Master plan soon to boost tourism

http://www.thedailystar.net/newDesign/news-details.php?nid=79335

Master plan soon to boost tourism
BSS, Dhaka

Kuakata Beach. SOURCE: http://www.bangladeshtourism.gov.bd/

Civil Aviation and Tourism Minister GM Qader yesterday said a master plan would be undertaken for boosting the tourism sector and making it attractive.

To this end, a time-befitting tourism policy is being formulated, he said while presiding over a meeting on tourism policy at his ministry here.

“There is immense potential for tourism in Bangladesh, and tourist spots will be developed by identifying those to attract local and foreign tourists,” the minister said.

Shafique Alam Mehdi, chairman of Bangladesh Parjatan Corporation, Sardar Abul Kalam, joint secretary of the ministry, and other high officials were present.

IDB funds Rahimafrooz to aid its battery export

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IDB funds Rahimafrooz to aid its battery export

Fawaz Abdul Nour, executive director of Islamic Corporation for Development (ICD), and Munawar Misbah Moin, managing director of Rahimafrooz Globatt Ltd, exchange documents after signing an agreement yesterday in Dhaka. Under the deal, ICD will fund $5.3 million for Rahimafrooz Globatt to develop its automotive battery export business. Feroz Rahim, chairman of Rahimafrooz Globatt, among others, was present.Photo: STARStar Business Report

Islamic Corporation for Development (ICD), the private sector financing arm of Islamic Development Bank (IDB), yesterday made its first ever investment in Rahimafrooz Globatt Ltd to develop the latter’s automotive battery export business.

ICD will fund $5.3 million for Rahimafrooz’s newest venture, as the company is going to double its annual automotive battery production capacity to reach 25 lakh units to capture a market share in developed countries by May.

Fawaz Abdul Nour, executive director of ICD, and Munawar Misbah Moin, managing director of Rahimafrooz Globatt, the local firm, signed an agreement to this effect.

“The investment deal marks a significant step for ICD in Bangladesh to provide finance to successful and professional business groups, such as Rahimafrooz,” said Nour.

“The investment, which is debt finance, is only the beginning. ICD is also eager to invest in the country’s private sector, including ICT, healthcare, agro market, telecommunication, power and SME,” he said.

He said such investments would help accelerate the growth of private enterprises and boost the country’s economy.

Moin of Rahimafrooz Globatt said the agreement would help accelerate the process of internationalisation of the company.

“We are going to double our annual production capacity of automotive batteries by May. The product has especially been designed to enter the rich markets, including North America, Europe, Korea and Australia,” he said.

The $14.5 million Rahimafrooz Globatt in Ishwardi EPZ nears completion and is under global expansion plan.

Earlier in January the project received the country’s first ever equity investment from Frontier Fund, a local partner of Brummer and Partners, Sweden’s largest hedge fund manager.

An equity fund is generally invested in firms by purchasing certain equity shares of those companies and sharing their profit with the investors. Investors can recover the fund only when the companies sell their shareholdings to other investors.

Thirty percent of the project cost has been raised through equity investments from Global Holdings Ltd and Brummer and Partners.

HSBC is also co-financing the venture.

Feroz Rahim, chairman of Rahimafrooz Globatt, among others, was present at the signing ceremony.

WB to help build modern food warehouses

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WB to help build modern food warehouses

DHAKA, Bangladesh, March 9 (BSS) – The World Bank will help Bangladesh in constructing modern silos and food warehouses to raise food stock for food security in the country.

Besides providing assistance in repairing food godowns at the upazila level, the Bank also expressed its interest in giving
support to the social safety net programmes.

The World Bank showed the interest when its five-member delegation, led by Issbel Guerrero, called on Food and Disaster Management Minister Dr Abdur Razzak at his secretariat office here.

The food minister said as part of the social safety net programmes, about 71 lakh families are benefiting from VGF programme and the number of beneficiaries will be increased further. “More families are also getting benefits due to various programmes, including VGS,” he added.

“Rice will be given at a cheaper rate to the garment workers and the BGMEA will provide the number of workers,” Dr Razzak said, adding that it will be finalized after scrutiny by the ministry.

The food minister said the food stock in the country is adequate but it is not sufficient to tackle a big disaster.

He also laid emphasis on raising food stock side by side with increasing capacity of food godowns.

Dr Razzak thanked the World Bank for its assistance in disaster preparedness programmes and skill development programmes.

Praising the social safety net programme, the World Bank vice-president expressed the interest in providing support for the programmes.

