The textile and apparel industry in Bangladesh is currently facing significant challenges such as the high cost of raw materials, power expenses, and the need for product diversification etc. Addressing these issues is crucial at this point. Recently, Azhar Ali, COO (Spinning) at the SALMA Group conversed with Textile Focus.
He joined Salma Group as a consultant in 2019. Throughout his career from 1995, he visited many countries including Brazil, India, China, and South Korea, and gathered extensive experience.
Read the full conversation here –
Textile Focus: Could you provide an overview of the current state of the textile sector in Bangladesh?
Azhar Ali: If I focus on the spinning sector, its competitiveness traditionally depended on two key factors: power and manpower. However, with the last power price hike being 2.5 times and a 40% increase in manpower wages, our competitiveness has nearly vanished compared to others in the spinning industry. Our industry in Bangladesh is predominantly based on cotton yarn. Unfortunately, cotton cultivation in Bangladesh is almost negligible, forcing us to import 100% of our cotton—approximately 7 million bales.
About 40% of this comes from Africa, with additional imports from the USA, Australia, and Brazil. Previously, a significant portion came from Central Asian countries, but as they developed their spinning industries, their cotton exports to us reduced. Similarly, Africa is now developing its industries to add value. India is taking various initiatives in this sector to reduce poverty, providing incentives to develop cotton industries without focusing on spinning. On the other hand, in China, industries receive 30% incentives. Their power costs are just 3.5 cents per kilowatt, enabling massive industrial growth, with spinning facilities ranging from 1 million to 5 million spindles. This results in significantly lower production costs in China.
In Bangladesh, spinning product diversification has been minimal. Over the past 15 years, I have realized the need for diversification and have tried to raise awareness. For instance, linen fabric, which we currently import from China and India, can be produced in Bangladesh. Our competitiveness with China and India in this regard would be similar because the primary sourcing of raw materials for linen comes from Belgium and France. If we could begin producing non-cotton and regenerated cellulose items like polyester, nylon, wool, and acrylic fiber blends in our industry, we could emerge from the turbulence the spinning sector faces. However, this requires technological transformation, achievable through skilled manpower. Without skilled manpower and industry changes, spinning industries in Bangladesh may not survive beyond the next few years.Our industries are generally designed around raw materials from Central Asian countries. Moreover, bottlenecks exist in carding machines, blow rooms, and draw frames. Due to cotton variation, 30-40% of the machines in most industries remain unutilized. By restructuring our industries, we can follow successful examples like China. If we adopt their processes, I believe our industries could perform well in the near future.
Textile Focus: We know Salma Spinning produces superior quality yarn compared to others. Could you elaborate on your special yarn offerings or areas where you excel?
Azhar Ali: I joined Salma Group in 2019 as a consultant. At the time, Salma Spinning was entirely cotton-based. I emphasized two initiatives: increasing production and diversifying products. As a result, our daily production increased by 20 tons. Anticipating tough times after 2023, we initiated changes and ordered machines scheduled to arrive in mid-2022. However, the COVID-19 pandemic delayed their arrival until 2023. Currently, 70-80% of our production is blended yarn and other man-made fibers, with the remainder being cotton-based yarn. For cotton products, we aim to use entirely certified cotton under certifications such as GOTS and ORC. We produce yarn from recycled cotton, organic cotton, and other variations. Certified cotton must have traceable origins, and we avoid producing normal cotton yarn.
Compared to other industries, we offer all types of blends. We also have a dedicated factory for cotton melange and various colored melanges, equipped with 40,000 spindles. Our facility includes seven blow room lines, one of which is exclusively for sampling. This allows us to send samples quickly to customers. Given the rapid changes in fashion and trends, we have adopted modular production lines. Turkey implemented this approach five years ago, and our Humaira Industry has followed suit with six lines, each line 4,000-spindles to 8,000-spindles.
Textile Focus: What feedback are you receiving from buyers regarding your R&D efforts?
Azhar Ali: We mainly work with buying houses. One of our key developments is a product called “Jutco,” which integrates jute into knit and woven industries. After 2.5 years of trials, we are now moving into bulk production under the Jutco brand. This product involves both chemical and mechanical processes. Our cottonization process, which required significant effort, will be installed in the industry within a week. This will allow us to produce approximately seven tons daily of Jutco fiber, which can constitute up to 25% of any fiber blend. It performs well with viscose, tencel, and modal and can also serve as a cost-efficient substitute for linen. As a sustainable product, buyers are very excited about it. We are also working with leaf fibers and pineapple fibers, aiming to process agricultural waste within the next year.
Textile Focus: What are your future plans, and what advice would you give to other factories?
Azhar Ali: Other factories should focus on sending their technical manpower abroad to learn about innovations. Considering the feasibility of these innovations for our country, implementing them could help the industry overcome current challenges. Additionally, in-house training and knowledge-sharing are crucial. Technical experts should be involved in decision-making to ensure informed decisions.
Textile Focus: What are Salma Spinning’s future plans, and how do you aim to further contribute to the spinning industry?
Azhar Ali: Over my 30-year career, I have contributed significantly to the spinning industry. I began my career at Square Textiles, working there for 8.5 years. They provided extensive foreign training and taught us how to contribute financially to the industry. To improve this sector, we must develop our manpower and culture. If we succeed in doing so, I am confident our industry will thrive in the future.
