JuteLab International & Inclusive Business Sweden in collaboration with Asian Development Bank, conducted the sector based study on Inclusive Business models in the value chain of the textile and clothing industry in Asia, focusing on Bangladesh and Myanmar. The study – named Project InTaCt (InclusiveTextiles and Clothing) – focussed on mapping opportunities for developing inclusive business models across supply chains in Asia as possible new and innovative investment opportunities for leading Swedish and other international and local companies in the sector.
In total 11 broad opportunities were identified in Bangladesh and a further 8 in Myanmar. Within each of the two countries, two opportunities were prioritised based which were considered to be commercially viable and scalable with a great potential for positive impact and that actors in Bangladesh, Myanmar and Sweden were interested in
engaging with.
In Bangladesh, out of two, the ‘Jute Denim – A Farmer to Factory Supply Chain’ has been chosen as the high potential opportunity which was done by JuteLab International in collaboration with Juteborg AB, Inclusive Business Sweden and some other private sector companies in Bangladesh. Jute Denim is the creation of a sustainable farmer-to-factory supply chain for jute denim.
The “Jute Denim” initiative – the creation of a sustainable farmer-to-factory supply chain for jute denim – aims to address ecological, economical & social challenges of the textile and clothing sector. A global consciousness has already developed against the use of artificial fibre and synthetic products, which are starting to be replaced by environmentally friendly alternatives.
The objective of the initiative is to produce primarily jute denim for the Bangladesh textile industries who will then make Jute denim finished products for global buyers. This initiative would also play an active role in bringing synergies in the entire value chain by building capabilities of the contract jute farmers, and giving technological and improved solutions for non-hazardous retting and stripping process of the fibre in collaboration with other actors. This proposed model would also help to get high quality jute fibre by ensuring the right price for the farmers. The ownership of the production units will be divided as 80:20 ratio between owner and workers where 20% would be kept for the workers as ‘workers’ dividend’. So overall there would be genuine possibility of economically mpowering the part of BoP population in Bangladesh through implementation of this model.
Right now, JuteLab International is aiming for conducting a thorough feasibility study of the project along with different actors.