Bangladesh: denim destination

Third denim expo starts in Dhaka

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Landes, a denim label and accessory maker from Germany, is all set to establish a factory in Bangladesh in a year, as the company sees business potential here with the number of its customers growing.

The company has completed almost all processes to establish the factory at Uttara in Dhaka at an initial investment of $300,000 (Tk 2.34 crore).

“Our investment is small as our products are small,” said Davide Menini, sales director at Landes, at his pavilion at the third Bangladesh Denim Expo that started at Bashundhara Convention City in Dhaka yesterday.

His company also produces leather labels, metal parts and paper labels, mainly used in denim trousers.

“Bangladesh is a good destination for denim business, as China is losing its shine in this sector due to a higher cost of production and shortage of workers there,” said Menini, who has been doing business with Bangladesh over the last 10 years.

Potential customers browse around a stall at the third Bangladesh Denim Expo at Bashundhara Convention Centre in Dhaka yesterday. Photo: Palash Khan

His company supplies metal, paper and buttons worth more than $2 million a year to denim makers in Bangladesh.

Some other local and foreign companies are ready with investment plans for making accessories, as Bangladesh has strengthened its global footprints as a denim supplier.

Elif Sertkaya, managing director of Turkey-based DeriDesenetiket, a producer of denim accessories, wants to expand her business in Bangladesh.

“Bangladesh is a good place for denim as garment exports from the country are on the rise,” said Sertkaya from her pavilion at the expo.

The use of accessories, jeans badges and labels is on the rise along with growing apparel exports, she added.

Sertkaya refused to share her sales figures, but said: “The number is growing, as we are receiving a lot of positive responses from our customers over the last three years.”

“The denim sector will make further progress. I suggest talent and leadership grooming as it’s the base for the whole industry’s future,” said Roger Hubert, regional head for Bangladesh and Pakistan of Swedish retail giant H&M, at a seminar on the sidelines of the expo.

Moderating another seminar, David Hasanat, managing director and chief executive of Viyellatex Group, said Bangladesh is the most-green denim making country, as it is the lowest carbon emitter compared to other industrialised countries.

A foreign buyer checks quality of denim fabrics at another stall at the expo, which comes to an end today. Photo: Palash Khan

“Denim is an environment-friendly product, as it needs less washing and the products are more sustainable,” Hasanat said.

M Kamal Uddin, managing director of Raymotex, the sole agent of Indian Raymond denim in Bangladesh, said many local and international players are coming here either with investment plans or products, as the country is competitive for denim.

“The country is competitive because of price and workers’ skills.”

David Hasanat, managing director and CEO of Viyellatex Group, a leading garment exporter, moderates a seminar on the sidelines of the show. Photo: Palash Khan

Denim makers have either been expanding their capacities or making fresh investments for having higher prospects, said Kamal Uddin, who has been in this business since 1995. His company supplies one million yards of denim fabric a month in Bangladesh.

At the inauguration of the expo, Mostafiz Uddin, founder and CEO of Bangladesh Denim Expo, said 39 participants from home and abroad are showcasing their products this time at the fair, which will end today.

Of the participants, 14 are from Bangladesh and 25 are foreign companies, mainly from India, Pakistan, the US, China, Turkey, Singapore, Japan and Germany.

The fourth and fifth denim expo will be held in Dhaka in April and November next year, said Mostafiz Uddin, also the managing director of Chittagong-based Denim Expert Ltd.

A foreign participant registers the names of the visitors at her stall. Photo: Palash Khan

Bangladesh has become a major hub for sourcing trendy denim products for international retailers for its competitive pricing.

The country exports denim products and fabric worth nearly $3 billion a year, with the figure touted to hit the $5 billion-mark soon, given the positive response from retailers, said industry insiders. A total of 30 mills produce 21 million yards of denim fabric a month.

Investment in the denim sector also increased due to high demand; it will cross the Tk 7,500 crore-mark soon.

Bangladeshi entrepreneurs supply denim products to retailers such as H&M, Uniqlo, Levi’s, Nike, Tesco, Wrangler, s.Oliver, Hugo Boss, Puma, Primark and JC Penney.

Finished denim trousers are on display at a stall. Photo: Palash Khan
Source: The Daily Star