{"id":2615,"date":"2010-09-30T05:08:56","date_gmt":"2010-09-30T12:08:56","guid":{"rendered":"http:\/\/www.denimsandjeans.com\/denim-mills\/denim-mills-intl\/arvind-plans-a-denim-mill-in-bangladesh\/"},"modified":"2010-09-30T05:26:06","modified_gmt":"2010-09-30T12:26:06","slug":"arvind-plans-a-denim-mill-in-bangladesh","status":"publish","type":"post","link":"https:\/\/www.denimsandjeans.com\/recovery\/denim-mills\/denim-mills-intl\/arvind-plans-a-denim-mill-in-bangladesh\/2615","title":{"rendered":"Arvind Mills Plans A Denim Plant At  Bangladesh"},"content":{"rendered":"<p><a href=\"http:\/\/www.denimsandjeans.com\/denim-mills\/denim-mills-intl\/arvind-plans-a-denim-mill-in-bangladesh\/\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"arvind bangladesh\" style=\"border-right: 0px; border-top: 0px; display: inline; border-left: 0px; border-bottom: 0px\" height=\"358\" alt=\"arvind bangladesh\" src=\"http:\/\/www.denimsandjeans.com\/wp-content\/uploads\/2010\/09\/arvindbangladesh1.png\" width=\"334\" border=\"0\" \/><\/a> <\/p>\n<p><strong>Arvind<\/strong> , the largest denim company in India with a capacity of about 110 million mtrs , is planning to set up a manufacturing plant in Bangladesh in a 80:20 joint venture with <a href=\"http:\/\/www.nitolniloy.com.bd\/nitol_motors.html\" target=\"_blank\">Nitol Group<\/a> of Bangladesh . The planned investment is about $69 million over a period of three years. In the first phase, a plant of 10 million mtrs would be set up with an investment of about $25 million and then it will be scaled up in the coming years. <\/p>\n<h2><font color=\"#808080\"><em>Why Arvind Wants To Put Up&#160; A Plant In Bangladesh ?<\/em><\/font><\/h2>\n<p>There are just too many reasons to justify this move by Arvind. In fact , there could not be a better place&#160; for Arvind to go for to set up a new plant for denim.<\/p>\n<ul>\n<li>It is a Huge Market and consumes almost around <strong>300 million mtrs of denim p.a out which about 100 million mtrs<\/strong> is imported . We have seen a number of new denim plants been set up in Bangladesh in the last few years and this has taken the domestic production capacity up to 200 million mtrs. <\/li>\n<li>Bangladesh enjoys the <strong>GSP benefit<\/strong> to the EU ie the garment exports from Bangladesh to EU are duty free . This provides a huge benefit to the local industry in Bangladesh \u00e2\u20ac\u201c a benefit Arvind aims to tap. <\/li>\n<li>Bangladesh was the <strong>top export performer in the EU market<\/strong> in 2009 with a 6% growth whereas most of other countries suffered a fall in exports to EU to global recession. Bangladesh exported a total of Euro 5.9 billion worth of goods (over 90% were garments) to EU. <\/li>\n<li>Bangladesh exported a total of about <strong>89.6 million pieces of jeans to EU in 2009 against only 8.1 million pieces<\/strong> from&#160; India . <\/li>\n<\/ul>\n<p>There are significant cost advantages in Bangladesh as compared to India. These relate to labour&#160; costs, power costs and cost savings due to efficiencies of scale. Eg, the power cost in the <a href=\"http:\/\/www.epzbangladesh.org.bd\/bepza.php?id=epz-col\" target=\"_blank\">Comilla Export Processing zone<\/a>&#160; ,where Arvind will set up its plant , is about Taka 4.18 \/kwh which translates to about Rupess 2.69 (<strong>about 6 cents<\/strong>) . Compare this with the cost of power that <a href=\"http:\/\/www.arvindmills.com\/pdf\/quaterly_financial_reporting\/Review_Note_Q2_09_10.pdf\" target=\"_blank\">Arvind is currently incurring\u00e2\u20ac\u201c<\/a> Rs 3.8\/kwh at Naroda plant and Rs 4.7\/kwh at its Santej plant (about 8.5 to 10.5 cents\/kwh). There will thus be a saving of about <strong>30% in power costs alone<\/strong>. The labour, overheads and freight costs would be some of the&#160; other categories where Arvind would save substantial costs. <\/p>\n<p>The lower costs in Bangladesh are one of the reasons why the <strong>average price<\/strong> of export of Denim Apparel from Bangladesh was&#160; <strong>Euro 4.17 in 2009 as compared to Euro 9.46 from India <\/strong>. The difference is Huge ! .&#160; In all likelihood, Arvind will go for a forward integration for export of garments from Bangladesh and aim to utilize all its fabric for own orders. This will mulitiply the gains accruing to it .<\/p>\n<p>All the above mentioned factors and more have contributed to Bangladesh becoming a favourite destination for denim garment exporters and encouraging the denim major Arvind to set up base there .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arvind , the largest denim company in India with a capacity of about 110 million mtrs , is planning to set up a manufacturing plant in Bangladesh in a 80:20 joint venture with Nitol Group of Bangladesh . The planned investment is about $69 million over a period of three years. In the first phase, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[29],"class_list":["post-2615","post","type-post","status-publish","format-standard","hentry","category-denim-mills-intl","tag-denim-news"],"_links":{"self":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/2615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/comments?post=2615"}],"version-history":[{"count":0,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/2615\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/media?parent=2615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/categories?post=2615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/tags?post=2615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}