Denim makers on a roll as new rules fall into place

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Denim makers on a roll as new rules fall into place
Refayet Ullah Mirdha

Businessmen are putting sizeable investments in the denim sector to cash in on the emerging prospects worldwide, thanks to the relaxation of trade rules and shifting of orders from China.

The industry owners are either expanding their capacity or setting up new plants as demand for denim products went up following a change in the fashion trends.

Previously, the majority of denim apparels were menswear and for winter season, but with the changing scenario, denim items are now made for men, women and children, and for all seasons, they said.

The relaxed rules of origin (RoO) by the European Union (EU) under its Generalised System of Preferences (GSP) opened up new opportunities for the denim sector, manufacturers said.

Under the new GSP rules, effective from January 1, exporters will get zero-duty facility even if the products are made from imported fabrics. Previously, the exporters used to get this benefit if only local fabrics were used.

The demand for local denim will rise due to such flexibility in GSP rules. Till now, the garment makers were importing fabrics from China, India, Pakistan and Indonesia, costing at least 45-day lead-time, experts said.

If the Bangladeshi garment makers get the fabrics from the local market, they will not import at higher costs, lead-time and freight charges, they added.

At present, 21 domestic denim makers supply 40 percent of the demand, while the remaining 60 percent is imported. On an average, every factory has a production capacity of six lakh yards per month.

Managing Director of Partex Denim Showkat Aziz Russell said he is investing another Tk 350 crore to raise the production capacity from 2 million yards per month to 4.5 million yards.

The relaxed RoO have both pros and cons, as the garment manufacturers will get zero-duty facility either way under the new GSP rules. “But, we have the advantage of lead-time now,” Russell said.

Syed Mohammad Kamruzzaman, a marketing executive of Ha-Meem Denim, said they will start production in the expanded unit of its Mauna factory, which has doubled its capacity to 1.7 million yards from 8.5 lakh yards per month.

The company invested Tk 100 crore for the expansion, he said. “We are waiting for the government’s permission for new gas connection. We hope to start production from June or July,” he added.

Obaydul Hoque, an adviser to Silver Denim Composite Ltd, said they are setting up a Tk 300 crore factory to produce eight lakh yards of denim fabrics per month, and will go for production within a year.

“The relaxation of the GSP rules is an added advantage. But we are predicting better future of denim in Bangladesh due to the China factor. Bangladesh will enjoy the advantage of lead-time in the demand driven market,” he said.

Hoque said the demand for Bangladeshi textile products is increasing since China, the largest apparel supplier in the world, is shifting its attention to other industries. Bangladesh is a good place for international buyers for its relatively lower production cost, he added.

In September last year, Nitol Group signed an agreement with Arvind, the largest denim company in India, to set up an 80:20 joint venture plant in Bangladesh under Comilla Export Processing Zone.

The investment will be about $69 million over a period of three years. In the first phase, a plant of 10 million-metre capacity will be set up at about $25 million and then it will be scaled up gradually.

Foreign investment is coming in the denim sector because the country has ready consumers and it enjoys the GSP facility to EU. Bangladesh exports products worth over $6 billion a year to EU, of which 90 percent are garment items.

Executive Director of Centre for Policy Dialogue (CPD) Mustafizur Rahman said the peaking demand should depend on competition. “If we can supply denim at a competitive price then the demand will increase obviously,” he said.

Although the backward linkage industries will face competition due to the EU move, Bangladesh has the advantage of reduced lead-time and transportation cost, he added.

Zillul Hye Razi, trade adviser to EU trade delegation to Bangladesh, said many more denim factories will come into production in the near future.

“If we can supply quality fabrics at a competitive price, the manufacturers will not go to other countries because Bangladesh will enjoy lead-time facility here,” Razi said.

Abdul Hai Sarker, former president of Bangladesh Textile Mills Association, said in the long run there will be a negative impact on local backward linkage industries’ growth in the textile sector.

“The backward linkage industries would be at risk because the manufacturers will get zero-tariff benefits if they make garment from the fabrics of other countries,” Sarker said.

Jahangir Karim, a teacher of a fashion and design institute, said now denim jeans for both men and women are in the market. “The denim products match almost all designs now and they are made for all seasons,” Karim said.

