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While an informal recycling sector has sprung up to deal with the scraps of leftover jeans and T-shirts churned out by the country's 4,500 garment factories, it produces only low-value products for domestic consumption.
But one Bangladeshi entrepreneur has found a new, more lucrative way of dealing with the estimated 100,000 tonnes of scrap fabric the garment sector produces each year: making rag-rugs for export.
"The rags produced by the garment factories are seen as worthless waste but I saw that they could be a way to build a business -- then Kik picked up my products and everything started to take off," Tauhid Bin Salam told AFP.
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Tauhid set up his company, Classical Handmade Products Bangladesh, in 2008 and has now built it into a successful business with an annual turnover of 80 million taka (1.2 million dollars) and a workforce of 530, mostly women.
Tauhid's first buyer, German company Kik Textilien, is one of Europe's largest textile discounters with a presence in six Euro