Project Profile
Overview:
Bengal IRIS TAKUMI LTD.
Establishment Date: 21st March 2024
Registration No: C-194385
Address: Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Business Activities: Garments-related products (Buttons).
Representative: Mr. Masataka Irie (Managing Director)
Website: https://www.iris.co.jp/english
Mobile Number: +81 90 1596 8736
Contents
1. Project Summary 2
2. Scope of work 2
3. Company Overview 2
4. Management Philosophy 3
5. History of the company 3
6. Share Capital with Shareholding Structure 4
7. Board of Directors 4
8. Project Manpower 5
9. Business & Products 5
10. List of Machineries 6
11. Production Process 7
12. The commercial viability of the project and how the loan will be utilized: 8
13. The capacity of the project to service the proposed debt with projected income flows 17
14. Cost Competitiveness of the Project’s Outputs in Domestic and External Markets 24
15. Existing domestic output capacity in the sector to which the borrowing proposal relates, and the potential domestic and external demand given the estimated output cost structure. 30
16. Existing Indebtedness Structure of the Project Sponsors 41
17. Risk & Mitigation Strategy 42
18. Environmental and Sustainability Impact 44
19. Stakeholder Engagement – Human Rights Policy 45
20. Conclusion 45
21. Global Networks 46
1. Project Summary
Corporate name:
Bengal IRIS TAKUMI LTD.
Establishment No:
C-194385/2024
Incorporation Date:
21/03/2024
Address:
Lot No. D1, Bangladesh Special Economic Zone, Sonpara, Panchrukhi Via Rupganj, Araihazar, Narayanganj-1460 Bangladesh.
Establishment background:
Demand for clothing accessories is growing in Bangladesh, where the garment industry is thriving, and the company expects growth in the country.
Customers:
UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, lululemon etc.
Prospects:
We aim to be the best factory in Bangladesh for making quality buttons.
Bangladesh project overview: Production facility of polyester buttons will start in January 2026, with horizontal expansion to other garment accessories.
2. Scope of work
To carry on the business domestically and internationally as dealers and agents as well as the business of producing, processing, manufacturing, formulating, using, acquiring, storing, refining, packing, transporting, distributing, selling, importing, exporting, and dealing in and to enter into manufacturing of all accessories related to fashion buttons, buckles, tape, code, blade, zippers, fastening parts, strings, and others. To act as agents, sub-agents wholesalers, retailers, representatives, commission agents, importing and exporting of material, machinery, equipment, tools, products, and services related to garments of all in Bangladesh and abroad.
3. Company Overview
Bangladesh's garment industry has expanded to the second largest in the world and is a market that will increasingly attract worldwide attention. Our business in the country is to deliver garment accessories made in Bangladesh to garment factories. The ability to procure sewing materials in their own country, which were previously imported from China and other countries, is a major advantage for sewing factories. The biggest advantage is the reduced lead time from order placement to delivery. We are prepared to expand the range of products we handle and to invest in equipment to meet customer requirements.
4. Management Philosophy
The management objective of Iris Inc. is 'survival and development'. We contribute to society through the provision of products and services that satisfy our customers, and at the same time improve the abilities, human nature and lives of the people involved.
5. History of the company
1948:
Began producing and selling buttons made from urea resin.
1950s:
Started producing injection-molded plastic buttons.
1960s:
Expanded into producing transparent buttons (styrene resin), luster buttons (milk casein resin), and ABS buttons, targeting apparel manufacturers and achieving significant success.
1980:
Established the Future Sales Department.
1983:
Completed an in-house plating line, encompassing pre-treatment to painting.
1987:
Ventured into Hong Kong with the company's first overseas operations.
1988:
Opened the Button Museum in Tokyo.
1990:
Added a silicon production plant to the Katahina factory. Renamed the Future Sales Department to the NB Sales Department and began producing character goods such as TARAEPANDA.
1991:
Established Iris France (Paris, now dissolved). Established Iris Dalian.
1992:
Established Iris Taiwan and Iris Philippines.
1994:
Opened the Shanghai office and established the Overseas Sales Department. Made a commitment to tackling global environmental issues by investing in ECO LOG Recycling Japan Co., Taisei Plus Co., and UEST TECHNOLOGY FAR EAST. Established Marine Development Ltd (now dissolved).
2002:
Opened the Shenzhen Office.
2004:
Expanded silicon production lines at the Suzhou factory. Started contract manufacturing.
2005:
Opened the Seoul Office.
2007:
Opened the New York Office.
2014:
Acquired the license as the sole Japanese distributor of FIDLOCK (Germany) and began sales in November.
2017:
Launched "IRIS Life," a brand focusing on health and beauty products. Reopened the Button Museum in Nihonbashi Hamacho, Tokyo, on 22 November, after a temporary opening in Osaka.
2018:
Hosted the "Loving Button Exhibition - Iris' Button Making" at the Ota City Museum of Art.
2020:
Expanded the silicon manufacturing line at the Philippine factory. Established three new factories in the Philippines. Added a silicon production line at the new Philippine factory and began production of magnetic necklaces and other products.
2022:
Obtained GRS certification for the Iris and Katashina factories in Hong Kong. Initiated retail sales through the company's own mail-order website.
6. Share Capital with Shareholding Structure
Paid-up capital: BDT 331,000,000 [USD 2,767,083.33]
Authorized capital: BDT 600,000,000 [USD 5,000,000]
Per Share Price: BDT 1000.00
[Note: Assumed $1= Tk120]
Shareholders:
Name of Shareholders
Number of Shares
Percentage
IRIS COMPANY., LTD.
Address: 2-10-10 Nishi-Ikebukuro, Toshima,
Tokyo, 171-0021, Japan.
331000
(Two Lac Ten Thousand shares)
99.68%
HONG KONG IRIS CO., LIMITED
Address: Flat A, 16th Floor, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, HONG KONG
1050
(One Thousand Fifty shares)
0.32%
7. Board of Directors
Mr. Yo Osumi (Chairman)
Nominee Director of IRIS Company Ltd.
Mr. Yukihei Osumi (Director)
Nominee Director of HONG KONG IRIS Co., Limited
Mr. Masataka Irie (Managing Director)
Nominee Director of IRIS Company Ltd.
8. Project Manpower
1st year
2nd year
3rd year
4th year
5th year
Foreign
2
2
2
2
2
Local
50
98
98
98
98
Total
52
100
100
100
100
6th year
7th year
8th year
9th year
10th year
Foreign
3
3
3
3
3
Local
157
157
157
157
157
Total
160
160
160
160
160
9. Business & Products
Name of products: Garment Accessories, Character goods, Health and Beauty products,
Product features: Garment Accessories,
All types of Buttons (Polyester, Urea, Metal, Horn, Shell, Wood, Corozo, etc.)
Products made with molds (Polyamide, ABS, Polyacetal, Polycarbonate, etc.)
Strengths: We deal with buttons made of all materials.
We have a patented technology for moulding two different materials into one product. High-quality products employing Japanese technology.
9.1. Product offered by the company
Name of products: Button (made of Polyester) HS Code: 9606.21.00
Product features: Sewing buttons made of polyester resin
Strengths: High-quality products employing Japanese technology.
10. List of Machineries
Sl. No.
Description
Quantity
1
Mixing Machine Capacity 250 kilos
1
2
Mixing Machine Capacity 100 kilos
2
3
Bench Model Mixers for Mixing Colouring Pigments
2
4
Flat Type (Turning Machine)
2
5
Ondulated Type (Turning Machine)
2
6
Punching Machine with SETACCIO
1
7
Device to Align the Punching Cutter
1
8
Semiautomatic Machine to Sharpen Punching Cutters
1
9
Rod Casting Machine
1
10
Slicing Machine for Soft Polyester Rods
1
11
Container for Aluminium Tube Preparation by Paraffin
1
12
Machine to Wash Aluminium Tubes by Using Acetone
1
13
Unit for Regenerating Exhausted Solvents (Acetone) by Distilling Process
1
14
Fully Automatic Hi-Per Turning and Drilling Machine for Button
7
15
High Precision Sharpening Table for Profiled Tools & Drill Needles
1
16
Automatic Machine to Manufacture Constant Profile Carbide Tools
1
17
New System for Unloading Button after Polishing
1
18
Machine for Drying Buttons by Centrifugal Method
1
19
Vibrating Machine to Separate Buttons According to Sizes
1
20
Belt Inspection Machine for Button Quality Inspection
4
21
Tickness Sorting Machine
1
22
Water Polishing Machine For Polishing Polyester
5
23
The Latest Generation of Laser Engraving Unit for Buttons
4
24
Polishing Drum with Wooden Barrel
2
25
Polishing Drum with Wooden Barrel
1
11. Production Process
Polishing
Turning
Casting
Inspection
Polyester raw materials are fed into a drum pouring machine.
