Dhaka Hats & Caps: Strong emergence of an indigenous player

Hats, caps and millinery, an important segment of the apparel industry, is all set to touch US $ 7.7 billion mark by 2020 with Asia Pacific region leading the future growth. Though the adoration for hats is waning, the demand for caps is growing, thanks to the increasing popularity of the caps among the non-athletes as a casualwear accessory and sun protection gear amidst growing fear of melanoma skin cancer and also to the increased discretionary spending on apparels and accessories in countries such as China and India, coupled with growing volume of affluent middle-class populace. 

Dominated primarily by China and Korea – Dada Corporation (has global market share of 45 per cent; US $ 100 million worth exports yearly and factories in Indonesia, Vietnam, Bangladesh and China), Yapoong Inc. (has factories in Dominican Republic, Vietnam and Bangladesh, and exports US $ 100 million worth of hats to over 60 countries), and Mainland Headwear Holdings Limited – are few of the major players in the segment. Considered to be difficult to manufacture, there are very few in Bangladesh with the skill, expertise and technical know-how to manufacture caps and millinery, confidently.

Dhaka Hats & Caps is one such company which is slowly emerging as a serious homegrown contender, though it is early days for the company to take on the big brothers yet. Started by Jahangir Alam Sheikh, CEO of the company, in 2004, Dhaka Hats & Caps produces diverse range of headgears – new era style-size fitted hats, snapback caps, trucker caps, promotional caps, dog ear caps and beanie, to name some. Sheikh’s three-year stint with Dada and subsequent work experience with Seoul International Ltd. (a 100% export-oriented hat and cap manufacturing company established by South Korean investors), came in handy in launching the new entity. “I was a pioneer member of the Dada Bangladesh… During my days in Dada, it was the best and the biggest cap and hat manufacturer in Bangladesh with US $ 4 million exports per month. However it has slowed down now with Dhaka Rea (another Korean company) emerging as the frontrunner, lately,” maintains Sheikh, whose embroidery unit, equipped with Japanese Tajima and Barudan 20 head 9 auto-colour embroidery machines, is capable of producing high-quality 3D and flat needlework and embellishment on cap panels.

Despite being low on order intake (150 to 10,000 pieces) as well as production capacity (15,000 caps per day), Sheikh is content with the FOB of his hats and caps, which ranges between US $ 2 and US $ 50 per piece. He is now thinking of BMRE (Balancing, Modernization, Rehabilitation and Expansion) of the factory to make it one of the most modern and well-equipped facilities specializing in custom-made hats and caps in the near future. With an annual turnover of US $ 1 million and catering to names such as Carm ELLE (Swedish), Hall Apparel, besides many others, Sheikh’s focus predominantly is now on exclusivity and uniqueness in terms of quality, design and material, to guarantee customer satisfaction.