Food and Disaster Management Secretary Mohammad Mokhlesur Rahman was present on the occasion.

The other members of the World Bank team were its Country Director Zhu Xian, Operation Adviser Tahseen Sayed, Senior Urban Specialist Zahed Khan and Special Assistant Catterine Vegnernon.

CellBazaar, a face of Digital Bangladesh

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CellBazaar, a face of Digital Bangladesh

A farmer uses CellBazaar to post his items. Photo: CellBazaar

Muzammel Huq

The concept of “Brand Bangladesh” has been discussed a lot in recent times — in seminars, articles and research. Bangladeshi technology entrepreneurs can be crucial in this effort. As a practitioner of micro-finance with a focus on bottom of the pyramid development via small and medium enterprises (SMEs), I am looking closely at the use of technology for economic empowerment. For the last three years I have been watching a fascinating initiative — CellBazaar, which can be an excellent example of “Digital Bangladesh” and is a part of the government’s vision for Bangladesh 2020. Originally designed as a classroom project at MIT, CellBazaar team has been working in Bangladesh for four years. CellBazaar service (http://www.cellbazaar.com) allows people to buy and sell over mobile phones or computers.

Anyone with a computer and internet, as well as 24 million Grameenphone users through their mobile phones are taking advantages of this service. Users can buy agricultural products, such as rice, fish, chicken, as well as large scale items like car, motorcycle, TV, fridge, apartment, land, etc. People can also offer services such as language tutoring (very relevant for migrants going abroad). The service is customer focused, who post items for sale, delete items after they are sold, and even adjust their own prices if they fail to get a buyer. For the first time, the producers of agricultural products can directly negotiate price with buyers and agro-processors. More than a million people have already used the CellBazaar service in Bangladesh.

The technology works on four synchronised platforms — SMS (send SMS to 3838 to buy and sell), WAP (easy, graphic interface), WEB (viewable by global audience), and IVR (call 3838 to hear latest items).

More new platforms are being added, as advanced mobile phones are becoming more common. As part of the Digital Bangladesh initiative, the government is looking at authorising m-commerce (that is money transaction through mobiles). When that occurs, CellBazaar will have a tested platform and a constantly growing user base that can be the first users of m-commerce.

The diversity of products that I have seen posted on CellBazaar indicates constant innovation and change. As the company grows and matures, it looks set to be the first digital start-up in Bangladesh history to receive global partnership interest. The project received the MIT “Ideas for Development” award, and it was also one of 25 recipients of Technology Award 2007 of Silicon Valley for applying technology to benefit humanity.

In 2008, the company received three major international awards — the GSMA in Spain (called “Oscars of mobile industry”), Telecom Asia in Thailand, and Manthan in India.

This month, I came to learn that the World Economic Forum of Davos has just selected the Bangladeshi founder and CEO of CellBazaar, Kamal Quadir, as a Young Global Leader (YGL) of 2009. Davos recognises and acknowledges outstanding young leaders from around the world each year for their professional accomplishments, commitment to society and potential to contribute to shaping the future of the world.

Other YGLs selected this year include Tiger Woods, Co-Founder of YouTube Chad Hurley, and Paula Santos of Brazil’s Vesta Technologies. Global leaders selected in previous years include Rahul Gandhi, astronaut Anousheh Ansari, and Josh Silverman, the technology guru who is the CEO of popular chat application Skype.

In the official Davos press release, Kamal Quadir is the quoted spokesperson: “I believe this will be a unique opportunity to engage with a community of thought leaders and captains of business, government and other sectors to share the challenges and opportunities faced by entrepreneurs, both working as start-ups and in partnerships with multinationals in emerging markets. The YGL community provides a global network of peers to seek solutions, so that we can collectively contribute to society.” I also note that CellBazaar was recently presented as a case study of technology for economic development at Clinton Global Initiative as well as UNCTAD.

Young entrepreneurs, such as the MIT Sloan trained CellBazaar founder, can be the poster children for Bangladesh to the global business media. I have always been fond of the story of YouTube. A globally celebrated technology success story after Google bought it for $1.6 billion. Less well known is the fact that the third co-founder is 27-year-old Bangladeshi origin Jawed Karim, a graduate student who made a fortune as the third-highest equity holder. Jawed already has a track record in technology as an early member of PayPal, which was bought by eBay. We need to leverage the global standing of people like Karim and Quadir.

