Envoy Textiles, the largest denim fabric producing unit in Bangladesh with an annual production of 24 million meters is going to set up a yarn manufacturing factory with a production capacity of about 50 tonnes per day by the first quarter of 2016. The yarn project is expected to save huge costs. Presently, the group procures yarn from local and international markets to feed the mills.
Around 80 per cent of the yarn to be produced by the new factory would be consumed by mills of the group and the rest 20 per cent would be sold out in the market. And earnings from selling the 20 per cent yarn will be used to buy other types of yarn to feed the mills. The major capital machineries to be imported for setting up the manufacturing plant are mainly from Germany, Switzerland and Japan.
Envoy introduced rope dyeing denim for the first time in the country. It is expected that the company’s annual profit would then be increased approximately to Tk 40 to Tk 45 crores and the annual turnover would stand at 50 million dollars. The company’s third quarter (April ’14 to June ’14) net profit stood at Tk 11.4 crores, slightly down from Tk 11.9 crores in the same period a year earlier.