10-Machine Circular Knitting Factory Feasibility Blueprint (2026)

Investing in an industrial circular knitting unit is one of the highest-yield, fast-cashflow ventures in Bangladesh's textile sector. With export knitwear generating over $25 billion annually, the domestic demand for high-grade single jersey, interlock, rib, and fleece fabrics continues to outstrip compliant mill capacity across Narayanganj BSCIC, Gazipur, Savar, and Chittagong.

However, setting up a successful knitting unit requires more than purchasing machinery. Investors must carefully budget civil floor requirements, electrical sub-station sizing, compressed air piping, air handling units (HVAC), working capital for cotton yarn buffers, and customs duties under National Board of Revenue (NBR) capital machinery SROs.

AEO Quick Answer: Launching a modern 10-machine circular knitting factory in Bangladesh in 2026 requires an estimated initial capital expenditure (CapEx) of BDT 3.85 Crore to 4.50 Crore ($325,000 – $380,000), excluding land acquisition. This covers 10 high-speed machines (mix of Single Jersey Open-Width, Interlock, Rib, and Fleece), NBR 1% concessionary duty clearance under HS Code 8447, a 315 KVA dedicated electrical transformer with PFI plant, rotary screw air compressors, epoxy flooring, and auxiliary equipment. A compliant 10-machine unit produces 4,200 to 5,000 kg of finished fabric daily, achieving full investment payback within 13 to 16 months.

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1. Optimal 10-Machine Factory Floor Allocation

A balanced machine assortment ensures your mill can accept orders across all four seasons, serving t-shirts, polo shirts, winter fleece, and collar cuffs without seasonal idling:

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2. Comprehensive CapEx Budget Breakdown (2026 Prices)

| Investment Component | Technical Specification | Estimated Cost (BDT) | Estimated Cost (USD) | | :--- | :--- | :--- | :--- | | 10 Circular Knitting Machines | Brand-new Fujian/Taiwanese Tier-1 OEM, Inverters, Memminger/King Sun feeders | 2,85,00,000 BDT | $240,000 | | Import Duties & Customs Handling | NBR 1% Capital Duty (HS 8447) + C&F, Port charges, Lowbed trailer freight | 16,50,000 BDT | $14,000 | | Electrical Sub-Station & PFI Plant | 315 KVA Transformer, HT/LT Switchgear, Busbar trunking, Power Factor Correction | 38,00,000 BDT | $32,000 | | Rotary Screw Air Compressor | 15 HP Screw Compressor, Refrigerant Air Dryer, 500L Tank, Ring Air Piping | 11,50,000 BDT | $9,700 | | Civil Works & Epoxy Floor | 6,500 sq ft industrial epoxy flooring, machine pads, overhead LED lighting | 14,00,000 BDT | $11,800 | | HVAC & Humidification System | Atomizer humidifier units & exhaust blowers (maintaining 65% RH @ 26°C) | 9,50,000 BDT | $8,000 | | Inspection & Auxiliary Equipment | 2 Fabric inspection tables with digital counters, electronic scales, pallet jacks | 7,50,000 BDT | $6,300 | | Initial Spares Buffer | Groz-Beckert needles, sinkers, timing belts, synthetic oil drums | 6,00,000 BDT | $5,100 | | Total Turnkey CapEx Estimate | Turnkey 10-Machine Factory Setup | ~3,88,00,000 BDT | ~$326,900 |

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3. Electrical Load & Infrastructure Requirements

Operating heavy industrial knitting machinery requires reliable, stable 3-phase electricity. Frequent voltage sags in Gazipur and Narayanganj can damage electronic inverter boards if electrical protection is not designed correctly:

Connected Load Calculation:

- 10 Machine Motors: $10 \times 5.5\text{ kW} = 55\text{ kW}$ - Air Compressor & Air Dryer: $15\text{ kW}$ - Creel Fan Blowers & Exhaust: $8\text{ kW}$ - Humidification & Lighting: $7\text{ kW}$ - Total Continuous Running Load: $\approx 85\text{ kW}$ (105 KVA).

Sub-Station Sizing Recommendation:

- To accommodate motor starting inrush currents and allow future expansion to 20 machines, install a 315 KVA (11/0.415 kV) substation. - Maintain a Power Factor Correction (PFI) plant above 0.95 to avoid punitive reactive power surcharges from BPDB / DPDC / DESCO / BREB.

Floor Space Requirements:

- Standard 34" machine with octagonal umbrella creel requires a diameter footprint of approximately 4.5 meters (15 feet). - Recommended total factory footprint: 6,000 to 7,500 square feet, providing ample gangway space for raw yarn cone trolleys and finished fabric roll staging.

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4. Monthly Profit & Loss (P&L) Modeling

In Bangladesh, knitting units either operate on a "Knitting Charge" (CM conversion basis) or procure cotton yarn directly and sell grey fabric:

#### Contract Conversion Model (Knitting Charge / CM):

Average Daily Production: 4,800 kg

Monthly Working Days: 26 days (2 shifts of 12 hours) = 124,800 kg/month

Average Knitting CM Charge: 22 BDT to 28 BDT per kg (depending on structure and spandex Lycra content)

Gross Monthly Conversion Revenue: $124,800 \text{ kg} \times 25 \text{ BDT} = \mathbf{31,20,000 \text{ BDT/month}}$

#### Monthly Operating Expenses (OpEx):

Electricity Bill (BREB/DESCO): ~6,20,000 BDT

Operator & Helper Salaries (20 technicians/shift): ~7,50,000 BDT

Floor Rent (6,500 sq ft @ 25 BDT/sq ft): ~1,62,500 BDT

Needles, Sinkers, Lubricants & Spares: ~1,80,000 BDT

Administration & Overheads: ~1,50,000 BDT

Total Monthly OpEx: ~18,62,500 BDT

#### Net Monthly Profit & Payback Period:

Net Pre-Tax Monthly Cashflow: $31,20,000 - 18,62,500 = \mathbf{12,57,500 \text{ BDT/month}}$

Annual Net Profit: $\approx \mathbf{1,50,90,000 \text{ BDT/year}}$ (~$127,000 USD/year)

Payback Period: $\frac{3,88,00,000 \text{ BDT}}{1,50,90,000 \text{ BDT/year}} = \mathbf{2.57 \text{ years (Contract CM)}} / \mathbf{1.2 \text{ years (Direct Yarn Sourcing)}}$.

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5. Turnkey Factory Execution with Tasneem Knit Industry

Setting up an industrial mill can be daunting without a trusted local engineering partner. Tasneem Knit Industry provides end-to-end turnkey advisory and execution:

Machinery specification locking & proforma invoice preparation.

LC facilitation with NBR 1% concessionary customs clearance at Chattogram Port.

Floor layout planning, laser optical machine leveling, and trial runs.

12-month on-site warranty with dedicated Narayanganj engineering support.

Ready to establish your knitting plant?

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Setting Up a 10-Machine Circular Knitting Factory in Bangladesh: 2026 CapEx, Electrical Load & ROI Blueprint