Chattogram-based Modern Syntex to begin producing two main uncooked supplies this November
Infographic: TBS
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Infographic: TBS
As traders step ahead to bolster the manufacturing of the first uncooked supplies for man-made fibre (MMF) textiles, footwear, and numerous different merchandise throughout the nation, there is a noticeable discount in import dependence. Industry insiders are optimistic about the potential for halving the import dependence by subsequent January.
Currently, a handful of firms produce these uncooked supplies and over 90% of the native demand for them – which presently stands at 880 tonnes per day – is met by means of imports, in accordance with the Bangladesh Textile Mills Association (BTMA).
In this example, Chattogram-based Modern Syntex Limited, a subsidiary of the TK Group, is about to make a big contribution by initiating the manufacturing of two important uncooked supplies: polyester staple fibre and polyethylene terephthalate (PET) chips. Their manufacturing will begin this November on a small scale and develop to full-scale manufacturing by January 2024.
Additionally, the corporate plans to fabricate drawn textured yarn and polyester totally drawn yarn utilizing its personal PET chips.
Shafal Barua, common supervisor of Modern Syntex, instructed The Business Standard, “Our manufacturing is slated to begin in November. With different producers out there becoming a member of in, we anticipate assembly almost half of the demand by early subsequent 12 months.”
He emphasised that this initiative is predicted to avoid wasting Bangladesh roughly $65 million per 12 months and enhance lead instances, contributing to the nation’s competitiveness in worldwide commerce.
Within the TK Group, two different firms, Modern Poly Industries Limited and Super Synthetic, are already market leaders within the manufacturing of two of the 4 main uncooked supplies for MMF. Additionally, Bengal Synthetic and an organization of the Noman Group produce small portions of drawn textured yarn, and totally drawn yarn.
BTMA President Mohammad Ali Khokon expressed his perspective, saying, “If native firms can provide uncooked supplies akin to polyester staple fibre and PET chips, it should undeniably have a optimistic impression. It will save overseas change and improve lead instances.”
He additionally emphasised the significance of aggressive pricing, stating, “The capacity to supply these merchandise at aggressive charges is essential.”
Another textile mill proprietor famous that whereas the demand for man-made fibre clothes is on the rise, Bangladesh nonetheless lags behind on this side. The availability of domestically equipped uncooked supplies may create alternatives for Bangladesh to safe extra orders sooner or later, as patrons’ confidence will develop.
The garment sector accounts for 84% of the nation’s total export earnings.
According to the Export Promotion Bureau (EPB), Bangladesh’s RMG exports to the world market had been valued at roughly $47 billion in fiscal 2022-23.
Exporters estimate that about 20% of those clothes had been created from man-made fibres.
The international demand for MMF clothes is steadily rising, with MMF and non-cotton clothes representing over 70% of the worldwide attire market, as reported by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Once Bangladesh was 100% depending on import to satisfy the native demand for MMF uncooked supplies. Currently, about 50 textile firms within the nation import polyester staple fibre, drawn textured yarn, and totally drawn yarn. They manufacture yarn from these supplies, and provide them to native material producers who promote them to RMG producers.
However, these three uncooked supplies, derived from petrochemicals, couldn’t be produced domestically.
In recent years, a couple of firms had been importing PET chips and producing drawn textured yarn, and totally drawn yarn with them, none of them went into the manufacturing of polyester staple fibre and PET chips as this required large funding.
Modern Syntex Limited is located in Bangabandhu Sheikh Mujib Shilpa Nagar of Mirsarai, Chattogram. During a recent field-level go to there, TBS spoke to high firm officers who revealed their preparations and confirmed that experimental manufacturing work has commenced.
They additionally shared that the each day demand for polyester staple fibre within the nation is 350 tonnes, and their firm alone will be capable to provide 60% of this demand.
Similarly, the demand for PET chips is on the similar degree, with the corporate poised to provide 30% of it.
Investment challenges
Entrepreneurs have identified that over 70% of the worldwide demand for clothes includes MMF clothes, but Bangladesh has not invested adequately in its uncooked materials manufacturing.
They defined that main uncooked supplies required, purified terephthalic acid (PTA) and mono ethylene glycol (MEG), must be imported, as they don’t seem to be domestically produced. This reliance on imports necessitates a constant provide of fuel and water for the manufacturing of purified terephthalic acid fibre and PET chips. Moreover, establishing such amenities calls for substantial monetary investments.
Another important problem is the scarcity of expert labour. Additionally, there’s a 5% value-added tax on the import of uncooked supplies, which entrepreneurs think about a hindrance to their competitiveness out there.
It is value noting that among the many TK Group’s firms, solely Modern Syntex Limited has invested a considerable quantity, totaling $141 million.
Modern Syntex General Manager Shafal Barua expressed issues concerning an uninterrupted provide of water sooner or later, regardless of having secured a fuel connection.
The firm anticipates using roughly 1,500 staff, with 300 recent recruits already in coaching at Modern Poly Industries Limited, one other firm throughout the TK Group, in accordance with firm officers.
In response to those issues, Abdullah Al Mahmud Faruk, the challenge director of Bangabandhu Sheikh Mujib Shilpa Nagar, mentioned, “The fuel provide challenge of the corporate [Modern Syntex] has been resolved. But we have now not been given the demand that a lot water will likely be wanted. The present provisions meet their necessities. Hopefully, there will likely be no issue sooner or later as properly.”
