Interview with Mr Irshad Ali Bhuiyan

In our country, Textiles is a vital business for country’s economic growth. And as you may know, it is the 1st category line of earning foreign exchange into country.

We are proud to have created a niche in such vital sector also. Ours is the company ranking at 8th position in towel sector. In spinning too, we are recognized player in Bangladesh. We export to almost all over the globe including regions viz USA, Europe, Asia, China, Malaysia etc.

We still consider ourselves just a growing company. And, believe there are still miles to go.

Let me begin with market movements of my native land- Bangladesh; as our government already opened the land port, so now consequently, there seems to be some changes in yarn prices in local market. Also, there is already a decrease of about 3 to 5 percent in yarn market price in Bangladesh for buyers who in turn export, and obviously cannot afford squeeze their profit margin to nil.

Overseas buyers may increase price time to time, then the market will be back on track. Now Bangladesh is importing high quality yarn for knitting and weaving from Vietnam, India, and Indonesia.

China has a huge demand for different types of cotton and polyester yarn for knitting and weaving. They import from Bangladesh, India and Vietnam.

Spinning sector of Vietnam is making huge profits, and it is able to cope up with the demand from Bangladesh, China, Turkey, and others.

In Indonesia prices are gone up 30% than yarn of Indian origin, so booking is slow.

India is booming in yarn and cotton sector. These are best profitable business segments for Indian exporters especially for Tamil Nadu region that has been enjoying good profit margins since seven months at least.

International yarn prices diffrence as per origin:

•Indonesia origin about 30% high than India

•Bangladesh origin about 15% to 20% lower than India

•Vietnam origin about 20% lower price than India but quality is little bit different.

•Pakistan origin: no booking no goods to export for Bangladesh

For Textile Chemicals, Bangladesh is dependent on imports from overseas. It imports from countries like China, Germany, Japan, Indonesia, Italy, Holland, Thailand, India and others. In fact we see a huge demand for this sector amongst our textile players. All brands and big ticket players of this segment are enjoying good business as Bangladesh is also a tax exempted country in chemicals and industrial raw materials for 100% export oriented manufacturers.

Well, not much!

It is because of several determinants like demand in world market has increased, crops cost has increased, oil price has increased, etc. Even some countries’ policies have also been changed. For example, India has come up with ban on cotton exports to save its domestic industry.

However, we think situation may improve around Nov 2010, on arrival of new lot of cultivated crops in the market.

Well, home-textiles industry is confronting issues like raw material shortage and high prices’ upshots. In addition to that, over two thousand weaving industry workers called strike last week, and if this continues over month or two, mills will be shut down to no productions.

Also in such situation, we are looking forward to an understanding on buyers’ end, and the right spirit reaction to price rise on finished good. For, we manufacturers, in such case, have no remedy but to increase price on finished products.

Towels sector in Bangladesh is facing hard times too. Due to yarn price increase about 60% than last year, manufacturing quality, at the same time maintaining competitive prices of products, is little difficult. Hence to feed US buyers who always urge on low cost products, affects backbone of domestic power looms industry. So only if US buyers accept present value price, towel mills can survive the present situation.

Being into field of textiles manufacturing, to us chemicals importing, trading and consuming for production is of course a matter to be dealt with great responsibility. In our operations, we are very conscious towards proper handling of these eco-endangering products; their proper treatment, disposal and sewage.

Our government also is alert on this front. Every production unit has ETP plant without which export permission is not given.

We believe living safe and healthy is human right and we know violating this shall bring disasters to our countrymen and also to worldwide mankind, therefore Bhuiyan Group’s entire business operations are inconformity to CSR norms and ecologically safe production.

Besides, we are active in betterment of society through several charitable schools, trusts, and hospitals etc. Protest against endangering causes to mankind and their rights, is in the blood of Bhuiyans. And as descendants, we have successfully brought it into our business activities too.