Jalal Ahmed, vice-chairman of Export Promotion Bureau, said in fiscal 2009-10 Bangladesh exported knitwear worth $4.71 billion and woven garment products worth $2.47 billion to EU. During the same period the country exported knitwear worth $891 million and woven garments worth $2.73 billion to the US.

“We are expecting a higher growth of both knitwear and woven garment to EU from now because of the latest EU move on GSP,” Ahmed said.

reefat@thedailystar.net

RMG sector earning may reach $30-35b in 4-5 yrs

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RMG sector earning may reach $30-35b in 4-5 yrs
FE Report

The earning from garment sector may be taken up to US$ 30-35 billion in the next 4-5 years by ensuring power, infrastructure and port facilities, and maintaining law and order situation, said FBCCI President A K Azad.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) chief said the local RMG industry’s growth was 40 per cent last year, and it will start increasing significantly within a short time. For this the government has to ensure logistic supports for the sector.

He said these at the inaugural ceremony of International Apparel Machinery, Fabrics and Accessories Tradeshow of Bangladesh at Bangabandhu International Conference Centre in the city Wednesday.

The three-day fair was jointly organised by Zakaria Trade and Fair International and ASK Trade and Exhibitions Pvt Ltd. It will continue from January 12 to 15, and as many as 150 companies from 24 countries will display their products at the 10th edition of Garmentech Bangladesh and IFA Sourcing Fair.

Industries Minister Dilip Barua was present as the chief guest of the programme.

Frozen snacks exports perk up

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Sown & Reaped
Frozen snacks exports perk up

Photo: Amran Hossain

Sohel Parvez

The export market for frozen snacks has opened up in the past couple of years thanks to the Bangladeshis staying abroad who crave the taste of native snacks.

In the past three years, export earnings from frozen snacks, such as paratha, singara, samocha, dal puri, and alu puri, have grown more than seven times to $2.38 million in fiscal 2009-10, compared to fiscal 2007-08, according to Bangladesh Agro Processors’ Association (BAPA).

Exporters linked the rise to growing demand among Bangalees and the entry of some new firms in Europe, the US, Australia and the Middle East. The entry of some new firms like Sabjiana Ltd and IBCO Food Industries Ltd, also buoyed exports earnings from snacks.

“The demand for frozen snacks is very high as people staying aboard want to taste local snacks,” said SM Masud Rana, group brand manager of BD Group, which makes and exports various processed foods and spices.

Sabjiana Ltd, a concern of BD Group, has been exporting frozen snacks since 2007. “We received very good responses,” said Rana.

The company exports various types of paratha, singara, puri and potato chop, mainly to the Middle East, UK, Italy and Australia.

In addition to these destinations, frozen snacks have also made their way into markets in North American, exporters said.

“We mainly export to the US,” said Samad Choudhury, chief operating officer of

Golden Harvest Agro Industries Ltd.

The company has been exporting frozen vegetables and snacks since 2006.

Choudhury said frozen snacks account for 40 percent of our export basket. “Demand for our products is high among ethnic people. They are opening the opportunity for us to enter the cross-cultural food markets.”

“It’s a trillion-dollar-market worldwide,” said Choudhury. “We see huge market potential.”

A factor behind his forecasts on wider export market is the rise in the number of Bangladeshis and South Asian people abroad. “At the same time, people worldwide are showing interest to cross cultural foods.”

sohel@thedailystar.net

Dhaka, Thimphu trade to go up to $100m, hopes Bhutanese PM

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Dhaka, Thimphu trade to go up to $100m, hopes Bhutanese PM

Unb, Dhaka

Visiting Bhutanese Prime Minister Jigmi Y Thinley hoped that bilateral trade could go up to US $ 100 million from current US$ 30 million in the next few years.

In an interview with the news agency at his Sonargaon Hotel suit on Tuesday night Thinley said, “We both the sides see the possibilities of very rapid expansion of bilateral trade going up to US $ 100 million within next few years,”

“We are also looking at trade in services.”

Thinley said Bhutan can also take advantage of Bangladesh’s human resources-professionals, skilled and semi-skilled people to develop their infrastructure, industries and information technology.

