Envoy Textiles to Invest in Major Waste Fabric Recycling Plant

Envoy Textiles Limited, renowned as the world’s first LEED Platinum-certified denim mill, has announced a landmark investment in a cutting-edge waste fabric recycling plant. Set to commence commercial operations by June 2025, this new facility will be located at the company's existing site in Bhaluka, Mymensingh.

The decision to proceed with the recycling plant was made during a board meeting on Thursday, according to insiders. The total investment for this project is estimated at Tk23.70 crore, with funding sourced from 70% loans and 30% equity.

Kutubuddin Ahmed, the visionary founder and chairman of Envoy Textiles, shared with TBS that construction on the new plant will begin shortly. The company plans to open letters of credit (LCs) to import advanced capital machinery from Turkey, following a series of inspections at fully automated Turkish factories.

“We expect the plant to be operational by the end of this fiscal year,” Ahmed said. “This expansion will not only enhance our production capabilities but also align with the growing sustainability expectations of our clients.”

Managing Director Tanvir Ahmed emphasized that the new facility will be pivotal in processing both local and internal pre-industrial and post-consumer waste fabrics, transforming them into high-quality recycled fibers. This move will reduce the need for externally sourced waste cotton, ultimately bolstering both profitability and environmental responsibility.

“This initiative is designed to enhance our operational efficiency and respond to increasing buyer demand for sustainable production methods,” Tanvir explained. “The new plant is projected to contribute an additional Tk50 crore in annual revenue.”

Company Secretary M. Saiful Islam Chowdhury highlighted the financial benefits of the project, forecasting annual profits of Tk8 crore to Tk10 crore under favorable market conditions. “This venture supports our strategic objective of profitability while fulfilling our commitment to social responsibility,” he noted.

Kutubuddin Ahmed described the plant as a strategic advancement that will enhance the company’s eco-friendly manufacturing practices and strengthen its position in the export market. With the ability to produce in-house recycled fiber, the plant is expected to increase earnings by an additional 5 to 8 cents per yard of exported fabric. The facility will process approximately 12 tonnes of waste fabric daily, boasting an impressive 98% recovery rate.

Currently, Envoy Textiles utilizes up to 4 tonnes of waste cotton daily for yarn production, supplemented by imported virgin cotton. The new plant will shift the company’s reliance from external waste cotton to internally produced recycled fiber, further advancing its sustainability goals.

Holding Global Recycled Standard (GRS) and Recycled Claim Standard (RCS) certifications, Envoy Textiles processes 130 tonnes of waste yarn monthly. With the new project, the company aims to increase this capacity to about 350 tonnes of waste fabric per month.

The company, which produces approximately 3.5 million yards of denim fabric annually, reported a robust annual turnover of Tk1,400 crore. For FY2023-24, Envoy Textiles recorded a profit of Tk60 crore, marking an impressive 83.45% increase from the previous year.

As of June 30, 2024, the company’s Net Asset Value (NAV) per share had risen to Tk51.93 from Tk38.57, while Earnings per Share (EPS) surged to Tk3.58 from Tk1.95 the previous year, according to data from the DSE.