Denim maker goes for massive expansion to seize new bonanza

A denim maker undertakes a massive industrial expansion hoping to seize huge export prospects generated from western buyers' China-shift policy.
Badsha Group of Industries has taken up the billions of taka worth of plan to set up two new factories in Habiganj mainly with sights set on the opportunity.
The group will invest more than Tk 18 billion to set up twin factories-a spinning mill to produce yarn and a garment unit for denim manufacturing--in next couple of years.
"We have sufficient work orders despite the depressing global market scenario. As we have own yarn and fabrics, our buyers have suggested going for washing and sewing," Md Badsha Mia, managing director of Badsha Group, told reporters during factory visit on Thursday.

"So, now we want to use our own fabrics. We have started the garment facility partially," he added.
They work for supply of world-class wears to some 48 foreign brands, including Inditex, C&A, Next and H&M.
There is huge opportunity as buyers are shifting from China, he said, adding that in next three phases their factories would be one of the largest composite industries.
A composite mill having yarn -fabrics-finished-goods production facility needs no transportation cost while saves time to meet buyer-mandated lead time in shipment, Mr Mia notes about prospect of their undertaking.
Explaining the investment plan, he said they had already invested Tk 15 billion in Pioneer Denim Ltd to produce 7.0 million yards of denim fabrics per month.
A 2500-strong workforce is engaged in working in three shifts here.
Pioneer Denim is a US Green Building Council (USGBC) LEED (Leadership in Energy and Environmental Design)-certified platinum- ranked factory that achieved 83 points out of 110.
The business group will invest some Tk 8.0 billion in setting up the garment factory--Pioneer Denim Ltd (garment division)--for denim- product manufacturing.
Mr Mia expects the factory to earn per annum US$700 million in next five years while about 15,000 workers will be employed. The factory will be set up in a sprawling area of 200 bighas of land.
The factory, which has partially started production for research and development with some 1,000 people, is scheduled to go in full-blast production within next couple of years, he said.
It will also invest more than Tk 10 billion to set up the spinning mill-Badsha Textiles Ltd--covering an area of 200 bighas in Habiganj to produce 200 tonnes of yarn per day.
At present, Pioneer Denim Limited that was set up in 2017 in 250 bighas produces denim fabrics from yarn produced in its Bhaluka mill.
According to Bangladesh Textile Mills Association (BTMA), at present 42 denim mills in the country produce 900 million yards of fabrics annually.
Bangladesh dominates the global denim market with its sustained position as top supplier to two major export destinations--the United States and the European Union--on high annualised growth.
Exporters and analysts see it as a silver lining in the current context of global gloom as export of denim garments to the US market grew 18.19 per cent to US$943.70 million in 2022 in a steady rise from US$798.42 million in 2021.
Mexico exported US$750.49 million worth of the clothing item followed by Pakistan with US$497.42 million to the US in 2022, according to figures from OTEXA, an affiliate of the US Department of Commerce.
And shipments of this new-generation apparel to the European Union-the largest Bangladesh readymade-garment market as a bloc--fetched $1.55 billion in 2022, recording a 31.91-percent growth.
Turkey and Pakistan are the second-and third-largest denim exporters to the European Union.
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