructure developed here is focused on the garment industry. So we have to depend on India for clothes. If we shift the business to India, we will save on fabric procurement costs and reduce production costs.
