AR Jeans Producer Ltd., a sister concern of Fashion Globe Group is country’s one of the top Leed Platinum certified green denim Manufacturing plants. A R Jeans Producer Ltd. strives for sustainable and accountable business practices in Bangladesh and is establishing the definitive business model that manufacturers and customers can follow for the benefit of everyone. A R Jeans Producer Ltd.’s commitment and passion, to people, families, workers and the planet translates into a driving force towards sustainable business. Md. Nazmul Kabir is the Managing Director of AR Jeans Producer ltd. This company is successfully led by him and Mr. Kabir is spreading his business all over the world and contributing to BD’s economy with significant value. Recently Team Denim Focus met and talked with this dynamic businessman. He talked about challenges, and new market opportunities. The conversation is drafted below for our readers-
Denim Focus: How do you see the current situation of Denim Industry?
Md. Nazmul Kabir: The current scenario of the textile industry of Bangladesh is really bad. Hopefully, soon we will see the Post-COVID situation, maybe next year in June. By that time, people all over the world will get vaccinated and there won’t be any lockdown. So, the scenario of the textile industry & business may get better then. Talking about the COVID-19 situation, nobody knew about this situation earlier, so we were not prepared for it. During the pandemic, cotton production, backward linkage, the supply chain was completely shut down. As a result, now the supply chain is facing extreme difficulties. For the last 4 months, the price of cotton, yarn & fabrics is increasing continuously. We are getting orders from the buyer, for the last 4-5 months. Due to the high price of raw materials & lower price offering from the buyers, we are only being able to receive 30% orders & rejecting the 70% orders. At this moment, we are not being able to understand the difficult scenario of the textile industry. But we may not get enough orders after few months, unless If we control the price increasing of the raw materials.
Denim Focus: From your perspective, how can we cope-up with increasing price of the Raw Materials?
Md. Nazmul Kabir: In our country the demand for yarn is huge and for the last few months, the price of yarn is increasing constantly. Recently BGMEA & BKMEA has published a notice about reducing yarn price in Bangladesh, which is not being maintained by the spinning mills. In general yarn price in Bangladesh is 30% higher than the yarn price in India or Pakistan as well as for fabrics. Our neighboring countries, India & Pakistan, are already aware of this. So, if we think about importing any fabric from India or Pakistan, they prepare a costing list as per the same cost of that fabric in Bangladesh, though the price of that fabric is quite less in those countries. Here, those countries become the benefit-taking body of the situation. Again, some factories are thinking to stock yarn to cope up with this situation. But this is not possible for us as in our country, RMG works are performed through LC. So, stocking a limited amount of yarn will not be the solution to this problem. Maybe large RMG factories can cope up with this situation, but for medium & small RMG factories the business scope is getting narrow. I would request, BGMEA & BKMEA to fix a margin price of yarn as soon as possible.
Denim Focus: What would you like to say about New Market Opportunities & New Investments?
Md. Nazmul Kabir: Talking about new market opportunities, Japan could be a new market opportunity for Bangladesh RMG sector. But China & Korea have grabbed that market, though they are completing those orders by us. Again, Korea is providing us various orders. On the other hand, the RMG market opportunities of South America & Australia got affected due to COVID 19. The European market is picking orders now. I would like to add, Gulf market can be a potential market for us if we can. And about new investments, I would say suits can be a source of new opportunities for our country, as this sector is comparatively less competitive.
Denim Focus: What are the product varieties & specialty of AR Jeans? How do you practice sustainability?
Md. Nazmul Kabir: AR Jeans is a mainly denim-based factory, manufacturing denim products such as denim jackets, jeans pants, etc. for both males & females. We also have sustainable washing plants, where we perform our denim washing. Our specialty is we complete our orders within a short lead time, 70-80 days. Talking about sustainability, AR Jeans is a LEED Platinum factory. We use rainwater, solar energy, less electricity, less carbon emission & other suitability facilities. We do this not for attracting our buyers but for our responsibilities towards nature. It is also true that, though we are a sustainability practicing factory, our buyers are not willing to pay any extra cost for that.
Denim Focus: What are the upcoming plans of AR Jeans Producer Ltd?
Md. Nazmul Kabir: Currently, we have a good number of orders that will be completed by September & October. Later the situation may get difficult due to the continuous price increasing of raw materials. Buyers are also holding back the orders & waiting for the raw materials price to reduce. Now, our only plan is to survive steadily in the market with our 6000 families, so that we can lead our regular life as usual. After COVID-19 situation, I believe, there will be big market opportunities for us.
Denim Focus: Any Message for Bangladesh Textile Industry?
Md. Nazmul Kabir: At present, the biggest challenge for Bangladesh’s RMG sector is the continuous price increase of yarn & fabric. Everyone needs to come forward & work on this matter. I would request, BGMEA & BKMEA to fix the margin price of yarn. When the price will come within a margin line, then it will be possible for the RMG sector to grave the pending orders as well as more new orders.