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Local textile spinners see bright future ahead

Spinners going for expansion in a bid to capture more share in the local yarn market

In recent times, yarn and other fabrics demand in the readymade garment (RMG) sector is increasing as the work orders volume increased among the international apparel retailers and brands.

To capitalize on the boom, local textile spinners are looking to increase market share in the local yarn market by expanding their capacity or setting up new mills.

Figure: The new spinning capability will increase the investment in the primary textile sector to nearly $11 billion from $10 billion.

Local yarn market capacity

At present, local spinners can supply 80% of the raw materials needed by the knitwear segment and 40% of the woven segment.

According to data from the Bangladesh Textile Mills Association (BTMA), spinners have a combined capacity to produce 13.43 million bales of cotton each year.

But the recent COVID-19 pandemic and other various shortcomings, spinners produced 8.5 million bales of cotton annually.

Benefits of the local market

Apparel manufacturers are adamant about domestic yarn and fabrics due to shorter lead-time, better quality, and private consumption. Pushing the demand for locally manufactured yarn and fabrics higher.

For example, it takes around 20 days to import raw materials from countries such as China and India.

Whereas, sourcing from the local market is much more convenient for the RMG makers.

Moreover, Bangladesh needs a lot of diverse raw materials as local apparel makers are diversifying their product basket to include denim and artificial fabrics.

New investments

In spite of COVID-19, spinners invested about Tk 19 billion earlier this year. In addition, within the next two years, 3 new spinning mills will go into action. The new spinning capability will increase the investment in the primary textile sector to nearly $11 billion from $10 billion.

And some of the current spinners plan to increase their capacities to meet the growing demand.

According to a BTMA high official, the spinning industry will be able to produce 16 million bales of cotton within the next two years after the new mills will go into production.

75% of the investment will go to the spinning section, while the rest 25% is will go to weaving, dyeing, finishing and sizing sections.

Given below are some of the spinning mills that are increasing their capacity:

Jinnat Spinning Mills Ltd (JTML), a concern of DBL Group, is one of the new millers set to go into production. JTML will invest $83 million, and it will be functioning by January 2023. The new mills will have 56,544 spindles to produce 840 rotor drums, 31 tons of ring yarn, and 7 tons of rotor yarn every day.

Karim Tex Ltd will invest Tk 6.76 billion to produce 80 tons of yarn a day by 2023.

While Mahin Group is investing nearly Tk 5 billion to produce 60 tons of yarn per day by 2023. Then its spindle capacity will increase by 55,000.

Viyellatex Group has installed additional spindle capacity to take it to 132,000 spindles from 42,000.

Mohammad Ali Khokon, President, BTMA said to media, “We can install an additional two million spindle capacity even in the next one year.”

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

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