Team Group on track to become a billion-dollar firm

Following the sudden demise of its founder and previous managing director Abdullah Hil Rakib, Team Group is moving ahead with renewed determination to realise his vision of becoming a billion-dollar company, said the group's newly appointed Managing Director, Dr Afroza Shahin.

In an interview with The Financial Express on Sunday at her office in the capital's Uttara, Dr Shahin said, "Rakib did not just dream; he taught us how to realise those dreams. We believe Team Group will achieve the $1 billion annual turnover he envisioned by 2030."

Initially, the group had set a bold target to reach a $1 billion turnover by 2028, but the time frame was extended to 2030 due to the Covid-19 pandemic.

It is relying on its skilled workforce, long-standing relationships with buyers, and strong product quality to sustain growth and honour Rakib's legacy.

Smooth transition in leadership

Rakib's untimely death cast a shadow of grief over the organisation. However, the strong foundation he built enabled a smooth transition in leadership.

"I assumed the role with full support from Deputy Managing Director Abdullah Hil Nakib [Rakib's elder brother] and our entire family," said Dr Shahin.

"Within the first week of taking on my new role, I met with leaders across all units. Everyone expressed a shared commitment to carrying forward Rakib's vision."

She noted that while Team Group will follow Rakib's strategic direction, it would also modernise and adapt to evolving business realities.

"Dada [Abdullah Hil Nakib] is taking care of all day-to-day issues while I am abroad, and I stay connected with him and other top executives 24/7."

Diversified business portfolio

Team Group, originally focused on readymade garment (RMG), now operates in five sectors - RMG, pharmaceuticals, IT, real estate, and retail.

"Each sector has its own board and operational team. Like Rakib, I coordinate among them and lead strategic decisions at the group level," she explained.

"Our ERP and MIS platforms help us operate in an integrated and transparent way."

With around 24,000 employees, the group generates an impressive annual turnover of approximately $750 million - $315 million from apparel manufacturing and $430 million from trading.

Over 100 factories collaborate with Team Manufacturing Company Ltd, formerly Team Sourcing.

"We are working on expanding into retail markets in Latin America and Europe," Dr Shahin said.

Team Group's own lifestyle brand, Twelve, has a growing presence in both Bangladesh and the United States.

"We aim to open outlets in every district of Bangladesh and expand to multiple cities in the US and Canada," she added.

In the pharmaceuticals sector, the group is in the process of acquiring land for a new production facility to boost capacity.

"We want to balance our production portfolio beyond RMG by strengthening our other business units," Dr Shahin noted.

Embracing technology and innovation

She said the group's in-house IT company has developed a digital ecosystem, which includes end-to-end ERP system, decision support system, performance-based assessment tools, digital operational models, and end-to-end supply chain tracking.

"The group also has developed a quality monitoring system (QMS) for apparel production, significantly improving operational efficiency and enabling real-time insights into RMG production and quality.

"Previously, productivity was assessed manually. With QMS, sewing quality can now be monitored remotely, which will help motivate workers, as well as identify the root cause of defects, training needs, and management efficiency needs," she added.

"The IT concern of the group has successfully rolled out the solution called Nidle, an IoT-based automated production tracking system which solves critical RMG production related challenges, such as In-line bottleneck identification, non-productive time identification, and line balancing prescription, which enhances the efficiency of overall productivity," she also said.

Additionally, the company has developed an IoT-based device to monitor factory waste water management in collaboration with the government, demonstrating its commitment to innovation and sustainability.

Team Group is also deploying artificial intelligence-driven solutions and cloud platforms across operations, particularly in retail.

"Technology is now the foundation of our future strategy," said Dr Shahin.

Strategy for stability and Rakib's enduring legacy

"Rakib was a visionary and inspiring leader," said Dr Shahin.

"We are preserving his people-first philosophy and his values of sustainable development. At the same time, I am introducing innovative ideas to take Team Group to the next level."

Given its presence in multiple sectors, Team Group has implemented strong risk management practices.

"We conduct individual risk assessments for each unit and perform financial stress tests. We also maintain a multi-channel financing structure," she explained.

To reduce costs amid rising interest rates, the company is exploring low-cost, long-term foreign financing options. However, Dr Shahin noted that Team Group's long-term debt remains relatively low.

Sustainability and energy efficiency

The RMG industry of Bangladesh in the last few decades transformed into a new reality where sustainability in terms of environmental, social, and transparency came at the forefront of the priority to create a new narrative of the industry, and TEAM group is one of the jewels of the crown.

With the unique selling proposition of Infusing life - Championing Sustainability, out-of-business and closed factories, with the magical touch of Team Group, have been transformed into LEED-certified green factories with all sorts of state-of-the-art technologies and facilities.

One of the group's subsidiaries, 4A Yarn Dyeing Limited, is the first outerwear manufacturing company in the world that joined the Fashion Industry Charter for Climate Action of the United Nations Framework Convention on Climate Change (UNFCCC) with a specific commitment to achieve net zero emission by 2050.

"Though 4A Yarn does not use any chemical or water in the process, we have a rainwater harvesting system that yields nearly 450,000 litres of water," Dr Shahin said.

"We have all the state-of-the-art facilities for our workers, including, but not limited to, fair price shop, medical centre, free medicine, maintaining thermal comfort for workers, indoor air quality (IAQ) maintained by ASHRAE standard, safe drinking water, hygiene, transport facilities, etc.

"Our employees are our greatest assets. I want them to know they are the future of Team Group. To our partners and stakeholders, I say - we are moving forward with transparency, accountability, and a firm commitment to sustainable growth," Dr Shahin emphasised.

Under Rakib's leadership, Team Group developed a sustainability framework, aligning with the sustainability vision of thriving as a sustainable and smart company of the world, by creating a win-win situation for workers, buyers, consumers, and all the partners across the value chain and growing together by keeping harmony with nature.

US tariff concerns

Commenting on recent discussions on US reciprocal tariffs, Dr Shahin said, "Only 7 per cent of our exports go to the US, but any significant change in US tariffs could impact Bangladesh's overall export competitiveness."

She urged the government to take proactive diplomatic steps to ensure Bangladesh maintains a level playing field in the global market.

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