Interviews
'Yarn imports from India added to troubles' – Mr Khan, Viyellatex
13 May '09
2 min read
The spinning mill industry in Bangladesh is facing tough times since the unfolding of the economic crisis last year. It is all the more worse, since it has invested huge amounts to set up more than 300 spinning mills in the past five years to meet the requirements of the domestic fabric manufacturers and which also lead to a degree of self reliance instead of importing yarn in huge quantities.
Fibre2fashion spoke to a few different major spinning mills across Bangladesh to get a clear picture of the situation. First we spoke to Mr. Saiful Islam Khan of the multifarious Viyellatex Group We began by asking him to comment on the current situation prevailing in the yarn spinning industry in Bangladesh, to which he said, “Situation is not encouraging since last eight to ten months. Due to economic crisis all over the world, market has shrunk a bit”.
He continued, “To add to that even local spinners are also highly challenged by competitive prices offered by the Indian spinners and due to the sudden Indian rupee devaluation against USD, Indian spinners had a competitive edge while exporting their yarn to Bangladesh, which added to our troubles. However this advantage lasted for just five to six months till they had low cost stocks, but, recently, we see prices being adjusted by the Indian spinners which will eventually take pressure slightly off from the local mills”.
Next we asked him to discuss the changes that their company has implemented to face slowdown and survive through the crisis, to which he said, “Being a vertical manufacturer, we consume majority of our yarn by ourselves, so we did manage to overcome the situation with joint efforts from all our units internally and hence pressure was not faced solely by our spinning unit alone”.
Thereafter we asked him on the expectations from government in these tough times and what it had one till date, to which he categorically said, “We always believe to create our fortune by ourselves and honestly, we do not expect anything from the government and it has done nothing till date and neither is there chance of it doing anything in the future”.
Fibre2fashion spoke to a few different major spinning mills across Bangladesh to get a clear picture of the situation. First we spoke to Mr. Saiful Islam Khan of the multifarious Viyellatex Group We began by asking him to comment on the current situation prevailing in the yarn spinning industry in Bangladesh, to which he said, “Situation is not encouraging since last eight to ten months. Due to economic crisis all over the world, market has shrunk a bit”.
He continued, “To add to that even local spinners are also highly challenged by competitive prices offered by the Indian spinners and due to the sudden Indian rupee devaluation against USD, Indian spinners had a competitive edge while exporting their yarn to Bangladesh, which added to our troubles. However this advantage lasted for just five to six months till they had low cost stocks, but, recently, we see prices being adjusted by the Indian spinners which will eventually take pressure slightly off from the local mills”.
Next we asked him to discuss the changes that their company has implemented to face slowdown and survive through the crisis, to which he said, “Being a vertical manufacturer, we consume majority of our yarn by ourselves, so we did manage to overcome the situation with joint efforts from all our units internally and hence pressure was not faced solely by our spinning unit alone”.
Thereafter we asked him on the expectations from government in these tough times and what it had one till date, to which he categorically said, “We always believe to create our fortune by ourselves and honestly, we do not expect anything from the government and it has done nothing till date and neither is there chance of it doing anything in the future”.
Fibre2fashion News Desk - India
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