DIRD Composite Textiles Limited
Regional & Industry Context
Bangladesh
High RiskThis is the context that this factory operates in. The factory’s own rating is in Overall Assessment below.
Bangladesh's garment sector carries elevated inherent risk across labor and health & safety dimensions due to documented enforcement gaps, high worker density, and historical incidents. Environmental risk is moderate. Business ethics risk reflects governance challenges and corruption indices. These are structural factors that exist independent of any specific factory's performance.
Company Profile
What we found about this company
DIRD Composite Textiles Limited is a large-scale garment manufacturer operating in the Dhaka Region industrial zone of Bangladesh, with approximately 8,000 workers. The company is a subsidiary of DIRD Group, which operates multiple garment facilities across Bangladesh. The company is a registered member of BGMEA (Bangladesh Garment Manufacturers and Exporters Association). DIRD Group has faced significant operational challenges, including indefinite closure of four garment factories in 2022 following worker strikes over unpaid wages.
Verification Links
* Extracted from public sources only.
Overall Assessment
High RiskHigh — 8 of 14 dimensions flagged
DIRD Composite Textiles Limited faces severe operational and financial distress with multiple credible reports of unpaid wages totaling Tk 7 crore despite receiving government loan assistance. Worker protests have occurred at public intersections demanding payment, and government authorities have served formal enforcement notices. The parent company DIRD Group has announced indefinite closure of garment factories following worker strikes.
Findings by Category
| Category | Rating | Summary |
|---|---|---|
| Labor & Human Rights | HIGH | Multiple credible sources report ongoing worker protests over unpaid wages [4][6][9][11]. The company failed to pay Tk 7 crore in employee dues despite receiving government loan assistance, with workers and officials protesting at public intersections demanding payment. |
| Financial Distress | HIGH | Clear evidence of severe financial distress with failure to pay employee wages despite receiving government loan assistance [4]. The company was unable to meet basic payroll obligations totaling Tk 7 crore even after receiving Tk 13 crore in government-facilitated loans. |
| Legal & Regulatory | HIGH | Government authorities have taken formal enforcement action by serving a show-cause notice for failing to clear due wages [16]. This represents direct regulatory intervention due to the company's failure to meet legal obligations to workers. |
| Reputational | HIGH | Multiple negative media reports about unpaid wages and worker protests [4][6][9][16] create significant reputational risk. Coverage in major outlets like The Daily Star, The Financial Express, and international human rights organizations has documented the company's failure to pay workers. |
| Operational Continuity | HIGH | Serious operational continuity concerns due to unpaid wages, worker protests, and parent company's announcement of indefinite factory closures [7][11][21]. The combination of financial distress, labor unrest, and group-level operational shutdowns creates severe continuity risks. |
| Business Ethics | MEDIUM | The company did not respond to Business and Human Rights Resource Centre inquiries [1][3], indicating transparency concerns. While non-response alone is not evidence of harm, it demonstrates poor stakeholder engagement practices during a period of significant labor disputes. |
| Community & Stakeholder Relations | MEDIUM | Worker protests at public intersections [6] indicate community-level disruption due to labor disputes. Such protests demonstrate that internal labor issues have spilled into public spaces, affecting local community relations and stakeholder confidence. |
| Local Compliance Environment | MEDIUM | Bangladesh's Department of Inspection for Factories and Establishments (DIFE) has limited inspection capacity relative to the number of registered garment factories. While the International Accord and BGMEA provide supplementary oversight, government enforcement of labor and safety regulations remains inconsistent across the Dhaka industrial corridor. |
| Health & Safety | LOW | An electrical safety inspection report from 2014 was identified [10], but no recent health and safety violations or incidents specific to this facility were found in the available evidence. |
| Environmental | LOW | General reporting about pollution issues in the Dhaka Region area [18], but no specific environmental violations attributed to DIRD Composite Textiles were identified. Company sustainability documentation indicates environmental awareness initiatives. |
| Sanctions & Associations | LOW | No sanctions matches found across 329 datasets. The parent company DIRD Group has announced indefinite factory closures and faced labor disputes, but no ties to sanctioned entities, politically exposed persons, or blacklisted individuals were identified. |
| Supply Chain Transparency | LOW | No evidence of unauthorized subcontracting, production capacity mismatches, or undisclosed supplier relationships was identified. The facility operates as a direct manufacturer under the DIRD Group group with documented BGMEA membership. |
| Product Safety | LOW | No product recalls, quality failures, or banned substance findings identified in available sources for this facility. |
| Infrastructure & Logistics | LOW | The Dhaka Region industrial zone has adequate road and port connectivity. Chittagong port, the primary export gateway, has experienced periodic congestion but no major disruptions affecting this facility were identified during the review period. |
Low No credible facility-specific issues. Clean results, positive certifications, or only routine business activity.
Medium Related but not confirmed, or confirmed but indirect to this facility (e.g. parent company, peer facility, sector, or regional context, unverified allegations).
