H.R Textile to invest in sustainable production
The apparel manufacturer expects the new facility will increase its annual turnover to Tk365 crore, from Tk225 crore at present
H.R Textile, a high-value apparel manufacturer for European markets, plans to expand its capacity in sustainable production and a variety of products.
To this end, the company – a sister concern of the Pride Group, leading apparel exporters in Bangladesh – will invest Tk80 crore, raising the funds from the capital markets with zero-coupon bonds.
As per the projection of the textile mill's board of directors, the new facility will increase its annual turnover to Tk365 crore, from Tk225 crore at present.
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Besides, it will help create about 1,500 fresh jobs above the current employment of about 2,500 people at H.R Textile.
Talking to The Business Standard, H.R Textile Director Professor Mohammad Abdul Momen said, "We plan to expand our capacity in sustainable production, as global buyers are moving towards more environmentally friendly products in terms of consumption of energy, water, and chemicals."
In this regard, the textile factory has a plan to convert its existing chemical effluent treatment plant (ETP) to a biological ETP to make it more environment-friendly, he added.
Our business also plans to install some latest technologies and machinery to make it a more efficient production centre, said Professor Abdul Momen, who is also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The factory is producing women's wear for European markets – mainly Spanish fashion giant INDITEX Group – and some buyers for German and French markets.
"We are producing high-value products for summer and winter. That's why we have full orders all year round," said Professor Momen.
He also mentioned that the company can meet 100% of buyer requirements with its own fabrics in line with a variety of products.
The enhanced capacity will help the company offer some diversified products to existing buyers to boost its turnover, he added.
According to the financial report from April to June last year, the company's revenue increased by 28%, despite the 66-day general holidays from March 26.
They also paid a 10% cash dividend to shareholders for the last fiscal year.
In the first half of this fiscal year, its revenues rose by 18% to Tk138 crore.
The textile mills got listed on the Dhaka Stock Exchange in 1997 and their share price was Tk32.90 on Thursday.
