Norway envoy visits Shinepukur Ceramics

http://www.theindependent-bd.com/details.php?nid=151097

Norway envoy visits Shinepukur Ceramics
ECONOMIC REPORTER

The ambassador of the Royal Norwegian Embassy in Dhaka Ingebjoerg Stoefring, on November 21, visited the state-of-the-art manufacturing facilities of Shinepukur Ceramics Ltd. (SCL), the leading ceramic tableware manufacturing company and largest ceramic tableware exporter of Bangladesh.

The Norway ambassador showed special interest in the high quality bone China tableware which SCL manufactures in its world class manufacturing plant.

Seeing different production lines of both Porcelain Plant and Bone China Plant of SCL, The Norway ambassador highly appreciated the quality of the products, as well as the quality of the manufacturing systems of SCL’s manufacturing plant.

She was also highly impressed by the hygienic environment and high-tech quality control process that SCL put in place during its production.

Rizvi Ul Kabir, Chief Operating Officer (COO) of Shinepukur Ceramics Ltd. welcomed the ambassador of the Royal Norwegian Embassy in Dhaka and the 15 member delegation from the Norway Embassy in the SCL manufacturing plant.

Rizvi said, “SCL is currently exporting both its Porcelain and Bone China products to Norway and this visit of the Norway ambassador to SCL plant will definitely further enhance SCL’s exports to Norway in the coming days”. He also mentioned that “Considering the huge demand of SCL’s high quality bone China tablewares in all its export markets, SCL is currently expanding its production capacity of bone China plant.”

Great Wall to unveil new designs

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Great Wall to unveil new designs
Star Business Report

Great Wall Ceramic Industries Ltd, a local tiles maker, yesterday announced a new high-end product to catch up with rising demand on the local market.

“As demand for costly tiles is high, we want to manufacture and supply it to the local market,” said an official of the company at a press conference at the National Press Club in Dhaka.

The company will manufacture and supply large-sized, fine-cut tiles with decorated borders to meet local demand, SM Shajahan, assistant general manager, told the function.

Great Wall has recently enhanced its production capacity to 13,500 square-metre a day from 8,000 square-metre.

The new product will be unveiled at a function in Dhaka on Thursday.

A total of 10 local and foreign companies produce tiles in the country to produce 1.5 lakh square-metres of tiles a day against local demand of four lakh square metres a day, the press meet was told. The remaining is imported.

Asif Iqbal Mahmud, director of Great Wall Ceramic, was also present at the function.

Ceramic wares export potentials

http://nation.ittefaq.com/issues/2009/11/07/news0861.htm

Ceramic wares export potentials

ACCORDING to recent press reports, local ceramic ware manufacturing industry is expecting a steady growth with a US$100 million return from exports by 2015 as the global market favours more shipments from Bangladesh. As many as 21 leading ceramic manufacturing plants earned more than US$ 35 million from exports of their products to 50 countries in the last fiscal year. Of the products, ceramic table wares are being exported to about 50 countries including the United States and Canada, tiles to India, Nepal and Bhutan and sanitary wares to the Middle East, specially to the United Arab Emirates.

Besides earning valuable foreign exchange, the export-oriented ceramic factories along with two dozen other manufacturers cater to the total demand of the expanding domestic demand – the size of which has grown to Taka 700 crore in 2008-2009 financial year. Bangladesh exported only US$ 1 million worth of ceramic wares in 1991 before recording a staggering 695 per cent growth in about a decade, investing nearly Taka 2,000 crore and employing some one lakh people in the industry. As a least developed country, Bangladesh gets ‘tax exemption’ in the European Union countries.

As expected by Ceramic Ware Manufacturers, the sector would earn $100 million annually from the beginning of the next decade provided the international market has not been affected by the lingering effects of the global economic meltdown. They want the government to promote the sector with various ‘incentives’ as the value addition of the ceramic sector is almost 65 per cent. At a recent meeting with the finance minister, the industry leaders submitted a 10-point demand for bank loan at low interest rates and inclusion of the ceramic sector in the government’s stimulus package announced in the budget.

