Nafa Apparels Limited, a concern of the Palmal Group, is a knit garment manufacturer in Gazipur employing more than 2,700 workers. Prior to this project, the factory had already demonstrated its commitment to energy efficiency by gradually replacing around 500 conventional clutch motors with energy-efficient servo motors over a five-year period using its own resources. However, competing operational and investment priorities meant that replacing the remaining 750 motors would likely require another five years. Through support from the InSPIRE Challenge Fund, Nafa was able to complete the retrofit at once, accelerating the factory's transition to a more energy-efficient production system.
InSPIRE supported this intervention not only because servo motor retrofitting is a proven and commercially viable energy-efficiency measure with a short payback period, but also because it provides a practical example for other garment factories. By demonstrating substantial energy savings, cost reductions, and greenhouse gas emission reductions from a relatively simple upgrade, the project showcases an investment approach that can be replicated by other factories seeking affordable and high-impact sustainability solutions.
Nafa Apparels Limited had already started its sustainability journey by replacing nearly 500 clutch motors with servo motors. However, the remaining 750 machines continued to rely on conventional technology, creating a significant source of unnecessary electricity consumption.
The challenge was particularly significant because conventional clutch motors consume electricity even when operators are not sewing. Across hundreds of machines, these idle-time losses added up to higher energy costs, unnecessary greenhouse gas emissions, and increased pressure during periods of grid load shedding.
At the same time, completing the retrofit required substantial capital investment, competing against other priorities such as compliance improvements, automation, and factory expansion.
Through the InSPIRE Challenge Fund, Nafa Apparels replaced the remaining 750 clutch motors with modern servo motors across its sewing operations. Servo motors consume electricity only when machines are actively sewing, virtually eliminating idle-time power consumption while improving overall energy efficiency. The intervention completed a transformation that had already begun but was progressing slowly due to investment constraints.
The BDT 11.15 million retrofit investment is expected to pay for itself in approximately 1.3 years (15 months). By cutting electricity use by 630 MWh a year, the retrofit is projected to save around BDT 8.7 million annually and avoid 391 tCO₂e of emissions.
Nafa has already begun observing reductions in electricity expenditure following implementation. Preliminary observations indicate a reduction in monthly electricity expenditure from approximately BDT 21.5 lakh to BDT 18 lakh. Continued monitoring is expected to confirm annual savings of around BDT 8.7 million.
Beyond the immediate energy savings, the intervention also contributes directly to Palmal Group's broader sustainability ambitions. The projected annual reduction of 391 tCO₂e represents approximately 11% of Nafa Apparels' estimated annual carbon footprint of 3,500 tCO₂e. As Palmal Group has committed to reducing greenhouse gas emissions by 42% from its 2023 baseline under its science-aligned climate targets (science-based targets initiative - SBTi), this single intervention demonstrates how targeted energy-efficiency investments can make a meaningful contribution towards achieving longer-term decarbonisation goals.
Sometimes the biggest sustainability gains come from the simplest solutions. At Nafa Apparels, replacing 750 conventional clutch motors with servo motors is projected to deliver substantial energy, cost, and emissions savings, while achieving payback in just 15 months.
A clutch motor keeps spinning even when the operator isn't sewing. A servo motor only draws power while the needle is running - every minute of idle time becomes a minute of savings.
The servo motor retrofit delivers more than environmental benefits. By saving an estimated BDT 8.7 million in annual electricity cost, the project helps Nafa Apparels improve efficiency, reduce production costs, and remain competitive in global apparel markets.
The project's impact extends beyond energy savings. Through the InSPIRE application and grant management process, Nafa strengthened its capacity to compile and manage the technical, financial, and compliance documentation required for sustainable financing. Historically, the company financed expansion and sustainability investments primarily through equity. Building on the experience gained through this project, Nafa is now exploring Bangladesh Bank refinancing facilities as a potential source of financing for future sustainability investments.
The project also helped generate wider interest in clean technology investments within the Palmal Group. As part of the InSPIRE application process, several group companies assessed battery energy storage system (BESS) opportunities through feasibility studies. Although some applications were ultimately not selected for funding, the positive business case identified through these assessments encouraged two Palmal Group concerns to proceed with self-financed BESS investments.
Encouraged by the results achieved so far, Nafa Apparels is already exploring additional opportunities to improve energy performance, including an Energy Monitoring System (EMS), lighting optimisation, direct-drive exhaust fan motor upgrades, and the gradual replacement of conventional fans with high-efficiency BLDC fans. Through these efforts, the factory continues to build on the momentum created by the project, demonstrating how a relatively simple intervention can become a catalyst for a broader sustainability journey.
The project's significance also lies in its demonstration effect for the wider RMG sector. By documenting the substantial energy savings, cost reductions, and greenhouse gas emission reductions achieved through a proven technology with a short payback period, the project provides a practical example for other factories considering similar investments. In this way, InSPIRE's contribution extends beyond a single factory, helping encourage broader adoption of energy-efficiency measures across the industry.
Nafa Apparels is advancing its sustainability journey through a combined implementation of energy efficiency and renewable energy to chase its sustainability target and cater to the requirements of its major buyers such as H&M. These initiatives will be supported by stronger data-driven energy management practices to enhance operational efficiency and reduce overall energy consumption.
Nafa Apparels demonstrates that energy efficiency does not always require complex infrastructure projects. By replacing conventional sewing machine motors with efficient servo motors, the factory has unlocked measurable savings in electricity, operational costs, and emissions while strengthening its pathway toward more sustainable garment manufacturing.
InSPIRE | Swisscontact | Embassy of Sweden
InSPIRE is a challenge fund project funded by the Embassy of Sweden and implemented by Swisscontact. The project supports Bangladesh's ready-made garment sector in accelerating energy efficiency and renewable energy adoption, reducing emissions, and strengthening competitiveness through practical, investment-ready solutions.