One of the biggest spinning mills in Bangladesh, Delta Spinners is setting up a new plant for export market to increase its aggregate production to nearly 15,000 tonnes per year, an increase of around 67 per cent. Adjacent to the existing mills, the Tk 540 million new unit is being constructed on an area of 117,000 sq. ft. Expected to start operations in mid 2016, the new plant will be equipped with state-of-the-art machines with nearly 27,000 spindles.

The company is expanding its operations to cope with growing demand for both high-end and traditional yarns. Mostafa Jamal Haider, Managing Director, Delta Spinners said the company's profitability and other indexes will increase sharply when the export project starts operations.

Meanwhile Delta has opened letter of credit for procuring equipment and some of it will arrive in Chittagong Port by April 2016. Machines are being procured from the world's best manufacturers from Switzerland, Japan, Spain and Taiwan to get optimum output. The aim is to install the latest machines to produce both conventional and non-conventional yarns.

Demand for non-conventional yarns is rising in Bangladesh, which usually have high-value addition than traditional ones. Bangladesh mainly exports basic clothing but it is now gradually leaping up to another upper segment of clothing market. Demand for jersey, sportswear, suits and other luxury clothing is on the rise in recent years and for this reason, demand for high-end yarns is also growing. As per industry estimates indicate the internal rate of return or IRR might increase by 20 per cent after implementation of the project. The company's EPS (earnings per share) is expected to increase from the existing Tk 0.58 to Tk 2.0 according to sources.

Delta Spinners started its journey with financial support from erstwhile Shilpa Bank. The mill was established in early 1994 at Kaltapara in Gouripur of Mymensingh, about 140 kilometres from Dhaka. It was listed with the bourses in 1995.