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Textile sector records an investment of Tk57.90 bn in 2021

With the rise in demands of yarn and fabrics produced domestically, the country’s primary textile sector invested Tk57.90 billion in 2021 to ensure supply.

At a time when the country’s overall investment saw a stagnant situation, a handsome investment in the textile sector is a good sign for the apparel sector to get supply from the local market.

Bangladesh Textile sector investment Tk57.90 bn in 2021
Figure: A total of 26 primary textile manufacturers invested Tk57.90 billion in 2021.

According to the Bangladesh Textile Mills Association (BTMA) data, a total of 26 primary textile manufacturers invested Tk57.90 billion in 2021.

With the new investment, the entrepreneurs will add more than 745,400 new spindles to their existing as well as new capacity.

As per the BTMA data, Modern Syntex Limited invested Tk11.05 billion, the highest, which manufactures yarn and man-made fibers. Abul Kalam Spinning Mills Limited invested Tk8.50 billion followed by Universal Denim made Tk7.92 billion and Karim Tex Limited Tk6.76 billion and ASF Fabrics Mills Limited Tk3.44 billion.

New member mills in 2021. Source: BTMA
Sl Name of mills Category Installed capacity Yearly production capacity Investment

(Tk in Crore)

1. N.R Spinning Mills Ltd.


A- Yarn Manufacturer Spindles: 60000 Yarn: 14700000 kg 373.78
2. Mondol Spinning Mills Ltd. A- Yarn Manufacturer Spindles: 76800 Yarn: 16425000 kg 378
3. RBD Fibers Ltd. Man-made Fiber

Manufacturing Mills

Knit: 25000000 kg 9.93
4. Karim Tex Ltd A- Yarn Manufacturer Spindles: 109000

Rotors: 2000

Autocone: 60

Yarn: 32040000 kg 676
5. Raw Tech Ltd. Man-made Fiber

Manufacturing Mills

Knit: 6000000 kg 58.8
6. Abul Kalam Spinning Mills Ltd. A-Yarn


Spindles: 109248

Rotors: 1800

Yarn: 30240000 850
7. Chandsree Spinning Ltd A-Yarn


Spindles: 36000 Yarn:


8. Modern Syntex Ltd. A-Yarn


Man-made Fiber

Manufacturing Mills




9. Universal Denims Ltd.


C – Textile Product


Shuttle less: 198 Woven:

45000000 mtr


10. Wazeed Spinning Mills Ltd. C- Textile Product





11. NZ Apparels Ltd A-Yarn


Spindle: 10000

Rotor: 3200

Yarn: 9000000 128
12. Mohammad Ali Spinning Mills





Spindle: 40800

Rotor: 960


Yarn: 9075000 202
13. Shanjida Spinning Mills Ltd A-Yarn


Rotor: 2184 Yarn: 7200000 70
14. AAA Dyeing & Printing Ltd. C- Textile Product


Woven: 20000000 11.5
15. Alibaba Composite Textile Milts


B- Fabric


Shuttle less: 32 Woven: 2400000 5
16. Skymax Textile Mills A-Yarn


Spindle: 20000

Rotor: 780

Yarn: 4500000 20
17. Asif Sharif Textile B- Fabric


Shuttle less: 40 Woven: 1800000 3
18. Suhana Fashions Ltd B- Fabric


Knitting: 10 Knit: 1500000 5
19. RFM Rotor Spinning Mills Ltd A-Yarn


Rotor: 960


Yarn: 1400000 308
20. DAL Fashion B- Fabric


Knit: 900000 3
21. A.S.F. Fabrics Mills Ltd. A-Yarn


Rotor: 9520 Yarn: 7350000 344
22. Tru Habitus Ltd B- Fabric


Knit: 3120000 5
23. Kazi Textile & sizing C- Textile Product


Shuttle less: 2 Knit: 4800000 5
24. Sonar Madina Spinning Mills Ltd. A-Yarn


Spindle: 29952 Yarn: 6120000 134
25. FAR Chemical Industries Ltd. A-Yarn


Spindle: 33600 Yarn: 6585600 220
26. Newtex Industries Ltd B- Fabric


Shuttle less: 34 Woven: 2200000 6
Total Spindle: 525400

Rotor: 21404


Why millers make investment

The demands of local yarn and fabrics rose sharply with the outbreak of Covid-19, which disrupted the supply chain as travel was restricted.

