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An overview of Bangladesh spinning industry

The spinning industry in Bangladesh is witnessing gigantic investment as local entrepreneurs are either developing their production capacities or setting up new units as the demand for garment raw materials is ascending. In Bangladesh, there are almost 500 spinning mills. Native spinners have a joint capacity to process nearly 13.43 million cotton bales per year. But due to some production drawbacks, sometimes they cannot work with full steam.

Bangladesh-spinning-industry
Figure: The spinning industry in Bangladesh is witnessing gigantic investment as local entrepreneurs are either developing their production capacities or setting up new units.

Apparel sector and spinners

Bangladesh needs a lot of diverse raw materials as local apparel makers are diversifying their product list including denim and artificial fabrics. The country’s local spinners are capable to supply 85% of the raw materials required by the knitwear sector and 40% of the woven sector. It looks like local spinners are trying to expand their footprint in the market. Garments manufacturers prefer locally made yarn to reduce long-lead-time as they find it difficult to supply garment items on time when they are manufactured from imported yarn and fabrics. Now, most of the local spinners have export-oriented garment factories. So, they consume the yarn and fabrics according to order.

Opportunity lies in spinning mill

Bangladesh’s spinning sector witnessed a major investment step in the year 2021 as entrepreneurs set up 26 new spinning mills to meet high demand despite uncertainty in the global apparel supply chain back to the pandemic. 80% of the yarn produced at the spinning mill is purely cotton yarn, while the remaining 20% is mixed yarn from cotton and artificial fiber. The demand for man-made fiber garments item is getting popular worldwide. The demand for cotton yarn and other fabrics in the garment sector is increasing on the back of an increased volume of work orders from international brands.

Monsoor Ahmed, Chief Executive Officer of the BTMA said,” Majority of the existing mills are expanding their capacity almost every month because of higher demand from local garment manufacturers and exporters.”

According to data from the Bangladesh Textile Mills Association (BTMA), Entrepreneurs invested Tk 5,970 crore in 26 new manufacturing plants, adding more than 745,400 new spindles to their combined capacity.

Bangladesh spinning industry-overview

In 2020, Bangladesh imported $1.32 billion worth of knitted fabrics, $2.76 billion worth of woven fabrics, and $0.10 billion worth of yarn for the local garment industry.

Maximum apparel factory owners have a lot of orders from the international clothing sector and brands. Following the demand, now spinners are investing in the spinning sector to supply adequate yarn. Good quality products, Quick lead-time, and private consumption are highly pushing the local demand for yarn and fabrics.

If local garment exporters import yarn and fabrics from other countries such as China and India, it will take almost 20 days to get the raw materials. In contrast, they can buy the necessary items from the local market when they need.

So, local spinners are trying to expand their footprint in the market. It will simultaneously improve the capacity of Bangladesh’s spinning and apparel sector.

Gas problem

Bangladesh has taken a hit following the gas crisis owing to recasting at the Bibiyana gas field in March 2022. Ashulia, Shreepur, Dhaka, Gazipur, Savar, Narayanganj, Narsingdi, and Bhaluka are known as Industrial hubs as maximum production plants and spinning mills are located there. These Industries require a substantial amount of gas, and following the latest gas crisis, garment manufacturers are agitated in their production capacity. BTMA members have been complaining of losses following production getting hit on account of an acute shortage of gas.

The gas pressure came down to 1 pound per square inch (PSI) to 2 PSI whereas the requirement was 15 PSI to 20 PSI. As a result, the production in the mills had remained almost postponed.

Ashulia-based Little Star Spinning Mills can produce 12 tonnes of yarn per day. But over the last few days it is producing 2.50 tonnes of yarn per day due to gas problem.

Mohammad Ali Khokon, President of the BTMA, said, “State-owned gas company Petrobangla had informed that the crisis had been prevailing since December last year.”

Conclusion

Almost 430 spinning mills are operating every day. Out of 430, only 27 factories are producing Man-Made Fiber (MMF) but these are for some particular polyester yarn. Bangladesh imported more than 1 lac ton manmade fiber in 2021, according to some industry people. Bangladesh has a huge opportunity to earn money from this sector through new innovations and techniques. Young entrepreneurs put their focus on the spinning industry and set their purposeful vision for the future. However, without government support to remove gas shortage, reduce logistic and port problems, and provide timely policy for the sector, the entrepreneurs will face hurdles to attain their goals.

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

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