Project Profile
Overview:
Bengal IRIS TAKUMI LTD.
Establishment Date: 21 st 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
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 1 of 42
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 .................. 12
14. Cost Competitiveness of the Project’s Outputs in Domestic and External Markets ...................... 19
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. .......................... 25
16. Existing Indebtedness Structure of the Project Sponsors .............................................................. 35
17. Risk & Mitigation Strategy .......................................................................................................... 37
18. Environmental and Sustainability Impact .................................................................................... 38
19. Stakeholder Engagement – Human Rights Policy ........................................................................ 39
20. Conclusion ................................................................................................................................... 40
21. Global Networks .......................................................................................................................... 41
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 2 of 42
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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 3 of 42
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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 4 of 42
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: $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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 5 of 42
8. Project Manpower
1 st year 2 nd year 3 rd year 4 th year 5 th year
Foreign 2 2 2 2 2
Local 50 98 98 98 98
Total 62 100 100 100 100
6 th year 7 th year 8 th year 9 th year 10 th 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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 6 of 42
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
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 7 of 42
11. Production Process
➢ 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.
Raw Materials Casting Thermosetting Turning Polishing Inspection
Casting Turning Polishing
Inspection
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 8 of 42
48% 52%
Total Finance
Paid-Up Capital (Sponsors)
Foreign Term Loan (Parent Co.)
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:
Category Percentage (%) Amount (USD)
Import of Automated Machinery & Equipment 30% 900,000
Factory Building Cost 60% 1,800,000
Utility Setup 5% 150,000
Contingency & Price Escalation Buffer 3% 90,000
Trial Run & Testing Cost 2% 60,000
Total Loan Amount 100% 3,000,000
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:
o Laser engraving units
o Automated rod casting machines
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 9 of 42
o Precision cutters
o Sorting & polishing systems
o Solvent recovery units
o 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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 10 of 42
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.
12.6. PROJECTED BALANCE SHEET
◆ ASSETS
Year Net Fixed Assets
(Machinery)
Working Capital
& Cash Total Assets
2026 4,700,000 1,157,083 5,857,083
2027 4,350,000 1,597,083 5,947,083
2028 4,000,000 2,110,208 6,110,208
2029 3,650,000 2,585,584 6,235,584
2030 3,300,000 3,036,656 6,336,656
2031 2,950,000 3,507,598 6,457,598
2032 2,600,000 3,952,203 6,552,203
2033 2,250,000 4,370,134 6,620,134
2034 1,900,000 4,761,039 6,661,039
2035 1,550,000 5,124,583 6,674,583
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 11 of 42
◆ 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
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.
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 12 of 42
0 1000000 2000000 3000000
1
2
3
4
5
6
7
8
9
10
Gross Profit Margin
Gross Margin Sales (USD)
Gross Profit (USD) Year
0.9
0.95
1
1.05
1.1
1.15
1.2
1 2 3 4 5 6 7 8 9 10
DSCR
DSCR
13. The capacity of the project to service the proposed debt with
projected income flows
13.1. LOAN REPAYMENT ABILITY ANALYSIS (DSCR)
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 (%)
This confirms very high cost efficiency due to automation and Japanese technology.
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
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%
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 13 of 42
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
1 2 3 4 5 6 7 8 9 1 0
NET MARGIN
Net Margin
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
1 2 3 4 5 6 7 8 9 10
ROE
ROE
13.2.2. Net Profit Margin (%)
Margins remain well above the industry average (8–12%) , proving strong export competitiveness .
13.2.3. Return on Equity (ROE %)
ROE remains healthy and stable for a capital-intensive export manufacturing project .
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%
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%
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 14 of 42
0 0.2 0.4 0.6 0.8 1 1.2
1
2
3
4
5
6
7
8
9
10
Debt – Equity
Debt – Equity
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
DSCR
Loan Outstanding Equity Debt – Equity
13.2.4. Debt–Equity Ratio
The company becomes fully debt-free by 2035 .
13.2.5. Debt Service Coverage Ratio (DSCR)
Always above 1.00 → Fully Serviceable, Loan is entirely serviceable from operating profits alone with
zero default risk.
