Industry analysts have been upbeat about Bangladesh gaining fresh grounds in overseas denim market with fashion and higher end products.
Already an important player in the $60 billion plus global denim-wear market, Bangladesh now export jeans and other denim products worth at least $3.5 billion or worth Tk 24,500 crore annually mainly to the US and EU markets.
Moreover in recent times, retailers and wholesalers from Japan, Turkey, India, and even China are switching to Bangladesh which they started to consider as a reliable source for finely stitched wears at competitive prices.
Industry insiders told New Age that at least half of the 22 local denim manufacturing units are doing or designing expansions now while, early this month, global denim leader Arbind announced to set up a three-million yards plant in Bangladesh.
Partex, the largest local player, having two million yards capacity, is installing equipment to enhance output to five million yards and to be one of the world’s largest denim makers.
‘Global denim market is inviting Bangladesh now for more shares with shift of sourcing from China by a section of global importers,’ said Showkot Aziz Russel, managing director of Partex Denim.
Investing Tk 450 crore in its expansion, Partex Denim has procured advanced technology from Europe and America.
‘We are already making fashion denims--coated, mercerized and with many advanced applications,’ Russel said, adding that their expanded capacity would help churn out modern fashion denims.
Bangladesh denim industry got off the ground nearly two decades ago and continued with basic denims. But in the last couple of years, some manufacturers installed capacity for developing mid-range and superior grade denims.
Fashion denims like that used lycra and spandex fibres are now being produced in the country and the industry is going for valued-added dying and finishing in denims with laser applications, replacing the age-old sand blasting.
The industry’s total output is now around 300 million yards and still third of that is imported. High value fashion denims are mainly imported from India, Pakistan and China.
India’s Arbind categorically wants now to maintain its market share by local production.
Talking New Age, Aamir Akhter, CEO of Arbind Denim, said their proposed plant at Comilla EPZ would initially produce one million yards, but would expand in phases. Arbind would produces mid-range and premium denims, he said.
‘The export-oriented market of denim fabrics here has been experiencing sound growths of 10 to 12 per cent for the last several years, but there are more opportunities,’ said Akhter, defining Bangladesh as a lucrative place for denim makers.
Anwar-Ul-Alam Chowdhury Parvez, chairman of Evince Textile Group, said Bangladesh had earlier been labeled as a good source for only basic denims, but the buyers’ perception is now changing with fresh opportunities.
‘EU and US buyers are now trying local suppliers with orders for fashion denims and successful deliveries are inspiring them to come up with fresh orders,’ said Parvez, who is also doubling his denim plant’s capacity to 1.6 million yards.
Ranah George Abraham, a sourcing expert, said that responding to the changing demand of global markets and to sustain there Bangladesh’s denim industry is gradually going for producing improved products. ‘It is a very good sign.’
Ranah however said that Bangladesh’s industry would have to go many miles more as, he said. ‘Denim development is not only a matter of machinery-- it is the expertise of an industry.’
‘If local industry continues improving products, an export market of several billion dollars more is already ready for Bangladesh,’ Ranah, who is now based in Dhaka, said.
‘Increased availability of fine denims and eventually increased shipment of high-value jeans and denim-wear may help Bangladeshi suppliers to take some shares from the Turks, who are famous in the global markets for premium quality denims,’ said Ranah.
Abdus Salam Murshedy president of the Bangladesh Garment Manufacturers and Exporters Association said the industry is just crying for gas supply as expanded facilities for denim dying and finishing would require huge gas.
‘We see a brighter denim future for Bangladesh as global importers have realized that Bangladesh is not only competitive in price but fine stitches on denims are available here,’ said the leader of the garment exporters.
- New Age, Wed, 20/10/2010
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