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“Directly buying from ginner or authorized organization can lessen sellers’ domination in pricing”

A visionary leader and successful business entrepreneur Md. Fazlul Haque, Founder and Managing Director of Ahmed Group, was born on 27th January 1957 at Sreenagar Upazila of Munshiganj District. He is creative, talented and a man of hard work. From a young age, he was passionate about business and entrepreneurship.

In 2001, he stepped into the world of business by establishing a garments manufacturing company called Sajib Fashion Wear Ltd. Through hard work and sincerity, he soon expanded his business into the textile spinning industry.

Fazlul-Haque-Israq-Spinning-Mills-Ltd
Figure 1: Md. Fazlul Haque, Managing Director, Ahmed Group (Israq Spinning Mills Ltd)

Currently, Ahmed Group consists of four companies, under the direct supervision of Md. Fazlul Haque. Their fundamental strengths lie in their strong profitability and quality production. Md. Fazlul Haque is known for never compromising with quality and always adapting to modern technology, which is crucial in their presence in both local and foreign markets.

He is actively involved with the leading trade body Bangladesh Textile Mills Association (BTMA) and currently serving as Vice President for the term 2021-2023. Previously, he also served as Director of the board for many terms and also held the similar position of Vice President (FY 2014-2016). As a dynamic board member, he participated in many local and international trade fairs and visited many countries with commerce ministry, different federations and chambers.

He is also engaged in several social activities. Currently, he is holding the Chair of Shamaspur Multilateral High School and President of SUJON, under Sreenagar Upazila of Munshiganj District.

Textile Today: Could you please share briefly on Israq Spinning Mills Ltd, a concern of Ahmed Group?

Md. Fazlul Haque: Within the Ahmed Group umbrella, there are 4 (four) units; namely Israq Spinning Mills, Israq Rotor Spinning Mills, Israq Textile Mills and Israq Cotton Mills Ltd. The units reside within the same campus that incorporates congenial environment.

We have had a long journey indeed. Even without global challenges, such a journey was not a bed of roses. By the dint of foresighted planning and significant contribution, Ahmed Group is marching forward. We have always been sincerely trying to improve the overall development of the country’s economy. Since its inception, Ahmed Group has been maintaining transparency and ethics in its business policy, following sound marketing strategy. Thus, we are determined to achieve further excellence. We are proud of our core values of integrity and fairness. Our Board of Directors are committed to achieving long-term prosperity and sound corporate governance.

Currently, more than 5000 employees are engaged in the production activity and our total production capacity is 1, 40,000 KG/Day including 12, 000 KG/Day Rotor Yarn. We have boosted our spinning processes by applying up-to-date technology and machinery to every phase of our production processes. We are also using advanced technology to ensure strict Quality Standards.

We usually use raw cotton imported from West Africa, India, Brazil, and if necessary, from others. We attach a great deal of importance to ‘Quality’. Our belief is ‘No quality, No achievement’.

We believe and trust that we will be able to prove our worthiness in this sector too. I am always remembered, accompanied with gratitude, for the continued support of our well-wishers, cotton sellers, yarn buyers and also all the people who are engaged in our organization. We are yours and you are ours. We welcome you all to visit our site and surely, your support will encourage us to go ahead.

Textile Today: How do you see the present condition of our spinning sector, especially demand-supply and contribution of Primary Textile Sector (PTS) in total export?

Md. Fazlul Haque: I think the present condition of the spinning sector in Bangladesh is very promising. There is no doubt that the primary textile sector has a large contribution to total export. More than 90% yarn demand for knit RMG & more than 35% yarn demand for woven RMG are met by the Primary Textile Sector (PTS). But we are not strong enough in the demand and supply structure as we are behind to diversify our product & market.

Textile Today: Could you please share details on your products and market diversification? Why are we still behind in producing high-value or fancy yarn as a whole? How can we contribute here more?

