Denim Industries in Bangladesh

54
PRESENT SCENARIO OF DENIM INDUSTRY IN BANGLADESH

Transcript of Denim Industries in Bangladesh

PRESENT SCENARIO OF DENIM INDUSTRY IN BANGLADESH

A REPORT ON

PRESENT SCENARIO OF DENIM INDUSTRY INBANGLADESH

PREPARED FOR:

MD. ATIQUL AKTAR

General Manager, Sales and Marketing

Evince Textiles Ltd.

PREPARED BY:

NAYEEM ABANTY HUQUE

DATE OF SUBMISSION: 14. 05. 2015

May 14, 2015

Md. Atiqul Aktar

General Manager, Sales and Marketing

Evince Textiles Ltd.

Subject: Submission of the report

Dear Sir,

It is an honor and great pleasure for me to submit my reporton “The Present Scenario of Denim Industry in Bangladesh”.

During the process of preparing the report, I have studiedrelevant secondary data from different websites in internet.

Thanking you for your supervision.

Yours truly

Nayeem Abanty Huque

TABLE OF CONTENTS

No Contents Page No.

1. Executive Summary 62. Abstract 73. Scope of the Study 84. Objective of the Study 85. Literature Review 96. Methodology of the Study 97 Denim Definition 108. Types of Denim 129. Application of Denim 1410.

Denim Industry Overview 15

11.

International Market Analysis 16

12.

Share Of Purchases 17

13.

Denim Market Share Compared to Others

18

14.

Top Purchase Drivers for Denim Jeans Shoppers

19

15.

Denim Apparel Export 20

16.

Import Of Denim 22

17.

Denim Manufacturing Companies 24

18.

Capacities Of The Companies 34

19.

Findings 35

12.

Conclusion 36

13.

References 37

LIST OF TABLES AND FIGURES

No Tables and figures PageNo

1 Denim Industry Statistics 16

2 Share Of Purchases 173 Denim Market Share Compared to

Others18

4 Top Purchase Drivers For Denim Jeans Shoppers

19

5 Imports of Denim Apparel In US 216 Import Of Denim 227 Capacities Of The Companies 34

EXECUTIVE SUMMARY

Since the commencement, worldwide market of denim remains

evergreen. Centuries ago, denim had a limited usage but with

the versatility of its utility now the demand for denim is

always sky high in the global market. Irrespective of any

market condition, denim get ready acceptance to the

consumers. In 2013, three countries clearly stood out from

the mass of jeans suppliers to the European Union: Turkey,

Bangladesh and China. Together they supply two thirds (62%)

of jeans imports in terms of value and 69% in terms of pairs

of jeans. These three suppliers are followed by Pakistan and

Tunisia, then trailed by Morocco and Cambodia fairly far

behind. The current annual denim production is approximately

4 billion meters, and over 60% of the denim being

manufactured in Asia, primarily in China, India, Turkey,

Pakistan and Bangladesh. Bangladesh is the second largest

exporter of denim after China. In 2013-14, it exported

46,74,057 kg denim according to Bangladesh Bureau of

Statistics. Currently, Bangladesh is the third largest denim

exporter to the US after Mexico and China with an 11.3

percent market share, according to the US Department of

Commerce. The industry in Bangladesh presently has 25 denim

producing factories with total investment of over USD 834

million. The monthly productions of denim stands at 30

million yards per month while the demand of nearly 60

million yards. To fulfill the balance demand, imported 30 to

35 million yards per month from countries like China, India

& Pakistan which average value is USD 75 million. The total

investment in the denim sub-sector is USD 900 Million

according to BTMA data.

ABSTRACT

Denim is more than just a cotton fabric; it inspires strong

opinions within the hearts of historians, designers,

teenagers, movie stars, reporters and writers. Interest

bordering on passion can be found among textile and costume

historians today, especially in the debate over the true

origins of denim. These experts have put decades of work

into their research; here are summarized the prevailing

opinions about the birth of denim, followed by a discussion

of the way Levi Strauss & Co. has helped to contribute to

denim’s movement around the world. Bangladesh has become one

of the most important centers for denim apparel production

and export across the world. It is the second largest

producer of denim products after China, ships around 180mn

pieces of denim jeans around the world annually. Diversion

of orders from China has opened up new opportunity for local

denim goods producers and very soon it will replace China as

the world's biggest denim exporter. With thousands of small

and big garment units in Bangladesh, it is also one of the

cheapest production center for apparel around the world

centered in and around the city of Dhaka and some around

Chittagong. The purpose of this study is to know the present

scenario of Denim Industry in Bangladesh.

SCOPE OF THE STUDY

This study focuses on the present condition of denim

industry worldwide and in Bangladesh. It includes the export

of denim from Bangladesh, import of denim fabric from India,

China and Pakistan and the position of Bangladesh in denim

apparel production and export across the world. This study

will be useful to the denim companies to make decisions

about their production as they can know the competition

situation across the world.

