Having a strong footprint in the global denim market, Bangladesh continues its dominance in this segment as the leading denim exporter to the EU and US. But to achieve the target of US $ 100 billion apparel exports by 2030, the industry needs to double denim exports too.
As per various reports, the global denim market is worth around US $ 64.5 billion and it is projected to rise to US $ 76.1 billion by 2026, growing at a rate of 4.8 per cent annually. Due to changes in fashion and denim as a category being more flexible and comfortable, Bangladeshi exporters currently supply denim products worth nearly US $ 5 billion worldwide. This clearly shows Bangladesh’s growing prospects in the denim segment. Not to forget the rising trend of knitted denim which again is in favour of Bangladesh as it has a stronghold on knits.
Massive expansion taking place
Expansion in jeans manufacturing and fabric production is the core focus for the industry as it is well aware that vertical operations will make them cost-effective, more agile to deliver in shorter lead time. The thrust on in-house design developments will give them additional leverage.
Going to complete five decades since its inception, Badsha Group of Industries, with a turnover of US $ 258 million, plans to set up two new factories in Habiganj. Its vertical project includes a spinning mill as well as a factory for denim jeans manufacturing. As part of the latest development, Taka 8 billion will be invested in setting up the garment factory Pioneer Denim Ltd., for denim product manufacturing. The company has already invested Taka 15 billion in Pioneer Denim Ltd., to produce 7 million yards of denim fabrics per month. It started manufacturing denim fabrics in 2017 and produces 60 million yards of fabric annually and aims to reach 100 million yards by 2025.
Md. Badsha Mia, MD, Badsha Group, working with top brands and retailers like Inditex, H&M, C&A and Next, claims that they have sufficient work orders despite the depressing global market scenario. He believes that good prospects have been generated from Western buyers’ post China+1 strategy and it’s high time to make the most of the opportunities.
“Our focus is now on washing and sewing,” says Badsha Mia.
Also moving toward massive growth in denim jeans is Pacific Jeans Ltd., aiming to increase denim production by more than 12 per cent this year compared to 2023, when it produced 45 million pairs of denim jeans. The company is one of the largest suppliers of denim jeans in Asia and Syed M Tanvir, MD of the company thinks that the outlook for denim in 2024 is better than last year, so the export of denim items is expected to grow this year.
Pakiza Group’s recently started denim production unit includes a four-storeyed building with total floor area encompassing approximately 50,000 square feet per floor.
Akib Rahman, Director, Hams Group shares the same views saying that the recent sentiments are not enthusiastic but the future is going to be good as and when there will be recovery across the globe. Having a washing operation already, the company entered in denim segment almost five years ago and now it is supplying to prestigious brands and retailers like Primark, Walmart, New Yorker, Splash and Kohl’s.
Armana Group, considered amongst the bigwigs in denim in Bangladesh, has about 60 per cent – 65 per cent of its business coming from denim and its Director of Operations, Sandeep Golam opines that looking at the overall picture, it’s steady.
As Bangladesh’s thrust is growing on emerging markets, the same applies to the denim segment too as denim entrepreneurs see more opportunities in the Middle East, India, Australia and Russia as these countries not only have strong demand, but also provide incentives to Bangladeshi RMG manufacturers to work with them.
Sustainability: good for all
The sustainable initiatives of Bangladesh RMG industry and especially that of denim companies are behind to none as various companies are on their toes for sustainable production, be it fabric production, washing or jeans manufacturing.
Pioneer Denim is a USGBC LEED certified platinum-ranked factory that achieved 83 points out of 110. Bitopi’s Tarasima Apparels Ltd., is one of the highest-rated green factories as far as existing structure is concerned and is a leading maker of denim and non-denim bottoms.
HAMS Group follows ZDHC and uses Jeanologia’s Environmental Impact Measurement (EIM) software as a platform, developed to monitor the environmental impact of finishing processes in an efficient and economically viable way.
MBM Group’s washing plant with a capacity of more than 21 million pieces annually is also LEED Gold Certified and has accreditations like Alliance, Buet, RSC, Better Work, OEKO Tex-100, GOTS and HIGG FEM 3.0.
“Our focus is primarily on circularity and sustainability. We are offering branded fibres from Lenzing Modal® and TENCEL®, making denim exceptionally comfortable to wear and sustainable, all at one go,” says Shams Mahmud, MD, Shasha Denims Ltd. Part of Better Cotton Initiative, Shasha Denims also uses recycled polyester and stretch materials.
| Bangladesh denim goods export to US
In January-October period of 2023, it was worth US $ 556.08 million In 2022, it amounted to US $ 943.70 million IN 2021, it was US $ 798.42 million and in 2020, it was US $ 561.29 million |
Focus on both premium and basic segments
Most of the jeans-producing companies in Bangladesh have focus on basic and premium segment. Hams Group tries to keep the ratio of 70: 30 in volume and premium segment. Overall, its jeans manufacturing is 7 lakh pieces per month.
To get more price, companies are focusing their thrust on value-added or premium segments as Farhan Azim, Managing Director of Azim Group, Bangladesh’s second oldest export-oriented RMG manufacturer, says, “The brands today are asking for wider variations of styles, colours and washes over a given season, which requires us to tweak and adjust our production effectively.” Azim Group is a renowned name in Bangladesh’s denim industry.