Md. Fazlul Haque: Currently, we are doing the following yarns- 100 % Cotton Carded Yarn, 100% Cotton Combed Yarn, 100 % Cotton Slub Yarn, 60/40 CVC Yarn, 80/20 PC Yarn, Organic (GOTS & OCS) Yarn, CmiA Certified Yarn, BCI Standard Cotton Yarn and Recycled (GRS & RCS) Cotton Yarn.

If we analyzed our yarn market then we found that we can support the knit yarn market at 100% and for woven markets at 60% to 70%. But we have a gap in the sweater yarn market, where 90% of yarn is being imported from China & other countries. Another gap is found in technical textiles, Medical textiles and Spandex yarn market & fancy yarn market. So I think it is high time to make a difference and come with product diversification.

Amzad-Monir-Fazlul-Haque-Israq-Spinning-Mills-Ltd
Figure 2: Photo captured while Amzad Hossain Monir, AGM of Textile Today covering Md. Fazlul Haque interview at his corporate office.

Textile Today: Many experts are telling the unstable yarn price frustrating knitwear makers and exporters and it is creating an unsustainable situation in orders given/taken. How do you see this matters?

Md. Fazlul Haque: Yes, yarn price is fluctuating as cotton price goes higher and in this situation. It’s very difficult for Knitwear makers and exporters to fix a contract with the buyers within the set prices.  Spinners are also bewildered, as the raw cotton cost is more than 70% of total costs and the cotton price goes higher and higher. So I think, if cotton prices come down with stability then the yarn market will be stable.

Textile Today: As more than 95% of raw materials of the PTS are imported, how can a sustainable supply chain be developed here?

Md. Fazlul Haque: Though Bangladesh is one of the largest raw cotton importers, we depend on intermediary sellers and this is why we are dominated by sellers in the pricing. It is still not focused on all aspects.

My point is, as we are importing more than 95% raw material of our total consumption we need to find alternative sources like directly buying from the ginner or the authorized organization like CCI of India and Abrapa of Brazil. Besides, if our Govt. take initiative to impose a G2G agreement policy then we may get a sustainable supply chain for sourcing raw material.

Textile Today: Many of the spinners said, the availability and cost of the spare parts is a big challenge for the spinners now. Can we develop the spare parts industry here to mitigate these challenges?

Md. Fazlul Haque: We import a huge quantity of spare parts for running our machine smoothly and for this we bear a huge amount of import duty. As an example when we import Gas Generator Spare Parts bear an average of 50-60% duty on parts price which is costly for us.  At this point, I would like to draw the attention of the apex body of the Bangladesh Govt. If our govt. consider this challenging issue and take initiative by giving us import benefit as SRO on spare parts then it will be cost-effective for the spinning industry.

Besides, to mitigate the challenge of the spare part we may take initiative to build up accessories industries like rubber cots & apron, spindle tape, ring traveler, ring cup, ring & simplex bobbin, sliver can and lubricants, etc.

Textile Today: What are the initiatives you have taken considering sustainability and human capital for your mills?

Md. Fazlul Haque: Sustainability and Human capital is an inseparable part of our industry. To ensure sustainable human capital we always focus on the development of skills and their capacity by giving proper training. We certainly believe that without ensuring the sustainable development of our manpower it will never be possible to maintain the profitability of our industry.

Textile Today: Do you have any new investment/expansion plans shortly? What is your suggestion for the new investors in spinning?

Md. Fazlul Haque: We believe in passion and innovation so we never stopped to cherish our desire to spread and enlarge our projects. We are aiming to start our 5th production unit with 80,000 spindles capacity. It will create employment opportunities for more than 2,000 people.  We are planning to produce high-value or fancy yarn in our 5th unit and we are very hopeful to come with this diversified production unit by 2021.

New investors in Spinning, no need to be doubtful about its potentiality in Bangladesh just be passionate about your dream!  To be a successful entrepreneur Learn, Learn and Learn as much as you can with a “Can Do” attitude. The new investor must be up-to-date with the current global situation.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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