$20m lifeline to reopen 15 Beximco mills by December under global partnership
Agreement will initially run for two years and four months
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After nine months of closure, fifteen factories under Beximco Textiles are set to reopen in December, as an agreement between Janata Bank, Japanese firm Revival, US-based Ecomillie and Beximco Group nears finalisation.
Beximco Group officials said the deal is expected to be signed next week after Janata Bank's board reviews the draft on Tuesday. The factories will reopen once the advisory committee, led by Brig Gen (retd) Sakhawat Hossain, approves the agreement.
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Revival will invest an initial $20 million, financed by Ecomillie, officials involved in the process said. The reopening could restore jobs for more than 25,000 workers.
The three sides prepared a draft framework on 8 October. Revival and Ecomillie are largely owned by non-resident Bangladeshis, many of whom graduated from Buet and now run businesses in Japan, the United States and other markets.
Before the shutdown, Beximco Textiles owed nearly Tk35,000 crore to Janata Bank and other lenders. About Tk23,000 crore was owed to Janata Bank alone, and all loans remain classified.
The draft agreement states that Revival will not assume responsibility for any outstanding debts. Janata Bank will also provide no new loans. Revival will supply the necessary working capital and receive a service charge of 1.5% to 2.5% on export earnings.
The agreement will initially run for two years and four months, with an option to extend. After paying wages, taxes and operating costs, Janata Bank will receive all net profits to recover Beximco's loans and repay the government's Tk585 crore support provided at the time of closure.
Beximco Group will not receive any share of profits from exports.
Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun told TBS that the reopening process was coordinated by the labour ministry, finance ministry, central bank and Janata Bank.
Revival CEO and co-founder Huda Mohammed Faisal said the initiative aims to restore dignity and rebuild trust for thousands of families.
Ecomillie President Farhan S Karim said the effort reflects "brain gain rather than brain drain", showing how expatriate expertise can strengthen national industries while restoring livelihoods.
Beximco Limited Managing Director Osman Kaiser Chowdhury said the textile division maintained professionalism until the shutdown and protected 42,000 jobs despite severe financial pressure.
Beximco woes after 5 Aug
Wage arrears mounted after the fall of the Hasina government on 5 August last year. The interim government took extensive legal action, including freezing bank accounts, seizing assets, and pursuing money laundering and default loan cases against the group's owners and affiliates.
The government later cleared workers' dues and ordered the factories to close in February, providing Tk585 crore in interest-free loans to stabilise the situation.
Beximco officials said the group operates 31 factories under its textile division. Only 15 were running before the shutdown, and these will reopen once the new agreement is signed.
Beximco Limited is the only listed entity with paid-up capital of Tk898.28 crore. Salman F Rahman, former industry and investment adviser to the ousted prime minister Sheikh Hasina, holds a 7.89% stake in that company but has no ownership in the other factories except International Knitwear and Apparels Limited.
'Target is to resume production by Dec 2025'
A senior labour ministry official said Revival and Ecomillie will initially open back-to-back LCs worth $20 million, rising to $100 million if required. Senior executives from both companies will visit Dhaka in the third week of November for the signing ceremony.
The official said the target is to resume production by December 2025, allowing more than 25,000 workers to return. Revival expects to earn annual profits of Tk500 crore by 2027, which would support debt repayment and sector stability.
He added that Revival will take on none of Beximco's old liabilities. Janata Bank will move the loans into a block account to prevent further interest accumulation. The bank's board is expected to consider both the draft deal and the block-account proposal on Tuesday.
"The government assessed Beximco Textiles for revival because it has advanced machinery and strong global buyer links," he added. "The plan was endorsed at an inter-ministerial meeting on 22 July attended by officials from Bangladesh Bank, Janata Bank, Bida, Revival and Beximco."
A senior Beximco official told TBS that Revival will take a 1.5% commission on exports to Beximco's existing buyers. The rate will rise to 2.5% if Revival secures new international brands. Labour ministry calculations show textile and apparel exporters typically earn net profits of 4.5% to 5% after taxes, VAT and finance costs.
Revival also aims to modernise the sector by reconnecting Beximco with global buyers and attracting new partners. Its ambition is to shift Bangladesh from low-cost production to a hub of design, creativity and brand innovation. The company's philosophy – locally design, sell globally – reflects this goal.