Because I have an interest in micro-finance, SMEs, bottom of the pyramid development and technology, I come across entrepreneur stories such as CellBazaar. But now we must start grooming our brand ambassadors in a systematic fashion. This should be led by initiatives by the government, the media and the business sector. We need to choose the brightest young entrepreneurs among us, and leverage their global standing to bring in good attention to Bangladesh.

We must deploy our brand ambassadors to attract positive attention, good media, business interest, new partners and financial investment from the world. Individual success stories will drive this phenomenon, and therefore we must deploy those successful entrepreneurs as the frontline for Bangladesh’s message to the world. We are eager to be part of the global family of successful entrepreneurs.

That the future lies in Asia and elsewhere in the developing world is exhibited by Davos’ focus on Asia among its various programmes. It is also exhibited in a fascinating new book, “Billions of Entrepreneurs: How China and India Are Reshaping Their Futures — and Yours”.

The author is Harvard Business School Prof Tarun Khanna, who is another YGL. The conclusions I reach from his book’s many examples are quite optimistic for us. We are in the Asian century, and Bangladesh can have a seat at the table and a stake in the digital future. We can secure that space and establish our brand through global digital projects from Bangladesh such as CellBazaar.

Muzammel Huq, a political economist, is the founding managing director of Enterprise Development Company Ltd, which focuses on SME financing.

Accord signed: Rahimafrooz Globatt to launch operation by May

http://www.thefinancialexpress-bd.com/2009/03/10/60879.html

Accord signed: Rahimafrooz Globatt to launch operation by May

FE Report

Islamic Corporation for Development (ICD), private sector lending arm of the Islamic Development Bank (IDB) will provide US$5.30 million to Rahimafrooz, a leading local conglomerate, to set up a battery manufacturing plant in the country.

An accord was signed between ICD represented by its executive director Fawaz Abdul Nour and Munawar Misbah Moin, managing director of Rahimafrooz Globatt, the newest venture of the Rahimafrooz to this effect in the capital Monday.

This is the first time that ICD has extended financing support to a private sector company in Bangladesh.

The total cost of the battery manufacturing project is $14.5 million of which ICD will provide $5.3 million and HSBC $2.0 million.

“The interest rate comprised of LIBOR plus discount is now less than 5 per cent,” Mr Munawar said.

Rahimafrooz Globatt chairman Feroz Rahim said it is the newest venture of the group and it is expected to be operational by May.

The plant, located in Ishwardi export processing zone, has the capacity to produce 2.5 million units and it will be the largest battery export plant in South Asia.

The total turnover of the group is about Tk 1,400 crore with diversified operations and it is engaged in four major business domains – storage power, retail, energy and automotive after market, Mr Feroz said.

Executive director of ICD Fawaz Abdul Nour said he was happy to start financing in Bangladesh.

HSBC chief executive officer Sanjay Prakash said his bank would work in the area of increasing export competitiveness.

“HSBC has financed many exporters and would like to expand its operations in non-traditional export items,” he said.

Board of Investment executive chairman Kamaluddin Ahmed said the government has put much emphasis on private-public partnership.

Supermarkets to spread out

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Supermarkets to spread out

A woman shops for household products in a supermarket in Dhaka. The capital will see another 29 supermarkets this year

Sohel Parvez

Supermarket biggies have attempted a massive expansion drive this year to catch up more shoppers who still depend on unorganised wet markets to buy their essentials.

The rise in supermarkets, according to analysts, will diversify consumer choices and boost consumer spending needed for economic growth, while the wet markets will also witness an improvement in quality and services on increased penetration of supermarkets.

According to operators, 29 more chain retail outlets are expected to come up this year in an attempt to rope in more customers.

Major expansion drive has been taken by one of the leading local conglomerates, ACI. Its concern ACI Logistics is poised to open 17 outlets in the months to May under the brand name of ‘Fresh N’ Near’.

Meena Bazar is set to add five outlets this year to its existing eight, while Rahimafrooz Superstores will add four, and Nandan Mega Shop three in the same year.

“We feel that customers are ready because of changes in their lifestyle, preferences and needs. We want to offer a neighbourhood experience to consumers by opening more outlets,” said a senior official of ACI Ltd, requesting anonymity.

ACI, which made debut in chain supermarket business in mid-last year, has already opened three outlets, thanks to the enterprising spirit of a few big business houses that pioneered in bringing dynamism in the once-overlooked retailing of perishable and fast moving consumer goods.

Local businesses are set to expand branches at a time when some foreign investors such as Bangkok-based retail and hospitality group CENTEL wants to enter the segment.

