Argon Denims plans expansion as demand rises

Argon Denims, a subsidiary of Evince Group, plans to purchase nine air jet looms at Tk 5 crore to increase its production capacity and generate higher revenue.

“Our reputation is increasing in the international markets and customers have confidence in us. We need to expand our business to meet increased demand,” said Anwar-ul Alam Chowdhury, managing director of Argon Denims.

“Without expansion we cannot keep meeting customers' requirements,” he said, adding that his company currently produces around 13 lakh yards of denim fabrics a month with 106 looms.

The new looms will increase the company's versatility in making value-added products, he added.

“We are going for value added products and the new machines will help us diversify these,” said Chowdhury, also chairman of Evince Group.

With an air jet loom, it is easy to manufacture high-quality denim fabrics, he said.

Apart from supplying to international retailers and brands, Argon Denims has started exporting fabrics to Vietnam. “We also plan to export denim fabrics to China.”

Based in Gazipur, Argon Denims mainly produces medium and premium range denim fabrics and exports to brands like H&M, Tesco, Zara, Bershka, Alcott, Next, C&A, P&B, Lefties, Matalan and Aldi, according to its website.

Listed on the stockmarket in 2013, each share of the company traded between Tk 26.2 and Tk 25.4, before closing at Tk 25.7 on the Dhaka Stock Exchange yesterday.

The company's earnings-per share fell to Tk 1.39 at the end of June, from Tk 1.93 a year ago.

Some 25 denim factories operate in Bangladesh now, producing around 20 million yards of the fabric a month to meet half of the local demand. The rest is imported. Five to six new companies are also setting up factories.

Currently, 41 textile companies are listed on the premier bourse, accounting for around 4 percent of total market capitalisation that stood at Tk 337,005 crore after yesterday's trade.