FORWARD wAREHOUSES TO CAPTURE THE WORlD’S LARGEST COTTON IMPORT MARKET

Bangladesh is the world’s largest cotton market but imports only a small portion of its cotton (<10%) from the United States. The problem isn’t supply — America is the second largest cotton exporter in the world. The problem isn’t demand — American cotton is near-unanimously preferred by Bangladeshi yarn manufacturers for its quality and transparency.

The problem is time.

American cotton takes far too long to get to Bangladesh and, unlike Brazilian cotton, isn’t sold “afloat” (that is, in-transit). Even when sold afloat, American cotton’s market-based pricing transparency keeps it from being price competitive.

AmeriBangla’s solution is the forward warehouse. Instead of holding American cotton in warehouses in Texas and Georgia, AmeriBangla creates a secure, cost-effective environment for American cotton to be store inside of Bangladesh, post-customs, for same-day or next-day delivery to customers. This simple yet radical act increases pricing power for the American farmer, and drastically reduces overall expenses for the customer.

TWO WAREHOUSES — ONE AT THE PORT, ONE NEXT TO THE FACTORIES — for maximum throughput

AmeriBangla’s CottonHouse is actually two forward warehouses, one in the port city of Chattogram (also known as Chittagong) and the other near the industrial clusters surrounding Dhaka. Between these two warehouses, 100% of Bangladeshi yarn-producing factories can be reached within one day.

This dual-warehouse model allows for receiving and delivering the massive quantities needed to meet demand and capture significant market share. Both locations are able to process large containers, but the Chattogram warehouse more so. The Dhaka warehouse, conversely is better suited for redistribution to small trucks, allowing our model to reach smaller yarn manufacturers.

AmeriBangla is developing capacity to process 50 containers (~4,500 bales) per day by mid-2027. Even at this capacity, we believe we will be unable to meet demand, which should be at 150 containers per day or more.