In the wake of the changing world demand, Bangladesh is on the right track of progressive higher demand for garments of quality brands due to the fiscal war among the large economies such as the US, China, the EU, etc. The sector offers great scope of expansion and doubling of the exchange earnings provided the Government becomes alert and provides the necessary fiscal and monetary support / incentives to local / strategic investors.
To take advantage of the emerging future opportunity, Bangladesh’ leading business conglomerate Square Group is investing in its group company Square Textiles for expanding its spinning capacity. Square Textiles has over 20 years of experience in yarn spinning and is one of the largest producers of knitting & weaving yarns in the country. Today it has one of the most sophisticated vertically integrated set-ups producing around 75 ton of yarns per day.
The textile and clothing sector, the largest manufacturing industry in Bangladesh, contributes more than 12% to the country’s GDP, generating about 5 million of its industrial employment, which includes 80% female workers, and accounts for 83.49% of the export earnings.
The spinning sector is a vital part as backward linkage of textile and clothing value chain, to stabilize supply chain and control the major costs. The products of the spinning are cotton yarn, polyester, synthetic yarn, woollen yarn and blended yarn mixed with polyester of different counts. Yarns are being used by the weaving sub-sectors like specialized textiles, handlooms and knitting and hosiery.
The private sector spinning mills can now meet around 100% demand for yarn at the domestic level as well as 95% of demand for yarn for export-oriented fabrics. In addition, almost 85% of cotton yarns and 50% demand for synthetic and blended yarn of export-oriented fabric producing mills are being met by private sector spinning mills.
Square Textiles’ focus is more on sustainable and eco-friendly products – Organic, BCI, Tencel, Re-cycle (cotton and polyester), etc. The company is developing more value-added products that are fashion trendy and higher-valued exchange earners.
Square Textiles production efficiency is 96.26%. In 2018, the company expanded its production capacity of 4,500 tons yarns per annum. This is expected to generate an additional turnover of around TK 100 crores this year. There are plans to further increase the production capacity of 3,000 tons per annum (yarn production and fiber dyeing facility), which is expected to further contribute about TK 72 crores to the turnover per annum.