Dragon Sweater and Spinning limited is a 100% composite export-oriented spinning and sweater manufacturing company. Having its own acrylic & cotton spinning mills with a composite yarn dyeing and sweater manufacturing unit. DSSL is producing and supplying sweaters to the world’s biggest renowned buyers. The company is situated in Comilla in its own industrial complex and employs a huge number of local people in its manufacturing facilities. DSSL is a project that contains a 20000 spindle Acrylic Spinning Mills to produce Yarns such as Acrylic or Acrylic blended with wool and other synthetic fibers. Its recent expansion into cotton and acrylic blended yarns was made possible by its acquisition of a 36000 cotton spinning plant . The yarns produced in its mills are used to make ready-made sweaters and are exported to top retailers across the globe. The company exports its products to diversified markets such as USA , Canada , Mexico , Brazil , Chili , Japan , Australia, United Kingdom and Europe . The company achieved ISO 9001:2000 certificate for Quality control.
Mostafa Quamrus Sobhan is the Chairman of Dragon sweater and spinning. He has completed his Bachelor in Business Administration from the Nottingham Trent University of UK. He is a Director of the following companies – Rupali Insurance Company Ltd, Dragon Sweater Bangladesh Ltd, , DSSL , CD Acrylic Bangladesh Ltd , Perag socks industry and Dragon ITC . He is also associated with Cancham – Canada Bangladesh Chamber of Commerce and Industry as its Treasurer and also with Indonesia Bangladesh Chamber of commerce and Industry as its Vice President.
Mostafa Quamrus Sobhan , Chairman of the company recently talked with team Textile Focus and shared his opinion about the industry development and his own strategy for further growth of the sweater industry. The conversation is drafted below.
Textile Focus: What is your observation about the industry during pandemic?
During the pandemic, the sweater industry has been impacted significantly. Because the whole supply chain was disrupted. Yarn and other raw materials import were suspended for almost 2 months. That’s why huge amount of production space was idle. We were again impacted when retailers closed their stores. That time our Bangladesh Government also declared a lockdown. The peak time for the sweater industry starts mostly in March and continues until August. Unfortunately, this whole period of 6 months was under stress and most sweater factories performed much below expectations. Many sweater units had to shut down temporarily because they couldn’t bring an equilibrium between their income and expenses.
Textile Focus: How are you adding value?
We are adding some value using the jacquard machine. True to speaking, there is very little scope for adding value to high-volume products. However, we have some buyers who are giving low volume products order. We are adding value to those products.
Textile Focus: What is your Growth strategy?
We are setting up a cotton-acrylic blended spinning project which has a combined capacity of 56000 spindles capable of producing over 120000 pounds of yarn per day. Our expanded project will commence commercial production by mid of 2022 .
The biggest advantage of this project will be the reduction in lead time as most doubled and blended yarns are imported from China, India , Pakistan and Indonesia. Shorter lead time with aggressive pricing will make this project a market leader within a short time. Most importantly, we will also be supplying dyed and raw yarns to local export oriented dyeing mills and sweater factories. This will also help us to grab a considerable market share in the fast growing yarn export market as we also plan to export yarns to South and South East Asian sweater producing countries as well.
Our factory is strategically located on the Dhaka ctg highway and our products acrylic , cotton and other blended doubled twisted yarn has huge demand in EU and US as finished sweaters. This will be the first manufacturing plant producing such yarns in Bangladesh and will be an import subsidy industry .
Textile Focus: What kinds of challenges we have to face in near future?
At the time of graduation from a LDC to a developed natiom, most preferential trade benefits will be abolished. That period will be a major challenging event for our entire industry.
Our government would need to play a proactive and effective roles to develop free trade agreements with US, UK, EU and other major markets.
Textile Focus: What will be the future for sweater industry?
If we talk about the sweater industry, then I can assure you that the industry growth in the post covid period will be positive. According to global forecast the apparel retail market will grow to 2.5 trillion dollars by 2025, this growth will be driven by post covid economical growth. However online sales will be dominating and buying, selling and manufacturing dynamics will shift towards low volume and high varieties .
Textile Focus: What is your suggestion for the young generation?
For the young generation, I would say, there will be a lot of challenges in the garments industry. It’s obviously not an easy task to handle. A corporate structure with an efficient management team will be crucial to face upcoming challenges . To achieve continuous growth, investment in new generations of machines and softwares will be required to understand real time datas in order to make effective decisions . Investments into sustainable production facilities to produce sustainable products made with environmental friendly raw materials will be crucial for long term growth .
Finding new sources of financing from offshore or access to public financing through initial public offering of shares or bonds will be detrimental towards growth and expansions.