In taking advantage, local textile millers came up with new investments to improve capacity.

“In March-April last year, I sensed that the demand for local fabrics and yarns will grow sharply as Chinese orders are relocating to Bangladesh. While the global buyers were placing more orders with the ease in Covid-19 pandemic infection situation,” Fazlul Haque, Managing Director of Israq Textiles Mills Limited told the Textile Today.

The present trend will continue in the next few years. So it would be a very wise decision to invest more in the textile sector. To cash the opportunity, I made an investment worth TK5 billion, said Haque.

I hope it would not be tough to get the benefits, he added.

Meanwhile, trade tension between US-China is another key factor to invest in as Bangladesh is getting benefits of relocated work orders, said the economist.

“There has been a good investment in the Bangladesh textile industry in recent years. This is because of the trade tension between the United States and China, which created space for Bangladesh,” Ahsan H Mansur, Executive director of Policy Research Institute (PRI) told the Textile Today.

If we consider the present work orders flow, we will find that many of the countries, including the US, the EU and Japan, are relocating their businesses beyond China to reduce dependency on a single country, he added.

Where investment is made

As stated by the industry leader as well as apparel makers, textile millers are investing in polyester fibers known as manmade fiber as the demands of goods in this segment is increasing sharply.   

“In the FY21, Bangladesh exports were $38.75 billion of which $32.58 billion came from the textile apparel sector. Local input in the apparel exports earnings was $21 billion, where textile millers played an important role,” BTMA President Md Mohammad Ali Khokon told the Textile Today.

Prime Minister Sheikh Hasina emphasizes product diversification. As a part of this, apparel exporters are focusing on man-made fiber products and taking work orders, said Ali.

In meeting the demands of polyester fibers and high valued yarn, our millers are investing in the segment to ensure supply to the local apparel producers, said the business leader.

Demands of products made of recycled fiber are increasing and becoming more popular to the consumers, said Ali, also the Managing Director of the Maksons Group.

In helping the manufacturer, the government has to allow duty-free imports of raw materials for these two segments, he added.

“As the demands of high valued fabrics and yarns are going up, we are increasing spinning capacity to produce cotton and synthetic blended expanded yarn, Abdus Salam Murshedy, Managing director of Envoy Textile told the Textile Today.

The company decided to issue a non-convertible zero-coupon bond worth Tk200 to expand capacity and repay loans.

“To meet the buyer’s demands and improve quality improvement, we are also investing in technology upgradation to produce sophisticated fabrics,” said Salam, also a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

How to attract more investment

Strong backward linkage industry is a blessing for Bangladesh’s apparel industry. To grow further Bangladesh needs more investment in the sector mostly in the high valued segment, the economist opined.

“Currently, Bangladesh can meet almost 90% of the demand for knitwear fabrics but it is about 35% woven. The new investment will strengthen Bangladesh’s position in the global value chain and would help reduce import dependency,” Centre for Policy Dialogue (CPD) Research Director Khondaker Golam Moazzem told THe Textile Today.

On top of that, the increased investment will raise Bangladesh’s competitiveness in the global market and reduce lead time due to sourcing from local manufacturers, said the economist.

“We are blessed with several policies supported by the government and today’s industry status is the reflection of it,” said Fazlul Hoque, vice president of BTMA.

However, if the government ensures an uninterrupted supply of gas and does not increase prices in the next five years, there will be a huge investment in the sector, said the business leader.

In addition, the government has to improve port capacity to ensure smoother delivery of imported raw materials and shipment of finished goods, he added.

Textile sector at a glance

As per BTMA data, total investment in the country’s primary textile sector is about $15 billion, which is expected to reach $20 billion by 2025.

Total investment in the spinning sector stood at $11 billion and there are about 500 spinning mills in the country.

The annual yarn production capacity is about 1.8 million tons. About 90% of the knitwear sector meets locally.

The total capacity is 15 million spindles and more than 2.5 million spindles were added in the next two years.

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

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