But a decade ago, the trade was in the hands of thousands of small retailers in the wet markets and grocery shops in cities and remained out of the focus of business conglomerates.

The landscape began to change after 2000 as Rahimafrooz Superstores, operating company of Agora, began to catch up a slice of retailing and wholesale trade, which has been growing annually by more than 6 percent on an average and contributing over 13 percent to GDP since 1999-2000 fiscal year.

In the last eight years, many small and big supermarkets made debut in the trade to attract middle and upper middle class consumers, a section of whom are shifting to the chain stores from the wet or kitchen markets.

Now around 50 chain supermarkets are operating in Bangladesh, recording an annual turnover of around Tk700 crore, according to Bangladesh Supermarket Owners Association.

“Consumer confidence is increasing and that’s why many are planning expansion,” said Kazi Inam Ahmed, chief executive of Meena Bazar, a concern of Gemcon Group that operates through eight outlets with six in Dhaka.

Inam said five more outlets would be opened this year. “The whole business is based on volume. The more is the sales volume, the more is the possibility of making profit,” he said.

Supermarket operators said a rise in the organised retailing would offer consumers hygienic foods at competitive prices compared to those of unorganised retailers in the kitchen markets where commodities are sold mostly in unhygienic manner.

“It’s a business to connect consumers with better products and prices, and create a market for local manufacturers,” said Inam.

Mahmud Ur Rahman Shakeb of Nandan Mega Shop said the company plans to open three more stores this year to increase the number to six.

“It’s a good sign. Expansion of outlets will boost consumer confidence and help create market for manufacturers,” said Niaz Rahim, managing director of Rahimafrooz Superstores, which has now four Agora branded stores.

“Once the supermarket culture is established, commodity market prices will see stability,” he said.

Syed Ferhat Anwar, who teaches marketing at Institute of Business Administration at Dhaka University, said a rise in supermarkets would give consumers more choices and allow them to choose independently.

“It will increase consumption and help boost economy,” he said, “But the question is if the market is going to be saturated for too much increase in the number of supermarkets.”

Ferhat however said organised retail shops might lead to an improvement in quality and services in the wet markets.

sohel@thedailystar.net

Govt mulls massive industrialisation : Barua

http://www.newstoday-bd.com/business.asp?newsdate=3/9/2009#8960

Govt mulls massive industrialisation : Barua

Industries Minister Dilip Barua today said the dream of the present government is to industrialise the country, reports BSS.

The government is working for building an industrial-based economy from the trading-based one, he said at a meeting with leaders of Bangladesh Textiles Mills Association (BTMA) at his office here.

BTMA President Abdul Hye Sikder led a delegation of the association.

“We are passing through a transitional period of the trading- based economy,” the minister said.

It is possible to build a Digital Bangladesh by 2021 if an investment-friendly environment is maintained and political stability ensured, he said.

The government will provide allout support for the entrepreneurs, he said adding that when the government means more employment, it means more industrialization at first, as industries can create jobs.

He appreciated the entrepreneurs for their contributions to the textile sector. Although the country has to depend on import of cotton and machinery, the sector has been maintaining a steady growth due to the dynamic role of the entrepreneurs, he added.

The government will formulate an industrial policy with short, medium and long-term plans, he said urging all to uphold the interests of the country for collective benefits, not for individual benefits.

“The bank interest rates need to be brought down to single digit,” he said adding that at the same time due attention should be given so that the benefits of the banks are protected. Some prompt measures should be taken in this matter, he said agreeing to the demands of leaders of the textile industries.

The government would make an integrated plan with the recommendations of all stakeholders as well as economists, researchers and think-tanks, Dilip Barua said.

The BTMA president demanded of the government to raise alternate cash assistance up to 15 percent from the existing 5 percent.

He said the textile sector has made an investment of four billion euro, the highest for any single industry.

The sector is making 10.5 percent contribution to the country’s overall GDP and its shares 2 percent of total US dollar 650 billion global exports, the BTMA chief said.

The textile sector in the country can meet the total demand of fabrics for knit and 50 percent for woven, he said. He sought support of the government in the growth of the sector.

Huge foreign investment in construction sector likely

http://nation.ittefaq.com/issues/2009/03/09/news0723.htm

Huge foreign investment in construction sector likely

BSS, Dhaka

The international leaders have expressed their commitment to promote use of environment friendly materials in construction across the globe to present greener world for the posterity.

