DBL on $650m expansion spree
DBL Group, one of the leading exporters, is going to invest $650 million to set up 10 manufacturing units for textiles, ceramics, and sanitary ware at the Sreehatta Economic Zone in Moulvibazar.
It made the disclosure during the foundation stone laying ceremony of the DBL Industrial Park at the Pan Pacific Sonargaon Dhaka yesterday. So far, the state-run economic zone has received $1.5 billion in investment proposals.
"The launch of the DBL Industrial Park is an important step towards achieving our vision of pushing forth the next phase of Bangladesh's growth through world-class infrastructure," said MA Jabbar, managing director of DBL Group, at the ceremony.
Set up in 1991, the Group operates in apparel, textiles, tiles, pharmaceuticals, dredging, semiconductor design, ICT and telecommunications.
It has 39,000 employees and recorded a turnover of $600 million in 2018-19. DBL has also invested in Ethiopia, where it has an apparel and textile factory.
"At DBL Group, we challenge conventional manufacturing methods and move the industry towards an efficient and automated platform," said Jabbar.
It will take three years to set up 10 industries on 167.6 acres of land at the industrial park, where 5,630 people will be employed.
"With this integrated and technologically advanced industrial park, we are aiming to upskill workers and create a sustainable co-dependency between man and machine so that our facilities can manufacture standard and luxurious products for both industrial and consumer use," Jabbar added.
The entrepreneur informed that DBL would begin the construction of a spinning mill this month.
Speaking at the ceremony, Ahmad Kaikaus, principal secretary to the prime minister, said the economy of Bangladesh saw continuous growth because of the entrepreneurial spirit of its people and the ever-increasing investment from the industrial sector to expand into new business frontiers.
He said the government had taken up comprehensive development plans to make economic zones a booming manufacturing hubs for advancing towards a more export-oriented economy to boost the development growth
The Bangladesh Economic Zones Authority (Beza) is working to establish 100 economic zones across the country.
"Today, DBL Group has joined the journey of economic expansion to fulfil the goals of creating world-class quality products and materials," said Shaikh Yusuf Harun, executive chairman of the Beza.
"This investment will largely make foreign investors more confident about investing in our economy, accelerating the nation's development progress."
Now, 28 economic zones, including 14 state-owned, are operational.
The industrial park of DBL Group is expected to generate $500 million in revenue annually.
DBL plans to build a world-class textile mill to produce fine cotton yarn and rotor yarn to cater to the diverse needs of the textile industry with a capacity of 43.5 tonnes per day.
The industrial park will also have a polyester recycling unit to produce staple fibre as a raw material for spinning factories with a targeted production capacity of 18 tonnes per day.
DBL will produce more than 40,000 square metres of ceramic wall and floor tiles per day in two production lines in the ceramics factory, the group said in a statement.
In another ceramic facility, it will produce 90 to 99 tonnes of ceramic frit, a major ingredient of ceramic glaze used widely in the ceramic industry, per day.
The industrial park will also house float glass manufacturing, glass processing, and faucet manufacturing units and a dry mortar facility for liquid-solid admixture and chemicals to install and repair tiles.
The dry mortar facility will generate revenues of $8.8 million per year.