Asked how many doctors Bhutan is planning to recruit from Bangladesh, he said it would be nice if 25-30 doctors could be recruited on yearly basis for the next three years. Some of these doctors will be highly specialised and some general doctors with 5 years’ experience.

Asked whether the theory of Gross National Happiness (GNH) can be applicable for Bangladesh as well, Thinley said many of the programmes of the Bangladesh government are creating conditions for pursuit of happiness and enabling people to be happy.

BSS Adds: The Bhutanese premier said the geographic features that made his country landlocked would not obstruct Thimphu’s connectivity or cooperation particularly in energy sector with Bangladesh.

He told the state-run news agency in the interview with the private news agency.

Thinley, who earlier assured Hasina of extending cooperation in the hydropower sector, said his country expected to reach a deal “as soon as possible” on energy cooperation but right this moment it was “over capacitated” with its pledges to India in exporting electricity.

Asked about the trade or business relations, he said the two sides already have identified many tradable goods, as “there are so many complementary items.

“For instances, I can tell you Bangladesh can export vegetables to Bhutan during winter months (when extreme cold hampers production in Bhutan) while we can export vegetables to your country in summer months,” he said.

The Bhutanese premier also suggested the tour operators of the two countries to attract western tourists to visit the mountainous kingdom and Bangladesh under a single trip.

Thinley called Bangladesh’s offer to Thimphu in using its port facilities as a gesture of “largeness of heart and sympathy” for the landlocked “smaller neighbour” like Bhutan and said “it would be extremely useful” for his country.

“We will be sending a team of experts to study how best Bhutan can avail the facilities immediately and in future,” he said.

He also stressed exploring more trade routes between the two countries beyond the existing only route through Fulpur frontier.

Youngone chairman explains how Bangladesh can take apparel exports to $30b

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Seize the day or lose
Youngone chairman explains how Bangladesh can take apparel exports to $30b

Kihak Sung

Sajjadur Rahman

Bangladesh might double its apparel exports to $30 billion within three years, but limited capacity and a poor business environment could foil the opportunity, said Kihak Sung, chairman of Youngone.

The Youngone boss talked about Bangladesh’s export potential, in a recent interview with The Daily Star at his Uttara home. He spoke about the speculation of restricting foreign investment in the RMG sector, Bangladesh’s move for duty- and quota-free access to the US market and Korean Export Processing Zone in Chittagong.

Relaxation of generalised system of preferences (GSP) rules by the European Union and access to East Asian markets can become a major springboard for Bangladesh’s garment exports.

“Garment exports to Europe may double to $14 billion due to flexible GSP rules. Another $4 billion income is possible from exports to East Asian countries,” said Sung.

Sung is optimistic, particularly about the export potential in South Korea, Japan and China. However, it will not be easy for Bangladesh to cash in on the opportunity, he said.

Downside risks lie with four core areas: energy constraint, labour issues, port capacity and general law and order situation.

Seoul-based Youngone, the largest manufacturers and exporters of readymade garments in Bangladesh, had a business turnover of $1.2 billion in 2010. Nearly half — 45 percent — of it came from Bangladesh operations.

Youngone started business in Bangladesh in early 1980s and presently, it has 47,000 employees with some 4,500 in officer rank. Ninety-nine percent of them are locals as the company’s philosophy is to run enterprises by local people.

Sung said Bangladesh has an excellent opportunity to increase its garment exports in few years. Besides Europe, he sees East Asia as a major export destination as China gradually shifted to high-end products from low-end ones.

The European Union relaxed rules for the least developed countries (LDC) under GSP in textile trade. The new rules of origin (RoO), effective from January 1, allowed most apparel items from all LDCs would get duty-free access, no matter where the raw materials originated.

Korea has recently allowed Bangladesh duty-free export of some items including jackets. More items will follow, said Sung who is believed to be the main architect behind this duty free access.

“If four issues are resolved, at least reasonably, Bangladesh will have an enormous export opportunity.” They must be addressed simultaneously without specific prioritising, he noted.

Without building capacity in the areas such as energy and infrastructure, including ports, Bangladesh might lose the chance to its competitors, he added.

“The energy problem is looming over and disrupting business seriously,” said Sung. The unnecessary delay in the port cause huge business losses.

