Ananta Group to invest $70m in synthetic knit fabric manufacturing unit

Despite various challenges faced by industries, such as dollar shortages for importing raw materials and capital machinery, and a lack of uninterrupted gas and electricity supply, Ananta Group is set to invest $70 million to establish a synthetic knit fabric manufacturing facility.

The new unit, named Ananta Knitwear Limited and located in Narsingdi, will serve as the first backward linkage industry for one of the country's leading apparel exporters, aiming to capture a significant share of the export market for activewear, sportswear, and intimate apparel based on manmade fibre.

Through this investment, the group has set a target to achieve about $700 million in export turnover over the next five years, according to the entrepreneurs.

They mentioned that despite the ongoing dollar shortage, the apparel manufacturer has undertaken this initiative with $40 million in low-cost long-term financing support from the Asian Development Bank (ADB) for importing capital machinery.

Sharif Zahir, managing director of Ananta Group, told The Business Standard, "The remaining amount will be managed through our own financing to procure land and complete construction work."

Sources at the company said the group has already purchased 100 bighas of land to establish the factory.

The foreign financing comprises $20 million from ADB and a syndicated B-loan of $20 million from the ILX Fund, an Amsterdam-based emerging market asset manager focused on the Sustainable Development Goals, with ADB as the lender of record. As the mandated lead arranger, ADB arranged and syndicated the financing package.

The managing director mentioned that construction work will start next month, and the factory will go into production by the end of 2025.

Sharif Zahir added that it will create about 2,000 new jobs in two phases, with a daily production capacity of 60 tonnes and an initial capacity of 30 tonnes.

He hoped that it would help attract some leading sportswear brands like Nike, Adidas, and Puma to import MMF-based sportswear from Bangladesh.

The new factory is expected to receive platinum certification under Leadership in Energy and Environmental Design, the global standard in green building rating systems. The factory will use advanced automated, energy-efficient machinery and equipment based on the latest technology.

Sharif Zahir said the new unit would be able to produce 2MW of solar energy from its rooftops.

"Bangladesh's textile industry is a major contributor to the economy, but the breadth of its impact is much broader. It is also about livelihoods and national resilience," said ADB Director General for Private Sector Operations Suzanne Gaboury in a statement on Monday.

"The textile industry employs millions, drives exports, and sustains families. ADB's support will help attract much-needed financing to this strategically crucial part of the national economy."

Asif Zahir, deputy managing director of Ananta Group, expects that Ananta Knitwear's annual turnover will be about $100 million, noting that it will serve as a deemed exporter for the group's intimates and activewear manufacturing unit as well as other factories in the country.

He further mentioned that this initiative would help increase the turnover of its intimate apparel manufacturing unit to $200 million from the current $50 million.

In addition to the new project and ongoing expansion plans for existing units, Asif Zahir hopes that the group's annual exports will reach about $700 million by 2029.

Ananta Group manufactures products including jeans, suits, sweaters, intimates, activewear, and outerwear, generating total revenue of about $400 million. With over 30 years in business, the group employs over 30,000 people across seven factories.