OBJECTIVE OF THE STUDY

The main objective of the study is to know about the present

scenario of denim industry in Bangladesh. The other

objectives are:

1. To know about the condition of worldwide denim market.

2. Top buyers of denims.

3. To know about the export from Bangladesh.

4. To know about the import into Bangladesh.

LITERATURE REVIEW1. The wide consumption of denim by fashion connoisseurs

globally has created a new opportunity for Bangladesh,

the second largest exporter of the item after China.

Demand is expected to grow at 4-5 per cent over next

five years. Denim will be the next item to brand

Bangladesh as it is capable of producing a high quality

product at competitive prices. Bangladesh would make

four in five denim items for the European market by

2020. (BANGLADESH denim industry- Poised to become No

1. Exporter in the world “APPAREL VIEWS BANGLADESH/MAY

- JUN 2014”).

2. The exports of denim jeans from Bangladesh have

increased by almost 400% from 2000 to 2009. (Prospects

of Denim Industry in Bangladesh “ Jahangir Alam

Sujon”).

3. Bangladesh is becoming one of the fastest growing

centers for denim apparel production and export around

the world, with thousands of small and big garment

units. Bangladesh is also one of the cheapest

production centers for apparel around the world.

Additionally, the country is the world’s most

concentrated cluster of apparel production with most of

the units centered in and on the city of Dhaka and some

around Chittagong (Denim Apparel Production In

Bangladesh: High-End Products at Competitive Pricing “

IDLC Monthly Business Review - Volume 10 l Issue 10 l

October 2014”).

METHODOLOGY OF THE STUDY

Information and data relevant to this study have been

gathered from several sources. The study has been

conducted mainly on the basis of secondary information,

various journals and research papers have been surveyed

in making this study.

Denim Definition

The word “Denim” comes from the name of a sturdy fabric

called serge, originally made in Nîmes, France, by the Andre

family. Denim was originally called serge de Nîmes, it was

then soon shortened to Denim. Denim is a rugged cotton twill

textile, in which the weft passes under two or more warp

fibers. This produces the familiar diagonal ribbing

identifiable on the reverse of the fabric, which

distinguishes denim from cotton duck. It is a twill-weave

woven fabric that uses different colors for the warp and

weft. One color is predominant on the fabric surface.

Because of this twill weave, it means the fabric is very

strong. Denim was originally used by workers. They wore

denim clothes because of its durability, it was extremely

strong and perfect for their daily jobs, it didn’t wear out

easily making it a good fabric for the long run. In the

1800’s American gold miners wanted clothes that were strong

and did not tear easily. To meet this demand from the

miners, a man called Leob Strauss started a wholesale

business, supplying clothes to people who required it. Leob

and a Nevada tailor joined forces to patent an idea the

tailor had for putting rivets on stress points of workman’s

waist high overalls, commonly known as jeans. Strauss later

changed his name from the rather plain Leob to the extremely

recognizable Levi, this is when the brand Levi Strauss was

created and is still extremely successful today. The 1930′s

Cowboys often wore jeans in the movies. This made jeans

become very popular, as you know how much of influence

clothing in the movies has on every day wear. This lead to a

huge increase in people wanting to purchase jeans. During

the 1940′s fewer jeans were made due to World War 2, but

American soldiers did introduce them to the world by wearing

them when they were off duty as a casual, comfy item of

clothing. After the war, rival companies, like Wrangler and

Lee, began to compete with Levi’s for a share of the

international market.

In the 1950′s Denim became very popular with young people.

It was the symbol of the teenage rebellion in TV programs

and movies. James Dean, in the 1955 film Rebel without a

Cause, was a symbol of this. Some schools in the US went so

far as to ban students from wearing denim on the premises.

In the 1960′s and 70′s manufacturers started to make

different styles of jeans to match the 60′s fashions which

included embroidered jeans, painted jeans, psychedelic jeans

etc. these were a huge part of the fashion and culture.

Think of the 70′s flares with platform shoes, everyone today

remembers the 70′s fashion for this, even if like myself,

you were not even born then! In many non-western countries,

jeans became a symbol of ‘western decadence’ which meant

they were very hard to get.

In the 1980′s jeans became very high fashion clothing.

Famous fashion designers like Gucci started making jeans,

with their own labels on them. These meant jeans had lost

their appeal as a workers fabric now and were classed as a

very fashionable item of clothing to own. Because high

fashion designers like Gucci had taken jeans on, this meant

that jean sales started to rocket, everyone who was anyone

had to own them. More and more different types and styles of

jeans were created; the flares were dropped and in came the

super skinny jeans, acid washes and little Denim jackets.

Denim really was taking the fashion industry by storm.