Tiles market heats up

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Tiles market heats up

Sajjadur Rahman

More players are joining the ceramic tiles business that has so far pulled in over Tk 1,000 crore investment with around 20 percent annual growth rate.

The latest entrant is Dulal Brothers Ltd (DBL), one of the leading apparel manufacturers and exporters in Bangladesh, while X Ceramics is going into trial production next week.

Several other companies, including Akij Group, Padma Ceramics and Tamanna, are in the pipeline to hit the market in the next two years.

“Civil construction of our company is going on in full swing. We hope to go for production by 2010,” said Fariduddin Akhter, general manager of DBL Ceramics, a project of nearly Tk 200 crore located at Sreepur in Gazipur district.

He said the demand for ceramic tiles both for interior and exterior is rising rapidly in Bangladesh.

“Use of tiles is no more a fashion now. It’s become an essential increasingly being used in urban and semi-urban areas,” said Akhter who has 21 years of experience in the industry.

Bankers also consider the sector as a potential industry for financing.

Touhidul Alam Khan, executive vice president (corporate banking division) of Prime Bank, said the construction industry, including residence, shopping malls and others, is growing so fast that the tiles business is becoming one of the booming and prospective sectors.

“If we look on the local production in the period between 1984 and 2009, we will see tiles production has increased from 300 square metres to around 100,000 square metres per day,” Khan said.

Already 11 companies are now operating in the market with over Tk 1,000 crore annual sales turnover, industry people said.

According to a market study, the existing factories produced nearly 322 million square feet (sft) of tiles in 2007, up from 277 million sft a year ago. Production reached 374 million sft in 2008 and it is estimated to grow at 17 percent in 2009 and 2010.

Of the total production in 2007, RAK Ceramics alone made 74 million sft, followed by China-Bangla, Fu-Wang and Mir each slightly over 30 million sft.

Industry people said the history of tiles production in Bangladesh is not very old. The first factory was set up by Bangladesh Chemical Industries Corporation, a state-owned enterprise, in 1982. Private sector established the second one, Modhumoti Tiles, in 1988.

The situation started changing rapidly after 2000 when tiles became too cheap to easily replace mosaics.

RAK Ceramics (Bangladesh) Ltd, a UAE-based company set up in 2003, brought a drastic change in the tiles industry and now grabs one-fourth of the domestic market share.

According to the industry people, sales of the locally produced tiles did not go down even in the past two years, the worst time for the country’s construction industry.

They attributed the growth to the demand and low production cost. Gas and labour account for 23 percent and 16 percent respectively of the total production cost, and so Bangladesh has an edge on these inputs over other countries.

“Bangladesh has an opportunity to export tiles because the major global player, China, is losing advantage to rising production cost,” said Akhter.

sajjad@thedailystar.net

Ceramics brace for high demand

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Ceramics brace for high demand

Ceramic tableware is in the race to keep up with growing demand on domestic and international markets. Photo: FARR CERAMICS

Sajjadur Rahman

Domestic and export demand for ceramic tableware is rising rapidly, widening the gap between its demand and supply.

The demand-supply gap was estimated at 21,257 tonnes in fiscal 2007-08. It is expected to rise to 22,544 tonnes in four years, according to a recent study by the syndication department of Prime Bank Ltd.

“Bangladesh enjoys a comparative advantage in manufacturing ceramic tableware, particularly in export markets, due to cost competitiveness,” said Touhidul Alam Khan, executive vice president and head of the syndication finance unit of Prime Bank.

Ceramic manufacturing is a gas-based, labour intensive and skills-oriented business.

Traditionally, Japan, UK, Germany and other European countries dominated exports of ceramic tableware to world markets. But a jump in production costs, including wages and currency appreciation, made ceramic manufacturing unfeasible for the nations.