“At the end of our three-day high level Convention of International Federation of Asian and Western Pacific Contractors’ Associations (IFAWPCA) in Bangladesh where we have shared our experience took a pledge to build a greener world for our posterity,” the incoming president of IFAWPCA Herman H M Chen told BSS on Sunday.

The three-day convention, hosted by Bangladesh Association of Construction Industry (BACI) that ended on Saturday were participated by 270 construction experts and entrepreneurs including 220 foreigners from its 16 member countries.

The leaders of BACI, the local member of IFAWPCA, hoped that Bangladesh would witness huge volume of foreign investment in the construction sector as a follow up of this high level convention.

“After the convention we expect significant foreign investment will come to the country as the participated foreign delegates shown their keen interest to invest here,” the out going IFAWPCA President Engr Aminul Islam told BSS.

The convention helped to change the mind set of the prospective foreign investors who had no ideas about various existing investment opportunities in Bangladesh, he added.

Aminul said, a lot of small scale construction projects are being undertaken here which have a lot of potential for foreign investor.

“We may expect foreign investment in urban road construction to reduce the traffic congestion in the city,” he said. The member countries of IFAWPCA are Australia, Bangladesh, Thailand, Hong Kong, India, Indonesia, Japan, South Korea, Maldives, Taiwan, Malaysia, Nepal, New Zealand, Philippines, Singapore, Sri Lanka.

At the end of the convention, the builders of the 16 countries gave commitment to use environment-friendly quality construction materials at any development works for a greener world.

The out going general secretary of IFAWPCA Engr Mir Zahir Hossain said, the convention would encourage all the builders residing in the IFAWPCA member countries to carry out construction works in a more eco-friendly manner.

In the sideline of the convention, BACI organised a three-day international construction exhibition at Sheraton Hotel to showcase the activities and achievements of the local construction firm in the infrastructure development of Bangladesh.

The convention also decided that the 38th IFAWPCA convention will be held in Taiwan on April next year.

Advisory programme for textile industry launched

http://www.newagebd.com/2009/mar/09/busi.html#5

Advisory programme for textile industry launched
Staff Correspondent

An advisory programme for Bangladesh’s export-oriented textile industry was launched on Sunday with stakeholders agreeing on much needs of technical and management advisory.

Advisory Services for Textiles and Apparel of Bangladesh (ASTAB) is a new project, funded and managed by the United Nations Industrial Development Organisation and Bangladesh Quality Support Programme.

‘Bangladesh’s industry needs proper technical and management consultations which may boost up industry’s competitiveness further,’ said the textiles and jute minister, Abdul Latif Siddiqui, at the launching seminar on ASTAB held in Dhaka.

Professor Abul Barakat, chairman of economics department of the University of Dhaka, also general secretary of the Bangladesh Economic Association, presented the keynote paper at the seminar, detailing present state of Bangladesh’s textile industry.

Boro farming exceeds target

http://nation.ittefaq.com/issues/2009/03/09/news0722.htm

Boro farming exceeds target

BSS, Rangpur

An all-time record bumper Boro production is likely this year as the farmers have brought four percent more land than the fixed target under its farming programme in the country’s northern region.

The crop fields in the region are in greener looks everywhere, as the Boro plants are growing excellent under favourable climatic condition despite some erratic power supply, the farmers said on Sunday.

Officials in the Department of Agriculture Extension (DAE) told BSS that the farmers so far planted Boro seedlings in 16,32,500 hectares land against the fixed target of producing 66,59,361 tonnes rice from 15,69,209 hectares though the official plantation will continue till March 15.

The plantation achievement now stands at 104 percent, which is 4 per cent higher than the fixed target and the farmers will continue planting seedlings till the last official plantation date of March 15 after harvesting potato, tobacco and other crops, they said.

The farmers have engaged their all-out efforts and resources to respond to the call of the government led by Prime Minister Sheikh Hasina to make the current Boro farming successful to ensure food security in the country.

Farmers are working with their utmost dedication understanding that the government has given the maximum priority to an increased Boro rice production and subsequent crops onwards to make the country completely self-reliant in food grains.

They thanked the present government for reducing prices of the essentials and fertilisers and as per their expectations and also the same for diesel and the pro-farmer initiatives have encouraged them further in farming Boro and other s crops this season.While talking to BSS yesterday, farmers of the region thanked the present government for its maximum efforts to ensure smooth supply of fertilisers, pesticides, diesel, power, irrigation and all other necessary inputs to make the programme successful.

