Pacific Jeans expanding to become a $1b exporter in 5 years

Pacific Jeans Group, a leading Bangladeshi apparel exporter, is currently investing $31.75 million to increase production and achieve its goal of reaching the $1 billion export mark within the next five years.

As of 2022, the company exported garments worth $500 million and has set a target of earning $600 million by the end of this year.

As part of the expansion plan, a new production facility of about 7.5 lakh square feet is being set up in the Chittagong Export Processing Zone (CEPZ), which is expected to go into production by September-October this year, said Pacific Jeans Group Managing Director Syed Mohammad Tanvir in a recent interview with The Business Standard.

The new factory, named Pacific Attires Ltd, will produce high-value formal wear such as suits, blazers, jackets, coats, dress pants, and casualwear, Tanvir said in the interview that took place on the sidelines of the National Export Trophy award ceremony at the InterContinental Hotel in the capital on 16 April.

infographic: TBS

"Our new facility will introduce new product lines which will help to boost exports further, but we will start with a small capacity initially. We have already recruited top officials for our new unit and workers' recruitment will start after Eid-ul-Azha," Tanvir said.

The required machinery will be installed within this period, he said, adding that production in the new facility will begin by September-October this year.

"This new unit will create job opportunities for 9,000 people in the next three years. Once fully operational, this facility will boost our exports by $250 million," Tanvir said. 

Currently, Pacific Jeans Group produces four million pieces of jeans a month, and it expects to increase the volume to six million pieces by the end of 2023. It also has the capacity to produce two million knit apparel a month.

Earlier Pacific Jeans also invested in knitwear manufacturing besides denim products.

Focus on sustainability

Pacific Jeans Group has always focused on sustainability during any new investment plan, besides its plans to reduce carbon dioxide (CO2) emissions by 65% by 2030, said the group's MD Syed Mohammad Tanvir.

To reach that goal, the group has taken many initiatives aligned with its sustainability goals.

Pacific Group's sustainability initiatives revolve around reducing CO2 emissions in the supply chain, enabling energy conservation, renewable energy usage, recycled water usage and sustainable sourcing among others, he said.

"As per our roadmap, we are working on different initiatives, including energy efficiency technology adaptation and waste reduction," Tanvir said.  

"Currently, we are getting about 8.5 MW per day from solar generation, which is 12% of our daily energy consumption. We have plans to get about 50% of our energy from renewable sources," he said.

"Hopefully, we will be able to produce 30 MW per day from solar generation by 2030," Tanvir added.

National Export Trophy

Some 71 companies were awarded national export trophies for their outstanding contribution to the country's export sector in the fiscal year 2019-20.

Among the exporters, Universal Jeans Ltd, a concern of Pacific Jeans Group, was crowned with the "Bangabandhu Sheikh Mujib Export Trophy" as the best-exporting company in that fiscal.

Syed Mohammad Tanvir said, "Being awarded the Bangabandhu Sheikh Mujib Export Trophy is a significant recognition for us. Today, we are missing our father, the late M Nasir Uddin, the founder of Pacific Jeans."

"He [Nasir Uddin] would have been very happy to see this recognition. We are missing our beloved father and supervisor," he said, adding that this recognition will definitely inspire the firm to grow further with diversified products and in diversified markets.  

A small initiative grew big

In 1984, a small Bangladeshi garment factory named NZN Fashionwear, employing only 500 people, had the audacity to export $12,000 worth of jeans shipment to Italy. There was no washing plant in the country at the time and the washing for that particular shipment was done in Italy. A year later, they set up a washing plant with technical support from an Italian buyer.  

When Md Nasir Uddin started a small factory, he might not have had any thoughts about the legacy he was about to set in motion. Nasir Uddin breathed his last in February 2022.  

But in a 37-year journey, Nasir's name became synonymous with denim, as he etched his name in the history books as a pioneer of denim production, becoming the largest denim garment producer in the entire subcontinent.  

His company, Pacific Jeans Group, became an institution for premium jeans.

Currently, Pacific Jeans Group employs over 35,000 people at 13 factories and plants, making about 40 million pieces of jeans a year and exporting to more than 50 countries.

This group is faring well despite the volatility in the global apparel markets amid the Russia-Ukraine war.

"Fortunately, we are still running all our units at full capacity. Hopefully, at the end of this year, we will be able to grow by 10% to 12%, while our turnover will be about $600 million," said Syed Mohammed Tanvir, hoping that the global market may become normal by June.

Setting a target to reach the billion-dollar export mark by 2028, the Pacific Jeans Group wants to contribute to reaching the country's $100 billion apparel export target by 2030, Tanvir added.