Khan said Bangladesh has certain competitive advantages over its competitors an availability of gas, cheap labour and the generalised system of preferences (GSP) that allows Bangladesh’s duty-free exports to Europe. There is no quota restriction either on the export.

There are nine ceramic tableware manufacturing companies in the country with a total capacity of nearly 24,000 tonnes a year as of 2008, of which an average of 48 percent is being exported and the remaining 52 percent is used in the domestic market, the study found.

Bangladesh exported ceramic tableware worth over $33 million in fiscal 2008-09, of which over 80 percent was destined to Italy, UK, USA, Germany, France, Canada and Sweden.

“We are getting export orders from new countries, like Turkey and India, every month,” said Iftekhar Uddin Farhad, managing director of FARR Ceramics, a fully export-oriented factory. The company’s exports to India will cross Tk 5 crore in 2009, he said.

“Our factory, which has a production capacity of around 30,000 pieces, is fully booked for the next months,” Farhad said.

Monno and Shinepukur ceramics have the highest production capacity of nearly 60,000 pieces a day followed by Standard Ceramic industries with 40,000 pieces a day, the study shows.

Ceramic tableware is considered sophisticated, fashionable and an indispensable household item worldwide. The products are also being used in all types of social functions, offices, community centres, hospitals, hotels and restaurants.

“Ceramic tableware has become a common household item in Bangladesh with a continuous rise in use among middle income groups in the past decade,” Khan said.

sajjad@thedailystar.net

Tk 520m to bankroll Paragon Ceramic

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Tk 520m to bankroll Paragon Ceramic
Star Business Desk

An export-oriented porcelain tableware manufacturing plant, Paragon Ceramic Industries Ltd, will be set up at Gazipur soon with a target to go into commercial operation in the second quarter of 2010.

City Bank has recently arranged a syndicated term loan of Tk520 million and working capital of Tk130 million for the company, according to a press release.

The deal was inked at a city hotel in presence of Bilal Mamoon, chairman of Paragon Ceramic, and K Mahmood Sattar, managing director and chief executive officer of City Bank, and other high officials from participating banks.

Oher participants of the syndication are Eastern Bank, Mercantile Bank, Mutual Trust Bank, Premier Bank, SABINCO, Standard Bank and United Commercial Bank. City Bank is also assuming the role of Facility Agent and Account Bank.

The venture sets out to tap highly potential export market for Bangladesh made ceramic tableware.

It also targets meeting domestic market also.

Local interior decors shoring up foothold

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Local interior decors shoring up foothold

Locally-made sanitary fittings are on display at a shop in Dhaka. Demand for Bangladeshi sanitary accessories is gradually increasing in domestic markets. Photo: STAR

Kawsar Khan

Bangladeshi products meant for interior decoration are gradually getting a strong foothold in domestic market, as many local companies have sprung up over the past few years on increased demand for less expensive but quality items.

The items like sanitary ware, tile, aluminium products including doors and windows, bathroom fitting and cable now drive out foreign products.

Sector people attribute the present position to the local realtors’ quest for low cost but quality interior materials to make apartments affordable to customers.

In a span of only eight years, local makers of such materials have been able to grab a major market share, they said.

Rashed Mowdud Khan, president of Bangladesh Ceramic Ware Manufacturers Association, said, “You can even buy a square foot of tile for only Tk 30 now, which was Tk 130-140 seven to eight years back. It has become possible, as local manufacturers in a bigger way have come into the scenario. Earlier, a major portion of the local demand for the item was met through imports.”

Khan also pointed to the fact that availability of cost-effective tiles has driven out mosaic largely from the market. “I guess local manufacturers account for more than 65 per cent market share of domestic tile consumption,” he said.

Around seven companies now exist in the market, of which where RAK Ceramics (Bangladesh) Pvt Ltd and Bangladesh Insulator & Sanitary Ware Factory Ltd are on the front line. RAK Ceramics is a joint venture with the United Arab Emirates, while the other is a state-run enterprise. These two companies also manufacture sophisticated bathroom fittings and other equipment.

