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Prospect of manufacturing textile chemicals in Bangladesh

Besides government support, the mindset of dyes and chemicals users in Bangladesh and the mindset of global brands also has to be changed towards locally manufactured dyes and chemicals. If locally manufactured chemicals can comply with the quality and other requirements then why would we prefer using imported chemicals? Using local chemicals will reduce cost significantly.

Textile Today Research

The textile processing industries in Bangladesh are seeing a momentum in orders and growth in recent times. Such companies have been suffering for gas supply for quite a long time. As currently, Bangladesh could resolve the supply shortage of gas by importing LNG, the dyeing, finishing and washing mills are quite in a good shape now. Though the government is going to increase the price of gas, now at least the factories will not have to keep the machines stopped due to a gas supply shortage.

the demand of dyes and chemicals in Bangladesh textile industry is increasing
Figure: Day by day the demand of dyes and chemicals in Bangladesh textile industry is increasing.

On the other hand, when China is the closing bulk of the factories which are polluting the environment, huge orders of dyeing and finishing of fabrics is flooding to Bangladesh. Growth in apparel export is also boosting the backward linkage dyeing industries. Buyers prefer to source fabric locally as it provides lower lead time and quality support benefits to them. So, the textile processing mills in Bangladesh is growing fast which is creating a huge demand for textile dyes and chemicals.

Bangladesh is mostly dependent on import to cater the demand for textile chemicals for the dyeing printing and washing factories. But with the increase in the size of the industry, now there is huge potential to manufacture textile chemicals in Bangladesh. Some companies are already manufacturing textile chemicals and it is growing fast.

Md. Amanur Rahman, Managing Director, Dysin which is one of the leading companies supplying dyes chemicals and equipment has said to Textile Today recently, “Keeping the growth potential in mind we are increasing textile chemical manufacturing in Bangladesh. Dysin has increased 100 percent export-oriented chemical industries into 5 units in a short span of time.” He also said that their manufacturing chemicals have global compliance certificates like GOTS to comply with the global requirements.

Currently, there are some companies who are manufacturing some basic chemicals which are being used in textile industries there are few companies who are producing textile auxiliary chemicals. But still, the bulk of the textile dyes and chemicals are being imported. Globally leading chemical companies who have lion market share still have not set their manufacturing bases in Bangladesh yet. Experts have opined that the government has to provide right policy support for the farther growth of textile chemicals manufacturing in Bangladesh. The current policy supports duty-free import of chemicals for textile processing mills so there are no incentives for the local manufacturers.

Recently Textile Today talked to a Pakistan based textile chemicals manufacturing company and explored that in Pakistan textile chemical manufacturing became very matured mainly because of the policy support. Even the company like Archroma has manufacturing units in Pakistan. Most other globally leading textile chemical manufacturing companies also have their own manufacturing plants in Pakistan. Now when Bangladesh textile dyeing printing and washing industry is one of largest in the region definitely, the government should come up with the policies to facilitate raw materials manufacturing inside the country which is to make the supply chain more stable.

Many Chinese and multinational companies are interested to invest and manufacture dyes and chemicals in Bangladesh. Even though dyestuff manufacturing is a large-scale industry and requires huge land and infrastructure, leading Chinese company Color Root was keen to invest about USD 500 million to set up manufacturing plants in Bangladesh. In an interview with Textile Today, Mr. Delwar of D&D Chemicals who is Color Root’s local agent in Bangladesh said that the investment went back as they didn’t get proper support and facilities in Bangladesh.

The local manufacturing companies have to have long-term vision and plan in the business. Besides manufacturing the right products they need to invest in branding communication and marketing. The local companies also need to invest in getting certificates and make sure compliance towards RSL (Restricted Substance List) and MRSL of ZDHC and other global brands.

Besides government support, the mindset of dyes and chemicals users in Bangladesh and the mindset of global brands also have to be changed towards locally manufactured dyes & chemicals. If locally manufactured chemicals can comply with the quality and other requirements then why would we prefer using imported chemicals? Using local chemicals will reduce cost significantly.

Keeping the prospect of the dyes and chemical manufacturing in Bangladesh, Bangladesh University of Textiles recently opened a dedicated department for producing graduates for textile dyes and chemicals manufacturing. Many Bangladeshi professionals have a foreign degree and experiences on the subject. Chemical engineers from BUET and other universities are also quite capable of producing the right quality chemicals for the textile industry. And so the country won’t have a shortage in human resources for the sector.

A report published in Textile Today August 2018 on the trend of global textile chemical manufacturing, it has been said that, the estimated dyes and chemical demand for Bangladesh’s existing export-oriented processing mills is USD 800 million. And this market is expected to grow by about 10 percent every year. Companies producing dyes and chemicals here in Bangladesh also will be able to export to the regional and other countries in the world if they rightly comply with the international requirements.

Pakistan could be a good model to follow for further flourishing the dyes and chemicals manufacturing industry in Bangladesh. Existing infrastructure and gigantic local demand can be good enough to attract global chemical companies to manufacture here in Bangladesh. However major changes will still require like providing fast-track services for legal approvals other utilities and business related things, making international trade and transactions easier and faster, increasing the efficiency of ports etc.

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

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