China to help expand ICT

http://www.theindependent-bd.com/details.php?nid=122214

China to help expand ICT
UNB, Dhaka

China will provide assistance to Bangladesh for expansion of its ICT sector and introducing e-governance for implementing the roadmap of building ‘Digital Bangladesh’ by 2021.

China is also keen to cooperate with Bangladesh in implementing its solar and wind energy projects and development of the country’s infrastructures, including construction of roads and bridges.

Chinese Ambassador in Dhaka Zhang Xianyi said this when he met Industries Minister Dilip Barua at his ministry office yesterday, said a handout.

During the meeting, they discussed bilateral issues with emphasis on raising joint investment in industrial sector of Bangladesh, development of communications infrastructure and energy security.

The Industries Minister said Chinese investors could invest in Bangladesh’s special economic zones set up to attract foreign investment.
He told the Chinese envoy that Bangladesh government always believes in ‘One China policy’.

Both the minister and the envoy also emphasised building Kungming-Chittagong road link for gearing up trade and economic activities between the two countries.
Zhang Xianyi said investment in Bangladesh’s industrial sector by Chinese entrepreneurs is increasing.

He said China is keen to invest in various ways, including construction of fertilizer factories, agro-goods processing units and pure water supply.

Local company manufacturing cheap refrigerators

http://www.newagebd.com/2009/apr/12/busi.html#7

Local producer offers cheaper whiteware
United News of Bangladesh . Dhaka

RB Group, a local refrigerator-manufacturing company, has offered its products at 20-30 per cent reduced rates compared to other imported foreign refrigerators.

‘The rate RB Group has offered is cheaper compared to any other refrigerators available on the market…’ said RB Group deputy director Mainul Haque.

He said RB Group had been maintaining a world-class standard as it exports its products to the world market as well.

RB Group has recently launched the commercial production of refrigerators at its large manufacturing plant in Gazipur.

The plant – Walton Hi-tech Industries – now produces about 6 lakh units of refrigerators against a demand for 4 lakh units across the country. About 2,500 workers are working in the plant, set up on 20 acres of land to meet the local demand and export abroad.

Company officials hope the Bangladeshi-made Walton refrigerators will go to Thailand, South Korea and some other African countries, including Sudan, from July next, as negotiations are on to make the export deals.

RB Group’s assistant director Mizanur Rahman said his group had been the first local company which started producing refrigerators and some other electronic goods.

‘We’re also producing motorcycles to meet the local demand.’

He claimed that Walton offered a 10-CFT refrigerator at Tk 20,700 while a similar size imported refrigerator is selling at between Tk 30,000 and 33,000.

‘We can offer a cheaper rate as our production cost is much lower because of some advantages… We’ve got cheaper labourers which has made it possible,’ he added.

Presently, Walton is marketing 12 models of refrigerators by its 600 exclusive outlets and also by vendors throughout the country.

Another seven models will come into the market next months. Each of the Walton outlets also provides service facilities to the customers.

Bogra seizes Indian market for irrigation equipment

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Bogra seizes Indian market for irrigation equipment

The picture shows centrifugal pumps made in Bogra. The district found India as a popular destination for exports of the irrigation equipment. Photo: STAR

Hasibur Rahman Bilu, Bogra

Centrifugal pump exports from Bogra are gaining popularity, as the sector provides irrigation equipment at competitive prices.

India has placed orders for 20,000 pieces of centrifugal pumps for the item’s export by December, according to the industry people.

“There is ample scope for the export of centrifugal pumps and other iron products to India, China and some other countries. However, we are not able to make products in quantities as per demand for now. Because we have some limitations, such as absence of running capital, modern equipment and government support,” said Ainul Haque Shohel, the president of Bangladesh Foundry Owners Association.

The trade body’s secretary, Abdul Malek, complained, “Following the media coverage, the government has reduced taxes from 15 percent to 7 percent for the sector. But the foundry and light engineering workshop owners have to bear additional taxes. VAT and other sources of government revenue from this sector is much higher, in comparison with India.”

The government should withdraw the VAT from the foundry sector to help the light engineering sector flourish and encourage the export of agro based equipment, he suggested.

Centrifugal pumps are exported to India at $18 to $20 per unit, whereas the same product in India is being sold at $88 each, according to Shohel.

According to a survey by the industries ministry, the Bogra based foundry and light engineering workshops meet 90 percent of the local demand for agricultural equipment.

The sector is now providing metal equipment for the garments, transport, textile, jute and other sectors, reducing import dependency, Malek said.