The material in tablet form is heat-cured. =Blanks
The blanks are shaved with a blade to suit the shape of the button.
The button is polished using water and an abrasive.
Each button is inspected one by one.
12. The commercial viability of the project and how the loan will be utilized:
12.1. Use of loan & financial justification
Total Foreign Loan Amount: USD 3,000,000
MEANS OF FINANCE (Capital + Loan)
This shows how the entire project is financed.
Source of Fund
Amount (USD)
% of Total
Paid-Up Capital (Sponsors)
2,767,083.33
48.00%
Foreign Term Loan (Parent Co.)
3,000,000.00
52.00%
Total Means of Finance
5,767,083.33
100%
The debt–equity mix (52:48) is financially sound
Strong sponsor commitment with almost half project funding from equity
This structure reduces default risk
The foreign loan is not over-leveraged
12.2 Purpose of Loan
The loan will be used for the following project expansion activities:
Purpose of Utilization
Allocation
Amount (USD)
Import of Automated Machinery & Equipment (Japan & China)
60%
1,800,000
Machinery Installation & Factory Setup Cost
10%
300,000
Utility Setup (Electric substation, air compressor, dust control, ventilation, water & effluent setup)
17%
510,000
Contingency & Price Escalation Buffer
3%
90,000
Initial Production Stabilization & Trial Run Cost
10%
300,000
Total Loan Utilization
100%
USD 3,000,000
Reasons for entering into an agreement on foreign currency borrowing:
Limitations of Local Financing: Term loans from local financial institutions for capital expenditure (CAPEX) would require extensive collateral arrangements, making the process cumbersome and time-consuming.
Advantages of Group Financing: By opting for foreign currency borrowing from the IRIS Group, the company can secure funds at a more favorable cost and flexible terms, thereby facilitating timely investment in capacity expansion and operational improvements.
12.3 Impact of Investment
No portion of the loan will be used for working capital or raw material imports.
Entire loan is dedicated to factory automation, productivity enhancement, and export capacity.
The machinery includes:
Laser engraving units
Automated rod casting machines
Precision cutters
Sorting & polishing systems
Solvent recovery units
Automated pigment mixing machines
This ensures:
Lower rejection
Higher production speed
Export-grade quality compliance
Reduced dependency on manual labor
Lower per-unit production cost
12.4. REVENUE MODEL & PROJECTIONS (2026–2035) – USD
The company will generate revenue through the export of high-quality automated buttons to fixed Japanese and global buyers such as UNIQLO, GU, GAP, M&S, NEXT, COACH, EVERLANE, and lululemon. The sales price is maintained at a stable international benchmark of USD 0.0139 per piece.
Year
Production (Units)
Per Unit Selling Price
Export Sales (USD)
2026
60,000,000
0.0139
833,333
2027
60,000,000
0.0139
833,333
2028
180,000,000
0.0139
2,500,000
2029
180,000,000
0.0139
2,500,000
2030
180,000,000
0.0139
2,500,000
2031
200,000,000
0.0139
2,777,778
2032
200,000,000
0.0139
2,777,778
2033
200,000,000
0.0139
2,777,778
2034
200,000,000
0.0139
2,777,778
2035
200,000,000
0.0139
2,777,778
Revenue grows sharply from USD 0.83 million to USD 2.78 million annually due to capacity expansion funded by the foreign loan. The stability of selling price and guaranteed Japanese buyers ensures predictable export earnings and minimal market risk.
NOTE 1 – REVENUE MODEL & PROJECTIONS (2026–2035) – USD
Revenue Calculation Method (Numeric Explanation):
Revenue has been projected based on unit-based production capacity multiplied by a fixed international export selling price, using the following formula:
Export Revenuet=Production Unitst ×Selling Price Per Unit
Where:
Selling price per unit = USD 0.0139, fixed across all years(based on long-term buyer contracts and prevailing international benchmark prices)
Production volume increases in phases reflecting capacity utilization of installed machinery
Year-wise Production Assumptions:
Period
Capacity Assumption
Reason
2026–2027
60 million units/year
Trial run & initial stabilization
2028–2030
180 million units/year
Full utilization of initial setup
2031–2035
200 million units/year
Optimization & debottlenecking
Example Calculation:
For 2026:
For 2028:
For 2031 onward:
Trend Explanation
Revenue grows due to volume expansion, not price inflation
Selling price remains constant and conservative
Revenue stability is supported by confirmed Japanese and global buyers
Foreign loan-financed machinery directly enables capacity expansion
12.5. PROJECTED PROFIT & LOSS STATEMENT (USD)
Year
Sales (USD)
Production Cost
Admin Expense
Total
Tax
Tax Exemption
Applicable
Tax
Net Profit
2026
833,333
250,000
493,333
24,750
100%
-
90,000
2027
833,333
250,000
493,333
24,750
100%
-
90,000
2028
2,500,000
750,000
1,250,000
137,500
100%
-
500,000
2029
2,500,000
750,000
1,250,000
137,500
80%
27,500
472,500
2030
2,500,000
750,000
1,250,000
137,500
70%
41,250
458,750
2031
2,777,778
833,333
1,394,444
151,250
60%
60,500
489,500
2032
2,777,778
833,333
1,394,444
151,250
50%
75,625
474,375
2033
2,777,778
833,333
1,394,444
151,250
40%
90,750
459,250
2034
2,777,778
833,333
1,394,444
151,250
30%
105,875
444,125
2035
2,777,778
833,333
1,394,444
151,250
20%
121,000
429,000
The business becomes strongly profitable from 2028 onward, when machinery utilization rises to full capacity. Average annual net profit remains above USD 450,000, confirming strong retained earnings potential and reinvestment capacity.
NOTE – PROJECTED PROFIT & LOSS STATEMENT (USD)
Cost & Profit Calculation Method (Numeric Explanation)
The Profit & Loss statement is projected using unit-cost based production economics, aligned with the revenue model.
1. Production Cost Calculation
Production t = Units Produced t × Unit Production Cost
Unit production cost = USD 0.00417
Cost includes raw materials, utilities, labor, and machine operation
Example (2028):
2. Gross Profit Calculation
Gross Profit=Sales Revenue-Production Cost
Example (2028):
3. Administrative Expense Assumption
Administrative expenses are assumed as a fixed operational cost, increasing gradually with scale:
Phase
Admin Expense
Initial years
USD 493,333
Full operation
USD 1,250,000
Optimized scale
USD 1,394,444
This reflects:
Higher manpower
Quality control
Compliance & export administration
4. Profit Before Tax
Profit Before Tax= Gross Profit− Administrative Expense
5. Tax Treatment Method
Corporate tax rate: 27.5%
Tax holiday applied as per policy:
Year
Tax Exemption
2026–2028
100%
2029
80%
2030
70%
…
Gradually reducing
6. Net Profit Calculation
Net Profit=Profit Before Tax-Applicable Tax
Trend Explanation
Strong profitability from 2028 onward
Net profit stabilizes above USD 450,000 annually
Margin buffer remains adequate even under stress scenarios
Supports retained earnings growth and loan servicing
PROJECTED BALANCE SHEET
ASSETS
Year
Building
Machinery
Equipment
Other Fixed Assets
Total Net Fixed Assets
Working Capital & Cash
Total Assets
2026
2,200,000
2,200,000
200,000
100,000
4,700,000
1,157,083
5,857,083
2027
2,150,000
2,000,000
120,000
80,000
4,350,000
1,597,083
5,947,083
2028
2,100,000
1,750,000
100,000
50,000
4,000,000
2,110,208
6,110,208
2029
2,050,000
1,500,000
70,000
30,000
3,650,000
2,585,584
6,235,584
2030
2,000,000
1,250,000
40,000
10,000
3,300,000
3,036,656
6,336,656
2031
1,950,000
950,000
30,000
20,000
2,950,000
3,507,598
6,457,598
2032
1,900,000
650,000
30,000
20,000
2,600,000
3,952,203
6,552,203
2033
1,850,000
350,000
30,000
20,000
2,250,000
4,370,134
6,620,134
2034
1,800,000
50,000
30,000
20,000
1,900,000
4,761,039
6,661,039
2035
1,750,000
0
20,000
30,000
1,550,000
5,124,583
6,674,583
EXPLANATORY NOTES TO PROJECTED BALANCE SHEET (NUMERIC BASIS)
Note 1: Fixed Asset Composition & Depreciation Method (Numeric Basis)
Total fixed assets in 2026 amount to USD 4,700,000, determined from the approved Project Cost & Purpose of Loan allocation.
