&

Its Foreign Direct

Investment in Bangladesh
 01 Founded in 1952 in Abington, Massachusetts

02 Headquarter is in Stratham, New Hampshire

About
Company 03 Produces footwear & Apparels

04 Currently owned by VF Corporation

 Reason for Choosing Bangladesh for Investment

• Continuous rapid economic growth

• Strategic Location

• Young and skilled workforce

• Growing population

• Competitive labor costs

• Openness to foreign investment

 Competitor Analysis
Major competitors in Bangladesh are-
Competitor Analysis (MNC)

World’s largest shoe manufacturer, founded in 1894

Operation in 70 countries & production in 20 countries

Operating in Bangladesh since 1962

Holds 40% market share in footwear industry

Operational Analysis of Bata Bangladesh

• Factories: 2

• Factory location: Tongi and Dhamrai

• Land area: 64 acres

• Workers in the factory: 3000 (1247 permanent workers)

• Production capacity: 25 to 30 million per year

Financial Analysis of Bata Bangladesh (2021)

Total Revenue Net Income

BDT 2307.74 million BDT 79.21 million

Operating Income Net Profit Margin

BDT 180.61 million 0.61%

Operating Margin Return on Investment

4.07% 1.07%
 Strengths of Bata Bangladesh

• High-quality products

• Strong brand image

• Extensive product lines

• Strong and mass distribution network

• Wide range of associated bands

 Strengths of Bata Bangladesh

• Skilled management team

• Modern manufacturing facilities

• Potential target market

• Loyal customers
Weaknesses of Bata Bangladesh

● High Price

● More emphasis on quality rather than design

● Less effort to attract new customers

● High-cost structure

● High import duties

● High administrative cost

● VAT & tax barrier

 Opportunities of Bata Bangladesh

• Wide assortment of products offered

• Better customer service

• Rise in export

• More emphasis on product quality and design

• Strong retail store network.

Threats of Bata Bangladesh

• “Apex” is considered the biggest threats

• Potential new brands like Bay Emporium

• Counterfeiting of Bata Shoes in uncontrolled locations

• Consumer perception regarding high price

• High price due to high production cost

• Disruption of consistent supply

• Switching new generation to trendy products

 Strengths of Timberland

Strong business presence

internationally
06 Expanding portfolio
01 05
Involvement in CSR
activities
Good Marketing Capability
02 04
Technology in its
production 03
Good brand value
Weaknesses of Timberland

Struggle in High Price

Expanding
Acquisition by
Restricted VF
Business Area
 Opportunities of Timberland

Event Sponsorship
FDI Opportunity in
Bangladesh

Monitoring Price
Threats of Timberland

Tough Competition

Similar Products

Exchange rate risk

Change in Government Policy

 Marketing Mix for Timberland Bangladesh

Product
• Shoes and slippers
• Wallet, purses, backpack, handbags
• Jackets

Price
• Men shoes will be from Tk 3600 to 9000
• Wallet will be from Tk 1000 to 2000
• Women shoes will be from 4000 to 9000
• Hand bag, backpack and purse price will be within from 2500 taka to 10000
taka
• Leather jacket price will be within from 7200 taka to 15000 taka
 Marketing Mix for Timberland Bangladesh

Place
• Initially in major cities like Dhaka, Sylhet,
Chattogram and Rajshahi
• Large shopping malls

Promotion
• Advertisements- TV, newspapers, social media
• Celebrity featuring
• Posters and banners
Method of Investment in Bangladesh

Procedure Foreign company formation

1 Name clearance certificate

Procedure Pay stamp duty at designated bank

2&3 Legal basis of the registration

Procedure Making a company seal

4&5 Open a bank account

Procedure Obtaining a trade license

6&7 Obtaining TIN certificate
Method of Investment in Bangladesh

Procedure
08 VAT registration

Procedure
09 Registration with the BIDA
Location Selected for Production

Bangladesh Small and Cottage Industries

Corporation (BSCIC), Savar

There are 46 guidelines under BSCIC to

establish a business there, (ACT NO. XVII
of 1957)

In Savar, the plot price range are from Tk

43 lacs to Tk 3 crore per acre (tbsnews)
 Laws & Regulations in FDI in Bangladesh

• The Foreign Private Investment (Promotion and Protection) Act of 1980

• The Bangladesh Export Processing Zones Authority Act of 1980
• The Companies Act of 1994
• The Telecommunications Act of 2001
• The Industrial Policy Act of 2005
• The Industrial Policy Act of 2010
• Bangladesh Small and Cottage Industries Corporation Act, 1957 ( ACT NO. XVII OF
1957 )
• (Bangladesh - Openness to and Restriction on, n.d.)
Demand forecast for Timberland Bangladesh

Active Macro
Passive Demand Demand
Demand

Internal
Demand
Short-term
Demand
Exchange-rate Movement Forecast

01 02 03

Forward Future Option

Contract Contract Contract
Thank You
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