Home / Knowledge / News / Apparel/Garments / Otto & Grameen JV to set up 'Factory of the Future' in Dhaka
Otto & Grameen JV to set up 'Factory of the Future' in Dhaka
16
Nov '09
The Otto Goup, Hamburg, the largest mail-order group in the world, and Grameen, have formed a joint venture to set up the Grameen Otto Textile Company. It will be set up as "The Factory of the Future" in Bangladesh and is the first company worldwide in the area of social business (type II), to work on a profit-oriented basis. The profit, though, is managed in a foundation, the Grameen Otto Trust, and serves exclusively to improve the living conditions of the employees, their families and sponsored communities.

The "Factory of the Future" will be set up in Dhaka, the capital of Bangladesh, and will produce clothing for export, under socially and ecologically sustainable conditions. The ecologically-optimised, CO2 neutral building will be fitted with the most up-to-date insulation, energy-saving lighting and optimised air-conditioning systems, paying special attention to the use of renewable energies.

The aim of the project is to give the poor population in Bangladesh the opportunity to free themselves from poverty. Initially, between 500 and 700 people are to be employed, at an appropriate wage and with good social benefits.

Professor Muhammad Yunus adds, "Poor people do not ask for charity, as charity is not a solution for poverty. They want to work in order to earn their livelihood. The Grameen Otto Textile Company creates work for the poor. It will act as an example against poverty in the world."

The Otto Group grants an interest-free loan to cover the investment costs of setting up and running the factory. The loan will be paid back over a period of 10 to 15 years from the profits of the Grameen Otto Textile Company.

The profits will not be distributed as dividends to shareholders or investors, but will serve to expand and modernise the company and to pursue social objectives locally. In the first instance, profits shall be used to offer a healthy lunch for the employees, to carry out further education as well as health care and to set up a day-care centre for children offering pre-school classes. In addition, in the communities, assistance will be given in the health sector, for sanitary facilities and for the education and further education of the population. The project will be a beacon for socially and ecologically sustainable economic activity.

Dr. Michael Otto, Co-Initiator of the project and Chairman of the Supervisory Board of the Otto Group is confident: "The Grameen Otto Textile Company will show that it really is possible to reconcile ecological and social criteria with economic goals. It should become a model for textile production in Bangladesh and for similar factories all around the world."

The Grameen Otto Textile Company is to grow in a sustainable way. Expansion of the factory at the Dhaka site is planned for the second phase, and expansion within Bangladesh in other countries is possible in a third, long-term phase.

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search