Although denim is never completely out of style, it

certainly goes out of “fashion” from time to time. The

1990′s youth market wasn’t particularly interested in 501′s

and other traditional jeans styles, mainly because their

parents: the “generation born in blue” were still wearing

them. No teenager in their right mind would be caught dead

in anything their parents are wearing, this meant the 1990′s

youth turned to other fabrics and styles like cargo pants,

khakis and branded sportswear. Jeans made a huge come back

on the catwalk with big name designers like Chanel, Dior,

Chloe and Versace adding them to their summer ’99

collections. Jeans were back in fashion.

Types of Denim

Raw Denim

Raw denim is dark, unwashed fabric that is stiff and very

durable. It fades with wear in certain areas, creating a

natural distressed look. It also fades with washing.

Selvedge Denim

The premium type of raw denim fabric is selvedge denim, with

tight weaving and natural edges that will not unravel.

Selvedge denim is more expensive than other raw denim.

Stretch Denim

The blend closest to pure denim is called stretch denim,

which usually includes 2 or 3% spandex material to create a

significant stretching capacity of about 15%.

Poly-Denim

Poly-denim blends look like a dressier denim and are more

lightweight, which makes them more convenient to wash and

dry. They are also more resistant to wrinkling.

Ramie-Denim

Denim is also sometimes blended with the plant fiber ramie,

which reduces wrinkling and gives the fabric a softer feel.

The latest trend is the raw denim; jeans which has not been

washed or treated with chemicals. These denims though stiff

initially, expand later and conform to the wearer’s body

becoming unique to the users shape. Over time, denim will

usually fade, which is considered desirable by some people.

During the process of wear, fading will usually occur on

those parts of the article that receive the most stress. In

a pair of jeans, these parts include the upper thighs, the

ankles and the areas behind the knees. After being made into

an article of clothing, most denim articles are washed to

make them softer and to reduce or eliminate shrinkage. In

addition, “washed denim” is sometimes artificially

distressed to produce a “worn” look. “Distressed” jeans are

also very popular among the young generation. The denim

looks tattered and frayed and in Asia, Sri Lanka’s capital

Colombo is renowned for the production of distressed denim.

These denims go through a torturous manufacturing process of

dying, bleaching, and sandpapering for four days to get a

“distressed” look. Each garment is dyed or dipped around 16

and sometimes as many as 30 times to achieve the proper

torn, tattered look.

Application of Denim

Denim is used in many ways. They are given below:

Clothing

Boots and athletic shoes Capri pantsDressesHatsJacketsJeansOveralls (dungarees)ShirtsShorts, including Daisy Dukes and cut-offsSkirtsSneakers (Keds, Converse Chuck Taylor All-Stars)Suits

Accessories

BeltsHandbags (purses)Tote bags

Furnitures

Bean bag chairsLampshadesUpholstery

Denim Industry Overview

Denim garments came into existence during the 18th century,

a time when there was abundant production of cotton. During

that period, it gained importance due to its aspects of

durability and not easily torn which benefited physical

laborers to a great extent. In the 90s, it became one of the

most sought after garment. To diversify the denim market,

manufacturers then, came up with various innovative ideas of

using the denim fabric like poodle skirts, caps, handbags,

etc. It was during that time when the denim sales elevated.

Currently, the new millennium finds denim in each and every

home; worldwide. Whether it is jeans, jacket, shirt or any

other product, the essence of fashion attracts the consumers

to shop around for denims. Denim manufacturers also play an

essential part in this by constantly upgrading the market

with new products. Branded jeans market is estimated to have

an average annual growth of 30%-40%. Apart from the normal

jeans, various other items like skirts, caps, wallets,

shoes, handbags, etc. have also found their way into the

fashion world as fashion accessories. Denim bags are

fashionable, durable, and are popular among the clique of

fashionable people. Denim has transcended the past decades

and is still sustaining a lucrative market for itself. A

garment once worn while doing tough physical work due its

strength, and durability has now become a vogue item. They

come in all colors and are worn by people of all ages, at

any occasion, place and time. Fads come and go, but the

trend of denim is here to stay forever.

NUMBER OF DENIM MILLS WORLDWIDE

REGION NUMBER OF MILLSAsia (China) 297Asia (Others) 104North America 9Europe 41Latin America 46Africa 15Australia 1Total number of denim mills worldwide is 513. Global denim

fabric production in meters 2,700,000,000. Total number of

denim jeans sold worldwide annually is 1,240,000,000. 23

INTERNATIONAL MARKET ANALYSIS

The denim market is a massive global industry with the

majority of denim mills (297) located in China. Pretty much

every American has a pair in their closet. Women on average

own 7 pairs. North America purchases 39% of all denim

produced. While the leading purchase factor when buying a

pair is the fit. Below is a statistical rundown of the denim

industry.

