Hamza Textile Limited, a sister concern of DBL Group, plans to increase its production capacity of manmade and mixed-fibre fabrics to meet the rising demand for casual wear in the time of the Covid-19 pandemic.
Top officials of the company said the demand for casual wear and sportswear has gone high during the pandemic. On the other hand, the demand for formal apparels has slumped.
According to the project proposals, Hamza Textiles Limited is increasing its per day finishing capacity from 100 tonnes to 180 tonnes.
"The group has decided to extend the capacity to meet the growing demand of our apparel manufacturing units," said Zahid Ullah, chief sustainability officer of DBL Group.
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has proposed a loan of $11.35 million to Hamza Textiles Limited from the Blended Finance section with a tenure of eight years including a two-year grace period.
The company requires the long-tenure loan to have the necessary financial flexibility to implement a more advanced manufacturing technology and to invest in resource efficiencies.
DBL Group has taken such a project by undertaking a backward integration and energy efficiency programme through expanding its finishing capacity, which will create about 930 new direct jobs, according to the company officials.
The project will help DBL Group increase its product and process complexity and strengthen its vertical integration by modernising the fabric production facilities which in turn will improve profitability and quality of products.
Besides, the project will enable the company to reduce its lead time to the end apparel retailers.
The expanded capacity will be operational by the end of 2021.
Hamza Textile Ltd was established in 2004 for fabric dyeing and finishing in the Mymun Industrial Complex in Kashimpur, Gazipur.
Apparel, textile manufacturing and exporting conglomerate DBL Group started its journey in 1991.
Its apparel and textile operations cover the entire value chain of the knitted garment manufacturing process including cotton spinning, apparels and knitting, fabric dyeing and finishing, printing, embroidery, sewing and packaging, ceramic tiles, pharmaceuticals, dredging, semiconductor design (VLSI), ICT, and telecommunications.
The annual turnover of the company in 2018-19 was $600 million. The company started its first offshore business in Ethiopia for apparels and textiles creating employment opportunities for 4,500 people.
The group's main buying partners are H&M, C&A, Puma and Asda. DBL's facilities are also a part of Better Work Bangladesh and undergo regular audits.
The shareholders of the Hamza textile ltd are Abdul Wahed (16.12%), Mohammed Abdul Jabbar (25%), Mohammed Abdur Rahim (19.44%), Mohammed Abdul Quader (21.11%) and immediate family members (18.33%). They are also the owners of the DBL Group.
IFC has been engaged with Hamza Textile and other companies of DBL Group since 2011 on various programmes. Through these engagements, IFC's relationship with the DBL Group has strengthened.