Damodar Industries Ltd., a famous Indian yarn maker, is aiming at increasing its annual exports to Bangladesh to 2,000 tonnes. The company hopes to achieve this target within the next three years. At present, Damodar Industries supplies 500 tonnes of yarn to Bangladesh per year. The company believes it to be a very realistic target and hopes to easily achieve it on time. This company deals with twelve major suppliers in Bangladesh and is the main source for getting raw materials for them. In the last few years, the focus of international garment companies has shifted from China to Bangladesh. Due to rising costs, China is no longer their preferred shopping place. Shortage of skilled workers in China is another factor that is driving the foreign companies away.
Most of the garment companies from all over the world no prefer to buy garments from Bangladesh as it is providing high quality products at very low prices. The same shift is being seen in yarn exporters as well and they too give preference to export to Bangladesh rather than China. In 2015, Bangladesh exported apparels worth $ 26.5 billion and this figure is going to be even higher this year. By the year 2021, Bangladesh hopes to increase its garment export to $5 0 billion and going by the current trend it should get there easily. Due to Bangladesh’s ties with big international brands as well as retailers it has become a respected and favoured destination in the garment industry.
Since Bangladesh is exporting huge quantities of apparels to numerous countries throughout the world the yarn exporters know that they are going to get repeat business which will keep growing with time. This has made many of them very keen to do business with this country. Cost factor is also influencing this decision in Bangladesh’s favour as it is much more competitive than China in terms of prices. Winsome Yarns Ltd., is another Indian company that does a huge amount a business with companies based in Bangladesh. According to Mr. Chunmay Sharma, Manager (Export) at Winsome Yarns, the company is confident that they will be doing annually increasing business with Bangladesh.