Initial Asset Composition (2026)
Asset Category
% of Total Fixed Assets
Amount (USD)
Building
46.8%
2,200,000
Machinery
46.8%
2,200,000
Equipment
4.3%
200,000
Other Fixed Assets
2.1%
100,000
Total Fixed Assets
100%
4,700,000
Depreciation Method
Straight-Line Method (SLM) is applied.
No residual/scrap value is assumed for conservatism.
Annual Depreciation Rates Assumed
Asset Category
Useful Life
Annual Depreciation
Building
25 years
4.0%
Machinery
8 years
12.5%
Equipment
6 years
16.7%
Other Fixed Assets
5 years
20.0%
Illustrative Calculation (Machinery – 2026)
Annual depreciation = USD 2,200,000 × 12.5%= USD 275,000 per year
The declining Net Fixed Asset values from 2027–2035 reflect cumulative depreciation only; no asset revaluation or new capital expenditure is assumed.
Note 2: Working Capital & Cash Projection Method (Numeric Basis)
Working Capital & Cash balances are derived using a profit-retention and scale-based approach, not short-term borrowing.
Calculation Logic:
Working Capital & Cash = Cumulative Retained Earnings + Operating Cash Buffer
Key Numeric Assumptions
Component
Assumption
Profit Retention
100% (no dividend payout)
Tax Rate
0% during tax holiday period
Cash Retention
70–80% of annual net profit
Liquidity Buffer
Minimum USD 500,000 maintained
Illustrative Example (2026)
Net Profit (2026): USD 90,000
Retained for cash & liquidity (approx. 80%): USD 72,000
Opening liquidity buffer: USD 1,085,083
Working Capital & Cash (2026)= 1,085,083 + 72,000≈ USD 1,157,083
From 2027 onward, the increase in Working Capital follows:
Rising sales volume
Higher retained profits
Export-driven cash inflows with low receivable risk
LIABILITIES & EQUITY
Year
Paid-Up Capital
Retained Earnings
Total Equity
Foreign Loan Outstanding
Total Liabilities & Equity
2026
2,767,083
90,000
2,857,083
3,000,000
5,857,083
2027
2,767,083
180,000
2,947,083
3,000,000
5,947,083
2028
2,767,083
680,000
3,447,083
2,663,125
6,110,208
2029
2,767,083
1,152,500
3,919,583
2,316,001
6,235,584
2030
2,767,083
1,611,250
4,378,333
1,958,323
6,336,656
2031
2,767,083
2,100,750
4,867,833
1,589,765
6,457,598
2032
2,767,083
2,575,125
5,342,208
1,209,995
6,552,203
2033
2,767,083
3,034,375
5,801,458
818,676
6,620,134
2034
2,767,083
3,478,500
6,245,583
415,456
6,661,039
2035
2,767,083
3,907,500
6,674,583
0
6,674,583
Note: 1 Retained Earnings Projection Method (Simple Explanation)
Retained earnings represent the portion of the company’s profit that is kept in the business and not distributed as dividends.
For this project, it is assumed that no dividend will be paid during the projection period. Therefore, 100% of annual net profit is retained and added to equity to strengthen the company’s financial position and support loan repayment.
How the retained earnings are calculated:
Each year’s retained earnings are calculated by adding the current year’s net profit to the previous year’s retained earnings.
Simple calculation method:
Retained Earnings at end of Year = Retained Earnings at beginning of Year + Net Profit of that Year
Example
In 2026, net profit is USD 90,000→ Retained earnings at end of 2026 = USD 90,000
In 2027, net profit is again USD 90,000→ Retained earnings at end of 2027 =USD 90,000 (previous balance) + USD 90,000 = USD 180,000
In 2028, net profit increases to USD 500,000→ Retained earnings at end of 2028 =USD 180,000 + USD 500,000 = USD 680,000
This same method is applied consistently for all subsequent years up to 2035.
Note: 2 Foreign Loan Outstanding – Numeric Method
Total foreign loan amount: USD 3,000,000, fully disbursed in 2026.
Repayment Structure
Grace period: 2026–2027
Equal principal repayment from 2028–2035
Repayment tenor: 8 years
Annual Principal Repayment Calculation
Annual principal repayment= USD 3,000,000 ÷ 8≈ USD 375,000 per year
The projected balance sheet demonstrates strong capital growth, systematic debt reduction, increasing liquidity and stable asset backing. By the end of the projection period, the company becomes completely debt-free while maintaining a solid equity base of USD 6.67 million, confirming long-term financial solvency and creditor security.
12.7 Production Capacity & Labor Forecast (2026–2035)
Phase
Year
Button Quantity (Annual)
Total Manpower (Workers)
Productivity (Buttons/Worker)
Initial Phase
2026
60,000,000
52
~1,153,846
2027
60,000,000
100
600,000
Expansion Phase
2028
180,000,000
100
1,800,000
2029
180,000,000
100
1,800,000
2030
180,000,000
100
1,800,000
Peak Phase
2031
200,000,000
160
1,250,000
2032
200,000,000
160
1,250,000
2033
200,000,000
160
1,250,000
2034
200,000,000
160
1,250,000
2035
200,000,000
160
1,250,000
13. The capacity of the project to service the proposed debt with projected income flows
13.1. LOAN REPAYMENT ABILITY ANALYSIS (DSCR)
Year
Net Profit
Installment
DSCR
2026
90,000
90,000
1.00
2027
90,000
90,000
1.00
2028
500,000
422,268
1.18
2029
472,500
422,268
1.12
2030
458,750
422,268
1.09
2031
489,500
422,268
1.16
2032
474,375
422,268
1.12
2033
459,250
422,268
1.09
2034
444,125
422,268
1.05
2035
429,000
422,240
1.02
DSCR remains above 1.00 throughout, confirming that 100% of loan repayment is covered by operating profit alone without reliance on capital injection.
13.2. FINANCIAL RATIO ANALYSIS (2026–2035)
13.2.1. Gross Profit Margin (%)
Year
Gross Profit (USD)
Sales (USD)
Gross Margin
2026
583,333
833,333
70.00%
2027
583,333
833,333
70.00%
2028
1,750,000
2,500,000
70.00%
2029
1,750,000
2,500,000
70.00%
2030
1,750,000
2,500,000
70.00%
2031
1,944,444
2,777,778
70.00%
2032
1,944,444
2,777,778
70.00%
2033
1,944,444
2,777,778
70.00%
2034
1,944,444
2,777,778
70.00%
2035
1,944,444
2,777,778
70.00%
This confirms very high cost efficiency due to automation and Japanese technology.
13.2.2. Net Profit Margin (%)
Year
Net Profit
Sales
Net Margin
2026
90,000
833,333
10.80%
2027
90,000
833,333
10.80%
2028
500,000
2,500,000
20.00%
2029
472,500
2,500,000
18.90%
2030
458,750
2,500,000
18.35%
2031
489,500
2,777,778
17.62%
2032
474,375
2,777,778
17.09%
2033
459,250
2,777,778
16.53%
2034
444,125
2,777,778
15.99%
2035
429,000
2,777,778
15.45%
Margins remain well above the industry average (8–12%), proving strong export competitiveness.
13.2.3. Return on Equity (ROE %)
Year
Equity (USD)
Net Profit
ROE
2026
2,857,083
90,000
3.15%
2027
2,947,083
90,000
3.05%
2028
3,447,083
500,000
14.51%
2029
3,919,583
472,500
12.05%
2030
4,378,333
458,750
10.48%
2031
4,867,833
489,500
10.05%
2032
5,342,208
474,375
8.88%
2033
5,801,458
459,250
7.91%
2034
6,245,583
444,125
7.11%
2035
6,674,583
429,000
6.43%
ROE remains healthy and stable for a capital-intensive export manufacturing project.
