Envoy Textiles, a leading name in the country’s denim industry, is set to establish a state-of-the-art Waste Fabric Recycling Plant at its factory premises in Bhaluka, Mymensingh. The Tk 23.704 crore-project, approved by the company’s board, aims to meet the growing global demand for sustainable production.
The plant will recycle local and in-house waste fabrics, producing high-quality fibres while boosting operational profitability. With a daily capacity of 12 tonnes and a 98 per cent recovery rate, Envoy Textiles states that it expects to begin operations by June next year.
Of the Tk 23.704 crore, the debt-to-equity ratio is 70:30. The company’sBoard of Directors (BoD) approved the plan at its 236th meeting held on last Thursday (September 5), according to a PSI (Price Sensitive Information) disclosure.
"This plant will process both local and in-house pre-industrial and post-consumer waste fabrics, converting them into high-quality recycled fibre," the PSI read, meaning that once operational, the recycling plant will enable the denim manufacturer to replace sourced waste cotton with recycled and in-house fibre.
20% cash dividend
Meanwhile, Envoy Textiles Limited has announced the details of its 29th Annual General Meeting (AGM), set to take place on November 2 at the Gulshan Shooting Club in Dhaka, with a hybrid option for virtual participation.
The company’s BoD, following its 236th meeting on September 5, approved the audited accounts for the fiscal year ending June 30 of this year and recommended a 20 per cent cash dividend, equivalent to Tk 2 per share worth Tk 100. The record date for participation in the AGM and dividend eligibility is September 30. Those whose names appear on the depository register will be eligible to receive the entitled benefits.
Envoy Textiles reported strong financial performance, with a net profit of Tk 60.039 crore, a notable increase from Tk 32.728 crorein 2023, and an increase in Net Assets Value (NAV) per share to Tk 51.93 from the previous Tk 38.57.
The company, in the PSI, estimates that in addition to enhancing operational profitability, the waste fabric recycling plant will meet the growing demand from Envoy Textiles’ buyers for environmentally-sound production practices.
"This strategic initiative not only strengthens our eco-friendly manufacturing credentials, but also positions us favourably in terms of export pricing, giving us a competitive edge," said the company.
"Under the favourable market conditions, the project is expected to generate approximately Tk 80 million in profit annually, contributing positively to the company's bottom-line growth," said the company.
Envoy Textiles is the first Bangladeshi denim project using rope-dye technology and is currently considered as one of the largest denim manufacturers of the country. The manufacturing facility has secured the recognition of being the world's first LEED-certified platinum factory. The Leadership in Environmental and Energy in Design (LEED) certification is bestowed by the United States Green Building Council.
A fully export-oriented denim manufacturing company, Envoy Textiles Limited started its commercial operations in 2008 and became listed in 2012.
