Engr. Estahak Ahmed Shaikat the Managing Director of Basher Group of Industries and a Director of Bangladesh Textile Mills Association (BTMA), is a successful young entrepreneur in the spinning sector.
He is the youngest director of BTMA since 2019.
In a recent conversation with the Textile Focus team, he shared his views about the crisis situation of Bangladesh spinning mills and the opportunities to make it a leading sector by overcoming the challenges and also shared the upcoming DTG Expo.
Textile Focus: What do you think about the current state of our spinning industry?
Estahak: You can think of the current state of our spinning industry as being similar to that of an ICU. We have been struggling for quite some time, and this state emerged right after a major change. Previously, we also faced big challenges due to a severe shortage of gas, instability in the banking sector, and various instances of mismanagement.
During the previous government, we encountered many issues due to various policies. These concerns were communicated at all levels, including the highest levels of government, but we received no feedback. Later, when the industry showed some signs of vibrancy due to a shift in policies, many factories were on the brink of closing. Some closed due to instability in the spinning sector, some due to labor unrest, and others due to the lack of a reliable gas supply. These issues have led to the closure of many textile or garment mills. Over the last two weeks, we have had better utility supplies, which has allowed us to recover slightly. However, amid these challenges, we have missed about $400 million in orders, according to data from EPB and the textile sector.
We are also facing new challenges with the banking sector, and I believe that our advisor will be able to address this well. Some people who don’t own industries are still taking loans from banks by presenting fake documents, making it difficult for small businesses like ours to sustain themselves without banking support during tough times. While the advisor has done a commendable job, banks need to provide even more support. After all, you cannot abruptly shut down any bank, as people from almost every profession and class in Bangladesh realy on the banking sector. Sudden changes are not desirable as they also affect those with backward linkages to our industry. If the government provides more support through public or private banks, it would greatly benefit us as importers and manufacturers. Even those with connections to large banks are not receiving proper support or clearing payments on time.
As for utility supply, the recent improvements in supply in the industry allow us to look forward to a brighter future. The situation has started to stabilize a bit compared to the past two weeks or months, and labor unrest has also started to decrease. In this context, a huge number of orders have moved to other countries. Our biggest competitors are China, Vietnam, and Pakistan. Buyers generally try to keep product orders diversified across different countries, but when unrest begins in our country, they move orders elsewhere, decreasing our order rates. It is challenging to bring these orders back to Bangladesh because other countries adjust their setups accordingly. This will only be possible if they cannot produce the same amount of goods. To retain foreign relations, we need to maintain good diplomatic relationships. On the other hand, we have strong markets abroad, like the USA’s RMG market, which could come to Bangladesh, but we have not yet strategized on how or when that might happen. Our BGMEA has fallen behind a bit due to internal instabilities or a lack of proper committees. Given the critical period the textile industry is undergoing, all forms of support—political, financial, utility, and more—are now essential. Without this, we will not be able to capture any new markets.
Textile Focus: Due to the unstable situation in the country, many buyers are hesitant to place orders with us. What message would you like to convey to the buyers?
Estahak: Interim governments often come with some policy gaps, and this is common in many countries, not just Bangladesh. However, there haven’t been any major security issues in our country even amid this unrest. What incidents have occurred are isolated cases. Factory owners or buyers face no real-life risks, nor will they.
Textile Focus: Currently, spinning faces many issues. What types of new investments do you foresee for this sector?
Estahak: Spinning is a huge industry with the potential for high earnings. But given the current state of the banks, I doubt anyone would be able to make new investments. It is uncertain whether the banking sector will provide the necessary facilities for such investments. We have almost fulfilled our upcoming orders and demand. There’s nothing new to add here, and if we cannot bring in new orders or markets, I believe Bangladesh’s spinning sector will no longer be able to grow.
Textile Focus: BTMA organizes the major textile event, DTG. Could you speak about any innovations or developments expected at the upcoming DTG?
Estahak: DTG is an incredibly innovative fair for us. It is not just a machinery exhibition but brings in the latest technologies and machinery aligned with technological advancements. When new machines are installed, it is not always possible to go to the manufacturing country to learn the manual, but in the exhibition, two companies can sit face-to-face, making it much easier. In fact, exhibitions increase productivity and efficiency, and they also educate new students about the bright future in this sector.
Textile Focus: What is your outlook on the future of the textile industry in light of this?
Estahak: Bangladesh’s textile industry is definitely a dynamic sector. I believe that Bangladesh’s textile industry will not fade in the next 20 years. From a geographical and geopolitical standpoint, we are very well-positioned. One of our biggest advantages is our seaports. If we can export directly through these seaports, I believe Bangladesh will become the topmost exporter in the RMG sector in the Southeast region. With full support from the government, it is not far-fetched to think that textiles could become our primary source of income. Our previous earnings of $55 billion could be taken to $100 billion through this sector alone, provided there is proper support.