Denim Industry Statistics DataTotal number of denim jeans sold worldwide 1,240,000,000

annuallySize of Global denim market by sales $56,200,000,0

00Size of U.S. denim market by sales $13,720,000,0

00Women’s denim market size $8,550,000,00

0Men’s denim market size $5,170,000,00

0Global denim fabric production in meters 2,700,000,000Average price of a pair of denim jeans $45.32Total number of denim mills worldwide 513Percent of U.S. consumers who own a pair ofjeans

96 %

Average number of denim pants a woman owns 7Average number of denim pants a man owns 6Percent of Americans that wear jeans to work an average of 4 days a week

60 %

Source: Retail Monitor, World Denim Market Report, Cotton Incorporated

Annually, total number of denim jeans that are sold

worldwide is 1,240,000,000. Size of denim market by sales is

$56,200,000,000. Global denim fabric production is

2700000000 meters.

The demand of denim fabrics in Bangladesh is quite high and

will remain so in foreseeable future as long as the garments

industry exists. In spite, lack of technical skill our denim

production has gathered pace and is surviving in a healthy

environment by competing with China and India. These

countries are having years of experience with no lowdown of

skilled manpower but the buyers prefer shorter lead time,

competitive price and fabrics from within the garments

manufacturing country. Therefore, the future of Bangladesh’s

denim industry is bright. To meet the growing demand of

denim fabric to international market, the local mills are

investing hugely on state of the art imported machineries

especially on the weaving & processing side and setting up

large plants in the country.

Share of Purchases

According to the graph 39% denim consumers are in North

America which is the largest part of the total share. 20%

consumers are in Wstern Europe, 10% in Japan and Korea and

31% are rest of the world.

39%

20%

10%

31%

%Share of purchases

North AmericaWestern EuropeJapan & KoreaRest of the world

Source: Retail Monitor, World Denim Market Report, CottonIncorporated

Denim Market Share Compared to Other

According to the graph given below 27% women are the

customers of denim jeans and 38% men are the customers of

denim pants compared to non denim pants, shorts, active

pants, active shorts, dresses and skirts.

Denim Jeans

Pants (non-denims)

Shorts

Active Pants

Active Shorts

Dresses

Skirts

0%

5%

10%

15%

20%

25%

30%

35%

40%

27%25%

9% 8%5%

17%

9%

38%

31%

14%

7%10%

0% 0%

Women'sMen's

Source: Retail Monitor, World Denim Market Report, Cotton Incorporated

Top Purchase Drivers for Denim Jean Shoppers

Among 100% women 83% women wear denim jeans because of

fitness and among 100% men 64% wear because of fitness.

Among another 100 women 75 women purchase because of comfort

and 60 men purchase for comfort. According to the graph most

of the women and men purchase denim jeans because of

fitness, after that for comfort, women for flatterin look

and men for price, next is women for price and men for

flattering look, quality and durability are last drivers.

Fit

Comfort

Flattering Look

Price

Quality

Durability

0%10%20%30%40%50%60%70%80%90% 83%

75% 71%64%

55% 56%64% 60%

48% 49% 46% 45%

Women'sMen's

Source: Retail Monitor, World Denim Market Report, Cotton Incorporated

Denim Apparel ExportBangladesh is the second largest exporter of denim after

China; denim has been playing a significant role in our

economic development over the last few years. Usually, denim

is used for making stylish clothes for all the seasons. Most

of the people of our country are familiar with denim.

Usually, Bangladesh exports it to the European countries,

including England, Russia, Norway, Italy, Poland, Germany,

Romania, and many countries of Latin America, including

Brazil, Argentina etc. Apart from USA and EU, the BD denim

apparels are also shipped to African countries and

Australia. In 2013-14, it exported 46,74,057 kg denim

according to The Bangladesh Bureau of Statistics.

It is the second largest producer of denim products after

China, ships around 180mn pieces of denim jeans around the

world annually. Last year, the country's garment makers

exported approx. 185mn pairs of denim jeans in men's and

boys’ category to the world market including about 74mn

pieces to the US and around 140mn pieces of jeans to Europe.

The country was also the largest exporter of men’s jeans to

Europe in 2013 with 89 million pieces compared to 65 million

from China. Bangladesh now export jeans and other denim

products worth more than $3.5bn or worth Taka 25,000cr

annually mainly to these two markets. The growth of exports

of denim apparel to the US in the first five months of 2014

is about 1.6 per cent. Total denim imports by the US fell

9.5 percent year-on-year to $3.7 billion in 2014, as the

fashion cycle shifted away from jeans to yoga pants and

other sports-wear in recent times. In 2014, total denim

exports from Bangladesh to the US fell by 7.3 percent year-

on-year to $426 million. The average cost per pair from

Bangladesh rose by 3 percent in the period to $6.18. In

2014, Mexico had a 27.3 percent share of the US denim

market, while China had 26.2 percent, Pakistan 4.3 percent

and Vietnam 4.4 percent. Currently, Bangladesh is the third

largest denim exporter to the US after Mexico and China with

an 11.3 percent market share, according to the US Department

of Commerce. Bangladesh exports denim products worth more

than $500 million to Europe a year, according to industry

insiders.