13.2.4. Debt–Equity Ratio
Year
Loan Outstanding
Equity
Debt–Equity
2026
3,000,000
2,857,083
1.05
2027
3,000,000
2,947,083
1.02
2028
2,663,125
3,447,083
0.77
2029
2,316,001
3,919,583
0.59
2030
1,958,323
4,378,333
0.45
2031
1,589,765
4,867,833
0.33
2032
1,209,995
5,342,208
0.23
2033
818,676
5,801,458
0.14
2034
415,456
6,245,583
0.07
2035
0
6,674,583
0.00
The company becomes fully debt-free by 2035.
13.2.5. Debt Service Coverage Ratio (DSCR)
Year
Net Profit
Installment
DSCR
2026
90,000
90,000
1.00
2027
90,000
90,000
1.00
2028
500,000
422,268
1.18
2029
472,500
422,268
1.12
2030
458,750
422,268
1.09
2031
489,500
422,268
1.16
2032
474,375
422,268
1.12
2033
459,250
422,268
1.09
2034
444,125
422,268
1.05
2035
429,000
422,240
1.02
Always above 1.00 → Fully Serviceable, Loan is entirely serviceable from operating profits alone with zero default risk.
13.2.6. Asset Turnover Ratio
Year
Sales
Asset Turnover
2026
833,333
0.14×
2027
833,333
0.14×
2028
2,500,000
0.43×
2029
2,500,000
0.43×
2030
2,500,000
0.43×
2031
2,777,778
0.48×
2032
2,777,778
0.48×
2033
2,777,778
0.48×
2034
2,777,778
0.48×
2035
2,777,778
0.48×
Strong improvement after stabilization; confirms efficient utilization of capital assets.
23.2.7. Interest Coverage Safety (Profit Vs Installment)
Year
Profit Before Loan
Installment
Safety Level
2026
90,000
90,000
Adequate
2027
90,000
90,000
Adequate
2028–2035
429k–500k
422k
Very Safe
Confirms zero refinancing risk.
13.2.8. Operating Expense Ratio (%) – Year-Wise
Year
Admin Expense (USD)
Sales (USD)
Operating Expense Ratio
2026
493,333
833,333
59.20%
2027
493,333
833,333
59.20%
2028
1,250,000
2,500,000
50.00%
2029
1,250,000
2,500,000
50.00%
2030
1,250,000
2,500,000
50.00%
2031
1,394,444
2,777,778
50.20%
2032
1,394,444
2,777,778
50.20%
2033
1,394,444
2,777,778
50.20%
2034
1,394,444
2,777,778
50.20%
2035
1,394,444
2,777,778
50.20%
Sales per employee far exceed typical local accessories factories (usually USD 6,000–10,000 per worker), proving high labor productivity driven by Japanese automation.
13.2.9. Debt Service To Sales Ratio (%)
Year
Installment (USD)
Sales (USD)
Debt Service to Sales
2026
90,000
833,333
10.80%
2027
90,000
833,333
10.80%
2028
422,268
2,500,000
16.89%
2029
422,268
2,500,000
16.89%
2030
422,268
2,500,000
16.89%
2031
422,268
2,777,778
15.20%
2032
422,268
2,777,778
15.20%
2033
422,268
2,777,778
15.20%
2034
422,268
2,777,778
15.20%
2035
422,240
2,777,778
15.20%
Debt service remains well below the critical 25% risk threshold, indicating very safe revenue-to-debt alignment.
13.2.10. Loan Repayment Burden Ratio
Year
Installment
Net Profit
Burden Ratio
2026
90,000
90,000
1.00
2027
90,000
90,000
1.00
2028
422,268
500,000
0.84
2029
422,268
472,500
0.89
2030
422,268
458,750
0.92
2031
422,268
489,500
0.86
2032
422,268
474,375
0.89
2033
422,268
459,250
0.92
2034
422,268
444,125
0.95
2035
422,240
429,000
0.98
Although early years show higher repayment pressure, the project never breaches DSCR below 1.0, and repayment remains fully covered operationally.
13.2.11. Cumulative Loan Coverage Ratio
Measures total profit vs total repayment.
Total Profit (2026–2035): ≈ USD 3.91 millionTotal Loan Repaid: ≈ USD 3.00 million
Coverage Ratio:3.91 ÷ 3.00 = 1.30x
Over the loan life, the project generates 130% of total loan value in pure profit, ensuring full capital protection for lenders.
13.3. CASH FLOW ANALYSIS (SIMPLIFIED – USD)
Year
Operating Cash Inflow
Loan Payment
Net Cash Surplus
2026
90,000
90,000
0
2027
90,000
90,000
0
2028
500,000
422,268
77,732
2029
472,500
422,268
50,232
2030
458,750
422,268
36,482
2031
489,500
422,268
67,232
2032
474,375
422,268
52,107
2033
459,250
422,268
36,982
2034
444,125
422,268
21,857
2035
429,000
422,240
6,760
Operational cash flows remain positive every year, ensuring:
No refinancing risk
No liquidity stress
No dependency on sponsor funding
13.4. BREAK-EVEN POINT (BEP) ANALYSIS
Break-even Formula:
Break-even Sales = Fixed Cost ÷ Contribution Margin
From your projections:
Average Annual Fixed Cost (Admin + Overhead) ≈ USD 1,250,000
Contribution Margin = 70%
Average Full-Capacity Sales = USD 2,777,778
Break-Even Calculation:
Break-Even as % of Capacity:
Break-Even in Units:
The project reaches break-even at only 64% of full production capacity, which is a strong safety margin and confirms low operational risk.
13.5. LOAN AMORTIZATION TABLE
Year
Principal
Interest
Total Payment
Outstanding Balance
2026
0
90,000
90,000
3,000,000
2027
0
90,000
90,000
3,000,000
2028
336,875
85,393
422,268
2,663,125
2029
347,124
75,144
422,268
2,316,001
2030
357,678
64,590
422,268
1,958,323
2031
368,558
53,710
422,268
1,589,765
2032
379,770
42,498
422,268
1,210,000
2033
391,319
30,949
422,268
818,681
2034
403,220
19,048
422,268
415,461
2035
415,456
6,784
422,240
0
14. Cost Competitiveness of the Project’s Outputs in Domestic and External Markets
At full production capacity, the project’s estimated unit production cost is USD 0.00417, whereas the intended average export selling price is USD 0.0139 per piece, resulting in a gross margin of approximately 70%. This strong unit-level profitability clearly demonstrates the project’s high cost efficiency driven by automation, modern Japanese machinery, and disciplined production management.
This unit economics places IRIS at a significant price advantage in the international market. Typical FOB prices for comparable buttons from China, Vietnam, and other regional suppliers generally start from around USD 0.02 per unit and rise substantially for premium-quality items. Compared to these benchmarks, IRIS can offer competitive pricing while still preserving a wide margin buffer, making its products highly attractive to global apparel brands.
In the domestic market, Bangladesh remains largely dependent on imported buttons for higher-end garments, as many local producers are often unable to consistently meet the combined requirements of:
Japanese-grade quality standards,
Short lead time,
Uniform batch consistency, and
Strict buyer compliance (chemical, physical, and sustainability standards).
With fully automated production lines, Japanese technical supervision, and internationally benchmarked quality systems, IRIS will be able to replace a portion of these imports through domestic sourcing, thereby contributing to import substitution and reducing lead-time risk for local exporters.
As a 100% export-oriented company with confirmed long-term international buyers—including UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, and lululemon—and enjoying a 10-year tax holiday facility, IRIS is exceptionally well-positioned to:
Maintain high international competitiveness,
Protect its margins against raw-material and currency fluctuations, and
Achieve stable export earnings over the long term.
Supporting industry and export statistics indicate sustained growth in Bangladesh’s apparel accessories exports, driven by rising demand from global brands for high-quality, reliable, and compliance-ready component suppliers. In this context, IRIS’s cost structure, automation advantage, and secured buyer base collectively confirm that the project’s outputs are highly competitive in both domestic and external markets.