The agri-scientists and experts have also been providing necessary practical knowledge, experience, advice and assistance to the district and upazila level DAE officials and field level farmers for achieving the Boro production target. Accordingly the farmers have planted Boro seedlings in more lands within the first week of February, as the same will be harvested a month earlier with one tonne more production, noted agri-scientist Dr Abdul Mazid told BSS.

After getting proper knowledge from various training and awareness building activities conducted by the agri-departments at the grass roots, the educated farmers have been using Leaf Colour Chart and granular urea to ensure optimum use of urea in Boro fields.

An all-time record and bumper Boro rice production is expected this year in the region and the estimated rice production might be over 70 lakh tonnes for increased cultivation and more farming of hybrid variety of paddy, the experts said. The government has also ordered all concerned to timely complete the special steps taken by the government for smooth and successful Boro farming in larger scale aimed at ensuring increased food production in the country.

Because of the massive initiatives taken by the government, the farmers have cultivated hybrid variety Boro paddy on more land in all districts of the region this year that will definitely further increase the overall rice production, they added.

Talking to BSS Deputy Directors of DAE, Noor Mohammad, Hazrat Ali and Kamal Shariful Alam said special emphasis has been given to the latest technologies and using more quality hybrid seedlings to achieve a bumper Boro yield this year.

The government has been monitoring the progress and assisting all departments concerned to ensuring smooth supply of fertilisers, power, pesticides, irrigation and other agri- inputs to the farmers for achieving a total success in Boro farming.

If the climate remains favourable, a bumper Boro production is likely following the special steps taken by the government including use of the latest agro-technologies, smooth managements and providing timely facilities to the farmers this year, experts said.

Grameen forms jt venture with German company

http://nation.ittefaq.com/issues/2009/03/08/news0649.htm

Grameen forms jt venture with German company : BASF Grameen Ltd established for better nutrition and protection against insect-borne disease

NATION BUSINESS REPORT

BASF SE and Grameen Healthcare Trust on March 5 announced the establishment of a joint social business venture, according to a message received from BASF in Ludwigshafen, Germany.

Dr. Jurgen Hambrecht, Chairman of the Board of Executive Directors of BASF SE, and Dr. Muhammad Yunus, Nobel Peace Prize Laureate and Managing Director of Grameen Bank, signed an agreement in Ludwigshafen to establish a joint venture called BASF Grameen Ltd.

The purpose of the company is to improve the health and business opportunities of the poor of Bangladesh. BASF Grameen Ltd. will start by utilizing two products from BASF’s portfolio: dietary supplement sachets containing vitamins and micronutrients, and impregnated mosquito nets that offer protection against insect-borne disease.

Social commitment with an entrepreneurial twist

“Our social business joint venture is intended to empower people to take part successfully in business life,” said Hambrecht. “The more people who do so – be they business partners, customers or employees – the better the economic and social development of a country and its population. Investing in people’s entrepreneurial skills is therefore part of corporate responsibility.” Social business is a new business model for BASF. The idea is for a business venture to serve a social purpose, cover its own costs and recoup the partners’ initial investment. Any additional profits are reinvested fully in the company.

“BASF Grameen Ltd is not a charity. It combines business sense with social needs,” stressed Yunus.

According to the WHO World Malaria Report 2008, Bangladesh had an estimated 2.9 million cases of malaria in 2006 and 72 percent of the population is at risk of the disease. Bangladesh also has some of the highest child and maternal malnutrition rates according to the UNICEF State of the World’s Children Report 2008. Approximately 8 million children under the age of 5 years are malnourished.

“In the long term, we can better help these people through a business model that offers them beneficial products and services at affordable prices rather than through charitable donations,” said Yunus.

Microcredits to combat malaria and malnutrition

Given the substantial need for dietary supplements and mosquito nets, BASF and Grameen have decided to locate their joint venture with these two products in Bangladesh.

The joint venture will initially operate from the BASF’s site in Dhaka, the country’s capital. Alongside an initial investment of €200,000, BASF will contribute the funds for one million sachets of vitamins and micronutrients and 100,000 mosquito nets to the joint venture.

Grameen’s contribution includes its knowledge of the market, distribution structures and networks in Bangladesh.

In the initial stages, the dietary supplement business will focus on large consumers such as schools, and established distribution channels such as pharmacies. This will familiarize people with the benefit of the sachets as part of everyday nutrition and for healthy nutrition. In the medium term, the products will also be sold directly to end users via established Grameen networks. In towns, the impregnated mosquito nets will be sold in food stores, clothing stores and pharmacies. In rural areas, agricultural wholesalers will sell the malaria protection nets in association with the Grameen network and will also instruct purchasers in their use.

