Olim Textile, a family-owned business founded 20 years ago, has steadily diversified its activities from cottontrading to exporting high-quality yarns worldwide and is now the leader in its sector in Tajikistan.
Jamshed Karimovich, Chairman, explains, “We invested around €7.98 million of our own funds plus a €23.9- million loan from the Eurasian Development Bank to build our new factory, and we are now working with major partners in many international markets like Italy. We are open to new international partnerships to help build brand recognition for our company worldwide.” He adds that Olim Textile focuses on customer service, completing orders on time, and flexible pricing.
The new plant, the first factory of its kind in Central Asia to employ the latest-model German equipment, can produce 5,000 tonnes of high-quality cotton yarn annually and will help Olim Textile expand its exports of fine and medium-grade yarn to Russia and other markets.
Tajikistan is one of the largest producers of fine-staple fibre in the CIS region, and Olim Textile is able to buy all its cotton from local farmers. The company also hires locals and trains them to meet high standards. “We put a lot of emphasis on quality, equipment and training our people,” Jamshed Karimovich says.
In its first year of operations, Olim Textile’s new factory produced 4,200 tonnes of yarn and sold out. Jamshed Karimovich explains, “We have a competitive advantage in global markets because here in Tajikistan, energy and labour costs are lower, which makes our prices for cotton about 30% to 40% cheaper than in China.”
Olim Textile also plans to expand into yarn-dyeing and to extend its product range to: undergarments, socks and jeans. In a move to streamline its exports, the company will open warehouses in Turkey, Poland and other locations. Challenges for Olim Textile include a recent steep drop in global cotton prices; Tajikistan’s high interest rates; the lack of recognition of Tajikistan in many international markets; and the need to train human resources. In spite of the problems, Jamshed Karimovich praises Tajikistan’s government for the help it has given Olim Textile, including VAT exemption for 12 years and duty-free imports of equipment. He says, “Compared to other governments in Central Asia, the Tajik government is very liberal towards businesses and offers a lot of support for production and development. We would like to invite European companies for a fruitful future cooperation.”