Imports of denim apparel into US has fallen by about 7.5% in

the period Jan-Oct’14 compared to the same period in 2013.

The imports fell by about 33 million pieces from 437 million

pcs to about 404 million pcs during this period. The average

price has also seen pressure with the same falling by about

8.6% from $8.12 per piece to about $8.03 per piece.

Details 2013 2014 Difference(%)

Quantity (mn.pcs)

437 404 -7.5%

Price $8.12 $8.03 -8.6%

The global market for denim is projected to reach a mammoth

sixty five billion dollars by 2015. Though United States

were the major denim producer throughout the years  but now

with the emergence of the Asia pacific countries like,

China, India, Pakistan and Bangladesh you can say denim is

not any more an American product. So, to meet the demand of

both requirements of our country as well as abroad country

we should come forward to produce quality denim produce.

Import of Denim

Nowadays denim product is a very important product of

garments sector all over the world. Beside Bangladeshi,

foreigner investors are also increasing investment in denim

production related sector. And for increasing business

environment of denim in Bangladesh different types of

exhibition are organizing in Bangladesh. Till now Bangladesh

is not in good position of producing denim fabric. Maximum

time we are importing denim fabric from china, India and

Pakistan. In Bangladesh there are about twenty five

institutes which are producing denim fabric. But this is not

enough as the requirement of denim fabric. We are in back

position in producing denim fabric rather than other

countries. According to BTMA data, 25 denim fabric

manufacturers, which produces 30mn yards of denim a month

against monthly demand of nearly 60mn yards; needs to import

50 per cent fabric from other countries like India, Pakistan

and China which average value is USD 75 million.

Beside ready-made garment of denim, if we want to increase

our profit from denim section than we should try to increase

denim fabric production. Because among all backward linkage

(backward linkage means these which are related to make

ready-made garments) fabric plays the vital role. As denim

product is a very potential part of garment sector so we

should be more careful about its production. But for

increasing denim related investment in textile sector there

also should have proper gas and power supply system. And in

that purpose Government should come forward. But in the last

couple of years, some manufacturers installed capacity for

developing mid-range and superior grade denims. Now industry

has been upbeat about Bangladesh gaining fresh grounds in

overseas denim market with fashion and high end products.

Fashion denims like that used spandex fibers are now being

60mn Yards

MonthlyDemand

25 Denim Companies

Local Production

30mn Yards

30mn Yards Valued $75

million

China, India and PakistanImport

produced in the country and the industry is going for

valued-added dyeing, finishing, coating and mercerizing in

denims with laser applications, replacing the age-old sand

blasting.

Denim manufacturing Companies

In Bangladesh there are about twenty five institutes which are producing denim fabric.

Informations about 14 manufacturing companies are given below:

ENVOY TEXTILES LIMITED (ETL)

Envoy Textiles Limited (ETL) is a manufacturer of high

quality fashion denim in Bangladesh, located at Bhaluka,

Mymensingh in Dhaka City. Established in 2005, the company

started its commercial production in early 2008 and within a

short span of time, it has become the largest denim fabric

producing unit in Bangladesh. The company is ISO and Oekotex

certified. ETL introduced rope dyeing denim for the first

time in the country.

Its vision is to achieve global dominance through excellence

in product quality and to become a vertically integrated

manufacturer for fabric & garments. The company diversifies

products through continuous product innovation and strongly

believes in customer orientation and cost effectiveness.

Short lead time, diversified product portfolio, high

standards of quality and service, effluent treatment plant

Envoy Textiles Limited (ETL)Annual

production 24 million yards

Manpower strength

650

Annual producti

on capacity

50 million yards

to safeguard the environment are some of the many strengths

of the company.

MAHMUD DENIMS LIMITED

Mahmud Denims Ltd. (MDL) is one of the leading manufacturers

and exporters of denim fabric, capable of producing more

than 8 Million yards of denim per year in all weights from

4.5 oz to 15 oz/sq.yd, in basic, slub, cross hatch (stretch

& non-stretch) designs. MDL has the state-of-the-art

machineries imported from US, Belgian, Swiss, Taiwanese and

Japanese manufacturers, which includes Slasher Dyeing,

Sanforizing range, Rapier and Air Jet weaving looms. Soon to

run are additional finishing machines such as Mercerizing,

Stentering/Heat setting, and additional unit of Sanforizing

machine. We use quality raw materials, dyestuffs,

auxiliaries and chemicals.

Mahmud Denims Limited was established in 2006. MDL is

consumer focused. Through continuous quality improvement and

product innovation, their products and organizational

structures were set to match and exceed consumer

expectations with optimum value.

Their cutting-edge equipment and professionally trained &

experienced, foreign and local personnel, contributes

tremendously to make a milestone in the market and set an

exemplary benchmark.

