Dragon Group

Dragon Group is a group of garment factories and other companies in Bangladesh. The group produces mainly for the international market and exports to more than 30 countries, especially the United States and Canada.[5] Its subsidiary Dragon Sweater employs more than 12,000 workers and in 2018 was the most traded stock on the Dhaka Stock Exchange.[6][7]

Dragon Group
TypeCorporate group
IndustryTextile manufacturing
FoundedJune 16, 1994 (1994-06-16) in Comilla, Bangladesh
Headquarters
Dhaka
,
Bangladesh
Area served
International
ProductsSweaters
Socks
Insurance policies
Life insurances
Number of employees
12,500+[1][2]
SubsidiariesDragon Sweater and Spinning
Dragon Sweater Bangladesh
Imperial Sweater Bangladesh
Perag Socks Industries
Dragon Information Technology & Communication
Apparel Asia Pty
CD Spinning Mills
CD Acrylic Bangladesh
MountSky
Rupali Insurance Company
Sonali Life Insurance Company[3][4]
Websitewww.dsslbd.com
www.dragon-sweater.net

Organisation

Mostafa Golam Quddus, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is the group's chairman.[8] His son, Mostafa Quamrus Sobhan, oversees the day-to-day operations as managing director. His daughter, Fauzia Quamrun Tania, is one of the group's directors.[9]

History

Cheung Hing Sweater was the first Dragon Group sweater factory to be established. It was founded in the 1980s with 50 Chinese technicians, about 300 machines and about 600 employees.

In 2008, 21 directors of Rupali Insurance were fined by the Bangladesh Securities and Exchange Commission (BSEC) for violation of securities law in connection with the company's financial statements for the 2006 business year.[10] In 2015, an inspection of Garment factories including Dragon Sweater found major electrical and structural flaws. Those included cables directly laid on floors without proper safety, insufficient exit capacity through exit doors and the absence of sprinklers.[11]

Dragon Sweater and Spinning's IPO was approved in December 2015,[12] and since the first quarter of 2016 it is listed at the Dhaka and Chittagong Stock Exchanges. A special audit by the BSEC later found that more than half of the money collected in this initial offering had been spent in violation of securities rules,[13] for which the company was fined.[14]

In 2018, the BSEC found that Dragon Sweater had violated securities rules for 2016 and 2017.[15] Later that year, trading of Dragon Sweater stocks was restricted due to abnormal price hikes.[16] The restrictions were lifted after 24 days, with the BSEC saying corporate disclosure and other factors had improved.[17]

In 2019, Mostafa Qamrus Sobhan filed a petition asking for a six-months ban on activities of Nirapon, an alliance formed by international clothing companies to oversee building inspection on the lines of the Bangladesh Accord, at the Bangladesh High Court.[18] According to the petition's lawyer, the aim was to include Nirapon under the common platform of the RMG Sustainability Council.[19] With the ban on activities still active, Nirapon left Bangladesh in 2020, laying off most of its staff, and said it would continue its activities from North America.[20]

In February 2020, the central bank of Bangladesh found that Janata Bank had rescheduled Dragon Group loans without collateral payment, which violated banking regulations.[21]

Like other textile factories in Bangladesh, Dragon Group was hit hard by the coronavirus pandemic.[22] However, by August, Dragon Sweater factories were again "fully booked until the end of September".[23] Between March and May of that year, Dragon Sweater laid off around 500 of its workers. Many of those dismissed had earlier protested for the payment of four months' due wages. Organised by the Bangladesh Garment Workers Trade Union Center, they continued to protest, leading to the signing of an agreement with Dragon Group to pay part of the due wages by November 7. The Group then broke that deal.[24]

References
  1. "About Us". Dragon Sweater Bangladesh. Retrieved 2020-11-22.
  2. "Dragon Sweater and Spinning Ltd Annual Report 2019" (PDF). Dragon Sweater & Spinning Ltd. 2019-06-13. Retrieved 2020-11-21.
  3. "Dragon Group of Companies". Dragon Sweater Bangladesh. Retrieved 2020-11-22.
  4. "Group Companies". Dragon Sweater and Spinning. Retrieved 2020-11-22.
  5. Mirdha, Refayet Ullah (2020-06-11). "Exports to Canada grew 15pc in 2019". The Daily Star. Retrieved 2020-12-03.
  6. "Low performers top DSE gainers' list". The Daily Star. 2018-12-05. Retrieved 2020-12-03.
  7. "Dragon Sweater leads turnover, gainer charts". The Financial Express. 2019-01-17. Retrieved 2020-11-22.
  8. "Rupali Insurance re-elects chairman". The Daily Star. 2019-07-14. Retrieved 2020-12-03.
  9. "Dragon Group of Companies. Management". Dragon Sweater. Retrieved 2020-10-20.
  10. "30 directors of 3 listed firms fined Tk60 lakh". The Daily Star. 2008-10-14. Retrieved 2020-11-22.
  11. Mirdha, Refayet Ullah; Rahman, Mohammed Fazlur (2015-12-08). "Major flaws in 10 garment factories". The Daily Star. Retrieved 2020-11-21.
  12. "Dragon Sweater gets go-ahead for IPO". The Daily Star. 2015-12-08. Retrieved 2020-11-21.
  13. Murtuza, HM (2017-06-11). "Dragon Sweater breaches rules in IPO fund utilisation: spl audit". New Age. Retrieved 2020-11-22.
  14. "BSEC fines Dragon Sweater Tk 30 lakh for rules breach". New Age. 2018-01-09. Retrieved 2020-11-22.
  15. Niaz, Mahmud (2018-04-18). "11 companies attend BSEC hearings over violations, five seek time extension". Dhaka Tribune. Retrieved 2020-11-22.
  16. "Regulator suspends trading of three stocks". The Daily Star. 2018-08-19. Retrieved 2020-11-22.
  17. "Dragon Sweater trading resumes in public market today". The Financial Express. 2018-09-09. Retrieved 2020-11-22.
  18. "Foreign RMG brand alliance Nirapon banned for 6 months". Dhaka Tribune. 2019-10-23. Retrieved 2020-11-22.
  19. "High Court imposes ban on Nirapon for 6 months". New Age. 2019-10-24. Retrieved 2020-11-22.
  20. Karim, Rezaul (2020-06-07). "Nirapon is leaving Bangladesh". The Business Standard. Retrieved 2020-11-22.
  21. "JB asked to explain legality of Tk 1,974cr loan rescheduling". New Age. 2020-02-10. Retrieved 2020-11-22.
  22. Mirdha, Refayet Ullah (2020-03-27). "BGMEA asks members to consider shutdown of factories". The Daily Star. Retrieved 2020-11-24.
  23. Mirdha, Refayet Ullah (2020-07-06). "There will be rebound of apparel shipment to US. But it will be slow and steady". The Daily Star. Retrieved 2020-12-03.
  24. "Sacked workers of Bangladesh's Dragon Sweater gave up half their pay. Now employers breach deal". bdnews24.com. 2020-11-20. Retrieved 2020-11-24.
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