On the issue of minimum wage, Sung said: “It’s not enough, but agitation cannot ensure it.” He said his company gives Eid bonuses, rice subsidy and medical services for the workers.

About the recent agitation at Youngone factories in Chittagong, he said the company wanted to merge rice subsidy with the wages, but workers misunderstood it as a cancellation move.

Sung, a Korean national, blamed outsiders for the agitation. “Ninety percent of the agitators were outsiders,” he claimed.

Youngone invested Tk 130 crore to develop Korean EPZ in Chittagong, but the government took almost one decade to issue permit. In the meantime, he shifted some of his planned factories to China and Vietnam. The EPZ, if developed, would employ some 50,000 workers.

Foreigners were given special facilities at the EPZs in Bangladesh so that they would transfer technology and their skills to Bangladeshis but some raised questions about it.

He said technology has been transferred and it is one of the main reasons for flourishing apparel factories in Bangladesh. “Some 50 Bangladeshis run our factories in Vietnam and another five work in China,” he added.

However, the garment maker hailed local entrepreneurs for their relentless efforts to go forward amid lot of limitations.

Restricting foreign investment in garment sector in Bangladesh will not be a wise decision, Sung said. It will give bad signals to the global markets, he added.

The Youngone chairman said it is very unlikely that Bangladesh would get duty- and quota-free market access to the US, which he believes cannot negate the same facilities to Africa, Jordan and Israel.

sajjad@thedailystar.net

Home textiles make a comeback

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Ready Made Garments
Home textiles make a comeback
Refayet Ullah Mirdha

The export of home textiles is on the rebound with the western world making a recovery from the global financial recession.

Manufacturers are expecting hefty profits as orders from international buyers soared with the changed economic situation.

Recovery came with a bang when the sector earned $296.01 million in July-December, registering a 77.75 percent growth from the same time last year.

The home textile export target fixed for fiscal 2010-11 is $563.50 million. Earnings amounted to $402.49 million in the year before.

Industry insiders said even in July of the current fiscal year, the export of the item witnessed a decline of 10 percent for an economic dip in the western world.

But in recent months, home textile exports surged, industry insiders said.

Nurul Afsar, company secretary to Noman Group, one of the largest home textile makers in Bangladesh, said demand for home textiles in the West increased significantly with recovery from recession.

“We are receiving plenty of orders from international buyers. But, prices of the item are still low even after the prices of raw materials have gone up worldwide,” Afsar said.

Noman Group exports goods worth more than $15 million a month, but the profit margin is narrow nowadays, Afsar said.

IKEA of Sweden, Heritage of Canada, Jionmax of Germany, Asda of UK and Carrefour of France are the group’s major buyers, he said.

A senior official of IKEA said the export of home textiles increased mainly because of an increase in the value and volume of products.

“The price of home textiles increased by 30-40 percent over the last few months because of a hike in the prices of raw materials,” he said, requesting anonymity.

Moreover, international buyers are shifting to Bangladesh from China and Pakistan, the two major destinations for home textiles, because of the price hike over high production costs.

He said the devastating floods in Pakistan last year damaged the cotton crop as well as the industry. “As a result, buyers are shifting to Bangladesh to meet the growing demand for the item in the western world,” he added.

According to Bangladesh Textile Mills Association, more than 469.7 million metres of home textiles are now produced a year.

reefat@thedailystar.net

$2.93b Padma bridge okayed

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$2.93b Padma bridge okayed
Cost doubles in three years

FE Report

The government Tuesday approved a 205.07 billion taka (US$2.93 billion) bridge over the river Padma, raising its construction cost to nearly twice the estimate made three years back.

The country’s highest project approval body led by Prime Minister Sheikh Hasina okayed the revised cost in an effort to kick-off the work of the Bangladesh’s costliest project later this year, officials said.

The body, Executive Committee of the National Economic Council (ECNEC), had approved a 101.62 billion taka budget for the 6.15 kilometres long rail-cum-road bridge in August 2007.

But the cost has been revised due to soaring prices of construction materials in the global market, a larger-than-expected spike in resettlement budget and complex engineering of the project, communications ministry officials said.

The bulk of the cost will be funded by credit from development lenders such as the World Bank, Asian Development Bank, Japan and Islamic Development Bank. Construction is expected to complete in 2014-15 financial year.

