RFL Footwear looks to raise non-leather exports to Africa

RFL Footwear, a concern of PRAN-RFL Group, wants to expand its non-leather footwear business in African markets.

"Africa can be a good market for us in the near future. Our progress depends on the skills of our workforce. But we have to further reduce our production costs so that we can compete extensively with China," said Ahsan Khan Chowdhury, chairman of PRAN-RFL Group.

"We are trying every day to export our shoes to different parts of Africa. Besides, we have the opportunity to do well in the Middle Eastern and Indian markets," he added.

While pointing to how the government has set an export target of $80 billion by 2024, Chowdhury said the export sector must be diversified.

And footwear, especially non-leather footwear, could be one of the most important products in this regard.

Besides, due to increasing global preference for environment and animal-friendly products, consumers across the world are switching to non-leather products, he added.

RFL Footwear's products are currently being manufactured at its factory in Danga Industrial Park, Narsingdi, Dhaka. The company's footwear industry was set up at a cost of about TK 138 crore and currently employs around 2,500 people.

RFL Footwear manufactures sneaker, ladies' shoes, ladies' sandals and various items for children, Chowdhury said.

RFL started exporting non-leather footwear products in 2021. It exported non-leather footwear products worth about $4.7 million in fiscal 2021-22 and $7.2 million in fiscal 2022-23.

According to the Export Promotion Bureau, Bangladesh exported non-leather footwear worth $478 million in fiscal 2022-23 compared to $244 million in fiscal 2017-18.

At present, RFL is exporting non-leather footwear products through buyers of different countries. Among these, the main buyer is H&M.

Other buyers include Kappa, Umbro, Airness and Redtape, said Rahat Hossain Roni, chief operating officer of RFL Footwear.

RFL's footwear products are currently being exported to 37 countries through these buyers.

The company's export unit has a monthly production capacity of around six lakh pairs, with 10 production lines at two units for four different processes.

RFL Footwear has already obtained GRS and RCS certifications, which will play an important role in exporting its non-leather footwear products.

Most of the raw materials used in RFL's non-leather footwear are imported from China. But, now RFL is working extensively on backward linkage to produce the raw materials itself. As such, preparations are underway to produce the sole, mould and synthetics used in non-leather footwear soon, Hossain said.

If the raw materials that are currently imported can be produced in the country, the lead time for exporting products will considerably decrease.

Also, if the government provides facilities similar to those for the garment industry in establishing backward linkages, then investors will come forward and only then the necessary backward linkages for non-leather footwear will develop.

And if the necessary backward linkages are developed, buyers will be encouraged to buy more products from Bangladesh as the lead time will be reduced, he added.

In 2023, the global shoe market grew to about $400 billion. This market will be worth about $500 billion in 2027, according to industry people.

In fiscal 2022-23, footwear exports from Bangladesh were worth $1,180 million. Leather footwear accounted for $700 million of the sum while non-leather footwear contributed $480 million.

Currently, Bangladesh ranks 16th in global footwear exports.

China is at the top in this regard, catering to more than 60 percent of the global demand.

Hossain informed that RFL will soon move into manufacturing high-value non-leather footwear because they have huge demand worldwide.

Additionally, it is possible to earn a lot of foreign currency through it, he said.

RFL Footwear markets 50 percent of its products domestically and exports the rest.

As there is huge potential for export, about 80 percent of its production is planned to be exported. With this in mind, the company will soon add six more production lines, Hossain said.

Because of that, there are plans to invest about TK 100 crore in the future, he added.