The spinning industry in Bangladesh is facing eroding margins and increasing cost of power and wages. The interest rate will reach two digits soon and the local currency is going to be devalued. These challenges may become issues in the near future. Consequences may arise from the exit from LDC status that is expected beyond 2021.
Inefficient machinery and equipment need to be replaced. Focus would be on replacement of major spinning components like motors, spindles, rings and systems to make spinning energy efficient, productive and profitable. There needs to be new investment and expansion in 100 per cent cotton yarn spinning. Bangladesh is predominately a cotton knit garment exporter and requires cotton ring carded and combed yarn. So, ring investment would be focused on mostly carded with auto-doffing and compact attachment.
The new investment and expansion in blended yarn spinning would be dominated by air jet spinning or Vortex. Vortex yarn has cost advantages over ring yarn. Investment in specialty yarn would be in the form of recycled yarn, new and specialty blended yarn, special count yarn, and mélange yarn. The focus should be to manage efficiently the spinning process from planning, material, process, system, marketing, finance to currency, interest and capital market and people.