The government took up the ambitious Padma Bridge building scheme to connect the country’s impoverished southwestern region with the more-developed central and eastern parts.

A World Bank report has said the planned bridge would boost the country’s gross domestic product by 1.2 per cent, revive the fortune of the ailing Mongla Port and cut poverty in the poorest south-western districts.

The report said pace of poverty alleviation in the country’s 20 odd southwestern districts, where level of hunger is five per cent higher than the national average, would speed up once the bridge is built.

Of the $2.93 billion, the four development partners will lend $2.36 billion with the World Bank pledging $1.20 billion, ADB $615 million, Japan $400 million and the IDB $140 million.

The rest will be financed from the government’s tax revenue, an official of the communications ministry said.

The ECNEC also approved a 37.80 kilometres long land port connecting road scheme in southern district of Feni, which will facilitate cross-border trade with northeastern Indian states.

The Baruierhat-Heako-Ramgarh land port road, which links southeastern Bangladesh with the Indian state of Tripura, will cost 2.04 billion taka. It will be financed from the one billion dollar Indian soft credit.

A top government official said the Tripura state government would construct part of the road linking the Indian land port of Sabrum with Bangladesh’s border point of Ramgarh, situated on the bank of Feni river.

Seven north-eastern Indian states would use the planned road to access Chittgaong seaport, he said, adding it would spur trade between the two nations.

The ECNEC in its meeting in Dhaka also endorsed five other projects valued at 18.09 billion taka.

They include 10.78 billion taka Chittagong Water Supply Improvement and Sanitation project, 780 million taka gas supply scheme in Chandpur, a 150megawatt power plant and 4.25 billion taka sewage treatment plant at Dasherkandi.

Govt eyes 2,000MW more power this year

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Govt eyes 2,000MW more power this year
Sharier Khan

While the government scored a record of signing dozens of deals for generating around 3,000 megawatt power last year, this year it aims at making another record: adding more than 2000MW electricity to the national grid.

If successful, this would increase Bangladesh’s power generation capacity by nearly 50 percent. While this would significantly reduce the ongoing power crisis, there would still be some shortfall.

Chairman of the Power Development Board (PDB) Alamgir Kabir told The Daily Star that if all goes well, the level of load shedding would be strikingly low by the end of this year.

Plus, this additional power generation would not put any pressure on the natural gas supply as most of the new power plants will operate on fuel oil, he said.

Gas has been the main source of power generation till now, and its crisis has affected power generation.

On the negative side– the country’s oil import cost is expected to shoot up significantly. When all of these new oil-based power plants would launch operation, these are expected to consume 1.9 million tonnes of diesel and heavy fuel oil a yearthus almost doubling the country’s petroleum import cost, according to an estimate of the PDB.

In addition, there had been questions of how the Bangladesh Petroleum Corporation (BPC) would be able to store and transport so much petroleum overnight through rail and river systems.

The PDB itself has funded a Tk 27 crore project for the Bangladesh Inland Water Transport Authority to dredge the rivers in Gopalganj and Daudkandi where poor navigability would jeopardize year-round transportation of petroleum. The other river routes will not dredging for now.

The PDB invested another TK 50 crore with the Bangladesh Railway to for upgrading some rail tracks and tank wagons that would carry the additional petroleum.

Seventy percent of the additional fuel would be transported through the river routes and the rest through the rail system.

Meanwhile the BPC is increasing its storage capacity. The BPC would also turn to the private sector to store the additional oil at times, sources said.

About half of these new power deals signed last year are rental power projects. These are short term solution with contract period not exceeding five years. The government chose these as a quick solution to minimize load shedding in the upcoming lean seasonwhen power demands will shoot high for the purpose of irrigation.

Of these rental power projects, a few have already launched operationswhile several have failed to meet deadlines.

“But we are expecting that by April, most of the rental power projects would be able to launch their operations. These will reduce the load shedding during that period,” the PDB chairman added.

By September next, the PDB expects to have several hundred megawatts of base load power generation.

By next year, the government aims at achieving zero load shedding.

