Envoy Textiles Limited, known as the world’s first LEED Platinum-certified denim mill, has announced its plans to invest in a waste fabric recycling plant. The facility, expected to start commercial production by June 2025, will significantly enhance the company’s sustainability practices.
Envoy Textiles’ board decided on the recycling plant at a recent meeting. The plant will be located at the company’s current factory site in Bhaluka, Mymensingh. Chairman Kutubuddin Ahmed revealed that the project’s total cost is Tk23.70 crore, with 70% financed by loans and 30% by equity.
“We plan to start construction soon and will open letters of credit (LCs) to import capital machinery from Turkey. We have already toured several fully automated factories in Turkey,” said Ahmed. The company aims to have the plant fully operational by the end of the fiscal year, improving production capacity and meeting clients’ increasing demands for sustainability.
Managing Director Tanvir Ahmed explained that the plant will process both local and in-house pre-industrial and post-consumer waste fabrics, converting them into recycled fibre. “Once the plant is operational, we will replace externally sourced waste cotton with recycled fibre produced internally. This will increase profitability and meet the growing demand for eco-friendly production methods,” he added.
The plant is expected to generate over Tk50 crore in annual revenue. According to Company Secretary M Saiful Islam Chowdhury, the project could yield annual profits of Tk8 crore to Tk10 crore, improving the company’s financial performance.
Chairman Kutubuddin Ahmed highlighted the strategic significance of this move. The recycling plant will strengthen Envoy Textiles’ eco-friendly manufacturing and improve its export competitiveness. He noted that the plant is expected to increase earnings by an additional 5 to 8 cents per yard of exported fabric.
The facility will process 12 tonnes of waste fabric daily, with a 98% recovery rate. Currently, Envoy Textiles sources up to 4 tonnes of usable waste cotton daily for yarn production, along with imported virgin cotton. The new plant will allow the company to rely on in-house recycled fibre, further advancing its sustainability goals.
Envoy Textiles already holds Global Recycled Standard (GRS) and Recycled Claim Standard (RCS) certifications. The company processes 130 tonnes of waste yarn monthly and aims to increase that to 350 tonnes once the new facility is operational.
With an annual production capacity of 54 million yards of denim fabric and a turnover of Tk1,400 crore, Envoy Textiles continues to expand its profitability. The company reported a Tk60 crore profit in FY2023-24, reflecting an 83.45% year-on-year growth. Its Net Asset Value (NAV) per share increased to Tk51.93 from Tk38.57, while Earnings per Share (EPS) rose to Tk3.58 from Tk1.95, according to the Dhaka Stock Exchange (DSE).
Source: The Business Standard
Contact us for a comprehensive understanding of the investment landscape in Bangladesh