14.1. COMPARATIVE PRICE TABLE (USD / per unit)
Criteria
IRIS (Project)
Local Bangladesh Manufacturers
International Suppliers (China/Global)
Production Cost (USD / unit)
0.00417
0.006 – 0.010 (labour-intensive, lower automation)
0.008 – 0.015 (factory-level, varies by scale & province)
Selling Price (USD / unit)
0.0139
0.012 – 0.018 (domestic + export mixed)
0.012 – 0.025 (FOB, MOQ & customization dependent)
Gross Profit Margin (%)
≈ 70%
25% – 45%
20% – 40%
Annual Production Capacity
180–200 million units
30–120 million units (average mid-size factory)
100–500+ million units (large clusters)
Workforce (Manpower)
100 (first 5 years)160 (next 5 years)
150–400 (manual & semi-automatic lines)
300–1,000+ (cluster-based mega-units)
Level of Automation
Fully automated Japanese machinery
Semi-automatic / manual
High automation in large factories
Quality Control Standard
Japanese management & QC
Buyer-dependent
Factory-dependent
Customer Base
Fixed global brands: UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, lululemon
Mixed local + export buyers, job-work
Large brand + trading house-driven
Market Orientation
100% Export-Oriented
Mixed (domestic + export)
100% export
Tax Advantage
10-year tax holiday
Normal corporate tax
Normal corporate tax
Lead Time Advantage
Shortest for Bangladesh buyers
Short domestically
Long shipping lead time
FX Risk
USD revenue matched with USD imports
BDT revenue + USD imports
Mostly USD-based
Competitive Position
Low cost + high quality + fixed buyers
Medium cost, medium quality
Strong scale but higher logistics & geopolitical risk
14.2. Cost Competitiveness of Project Outputs — Domestic and External Markets:
IRIS’s proposed manufacturing operation is designed as a fully export-oriented, high-quality button and garment-accessory manufacturing facility serving established international buyers including UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, and lululemon. The project benefits from modern fully automated Japanese machinery, Japanese management control, a 10-year tax holiday facility, and secured long-term buyer relationships, all of which materially strengthen its cost competitiveness and market positioning.
At full production scale (reference case of this report), IRIS projects a unit production cost of USD 0.00417 per piece and a target export selling price of USD 0.0139 per piece. This results in a gross contribution of USD 0.00972 per piece, equivalent to an approximate gross margin of 70%. Such a high margin is exceptional for button manufacturing and provides a strong financial buffer to absorb raw material, logistics, and energy cost fluctuations.
14.2.1. Domestic Market Comparison
A substantial portion of Bangladesh’s button demand is currently met by imports or lower- to mid-quality local manufacturers. Domestic producers such as T&S Buttons, Tex Zippers, Uniglory, Button Tex, and Kohinoor Button supply a wide product range; however, these suppliers often differ in levels of automation, production consistency, compliance capability, and lead-time reliability.
IRIS’s fully automated production system, Japanese-grade quality assurance, and confirmed international buyer commitments enable it to offer:
Lower effective landed costs to domestic buyers through import substitution, and
Superior and consistent quality with shorter and more predictable delivery times compared to many local competitors.
This positions IRIS as a strategic local alternative to imported premium buttons, particularly for export-focused garment manufacturers in Bangladesh.
14.2.2. External Market Comparison
Representative FOB price listings from Chinese suppliers and international B2B portals indicate that prices for plastic/resin buttons typically start around USD 0.01 per unit, increasing to USD 0.02–0.06 or higher for customized, plated, or premium-grade items.
Against this benchmark, IRIS’s target export price of USD 0.0139 per unit lies within the low-to-mid range of prevailing international FOB prices, making it highly competitive for standard plastic and semi-premium button categories, while maintaining strict buyer compliance and Japanese quality standards.
14.2.3. Import Landed-Cost Benchmark
Aggregated import data for HS Code–based button imports into Bangladesh indicate an average import unit value of approximately USD 0.12 per unit (across mixed types and qualities). While this is a broad statistical aggregate and is higher for premium metal or plated buttons, it serves as a conservative benchmark of landed import cost faced by local buyers.
When compared with this benchmark, IRIS’s FOB export pricing and local manufacturing presence create a substantial advantage for both import substitution and margin capture, especially for export-oriented garment factories seeking consistent quality and reliable supply.
Key Competitive Advantages of IRIS
Very low unit production cost (USD 0.00417) achieved through automation and process efficiency
Secured long-term international buyers, minimizing sales volatility
USD-denominated export revenues, eliminating domestic foreign exchange risk
10-year tax holiday, significantly strengthening early cash flow and reinvestment capacity
Shorter lead times and Japanese quality control, creating strong non-price competitive advantages for premium brands
14.2.4. Cost Competitiveness
Based on the project’s unit economics, international price benchmarks, and domestic import price structure, IRIS is strongly cost-competitive in both domestic substitution and export markets. The project is capable of supplying at internationally competitive prices while maintaining superior quality, compliance, and delivery reliability.
14.3. SENSITIVITY TABLE — Effect on Unit Profit & Gross Margin if Unit Production Cost Rises
Base assumptions (project):
Unit selling price = USD 0.0139
Base unit production cost = USD 0.00417
Base unit gross profit = USD 0.00972 (70.0% gross margin)
Calculation of production cost increases of +10% / +20% / +30%:
Scenario
Unit Cost (USD)
Unit Profit = Price − Cost (USD)
Gross Margin = (Profit ÷ Price) × 100
Base (0%)
0.004170
0.009730
70.07%
+10% cost
0.004587
0.009313
67.01%
+20% cost
0.005004
0.008896
63.97%
+30% cost
0.005421
0.008479
61.01%
Interpretation:
Even with a 30% increase in unit production cost (e.g., major resin/freight spike), IRIS retains a ~61% gross margin — a very strong buffer compared with industry norms.
A 10%–20% cost shock reduces gross margin to ~67%–64%, still robust and well above typical local peers.
This confirms the project’s high resilience to raw-material and logistics volatility and supports a strong DSCR and loan-servicing capacity.
14.3. Trade Performance (Accessories Sector — Bangladesh)
Bangladesh’s accessories sector plays a critical support role to the export-oriented RMG industry and has developed into a strong deemed-export–driven manufacturing base, while remaining structurally dependent on imported raw materials such as resins, metals, and chemicals. The sector’s performance is therefore best evaluated through deemed exports, direct exports, and linkage with RMG trade flows.
14.3.1. Trade Performance Summary (FY 2023–24)
Trade Indicator
Value
Period
Context
Dependency Status
Deemed Exports (Accessories)
USD 6.87 Billion
FY 2023–24
Accessories supplied to domestic RMG factories for export garments
High Self-Reliance in Finished Goods
Direct Exports (Accessories)
Approx. USD 1.0 Billion
FY 2023–24 (Estimated)
Direct export of buttons, zippers, labels, trims to foreign buyers
Low but Rapidly Growing
Total RMG Exports
USD 45+ Billion
FY 2023–24
Primary demand driver of accessories consumption
Stable Long-Term Demand Base
RMG Exports to EU
USD 19.77 Billion
CY 2024
4.86% growth over 2023
Strong External Demand Corridor
14.3.2. Import Dependency of Raw Materials
Raw Material Category
Import Dependency
Impact on Accessories Sector
Plastic Resins (Polyester, Nylon)
90%+ import-dependent
Direct cost impact on plastic & polyester buttons
Base Metals (Brass, Steel, Aluminum)
85%+ import-dependent
Affects metal button & fashion accessories
Chemicals & Coatings
80%+ import-dependent
Plating, finishing & durability costs
This confirms that Bangladesh is:
Self-reliant in finished accessories production, but
Highly import-dependent on core raw materials.
14.3.3. Strategic Implication for IRIS Project
Strong deemed export demand (USD 6.87Bn) ensures a large and stable domestic off-take market.
Rising direct accessories exports (~USD 1.0Bn) demonstrate growing global buyer confidence.
The continued 40%–50% import dependency in buttons confirms:
Structural supply gap
High market absorption capacity for new efficient manufacturers
IRIS’s:
Fully automated Japanese machinery
Confirmed international buyers
Export pricing competitivenessdirectly aligns with both domestic substitution demand and direct export expansion.
15. Existing domestic output capacity in the sector to which the borrowing proposal relates, and the potential domestic and external demand given the estimated output cost structure.
15.1. Bangladesh Garments Export Volume
Bangladesh’s annual apparel export earnings are assumed at USD 38–47 billion, based on official export performance statistics published by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Export Promotion Bureau (EPB), Government of Bangladesh, FY 2023–2024.
Estimated Number of Garments Exported:
The average Free on Board (FOB) price per garment is conservatively assumed to be USD 5.00–8.00 per piece, based on export price ranges reported by The Daily Star Business Desk and other national trade publications reviewing Bangladesh’s product-wise export pricing structure. On this basis, the estimated number of garments exported annually is approximately 4.8–9.4 billion pieces.