“We produce around 2,700 pieces of sanitary ware every month,” a sales executive of RAK Ceramics said.

The chief of the trade body for ceramic ware manufacturing sector is also upbeat on the item’s exports in a very near future.

Meanwhile, demand for local doors, made of wood, plastic and aluminium, is also on the rise.

“Even five-six years ago, most readymade doors in the local market were foreign, but things have changed with the entry of different local companies who make quality wood and plastic doors,” said M Shamim Ullah, proprietor of Shamim and Brothers, a door vendor and manufacturer in the capital.

Around 10 companies are producing doors with reputation, according to an official of a renowned furniture company.

“Now most buyers are enthusiastic about locally made doors because these are durable,” said Ranjit Roy, an assistant manager (Sales and Marketing) of Akhtar Furniture Ltd.

Besides, local companies are making aluminium-made doors, windows and stairs as an alternative of wood products.

“Now the demand for aluminium-made interior material in the construction sector is fully met by local makers. But things were different just eight years back when the sector was import-dependent for such item, ” said M Moniruzzaman of Ornate Thai Aluminium.

The annual turnover of the aluminium industry is around Tk 1,000 crore, according to industry insiders.

President of the Real Estate and Housing Association of Bangladesh (REHAB) Tanveerul Haq Probal said realtors prefer to use local products as manufacturers offer warranty and also provide after-sales-services.

“People in the downtown prefer locally made interior materials as those are cheaper,” he added.

kawsar@thedailystar.net

Brick maker targets Middle East market

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Brick maker targets Middle East market

Kawsar Khan

Local brick manufacturer Mirpur Ceramic Works Ltd (MCWL), which has been exporting the building material to Singapore for over a decade, is getting ready to inscribe its footprint on Middle East markets.

At present the company exports 80,000 to 100,000 pieces of different types of bricks every month, officials said. The cost of each container of bricks having 20,000 pieces hovers around $1,500.

“We mainly export plain hollow and bullnose bricks to Singapore that are used there in road and footpath decoration,” said Mohammad Emran, manager (Marketing and Sales) of MCWL.

Bullnose is a decorative brick used in landscape design works and walkway edges.

The company was awarded national export trophy (bronze) for 1996-97 for exporting such a non-traditional item.

“The real estate sector is experiencing a boom in the ME countries including the United Arab Emirates and Saudi Arabia where there is a huge prospect for our bricks,” said Emran.

As the Gulf states do not have enough clay to make brick to meet their needs, they import it from such countries as India, Sri Lanka and China.

“Now we are receiving export queries from the ME countries and also from the United Kingdom,” he said.

He said the roof tiles made by Khadim Ceramics Limited (KCL), a concern of MCWL, have recently drawn attention of ME countries.

The roof tiles produced by the company are burnt in 1,200 degrees Celsius and coated with silicon that give the item greater durability compared to the traditionally made roof tiles in the country.

“People in the Middle East need roof tiles to keep their houses cool from the sun’s heat and we hope to export around four containers of roof tiles within a very short time as negotiation in this regard is going on,” said Emran.

He said the company could have started exporting roof tiles to the Gulf countries much earlier, but it was not possible due to high freight charges.

“We have taken different measures to cut production costs and become successful in some areas,” he said.

He also sought cash incentive facility against brick export to make local bricks competitive in export market.

Sakif Ariff Tabani, director (Marketing and Administration) of MCWL, said their products have potential in Japan also. But the high freight charge is barring exports.

The combined daily production of MCWL and KCL ranges from 1 lakh to 1.5 lakh pieces of bricks that include facing bricks, reinforced bricks, bullnose, three-hole bricks, roof tiles and paving bricks.

kawsar@thedailystar.net

Ceramic ware exporters aim sturdy business

http://www.newagebd.com/2009/aug/04/busi.html#1

Ceramic ware exporters aim sturdy business

The image from a company catalogue shows ceramic ware of Bone China. This kind of products makes Bangladesh tableware more attractive at the export markets.

