Textile machinery sellers expect higher sales in 2024

International textile and garment machinery sellers are optimistic about a rebound in their business in Bangladesh this year as the global clothing supply chain is recovering from the sluggish trend.

Apparel sales slowed significantly in 2023 because of a fall in demand from the end consumers amid higher inflationary pressure stemming from the severe fallouts of the Covid-19 pandemic and the Russia-Ukraine war, they said.

But this year, machinery sellers are getting a lot of inquiries from the garment makers thanks to a rise in work orders from the international clothing retailers and brands in recent months, they said.

That is why, the international machinery sellers are optimistic for 2024 as the higher apparel export means a rise in sales of textile and garment machinery.

A group of global textile and garment machinery sellers and their local agents made the comments while talking to The Daily Star at the ongoing 18th Dhaka International Textile and Garment Machinery Exhibition.

The four-day event began at the International Convention City Bashundhara in Dhaka yesterday.

Abu Taleb Bhuiyan, CEO of Best Tex International, the Bangladesh agent of six international denim textile and garment machinery companies, said his sales decreased nearly 40 percent year-on-year to 8.5 million euros in 2023.

However, the goal for 2024 is to sale 20 million euros worth of machinery in Bangladesh, Bhuiyan said while sitting in his booth at the DTG exhibition.

"All over the world the business is dull, but Bangladesh is a place of hope as the machinery business is growing here and will grow this year," said Hasan Bozkurt, a representative of the export department of Turkish company Karmak.

Last year, Karmak sold 20 units of machinery mainly in washing and dyeing segments and expects to sale 50 this year in Bangladesh, which is its biggest market.

Karmak has an office in Dhaka and it has been selling machinery in Bangladesh for the last 10 years.

Bozkurt's Bangladeshi colleague Kazi Tawfiq-uz-Zaman said local garment and textile manufacturers are mainly looking for sustainable machinery, which consume low amount of water and energy.

Previously, over 120 litres of water were required to wash a kilogramme of denim fabrics, but now Karmak's machinery requires only 30 litres or even lower, Tawfiq-uz-Zaman said.

The textile sector made little investment in machinery in the last one year because of the lower demand of garments, said Md Harun-ur Rashid, managing director of Textile Associates Limited, the local agent of Rieter, a Swiss machinery company.

"We are hopeful that the global supply chain will turn around this year."

The business was normal until the middle of 2022, but 2023 was not a good year as the demand for clothing items fell globally, Rashid said.

Sales were a bit low last year, but not bad in Bangladesh, said Md Tanzilur Rahman, senior assistant manager of Pacific Associates Ltd, a seller of machinery made in Germany, Italy, Spain, China, Hong Kong and Japan.

Last year, Rahman's company targeted selling $80 million worth of machinery but could achieve only $38 million.

Before the emergence of the Covid-19 pandemic, Pacific Associates used to annually sell machinery worth $78 million, he said.

This year, Rahman aims at selling $74 million worth of machinery as the inquires for such machines increased.

Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said they accepted a 178 percent hike in gas price in 2023 because of the assurance of providing them with an uninterrupted gas supply, but the authorities failed to do so.

In his speech given in a seminar on the sidelines of the expo, the BTMA leader also urged the government to take stern action against the loan defaulters.

At the inauguration of the exhibition, Salman F Rahman, private industry and investment adviser to the prime minister, shade light on the recent export subsidy cut.

He said businesses can discuss the subsidy cut with the government if they want, but it is needed to come out from the subsidy culture.

This year, 1,100 exhibitors from 33 countries are exhibiting their machinery occupying 1,600 booths at the Dhaka International Textile and Garment Machinery Exhibition.

The BTMA, Chan Chao International Company Ltd and the Yorkers Trade & Marketing Services Co Ltd are jointly organising the exhibition.