Button Consumption per Garment:
Each garment is assumed to consume an average of 4–6 buttons per piece, depending on product category (shirt, denim, dress, knitwear, outerwear), based on global apparel trim consumption averages used in industrial costing studies and buyer technical specification guides.
Number of Accessories & Packaging Factories:
The number of registered garments accessories and packaging factories in Bangladesh is assumed at approximately 2,000 factories, as reported by the Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA) in its industry overview publications.
Average Installed Capacity per Factory:
The average installed output capacity per local accessories/button factory is conservatively assumed at 3–5 million units per year, considering that a large portion of domestic factories operate with semi-automatic and labor-intensive production lines, as discussed in sector capacity reviews published by Textile Focus Magazine and BGAPMEA industry assessments.
Import Dependency & Supply Gap:
Despite domestic production growth, Bangladesh remains dependent on imported high-quality trims and accessories for export-grade garments, particularly for international brands, as confirmed in BGAPMEA industry performance reviews and backward linkage sector analyses published in Textile Focus and national business newspapers.
IRIS Cost & Capacity Assumption:
IRIS’s projected unit production cost (USD 0.00417 per piece) and annual output capacity (180–200 million units) are based on the company’s internal feasibility study prepared using:
Fully automated Japanese machinery
Japanese technical management
Export-only production structure
10-year tax holiday support
15.2. Existing Domestic Output Capacity & Domestic–External Demand Gap
(Button & Garment Accessories Sector – Bangladesh)
15.2.1. Estimated Annual Market Demand (Derived from RMG Exports)
Item
Estimated Volume
Basis of Estimation
Annual Garment Export Volume
~4.5 billion pieces
Based on USD 45+ billion RMG exports
Average Button Consumption per Garment
6–10 pieces
Shirts, trousers, denim, jackets
Estimated Total Button Demand
27–40 billion pieces/year
RMG-linked demand only
This excludes footwear, bags, uniforms, and non-RMG apparel demand, meaning actual market demand is higher.
15.2.2. Existing Domestic Production Capacity (All Local Button Producers Combined)
Segment
Estimated Annual Capacity (Pieces)
Coverage
Plastic & Polyester Buttons
10–14 billion
Mass-market garments
Metal & Specialty Buttons
3–5 billion
Fashion, denim, jackets
Total Local Capacity
13–19 billion pieces/year
Combined industry
15.2.3. Import Dependency & Supply Gap
Item
Estimated Quantity
Total Market Demand
27–40 billion pcs
Local Production Capacity
13–19 billion pcs
Import Dependency
8–14 billion pcs annually
Import Dependency Ratio
40%–50% of total demand
This confirms that Bangladesh remains structurally import-dependent for buttons, especially for:
Precision plastic buttons
Branded fashion buttons
High-volume export-grade accessories
15.2.4. External (Export) Demand Outlook for Buttons
Market
Demand Trend
Driver
EU Market
Growing (4–6% annually)
Denim, fast fashion
Japan Market
Stable-High
Premium quality demand
USA Market
Moderate Growth
Sportswear & casual
ASEAN Buyers
Growing
Cost-driven sourcing shift
IRIS already has confirmed export buyers: UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, lululemon — meaning export demand is contract-backed, not speculative.
15.2.5. Linkage with IRIS Output Cost Structure
Item
IRIS Value
Industry Benchmark
Unit Production Cost
USD 0.00417
USD 0.007–0.012 (Asia avg.)
Export Selling Price
USD 0.0139
USD 0.01–0.06
Gross Margin
~70%
25%–45% typical
Automation Level
Fully Automatic (Japan)
Semi-automatic typical
This confirms:
IRIS is cost-competitive vs both imports and local producers
IRIS can profitably serve both:
Domestic import-substitution demand
Direct export demand
15.2.5. Potential External (Export) Demand for IRIS
Buyer Type
Status
UNIQLO
Confirmed
GU
Confirmed
M&S
Confirmed
NEXT
Confirmed
GAP
Confirmed
COACH
Confirmed
EVERLANE
Confirmed
lululemon
Confirmed
Export Market Coverage
Japan
Demand nature
Contract-based, fixed orders
Export stability
Very high
IRIS external demand is secured and pre-confirmed, not speculative.
15.2.5. IRIS Output vs National Market Position
Item
Quantity
IRIS planned capacity
180–200 million units/year
% of national installed capacity
≈ 8–17%
% of national annual demand
< 1%
% of import dependency gap
< 1%
IRIS will not create oversupply and will easily be absorbed by the market.
15.3. Analysis of the Button Manufacturing Industry in Bangladesh
The button manufacturing sector in Bangladesh is a critical component of the country's massive Readymade Garment (RMG) industry's backward linkage. It has evolved from a state of 100% import dependency to one of near self-sufficiency, though major challenges remain, particularly concerning raw material sourcing.
15.3.1. Some Button Manufacturing (Competitors of IRIS in Bangladesh):
Company Name
Address / Location
Products
Weixing Industrial Bangladesh Co Ltd
Plot 170-174 & 192-196, Cumilla EPZ, Cumilla.
All types of Metal & Polyester Accessories.
M. Y. & Union (BD) Limited
Plot # 152-153, DEPZ Ext. Ganakbari, Ashulia, Savar, Dhaka-1249.
All types of Metal & Polyester Accessories.
Tex Zippers (BD) Limited
Plot No. 180, Adamjee EPZ, Adamjee Nagar, Narayanganj- 1431, Bangladesh.
Fasteners, slide zippers, Fasteners, buttons, needles, and pins, nec.
T&S Buttons (Bangladesh) Ltd.
Factory: Plot # 220-221, Adamjee EPZ, Narayanganj, Bangladesh.
Button.
Kohinoor Button & Trims Industry
Factory Address: South Pahartali, Ward # 01, Fatehabad, Hathazari, Chattogram.
Thread (Polyester/cotton/Nylon/Mixed), Silicon Oil, BOPP roll, OPP Jumbo roll, all kind of plastic button (horn/pearl/chalk).
Button Tex Ltd.
Address: House # 60, South Shampur, Hemayetpur, Savar, Dhaka.
Pearl Button, Polyester Button, Chalk Button, Polyester Horn Button, Laser Button.
Buttons & Trims Ltd.
Factory Address: Plot # S-23, 24, 25 BSCIC Industrial Estate, Noakhali.
Button.
Cherry Button Ltd.
Factory Address: Vannara, Mouchak, Kaliakair, Gazipur.
Metal Button, Rivet, Snap Button, Eyelet, D-ring, Zipper, Puller, Buckle, Label, Patch, Badge.
Faiza Button & Zipper Ltd.
Company Address: Munno Nagar, 219/1, Pagar, Tongi, Gazipur.
Zipper, Button.
Orient Button Ltd.
Factory Address: Kayetpara (Adjacent to Demra union Office), Demra, Dhaka.
All Kinds of Button.
Pacific Button Ind. Ltd.
Company Address: 49, BSCIC I/E, Tongi, Gazipur.
Button.
Seo Kwang Button Co. Ltd.
Company Address: Vill: Porabari, P.O.: Ipsa, Gazipur Sadar, Dist. Gazipur.
Buttons.
Snap Button Ind. Ltd.
Company Address: Purbo Haqti, Natun Para, Hemayetpur, Savar Dhaka.
Button.
Uniglory Button Ltd.
Company Address: Gorai, Momin Nagor, Mirzapur, Tangail.
Button.
Sunman Button & Zipper Ind. Co. Ltd.
53-B, Baizid Bostami Road, Sholashahar I/A, Nasirabad, Chittagong.
Button.
Dekko Accessories Ltd.
Singair Road, Hemayetpur, Savar, Dhaka.
Button, Woven Label, Printed Label, Multicolor PP/PE/OPP Polybag, Butterfly, Collar Insert, Collar Bones, Back Board, Neck Board etc.
15.3.2. Manufacturing Cost and Pricing in the Button Sector of Bangladesh
The button manufacturing sector in Bangladesh is highly price-competitive and increasingly technology-driven. Automation has significantly improved production efficiency, reducing unit costs and doubling output compared to traditional machinery. Although plastic and polyester buttons dominate global demand due to cost advantages, manufacturers remain exposed to raw-material price volatility and foreign exchange risks because of heavy import dependence. Companies with advanced automation, stable export buyers, and strong cost controls—such as IRIS—are therefore better positioned to maintain consistent margins and remain competitive in both domestic and international markets.
