Shasha Denims, one Bangladesh’s premier denim manufacturer is set to expand its production capacity by 10 lakh yards to 28 lakh yards in the next one and a half years, following the regulatory approval in October to raise funds from public. The company expects to raise BDT 175 crore through the IPO and 88 per cent of the fund will be spent on the expansion project. The balance will be used for partial repayment of bank loans and the rest BDT 2.77 crore for bearing the expenses of the IPO proceedings.
According to Jamal Abdun Naser, Director, Shasha Denim, 25 local makers produce 30 million yards of denim fabrics per month against a monthly demand of 60 million yards. To fulfil the demand, 30-35 million yards of fabrics worth US $ 75 million are imported every month different countries, including China, India and Pakistan. “So, we are focusing on producing quality denim fabrics so that it helps the local users be more competitive in the international markets,” he added.