Shipbuilders for backward linkage industries

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Shipbuilders for backward linkage industries

DHAKA, Jan 11 (BSS) – Local shipbuilders have suggested setting up of more backward linkage units to help them adding more value to the country’s growing shipbuilding sector for increasing its competitiveness in the global market.

Presently, around 90 percent of the machinery, parts and other tools are imported for shipbuilding, said a group of local shipbuilders participating in an international exhibition on Maritime Technology, Shipbuilding and Renewable Energy began at a local hotel today.

They expressed satisfaction at the growth of shipbuilding industry and said Bangladesh has emerged as a shipbuilding nation from a ship-breaking one.

Industries Minister Dilip Barua opened the three-day exhibition while Chairman of Western Marine Shipyard M Saiful Islam and chairman of Highspeed Shipyard KM Mahmud-ur-Rahman focused on the shipbuilding growth and it’s future prospects.

Denmark ambassador Svend Olling, Chinese ambassador Zhang Xianyi and Indonesian ambassador Zet Mirzal Zainuddin, Vice- Chairman of Export Promotion Bureau (EPB) Jalal Ahmed, Shipping Secretary Abdul Mannan Howlader, Chief Executive Officer of Infrastructure Development Company Limited (IDCOL) Islam Sharif were among others who spoke on the occasion.

Dilip Barua said it took 25 years to earn 10 billion US dollars by the Readymade Garments (RMG) sector. He expressed the hope that the shipbuilding sector can do the same in around 10 years.

Saiful Islam, President of Bangladesh-German Chamber of Commerce and Industry (BGCCI). said despite limitations like power shortage and inadequate infrastructure facility , country witnessed 41 percent growth in export earning in the last 10 months of the current fiscal.

Mahmud-ur-Rahman, who chaired the function, said the country must increase shipbuilding facilities to exploit the growing opportunity of ship export as the western economies are now focusing more on South Asian countries for cheaper labour cost.

“Proper strategies and short and long term policies would expand the facility to build ships of higher tonnage, said Rahman.

In early 70s Denmark sent war-torn Bangladesh a ferry boat to help improve its river communication system and recently the Scandinavian country bought an ocean going ship from Bangladeshi said Svend Olling.

Zhang Xianyi lauded Bangladesh’s business community for their initiatives and said Bangladesh’s export to China is on the rise.

“Indonesia can be a prospective market for ships built in Bangladesh, Mirzal Zainuddin.

Jt venture to print security paper

http://www.thefinancialexpress-bd.com/more.php?news_id=122640&date=2011-01-12

Jt venture to print security paper
FE Report

A Japan-Bangladesh joint venture has taken an initiative to stem the document forgery in Bangladesh and stop it in all forms.

Japan-Bangladesh Security Printing and Papers Ltd (JBSPPL) has taken the project to produce security paper by setting up its manufacturing plant in 2012.

This was unveiled at a seminar on “Paper Forgery vs Security Printing: Step towards Digital Bangladesh” held Tuesday in the city.

Salim Prodhan, chairman of JBSPPL, said the project has been undertaken for manufacturing security papers, which will help to stop paper-based forgery and crime.

“Security papers are today imported and each year the country has to spend huge foreign currency. This project is expected to save around US$1.0 billion dollar a year and create huge employment opportunities,” said Mr. Prodhan

Prof Syed Modasser Ali, adviser to the prime minister attended the seminar as the chief guest while state minister for Land Mostafizur Rahman and Brain R. Peck, chief of Asia Pacific Region of TROY group, among others, spoke at the seminar.

Jahid Hossain, additional managing director of JBSPPL, his company has partnered with internationally reputed firm TROY to produce security papers. Currently MICR cheques and dividend warrants for the banks are being printed by the JBSPPL.

“Besides certificates and documents of various academic and other organizations are also printed with the exclusive products of TROY group with strict security measures of global standard by this institution” he added

Modasser Ali said technology is very necessary to build a digital Bangladesh.

Mostafizur Rahman said, paper forgery are committed all the sectors in the country. If we take right technology and use it properly we can avoid this problem.

UK-China company to invest $2m in Mongla EPZ

http://www.theindependentbd.com/business/others/28452-uk-china-company-to-invest-2m-in-mongla-epz.html

UK-China company to invest $2m in Mongla EPZ
UNB

Dhaka, Jan 10: A UK-China based company will invest US$ 2 million in Mongla Export Processing Zone (MEPZ).