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
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
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 15 of 42
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
ASSET TURNOVER
Sales Asset Turnover
13.2.6. Asset Turnover Ratio
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%
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×
Lot No. D1, Bangladesh Special Economic Zone,
Sonpara, Panchrukhi Via Rupganj Araihazar,
Narayanganj-1460 Bangladesh
Page 16 of 42
0
100,000
200,000
300,000
400,000
500,000
600,000
2024 2026 2028 2030 2032 2034 2036
BURDEN RATIO
Installment Net Profit Burden Ratio
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Debt Service to Sales
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 (%)
Debt service remains well below the critical 25% risk threshold, indicating very safe revenue-to-debt
alignment.
13.2.10. Loan Repayment Burden Ratio
Although early years show higher repayment pressure, the project never breaches DSCR below 1.0, and
repayment remains fully covered operationally.
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%
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
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13.2.11. Cumulative Loan Coverage Ratio
Measures total profit vs total repayment.
Total Profit (2026–2035): ≈ USD 3.91 million
Total 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
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0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2024 2026 2028 2030 2032 2034 2036
LOAN AMORTIZATION
Principal Interest
Total Payment Outstanding Balance
Break-Even Calculation:
Break-even Sales = 1,250,000
0.70 ≈ 𝑈𝑆𝐷1,785,714
Break-Even as % of Capacity:
1,785,714
2,777,778 = 64.3%
Break-Even in Units:
64.3% × 200,000,000 ≈ 128,600,000 buttons
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
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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.
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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:
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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
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Unit selling price
Base unit production cost
Base unit gross profit
USD
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%:
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56.00%
58.00%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
0.0075
0.008
0.0085
0.009
0.0095
0.01
0.00417 0.004587 0.005004 0.005421
Base (0%) +10% cost +20% cost +30% cost
SENSITIVITY TABLE
Unit Profit = Price − Cost (USD)
Gross Margin = (Profit ÷ Price) × 100
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
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%
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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:
o Structural supply gap
o High market absorption capacity for new efficient manufacturers
• IRIS’s:
o Fully automated Japanese machinery
o Confirmed international buyers
o Export pricing competitiveness
directly aligns with both domestic substitution demand and direct export expansion.
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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
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• 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
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Item Estimated Quantity
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
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This confirms:
• IRIS is cost-competitive vs both imports and local producers
• IRIS can profitably serve both:
o Domestic import-substitution demand
o 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.
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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).
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Company Name Address / Location Products
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.
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Company Name Address / Location Products
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.
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Item Value / Range Unit / Reference Remarks / Implication
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-
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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:
o No market oversupply risk
o No price suppression risk
• The export-oriented pricing of USD 0.0139 per unit remains:
o Well below premium international benchmarks
o Highly competitive against Chinese FOB prices
• As a result:
o Sales volumes ramp up steadily from 2026 onward
o 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:
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• 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
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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:
o Compete on price vs Chinese FOB offers (IRIS price is at or below many FOB listings
for standard buttons).
o 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:
o Export buyers (UNIQLO, GU, etc.) for major programs (fixed-volume contracts)
o Domestic export-oriented garment factories reducing their imported trims
o 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
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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:
o All statutory payments and financial obligations are regular and up to date
o No classified or default loans exist in the banking system
o 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
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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.
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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 Philosophy
IRIS 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 Policy
The 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 Initiatives
To prevent environmental pollution, IRIS focuses on the following items as part of its environmental
protection activities:
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1. Reduction of energy consumption in order to reduce CO₂ emissions.
2. Promotion of recycling and waste reduction and effective use of resources.
3. Promotion of green purchasing.
4. Development, proposal, and active promotion of environmentally friendly products.
5. 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 Discrimination
IRIS 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 Labor
Forced labor and trafficking in persons not of free will are strictly prohibited.
Prohibition of Child Labor
In 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 Rights
IRIS 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 Environment
IRIS provides a safe, hygienic, and healthy working environment in accordance with applicable laws.
Appropriate Working Time Management and Wages
IRIS 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
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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.
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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 office
Ikutamateramachi, Tennoji-ku,
Osaka-shi, Osaka.
Okayama office
3682-2, 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 Department
5-12-20, Magarigawa-cho,
Kashihara-shi, Nara
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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