TAM-Meghna venture kicks off, eyes half of Bangladesh's $400m hanger market

A Turkish-Bangladesh joint venture has begun commercial production of plastic garment hangers, targeting a slice of a market estimated at $300-$400 million.

The factory – set up by Turkey's TAM Hangers and local conglomerate Meghna Group – was formally launched at Mirzapur in Tangail today (4 May), with top executives from both sides in attendance.

"We want to capture 50% of this market within the next 10 years," said Gökhan Tezsezer, chairman of TAM Hangers, speaking to The Business Standard at the factory premises. "Given our strong customer base in Europe, we believe this is achievable."

He described Bangladesh as a compelling destination for expansion, citing its large garment volumes and competitive labour costs. "It's a very attractive business environment for a company like ours," he said, noting TAM's existing manufacturing presence in China, India, Turkey, the UK and Germany.

The venture – Tam Hangers Bangladesh Limited – is structured with a 51% stake held by TAM and 49% by Meghna. The partners have already invested around $10 million (Tk122 crore) and kicked off operations with 16 injection moulding machines.

"We plan to scale this up to at least 100 machines within five years, with total investment reaching $30-$40 million," Tezsezer said.

We want to capture 50% of this market within the next 10 years. Given our strong customer base in Europe, we believe this is achievable.

Gökhan Tezsezer, chairman of TAM Hangers

TAM has been supplying hangers to Bangladesh for over three decades through licensee partners and by routing reused hangers from Europe via Sri Lanka. But rapid growth in the local apparel sector and the need for faster, on-ground service prompted the company to establish its own manufacturing base.

"Bangladesh is the second-largest garment exporter in the world. The potential here is significant," Tezsezer said, adding that Meghna Group was the perfect choice for the business.

A key part of TAM's business model revolves around reuse and recycling, driven by the sustainability requirements of global brands such as Marks & Spencer and H&M. The company collects used plastic hangers after garments are sold, sorts them, and reintroduces them into the supply chain.

Currently, this recycling operation is centred in Sri Lanka, employing around 1,500 workers. However, Tezsezer said Bangladesh would be a more logical base for such activities, given its scale of garment production.

"Global buyers want minimal plastic waste, and hangers are a major component. Ideally, we should be doing this reuse operation in Bangladesh," he said.

But regulatory constraints remain a major hurdle. Bangladesh does not currently allow duty-free import of used hangers for recycling, an issue Tezsezer says is compounded by bureaucratic complexity.

"In Sri Lanka, we operate in free zones where we can import hangers duty-free, sort them, and re-export across Asia," he said. "We would like to do the same in Bangladesh, but the current restrictions make it difficult."

If such barriers were removed, TAM could significantly expand its local operations, potentially employing up to 4,000 workers in hanger sorting alone, he added.

The absence of such facilities in Bangladesh also increases costs. "Right now, we sort in Sri Lanka and then ship the hangers back to Bangladesh. That adds extra logistics costs," Tezsezer said.

He argued that enabling recycling operations locally would not only cut costs but also position Bangladesh as a regional hub. "We could supply directly to local manufacturers and export recycled hangers to India, Sri Lanka and even China."

Mizanur Rahman, chairman of Meghna Group, said the partnership with TAM, a globally recognised hanger manufacturer, would bring technology transfer, create jobs and support Bangladesh's export ecosystem.

Meanwhile, Mohammad Ali Kawser, general manager of Tam Hangers Bangladesh, said the company expects to export hangers worth $1.5 million per month initially, with volumes set to grow alongside future investments.

Founded in 1972 by Engin Tezsezer, TAM Hangers is a family-owned Turkish company with operations spanning multiple continents, supplying hanger solutions to leading global apparel brands.