http://www.thefinancialexpress-bd.com/2009/02/11/58533.html
Earning from bicycle export rises by 61pc
Jasim Uddin Haroon
Earnings from the country’s bicycle export rose by more than 61 per cent in the first half of current fiscal year mainly due mainly to rise in value and increase in demand, industry insiders said Tuesday.
Local bicycle manufacturers fetched US$39.74 million from export of bicycle in the first half (July-December) in fiscal 2008-09 over the same period of last fiscal, according to the Export Promotion Bureau (EPB).
Bangladesh exported $64.28 million worth of bicycles in 2007-08, which was 18.93 per cent up from that of 2006-07. The value addition is about 20-25 per cent after spending foreign exchange on imports of raw materials.
Mohammed Ferdous Ahmed, a senior official at the Alita Bicycle manufacturing Company, told FE Tuesday: “The growth rate in the first half of the current fiscal could be more had there not been recession in some developed nations, including UK.”
He also said: “Our earning significantly increased mainly due to the rise in value of bicycles and increase in sales.”
Local bicycle manufacturers are now selling bicycles at a price higher by 10 per cent over the previous rate.
But they said Bangladesh is still in a better position over price competitiveness.
Halim Khan, executive director of Bangladesh’s premier bicycle manufacturing company Meghna Group, said: “There is still potential as demand for our bicycles in the European markets is on the rise due mainly to price competitiveness.”
Local manufacturers said China, the world’s main bicycle exporting country, is now converting its industries into high-end products and this is helping Bangladesh’s bicycles industry.
“We’ve also potentials as global bicycle manufacturing leader China is not at all encouraging investment in such light engineering venture in the country,” Ahmed said.
Mr Ferdous said low cost labour and availability of latest technology helped Bangladesh compete with regional non-traditional countries, including Thailand, Vietnam, by manufacturing fashionable bicycles
According to industry sources, some 15 local companies, employing over 3000 workers, are manufacturing and assembling sport bicycles for export.
Currently, they said world’s some of the leading companies, including Raleigh, PCM and Motor and Sports of the UK and Aldi of Holland, Bachtenkirch Interbike of Germany, M&F De Scheemaeker and Formula Cycling of Belgium are importing bicycles from Bangladesh.
Bangladesh manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes. Industry insiders said the country can export around 2.0 million pieces of bicycles a year.