Azizur Rahman Milton, owner of Milton Engineering, said demand for centrifugal pumps has increased because of better quality and lower price of the products.

The industry sprang up about 24 years ago in the district of Bogra, which primarily produced pans and other iron made equipment.

The total turnover of the industry is now Tk 400 crore a year.

IBBL foundation training course for probationary officers ends

http://www.thefinancialexpress-bd.com/2009/04/11/63645.html

IBBL foundation training course for probationary officers ends

FE Report

The concluding ceremony of ‘Foundation Training Course for Probationary Officers’ of Islami Bank Bangladesh Limited (IBBL) was held at the Islami Bank Training and Research Academy (IBTRA) auditorium in the city recently.

IBBL executive committee (EC) Chairman Mominul Islam Patwary was present in the function as the chief guest, said a press release.

Chaired by Executive Vice-President (EVP) and Director General of IBTRA Md Jafar Ullah, the function was attended, among others, by EVP and Director (training) Md Azizur Rahman, senior vice-presidents Mahmood Ahamed and Md Mizanur Rahman, and vice-presidents Md Omar Faruk Khan, Md Saidur Rahman, Md Rokan Uddin and Mohammad Abdullah.

Mr Patwary said Islami banking is now an acceptable and popular banking system to all.

Islami Bank Bangladesh Limited is developing fast and it is the reflection of expectation of the common people of the country, he said.

The bank is achieving a lot of success every year in deposit, investment and profit, he added.

Steps to be taken to build another dry dock: Dilip

http://www.thefinancialexpress-bd.com/2009/04/10/63630.html

Steps to be taken to build another dry dock: Dilip

CHITTAGONG, April 9 (BSS): Industries Minister Dilip Barua Thursday said steps would be taken to build another dry dock with individuals capable of ship building in next four to five years.

He said industrialisation is essential for creating jobs and for this the government will go for setting up more industries in the public and private sectors.

To fulfil Prime Minister Sheikh Hasina’s election pledge of giving employment to a person from each family, the government will enact a suitable industrial policy for the balanced growth of industrial sector in the country, he added.

The minister was visiting the Chittagong Dry Dock Ltd (CDDL), an enterprise of Bangladesh Steel and Engineering Corporation (BSEC) at Patenga here and the country’s lone public sector vessels repairing unit, to see its working facilities.

Dilip Barua said necessary provision would be incorporated in the new industrial policy for the expansion of the CDDL so that it can produce quality vessels and upgrade its services to the clients.

Bangladesh high commissioner seeks JVs with Pakistan

http://www.dailytimes.com.pk/default.asp?page=200948\story_8-4-2009_pg5_14

Bangladesh high commissioner seeks JVs with Pakistan

Staff Report

ISLAMABAD: High Commissioner of Bangladesh, Yasmeen Murshed on Tuesday stressed need for joint ventures in jute, IT, energy, tourism, oil and gas and services sectors to gain maximum benefits from investment opportunities in each other country.

Addressing the businessmen here in Islamabad Chamber of Commerce and Industry, she said both Pakistan and Bangladesh have tremendous opportunities of enhancing cooperation in various sectors. Pakistani businessmen had shown keen interest in Bangladeshi jute sector while other areas of Bangladeshi economy also offer attractive trade and investment opportunities.

She said there was a need to enhance people-to-people and business-to-business level contacts to explore more areas of common interest in both the countries. Experts of both countries involving public and private sectors should sit together to sort out the non-tariff trade barriers between the two countries.

Speaking on the occasion the ICCI chief, Mian Shaukat Masud stressed for enhanced exchange of trade delegation to explore business opportunities.

Generators take local root

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Generators take local root

Sales of generators rise as outages hit the country. Local businesses are being involved in assembling and making parts of the power devices. Photo: STAR

Sayeda Akter

Sales of generators are rising on frequent outages and an electricity shortage in the country with local businesses increasingly getting involved in assembling and making parts of the power devices amid approaching summer.

In the last three months, around 11,000 units of generator were sold mainly in Dhaka and Chittagong, marking a rise of 25 percent compared to the previous year, said industry people.

This year traders predict that a strong sales trend will continue for several more months as industries, corporate houses and shopping malls are not seeing any immediate respite from the power crisis. So they are getting ready to invest sizable amounts in the business.

Although earlier the market for generator was totally import-based, now local companies are making some parts of generator and assembling the device.

The most commonly available generators in the local market are diesel-run with capacities ranging from 500 watt to 500 kVA (kilo volt ampere).

