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Envoy Textiles has begun operations at its second fabric recycling plant to convert all waste into recycled yarn, in a bid to meet buyers' growing demand for environmentally friendly products.
With the new plant running, the company's recycling capacity now stands at 18 MT per day. The facility not only processes all in-house waste but also collects waste from nearby factories for recycling.
"No waste is piled up on the factory premises," said company secretary M Saiful Islam, noting that buyers are willing to pay a premium for products made with recycled yarn.
"Before placing orders, buyers ask whether recycled yarn is being used. Although its longevity is slightly lower than that of regular yarn, they still pay extra because of their commitment to environmental safety," Mr Islam added.
In September last year, the company's board approved the establishment of the second plant to recycle both local and in-house pre-industrial and post-consumer fabric waste.
The recycled fiber is certified by global bodies, including the Global Recycled Standard (GRS) and the Recycled Claim Standard (RCS).
The fiber is directly reintroduced into yarn production, creating a closed-loop system that keeps textile materials in use while reducing waste and conserving resources.
According to the company, recycled yarn currently accounts for about 6 per cent of all yarn used by Envoy Textiles. "Waste collection from nearby factories is also helping make their operations more environmentally friendly," said Mr Islam.
The company secretary added that Envoy can now charge buyers a few extra cents per yard of fabric for using recycled yarn. He also noted that recycling capacity could be expanded further if the supply of waste materials from other factories increased.
Asked about other environmental impacts, Mr Islam said the company had already ensured a water recycling system. "Otherwise, Envoy could not have achieved LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council," he said.
Meanwhile, Envoy Textiles' board on Saturday recommended a 30 per cent cash dividend for the year ended June this year, supported by strong profit growth.
The company reported a net profit of Tk 1.41 billion for FY25, up 134 per cent year-on-year, driven by higher turnover. Revenue rose from Tk 14 billion in FY24 to Tk 18 billion in FY25, aided by significant growth in both direct imports and deemed exports.
Listed in 2012, Envoy Textiles is now an 'A' category company on the stock exchanges. Its share price climbed from Tk 40 each on July 10 to Tk 61 each on September 18, before settling at Tk 56.80 each on Sunday on the Dhaka Stock Exchange.
"The commencement of operations at our recycling plant is not just ornamental. We are now in a position to demand higher prices from buyers," Mr Islam added.
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