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Study for Backward Integration of Garment Manufacturing Business

Wazir after doing a thorough analysis of the market, regulations, and competition, a final report was delivered. The report had recommendations for the business with respect to fabric type, emerging trends, and the overall existing and potential competition.

Project Background The client is a family-owned company located in Honduras. Founded in 1920 as a small factory producing shorts, work pants and male undergarments, the group has diversified into other industries such as real estate, telecommunications, energy, etc. The client is seeking to backward integrate its garment manufacturing business, by including one or multiple of: dyeing and finishing of fabrics, weaving of fabrics, yarn dyeing and yarn spinning. For this, the client, with support from IFC, approached Wazir Advisors to evaluate market, regulatory, and competitive assessment for backward integration.
Scope of Work
  1. Market Study
    • Internal and external demand analysis
    • Mapping raw material prices, suppliers, requirement, and availability
  2. Regulatory Study
    • Analysis of trade regulations like: CAFTA, EU-Central America Free Trade Agreement, HUGE, Partnership for Central America
  3. Competitive Assessment
    • Current product range, supply chain, technology in Central America
    • Price Benchmarking, analysis of import parity, logistics costs, and landed cost of garments
  4. Final Recommendations
    • Fabric type, emerging trends, availability & cost of raw material
    • Existing and potential competition
Result Delivered Wazir delivered a final report covering market study, demand analysis, competitor mapping, trade regulations analysis, and recommendations.