A 500-watt generator can run around 5/6 lights and two fans for two hours, while a 500-kVA (1kVA=0.8kw) generator has the capacity to run an RMG factory for three days.

A 500-watt generator usually costs Tk 20,000 in the local market and a 500-kVA gas generator Tk 1.75 crore.

Industry people said the demand for generators ranges from 500 watts to 300 kVA and these are mainly used for the commercial establishments, especially in the urban shopping malls and factories.

Currently, the total market size for generator is Tk 400 crore per year, they said.

Rahimafrooz is the market leader that imports finished generators as well as components and also makes parts to assemble complete devices.

“Usually the demand remains high in the summer, but this year the demand has started rocketing before the season, meaning we will have to struggle to meet the demand this time,” said KM Ali, chief operating officer of Rahimafrooz Energy Services Limited.

“We import finished generators and also open ones, which need canopies to turn those into soundproof units and carriers to hold the devices that we make locally,” he said.

He said Rahimafrooz imports generators intact with three main parts — engine, alternator and controller — and then attaches locally produced things to make those complete units and then markets the generators for both residential and corporate use.

He said his company also makes automatic transfer switch for generators that helps run a unit automatically when power goes off.

Ali said the customers of his company include industrial plants, real estate firms, hospitals, educational institutions, telecom companies, supermarkets, corporate houses and government establishments.

The company is the official distributor of Italian brand Pramac and imports both diesel and gas generators from Italy, Spain and Japan, he added.

Currently, Rahimafrooz holds around 40 percent of the local market share.

Around 10 other local and imported brands are also available on the market and around 50 small companies import and assemble diesel generators.

Ziauddin Abu Nasser, a senior executive at HS Enterprise, official distributor of Honda generators, said the main customers of generators are the shopping malls and offices.

Honda generators, which had nearly 20 percent market share last year, are mainly imported from Japan and the prices range from Tk 22,000 to Tk 85,000.

Generators are also assembled in the local light engineering sector.

Sakiba Engineering Works, a local light engineering products manufacturer at Dholaikhal in Dhaka, assembles diesel generators using old parts and attaching canopies and carriers.

Saker Ali, assistant director of Sakiba Engineering, said the cost of making these parts and then assembling locally help lower the prices of generators that mainly cater to the needs of small traders around the country.

However the industry people demanded that the government cut the diesel price so more people, including farmers, can afford generators.

“An affordable generator will not only help a farmer, but will accelerate the entire economic activities of the country,” the Sakiba official said.

sayeda@thedailystar.net

BB chief says country to achieve 6pc GDP growth

http://www.newagebd.com/2009/apr/09/front.html#16

BB chief says country to achieve 6pc GDP growth
Staff Correspondent

Bangladesh Bank governor Salehuddin Ahmed on Wednesday dispelled the country’s growth projection of 4.5 per cent this fiscal year forecast by the World Bank, terming it unrealistic.

Despite the fallout of the global economic meltdown, the central bank sticks to its earlier growth forecast at around 6 per cent in view of the trend of the national economy in recent months, he told a seminar at the Independent University, Bangladesh in Dhaka.

‘The industry has to grow at a minus rate to prove true the forecast of 4.5 per cent growth. Unless there is a disaster or earthquake, our economic growth will be around 6 per cent,’ the BB governor said while speaking on the impact of global recession on the Bangladesh economy.

He predicted a 5.6 per cent growth of gross domestic product, which was similar to the forecast by the Asian Development Bank recently, in the worst scenario.

The country’s GDP grew at 6.2 per cent rate in the 2007-08 fiscal year.

‘We are optimistic as we do not want to give any bad signal,’ the governor added.

Russia to give financial support to power sector

http://www.theindependent-bd.com/details.php?nid=121601

Russia to give financial support to power sector
UNB, DHAKA

Russia is ready to provide Bangladesh with financial and technological assistance in power sector, particularly in generating hydropower utilising river currents, as the country reels from a severe electricity crisis.

“It is possible to establish a number of small power plants with 10-20-megawatt capacity each utilising river currents by constructing low-height dams,” Russian

Ambassador Dr Gennady P Trotsenko said when he called on Prime Minister’s Adviser Dr Toufiq-e-Elahi at his secretariat office Wednesday.

During the meeting, they discussed assistance in different fields of power and energy sectors of Bangladesh and the envoy assured the help.

The Ambassador apprised the Adviser that a Russian delegation would visit Bangladesh next month for the feasibility study of a pilot project for generating hydropower.