Mongla Knitwears (Pvt) Limited, a UK-China company, will set up a Knit Garments and Sweater Manufacturing Industries in the MEPZ. The companies will also create employment opportunity for 2047 workers including 30 foreign nationals, a BEPZA press release said. The Bangladesh Export Processing Zones Authority (BEPZA) and M/s.  Mongla Knitwears (Pvt) Limited signed an aggrementto this effect at BEPZA Complex in the city on Monday.

M Moyjuddin Ahmed, member (Investment Promotion) of BEPZA and Che Chit Meng, general manager of M/s. Mongla Knitwears (Pvt) Limited signed the agreement on behalf of their respective organizations.

Rangpur Dairy proving a resounding success

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Rangpur Dairy proving a resounding success

Fresh Milk from RD Milk. Source: http://www.rdmilk.org/

Our Correspondent

RANGPUR, Jan 10: The Rangpur Dairy (RD) Milk processing factory at Boldipukur in Mithapukur Upazila of the district has provided solvency to hundreds of monga-hit poor people in Rangpur.

These poor people are now rearing cows at home and selling milk to factory, first ever small private industry set up in the district after the commissioning of Jamuna Bridge.

Rangpur Dairy Milk undertook a laudable step earlier, to support the poor providing cows on easy terms to produce milk at home so that they might be benefited financially.

RD Milk Manager Ashraful Alam said, “We provided 425 cows among 375 families of Salaipur and Muradpur under Mithapukur Upazila.

He said, “The Company not only aims to do business but also wants to create a financially sound community in the process.”

He said, “RD Milk has not donated the cows to the beneficiaries free of cost. They have to pay the purchase rate of the cows in exchange of supplying milk to the factory for a certain period. When the prices of the cows are completely realised, the authority would transfer ownership of the animals to them.” he said.

Motin Miah at Muradpur in Mithapukur Upazila who received two cows from RD Milk said that he paid the price of the cow to the company. He is now milking 30 litres out of which earning Tk 750 a day.

RD Milk Managing Director Foqruzzaman said, the poor people of Rangpur as well as dairy farmers in the district are getting benefit from RD. He said the dairy farmers in Rangpur who were in utter frustration and were about to close their farms due to frequent losses even two years back are now getting profit by selling milk to RD Milk.

RD Milk has now been producing full cream milk through Ultra High Temperature (UHT) method. Only three companies in the country were producing full cream milk through UHT method. The companies include Pran, Akiz and RD milk.

“We are now supplying the milk products to Dhaka and other parts of the country including the northern districts. At present, about 15000 litres of milk are being processed a day in the industry”.

Foqruzzaman told The Financial Express, “We have a plan to turn RD Milk as one of the biggest milk processing industry of the country so that about 30,000 dairy farmers of Rangpur and its adjoining districts may get benefit.”

He said the authority has completed preparation to produce RD Butter, RD Tea, and RD Sweets. He however expressed his dissatisfaction at the absence of gas supply through pipeline and adequate electricity in Rangpur.

The production cost will be reduced at least 50 percent if there is uninterrupted gas supply. Power shortage also often hampers production resulting in loss to the company, he added.

Regarding prospect of RD Milk, FBCCI Vice-president and former President of Rangpur Chamber of Commerce and Industry Mostafa Azad Choudhury said it is the first ever industry of its kind set up in Rangpur with the Equity Entrepreneur Fund (EEF) of Bangladesh Bank. He expressed optimism that RD Milk might help a lot in bringing socio-economic change in Rangpur.

Garmentech starts tomorrow

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Garmentech starts tomorrow

Source: http://www.garmentechdhaka.com/

Star Business Report

The 10th edition of Garmentech starts tomorrow at Bangabandhu International Conference Centre in Dhaka to exhibit the latest technologies and machinery of the garment sector.

Zakaria Trade and Fair International and ASK Trade and Exhibitions Ltd jointly organise the event that ends on Saturday, said the organisers at a press meet at Dhaka Reporters Unity yesterday.

In the show, 150 participants from 25 different countries will participate. The fair will remain open for all from 10:30am to 7pm everyday without any entry fee.