High Confirmed issues directly involving this facility or its company (e.g. sanctions, documented wage theft, fines, worker incidents, formal complaints).
Detailed Findings
Labor & Human Rights
HIGHFailure to pay Tk 7 crore in employee wages despite government loan
Facility2025-01DIRD Composite Textiles failed to pay Tk 7 crore in employee dues despite receiving a Tk 13 crore loan facilitated by the Ministry of Labor and Employment.
Worker protests over unpaid wages at public intersections
Facility2025-01Workers and employees protested at the Rajendrapur intersection in Dhaka Region demanding unpaid wages, with deputy manager reporting family living in dire conditions due to unpaid wages and benefits.
Financial Distress
HIGHFailed to pay wages despite receiving government loan assistance
Facility2025-01Company failed to pay Tk 7 crore in employee dues despite receiving a Tk 13 crore loan facilitated by the Ministry of Labor and Employment, indicating severe cash flow problems.
Legal & Regulatory
HIGHGovernment show-cause notice for failing to clear due wages
Facility2025-01The Department of Inspection served DIRD Composite Textiles with a show-cause notice for failing to clear due wages, representing formal government enforcement action.
Reputational
HIGHWidespread negative media coverage of unpaid wages
Facility2025-01Multiple major news outlets have reported on the company's failure to pay wages, worker protests, and government enforcement actions, creating significant reputational damage.
Operational Continuity
HIGHWorker protests and unpaid wages disrupting operations
Facility2025-01Ongoing worker protests over Tk 7 crore in unpaid wages are disrupting normal operations and creating labor instability.
Parent company announced indefinite closure of group factories
Parent Company2022DIRD Group announced indefinite closure of 4 garment factories following decline in orders and worker strikes demanding unpaid wages, affecting thousands of workers.
Business Ethics
MEDIUMNon-response to Business and Human Rights Resource Centre
FacilityDIRD Composite Textiles (part of DIRD Group) did not respond to inquiries from the Business and Human Rights Resource Centre regarding labor practices and wage payment failures.
Community & Stakeholder Relations
MEDIUMWorker protests at public intersections disrupting local community
Facility2025-01Workers and employees protested at the Rajendrapur intersection in Dhaka Region, bringing internal labor disputes into public community spaces and disrupting local traffic and commerce.
Local Compliance Environment
MEDIUMLimited government inspection capacity in the garment sector
Country/ZoneBangladesh has approximately 300 labor inspectors for over 4,000 registered garment factories. DIFE inspection frequency varies significantly by district, with Dhaka Region factories receiving less regular oversight than Dhaka city facilities. The International Accord provides supplementary safety inspections but does not cover labor rights enforcement.
Health & Safety
LOWHistorical electrical safety inspection conducted
Facility2014Electrical safety inspection report available from April 2014 covering DIRD Composite Textiles Limited and related facilities.
Environmental
LOWGeneral Dhaka Region area pollution enforcement
Country/Zone2014Four washing and dyeing factories in Dhaka Region were sealed and fined for pollution, but DIRD Composite Textiles was not specifically named.
Global Sanctions & Watchlist Screening
NO MATCHESNo matches found for DIRD Composite Textiles Limited or known aliases across 329 global sanctions, watchlist, and enforcement datasets.
Screened against 329 datasets including:
Sources(14)
- [1]DIRD Composite Textiles (part of DIRD Group) did not respond - Business and Human Rights Centre
- [2]Garment worker tragedies: we need to move beyond auditing and address the root cause | Chowdhury Center
- [3]DIRD Composite Textiles (part of DIRD Group) did not respond - Business & Human Rights Resource Centre
- [4]DIRD Composite Textiles fails to pay salaries despite receiving Tk 13 crore loan | The Daily Star
- [5]Business & Human Rights Resource Centre
- [6]Bangladesh: Thousands of garment workers lose jobs after DIRD Group announces indefinite closure
- [7]RMG workers protest, demand payment of outstanding wages | The Business Standard
- [8]Electrical safety inspection report - DIRD Composite Textiles Limited
- [9]BGMEA Member Details: DIRD Composite Textiles Limited
- [10]DIRD Composite Textiles Limited Supplier Report | Panjiva
- [11]DIRD Composite Textiles served show-cause notice for failing to clear due wages | The Financial Express
- [12]Bangladesh: 4 Factories in Dhaka Region Sealed Off, Fined for Pollution | WWD
- [13]4 RMG factories of DIRD Group announced closed indefinitely | The Business Standard
- [14]ILO Better Work Bangladesh
Limitations & Methodology
This report is based on publicly available web sources including news articles, NGO reports, government enforcement databases, corporate registries, and hundreds of sanctions/watchlist datasets. Absence of findings does not guarantee absence of risk. It reflects the current state of publicly available information as of the scan date. On-site audits and direct supplier engagement are recommended to complement open-source screening.
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