Mr. Faiek Fazal, Senior Manager, Corporate, IDLC Finance Ltd. on behalf of MBR team had an intellectual conversation with Mohammad Ayub Khan, Managing Director of Debonair Group regarding the sustainable path that the company has undertaken to provide an intricate picture about their journey.

MBR: What motivated you to take this “Fiber from Plastic waste” project? What are the hurdles that were faced by Debonair when deriving strategies regarding the recycling center and meshing it with the current business plan?

Mohammad Ayub Khan: Since the whole world is contaminated with various types of pollutions, in particular mindless use of plastic items, which is no exception to our environment in Bangladesh too, it is the shared responsibility of every citizen on earth to protect our environment from pollution. So, the prime and the foremost reason to take up this project is to become more responsible and responsive towards our environment and to save our country from plastic pollution. Further, as we are 100% export-oriented garment manufacturer our buyers are showing more interest in final product that are made of recycled fiber. Thus, by implementing recycled fiber project we will be able to satisfy our customers with their requirements, as well it will give us competitive advantage as we are the front-runner for such type of business in Bangladesh. Motivating factors like, making more employment, contributing more to national GDP and earning more foreign currency are worth to mention here.
Debonair always poses with diversified mindset which we proved earlier by taking over and turning many sick businesses into profitable ones. However, for recycled fiber project the main challenge we had to face was inadequate knowledge and information to do R&D around this new industry. Secondly, selection of vendor and locating available local expertise. Despite some bumpy ride at the initial stage of the project, we actually gained confidence later stage and cohesively planned out every related issue neatly with our current business plan. In doing so, we now know that we will be the off-taker of at least 80% of recycled fiber produced in our fiber plant, and this strength works for us as a diminishing factor for selling fiber to external market.

MBR: What is your take on the weak backward linkage available in the garments sector and how will the recycling center fill in for the important role and prove upon its estimated cost efficiency?

Mohammad Ayub Khan: As said, being 100% export oriented hi-tech jacket manufacturer, we are always narrowed by the local sources of raw materials need for making products. Even in most cases, we have to source it form China and other foreign countries that contribute to longer lead time usually blamed for slow production and higher cost of production. So, our strategy from the beginning is to make strong backward linkage facilities under one umbrella, and to materialize that we stablished many backward linkages facilitates within our capacity and control. In fact, vigorously we have gone one step further to take up recycled fiber making project which no one has ever stepped in earlier. This unique project will make us able to feed recycle fiber immediately after production into our padding production and fake down floors. Virtually, there will be zero lead time for padding and quilting production. This significant move will definitely bring cost and quality benefits to our business not only by the figure but also value-added services to our customers through offering one stop solution.

MBR: What type of support did you receive from relevant institutions: in terms of financing, regulations, compliance, towards such a forwardfacing project and what are your expectations for the future?

Mohammad Ayub Khan: Our recycled fiber project is well appreciated by all of our financial partners and everyone accolades and attuned on our proposal. However, we could secure low cost finances on a very flexible term from two financial institutions, to name so are; IDCOL for import of capital machineries and IDLC for civil construction works. To make fiber project fully compliant and state-of-the-art, we have taken all sort of approval form local and central government. What we except out of this project is to create cleaner and greener environment in which Debonair business could practice sustainable manufacturing. Our ultimate goal is to manufacture synthetic fabric by using recycled synthetic yarn form the recycled fiber project. 

MBR: It is observed that you are also undertaking LEED certification, with the recycling center, how does these developments add benefit to your company and can the incremental cost for the certification be covered by a higher product price?

Mohammad Ayub Khan: Yes, numerous international certifications on recycled fiber and green project approval by LEED certification is underway. Honestly, multi-fold benefits of such certifications will outweigh the cost of certification. There will be little or no tangible effect on our product pricing due to certification. Rather, it will boost our image and goodwill, which in turn will help us to attract more prestigious international buyers with better price offer.

MBR: Is the environmental concern a core ideology in your business? Does the core ideology of the business connect well with the workers and managers to form a coherent production process?

Mohammad Ayub Khan: Definitely, the core idea of recycled fiber business is to save our environment by reducing environment footprint as much as possible. All our employees at all levels are highly responsive to environment and are always committed to follow our motto on environmental protection. Throughout our production processes we consistently apply 3R philosophy, that is recycle, reuse and reduce.

MBR: As a large company in an enormous industry that intends on treading into a new industry for the environment, what advice can you provide to the upcoming entrepreneurs as well as veteran industrialists?

Mohammad Ayub Khan: For upcoming entrepreneurs our advice is to consider investing in industry or sector by which you can ensure better environmental protection and implement strategies to create a pollution free livable earth for future generation. Moreover, for veteran industrialists, it’s never too late, you can also contribute to reducing environmental degradation by replacing existing plant with an environmentally friendly and energy efficient one, and formulate strategy to reduce wastage throughout the whole production process.