SouthAsia Enterprise Development Facility

Promoting Cleaner Production in the Textiles Sector

May 9, 2011

•Yarn •Knitting •Fabric Dyeing •Cutting & Making

•Spinning •Weaving•Washing

•Finishing

•Export

•Cotton

Value Chain

•1700 units 1700 units employing 200,000 workers

•Growing at 10% per year

•Net value addition 12-20%

Objective of the CP Intervention

Improve waste management and production

efficiency of the WDF firms by demonstrating the

benefit of adopting cleaner production (CP),

capacity building of service providers &

stakeholders.

Benefits of Using Cleaner Production

• Reduced operating cost and improved productivity

• Improved company image-better market access

• Reduced environmental impact and reduced risks and liability

• Opportunity to gain access to finance

• Increased worker productivity due to having better process controls in place

Overview of the Program

International Consulting Firm (NEC)

Local Consulting Firms (Adroit & Reed) Capacity Building

• Program approach at factory level

• Baseline assessment

• Identify areas of improvement (short/medium/long)

• Support factories to implement CP options (training, consultancy, user group)

• Evaluation

• Industry wide uptake through replication

IFC SOLIDARIDAD BRANDS

Partners

9

Partners-Factories • ABA GROUP

• COMPTEX BANGLADESH LIMITED

• COSMOPOLITAN INDUSTRIES (PVT) LIMITED

• FAKIR KNITWEARS LIMITED

• HAMZA TEXTILES LIMITED

• INTERSTOFF APPARELS

• KNIT CONCERN LIMITED

• LIBERTY KNITWEAR LTD

• MULTIFABS LIMITED

• S.F.FASHION LIMITED

• TARASIMA APPARELS

• UTAH KNITTING & DYEING LTD

• NAZ FASHIONS

• ELEGANT FASHIONS

Implementing CP at the Factory Level

User Group Approach

Factory Specific CP

Consultancy

What is User Group

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•Members of different companies talk about one topic

•Motivated to

Improve

Save

Reduce costs

•Open discussions with implementers

•Action

•Share results

Actions in a User Group

• Define the problem

• Study literature (what is out there?)

• Do measurements (where are we now?)

• Determine the influences/parameters

• Define improvements

• Implement improvements

• Stimulate and monitor follow up actions

• Defining results of the actions

• Benchmarking

• Evaluation

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CP Program approach at factory level

•Clarification on data •All data based on audit days

•and any other left over data

•Submission and Presentation of audit report

•Evaluation of report by Client

•Comments from clients

•Preparation of Report

•Data Analysis •Secondary Data

•Pre-Audit Assessment•One-one meeting

•Final Report preparation & Submission

•Questionnaire Check list

•Sampling Data Gathering

•Filling survey questionnaire

•Audit Field Work

•Dates Finalized•Finalized

•Debriefing

•Action Plan•Implementation Team Formation•Monthly Follow

Up

Common findings from pilot factories from pilot factories

• Wastage of water- as usage is 15-18% higher than is required

• Data constraints

limited benchmarking of usage patterns limited use of flow meters (gas, water)

• Potential for insulating pipelines, valves

• Potential to replace faulty steam traps

• Potential to replace magnetic ballasts in lighting system

• Potential to standardize the storage and disposal of waste

Potential Areas Of Cost Savings

•Chemical storage &handling improved in allfactories •Spillage management •procedure developed •for 8 factories

•1482 m of different sized •steam and condensate •Pipeline has been insulated•with estimated cumulative •Savings of BDT 51 lakh

•30 steam traps have•been repaired or replaced •with estimated cumulative •Savings of BDT 25 lakh

Sample case: Summary of Recommendations

Mutually agreed upon action plan Recommendation Update as of April 2011 Budget

Allocated BDT

Potential Savings

Benchmarking of Resource Utilization with Respect to Quality & Process of Fabric

Started working. Initially water related losses or leakages. Trying to reduce water use from 350 liter to 250 liters

1,00,000/=

Chemical Storage and Handling Improved infrastructure e.g: fit exhaust fan and maintaining good house keeping

Completed

Lighting, Ventilation and Exhaust Systems Purchased 14 exhaust fans, Working on ventilation. Procure 7 fans and 5 fans will be fitted at the dyeing section, 1 fan at the thermal boiler, 1 fan at the steam boiler

2,45,000/=

Noise Pollution Control already doing it at generator

Air Pollution Monitoring Stack analyzer has been purchased 2,60,000/=

Action plan-continuedWater Flow Meters 4 additional water flow meters are

installed, flow meter installed at WTP and Dyeing floor section

Steam Flow Meters 4 to be purchased into 4 main departments within dyeing department.

Power factor improvement for self generation PFI installed and waiting for the connection to factory supply line. REB PFI installed and pf improved. Operating pf is .81 tp .82 now.

3,40,000 86,666/mon

th

Realized & Pipeline Investments

20

• Already Invested• Power Factor controller,

Ventilation system, Steam-line leakage & insulation etc.

5,961,000BDT

• Pipeline investments planned • Heat Recovery System of Stenter,

Economizer for Boiler and Flow-meters for Water & Steam etc.

9,720,000BDT

Water Savings

21

290 Li./Kg

186 Li./Kg

Water Consumption(Fabric Dyeing only)

March'10 December'10

Overview Of Savings

CP Program-Key areas of savings

94,769

50,000

6,073

2,000

86,449

Mechanical Maintenance

Steam Traps

Condenate Recovery

Cooling Water

Power Factor Improvement

BDT/month USD /month

Mechanical Maintenance 94,769 1,316

Steam Traps 50,000 694

Condenate Recovery 6,073 84

Cooling Water 2,000 28

Power Factor Improvement 86,449 1,201

Synergies and Scale up

• Partnership with local bank to increase exposure on EE lending

• 27 bankers participated in walk-through in participating factory

• 2 day CP training program held for bankers

• Communication strategy to disseminate findings to industry wide audience for scale up

Conference in Copenhagen

“Negotiators cannot do this alone, nor can politicians,the ultimate responsibility rests with the citizens ofthe world, who will ultimately bear the fatalconsequence if we fail to act”

Lars Loekke Rasmussen

Prime Minister of Denmark

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THANK YOU!