Hamid Fabrics, a known manufacturer of non-denim fabrics for bottoms, is a part of the Mahin Group, initiated as a garmenting company in the 1980s before venturing into textiles, which is today the core business of the Group. Present facilities include two units for continuous dyeing and finishing, and a weaving mill. In the pipeline is a yarn dyed shirting fabric manufacturing facility, and a design studio. With just 8 sewing lines, the garmenting operations are very small, but plans are for reviving the business vertical. When Hamid Fabrics went public recently with an IPO of BDT 105 crore, it was oversubscribed 9 times, a reflection of the trust that investors repose in the company.
The progression from being a garment manufacturer to a textile giant was a well-thought-out journey to become self-reliant in meeting internal needs for fabric. Three decades later, the fabric wing of the Mahin Group, Hamid Fabrics is producing around 2.5 million metres/month of solid dyed fabric. Very upbeat of the potential, the company will set up a yarn dyed shirting fabric manufacturing facility with an initial production capacity of 1-1.5 million metres per month that will go up to 3-3.5 million metres in 2015. “In the process of expansion we might do a little restructuring; keep 2 million for solid dyed and the balance for yarn dyed fabrics for shirting,” avers Abdullah Al Mahmud, MD, Hamid Fabrics.
The company claims to be among the biggest consumers of cotton yarns coming from India, buying about 70% of its commodity yarns and blends from top mills like Vardhman, while 30% is sourced locally and some specialized blends sourced from Vietnam and Indonesia. According to Mahmud, though Indian yarn is good, there are certain hiccups in procurement, especially in the delivery. The lead time for yarn delivery to Bangladesh is 30-35 days, as the yarns are sent via the Colombo Port with a frequency of twice a week. “If you miss one vessel, then you have to wait 5-7 days as the Colombo Port is facing a lot of congestion. Though the ‘by road’ option is available (through Binapole), for some unknown reason, it is only for knit yarn, and not woven. When I mentioned this to the Textile Minister in a meeting some years ago, he too was not aware of this, and though he said that he would solve the issue, nothing has changed,” shares Mahmud.
“In the 90s, I was producing 400,000 pieces of denim trousers a month, but now there are many factories producing even a million pieces. Anybody can enter the garment business, but textiles require professional skill and technical know-how. By having backward linkage capabilities, one can develop a mutually beneficial two-way synergy and support garment manufacturers, attracting more business.”
Always proactive in responding to business needs, the plan to set up a yarn unit was born from the fast increasing demand for fabric, which was difficult to meet from imported yarn. Currently, the company is consuming 40 tonnes of yarn a day, but once the new mill becomes operational in mid 2015, the requirement of yarn will increase to 50-55 tonnes. “To meet our growing needs we plan to set-up a 50,000 spindles capacity unit to produce 50% of the yarn needed; the rest 50% will continue to be outsourced,” informs Mahmud, who attributes the 50% break-up to ‘playing safe’ as he does not want to rely on 100% outsourced yarn. “It’s good to have 50% control and also certain flexibility as the market is constantly changing. Plus, there is demand for yarn dyed like 100/80/120 double, for which Bangladesh does not have the capacity, but a lot of Indian mills do,” he adds.
The company’s shift from the garment business to textiles was a strategic move, which Mahmud feels other companies should seriously consider making. “In the 90s, I was producing 400,000 pieces of denim trousers a month, but now there are many factories producing even a million pieces. Anybody can enter the garment business, but textiles require professional skill and technical know-how. By having backward linkage capabilities, one can develop a mutually beneficial two-way synergy and support garment manufacturers, attracting more business,” argues Mahmud.
Though, Hamid Fabrics is often referred to as the pioneer of fabric manufacturing in a country better known for its garment industry, according to Mahmud, the credit goes to Beximco, which entered the fabric space in the mid 90s, followed by Munnu and Opex, and then to Hamid Fabrics. “We learnt a lot from these companies so it was easier for us to execute our plans. We got production experts from Hong Kong, machines of German make, and dyes from Germany and Switzerland, and with our focus on quality, we have zero tolerance,” says Mahmud. The company is the nominated global supplier for PVH and A&F and is also supplying to M&S, H&M, Zara, Espirit and S. Oliver in EU, besides doing some business in Japan as well.
Mahmud envisages good growth for the fabric industry given that the RMG industry has been growing by 10% in the last 5 years, and the trend is likely to continue for two more decades. “With RMG generating increasing demand, the fabric business would automatically thrive. I also foresee India and China buying a lot of finished goods from Bangladesh; the two countries together would comprise a growing base of around 500 million consumers so the potential for RMG in Bangladesh is immense, and for the next 10-15 years I don’t see a dip in demand,” reasons Mahmud.
When Hameed Fabrics went public with an IPO, it was oversubscribed 9 times. “We applied for BDT 105 crore and got a response for BDT 930 crore. Such confidence in us gives me the encouragement to go for more expansions,” says Mahmud. The company has gradually moved from basic fabrics and is expanding its range to meet emerging fashion trends and demand. On the anvil is a large design studio for which Mahmud is in talks with some Italian and American partners to invest in, and which he hopes will be set up by 2015 in the company’s textiles unit. With so many expansions happening, the company will cross the US $ 100 million mark in 2015, and Mahmud anticipates a turnover of US $ 150-175 million in 2016. With a current turnover of US $ 85 million, the company is the biggest entity of the Mahin Group.
Bharat Tex Special Report 2026 
