Location Within Country: Dhaka, Chittagong and Mymensingh 

Email: akramul.mi@brac.net

Completion date (month/year): January, 2022

The objective of this study is to explore the potential for the application of an existing, patented ETP solution developed by Grundfos and Hydro technologies in Bangladesh. The solution will be applied in the apparel manufacturing sector and aims to introduce quality solutions using innovative business models to address the significant environmental challenge that are caused. The ETPs are mainly catered to Tier 2 apparel manufacturers, particularly in the dyeing and finishing stages of garment production, or in leather tanneries. The study aims to inform the partners of this project whether there is a business case to engage in the ETP market, and if so, to develop an appropriate strategic approach.

The study shall explore the following areas:

• Market conditions

1. Market analysis – the scale and future growth projections of the apparel sector, including assessment of risks facing the sector that may impact the project
2. Assessing the competition in the market, mapping competitors, the existing value chain, and understanding the strengths and weaknesses of the existing technology offerings, current systems being operated, and their success factors.
3. Establishing the legal and regulatory enablers and barriers, including regulation, enforcement of regulation, land access, etc.
4. Identifying the key institutions and stakeholders in the sector that both promote and challenge the proposed project, e.g., Bangladesh Garment Manufacturers and Exporters Association, public institutions and other development organisations operating in the same space
5. Assessing demand and incentives (and disincentives) for factory owners to take up ETPs, such as brand pressure, international regulations, international market access, financing options, etc.

• Operational factors

1. Assessing the supply chain and potential challenges, channels of distribution 
2. Assessing the existing skills base (in the market and within existing network) required to install and maintain the solutions and identifying gaps
3. Describing the required geographical and infrastructural context for the effective installation and operations of solutions (e.g., land use rights, power supply infrastructure)
4. Requirements for compliance in Bangladesh, certifications or accreditations of technology, inspections, etc.
5. Required capacity of operators within the factories to manage and operate ETPs.

• Financial Analysis and Investment Approval

1. The current market for financing as both supplier and customer of the ETP solution
2. Relevant options for innovative and sustainable financing models
3. Projections for likely uptake given informed assumptions from the above or available data
4. Detailed modelling of the business case, including labour requirements for the roll out and scale-up, implementation planning and budgeting

• Defining the way forward

1. The unique value proposition the consortia offers 
2. Possible financing structures for both supplier and customer
3. Organisational setup between project partners and locally in Bangladesh
4. Geographical areas of focus in country
5. Stratification of solutions by factory type, e.g. small, medium, large factories
6. Identification of quick wins and maximum impact