About the industry
Nature of Business
The main activities of the Company are concentrated in Manufacturing Dyeing, Weaving & Finishing of 100% Export Oriented Denim Fabrics and exporting the same. The company produces a single product ‘denim fabrics’ of various specifications, compositions, color and qualities.
Denim is a hard-wearing cotton warp-faced twill fabric.
Denim was traditionally colored blue with indigo dye to make blue jeans, although "jean" formerly denoted a different, lighter, cotton fabric. Denim has been used in the USA since the mid-19th century.
The wide consumption of denim by fashion enthusiasts globally has created a new opportunity for Bangladesh. It has become a major sourcing hub for trendy denim products for international retailers for its competitive pricing.
The industry in Bangladesh presently has 25 denim producing factories with total investment of over USD 834 million. The monthly productions of denim stand at 30 million yards per month while the demand of nearly 60 million yards. To fulfill the balance demand, imported 30 to 35 million yards per month from countries like China, India & Pakistan which average value is USD 75 million. The total investment in the denim sub-sector is USD 900 Million according to BTMA data.
Currently, Bangladesh is the third largest denim exporter to the US, after Mexico and China, with an 11.3 percent market share, according to the US Department of Commerce.
Moreover, global Market for Denim is forecast to reach USD 64.1 billion by 2020. In 2013-2014, export of denim products to the USA and EU markets rose by roughly 25 percent and day by day it is increasing. The total denim production of the whole world is approximate 7.66 billion yards and within these total 70% fabric is produced in Asia.
Bangladeshi entrepreneurs supply denim products to world’s famous retailers such as H&M, Uniqlo, Levi's, Nike, Tesco, Wrangler, s.Oliver, Hugo Boss, Puma, Primark, Wal-Mart, JC Penney etc.
The future of Bangladesh’s denim industry is bright. To meet the growing demand of denim fabric to International market, the local mills are investing hugely on state-of-the-art imported machineries especially on the weaving & processing side and setting up large plants in the country.
There is huge demand–supply gap for the product of the Company in the denim fabric market (Local and International market). Being one of the high quality denim fabric producers in the country, PDL (having 3.50% of total market share) is capable of exploiting the opportunities though there are a number of competitors in the denim fabric market.