SHASHA DENIMS LIMITED

Shasha Denims Ltd. is the leading denim fabric producer in

Bangladesh since 2000. It is a professionally managed and

technically sound organization located at Dhaka Export

Processing Zone (DEPZ). Their plant is fully integrated with

State of the Art technology and machinery from Switzerland,

Germany, Belgium, and USA to give their valued customer the

real classical Indigo Denim made with the best and most

modern computerized SLASHER DYEING technology. With ever

increasing acceptance of our quality fabric and increase in

demand the production capacities were expanded at regular

MAHMUD DENIMS LIMITEDAnnual

Production More than 8 million Yards

Number of

Employees 300

Monthly Producti

on Capacity

1.4 Million Yards

intervals. Their production capacity is 1.8 million yards

per month.

The machinery and the facilities are equally complemented with

highly motivated and trained, skilled workforce who works round

the clock to deliver the world class denim fabrics. In the era

of specialization they concentrate only in denim Fabrics. This

segmented concentration gives them the opportunity to serve their

customers better. Most of their customers are world renowned and

in number of cases we are the only nominated supplier for them

from Bangladesh

BEXTEX LIMITED

Cust

omer

s

Marks & Spencer

H&M, C&A

George

Polo

Next

sOliver

JC Penny

Tommy

Gap

Lee Hang Fat

Woolworth

Gulden Pfenning

Li & Fung

Bextex Ltd. was incorporated in Bangladesh as a Public Ltd.

Company in 1994 and commenced commercial operation in

1995.The project was set up as a state of the art denim

fabric weaving and finishing facility. Bextex Ltd. is the

most modern composite mill in the region. Bextex Ltd. has an

installed capacity of 288 high-speed air-jet looms in its

weaving section and a high-tech dyeing and finishing section

with a capacity of 100,000 yards of finished fabric per day.

This company is located at the Beximco Industrial Park.

Bextex Ltd. produces specialized finishes of denim cloth for

export in finished as well as cloth only form.

BEXTEX LIMITED

Capacity of 288 High-speed Air-Jet Looms

Daily 100,000 Yards

Finished Fabric

PARTEX DENIM LIMITED

Partex Denim is a Premium Denim Producer. It commenced its

production in 2006 with the best and latest machinery

available in the world. The current capacity is two Million

yards of Fabric per month.

On the fabric side, our product range includes weights from

4.5 oz up to 14.5 oz using multi-count/multi-twist

ring/open-end yarn using CAIPO technology. We have two

worlds best Benninger Slasher Indigo dye range from

Switzerland and Germany, which are capable of doing colored

bottoming/topping reactive colored denim/Sandwich/ plus very

deep indigo shades.

Partex always researches to develop new fashion as per the

world requirement as well as to maintain comfort &

durability. Partex is manufacturing all kinds of denim

fabrics in rigid and stretch in the following versions:

Partex Denim is not just a manufacturer of fabric but a

complete development facility to provide 'speed to the

market' capability required by our customers.

TITAS SPINNING AND DENIM COMPANY LIMITED

Malek Spinning Mills Limited acquired 90% share of Titas

Spinning & Denim Company Ltd. in April, 2011. The company is

engaged in the production of 100% export oriented denim

fabrics/garments with a production capacity of 15,000 yards

per day having all infrastructural facilities.

LITUN FABRICS LIMITED (DENIM DIVISION)

Denim Fabrics

Non flat Flat

Super

Flat

Resin

coated

Pigment Coated

Over Dyed

PU Coated

ECRU

RFD Denim

Ash Colored

Reactive Colored

Color

It has been deeply rooted in providing almost all sorts of

denim fabrics like regular, slub denim, cross hatch denim,

polyester denim, colored denim with varieties of finishing

including coated finishes with a production capacity of

520000 meters per month and has yearly turnover of US $ 16

million dollars. Litun Fabrics Limited produces denim for

their owned garments as well as provides maximum fabrics

with their respected buyers/garments factories which are

meeting the need of world class buyers.

SINHA DENIM LIMITED

It's a private Ltd. company and sister concern of the

largest exporters of garments. The sister concern"s name is

OPEX Group. OPEX group and Sinha Textile group being owned

by the same set of promoters. The group has its head office

in MOhakhali and this group has four industrial areas where

they have their own units. In kanchpur about 25, 000 workers

attend to their work every day. Sinha Denim is one of the

units in this region. The total capital outlay of Sinha

Denim is Tk. 1000 million ( Tk. 70 per Dollar) and it'; S

expanding. Sinha Rope Denmim is another unit held by the

same group. That's under Construction. The Productyion

capacity of this unit is 8, 00, 000 meter per day. All the

products are being purchased bty it's sister concern Messrs

Opex.

