Interview with Kutubuddin Ahmed

Kutubuddin Ahmed
Chairman
Envoy Textiles Ltd

We believe in having a factory within a resort

Envoy Textiles Limited (ETL) is a leading name in the textiles industry of Bangladesh. It is especially renowned for its denim production. In an interview with Fibre2Fashion.com, Kutubuddin Ahmed, Chairman of Envoy Textiles Ltd talks about the USP of the company in terms of denim production, R&D and sustainability.

What is the size of the readymade garments and denim industry in Bangladesh? What is the percentage pie claimed by Envoy Textiles?

The size of the readymade garments industry in Bangladesh is approximately US$ 25 billion a year (Source: Export Promotion Bureau), and the demand for denim is about 500 million yards per annum. ETL covers around 8 per cent of the total denim demand in Bangladesh (around 42 million yards per annum).

What percentage of your overall business comprises the textile niche?

About 15 per cent of our overall business comprises denim like knit look, high stretch, coated, printed, etc.

What new developments can we expect from the world of denim?

The denim world is fast changing. Denim was mostly used as a casual wear. It was 100 per cent cotton with open-end yarn made in indigo and black colours. Now, denim has multiple roles. It is taking the place of formal wear while continuing to evolve as a fashion wear. Stretch denim has evolved very well over the years, not only for women but also for men. All retailers are shifting their collections from rigid denim to stretch denim. Denim has now moved into different blends like modals, tencels, rayons, linens, etc. Denim is becoming more and more popular as an active wear. Now, even performance fabrics are made with the use of thermolite and coolmax yarns.

Do you have any plans to brand denim or readymade garments?

Yes. We plan to deliver a denim brand to end-users, and we are actively thinking to set up a garment factory as a forward integration. On the other hand, we have also started working on a spinning project which will be a backward integration with our existing textile project. Ultimately, with both backward and forward integration, the overall process will start with cotton and end with a readymade garments brand.

Which are the new sustainable practices that Envoy Textiles has initiated across its textile and apparel value chain?

Introduction of sustainable development is one of the core values of ETL. Some of the practices are: 1. Effluent treatment plant: We have established an ETP which runs round-the-clock to ensure that 'zero discharges' take place in nature. Periodic chemical tests and other regulatory tests also happen to ensure that the quality of the discharged water is not harmful to nature. 2. Co-generation of power or energy: Generator exhausts are discharged in the air as a waste product. But we have started using this exhaust as an input for further energy generation. It is used as a heat source for our boiler and chiller. Thus, we reuse almost 70 per cent of the waste product with this 'co-generation' concept. 3. Rain water harvesting: Rain waters of ETL are streamed towards an in-house lake and works as a source for fire hydrant and toilet flush. We are also building a separate plumbing system to use the lake water for toilet flush. 4. Fish cultivation: We cultivate more than six types of fishes in the in-house lake, which sometimes work as a source for food and as a site for angling competition. 5. Eco-park or pond: We have an eco-park and pond within the factory premises with rabbits and ducks. More species (like deer) are about to come. 6. Energy efficient building: Most of our factory shades are made with pre-fabricated reusable material and are designed in such a manner that natural lights can be used to the optimum level. 7. Scenic open space: Overall factory layout is designed with scenic landscaping. There are a substantial number of trees, plants, etc, to give it a green look. The concept is to have a factory within a resort.

What has been your growth percentage in the last two years? What is the target set for the next two?

For last fiscal (October 2014 to September 2015), the growth in our profit was 87.07 per cent and the growth in revenue was 24.78 per cent. Our target is to achieve a growth of 20 per cent in the coming fiscal (in consideration with regular growth and value addition of the spinning project).

What is the type of R&D that you undertake? What percentage of profit is allocated to R&D?

Having world renowned brands as customers, we often work with designers directly. We conduct research on the development of an existing product supplied by our customers. Sometimes, we also work on seasonal collections with retailers where we show them our in-house design and development. Our R&D infrastructure is built with state-of-the-art equipment. In recognition of that, the leading denim brand - Levi's has recognised our laboratory as their 'accredited lab'. We often appoint globally recognised consultants to review our processes. We also build technical collaboration network with other leading denim manufacturers and retailers. We also regularly participate in both national and international denim related fairs to understand global trends and customer needs. In addition to that, we regularly work on cost effectiveness of our products to give a competitive advantage to our customers. Usually, we allocate 2-3 per cent of our profit to R&D.

Published on: 15/01/2016

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.