Aaron Denim Ltd. (ADL), formerly MAB Spinning Ltd. and MAB Denim Ltd. is a 100 per cent export oriented denim fabrics manufacturing unit. Currently, it holds a capacity of 2 mn yards fabrics per month. From January 2019, with the inclusion of new machineries, the project is equipped with more balance of its fabrics manufacturing unit which will help meeting the growing demand of the buyers.
To know more about the company and its further plans Apparel Views Bangladesh spoke to Sayed Ibn Mazakat, Deputy Managing Director & CEO, Aaron Denim Ltd. Given are some excerpts from his interview….
We all know Aaron Denim Ltd. Started its journey in 2006 and Aaron Jeans in 2018. Would you please share with us your vision and activities for making your business more sustainable?
Vertical integration is one way of getting control of your buyers and enhancing chances of increasing sales. It also diversifies risks. It is one way of getting your business more sustainable and that’s what we are doing. Moreover due to ever increasing competition, companies looking at cost minimising making them more reliant on technologies. Efficient production is vital to survival in this trade. Presently, most buyers are looking at compliances hence in order to be sustainable companies are investing on making their factory as environmental and social friendly as possible.
The wages have increased grade wise average 40-51 per cent, how is it going to affect the textile and garments owners?
It will increase the costs immensely but companies looking at investing on technologies which decreases the labour costs and eliminates the risk of costly production. But it will take time to become totally machine oriented industry hence government should help industry regulated the prices or-else survival will be difficult.
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.
Production cost of Bangladesh is increasing day-by-day and on the other hand, buyers are asking for lower price. From your point of view how can we overcome this problem?
BGMEA BTMEA and other trading bodies should be united to take stand on this. Foreign buyers have taken advantage of us fighting among ourselves to survive. At this point China isn’t viable as it was few years so there is scope for increase of price but we should act together.
What are the major brands you are working with right now?
Inditex, Mango, GU, Next and many more.
How do you look at the future of Aaron Jean’s and Aaron denim Ltd.?
We have invested in new machineries in Aaron Denim and also planned to expand Aaron Jeans even more. If we can get the act together we are in for a very profitable run.