Here are the Latest Happenings in Bangladesh Denim
Bangladesh is doing a lot with denim, including innovating, testing and elevating its offering—all things the future of the denim sector demands.
To get a sense of the latest in Bangladesh’s denim sector, Carved in Blue caught up with Envoy Textiles Limited CEO Tushar Tripathi, Square Denims Limited general manager of operations, Sayeed Ahmad Chowdhury, and NZ Denim Limited project director Jasim Uddin.
Carved in Blue: How has your business fared in light of the trade, political and global social issues like coronavirus? Have more companies been turning to Bangladesh?
Envoy Textiles Limited
Tushar: Well, I would say that prior to Sino-U.S. trade issue, denim manufacturing has been shifting to Bangladesh or other southeast Asia countries. Recent trade, political and social issues certainly accelerate this pace. We do receive more inquiries, especially after the spread-out of coronavirus in China, but I believe this is a temporary scenario. To stand firm in the global competition and to turn any opportunity into real sales, we have to sharpen ourselves in terms of product, price and service, I think this is fundamental.
Square Denims Limited
Sayeed:At this moment there are two effects in Bangladesh denim business. One is the trade battle between USA and china and other one is the coronavirus issue. Due to U.S.-china trade battle, Bangladesh is the best next alternative for the U.S. buyer to source garments as well as fabrics. For 2019-2020 growth of fabric sourcing for U.S. based buyer from Bangladesh is more than 15 percent compare to 2018. They try to shift fabric sourcing from Bangladesh as much as they can from China.
Secondly, coronavirus sent shivers through apparel supply chain. Already the raw materials fromis delaying at least 45 days and which severely affect the garment shipments. The factories in China now open but production is very slow as not sufficient workforce yet to join in factory.
NZ Denim Limited
Jasim: The impact of coronavirus in light of trade is [getting worse] day by day. If we are talking about the major construction projects currently going on in Bangladesh, they are surely going to have a bump. This means our GDP might be affected at the end of the fiscal year. China has been literally shut down from the world, which means the price of the raw materials will go up and we will be pushed to source from other alternatives, which may cause extra price and time. However, there are some positive signs emerging from the ashes as well. We, as the reports show, are getting more orders as the virus has been relentless and spreading more over the continents, due to the reason that brands are fearing this could be a longer epidemic than apprehended. Moreover, according to the World Health Organization (WHO), even seemingly when the virus would be under control and people would be going back to work in China and other countries, there could be a nuke blasting of the germs. So, that surely means in the long run, countries like Bangladesh, especially in textile and garments sector, would attract more orders, given we are not affected by the virus.
We, at NZ already seeing a surge in orders even from China, which is transferring orders in order to keep their business on along with direct orders from brands. So, this scenario surely tells us that more companies are turning to us.
Carved in Blue: What’s the appeal for companies now when it comes to denim from Bangladesh?
Envoy Textiles Limited
Tushar: There has been preconception that Bangladesh mills produce mainly basic denim fabrics. Now with the switch of the whole industrial chain to Bangladesh, the term ‘denim from Bangladesh’ came into being. It certainly carries higher expectations from customers in terms of product diversity, product innovation, service and response and sustainability issue, but at a fairly lower cost.
Square Denims Limited
Sayeed:Currently, there are 35 denim mills with a capacity of 465 million meters of fabrics per annum. Bangladesh can meet over 45 percent of denim fabrics with local capacity. On top of that, prices and quality of products were other factors to bring the buyers to source denim good from here. U.S./Europe denim products buyers want reasonable prices and shorter lead time in shipping goods. So, Bangladesh’s opportunity in U.S. and Europe market is very high as the country can meet over 60 percent demands of fabrics, which reduces lead time. Import duty in the U.S. market is higher compared to our competitors and if we can work here effectively in reducing tariff rate, the sector will continue to grow more.
We are grabbing more from the Chinese as they are leaving basic items, while the capacity of Bangladesh increased. In the denim industry, fabric and washing are two key elements to perform well, where Bangladesh is doing better. Bangladeshi denim makers have introduced the latest technology both in washing and fabrics manufacturing in improving the quality of goods. On top of that, the makers of denim are producing different types of denim products, while value-added products area is developing gradually here.
NZ Denim Limited
Jasim: As it is expected that more companies will turn to Bangladesh, especially to denim, it is our duty that customers don’t come here for a short stay. Rather, we must appeal them to stay with us longer and sustain. The following reasons can be put forward to them to stay and sustain with us in longer terms:
- Dependency to one market can and will surely lead to disaster as it’s happening now and Bangladesh can be the best second choice for them as we are No. 2 RMG exporter and No. 1 denim exporter in EU.
- Most of the textile factories have been heavily invested over last three years and have excess capacities to fulfill their production demands.
- Highest number of green textile and garment factories are now in Bangladesh, which ensures environmental friendly production, which is a concern for the world community and there is more in the pipeline.
- The availability of power and energy has been resolved that was big concern for customers even two years ago and factories getting adequate power supply which ensures timely delivery.
- There is no political unrest in the country for last 10 years, which has been a major problem in the neighboring countries, like India. That puts us in a better place.
Carved in Blue: What are the key environmental and social initiatives of your company?
Envoy Textiles Limited
Tushar: Envoy is the first denim plant in the world and the first textile plant in Bangladesh to be Certified LEED Platinum. In 2019, we were awarded the National Environmental Award by Bangladesh Government. Being the greenest denim mill in Bangladesh, we are proud to say that our social and environmental initiatives are not driven by outside forces but our own pro-active measures. Founded in 2008, our company Envoy Textiles Limited was tailored to be a world-class denim production base since its planning stage, with our own spinning unit and mill.