Dr Toufiq said the government is determined to ensure diversification of energy resources.

“That’s why the government wants to generate power utilising all kinds of renewable energy resources, including gas, coal and nuclear power,” he said.

The Adviser also sought cooperation from Russia in rehabilitating the old power plants constructed by Russia, setting up a new 210mw unit in Siddhirganj and producing hydroelectric power.

“Russia will also give support in rehabilitating the old power plants in Bangladesh,” the envoy said.

The Adviser thanked him for his country’s support in establishing nuclear power plant.

Govt mulls setting up of separate Engineering industrial park

http://www.thefinancialexpress-bd.com/2009/04/08/63437.html

Govt mulls setting up of separate industrial park

FE Report

Industries minister Dilip Barua said Tuesday the government is actively considering setting up separate industrial park for the country’s booming light engineering sub sector.

He was addressing a workshop on problems and prospects of light engineering industry as chief guest at a city community centre.

The programme was organised by Small and Medium Enterprise (SME) Foundation in collaboration with Bangladesh Light Engineering Owners Association (BLEOA).

“We are finalising industrial policy. Under the policy, separate industrial parks will be set up for the light engineering, automobile engineering and sub contracting sub sectors,” Mr Barua said.

He said the work for building separate industrial zones for the pharmaceuticals and plastic goods manufacturers has already started to give a boost to the potential sectors.

“I personally think that there is necessity for setting up separate industrial zones for the potential sectors to ensure a balanced industrialisation in the country,” he added.

He said: “We hope the industrial parks will be implemented shortly.”

BLEOA President Abdur Razzak told the FE: “We have already earmarked an area for installing a separate industrial park for light engineering industry at Keraniganj area. We want it under public private partnership.”

Software exports grow 67pc in July-January

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Software exports grow 67pc in July-January
Star Business Report

Staying immune from the ongoing global meltdown, the local information technology industry witnessed a 67 percent rise in exports during the first seven months (July-January) of this fiscal year, compared to the same period a year earlier.

The IT-enabled service makers fetched $19.75million from exports during the time, which was $11.77million last fiscal.

Software exports in the entire FY 2007-08 reached $24.82million. Industry insiders consider the year 2007 as stagnant for them like other industries because of the political uncertainty prevailed at that time.

“After passing a poor export performing export year, the industry started recovering from mid-2008,” said Habibullah N. Karim, president of Bangladesh Association of Software and Information Services (BASIS).

The software industry contributes two-thirds to the total export of IT-enable services. Newly introduced call centres, graphics, data entry, animation and data processing companies are on the lists for the rest of the foreign exchange earners.

Karim said the on-going global meltdown partially affects the outsourcing industry. “As the big multinational corporate houses are in a crisis, local firms have to struggle managing outsourcing,” he said.

The BASIS president however asserted that other IT-related industries remain far-from-affected by the global recession. He pointed to the fact that Bangladesh’s IT companies are doing very low-end works for the global market.

In Bangladesh more than 300 IT-enable companies are producing services for both local and foreign markets.

Among them 100 companies are exporting their services to more than 30 destinations, mainly US and EU, in the global market.

The BASIS chief feels that an IT park should be set up as early as possible in the country. “An IT park could be a flagship of the country’s ICT sector by which foreign investors and outsourcing companies would be encouraged to work with Bangladesh IT professionals”.

Deal signed for $ 11.26m motor vehicle industry

http://www.thefinancialexpress-bd.com/2009/04/07/63292.html

Deal signed for $ 11.26m motor vehicle industry

FE Report

Britain-Bangladesh joint venture company, 3G Engineering Limited, is going to establish an old motor vehicles re-manufacturing industry in Mongla Export Processing Zone, says a press release.

This joint venture company will invest $ 11.266 million in setting up their unit and will produce reconditioned motor vehicles.

The company will also create employment opportunity for 206 Bangladeshi and 10 foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and 3G Engineering Limited at BEPZA Complex in the city Monday.

BEPZA Member (investment promotion) Prasanta Bhushan Barua and 3G Engineering Chairman Abdul Jahan signed the agreement on behalf of their respective organisations.

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

SIBL to open 14 more branches this yr

http://www.thefinancialexpress-bd.com/2009/04/07/63294.html

SIBL to open 14 more branches this yr

Mehdi Musharraf Bhuiyan

Social Investment Bank Limited (SIBL), a private Islamic bank has embarked on its second consecutive year of massive expansion as the second generation private commercial bank is set to open 14 more branches countrywide in 2009.

