50 Star US Inc.
There were a lot of political and economic ups and downs at the end of 2023. There has been a global economic slowdown, particularly in Europe and America, the two major markets for Bangladesh's textile sector, where over 70% of the country's apparel is exported. In 2023, there is a significant investment in Bangladesh's apparel industry despite the global slump.
In an effort to capitalize on the expanding potential of the apparel industry, 134 new ready-made garment factories were established by Bangladeshi businesspeople last year. It is anticipated that the majority of these firms will begin production this year. The Badsha Group of Industries, Pacific Jeans Group, Ha-Meem Group, Sadma Group, and Beximco have invested in 2023 to diversify their exportable goods, according to membership statistics from the Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
The Badsha Group has allocated Tk 800 crore towards the establishment of a state-of-the-art Pioneer Denim factory in Madhavpur, Habiganj, with an annual export revenue target of $700 million. In 2024, the factory will begin large-scale manufacturing, employing at least 15,000 people. As of right now, the organization has employed about 25,000 workers. In Chittagong EPZ, Pacific Jeans has also contributed $31.75 million to Pacific Apparels Limited. The new facility will produce high-end clothing items such coats, jackets, blazers, suits, jeans, and casualwear. In the following three years, it is anticipated that this new unit will provide jobs for nine thousand individuals. When fully operational, this location's exports should reach $250 million. Ha-Meem Group, which prioritizes diversity over capacity expansion in the apparel industry, introduced three new production lines in April 2023 and intends to grow to 16 lines. Faruque Hassan, President of the BGMEA, claims that Beximco Group has the most factory memberships over the past two years. The Sadma Group has approved three BGMEA permanent memberships for 2023. Three thousand people will work for the company's knit composite Appropriate Apparel, and two thousand more will work for Mouchak Apparel. The group aims to reach a turnover of $250 million by 2024, with a total workforce of 18,000 employees. Currently, the turnover is $100 million.
The Indet Group is investing approximately Tk 400 crore to develop a green industrial park. By June 2024, the industrial park should be operating. Within the same space, the park will serve as a comprehensive source for packaging and accessories. In order to increase its capacity for producing knit composites and sweaters, Team Group is investing about Tk 1,800 crore. In addition, additional facilities will be established, such as a denim garment unit, a zero discharge washing plant, and an outerwear factory that will produce textiles based on synthetic fibers and accessories. Significant investments were also made by DBL Group, Shasha Denim, Windy Group, and Nipa Group.
Industry sources claim Bangladeshi clothing has enormous potential on the international market. Because the world's largest consumers are shifting their attention from the Chinese market to those of other nations, particularly Bangladesh. As a result, during the past two years, substantial investment has increased in Bangladesh's garment industry. However, there were 26 percent fewer factories established in 2023 than there were in 2022 (182 new factories), with the numbers being 61, 81, 58 (corona years) and 86 in 2018, 2019, 2020, and 2021, respectively.
The major textile sector in Bangladesh, which saw essentially no investment, was the most severely impacted sector in 2023. A Narsingdi spinning mill unit only announced that it would invest Tk 700 crore in the manufacturing of cotton and synthetic fibers, but the plant would be established this year. Nonetheless, in 2021, the industry's entrepreneurs set a goal of investing roughly $2.5 billion by 2023 to modernize and expand 12 existing textile units in addition to establishing 13 new ones in order to fulfill the growing demand. Based on data from the Bangladesh Textile Mills Association (BTMA), of this, 14 new units were constructed in the primary textile sector in 2022 with an investment of Tk 4,148.14 crore.
However, despite a strong demand for materials from clothing exporters, investment in Bangladesh's dying industry has decreased. There were no new dyeing facilities established in the nation in 2023. Monsoor Ahmed, the chief executive officer of the Bangladesh Textile Mills Association (BTMA), claims that despite growing expenses and the energy problem, investment in the industry has not increased.
Ten international corporations made the decision to invest Tk 2,000 crore in the manufacturing of textile chemicals in 2023. Among these, CHT, a chemical firm with headquarters in Germany, invested $8 million to build a factory at Sonargaon, Narayanganj's Meghna Industrial Economic Zone. Initially, textile chemicals will be produced at the 2.2-acre plant. In a relatively short amount of time, CHT will create the chemical in an entirely environmentally benign manner and make it available to traders from Bangladesh through back-to-back LCs.
The Dysin Group, a prominent distributor and maker of dyes and chemicals in Bangladesh, has purchased 10 acres of property in the Bangabandhu Industrial City Economic Zone from Beza. The company intends to invest $13 million in the establishment of a textile chemical facility in Bangladesh.
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