Bhairab's shoemakers are advancing towards growth despite facing challenges

The footwear industry in Bhairab Upazila, located in Kishoreganj district, is experiencing growth despite facing several challenges. The region, renowned for its skilled artisans, is home to “Paduka Palli,” a hub that contains around 4,000 factories. These factories produce a variety of products, including shoes, sandals, trainers, and belts, utilizing raw materials sourced both locally and internationally, from countries like China and Taiwan.

The industry provides substantial employment, creating approximately 25,000 jobs, particularly in production, design, and distribution, thus contributing to the local economy. The traditional craftsmanship, passed down through generations, is often blended with modern techniques, enabling the workers to produce cost-effective, competitive products.

Though demand for Bhairab’s footwear is strong both domestically and internationally due to its affordability, the industry faces challenges such as a shortage of skilled labor and limited access to affordable financing. In recent years, modernization efforts have focused on quality control, product innovation, and expanding into international markets.

With support from initiatives like the SME Foundation, Bhairab’s footwear industry is set to grow even further, benefiting both the local and national economy. The industry’s annual sales reach around Tk2,000 crore, and it has been a driving force behind the transformation of Bhairab’s economy.

The region enjoys excellent connectivity, with well-established road, river, and rail links to Dhaka, Chattogram, and other key areas. Md Murshid Mia, an entrepreneur with Jhinuk Footwear, shared that he started his business with Tk30,000 and now generates monthly sales of Tk4-5 lakh, employing 12-14 workers and producing 8-10 dozen shoes daily.

However, local entrepreneurs face hurdles when it comes to securing loans. High interest rates and complicated processes are often limiting their ability to expand. Murshid, for example, took out a loan at 12% interest and suggested that a lower rate of 6-7% would make running the business easier.

Md Al-Amin Mia, president of the Bhairab Footwear Factory Owners’ Association, noted the industry’s evolution since his business started in 1998. He highlighted the need for a common facility center (CFC) to help with knowledge sharing, skill development, and affordable access to modern machinery. Despite growth, the industry’s potential for export remains constrained due to limited machinery.

The thriving sector has encouraged many to start their own businesses, generating jobs across the region. For example, Shamsul Haque, who started a shoe box factory, transitioned from a job at Chattogram port and now runs his own small business. Similarly, workers like Zakir Hossain, who learned the craft from his father, continue to support their families through the industry.

Young entrepreneurs like Md Ershad Ali Akash, who started Lace Footwear in 2016 after gaining experience in a leading shoe factory, have seen significant growth. His factory, initially with five workers and an investment of Tk6 lakh, now employs 250-300 people with an annual turnover of Tk8 crore. He credits training from the SME Foundation for his success.

Anwar Hossain Chowdhury, managing director of the SME Foundation, emphasized the foundation’s role in offering training, technical knowledge, and loans to Bhairab’s entrepreneurs. This year, the foundation aims to provide Tk450 crore in loans to SMEs through various banks and financial institutions at an interest rate of 4%. Additionally, a CFC will be established to meet the sector’s demands.

Since 2015, the SME Foundation has supported Bhairab’s footwear sector with training programs focused on business management, product diversification, safety, and compliance. These efforts have allowed entrepreneurs to expand their product range, including oxford shoes, wallets, belts, and key rings. The foundation has also provided nearly Tk3 crore in loans to around 40 entrepreneurs in the area through its Credit Wholesaling Programme.