ROYAL DENIM LIMITED

Royal Denim Ltd. is a prominent Denim Fabric manufacturer in

Bangladesh using State of the Art technology. Royal Denim

Ltd. is best described of high-tech manufacturing facility

and managed by a team of young energetic professionals,

producing superb Quality Denim from top-notch branded

machineries with a current production capacity of 7.5

Million meters per annum. They produce all types of Ring,

Slub, X-hatch, Poly Cotton, Poly Cotton Stretch & Stretch

denim beside traditional regular denim.

NASSA-TAIPEI DENIM LIMITED

Employees

1000 people

Main Markets

North America South AmericaEastern EuropeOceaniaEastern AsiaWestern Europe

Business Type

ManufacturerTradingCompany Buying Office

Product / Service

ComittmentFabricYarnChemical

It is specialized in the production of the finest quality

indigo denims for clients including Marks and Spencer. The

mill is equipped with an ETP system, as well as the newest

manufacturing technologies from Belgium, Germany,

Switzerland and Taiwan. Via these technologies and a fully

trained workforce the division delivers a production

capacity of 1.8 million yards per month. The overarching aim

of NASSA-Taipei Denims Ltd is to produce the finest quality

indigo and variant denims to meet the discerning demands of

its worldwide customer base.

HA-MEEM DENIM

Ha-Meem Denim is located at a beautiful landscape of Mawna,

Sreepur along Dhaka-Mymensingh highway approx. 65 kms from

Dhaka. Hameem Group is a diversified business conglomerate

with ventures in Garments, Banks, Insurance, Jute,

Packaging, Washing, Newspaper, TV Channel, Tea estates etc.

The group is one of the largest manufacturers of garments in

the country and it is but natural that it decided to

capitalize its core strength by setting backward linkage of

Denim and Spinning. HDL is thus one-stop solution provider

for leading apparel brands around the world.

DENIM EXPERT LIMITED

Denim Expert Limited, a Netherlands-Bangladesh Joint Venture

company, is among the best Denim and woven ready-made

garments-product providers in Bangladesh. The company

comprises several units including garments, washing wings,

embroidery unit, printing section and, last but not the

Majo

r Fe

atur

es o

f Ha

-Mee

m De

nim Full-fledged laboratory

facilities with arrangement and utmost

emphasis on “Total Quality Management.”

Became operational in May 2007. Annual production

capacity 38 million liner meter. 

Captive power generation

Yarn sourcing from the best available sources

from Pakistan, India and China. 60% yarn from

within Bangladesh. All chemicals are from brand

manufacturers. Eco friendly process with effort to be a green factory. Full-fledged effluent treatment

facilitiesSkilled and experienced manpower. HDL attracts, retains and nurtures

talent

least, a laboratory. The hard toiling journey Denim Expert

Limited undertook started in 1998 with a firmly set goal and

determination in achieving it. All through these years

they’ve gained experience, got introduced to new and latest

technologies and consequently adopted those. So where they

stand now is a height unreachable and unbreachable. Denim

Experts Limited locates in Chittagong, the biggest city port

in Bangladesh, just in 20 minutes distance from the port.

The advantageous positioning of its factory attracts and

draws in even more buyers who love to avoid problems created

by long distance issues. The quality is paramount to this

company and thus it assures the best technologies to be

implemented in production, manufacturing and washing

procedure. The latest, widely accepted R&D equipments are

used in garments and washing steps. Strong network on trims

is used along with all other accessories. The craftsmen

behind the operation are best picks and later, well trained

to suit the name. The combination of the best units

ultimately produces something magnificent. In today’s world

fashion, trend is important. Experts of Denim Expert Limited

quite well can analyze the trend and, more significantly,

can forecast it. So what they offer is nothing but of the

best quality and trendy. Its production capacity is

360000pcs per month.

NICE DENIM MILLS

Nice Denim Mills Ltd is a world class denim fabric producer

in Bangladesh. It is currently the largest mill in the

industry (considering the fact it is integrated with weaving

and spinning). Apart from the state-of-the-art machines,

Nice Denim also boasts a highly skilled management team with

a wealth of experience in the denim industry. Nice Denim

strictly adheres to Fire and Building Safety standards and

is totally committed to maintain its water footprint. It

possesses a Biological Effluent Treatment Plant that can

treat up to 150 m3 of water per hour. It is completely a

composite (Fully integrated in a single compound) and

consists of Spinning, Weaving and Processing/Coloration.

Their total revenue crossed $1 Billion in 2013 and is

growing further every year. They have over 60,000 employees

in Bangladesh with diverse backgrounds. According to ILO,

they are the third largest employer in Bangladesh. In 1997,

started their illustrious journey with Noman Group. Today,

they boast 18 years of solid experience in the textile

industry. They have 28 subsidiaries with the most prominent

one being ZABER & ZUBAIR Fabrics Ltd. In the woven segment,

Z&Z is currently the largest in the world.

