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Jute Industry Business Plan

Project Description

Jute is a natural fibre popularly known as the golden fibre. It is one of the cheapest and the strongest of all natural fibers and considered as fibre of the future. Jute is second only to cotton in world’s production of textile fibers. India, Bangladesh, China and Thailand are the leading producers of Jute. It is also produced in southwest Asia and Brazil. The jute fibre is also known as Pat, kosta, Nalita, Bimli or Mesta (kenaf).

Globally jute is the second most important vegetable fibre after cotton in regard to terms of usage, production, and availability. Jute fibre is a totally natural biodegradable and compostable fibre obtained from the jute plant and it is therefore an extremely attractive renewable resource for those who give top priority to environmental and ecological concerns.

Bangladeshi jute known as ‘golden fibre’ because of the quality of jute it produced. For centuries, Bangladeshi Jute dominate the world market for its higher quality fibers. JUTE was the single most important export item of Bangladesh till the end of 1980s. Still jute is one of the largest export oriented industries in Bangladesh and its contribution to the national economy is significant. According to the Bangladesh Jute Mills Corporation, major destinations of Bangladesh’s jute goods export are Middle East, African Countries, European countries, South East Asia, Australia and USA.

Jute, as a natural fibre, has many inherent advantages like lustier, high tensile strength, low extensibility, moderate heat and fire resistance and long staple lengths. It is a biodegradable and eco-friendly. It has many advantages over synthetics and protects the environment and maintains the ecological balance.

Jute is not only a major textile fibre but also a raw material for nontraditional and value added non-textile products. Jute is used extensively in the manufacture of different types of traditional packaging fabrics, manufacturing Hessian, sacking, carpet backing, mats, bags, tarpaulins, ropes and twines.

Recently jute fibers are used in a wide range of diversified products: decorative fabrics, chic-saris, salwar kamizes, soft luggage’s, footwear, greeting cards, molded door panels and other innumerable useful consumer products. Supported by several technological developments today jute can be used to replace expensive fibers and scare forest materials.

Being a major player in the long history of jute trade and having finest natural fibre, Bangladesh has always had an advantage in raw jute trading. Bangladesh is still the largest producer and exporter of raw jute in the world. The countries with the highest volumes of jute production in 2018 were India (2.1M tonnes) and Bangladesh (1.6M tonnes), with a combined 93% share of global production.

From 2007 to 2018, the most notable rate of growth in terms of jute production, amongst the main producing countries, was attained by Bangladesh.

Bangladesh dominates jute exports structure, reaching 229K tonnes, which was near 79% of total exports in 2018. It was distantly followed by India (14K tonnes), creating a 4.8% share of total exports. The following exporters – Tanzania (12,710 tonnes), Belgium (10,536 tonnes), Kenya (8,787 tonnes) and Malaysia (4,638 tonnes) – together made up 13% of total exports.

Sarwar Jute Mills Limited (SJM) is one of the oldest jute mills in Bangladesh. In the jute industry, SJM is one of the most reputed jute mills in Bangladesh. The management of SJM has over forty (40) years’ experience in the jute sector of the country.  The company has built a strong reputation for Quality, Flexibility, Commitment, Innovation & Customer Satisfaction.

Due to huge market potentials of the jute sector, SJM has planned for BMRE/Expansion of the project. In the existing operations, 7.50 MT jute yarn is manufactured per day.  After BMRE/Expansion, SJM has planned to manufacture 15,000 pcs jute sacks/bags and 10.00 MT jute yarn per day.

Mentioned that Jute yarn is currently being manufactured for 100% export and jute sacks/bags will be manufactured after BMRE/Expansion for the domestic market.

The attainable projected sales revenue will be BDT 355.00 mln per year from existing operations and BDT 1,125.78 mln per year from Expansion/BMRE plan.

The total project land is 553.36 decimals where total shed and building size is 60,000 square feet. This project is located at Sonakanda, PS. Bandar, Narayanganj, Bangladesh.

  • Date: September 10, 2020
  • Client: Sarwar Jute Mills Limited
  • Category: Jute Industry