Delta Spinners Ltd, one of the biggest spinning mills in Bangladesh, is setting up a new unit, meant for export market, aiming to increase its aggregate output to nearly 15,000 tonnes a year, up by around 67 per cent. The new unit adjacent to the existing mills is being constructed on an area of 117,000 square feet (sq ft) at a cost of Tk 540 million. Installation of state-of-the-art machines to be equipped with nearly 27000 spindles at the new plant will start from April-May next. “Underground infrastructure for spinning is very much important. We’ve already finished underground trenches and ducts for humidification,” said Engineer Azizul Islam Khan, senior consultant of the project. People familiar with the development at the factory told the FE that it would go into commercial production sometime in September or early October this year. “We’ve opened letter of credit for procuring equipment, some will arrive in Chittagong port in April and some will in July; then installation will start and go on for few months,” said Masudur Rahman, Executive Director of Delta Spinners Ltd. Mr Rahman said they have been procuring machinery from the world’s best manufacturers to get optimum output. Machines are being procured from Switzerland, Japan, Spain and Taiwan. It will be a state-of-the-art unit and produce high value-added yarns for exports only in addition to traditional ones,” he added. The spinning mill is set to install the latest equipment with globally repute. The latest innovated machinery having features of easy convertible will produce different types of yarns, senior officials at the spinning mills told the FE. Deputy General Manager of Delta Spinners Ltd Abu Ahamed Sharif said: “We have planned to install the latest machines as they will produce both conventional and non-conventional yarns. This is done considering the present and future trend in yarn consumption in Bangladesh.” Demand for non-conventional yarns is rising in the country, which usually have high-value addition than traditional ones. Bangladesh mainly exports basic clothing but it is now gradually leaping up to another upper segment of clothing market. Demand for jersey, sportswear, suits and other luxury clothing is on the rise in recent years and for this reason, demand for high-end yarns is also growing. To cope with the growing demand for both high-end and traditional yarns, the spinning mill is expanding its plant, senior officials at the plant told the FE. Managing Director of Delta Spinners Ltd Mostafa Jamal Haider said the company’s profitability and other indexes will increase sharply when the export project will start its operations. It is estimated that internal rate of return or IRR might increase by 20 per cent after implementation of the project. The company’s EPS (earnings per share) will jump. It is expected to increase from existing Tk 0.58 to Tk 2.0. “We never deprived our shareholders since our company’s listing in 1995. We’ve given 5.0 per cent cash at a time when our EPS was Tk 0.58 in 2014-15,” the executive director said. The spinning mill is also implementing BMRE (balancing, modernisation, replacement and expansion) for the existing plant aimed at raising its productivity. The new plant is being set up and BMRE of the existing plant being done with money accrued from right shares issued by the company one year back. The executive director said BMRE of the existing plant also included the latest machines at the old and existing plant. Delta Spinners started its journey with financial support from erstwhile Shilpa Bank. The mill was established in early 1994 at Kaltapara in Gouripur of Mymensingh, about 140 kilometres off the capital city. It was listed with the bourses in 1995. After setting up of the new unit, the number of its total employees will stand at 2,100, mostly women. The company from its existing plant usually supplies yarns to the local market i.e. local weaving mills to produce sarees, lungis and other fabrics. The new project will feed RMG sector only. Bangladesh has now 430 spinning mills mostly located in Gazipur, Bhaluka of Mymensingh, Narayanganj and Chittagong. Of them, around 200 are of export-oriented and the remaining for the local market.
