The global textile industry is a dynamic and ever-evolving sector, with denim being one of its most enduring and versatile segments. In Bangladesh, a country renowned for its robust textile and garment manufacturing capabilities, Salek Textile Limited Denim Fabric Unit stands out as a key player in the denim market. This blog post delves into the history, operations, technological advancements, sustainability efforts, and impact of Salek Textile Limited Denim Fabric Unit, shedding light on its contributions to Bangladesh’s textile industry and the global denim supply chain.
A Brief History of Salek Textile Limited
Founding and Early Years
Salek Textile Limited was established in 2004 as a subsidiary of Malek Spinning Mills Limited, a prominent name in Bangladesh’s textile sector since 1991. The company initially focused on producing open-end yarn through its Rotor unit, which began commercial operations in April 2009. This yarn was primarily supplied to local denim fabric and garment manufacturers, laying the foundation for Salek Textile’s expansion into denim production.
Acquisition of Titas Spinning and Denim Company
In August 2010, Salek Textile Limited acquired Titas Spinning and Denim Company Limited, a Germany-Bangladesh joint-venture denim mill in Gazipur, at a cost of BDT 1200 million. This strategic move marked the inception of Salek Textile Limited Denim Fabric Unit. The acquisition was driven by the need to expand production capabilities, especially since the acquired mill already had a gas connection, a critical resource amid Bangladesh’s gas crisis at the time. The denim unit, established in 2006, had a production capacity of 7.5 million meters of denim fabric annually, which Salek Textile aimed to enhance post-acquisition.
Integration into New Asia Group
In 2011, Salek Textile Limited Denim Fabric Unit was acquired by the New Asia Group, a conglomerate with a strong presence in Bangladesh’s textile and garment industry. This acquisition transformed the unit into a deemed exporter, supplying high-quality denim fabric to local garment manufacturers. In October 2014, the New Asia Group merged Titas Denim Limited with Salek Textile Limited, creating Bangladesh’s first fully vertically integrated denim factory. This integration allowed Salek Textile to streamline its supply chain, from yarn production to denim fabric and garment manufacturing.
Operations of Salek Textile Limited Denim Fabric Unit
Production Capacity and Fabric Types
Salek Textile Limited Denim Fabric Unit is a powerhouse in denim production, with a monthly output of 500 tons of open-end (OE) denim and 500 tons of ring-spun (RS) denim. The unit produces denim fabric ranging from 3.50 oz to 15.00 oz, catering to a wide variety of fabric compositions, shades, and weaving patterns. This versatility enables the unit to meet diverse market demands, from lightweight denim for casual wear to heavier fabrics for structured garments.
The unit specializes in producing open-end carded yarn, which is 100% cotton, with yarn counts ranging from 6Ne to 20Ne. This yarn serves as the foundation for the denim fabric, ensuring durability and quality. The facility’s ability to produce both OE and RS denims allows it to cater to different market segments, offering flexibility in texture and finish.
Advanced Technology and Equipment
Salek Textile Limited Denim Fabric Unit is equipped with state-of-the-art machinery to ensure high-quality production. The facility uses advanced technologies such as:
- Slasher Dyeing Technology: For precise and consistent dyeing of denim fabrics.
- Picanol Looms: Known for their efficiency and ability to produce intricate weaving patterns.
- Bruckner Stenter: For fabric finishing, ensuring smoothness and stability.
- Schlafhorst Autocoro: With 360 rotors per machine, this equipment supports high-volume yarn production.
- Front-Loading Machines and Conveyor Dryers: For efficient processing and drying of fabrics.
- Laser Machines: For specialized finishing techniques, such as distressing or pattern creation.
- Oracle ERP System: For streamlined operations and inventory management.
- CCI and Uster Systems: For quality control, ensuring consistency in yarn and fabric production.
These technologies enable Salek Textile to maintain high standards of quality and efficiency, positioning it as a leader in the denim segment.
Vertically Integrated Operations
The vertical integration of Salek Textile Limited Denim Fabric Unit, achieved through the merger with Titas Denim Limited, has been a game-changer. By combining yarn production, denim fabric manufacturing, and garment production under one umbrella, the unit has reduced lead times and improved cost efficiency. This integration allows Salek Textile to maintain tight control over the entire production process, from raw cotton to finished denim garments, ensuring consistency and traceability.
Sustainability and Ethical Practices
Commitment to Sustainability
Salek Textile Limited Denim Fabric Unit is committed to sustainable practices, aligning with global demands for environmentally responsible textile production. The facility adheres to certifications such as OEKO-TEX Standard 100, RCS (Recycled Claim Standard), and BCI (Better Cotton Initiative), which ensure that its products are free from harmful substances and produced using sustainable raw materials.
