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“Those who could not find a job until now are waiting to join Beximco Textile as there is a possibility of the factories reopening,” he said, adding that the conglomerate has been trying to resume operations.
However, he said the group’s efforts have failed to bear fruit as banks are refusing to open Letters of Credit (LCs) without a 100 percent cash margin, which “is not possible” for Beximco due to the company’s weak financial condition.
Consequently, machinery that once produced $350 million worth of garments a year now sits unused at the industrial park.
The government is expected to take the initiative to reopen the factories at the Beximco park. The Advisory Council Committee formed to review the labour and business situation of industrial establishments in the Beximco Industrial Park is slated to meet today on the matter.
The meeting will review the preliminary reports submitted by the Directorate of Labour regarding the wage-related issues of the workers and employees of BHIS Apparels Ltd, Seasons Dresses Ltd, and Paradise Cables Ltd, according to a labour ministry circular.
It will also discuss the progress of government-approved interest-free loan facilities for various factories affected earlier.
“Beximco Group is ready to operate if the government facilitates and allows repayment of the loan from the earnings,” said Shahrior.
Beximco is not the only entity in dire straits. Gazi Group suffered losses exceeding Tk 2,000 crore after its tyre and pipe factories in Rupganj were destroyed by fire and vandalism during and after the uprising.
“The factories, which once employed 1,800 workers, now employ just 150,” said Executive Director Muhammad Fakhrul Islam.
He is, however, hopeful that the closed factories may be reopened within five to six months as they are working with banks to reschedule loans.
Bengal Group of Industries, another conglomerate, suffered more than Tk 800 crore in losses after two plastic units were completely burnt in August 2024. More than 1,200 workers were employed in the affected industrial units of the group.
“The company became bankrupt as production was stopped, and a few units of the group are running at 50 percent capacity,” said the group’s vice-chairman, Md Jashim Uddin.
He said the banks are not supporting the reopening, and insurance payments are being delayed.
Uddin said he met government advisers and central bank high-ups seeking facilities for reopening the factories, but the process is still being delayed.
When asked about the reopening of closed factories, Brig Gen (retd) M Sakhawat Hussain, adviser to the Ministry of Labour and Employment, said the companies had not approached him about the reopening.
“If any company comes to me, I will look into it,” the adviser told The Daily Star over the phone without further elaboration.
Nearly 100 factories, mostly garment units, were burnt and vandalised amid the political turmoil following the fall of the Sheikh Hasina government last August, according to Industrial Police data and sources. Many owners were jailed or went into hiding, leaving factories in legal and financial limbo.
BKMEA’s Hatem said the affected manufacturers and leaders of trade bodies met government advisers and the central bank governor several times to facilitate the reopening of the closed factories, but it has not been effective so far.
He added that the issue is scheduled to be discussed at today’s meeting at the labour ministry.
Weak stocks
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“But in reality, asset management companies are the real institutional investors who dominate equity markets in most countries,” said the DBA president.
He said that the mutual fund industry in Bangladesh never took off, leaving the market dominated by small, retail players and syndicates of individual investors.
“Had the mutual fund industry been functional, it could have balanced the mismatch between strong and weak stocks,” he said.
“What we are seeing now is that small-cap, low-performing companies are being targeted by groups of individual investors because their shares are limited and easy to manipulate,” he commented.
The DBA president said the regulator must increase the supply of quality shares and delist zombie companies that fail to pay dividends or remain closed for years.
“Reform is always painful. Surgery cannot be painless, but it is necessary for your health to survive,” he said, calling for stricter enforcement to clean up the market.