MBM Group also caters to a diverse segment of clientele even if its focus is more on the premium segment where opportunities are more because many premium brands have now entered Bangladesh to fulfil their sourcing needs. Along with jeans, the company also offers a large range of denim tops, denim shirts, jackets and various denim items for children.
With its latest washing plant, the company has been able to impart a lot of value in denim offerings from the wash (finish) perspective, using laser technology and sustainable finishes.
Despite the drop in total export values and units, the unit prices saw a more modest reduction, decreasing by only 5 per cent during the same period. However, when compared to UVRs registered in 2021, unit prices upped by 16.19 per cent in 2023, which shows that the country is moving more towards producing value-added denim products.
Farhan also adds that for denim raw materials, the impressive stretchability and hand feel of cotton-lycra blended fabrics is evolving. The rise of fibres with durable and sustainable properties such as hemp and the emergence of unconventional fibres like banana and pineapple leaves, which can produce quality fabrics and fetch greater export revenues, is inevitable.
At the same time, innovations such as laser machines replicating traditional denim washes and ozone machines reducing chemical discharge and water consumption, have propelled denim manufacturers in Bangladesh to reach new heights.
For example, Shasha Denims has perfected the art of making all types of denim fabrics from 4.50 oz to 15.00 oz, providing its global customers with a range of colours from the lightest shades of indigo to the darkest hue and a range of effects and textures such as the smooth indigo surface and the salt effect, besides using recycled polyester and stretch materials.
A major challenge for the denim manufacturers is that even if many premium brands have now come to Bangladesh to fulfil their sourcing needs, prices offered by them are still very cheap, which is a big paradox. But at the same time, a chunk of industry is hopeful that things will improve in the days to come as the earlier perception of Bangladesh as a cheap sourcing destination is changing and this has led manufacturers to focus more on the clients that are ready to pay ethical pricing for quality products.
| Leading brands sourcing denim products from Bangladesh
Levi’s; Diesel; Wrangler; G-Star; s.Oliver; H&M; Uniqlo; C&A; Tesco; Walmart; Hugo Boss; Gap; American Eagle Outfitters; Lee; JCPenney; Kohl’s; OVS; O’Neill; Pepe Jeans; GAS |
Fabric production needs to increase
Bangladeshi denim industry has come a long way as the kind of local fabrics that denim mills are producing today and the fabrics which they were making around five years ago have a huge difference
And this was possible due to investment in R&D, innovations, machinery, skilled people and improvement metrics.
Currently, there are 42 denim mills in Bangladesh producing 900 million yards of fabrics annually. Industry is strongly of the view that as most mills were established over the past decade, they have had to increase their capacity due to demand from the global market.
Some of the fabric mills were already on an expansion mode earlier. Shasha Denims announced to invest an estimated Taka 155 crore to expand its production capacity in Dhaka Export Processing Zone (DEPZ). It has a production capacity of 2.10 million yards per month to produce different types of denim fabrics.
Envoy Textiles’ new unit is also targeting an annual yarn production of 3,600 tonnes to be used primarily for in-house production of denim fabrics while also adding a new unit which will be more energy-efficient and automated.
Argon Denims (Evince Group) boasts a wide range of weaving, colour combinations, quoting, different finishes and mercerisation using about 160 state-of-the-art high-speed and dobby Picanol looms from Belgium, finishing machines from Italy, warping and dyeing from Taiwan, mercerising machines from India. The group’s focus is on denim and other suppliers for top retailers like H&M, Zara, Kiabi.
On the other hand, many companies having a complete thrust on jeans manufacturing don’t want to go for denim fabric production like Pacific Jeans Ltd., which despite being the largest denim apparel manufacturer in Bangladesh, does not have its mill. The company believes that to evolve in the global landscape, it’s important to partner with fabric suppliers across geographical locations to get appropriate price and quality and also adherence to timely delivery.
Normally jeans manufacturers import fabric for premium jeans from China and India while for volume business, it is sourced from local mills.
| Leading denim players in Bangladesh
Standard Group; Vintage Denim Studio Ltd.; AR Jeans Producer Ltd.; Mahmud Denim Ltd.; Meghna Denims Ltd.; Universal Jeans Ltd.; and MBM Jeans Ltd. |
“The value creation within locally produced fabrics, driven by collaborative efforts between fashion brands and Bangladeshi mills, has significantly enhanced local fabric sourcing for Pacific Jeans by at least 60 per cent,” says Tanvir.
The industry is also of the strong view that it is not about producing large quantities of denim fabrics locally, it’s about the value creation that the mills have been able to do within the fabrics produced locally out of overall demand.
Various fashion brands are working in tandem with the Bangladeshi mills to develop the right kind of fabrics and now they have increased the sourcing of products made out of local fabrics.
It is worth mentioning here that a few Bangladeshi companies are actively into denim fabric exports just as Shasha Denims which exports to Latin America, South America, Vietnam and even Pakistan.
“Local mills still need to focus more on developments so they can offer fabric for the premium segment also. This will help jeans manufacturing in a big way,” says Akib who plans to get into the production of denim fabric soon as it will make him a cost-effective jeans manufacturer and will also support him in delivering quickly but it will depend on the overall economy and business scenario.