ARGON DENIMS LIMITED

Argon Denims Ltd was incorporated as a Private Limited

Company on July 13, 2006 under the Companies Act 1994 to

produce Denim Fabrics. The commercial operations of the

company started in March, 2008. The factory is situated at

Sreepur in Gazipur district of Bangladesh. The Company

mainly produces medium and premium range denim fabrics in

various weights ranging from 4.5 Oz to 13 Oz. Fabrics in

100% cotton, Cotton Stretch, Cotton Polyester and Cotton

Polyester Stretch are made in optics like Slub, Crosshatch,

Mixed counts and Regular with various weaves like Plain,

Twill, Broken twill and Herringbone offered in different

finishes like pre shrunk, flat, over dyed and coated. State

of art water effluent treatment and sewage treatment plant

ensures environment friendly operations; they are accredited

with Oeko-Tex and Organic Exchange certificates. Advanced

production equipment, strict quality control systems, robust

sample development capability and well established design

and marketing network contribute to their growing reputation

in this industry.

Capacities of the Companies

Name Production

CapacitiesEnvoy Textile Ltd. 50 million yards

per annumMahmud Denims Ltd. 1.4 million yards

per monthShasha Denims Ltd. 1.8 million yards

per monthBextex Ltd. 1,00,000 yards per

dayPartex Denim 2 million yards per

monthTitas Spinning and DenimCompany Ltd.

15,000 yards perday

Litun Fabrics Ltd. 5,20,000 meters permonth

Royal Denim Ltd. 7.5 million metersper annum

Sinha Denim Ltd. 8,00,000 meters perday

NASSA-Taipei Denims Ltd. 1.8 million yards per month

Denim Expert Ltd. 3,60,000pcs per month

Nice Denim Mills 32 million yards per annum

Argon Denims Ltd. 18 million yards per annum

Ha-Meem Denim 38 million liner meter

Findings

1. Denim has been playing a significant role in Bangladesh

economic development over the last few years.

2. Bangladesh is the second largest exporter of denim

after China.

3. There are 25 denim manufacturing organisations in

Bangladesh.

4. Bangladesh imports denim fabric from China, India and

Pakistan.

5. It imports 30mn yards and the demand is 60mn yards

monthly.

6. In 2013-14, it exported 46,74,057 kg denim according to

Bangladesh Bureau of Statistics.

Conclusion:

With changes in fashion and style, denim is used to make

clothes for all seasons for both men and women.

Westernization of work culture and the ensuing rise in

popularity of denim jeans as business causal wear, denim

jeans have presently become a necessity and an essential

wardrobe staple, as it provides comfort and has a longer

life span compared to other apparel. The demand of denim is

increasing world wide and it has created a new opportunity

for the denim industry of Bangladesh. Moreover global market

for denim is forecast to reach USD 64.1 billion by 2020. In

2013-2014, export of denim products to the USA and EU

markets rose by roughly 25 percent and day by day it is

increasing. The total denim production of the whole world

is approximate 7 billion meters and within these total 70%

fabric is produced in Asia. The industry in Bangladesh

presently has 25 denim producing factories with total

investment of over USD 834 million. Though it has demand of

60mn yards denim fabric per month it has a local production

of 30mn yards and it imports 30mn yards from China, India

and Pakistan. It is the second largest denim exporter after

China. The future of Bangladesh’s denim industry is bright.

To meet the growing demand of denim fabric to International

market, the local mills are investing hugely on state-of-

the-art imported machineries especially on the weaving &

processing side and setting up large plants in the country.

REFERENCES

1. http://www.thedailystar.net/denim-the-next-big-export-out-

of-bangladesh-7655

2. http://www.envoytextiles.com

3. http://www.mahmudgroup-bd.com/denim.php

4. http://www.shashadenim.com

5. http://www.bextex.net/index.php?p=about

6. http://www.partexgroup.com

7. http://www.knitasia.com/Company-Home-TSDL

8. http://www.litunfabrics.com

9. http://www.gmdu.net/corp-705390.html

10. http://sinhagroup.com

11. http://www.nassagroup.org/pages/content_detail/

textiles-2

12. http://m.thedailystar.net/business/denim-exporter-

sees-robust-growth-ahead-73345

13. http://www.bangladeshdenimexpo.com/bangladesh/

bangladesh-denim/

14. http://www.argondenims.com

15. “Denim Apparel Production In Bangladesh: High-End

Products at Competitive Pricing” IDLC Monthly Business

report (Volume 10, Issue 10, October 2014).

16. “BANGLADESH denim industry- POISED TO BECOME NO.1

EXPORTER IN THE WORLD” APPAREL VIEWS BANGLADESH/MAY - JUN

2014

17. http://www.nomangroup.com

18. http://www.hameemdenim.com

19. http://www.denimexpert.com

20. Retail Monitor, World Denim Market Report, Cotton

Incorporated, Research Date: February 4th, 2015

21. A SHORT HISTORY OF DENIM ©2014 Lynn Downey Levi

Strauss & Co. Historian