Business & Economy Desk:

As the economy of Western countries is turning around, the demand for Denim manufactured by Bangladesh is gradually increasing in the global market. As demand increases, local traders are trying to increase their capacity to dominate the $64 billion global Denim market. Currently, local exporters supply around $5 billion worth of Denim products worldwide.

The data shows that the global Denim market is expected to grow to $76.1 billion by 2026. It will grow at a rate of 4.8 percent annually. That is why the entrepreneurs of Bangladesh have invested around Tk 25,000 crores in the Denim sector. There are already 42 modern factories for Denim in the country. From this, it is possible to produce more than 900 million meters of Denim fabric every year, said the concerned.

About a decade ago, the investment in Denim production in 12 factories was Tk 8000 crore. However, in the past few years, Bangladesh has surpassed neighboring China in supplying Denim to the EU and US markets.

According to the Bangladesh Textile Mills Association (BTMA), an investment of $15 billion has been made for two factories in Habiganj with the aim of exporting $700 million worth of Denim in the next five years. Besides the European Union (EU) and the United States, the demand for Bangladeshi Denim has continued to increase in India, Japan, China, Latin America, and the Middle East.

The data shows that there are currently more than 40 factories for Denim products in Bangladesh. The country’s annual Denim exports amount to about US$ 5 billion. In the last few years, Bangladesh has established itself as the largest Denim exporter to the US-EU.

A two-day Denim expo was recently held in Dhaka. More than 44 companies from seven countries including India, Pakistan, China, Türkiye, Spain, and Italy were present to display their products.

Bangladeshi Denim exporters, Denim fabric millers, and their buyers are very optimistic about business growth this year – because they are getting more orders due to the economic recovery in their main export destinations.

Syed M Tanveer, managing director (MD) of Pacific Jeans, said that they have a lot of orders to run the Denim production at full capacity. About 1.5 lakh pieces of jeans are produced in their factories every day.

Syed M Tanveer said he expects to achieve “12 percent growth in exports” due to an increase in work orders. “I am currently seeing a good number of orders from buyers for next year’s spring and summer orders,” he mentioned.

Syed M Tanveer mentioned that last year their company exported products worth US$500 million. It is expected that by the end of this year, the country’s Denim product exports will achieve a 3 to 5 percent growth.

Shovon Islam, managing director (MD) of Sparrow Group, said that “their factories are working beyond capacity”. And the company has already “launched a new unit” to handle the additional orders.

Envoy Textiles MD Tanvir Ahmed mentioned that their textile mill has been working at 100 percent capacity for the past few months and they have orders in hand to ensure full production for the next few months.

“Most buyers are increasing their orders. This indicates that Envoy Textile is poised to perform better this year. To add more value, the company plans to install a new recycling plant. Because many brands have set goals to increase the use of recycled yarn by 2030,” Tanvir Ahmed said.

BTMA president and MD of Amber Denim Mills Shawkat Aziz Russell said that his factory is producing about 55 million yards per month. “Uninterrupted power supply remains a significant challenge for the textile industry,” he noted.

Shawkat Aziz Russell also said that Denim mills are experiencing growth of about 20 percent every year. He expects similar growth this year despite some agitation over labor issues.

BTMA president said he emphasized the need for stability in the industrial sector for business operations and growth. He urged the government to take the necessary steps to face these challenges.

“This situation is different from the past, as the country is entering a new era due to the students-masses movement. Hopefully, our future will be better and we see a promising aspect in this sector,” he added.

“We see good opportunities for business in Bangladesh in terms of production capacity and capability. No other country has the power to replace the position of Bangladesh,” said Ziaur Rahman, International clothing retailer H&M’s regional head for Bangladesh, Pakistan, and Ethiopia.

For Denim products, he suggested three areas for improvement – labor relations, mid-level management, and technology adaptation.

Denim Expo organizer Mustafiz Uddin said that international buyers and brands want good prices. The law and order situation needs to be improved so that the confidence of the buyers in Bangladesh is maintained.