Aaron Denim Ltd. (ADL), formerly MAB Spinning Ltd. and MAB Denim Ltd. is a 100 per cent export oriented denim fabrics manufacturing unit. Currently holds a capacity of 18 million yard per month which sets to increase to 25 million yards by end of this year. With Dyeing Capacity of more than 30 million yards there are still capacity of further expansion. Aaron Denim Limited has set up vertical integration in the form of Garments to move even closer to buyers. To know about the company and its further plans Apparel Views Bangladesh spoke to Young entrepreneur Sayed Ibn Mazakat, Deputy Managing Director and CEO of Aaron Denim Limited. Given are some excerpts from his interview….
Please tell about your new factory and how is it different from other factories?
We started in the year 2006. I can’t say it is different but our target is to increase our capacities to cater to the growing market. Our objective is not trying to be different but move forward with time.
What is your percentage of exports out of your production?
Our production capacity is 1.5 mn per month and 18 mn per year. We are fully export oriented, so we export all our stuff and don’t work in the local market.
What is your vision as new generation joining this business?
New generation brings in new ideas, so we should motivate new people and new generation to take this business. As a country you can grow because Bangladesh is the biggest exporter to Europe so there’s a lot of scope. But still we don’t make enough fabric. We import a lot of fabric from China so there’s still lot of scope for improvement and expansion. The new generation should come forward and take this challenge to take Bangladesh forward.
What are the challenges you are facing today?
Challenge is always ideal reason to work. I have come from Europe where environment was totally different. Here you have to struggle for many things in systems and infrastructure. There is lack of professionalism in the industry. We have to make relation with the buyers and merchandisers. They might like our product but if I don’t have relationship with him or offer him something extra he might not approve our fabric. Even though we have best of quality and price.
What is the present status of Bangladesh denim industry? How do you look at the same?
The industry is growing, and compared to last year we may achieve our targets in 2018. Our biggest positive is the cheap labour. Buyers usually prefer us over others countries as we are offering lower prices. Compared to China our labour cost is very less. But still China can give a lower price because of Govt. subsidies. So Bangladesh govt. should also support us to regularize the price so that we can compete in world market.
What are the new trends in denims?
Now in denim there is different type of weaves, blends, washes, coating, printing, colours etc. Before in 90s there was only one type of denim, now you’ve got so many styles and blends. Now denims are used in even bags, shoes, everything is made of denim. There is lot of scope for woven denim. We have to continuously develop new products with new blends, weaves and finish. There are lots of opportunities to explore in this market as the overall market is still growing.
How do you look at growing competition from India, Pakistan and Turkey?
Turkey is not much competition for us. India is yes a competition but China is a bigger competition for us because buyers mostly get cheaper fabrics from China. Even though the lead time is a bit higher so I would say India and China is real competition for us. They take more business compare to us but I would say Bangladesh could grow if we stop fighting among ourselves. Like, some of the companies lower their prices so that they get the order. Even though it’s not making them any profit. There should be association for denim industry where price is regulated. If prices are not regulated one day or other this industry will be destroyed and its will not be because of buyers but our own self.
What do you think Bangladesh denim mills should do to remain globally competitive?
We shouldn’t lower the price. The focus should be on new products development. There are now many varieties of denims coming and obviously they have to be offered as per the market demand. They are trying to lower the price due to which only buyer is benefitting but where are we going. In this price war everyone is loosing. So we should stay together and fight together. Yes, you can lower the price a little bit but don’t go below a certain price. If you want to rule than stay united, otherwise outsiders will take your business.
What do you expect govt. to strengthen this industry?
The govt. should be more lenient on us. The bank interest rate is high so interest on funding should be lowered. Apart from this infrastructures support is also needed in roads, port and factory. They should have a body where our product price could be regulated as we are loosing money in unfair price war.