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

India mulls new schemes for jobs, textile clusters

Apparel/Garments | On 25th Apr 2018

India mulls new schemes for jobs, textile clusters

India is mulling over alternative schemes for jobs and manufacturing...

Kraig gets approval for Vietnamese subsidiary firm

Textiles | On 25th Apr 2018

Kraig gets approval for Vietnamese subsidiary firm

Kraig Biocraft Laboratories, Inc., the leading developer of spider...

Courtesy: ITMA Asia

Textiles | On 25th Apr 2018

ITMA Asia + CITME 2018 attract global textile companies

The sixth edition of ITMA ASIA + CITME 2018 has received strong...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Wendell Rodricks
Wendell Rodricks

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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