‘Blue is the New Green’. This is part of Shasha’s philosophy and unique trademark that sets it apart from the global and local industry leaders. Since the very beginning, the leading textile company of Bangladesh, Shasha Denims Ltd. (SDL), has been highly conscious on sustainability. As such, it leads the way ‘Blue is the New Green’ through extensive research, where at every level of the denim making process, the company thinks of the direct and indirect effect on nature.
Going a step further than using organic cotton, reused cotton and environmentally friendly fabrics such as Tencel, SDL’s chemical treatment methods have resulted in reducing the percentage of water loss by 60-80%, which is truly a breakthrough in denim manufacturing.
Since 1996, SDL has been marching forward and now has positioned itself as one of the leading 100% export-based denim manufacturers in Bangladesh. It produces denim fabrics weighing from 4oz/yd2 to 15oz/yd2 for denim jeans. Its revenue stood at Taka 5141.25 million in 2018.
SDL has three subsidiary companies – Energies Power Corporation Ltd. (EPCL), Shasha Textile Ltd. and Shasha Garments Ltd. SDL is a trusted and most preferred source for global buyers and retailers. Currently, it manufactures fabrics for the globally reputed brands such as H&M, O’STIN, Esprit, Debenhams, Marks & Spencer, LPP, Pull & Bear, S. Oliver, Zara, Bestseller, River Island, etc.
SDL’s current production capacity is 21.6 million yards per year. The company which is currently running at full capacity has made significant investment in its new manufacturing facility which is expected to further boost its future growth.
SDL has embarked on a journey to widen its capabilities for becoming larger and better by introducing new technology, diversified products portfolio, new sales teams and channels as well. An exclusive and most modern indigo dyeing machine has been installed in the existing factory for more production that saves 60% water and 40% chemicals in process in comparison to any other conventional dyeing machines. This is the first such installation in Asia.
Acquisition of EOS Textiles
In 2018, the company acquired EOS Textiles for an estimated value of Taka 48 crores. This acquisition will further fuel SDL’s dream to become the world leader in the denim industry. Shasha Denims will own 40% shares of EOS Textiles and the remaining 60% will be owned by Shasha Spinnings Ltd.
EOS Textiles Mills Ltd., a sister concern of the world reputed Italian major Berto E.G. Industria Tessile S.r.L., is a 100% export-based textile company. SDL is planning to further expand production capacity at the EOS facility.
SDL raised Taka 175 crores through an IPO, of which the company has already invested Taka 145 crores in the new plant and machineries which have already started commercial production. The balance amount of Taka 30 crores was used for acquiring EOS Textiles. SDL hopes to leverage on the expanded capacity to propel its future growth plans.
Outlook
The high consumption of denim by fashion connoisseurs globally now offers a new opportunity for Bangladesh. The industry in Bangladesh presently has 29 denim producing factories with total investment of over $834 million. The monthly production of denim stands at 30 million yards while demand is for nearly 60 million yards. The balance demand of 30 to 35 million yards per month is met by China, India and Pakistan.
Moreover, the global market for denim is forecast to reach $64.1 billion by 2020. The global denim production is approximately 7 billion meters, 70% of which is produced in Asia.
The future of Bangladesh’s denim industry is promising. The shift of orders from China and the rise in production cost in competing countries will help the Bangladesh denim industry to grab a bigger market share.
To meet the growing demand of International market, Bangladesh companies are investing on state-of-the-art imported machineries, especially for weaving & processing, and setting up large plants within the country.
SDL has been adopting a two-pronged strategy for growth. The company has been expanding capacity by investing in the best and most environment-friendly global technology for denim manufacturing. Parallelly it has also been acquiring companies which complement its existing business. The company is confident of maximizing its revenue by higher capacity utilisation and high-quality products.
Parveen Mahmud’s outstanding leadership
Ms. Parveen Mahmud is the Chairperson of Shasha Denims Ltd. and Micro Industries Development and Assistance Services (MIDAS), a pioneering organization for promoting women entrepreneurship. She is also the Founding Managing Director of Grameen Telecom Trust. In her varied professional career, she has been motivated by social innovations, entrepreneurship and sustainable development at the grassroots level.
Ms. Mahmud studied in Bangladesh and in the UK. A Fellow Member of the Institute of Chartered Accountants of Bangladesh (ICAB), she is the first female council member, office bearer and was the President of ICAB. She is serving the ICAB Council for the third term. She was also the first female board member of the South Asian Federation of Accountants (SAFA), an apex accounting professional body of SAARC.
She started her career with BRAC, and has served as the Deputy Managing Director of Palli Karma-Sahayak Foundation (PKSF), an apex institutional building, employment generation and funding organization for microfinance. She was a practicing accountant and a partner at ACNABIN, Chartered Accountants, the representative firm of Baker Tilly International.
Ms. Mahmud currently serves several Boards, including Grameen Danone Foods Ltd., Grameenphone Ltd., Manusher Jonnyo Foundation (MJF), RDRS, CAMPE, and BRAC International, etc. She chairs the Finance and Audit Committee of BRAC International and Linde Bangladesh Ltd. She is the Advisory Committee member of the People’s Voice: Strengthening SDG Implementation in Bangladesh. She is also the Vice President of the Bangladesh Federation of Business and Professional Women (FBPW), Dhaka, and is a member of the International Chamber of Commerce (ICC), Bangladesh. She is also the Board member of Transparency International Bangladesh and Syada Anjuman Ara Girls School, Kumilla.
Earlier, Ms. Mahmud served as the Chairperson of Acid Survivors’ Foundation. She was also the Vice Chairman of the Under Privileged Children’s Education Program (UCEP), Bangladesh. She has also a member of the National Advisory Panel and was Convener, SME Woman’s Forum for SME Development of Bangladesh, and was a Founding Board Member of SME Foundation.
Ms. Mahmud is an Honorary Member and Mentor of TalentNomics Inc., India, which promotes the welfare of women leaders globally. She is the Advisory Group member for GRI South Asia. The Commonwealth Secretariat has identified and chosen her for a case study in the book “Championing Women Leaders Beyond Sponsorship” published by Palgrave Macmillan, a division of Macmillan Publishers Ltd. She received Begum Rokeya Shining Personality Award 2006 for women’s empowerment from the Narikantha Foundation, and Lions Club International honoured her in 2011 for being the first female President of ICAB.