..compact yarn segment will be profitable market in immediate future due to high margin and high value added product.
Mr Mintoo, we noticed your Group has 30 years of textiles experience but being into just spinning arena. When Multimode has ventured into all capital-intensive sectors like investments, estate, transport, energy, I am inquisitive to know what keeps Multimode from venturing into further integration in lucrative sector of textiles and garments.
Well, that was mainly because of two aspects; lack of finding suitable joint venture foreign partner, and secondly, lack of raw materials like Cotton in the Country.
So, how would you summarize textiles market, globally?
As Raw Cotton Prices remain high, Cotton producing countries will have competitive advantage and local companies will invest to integrate in backward linkage.
In textile business, Compact yarn segment is looked upon as profitable market in immediate future. Is it so? What would be factors?
The factors for considering compact yarn segment as profitable market in immediate future are – high margin and high value added product. This is because it is hairiness free, improved strength and produces high quality products, which has equal demand both in local and international market.
As you mentioned above; scarcity of Cotton is affecting your operations. More so, because of ban on export from India, and meagre production from Pakistan. Isn't it? Have you resorted to changed pattern in sourcing?
You are right. It has always upset our supply chain of Raw Materials. We are compelled to outsource from CIS/African Countries for which supply cost us more.
In your stance, what other problems choke-up good growth of Bangladeshi textiles?
Political instability, genuine source of Raw Cotton
How is your Group functioning on CSR front?
Along with compliance to our environmental standards in all our corporate moves, beyond business the group has established College, High Schools, and tries to encourage talent & skills awarding scholarship to many poor students etc.
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Published on: 07/02/2011
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