Item
Value / Range
Unit / Reference
Remarks / Implication
Average Price Range (Metal Button)
USD 0.05 – USD 0.50
Per piece (Bulk Order)
Highly competitive market; price varies based on material quality, plating, branding, and design complexity.
Impact of Automation on Cost
Approx. 8% reduction
Per unit cost (Global trend: 2020–2023)
Automation such as CNC molding and laser engraving significantly improves cost efficiency and consistency.
Production Throughput (Automated Machines)
~300 units/hour
Per machine
Around double the output of conventional machinery.
Production Throughput (Traditional Machines)
~150 units/hour
Per machine
Higher labor dependency and lower efficiency.
Material Segment Share (Global Market)
Plastic/Polyester: 48%
% of total market
Dominates due to low cost and suitability for mass-market garments.
Metal: 30%
% of total market
Used mainly for premium and fashion garments.
Others (Shell, Wood, Composite)
22%
% of total market
Key Cost Challenge
Imported raw material dependency
—
Exposes manufacturers to FX risk, commodity price volatility, and freight cost fluctuations.
Primary Cost Risk Drivers
Resin price, base metal price, USD/BDT exchange rate
—
Directly impacts cost of production and profitability.
15.3.3. Cost-Structure Compatibility & Market Absorption
The project’s estimated unit production cost of USD 0.00417 and export selling price of USD 0.0139 result in a gross margin of approximately 70%, confirming strong cost-structure compatibility with prevailing domestic and international market prices. Sensitivity analysis further demonstrates that even under a 30% raw-material cost escalation, the project retains a gross margin above 60%, ensuring financial resilience. On the demand side, Bangladesh’s button sector exhibits a persistent 40%–50% supply gap due to import dependency, while IRIS’s projected output represents less than 2–3% of this annual deficit. Combined with confirmed long-term export buyers, this guarantees full market absorption of IRIS’s production without price pressure or inventory risk, thereby supporting sustainable revenue generation and loan repayment capacity.
15.3.4. Output Cost Structure vs Market Compatibility
Item
IRIS
Local Factories
Imported (China)
Unit Production Cost (USD)
0.00417
0.006 – 0.010
0.008 – 0.015
Selling Price (USD)
0.0139
0.012 – 0.018
0.012 – 0.025
Gross Margin
≈ 70%
25% – 40%
20% – 35%
Lead Time
Shortest
Short
Long (Import)
Tax Benefit
10-Year Tax Holiday
No
No
IRIS has strong cost competitiveness + export price strength, ensuring easy market absorption and strong loan repayment capacity.
15.3.5. Linkage Between Market Demand, Revenue Model & DSCR
The structural domestic demand–supply gap of approximately 8–14 billion button pieces annually, combined with Bangladesh’s continued 40%–50% import dependency, provides a strong and non-cyclical demand foundation for IRIS’s production output. This demand is further reinforced by confirmed long-term export buyers (UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, lululemon), ensuring that the project’s sales assumptions are contract-backed rather than speculative.
1. Impact on Revenue Model (2026–2035)
IRIS’s projected annual production capacity represents less than 2–3% of the total estimated domestic demand gap alone, meaning:
No market oversupply risk
No price suppression risk
The export-oriented pricing of USD 0.0139 per unit remains:
Well below premium international benchmarks
Highly competitive against Chinese FOB prices
As a result:
Sales volumes ramp up steadily from 2026 onward
Revenue growth is demand-driven, not dependent on aggressive price discounting
This directly validates the realism and sustainability of the Revenue Projections (2026–2035).
2. Impact on DSCR & Loan Repayment Ability
With:
Unit production cost: USD 0.00417
Unit selling price: USD 0.0139
Gross margin: ~70%
Confirmed export demand
10-year tax holiday
IRIS maintains strong and stable operating cash flows from the first year of operation. Even under adverse scenarios (raw material cost increase of 10%–30%), gross margin remains above 61%, ensuring continued positive net operating income.
This directly results in:
High and stable DSCR throughout the loan tenure
No reliance on refinancing
Comfortable annual debt service from operating cash flow
Strong protection for lenders against revenue volatility
Therefore, the same domestic demand gap that supports revenue growth also structurally secures loan repayment capacity.
Summary:
Item
Estimate / Range
Number of accessories & packaging factories in Bangladesh
~ 2,000 factories
Existing national, “installed” capacity for buttons/accessories (conservative)
If each factory produces 3–5 million pieces/year → ~ 6–10 billion pieces/year (aggregate across all accessory types)
Bangladesh apparel export value (2024 estimate)
~ USD 38–47 billion annually (exporter data)
Estimated number of garments exported (assuming avg FOB USD 5–8)
Roughly 4.8–9.4 billion garments/year (depends on product mix and price)
Estimated button demand from exported garments (assuming 4–6 buttons per garment)
≈ 19–56 billion buttons/year (export market alone)
Local supply share (from domestic factories) vs demand
Local installed capacity meets only a fraction (≈ 5–15%) of estimated button demand, leaving very large unmet demand
IRIS planned capacity
~ 180–200 million units/year — small share of national demand, but targeted at high-quality export & import-substitution segment.
Based on industry capacity, the existing domestic output of buttons in Bangladesh is significantly lower than the massive demand generated by the garment export sector. Even under conservative estimates, national demand exceeds 19 billion units per year, while domestic supply remains below 2.25 billion units. The proposed IRIS project, with a planned capacity of 180–200 million units annually and a highly competitive cost structure, will easily be absorbed by both domestic and external markets without creating oversupply.
15.3.6. Cost-structure compatibility & market absorption
IRIS unit cost = USD 0.00417 and selling price = USD 0.0139 (gross margin ≈70%). This low cost and high margin allow IRIS to:
Compete on price vs Chinese FOB offers (IRIS price is at or below many FOB listings for standard buttons).
Absorb freight/import duties for domestic buyers and still be cheaper than landed imports. (Zauba/import data show some landed import averaged higher values; IRIS price is competitive.)
Given the very large unmet demand (tens of billions), IRIS’s capacity of 180–200 million units will be readily absorbed by:
Export buyers (UNIQLO, GU, etc.) for major programs (fixed-volume contracts)
Domestic export-oriented garment factories reducing their imported trims
Regional export markets seeking nearshoring options
16. Existing Indebtedness Structure of the Project Sponsors
This section presents the current debt position of the project sponsors and evaluates their capacity to undertake the proposed foreign borrowing in a prudent and sustainable manner.
Capital & Ownership Structure
Shareholder
Paid-Up Capital (USD)
Share (%)
IRIS Company Ltd.
2,758,333.33
Majority
Hong Kong IRIS Co., Limited
8,750.00
Minority
Total Paid-Up Capital
2,767,083.33
100%
Existing Loan Position of the Sponsors
Particulars
Amount (USD)
Status
Remarks
Existing Foreign Loans
Nil
No outstanding
Sponsors are currently debt-free at the foreign level
Existing Local Bank Loans
Nil / Limited
Not material
No significant leverage at sponsor level
Contingent Liabilities
Nil
—
No guarantees or off-balance-sheet obligations
This confirms that the sponsors are currently operating with a very low leverage position, which significantly strengthens their credit profile.
Proposed Foreign Loan Position
Item
Amount (USD)
Proposed Foreign Term Loan (Parent Company)
3,000,000.00
Total Paid-Up Capital
2,767,083.33
Debt–Equity Ratio (Post-Loan)
1.08: 1
The post-loan debt-equity structure remains:
Within acceptable prudential norms for manufacturing projects
Well-supported by sponsor capital
Conservative relative to projected cash flows
Creditworthiness & CIB Status
The sponsors confirm that:
All statutory payments and financial obligations are regular and up to date
No classified or default loans exist in the banking system
CIB reports will be submitted as part of the Bangladesh Bank approval application
The sponsors of the IRIS project presently maintain a low-leverage financial position with no material outstanding foreign or domestic borrowings. Against a paid-up capital base of USD 2.767 million, the proposed foreign loan of USD 3.0 million results in a post-financing debt–equity ratio of approximately 1.08:1, which remains within prudent limits for a capital-intensive, export-oriented manufacturing project. The sponsors’ strong equity commitment, absence of legacy debt burden, and clean credit standing significantly strengthen the project’s overall bankability and debt-servicing reliability.
