Ha-Meem Group, a leading garment manufacturer, plans to invest $50 million in one year for the massive expansion works will involve the denim plant in Maona, said Managing Director AK Azad which will double its export receipts to $1 billion in the next six years. Ha-Meem chose to boost its denim production as the demand for the fabric is rising fast around the world.
At present, Ha-Meem Groupâ€™s annual exports stand at $535 million, and it counts retail giants like Gap, Esprit, American Eagle Outfitters, H&M, Abercrombie & Fitch, Kohlâ€™s, Tommy Hilfiger, JCPenney, Mango, Zara, Next, Tom Tailor and Oshkosh as its major buyers.
As per the expansion plan, a denim unit with a production capacity of 1.5 million yards a month has been set up and will go into operation from next month. Another one with the same production capacity will go into operation from June.
Currently, the group produces 3 million yards of denim fabric in a month, so with the two new units the total production capacity would reach 6 million yards.
Denim would be the next big business opportunity for Bangladesh as China is losing its market share due to higher costs of production and a lack of skilled manpower, Azad said.
China exports more than $270 billion worth of garment items in a year. If Bangladesh can grab even a minimum share of the shifted work orders from China, the countryâ€™s garment export will grow significantly.
Ha-Meem Group is also installing machinery to open a new factory in Maona to produce 2 million yards of woven fabrics in a month. The demand for woven fabrics is also high in Bangladesh as the local weavers can only meet 40 percent of the annual demand.
The rest of the demand for woven fabrics is met by imports mainly from China. Bangladeshi garment makers spend more than $4 billion for importing the woven fabric in a year.
Currently, Ha-Meem Group has 23 units, of which 13 are garment factories and the remaining are spinning, dyeing, garment accessories and finishing units.
Bangladesh already has some garment groups that either export $500 million worth of garment items in a year or are very close to this mark after undertaking expansion.
The garment and textile sectors have long been suffering from a shortage of gas. But, the gas crisis will come to an end next year as the government has assured that it has been drilling several gas wells across the country to increase the supply. Ha-Meem Group has already adopted some innovative ways to reduce the cost of production.
The group uses solar panels and modern machinery with high production capacity and has introduced lean production system to reduce the repetition in production cycle.
A report that is issued every week covers price statistics and objective analysis of the market trends on various textile value chains
A crisp report that is issued every month covers analysis of the price and market trends on various textile value chains
A weekly report covering market and price information on the entire chain of polyester along with online access to daily polyester chain prices.
One-time reports that are issued annually cover the demand and supply trends in individual products including polyester, nylon, acrylic, viscose, and cotton.
One-time reports that are issued annually cover the demand and supply trends in the individual country's natural and manmade fiber/filament industries.
Countries Served Worldwide