Welcome To
Bangladesh Shoe City Ltd.(BSCL)
Concept of Shoe City
The infrastructural development of an industrial enclave in Bangladesh located in Gazipur, the industrial heart of Bangladesh. The project will provide end-to-end infrastructure required for the manufacturing of all kinds of footwear, accessories and garment products, along with the necessary raw and finished materials required for having a total supply chain present, all in one location.
Beneficial Factors of Production
in Bangladesh and BSCL
Cost-Effective Labour
With a minimum wage of USD 70-100, and an abundance of a young workforce (65% of the total population), the country has one of the most cost-effective labor workforce with great capabilities
No investment for Land/Building
BSCL will provide with land and building infrastructure with also turn-key suggestions from investors and can work in different partnership formats
Cash Incentives
Bangladesh government is supporting the growth for industries by giving cash incentives to various sectors, for leather goods and footwear, the incentive is 15%
Duty Free Exports
Bangladesh can export shoes, leather, garments, and products from a variety of sectors to majority of countries in the world
Benefits of Investing in Shoe City
For Shoe Manufacturers:
- Investors are able to setup operations cheaply and efficiently with minimal burden of establishment costs
- Utilizing a shared services model within the industrial zone, investors are able to rely on centralized infrastructures and not setting up silo-end operations
- All secondary and tertiary industries required for shoe manufacturing in same vicinity
- Investors can take advantage of numerous trade benefits of manufacturing footwear products in Bangladesh, such as cash incentives and duty-free export in the world market
- Obtain access to skilled and semi-skilled labor
For Material/Accessories Manufacturers:
- Manufacturers that will come to set-up factory in BSCL already have market share and selling establishment in Bangladesh
- After setting-up their own production facilities, they can capitalize and take on 100% share for competitiveness and prompt delivery
- Minimizing transportation, customs hassle and costs for delivery in Bangladesh with no costs to primary goods manufacturers within BSCL
- All raw materials factories will be in-house, saving time and money, with reduced lead times, which is the biggest downside for the industry today
- No need for setting up external facilities such as ETP and waste management as it will be developed by BSCL to ensure compliance standards within the industrial zone
Our Economic and Social
Implications
- GDP growth for the nation with also new foreign investment in a developing sector, in a country moving towards becoming a middle-income nation
- Employments of thousands of workers and employees, as well as providing further training to have higher level of skilled labor
- Emergency policy facilitation by government depending on situations such as COVID-19 with relief funding
- Ability of the BSCL as a full industrial zone to take the progress of the sector to new heights as footwear exports have been the same of around USD 1 billion yearly for over 10 years
- Development of a fully sustainable supply chain and ecosystem which did not exist before to be able to efficiently compete with countries such as China, India, and Vietnam
Our First Successful Investor
Five-R Footwear Ltd.
Five-R Footwear Limited is a successful venture already operating within the proposed area of BSCL. It is a full composite leather footwear manufacturing firm producing around 2000 pairs of leather footwear per day. The company has a composite of a leather finishing tannery with capacity of finishing 20,000 Sqft. per day and sole manufacturing unit producing 3,000 pairs per day. Additionally, Five-R Footwear has a bonded warehouse in its premises along with an operational ETP that decomposes multiple types of waste. The production facilities are ecological and employs the latest ergonomically advanced
machineries. The company has also built its own roadways within the area that connects to two major highways. Furthermore, there are plans to develop more connective roadways within the area and also power lines + renewable energy sources by private funding. There is a significant potential for economies of scale exists if key resources such as ETP, bonded warehousing and roadways are shared within the industrial area as the capacity is there to leverage these resources to a greater scale.
First industrial park for shoes shaping up
A top footwear manufacturer is setting up a shoe industrial park, the first of its kind in Bangladesh, to supply import substitute raw materials and accessories to producers, boost exports, and attract foreign investment. The Bangladesh Investment Development Authority (Bida) gave permission for the establishment of Bangladesh Shoe City Ltd in September.
Nasir Khan, chairman and managing director of Jennys Group, is the founder of the park. The park, which is being set up in Gazipur, would cost around $100 million, or Tk 900 crore. Of the sum, Khan’s equity is 46 per cent and a global lender will provide the rest. “I have already received the green signal from the global lender about the financing,” he said. He did not disclose the name of the lender since no agreement has been inked yet. The park is located over 35 acres of land where 24 factories could be accommodated.
The land has been developed. Jennys Group has already set up three factories, including a shoe manufacturing unit. The footwear sector needs at least 152 items to manufacture a piece of shoe. Of them, 50 major items will be produced in the park, khans says.
BSCL Shared Facilities
Land and Premises
Energy- Gas and Electricity
Bonded Warehousing and Storage Facilities
Restaurant/Prayer Area
Effluent Treatment Plant (ETP) and Waste Management
Central Human Resources/Compliance Management
Raw Materials Procurement and Production In-house
Logistical Support
Security/Cleaning Services
Accommodation Facilities for Staff and Customers
Fire Service Station
Medical/Child Care Center
Administrative Team, supporting Legal Team with Chartered Accounting Team
Training Center for Developing Skilled Labour
Machinery Assembling/Repair Facilities
Inspection/Testing Laboratories
List of Manufacturing Units in Shoe City