Grameen Bank plans to provide microcredits to support people in setting up their own distribution outlets and in funding the purchase of mosquito nets.

“Social business is an excellent way of creating value from values, and BASF is seizing that opportunity,” said Hambrecht. “Our market-oriented joint venture will provide long-term help in addressing social challenges in Bangladesh. In addition, it will allow BASF to explore new markets and customer groups.”

BASF is the first DAX30 company and the first chemical company in the world to set up a social business with Grameen.

Winter RMG orders buoyant

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Winter RMG orders buoyant

RMG makers are upbeat as international buyers are booking orders to buy winter clothes from Bangladesh at cheaper rates in signs of a Wal-Mart effect amid global recession. Photo: Viyellatex

Refayet Ullah Mirdha

International buyers are placing a substantial number of bookings to collect winter clothing from Bangladeshi companies at cheaper prices as the major competitors are losing markets to the country amid global recession, apparel exporters said.

Bangladesh has already turned into a lucrative destination for the buyers for its cheaper clothes.

The exporters said the flow of orders indicates that exports of readymade garments (RMG) would pick up from the next few months although the prices offered are low.

Some recent Indian newspaper reports also supported such indication, saying the major competitors are losing markets to Bangladesh for its cheaper production costs.

The reports said Indian garment manufacturers have already been adversely affected by a steep fall in demand from the US and European countries, and Indian garment exporters may lose out to low-cost competitors.

Garment exports from India showed no sign of pickup this autumn-winter season following a gradual shift of international buyers to low-cost neighbouring countries, the reports said.

Bookings for Indian garments dropped sharply although exporters slashed prices by 11-12 percent.

“Major global buyers like Wal-Mart, JC Penney, Li & Fung, GAP and Target have indicated plans to cut offtake from India by 12-15 percent this year, while they are increasing their offtake in neighbouring countries,” Rahul Mehta, president of the clothing manufacturing association of India, was quoted as saying in a report.

Garment exports from India would be lower than Bangladesh, Vietnam, Indonesia and Cambodia, the reports said.

India is expected to end up exporting garments worth $9 billion this fiscal year, down by almost 10 percent compared to a year back, while Bangladesh is poised to export worth $12 billion garments, the reports said.

Currently bookings for Indian garments are 20-25 percent lower than the same season last year and sentiments are weak because of a gloomy outlook of its textile industry.

“Our export target for the current fiscal year was $9 billion. But due to the present market condition, we will be able to close the year with exports of only $8-$8.5 billion,” Confederation of Indian Apparel Exporters President Amit Goyal said.

Meanwhile, top local RMG makers are optimistic about meeting the export target in the current fiscal year although exports of some other products from Bangladesh declined in July-December period.

Executive Director of Ananta Garment Ltd Badius-Salam said the flow of orders is still high compared to those of other competing countries.

“I hope to meet our targeted 15 percent sales growth this year. Last year the company exported products worth $26 million and this year it will increase,” Salam said.

“But the offered prices are too low,” he added.

A senior official of Opex Group, one of the leading apparel makers, said they have no problem with the flow of orders until now.

“But the problem is low price. The buyers are not offering higher prices for the recession. Now we are trying to make profit by increasing the volume for delivery,” the official said requesting anonymity.

Monir Ahmed, managing director of Abedin Group of Industries, also said orders are satisfactory now although he experienced a relatively low volume of orders in the last three months.

He also vented frustration over the low prices offered by the buyers.

Woven garment surpassed the export target by 2.45 percent, knitwear 2.16 percent, terry towel 10.96 percent and textile fabrics by 8.16 percent during the July-December period of the current fiscal year, according to Export Promotion Bureau.

Bangladesh exported woven garment worth $2.805 billion against the target of $2.738 billion, knitwear $3.240 billion against $3.172 billion, terry towel $66.39 million against $59.83 million and textile fabrics $41.63 million against the target of $38.49 million in the period.

The export trend shows that the target of exporting woven and knitwear worth $12.267 billion for the current fiscal year is quite achievable, exporters said.

reefat@thedailystar.net

S’pore-Bangladesh co to invest $4.793m for CETP in DEPZ

http://www.thefinancialexpress-bd.com/2009/03/06/60521.html

S’pore-Bangladesh co to invest $4.793m for CETP in DEPZ

FE Report

D-Water CETP Ecosystems (BD) Limited, a Singapore-Bangladesh joint venture company, will invest US$ 4.793 million for setting up central effluent treatment plant (CETP) in Dhaka Export Processing Zone (DEPZ).