Shakhawat Hossain

Local ceramic ware manufacturing industry is expecting a steady growth with a $100 million return from exports by 2015 as the global markets favour more shipments from Bangladesh.

In the past fiscal, 21 local leading ceramic ware factories fetched more than $35 million from exports of their products to 50 countries, said Rashed Moudud Khan, president of the Bangladesh Ceramic Ware Manufacturers’ Association.

Of the products, ceramic table wares are being exported to about 50 countries including, the US and Canada, tiles to India, Nepal and Bhutan, and sanitary wares to the Middle East, specially to the UAE.

Besides earning valuable foreign currency, the exporting factories and 24 others manufacturers also cater to the entire demand of domestic market, the size of which has grown to Tk 700 crore in 2008-09, he said.

Khan, also the chairman of Bengal Fine Ceramic, said the country exported only $1 million worth of ceramic wares in 1991 before recording a staggering 695 per cent growth in about a decade, investing nearly Tk 2,000 crore and employing some one lakh workers.

Industry leaders said Bangladesh has huge potential to emerge as one of the three largest global ceramic exporters by the next decade for its advanced ‘Bone China’ technology and competitive labour costs.

Besides, Bangladesh enjoys tax exemption in the EU countries as an LDC (least developed country) member.

They said the sector would be a $100 million export industry in the next three years should the markets not been affected by the global economic recession.

However, they pointed out that the government should promote the sector with various incentives as the value addition of the ceramic sector is almost 65 per cent.

The association leaders while meeting with finance minister AMA Muhith on Sunday, submitted 10-ponit demands that included fixation of bank loan at interest of 7 per cent and inclusion of the sector in the Tk 5,000 crore stimulus package announced in the current budget.

They said the manufacturing cost of 60-piece dinner set is $40.23 at the existing interest rate of 13 per cent.

The cost will, however, be much lower at the proposed 7 per cent interest rate which will eventually increase the competitiveness of the local products in the international market.

The association also demanded waiver of 10 per cent supplementary duty on locally manufactured products and full waiver of valued added tax on gas bills from the existing 80 per cent.

Local ceramics maker rides out global recession

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Local ceramics maker rides out global recession
FARR Ceramics now eyes capacity building

FARR Ceramics that bags a 10 percent share in Bangladeshi ceramics exports is among the few now showing resilience against global recession. Photo: Farr Ceramics

Sajjadur Rahman

A local ceramics maker, in a span of less than two and a half years, has touched a credit mark of fetching around Tk 31crore from porcelain tableware exports in the immediate past fiscal year (2008-09), riding out the ongoing global recession.

FARR Ceramics Ltd, which has now a 10 percent market share in the Tk 300 crore exports of ceramics, went into commercial production in February 2007, exported nearly Tk 20 crore in FY 2007-08.

Despite a tremendous growth rate, Iftakher Uddin Farhad, the company’s chairman and managing director, believes Bangladesh has more scope than what it now exports.

“I am going to double my factory’s capacity soon to meet the growing export demand,” he said. “Quality and competitive price have helped us boost our exports.”

Bangladesh’s competitiveness enhances day by day. Farhad said rising energy and labour costs in competitor countries might turn Bangladesh into a global hub of ceramics tableware after China.

Ceramics and tiles are an emerging industry in Bangladesh. Some Tk 2,000 crore has been invested in the sector, both from home and abroad. Ceramics’s local market size was Tk 700 crore in FY 2008-09.

Bangladesh’s export earnings from ceramics reached $33 million last fiscal from a meagre amount of $1 million in 1991. Besides FARR, other major exporting companies are Shinepukur, Monno and Artisan Ceramics.

However, many local manufacturers and exporters could not remain immune from global crisis fallout, as exports have marked a decline.