Equipped with the most updated machineries, Envoy Textiles Limited is the first Bangladesh mill using robe-dyeing and the pioneer in eco-processing. E.g. aero finishing, ozone finishing. We are also in the process of installing an Eco-Lab for providing garment processing/ washing solutions. The mill has a monthly production capacity of 4.5 million yards and has been serving the world’s renowned brands.
Today, sustainability becomes a fashionable propaganda, but in a socially responsible institution like Envoy Textiles Limited, it is simply integrated in every segment of the whole production process, from material procurement to machine acquisition, from technology adoption to waste emission and recycling. The plant is equipped with Caustic recovery plant and a complete rain water harvesting. We are now working on a project for “zero land fill”
Envoy Textiles Limited’s social responsibility efforts can also be visualized through its different measures both inside and outside the company. Let us just cite a few examples:
Internally, Envoy Textiles Limited offers a package of facilities to employees in plant and office premises, among which is the 24-hours self-service convenient store in the plant. Though without a storekeeper, the convenient store never losses any inventory nor money. Our hearty trust to every member of the company gives big return in terms of employees’ sense of belongingness, self-esteem and productivity.
Externally, Envoy Textiles Limited has been sponsoring a number of social activities and charity funds, among which is the set up and operation of the ICU of Dhaka Maternal and Child Care Hospital.
Square Denims Limited
Sayeed:Square Denims Limited (SDL) is committed towards sustainable environment and performing continual improvement of the environmental performance and conserving the natural resources as well as socio-economic development of the surroundings. SDL initiatives in details are as follows:
Environmental Performance to mitigate the impact:
Effluent Treatment Plant (ETP)
Caustic Soda Recovery Plant (CRP)
Solid Waste Management & Organic Fertilizer Plant
Rain Water Harvesting Plant
Energy & Heat Recovery System
Implement Reduce, Reuse & Recycle (3R):
Resource Conservation & ISO 14001:2015. Occupational Health, Safety & Environment: Risk assessment, mitigation plan & implement. Ensure safe sanitation and well environment.
NZ Denim Limited
Jasim: We at NZ are up to date with our social and environmental duties. Furthermore, we go extra miles when it comes to our worker satisfactions and being environmentally friendly. The social responsibilities we serve here are but not limited to:
- Investing more in 2020 to create new employments.
- Retaining current workforce by providing them trainings and proper recognitions when due.
- Giving employees good pay rise at the end of year.
- Counseling employees at the workplace about issues which will have social impacts, such as family planning, child education, disease awareness, good and healthy lifestyles, high morals, etc.
- Giving the employees the opportunity to raise their voice through participation committees or to join trade unions.
- Investing in local communities through funding to educational and health institutions, etc.
The environmental responsibilities:
- Continuously investing more to get the product greener by reducing energy and water consumption.
- Building ultra-modern state of the art technological ETP with 70% water reusing ability.
- Controlling the emission by setting up devices to a minimum limits.
- Offering a wide range of products where organic raw materials are being used.
- Minimizing chemical use in the production.
- Maximum use of daylight during day.
- Planning to start zero drain discharge (ZDD) production by the end of 2020.
Carved in Blue: What’s ahead for your company in 2020?
Envoy Textiles Limited
Tushar: How to upgrade and offer our customers more value-added products and services at competitive price is always our key concern. This year we are putting more emphasis on sustainable production processes to answer to the market’s emerging concern on sustainability.
Square Denims Limited
Sayeed:Square Denims started its journey from 2015, it is young but vision is very much different than the other competitors in Bangladesh. We are more focused on the value-added product, which [companies are] still not sourcing from Bangladesh. We are investing on R&D and update seasonal collection. Our vision is to move our buyers’ attention toward Bangladesh for value-added denims.
NZ Denim Limited
Jasim: In 2020 and beyond, like all other environmentally focused countries and industries, we are also focusing on sustainability by saving energy, water and green Earth. For this we, NZ Denim going with BFI (Better Future Initiative) slogan using bio-degradable polyester, recycled polyesters (pet bottle material), recycled cotton and other recycled natural fibers like Ecovero to keep the Earth clean and green and importantly focus on bio-degradability. We, NZ denim targeting to use 90 percent less water and do not to drain any hazardous chemical by the end of 2020. We will convert our products on ZDD (zero drain discharge) technology. Also, we are trying to go with the most sustainable authentic institute C2CPII for sustainable certification of Cradle to Cradle product. Our other activities would be:
- Being sustainable and flexible with changing fashion three/four times faster than before
- Speed with consistent quality becomes the first priority
- Providing one stop solutions to the customers
- Fast fashion business ethics and strategy
- Ability to adopt higher product mix and value-added processes
Carved in Blue: What does Carved in Blue mean to you?
Envoy Textiles Limited
Tushar: Thanks to Lenzing, Carved in Blue is an amazing information sharing platform for the industry.
Square Denims Limited
Sayeed:It’s really an effective and informative portal for denim business. There are some inspiring denim topics and success stories which encourage the young generation also.
NZ Denim Limited
Jasim: Carved in Blue, according to me, is the embodiment of my inner thoughts and imaginations, which become vivid on denim fabrics in both artistic and environmental ways. It is how our minds and thoughts are shaped and have an impact on this industry and tells the story of past and present and visualize the future.