In addition, the bank is also looking to set up five more SME Centers all around the country during the same time frame, the bank authority informed.

“We have obtained approval for the opening of 14 new branches along with five more SME centers earlier at the beginning of this year and hoping to complete this expansion by the end of 2009,” Abu Sadek Md. Sohel, Additional Managing Director of SIBL told The FE recently.

This sounds rather an ambitious turnaround for the Islamic bank after it was listed as a problem bank in October 2005 against the backdrop of signing Memorandum of Undertaking (MOU) with Bangladesh Bank and its subsequent failure to make good the adjusted capital shortfall, provisional shortfall as well as downsizing the higher percentage of classified investment.

Since then however, it has bounced back significantly by adopting various strategic planning while obtaining approval for issuance of 1:1 rights share offer from Securities and Exchange Commission (SEC) in the mid-2007.

Consequently, the Bank came out of the problem bank list by the end of that year and the succeeding annum of 2008 saw the opening of 4 new branches along with 5 SME centers following three consecutive years of stagnation when no expansion took place.

The upcoming expansion would increase the Bank’s number of branches by one and half times to 42. Currently, it works through 28 branches countrywide, 18 of which is situated in Dhaka metropolis.

“This expansion would begin with the opening of our 29th branch at Mohammadpur in the city by the turn of the next month (May), followed by another addition at the Lohagora of Chittagong at around the same time,” Abu Sadek said.

“Initially, we are opting to establish five to six branches by the end of this June and hopefully all the 14 branches would be operational by September,” Abu Sadek said, adding, “while the five SME centers would take time till November to kick off”.

“Eight of these 14 branches would be situated in the rural areas while three of them would be set up in district towns,” Sadek said. “Out of the remaining three, two of them will be based in Dhaka metropolis and one at the port city of Chittagong,” he added.

“Dhaka, Chittagong, Cox’Bazar, Comilla, Chandpur, Narayanganj and Sattkhira are the districts where these 14 branches will be situated,” he informed.

“However, no decision has been made yet about the possible location of the five new SME centers,” he added.

The expansion came against the backdrop of reviving year for SIBL in 2008 when the bank downsized its Classified Investment to 4.38 percent compared to 4.93 percent in 2007.

The bank made an operating profit of Tk.787.4 million in 2008, a whopping rise of 63.77 percent from the previous year.

Meanwhile, deposit of the bank, listed in the country’s bourses since 2000 grew by 22.65 percent and stood at Tk. 2409.98 million. Investment increased similarly at a rate of 21.35 percent from the previous year to Tk. 19951.30 million.

Paid up capital of SIBL in 2008 rose to Tk 1.30 billion from Tk 1.119 billion in 2007.

RAK Group to set up JV with Malaysian Mosfly

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RAK Group to set up JV with Malaysian Mosfly
Business Desk

RAK Group has signed an agreement with Mosfly, a Malaysian company and a member of the MAYA Group, at a ceremony held at the RAK corporate office in Dhaka recently.

Under the agreement, a joint venture company named RAK Mosfly (Bangladesh) Private Limited will be formed to produce a range of household products to cater for local market and also to export to other countries, said a news release.

Mosfly will provide all necessary technological support to set up a state of the art manufacturing plant in Habiganj for the newly formed company.

SAK Ekramuzzaman from RAK Bangladesh and YF Chang from MAYA Group signed the agreement while senior officials from both sides were present.

Export value of primary goods up by 14pc

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Export value of primary goods up by 14pc
Bangladesh Sangbad Sangstha . Dhaka

Financial experts have expressed satisfaction over the increase in value of Bangladeshi primary goods by 14 per cent in the global market.

‘In the present tough time, the trend is more than satisfactory, but it should be maintained with the government cooperation,’ former managing director of Sonali Bank Mohammed Hossain told the news agency on Monday.

He said a coordinated effort should be developed to increase export value and quantity of Bangladeshi export products in the global market.

Mohammed Hossain, also a leather and jute financing expert, said the price rise of raw materials and agri-products in the global market was satisfactory. But, to maintain exports of jute, leather and shrimp, vigorous official support is needed.

Export Promotion Bureau said the total export earnings from July 2008 to February 2009 stood at 10,353.58 million US dollars against the target for 10,437.52 million dollars which is 15.90 per cent more than that of the corresponding period of previous years. But the amount is short by 0.81 per cent from the target.

Experts, however, say in comparison with the magnitude of the global slump, Bangladesh is still showing its tenacity to remove difficulties faced in the export market due to the global slump.