Azim Group pioneering sustainable and efficient RMG manufacturing

Dec 31, 2023

Azim Group, a leading player in Bangladesh’s garment industry since 1980, has experienced significant growth since its establishment in 1975 by the visionary leader Mohammad Fazlul Azim. With 13 manufacturing units and four backward linkage factories in Dhaka and Chittagong that collectively employ over 17,000 skilled workers, the group has experienced management teams operating from Dhaka, Chittagong, Hong Kong, and New York.

Azim Group has evolved into a thriving organisation, upholding the values of honesty and dedication in RMG manufacturing with which its founder Mohammad Fazlul Azim has operated the organization for over four decades. Team Apparel Resources had a discussion with Farhan Azim, Managing Director of Azim Group and the interaction revolved around key issues such as market direction, sustainability, process efficiency, technology and workforce engagement. Here are some excerpts.

Farhan: As the second oldest export-oriented RMG manufacturer in Bangladesh, we at Azim Group had the opportunity to see the evolution of RMG industry as a whole over the last 40-plus years. In the denim industry especially, there has been some drastic changes in recent years.

Historically, denim production had an environmental cost. The traditional tools for washing indigo consisted of chemical discharge in the environment and consumption of large amounts of water. However, over the last ten years or so, thankfully we have seen revolutionary technologies integrate into the denim industry. These new technologies have helped make denim a sustainable product at affordable prices. We embrace new technologies with a commitment to protect our environment, which is a core value of our organization, as well as to satisfy our buyers’ needs.

From a fashion perspective, we are seeing a continuous push from denim brands and retailers towards faster and faster fashion which means shorter lead times. The ever-shrinking lead times have compelled our supply chain to strive towards being more efficient than ever. We also see brands asking for wider variations of styles, colours and washes in any given season which requires us to tweak and adjust our production effectively. As a result, having a streamlined system is essential and fortunately our appropriate investments have enabled us in being so.

Farhan: Firstly, I agree that denim has been somewhat traditional over the years in terms of the nature of the product. Even up until about ten years ago, we did not see many variations in fabrics outside cotton. However, I must say, in the last ten years, cotton with Lycra has become a dominant fabrication in the denim industry due to adaptability in the milling process and also due to acceptability in fashion. Cotton-lycra blended fabrics now have impressive stretchability and hand-feel.

Now though, we are stepping into an era when buyers are willing to experiment with new types of fabrics. Fibres with durable and sustainable properties, such as hemp, are probably going to be the next big thing. We are seeing a gradual emergence of unconventional fibres like banana and pineapple leaves, which can be used to make quality fabrics. Ultimately, in order for a new type of fabric to be viable, it must have a high yield for commercial production as well as properties that can replicate the comfort of cotton.

Farhan: Fast fashion has given way to more buying seasons in a year compared to the traditional concept of Spring & Summer and Fall & Winter. As a result, the focus has been on producing a greater number of styles with more value additions in smaller quantities, more often than not coinciding with the category of premium denims.

We have reacted positively to the reduction of Minimum Order Quantity (MOQs). In order to support our buyers to be able to maintain a continuous inventory flow, we accept orders which are of a limited quantity. For styles with limited order quantity, we have dedicated production lines which have been optimized by our industrial engineers. These lines, in addition to their special machine arrangement, consist of higher-skilled workers and supervisors who are able to quickly adapt and learn the unique criticalities of each style changeover, thus confronting the learning curve with maximum efficiency.

Farhan: With increasing awareness of the environmental costs of denim washing, brands are more willing now to go green. This change in perception from the buyers is aligned with our commitment to protect the environment, which compels us to continue investing in eco-friendly innovations. Our Research & Innovation teams along with our Industrial Engineering teams are always in pursuance for installation of machines with the latest technology and highest efficiency.

Technologies we have been using in our washing factory include the following:

Farhan: Sustainability is a key component of our business and is applied across all stages of operations in Azim Group. We have realized long ago our responsibility as an industry leader to set standards with regard to sustainability in both, the environment and the community.

In social compliance, we are certified by organisations which are globally recognised industry benchmarks such as the SEDEX (Supplier Ethical Data Exchange), BSCI (Business Social Compliance Initiative), WRAP (Worldwide Responsible Accredited Production) and SLCP (Social & Labor Convergence Program). These certifications are a testament of the high standards that are maintained in our facilities with regard to the ethical management of labour and health and safety.

To ensure environmental sustainability, we are certified by Global Organic Textile Standard (GOTS), Organic Content Standard (OCS), (Recycled Claim Standard (RCS), OEKO-TEX STANDARD 100 and OEKO-TEX STeP. We have partnered with the Higg Facility Environmental Module (HIGG FEM) which is a platform that supports factories to measure and improve sustainability of their supply chain.

For traceability, we internally document and record transactions to ensure that our products can be traced back to their source. In turn, this helps to ensure that even the raw materials at their rudimentary level are not rooting from sources that have unethical, noncompliant practices.

Farhan: Efficiency is key to making a profit within our industry. In a highly competitive market, where a few cents can make or break a deal, we constantly look to minimise costs to offer the best prices to buyers. Like you mentioned, we are a labour- intensive industry. It means a large portion of our overhead is worker salary. Hence, the logical step forward is to enhance the productive capacity of each worker so that we are not increasing cost by wasting man-hours. Our highly proficient Industrial Engineering (IE) team provides extensive training to our production team to help them develop their line capacities. As a result, our factories are performing at higher levels of efficiency than before.

In denim industry, there is the challenge of optimising a washing plant, which adds further complexity compared to non-denim products. Our Industrial Engineering and production teams work in tandem daily to ensure efficient utilisation of chemicals, energy and manpower.

Farhan: FastReactPlan is a software by Coats Digital which acts as a vital tool for planning orders, forecasting capacity and allocating production lines. From our perspective, it stands out from other alternative platforms due to its data-driven and precision-based approach, and a user-friendly interface. We adopted FastReactPlan in April 2021, and since then we quickly started seeing results. In the first year, our planning efficiency increased by 15 percent and it has been improving ever since. Ultimately, it enables our management to make more informed, data-driven strategic and financial decisions.

We envision our factory operations to be completely driven by data in the near future. Data allows us to pursue our business objectives with precision thus minimising risks. Hence, implementing IoT (Internet of Things) in our production floors seems like the logical step forward. It is a matter of timing and adopting the right solutions which will help us achieve long-term success.

For more information on our denim specialised factories and production capability, please do visit our website for Azim Denim – www.azimdenim.com