How Team Group revived sick industries into booming businesses

Team Group exemplifies how effective management can revitalise struggling businesses into flourishing enterprises. Through the acquisition of four sick factories from different banks since 2009, the group successfully transformed them into thriving ventures.

Now, the group has its eyes set on reaching an ambitious $1 billion turnover by 2028.

Diversifying its portfolio, the company has a robust presence across multiple sectors including apparel manufacturing and trading, pharmaceuticals, IT, real estate, and the retail giant Twelve Clothing, boasting an impressive annual turnover of around $700 million.

Of this turnover, $315 million streams in from apparel manufacturing, $370 million from apparel trading, with the remainder sourced from its various other ventures.

With an ever-expanding workforce, the group now proudly embraces a family of 23,000 employees spanning 13 business units, including six RMG units, marking a significant evolution from its humble beginnings.

Team Group Managing Director Abdullah Hil Rakib shared how he transformed a struggling factory, 4A Yarn Dyeing Ltd, into a LEED platinum-certified facility. Previously a yarn dyeing factory, it now operates as a modern outerwear facility with 20 production lines.

"After the acquisition, there were some lands in front of that factory and these were not bought. After procuring this land we made a visionary factory there. That could be considered as a benchmark factory in ESG Indexes till 2035," said Rakib.

The group also owns Team Sourcing, a major buying house in the country run by Bangladeshis, operating globally in the UK, Germany, Spain, Italy, Turkey, and Australia.

Move to success

Rakib himself began his trading business in 1998 in Singapore after starting his career in 1993 with a multinational company.

Before making any investment, it is crucial for an entrepreneur to thoroughly understand the business, said Rakib, who is also a director of the Bangladesh Garment Manufacturers and Exporters Association.

"Entrepreneurs have the ability to turn every challenge into an opportunity. They need to provide guidance to managers to achieve this," he added.

He also highlighted the longevity of their core managerial team, noting that one board director started as a trainee merchandiser in his trading company back in 1998.

Explaining the name "Team Group," Rakib stressed the importance of teamwork, saying, "I rely on our team. That's why I always say 'we/us' instead of 'I'."

Diversification in investment 

As a growing business conglomerate, the company's strategy is to invest equally in ventures other than ready-made garments to maintain a balanced investment portfolio.

Rakib stated that RMG, along with its sub sectors, still holds growth potential for another 25-30 years. "In 2017, we diversified our investments by launching Twelve Clothing, a retail company, to enhance our RMG expertise."

With the country moving towards middle-income status, there are more investment opportunities in clothing, housing, technology, and healthcare sectors, he said.

Team Group aims for a technologically advanced Bangladesh by 2040, with the Ministry of ICT making strides in automation. The group has invested in the IT sector, focusing on software development for both local and international clients.

"We collaborate with government institutes on automation projects. Additionally, we've developed a quality monitoring system (QMS) for apparel production, improving efficiency and providing real-time insights into worker performance," he said.

Previously, worker productivity was assessed manually, he explained. Now, with QMS, entrepreneurs can monitor sewing quality remotely, motivating workers and identifying training needs, improving management efficiency.

"We're also developing an IoT device to monitor factory waste management in collaboration with the government. Expected to be implemented by the end of 2024, this demonstrates our commitment to innovation and sustainability," said Rakib.

Potential in healthcare 

Team Group has also entered the healthcare sector, focusing on producing emergency medicine.

Rakib said, with the country's transition to middle-income status, the pharmaceutical industry is poised for growth, particularly in the health supplement market. As the demand for imported medicines rises in the country, local production is expected to increase by 2030.

Once the country graduates from Least Developed Country status in 2026, pharmaceutical companies will need to adhere to World Health Organization (WHO) or World Trade Organization (WTO) guidelines for copyrights.

"At that time, multinationals will move forward to this market, which will create competition with local pharmaceuticals. Therefore, local companies should have standards to compete with them," he added.

Rakib anticipates increased competition from multinational companies post-2030, prompting them to utilise local facilities for contract manufacturing.

"This competition will enhance the standards of local pharmaceutical companies, leading to increased consumer confidence and expanded export opportunities for locally manufactured medicines," Team Group MD said.

Good governance needed  

Achieving developed country status by 2041 requires good governance, said Rakib. Without a clear understanding of industry strengths, upcoming challenges, and solutions, this goal remains one-sided.

He said it is important to work with a positive mindset to ensure implementation of this vision. "We're committed to hard work and passing on this oath to the next generation, contributing to our country's progress by 2041."