There is growing global demand for denim. And Bangladesh will open at least six factories this year. The Envoy group for one will start producing an additional one million yards of denim fabric a month in the next three months. It produces three million yards a month at present.
Envoy currently purchases 60 tonnes of yarn a day from local yarn makers to produce denim. To meet growing demand, it is now establishing a new spinning mill to produce 50 tonnes of yarn a day. Five to six other groups have already installed machinery to produce the fabric.
In the middle of 2013, denim lost much of its global demand to jeggings. But now western buyers have returned to denim. Bangladesh exports denim fabrics and garments worth more than $600 million a year to the $60 billion dollar global market. It has 25 denim factories that produce around 20 million yards of denim fabrics a month. These go to major retailers and brands like H&M, Uniqlo, Levis, Nike, Walmart, M&S, Calvin Klein, Diesel and Gap.
Within Bangladesh, firms meet 40 per cent of the demand for denim fabric by denim makers and exporters. Imports account for the rest.