When Bangladesh gained its independence from Pakistan in 1971, the new government nationalized the textile industry, as it did with many other businesses in which West Pakistanis had been the principal owners.

Although there were some Bangladeshi industrialists, they did not form a large or politically powerful group and thus had to surrender control of their factories to the government as well.

All of the country's textile factories were then nationalized and organized under the Bangladesh Textile Mills Corporation, or BTMC.� Alhaj Textile Mills Ltd was also nationalized at that time.