Weaving a Legacy of Innovation: The NR Group Story

In a world where threads of heritage and modernity intersect, NR Group emerges as a vibrant tapestry of Bangladeshi excellence.

August 16th, 2023

Written by FibreTrace®

Bangladeshi textiles manufacturer, NR Group, started from humble beginnings. Once the venture of a lone yarn wholesaler, the multi-generation, family-owned operation now comprises 23 affiliated companies, with a workforce of over 25,000 employees across Bangladesh, India, China and Sri Lanka. The company’s textile solutions span spinning, knitting and dyeing to apparel making — and thanks to a chance encounter with a carpenter with the right connections, will be taking the next step to apply FibreTrace technology across its supply chain.

Director Arif — grandson of that humble yarn wholesaler — speaks to FibreTrace about legacy, innovation and the key values that will move the textiles industry in Bangladesh forward.

FibreTrace: NR Group is a family-owned operation, and honourably names its mission ‘to support the nation’s development and welfare by adding value to GDP through the production of high-quality textile products.’ Could you please share a bit about the family that owns NR Group, and why it feels so strongly about contributing to Bangladesh in this way?

Arifur Rahman: The company was established in 1965 by my grandfather, who worked as a yarn wholesaler. Initially, our operations were quite basic, but he managed to maintain excellent relationships with everyone he dealt with. Later, my father took the reins with a fresh new vision. He ventured abroad, returning with new ideas that would transform the business.

As he expanded into the garment industry, he recognised the profound impact of community support. We emerged as one of the pioneering factories to venture into exports in the late eighties, and our approach to employment and our treatment of employees set us apart from other factories. This led to a strong reputation; many wanted to work with us because of our positive corporate culture.

This ethos became a core value of NR Group. Our employees are integral members of our extended family. This is not merely a phrase; it serves as a reminder that we were once in their shoes. Through a combination of hard work and fortunate circumstances, we now have the ability to provide support to others.

In the late eighties and mid-nineties, we continued to support our community. However, as Bangladesh became a major textile exporter, ranking just behind China, we asked ourselves: 'What's our next step?' The answer was clear. We aspired to make an impact substantial enough to contribute to the nation's GDP."

FibreTrace: Your company values — community responsibility, premium quality, sustainability and environmental protection, integrity and trust — hold leadership to a standard of civil responsibility that most would not concern themselves with. Why are these the values of NR Group?

Arifur Rahman: As I mentioned earlier, we believe in the importance of community responsibility. We recognise our resources and think it's our duty to utilise them thoughtfully. While financial success is significant, it becomes meaningful only when accompanied by a strong community. This is why community engagement is a core aspect of our identity. Giving back to the community is not just an option but a necessity, as our existence thrives on their support.

Our commitment has always been to provide premium quality. In the Bangladesh market, we charge higher prices because we are committed to doing things correctly. Until today, people continue to rely on us and choose us because of our reputation for honesty. We maintain exceptional quality standards, ensuring products leave our factory with minimal issues. Though occasional quality challenges arise, we consistently achieve an impressive clearance rate of 85% and above. This reliability builds a foundation of trust, reassuring customers that their expectations will be met.

While many retailers and brands follow market trends, we approach sustainability from a manufacturer's view, focusing on overall efficiency. The current emphasis on ESG and recycled cotton is crucial, but we delve deeper. Sustainability is more than just adopting recycled materials; it's about ensuring real environmental impact. For instance, we avoid using 100% recyclable cotton due to the counterproductive effects on production processes. Our approach stands against 'greenwashing'; we are transparent about what truly benefits the environment and community.

Also, in terms of sustainability, since 2018, just before COVID began, we began significant machinery upgrades, including transforming around 70 per cent of our dye house operations. Unlike traditional dye houses that rely on standard dyes, which often result in contaminating water resources, we've transitioned to the CPB (cold pad batch) dyeing methodology. This change has reduced water consumption by 70 per cent. We've also elevated our water treatment processes, driven by the belief that Bangladeshi standards were inadequate. International benchmarks from the UK and Australia guide our efforts to achieve higher levels of sustainability.

As anticipated, integrity and trust are integral to our business and family values. Passed down from my grandfather and father, we understand that our word is a binding commitment. It's like squeezing out toothpaste – once released, it cannot be put back. While it might appear childish, it holds a significant meaning. We prioritise transparency and communicate openly about what we can or cannot accomplish. Upholding our promises is crucial because losing trust is irreversible. This principle guides our customer relationships, emphasising that their trust is more valuable than money.

Image courtesy of NR Group

FibreTrace: As part of NR Group’s vision, investing in state of the art technology and enhancements in production is a priority; even more so now, with your partnership with FibreTrace. What was your primary motivation for pursuing this partnership?

Arifur Rahman: In the garment industry, you don't often find the same excitement as in the IT sector when it comes to innovation. But we've always had that itch to explore, to ask ourselves, 'What's the next big thing for us?' You see, for our industry, traceability was a real puzzle. You could buy certificates claiming cotton was organic, but proving its journey through the right supply chains was a different story.

Funny thing, I was on the phone discussing a cotton contract while overseeing the construction of a house. Just then, the carpenter on a lunch break said, 'Heard you were talking about cotton.' I nodded, 'Yeah, we dabble in the cotton business.' His response? 'Why not come for a bike ride?' Now, what's the worst that could happen? I end up in a ditch, right? So, off I hopped onto his bike, and we cruised through the remote outback of New South Wales, clueless and disconnected. The next thing I knew, we were at the gate of a cotton farmer.

So, here we were at this farmer's cotton farm. He had this shirt on; believe it or not, he could physically trace its fabric. He logged into his computer, showing me the fabric's journey through Vietnam, shipping lines, and more. I thought, 'Maybe he's just spinning a yarn.' But he challenged me, 'Okay, ship a batch of samples, log it all in, and let's catch up in a month or two.' So, we took on the challenge.

We shipped cotton, tested everything, and, surprise – it worked out. We had stumbled upon the perfect solution we'd been hunting for, solving our own problems and those faced by retailers. That's when Mr Rahman, our Managing Director, would say, 'Go big or go home.' Usually, the largest order a single person made was around 500 tonnes. We took a leap and bought a whopping 8,000 tonnes, basically half the farmer's crop. David Statham, a fourth or fifth-generation farmer, hit it off with us. 'Let's support each other,' he said. 'You did the right thing. Let's move this ahead.' And that's how it all clicked into place.

FibreTrace: NR Group has stated that ‘everything we do is guided by the purpose of leaving our place better than we found it.’ After many decades being guided by that principle, what is a lesson you would wish to pass on to other businesses or organisations wishing to develop more sustainable practices?

Arifur Rahman: In the retail industry, suppliers are pitted against each other like boxers in a ring. If I had to pass on some understanding, it's this: trust and relationships are the secret sauce that propels an industry forward. Imagine if we all had that trust, even while competing – we'd be leaving China in the dust without breaking a sweat. Similar story in Turkey. They cracked the code by building trust among themselves. The only thing holding them back from beating China is the size of their garment industry. If we adopted those principles here, embracing trust and integrity amidst competition, we'd easily nab the world's top garment exporter title.

Trust and integrity represent the only way to get you as far as you can. If you want to go fast, you go alone. If you want to go far, you go together.

*Conversation has been edited down for clarity and length.


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