Kafco plans $1b plant

http://www.thedailystar.net/newDesign/news-details.php?nid=169425

Kafco plans $1b plant

Star Business Report

The Karnaphuli Fertiliser Company Limited (Kafco) plans to set up its second plant to produce 3,000 tonnes of urea fertiliser a day.

“We’ll submit our proposal to Industries Minister Dilip Barua soon for the $1 billion plant. Primarily, we’ll choose a site anywhere at Ashuganj, with a hope of available gas supply here,”said Salahuddin Ahmed, Kafco’s chief executive officer.

“We now await government’s nod to start construction work this year. The profit of the existing plant will be reinvested in the new plant,” he told The Daily Star after a press conference at Sonargaon Hotel in Dhaka yesterday.

Ahmad also said Kafco has been a totally debt-free company since February 1, 2006.

The company contributed $744.48 million to the government’s exchequer since fiscal 2004-05 to 2009-10, he informed the press.

Kafco sold 82 percent to 421,384 tonnes of urea to the government last fiscal year and exported 91,851 tonnes.

The company has to export fertilisers despite the item’s scarcity in the local market, as it was set up in 1990 with foreign investment, the CEO said.

Bangladesh government holds 43.51 percent share of the company, Kafco Japan 31.28 percent, Subcontinent Ammonia Investment 8.63 percent and Stamicarbone 1.57 percent shares.

Since inception, Kafco paid $247.44 million in taxes and duties, the company’s top official said.

“Kafco has paid dividends to its shareholders since FY2005-06. Bangladesh government is the single largest beneficiary. Up to FY 2009-10, the company has paid dividends of $441.8 million, out of which the government has received $191.6 million,” he added.

While his attention was drawn to the planned new factory, Industries Minister Dilip Barua said he is not aware of it. “Perhaps, the plan is yet to be finalised. The government is busy with its own plant now,” Barua said.

Banks asked to lend money to dairy farms with bio-gas plant

http://newagebd.com/newspaper1/business/4547.html

Banks asked to lend money to dairy farms with bio-gas plant
Bangladesh Sangbad Sangstha . Pabna

Bangladesh Bank governor Atiur Rahman on Sunday urged the commercial banks to increase their credit flow for agriculture sector particularly for setting up commercial dairy farms with bio-gas plants in rural areas.

A coordinated dairy farm is not only environment-friendly, but also meets three basic demands of farmers- protein, fuel and fertiliser, he said.

The governor was addressing a function at Titli tala of Jagannathpur upazila while visiting an Agrani Bank financed bio-gas and hybrid baokul and guava cultivation project.

Bangladesh has enormous capacity of establishing around 40 lakh coordinated dairy farms with four cattle in each, he said referring to a recent survey.

He said the dairy farms can yearly produce 480 crore cubic metre bio-gas, 120 million tonnes of high quality organic fertiliser, 1,700 crore litre milk and one million tonnes of meat apart from creating job for around 1.2 crore skilled and non-skilled rural people.

‘So, it’s huge opportunity for commercial banks to pursue green business on integrated dairy farm and bio-gas plant,’ Atiur said adding that Bangladesh Bank has been trying to make the integrated dairy farm model popular among the people.

The governor said a small dairy farm with four cows and one bio-digester everyday can produce 17 litre milk, 100kg organic fertiliser and 100 cubic biogas.

Director (news) of Channel-I Shykh Siraj, managing director of Agrani Bank Syed Abdul Hamid, government officials and local elites spoke, among others, on the occasion.

Referring to the Bangladesh Bank’s Tk 200 crore re-financing scheme for solar power generation and waste management, the governor urged people to take the opportunity.

The governor lauded the Agrani Bank’s financing project for the bio-gas plant and hybrid baokul and guava cultivation in Pabna and said many commercial banks already invested their money for solar power generation.

He urged the commercial banks to invest more in such projects and said it’s very encouraging to see that the commercial banks are providing the farmers with credit for fruit cultivation.

‘Such initiative will help farmers for cultivating high value crops, making the country more green and contributing to country’s economy,’ said the governor.

The governor urged the commercial banks to give emphasis on ‘area approach’ and provide loan for cultivation of a crop that grows more in a particular area.