The unit also operates a Biological Effluent Treatment Plant (ETP), which treats wastewater to minimize environmental impact. This is particularly crucial in the denim industry, where dyeing and finishing processes can generate significant water pollution. By investing in eco-friendly technologies, Salek Textile demonstrates its dedication to reducing its environmental footprint.
Social Responsibility
Beyond environmental sustainability, Salek Textile Limited Denim Fabric Unit emphasizes social responsibility. The company employs approximately 5,000 professionals and invests in their training and development. It fosters a workplace culture that recognizes individual talent and encourages growth, contributing to the well-being of its employees and the surrounding community. Salek Textile also supports projects in education, motivation, quality of life, and social inclusion, reinforcing its role as a socially responsible employer.
Challenges and Closure of the RMG Unit
Closure of the RMG Unit
Despite its success in denim fabric production, Salek Textile Limited faced challenges with its Ready-Made Garments (RMG) unit, established in August 2014. The RMG unit, which specialized in denim bottoms such as shorts, long pants, and skirts, was closed on December 31, 2021, due to accumulated losses and the expiration of the factory’s lease agreement. The unit had been underperforming since its inception, with losses of BDT 12 crore in FY 2019-20 and BDT 2 crore in FY 2020-21. The closure was also influenced by a decline in demand for certain specialized denim garments in the international market, exacerbated by the COVID-19 pandemic’s impact on denim exports.
Malek Spinning Mills Limited, the parent company, decided to sell the RMG unit’s assets to settle its liabilities, ensuring that workers’ salaries were paid. However, the Rotor and Denim Fabric units, including Salek Textile Limited Denim Fabric Unit, have continued operations, maintaining their critical role in the company’s portfolio.
Impact of the Gas Crisis
The acquisition of Titas Spinning and Denim Company in 2010 was partly motivated by the need to secure a gas connection, as Bangladesh faced a gas crisis that limited new industrial connections. This strategic move allowed Salek Textile to maintain production stability, unlike other units such as Newasia Synthetics, which could not commence operations due to the unavailability of gas. The gas connection has been a critical factor in the denim unit’s ability to operate efficiently and meet production targets.
Market Position and Clientele
Key Customers
Salek Textile Limited Denim Fabric Unit serves a diverse clientele, supplying denim fabric to local garment manufacturers who produce for globally recognized brands. Notable customers include Bershka, Mango, New Yorker, Just Group, Ring of Fire (ROF), Basicxx, R&B, and Forever 21. These partnerships highlight the unit’s ability to meet international quality standards and cater to the demands of fast-fashion and casual wear markets.
Competitive Edge
The unit’s competitive edge lies in its vertically integrated operations, advanced technology, and commitment to sustainability. By producing high-quality denim fabric in-house and maintaining strict quality control, Salek Textile ensures that its products meet the stringent requirements of global buyers. Its location in Bhabanipur, Gazipur, a hub for Bangladesh’s textile industry, further enhances its accessibility to local garment manufacturers.
Future Prospects
Expansion and Innovation
Looking ahead, Salek Textile Limited Denim Fabric Unit is poised for continued growth. The company’s investment in modern technology and sustainable practices positions it to adapt to evolving market trends, such as the growing demand for eco-friendly and recycled denim. By leveraging its vertically integrated structure, Salek Textile can explore new fabric compositions, such as blends with recycled fibers or stretch denim, to meet changing consumer preferences.
Navigating Market Challenges
While the closure of the RMG unit was a setback, the continued success of the Denim Fabric unit underscores its resilience. To remain competitive, Salek Textile must navigate challenges such as fluctuating raw material prices, global supply chain disruptions, and increasing competition in the denim market. By focusing on innovation, quality, and sustainability, the unit can maintain its leadership position in Bangladesh’s denim industry.
Conclusion
Salek Textile Limited Denim Fabric Unit is a cornerstone of Bangladesh’s textile industry, exemplifying excellence in denim production. From its strategic acquisition of Titas Spinning and Denim Company to its integration into the New Asia Group, the unit has demonstrated adaptability and innovation. With a robust production capacity, advanced technology, and a commitment to sustainability, Salek Textile continues to supply high-quality denim fabric to local manufacturers serving global brands. Despite challenges, such as the closure of its RMG unit, the Denim Fabric unit remains a vital part of the company’s operations, contributing to Bangladesh’s reputation as a global textile hub