In this connection, an agreement was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and the D-Water CETP Ecosystems (BD) Limited at the BEPZA

Complex in the city Thursday, said a press release.

BEPZA Member (investment promotion) Prasanta Bhushan Barua and D-Water CETP Ecosystems (BD) Limited Managing Director Jim Silverman signed the agreement on behalf of their respective organisations.

BEPZA Executive Chairman Brig Gen Jamil Ahmed Khan and other officials from the respective organisations were present on the occasion.

The company will invest the amount with an aim of treating 15,000-43,000 thousand cubic metres liquid effluent per day of the industries of the Dhaka EPZ.

They will establish central effluent treatment plant in a land area measuring 16000 square metres.

By installing this effluent treatment plant, the environment of Dhaka EPZ will be more pollution free.

The company will also create employment opportunity for 35 persons including seven foreign nationals.

Two more urea factories planned

http://www.newagebd.com/2009/mar/06/busi.html#4

Two more urea factories planned
Bangladesh Sangbad Sangstha . Dhaka

The industries minister, Dilip Barua, on Thursday told the parliament that the government had a plan to set up two more urea fertiliser factories in the country.

Replying to a question raised by treasury bench member Shahiduzzaman Sarkar, he said the industries ministry had undertaken a plan to establish a granular urea fertiliser factory named Northwest Fertiliser Factory with daily production capacity of 1,750 tonnes at Sayedabad in Sirajganj.

Besides, the industries minister said, a urea fertiliser factory named Shahjalal Fertiliser Factory with daily capacity of 1,750 tonnes will be set up in Sylhet.

Responding to a question from ruling party lawmaker AKM Fazlul Haque, he said there were 5,109 fertiliser dealers in the country.

Committee suggests Tk 200cr fund for shipbuilding

http://www.thedailystar.net/newDesign/news-details.php?nid=78481

Committee suggests Tk 200cr fund for shipbuilding

A locally-made ship is anchored off a river in Narayanganj. Shipbuilders seek Tk 500 crore in easy loans for the flourishing industry. Photo: STAR

Rejaul Karim Byron

A high-powered committee has recommended a Tk 200 crore fund for the shipbuilding industry to help it flourish.

The plan will enable shipbuilders to take loans at easy terms and low interest.

The committee, headed by Nazmul Huda, a deputy governor of the central bank, has made the recommendation to the government.

However, the Shipbuilders Association demanded a Tk 500 crore fund for this purpose.

In line with an official circular in January, the 14-member body has been assigned to suggest measures to create an atmosphere conducive to the development of the shipbuilding sector after a perusal of the issues tied to banking.

If the recommendation is executed, the Tk 200 crore Bangladesh Bank fund will refinance 50 percent of the loans to be paid to the shipbuilders by different commercial banks.

The highest rate of interest for such loans would be 11 percent.

According to the findings of this committee review, the shipbuilding industry as an export-oriented one is usually entitled to a working capital loan at an interest of 7 percent for a two-three month period, but the industry needs a long time — at least two years — to repay the loans.

The committee also recommended a relaxation in the existing qualifying terms for raising capital by a shipbuilder through initial public offerings. The present terms say a shipbuilding company will be able to go for such IPO if the company experiences at least a three-year efficient operation.

Another recommendation the committee puts forward is that shipbuilders should be allowed to keep reserved the 50-60 percent of the advance foreign currencies received against the sales or exports of ships in their own forex accounts.

The shipbuilders claim that they suffer losses in meeting their import bills because of variations in exchange rates, as they cannot keep foreign currencies reserved.

It also recommended that the Bangladesh Bank give necessary directives to the banks to fix commission for opening L/Cs at maximum 2 percent in case of the imports of raw materials for the industry.

The ship building industry is a growing industry in Bangladesh. The local value addition to the ship export trade is 40-55 percent.

The committee on the industry comprises Abu Reza Khan, member, Board of Investment, AKM Shafiullah, director general, Water Transport Directorate, Khalilur Rahman Siddiqui, joint secretary, Ministry of Industries, KBM Omar Faruq Chowdhury, director general, Export Promotion Bureau, Mohammad Abdul Hannan Zoarder, executive director, Securities and Exchange Commission, and Arfin Ara Begum, deputy secretary, Finance Division under the Ministry of Finance, and Kazi Mahmud Sattar, president of the Association of Bankers, Bangladesh.

Besides, some leaders of Ship Builders Association have also been included as member in the committee.