Envoy Textiles Restricted, recognised because the world’s first LEED Platinum-licensed denim textile mill, has unveiled plans to make investments in a waste fabric recycling plant, insist to beginning out industrial production by June 2025.
A meeting of the corporate’s board on Thursday made the choice on the present recycling plant at Envoy Textiles’ contemporary manufacturing facility put in Bhaluka, Mymensingh, in response to sources from the meeting.
Kutubuddin Ahmed, founder and chairman of Envoy Textiles, told TBS that the venture’s total funding is estimated at Tk23.70 crore, with 70% financed thru loans and 30% thru equity.
“We belief to beginning out construction on the present venture as soon as that you will take into consideration and can beginning letters of credit rating (LCs) to import capital equipment from Turkey. Now we like already toured so a lot of fully automatic factories in Turkey,” he talked about.
“We sit down up for that the plant will seemingly be fully operational by the tip of this fiscal twelve months, which is ready to tremendously give a increase to our production skill and contend with the rising sustainability requirements of our purchasers,” Ahmed added.
Envoy Textiles Managing Director Tanvir Ahmed talked about the plant will route of every native and in-dwelling pre-industrial and post-user waste fabrics, converting them into high quality recycled fibre.
He added that after the plant is operational, the corporate will seemingly be ready to replace externally sourced waste cotton with recycled fibre produced internally.
“This initiative just will not be going to simplest increase operational profitability but also contend with the rising demand from our traders for environmentally sustainable production methods,” Tanvir outlined.
He also talked about that the present plant is anticipated to generate a further earnings of over Tk50 crore every twelve months for the textile mill.
Firm Secretary M Saiful Islam Chowdhury told TBS, “Below commended market stipulations, the venture is anticipated to yield annual profits of spherical Tk8 crore to Tk10 crore, making a huge affect on the corporate’s bottom line.”
He further famend, “This initiative aligns with our strategic blueprint of enhancing profitability while also meeting our social responsibility commitments.”
Founder and Chairman Kutubuddin Ahmed described the plant as a strategic pass that just will not be going to simplest give a increase to the corporate’s eco-pleasant manufacturing practices but also bolster its export market draw by enabling extra competitive pricing thru in-dwelling recycled fibre production.
He famend that after operational, the plant is anticipated to expand earnings by a further 5 to eight cents per yard of exported fabric. The skill will route of about 12 tonnes of waste fabric day after day with a ambitious 98% recovery rate, converting the topic fabric into recycled fibre.
For the time being, Envoy Textiles sources up to 4 tonnes of usable waste cotton day after day for legend production, as properly as to the usage of imported virgin cotton.
With the present plant, the corporate will shift from relying on externally sourced waste cotton to utilising in-dwelling produced recycled fibre, further advancing its sustainability targets.
Envoy Textiles presently holds World Recycled Authentic (GRS) and Recycled Articulate Authentic (RCS) certifications, processing 130 tonnes of waste legend per month. With the present venture, the corporate goals to route of roughly 350 tonnes of waste fabric month-to-month.
The company produces spherical 3.5 million yards of denim fabric every twelve months and has an annual turnover of about Tk1,400 crore.
For FY2023-24, Envoy Textiles reported a profit of Tk60 crore, reflecting an 83.Forty five% expand twelve months-on-twelve months.
As of 30 June 2024, the corporate’s Glean Asset Value (NAV) per fragment used to be Tk51.93, up from Tk 38.57 a twelve months earlier. Earnings per Part (EPS) also rose tremendously to Tk3.58 from Tk1.95 the previous twelve months, in response to recordsdata from the DSE.