17. Risk & Mitigation Strategy
The IRIS project has been evaluated against key financial, operational, market, and regulatory risks. Appropriate mitigation strategies have been incorporated into the project design to ensure long-term stability and debt-servicing reliability.
1. Raw Material Price Volatility Risk
Risk: The button manufacturing industry is dependent on imported plastic resins, metals, and chemicals. Global commodity price fluctuations may increase production costs.
Mitigation:
High base gross margin (~70%) provides a strong buffer.
Sensitivity analysis confirms margins remain above 60% even under 30% cost escalation.
Long-term supplier contracts and bulk procurement will stabilize input costs.
USD-denominated export earnings naturally hedge import cost exposure.
2. Exchange Rate (Foreign Currency) Risk
Risk: Foreign currency fluctuation may impact import costs and loan repayment.
Mitigation:
Export revenue is fully USD-denominated, creating a natural hedge.
Loan is also USD-based, ensuring currency alignment.
Minimal BDT exposure in debt servicing.
3. Market Demand & Order Volatility Risk
Risk: Global demand fluctuations could affect order volume.
Mitigation:
IRIS has confirmed long-term buyers: UNIQLO, GU, M&S, NEXT, GAP, COACH, EVERLANE, lululemon.
Domestic market shows 40%–50% supply gap, allowing import substitution when needed.
Production capacity represents less than 3% of domestic demand shortfall.
4. Operational & Production Risk
Risk: Delays in machinery installation, technical failures, or labor disruptions may impact output.
Mitigation:
Fully automated Japanese machinery reduces dependence on manual labor.
Japanese technical management ensures optimized production control.
Preventive maintenance schedules and OEM support contracts will be in place.
5. Financial & Debt Servicing Risk
Risk: Cash flow stress during initial years could affect loan repayment.
Mitigation:
10-year tax holiday strengthens early cash retention.
Strong DSCR supported by high operating margins.
Conservative post-loan debt–equity ratio (1.08:1).
No existing sponsor debt burden.
6. Regulatory & Compliance Risk
Risk: Changes in export regulations, environmental compliance, or customs rules.
Mitigation:
Operation in compliance with BEPZA/BIDA, Customs Act, and environmental regulations.
Export-oriented status provides regulatory stability and incentives.
The IRIS project’s risks are primarily commercial and operational in nature, all of which are adequately mitigated through high automation, strong export contracts, robust margins, and conservative financial structuring. The overall risk profile of the project is assessed as low to moderate and well within acceptable thresholds for foreign loan financing.
18. Environmental and Sustainability Impact
Basic PhilosophyIRIS considers it an important mission to be kind to the environment (local communities) and people (neighbours) who support the company by creating small, enjoyable products that are “our work” and by providing enrichment and harmony. IRIS regards it as an important mission to be kind to the environment (local communities) and people (neighbours) that support the company and actively promotes environmental protection activities.
Action PolicyThe Company shall accurately assess the environmental impact of its business activities, products, and services—mainly the manufacture and sale of clothing accessories—and shall carry out environmental protection activities accordingly.
Environmental Protection InitiativesTo prevent environmental pollution, IRIS focuses on the following items as part of its environmental protection activities:
Reduction of energy consumption in order to reduce CO₂ emissions.
Promotion of recycling and waste reduction and effective use of resources.
Promotion of green purchasing.
Development, proposal, and active promotion of environmentally friendly products.
Clarification of and compliance with environmental laws, regulations, and other agreed requirements.
IRIS shall continuously improve its environmental management system to achieve ongoing enhancement of environmental performance.
Through this environmental policy, IRIS sets environmental objectives and targets, which are regularly reviewed. The environmental policy is communicated to all personnel to raise awareness of environmental protection, and awareness-raising activities are also conducted to gain the understanding and cooperation of affiliates and business partners. IRIS also makes its environmental policy publicly available.
19. Stakeholder Engagement – Human Rights Policy
The IRIS Group shall focus on the following items in all countries and regions in which it operates:
Prohibition of Inhuman Treatment and DiscriminationIRIS respects the human rights, individuality, and personality of all stakeholders and does not engage in any acts that disregard human rights, including discrimination and all forms of harassment. The Company also promotes fair business activities by preventing human rights violations before they occur and by taking appropriate action in the event of such violations.
Prohibition of Forced LaborForced labor and trafficking in persons not of free will are strictly prohibited.
Prohibition of Child LaborIn all business activities and business relations, IRIS shall not employ persons under the minimum legal working age. In addition, IRIS shall not allow children to work in a manner that is detrimental to their development.
Respect for Basic Labor RightsIRIS respects national and regional basic labor rights, including the right to organize and the right to collective bargaining, such as freedom of association and collective bargaining.
Safe, Hygienic, and Healthy Working EnvironmentIRIS provides a safe, hygienic, and healthy working environment in accordance with applicable laws.
Appropriate Working Time Management and WagesIRIS appropriately manages working hours, holidays, and leave in accordance with the law. The Company complies with the legal minimum wage and strives to pay more than the living wage. Wages shall not be unreasonably reduced.
Socio-Economic Contribution
IRIS believes that through its operations in Bangladesh, the Company will create significant employment opportunities and contribute meaningfully to the country’s economic development. IRIS will also train a large number of engineers and develop a skilled workforce capable of contributing to the growth of the national industrial sector.
20. Conclusion
Based on detailed financial, commercial, and market analyses, the IRIS button manufacturing project is assessed to be financially sound, commercially viable, and strategically important for Bangladesh’s export-oriented industrial base. The project demonstrates strong cash-flow generation, conservative leverage, confirmed international demand, and robust cost competitiveness. Accordingly, the proposed foreign loan financing of USD 3.0 million is considered fully justified and bankable, with a high level of confidence in the project’s long-term debt-servicing capacity and economic contribution.
21. Global Networks
Sales Offices and Factories in Japan
Tokyo head office
3-5-11, Higashi-kanda,
Chiyoda-ku, Tokyo
Meigi office
2-5 Toriidori, Nakamura -ku,
Nagoya-shi, Aichi
Osaka officeIkutamateramachi, Tennoji-ku,
Osaka-shi, Osaka.
Okayama office3682-2, Kojimaogawa-cho,
Kurashiki-shi, Okayama.
Gunma head office/
Yajima factory
554-1, Suehiro-cho, Ota-shi, Gunma
Ojima factory
3005, Serada-cho, Ota-shi,
Gunma
Nitta factory
18-5 Kaminaka-cho,
Nitta,Ota-shi, Gunma
Katashina factory
3819, Kamata, Katashina-mura,
Tone-gun, Gunma
Kansai production Department5-12-20, Magarigawa-cho,
Kashihara-shi, Nara
Overseas Sales Offices and Factories
Shanghai IRIS
1903B, NO.666 Gubei Rd, Kirin Plaza Building, Chang/Ning District, Shanghai China
Taiwan IRIS
20F-A, No.7 Ssuwei 4Rd, Kaohsiung, TAIWAN, R.O.C.
Taiwan IRIS Taipei office
17F-7, No.6, Section 4,
Xinyi Rd, Da’an District,
Taipei City, 106 TAIWAN
Hong Kong IRIS
Flat A, 16th Floor, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, HONG KONG
SHENZHEN IRIS
Rm.302 No.212 Tairan Ind. District, Che Gong Miao Futian ShenZhen CHINA
Bangladesh IRIS
3rd Floor(3-B), House#450/4, Road#8, Baridhara D.O.H.S., Dhaka-1206, Bangladesh.
IRIS New York office
1180 Avenue of The Americas Suite809 New York, NY10036 U.S.A.
IRIS Seoul office
706, Sunshine Building, 11-1, Chungmuro 2GA Jung-gu, Seoul, KOREA
Suzhou IRIS
Wu song Jiang Road(S) Kunshan Economic & Technical development Zone, Jiangsu, CHINA
Dalian IRIS
Dalian Economic & Technical Development Zone, West Tie Shan Road No.9, Dalian, CHINA
Philippine IRIS
Light Industry and Science Park of The Philippines Special Export Zone Ampere St. Cabuyao. Laguna, PHILIPPINES
Bangladesh IRIS factory
Meghdubi Bypass Road, Block-A, Holding No- 55/1, Ward No-40, P. S.- Joydebpur Post Code-1710, Gazipur City Corporation, Bangladesh.
The End