Mahin Group, a trouser and woven fabrics manufacturer, is going to invest Tk 400 crore this year to set up a spinning mill to produce 30 tonnes of yarn a day.
“We will go into production in August next year,” said Abdullah Al Mahmud Mahin, managing director of the group. Of the investment, 70 percent will come from banks and the remaining 30 percent from the company's coffer. A significant amount of the investment will come from foreign sources, he said without elaborating.
Mahin Group has bought 26 bighas of land at Charsindhur in Narsingdi to set up the mill, which will have the capacity for 55,000 spindles.
It will start the construction of the pre-fabricated factory building in May this year and will begin the installation of machinery in March next year, Mahin told The Daily Star over the phone.
“I have been noticing a growing demand from local and international buyers. The outlook for the garment business of Bangladesh in the international market is good. That's why I am going for a massive expansion.”
The group plans to produce 10 to 20 count of yarn for trousers, 30 to 40 count of yarn for trousers, and 40 to 50 count of cotton yarn for formal shirts.
It, however, will not sell the yarn and consume the whole quantity instead, as it will have to import 20 tonnes to meet the daily demand even after setting up the proposed spinning mill.
Currently, the group consumes 50 tonnes of yarn every day and sources it from local spinners as well as from countries such as India, China, Vietnam, Malaysia, and Indonesia.
Mahin says as the government was importing liquefied natural gas, his group would not face any problem in getting gas connection for the new plant. The group's annual turnover is $85 million and posts 12 percent year-on-year average growth.
The textile entrepreneur started his journey in 1993 and over the years has established weaving mills, including Hamid Fabrics Ltd, a company listed on both Dhaka and Chittagong stock exchanges. The group counts Abercrombie & Fitch, PVH, H&M, Esprit, and Decathlon as major customers.