Undeterred by the challenges confronting both domestic and international markets, Bangladeshi garment, textile, and accessories manufacturers are poised to make a resounding statement by investing a substantial Tk12,000 crore over the next two years in new technologies that are set to reshape the industry landscape.
The upcoming technologies, encompassing cutting-edge machinery for the production of man-made fibres and fabrics, recycled fibres, automated equipment, and robotic technology for garments and accessories, are anticipated to diversify the sector’s basket and expedite the overall production process.
Insiders with knowledge of the matter told The Business Standard that eight prominent companies are poised to channel around Tk12,000 crore into these fresh investments, a move projected to yield job opportunities for about 50,000 individuals within their respective apparel, textile, and accessories units.
Among the industry giants spearheading these initiatives are Hameem Group, DBL Group, Pacific Jeans, Team Group, Windy Group, Nipa Group, Shasha Denim, and Indet Group. These conglomerates are establishing new facilities to augment their production capacity and enhance their positions within the global ready-made garment (RMG) export market.
Speaking to TBS, entrepreneurs acknowledged the challenging economic backdrop but emphasised their investment choices as strategic moves towards securing the industry’s future and diversifying their business foundations.
They expressed optimism that the apparel sector could experience a positive turnaround next year, particularly as Western markets exhibit signs of positive changes. However, they also admitted that challenges such as the fluctuating dollar exchange rate and interrupted utility supplies continue to pose hurdles for the industry.
Echoing these entrepreneurs, global buyers also voiced optimism that the market could regain a positive trajectory by the next year.
Shafiur Rahman, country manager of G-Star RAW in Bangladesh, said, “Those who persist with their investments based on their previous plans are likely to be beneficiaries, given that future directions are not anticipated to decline further, if it may remain the same.”
He further highlighted the potential risks associated with investing in the current climate, particularly the prospect of waiting for an extended period before reaping returns.
Hameem Group
Hameem Group, one of the leading garment exporters, recently launched two new units: a garment-cutting waste recycling unit and an outerwear factory. The initial investment for both units collectively amounted to approximately Tk350 crore, according to company sources.
AK Azad, managing director of Hameem Group, revealed that while they initiated the outerwear project with three production lines in April this year, their plan entails expanding to 16 lines by December.
Azad noted that their strategic focus had shifted from garment capacity expansion to diversification, underpinning their business’s sustainability in the foreseeable future.
Furthermore, Hameem Group intends to venture into fabric production from recycled yarn by 2024.
Windy Group
Windy Group has invested Tk500 crore to install modern machinery and expand production capacity.
Mesbah Uddin Khan, managing director of Windy Group, indicated that their new project is anticipated to generate approximately 8,000 job opportunities, encompassing washing operations operational from November 2022.
He expressed optimism that full operation by 2025-26 could potentially lead to exports worth $350 million, a significant increase from the current level of approximately $190 million.
The entrepreneur also said they have another big project for the green industry, which is in its design stage. Upon implementation, this project aims to elevate the company’s exports to the $500 million mark by 2029-30.
Pacific Jeans Group
Pacific Jeans Group, another prominent apparel exporter, is set to invest $31.75 million to establish a new production facility spanning 7.5 lakh square feet in the Chittagong Export Processing Zone (CEPZ).
This new factory, named Pacific Attires Ltd, will specialise in high-value formal wear, including suits, blazers, jackets, coats, dress pants, and casualwear.
Syed Mohammad Tanvir, managing director of Pacific Jeans said this unit is projected to start production by this November.
In 2022, the company’s garment exports amounted to $500 million, and they target reaching $600 million by year-end.
Additionally, the company is investing in a recycled fibre project set to go into production by January next. This initiative is centred on recycling cutting waste, which also is a prerequisite for sustainability, said Tanvir.
Shasha Denim
Shasha Denim also is poised to invest in establishing a green garment and washing unit, alongside expanding its textile capacity.
Shams Mahmud, managing director of Shasha Denim, shared that the initial investment will amount to Tk200 crore with additional investment planned for the second phase. The exchange rate, however, might lead to higher investments than originally estimated, he added.
Shasha Denim’s strategy includes focusing on green facilities to reinforce their commitment to sustainability.
Nipa Group
Nipa Group’s plans encompass a Tk400 crore investment in setting up a manmade fibre-based fabric mill and dyeing facility named Hasin Eco Textile in Gazipur district’s Sreepur upazila.
Managing Director Md Khosru Chowdhury revealed that the expansive 105-bigha facility will comprise four industrial sheds and an administration building.
“The construction is underway, and hopefully, we will be able to open letters of credit (LCs) by next month. First phase of commercial operations are anticipated to begin by mid-2024.”
The unit is expected to go into full-fledged operation by December next producing two lakh yards of fabric per day.
This addition is expected to bolster Nipa Group’s yearly export earnings to $250 million from $190 million in 2022.
Indet Group
Indet Group is embarking on an investment of approximately Tk400 crore to establish an industrial park with a green concept. Additionally, they have sought platinum green certification for this initiative.
Its Managing Director AL Shahriar Ahmed said, “Our construction work is going on despite the ongoing economic headwinds. We have already opened many LCs, and some will be opened this year.”
This endeavour, slated for production by June 2024, is poised to serve as a comprehensive source for accessories and packaging, all within a single premise.
This project carries the potential to double export output, further enhancing Indet Group’s annual turnover of $36 million in 2022-23.
Team Group
Team Group is channelling an investment of around Tk1,800 crore to augment their sweater and knit composite production capacity and establish new facilities, including a denim garment unit, a zero discharge washing plant, and provisions for accessories and man-made fibre-based fabrics intended for an outerwear factory.
Abdullah Hil Rakib, managing director of Team Group, confirmed that construction is underway for all units as per their strategic blueprint. Some LCs have already been initiated for machinery import, with two capacity expansion projects slated for production by 2024 and another two set for 2025.
The fabric unit’s operation is expected to begin by 2026, and the company is actively seeking a technical partner for this venture.
These initiatives will be designated as platinum green projects.
DBL Group
The DBL Group is actively investing nearly $650 million across multiple sectors, including textile, ceramics, and pharmaceuticals in the Sreehatta Economic Zone.
Additionally, they are gearing up for the commercial operation of their Textile Mills Ltd later this year.
