Nitol Niloy group - a USD 84 billion diversified industrial giant in Bangladesh, is shortly to embark its presence in diversified segment of denim through joint venture with Indian Denim King -The Arvind Group.
Finding vertical growth a little hard nut to crack, the group is mulling to come back to textile exports, particularly in denim sector.
Breaking out the news exclusively to Fibre2fashion team, attributing the rationale on this resort to denim and not in vertical growth, Mr Abdul Matlub Ahmed- the Chairman of Nitol Niloy Group says – “The opportunities in vertical growth here are limited and very soon we reach saturation point. Unless the Government opens up Bangladeshi investment abroad, we are forced to move into many diversified sectors.”
The group is willing to accept lower equity share as most large companies do not want to part with management control, according to Mr Ahmed's view.
Rationalizing the choice of Arvind as partner, he divulges – “The main rationale is that we can still grow if we diversify - and grow for sure if we have a partner who is already well established in the new field.”
He also further notes that sparing few issues of gas and energy crisis, which can be tackled with little managed efforts, in general the investment scenario in textiles in the country is lucrative. Availability of cost effective labor in comparison to present textile hubs viz China and India, would be one –up factor for the sector until 2025.
Fibre2fashion News Desk - India
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