A Z M Anas

Top Turkish retailer Tema group unveiled a plan to procure US$ 500 million worth Bangladeshi apparel items by 2012 as it moves to make the country its main sourcing hub, a top company official said.

The Istanbul-based group with an annual sales turnover of $ 812 million will also set up joint venture apparel plants in the country to churn out denim and jacket.

Group Vice President Ted Southall said Sunday Tema, which sells LC Waikiki brand clothing, would import US $ 200 million worth garment items from Bangladesh this year even as global recession stings the industry.

"Bangladesh is a fantastic place for productivity and we are pinning our hopes on its growth," Southall told the FE during a short visit to the country.

"This country, I think, has incredible future. What you need is to improve mid-management and make policies predictable and consistent," he added.

Last year, the Turkey-based group imported garments worth $182 million from the country, but Southall said the amount would nearly treble within the next three years.

"Our dream is to make US $ 500 million purchase (from Bangladesh) by 2012," Mr Southall told his company's top 30 Bangladeshi suppliers in a conference.

Square Group, Fakir Group, Misami, Mohammadi and Babylon are Tema's top suppliers making up 75 per cent of the company's total procurement from Bangladesh.

The company has already tied up with local groups to make sweater and shirt, and has also unveiled plans to establish joint ventures in all segments including denim.

Global consultancy Nielson last year put Tema's LC Waikiki brand as the six most popular in the world, leaving behind Levi's, Mavi Jeans and Bosch.

His announcement comes at a time when the worst global economic downturn has sapped demand for costlier clothing in the West, with Bangladeshi exporters warning of a slump in shipment in the coming months.

Data released by the Export Promotion Bureau (EPB) show that Bangladesh has done relatively well despite the downturn, as top global retailers kept their faith in the country's low-end apparel products.

Swiss retailer H&M is the largest importer of Bangladeshi textiles and its officials have said they have increased sourcing from the country in the past 18 months.

Organised retailers like H&M and Wal-Mart account for some 30 per cent of the clothing items produced by Bangladeshi manufacturers, which smaller shops make up the rest.

Mr. Southall said Bangladesh has defied all odds and continued prosper even in this dour global economic scenario.

"We have been sourcing from Bangladesh for the last 12 years. And all I can say that the country has made rapid strides in apparel sector in each of the passing years," he said.

"I think garment exports from Bangladesh will grow in the near future," he said.

Today, Tema Group is running a store chain which is the leader of its sector and serves millions of people and 240 LC Waikiki stores in 50 cities in Turkey.

The group has interests in retail, architecture, equity investments and apparel-making and is the biggest retailer in Turkey.