During July-March in FY2008-09, ceramics exports declined to $25.60 million from $28.43 million in the same period a year earlier.

FARR is among the few companies that are showing resilience in the international export market. The company exports to Italy, Germany, Switzerland, Poland, Spain, Turkey and India.

“India is growingly becoming an important export destination for our tableware. We export on an average $70,000 ceramics to the neighbouring country a month,” Farhad pointed out.

FARR Euro Fine Porcelain, FARR Fine Ivory and FAAR High Alumina Porcelain are some of the company brands. Renowned five star hotels in India such as Marriott, Taj, Grand and Ramada use FARR ceramics tableware, the company’s MD claimed.

Higher energy and labour costs in China and Sri Lanka, the two major competitors, have paved the way for the company to cement its foothold in the global export market, Farhad said, lamenting government’s lax attitude towards the industry.

“Turkey is becoming a major importer of Bangladeshi ceramics, but the country requires a health certificate, which our testing institution BSTI is not giving to us,” Farhad said.

He said China gives 22.5 percent incentives to its ceramics exporters, but Bangladesh gives nothing.

FARR Ceramics Ltd was established in 2005 with Tk a 120 crore investment. Some 1,000 workers are employed in the factory.

sajjad@thedailystar.net

X-Ceramics to go for trial production by end of next month

http://www.thefinancialexpress-bd.com/2009/07/05/72004.html

X-Ceramics to go for trial production by end of next month

Mehdi Musharraf Bhuiyan

A homegrown real estate conglomerate is aiming to give country’s changing skyline a real shine by locally producing ceramic wall tiles which can be used not only in the buildings’ interior but also on the exterior.

From its state-of-the-art manufacturing plant in Sreepur of Gazipur, X-Ceramics Limited, a Tk 607.32 million project has embarked on a mega project of establishing, what has been termed as ‘the largest ceramic tiles manufacturing facility’ in Bangladesh.

“We are going for trial production by the end of August,” Managing Director of X-Ceramics Limited Mahin Mazher told FE recently in an interview. “To that end, major infrastructure work has already been completed while machinery installations are going on in full swing,” he added.

X-Ceramics is a concern of the decade-old Index group of companies.

“Our plant will produce porcelain and ceramic floor and wall tiles both for interior and exterior use, however production of exterior ceramic tiles will be unique in sense that it is for the first time that tiles made of ceramics intended for external use would be manufactured within the country,” Mahin said.

Although the use of ceramic tiles for the floor and on the interior wall of the building has become the norm in the country for a while now, use of the same on the building’s exterior is still a rare sight.

Mahin says that his company is aiming to tap into this vacuum, as there could be a huge demand for such exterior ceramic tiles in the local market because of their durable resistance against heat and humidity.

“One major benefits of using such exterior tiles are they never fade in the sunlight or in any extreme weather condition, something to which most of the buildings in our country are prone to,” Mahin said.

“In rare cases, various expensive stone types are used on the exterior as a possible way out but that is an expensive idea,” he said, adding, “rather than that, use of such exterior ceramics which could be offered at a competitive price, offers an affordable solution”.

“Apart from that, using the exterior tiles shall protect interior plaster and paints from outside water penetrations while enhancing the building’s look by many folds,” he added.

Index Companies; to which X Ceramics is a subsidiary, has a three decade long legacy of constructing or designing a number of architectural landmarks in the Dhaka city that now houses various top government offices or business houses.

Now, in addition to pioneering the use of exterior ceramics in the country’s booming housing sector, X-ceramics is also aiming to grab a lion’s share of the country’s overall market for ceramics wall and floor tiles.

“The market for ceramics floor and wall tiles in the country is an ever growing one, with the daily domestic output is estimated at one hundred thousand square meter which is worth of around Tk 35 million,” Mahin said.

“To begin with, we will have a daily production capacity of 10,000 square meter, but by the end of the year, it would be increased to 27,000 square meter per day, which would make us the single largest player in the market with 20 percent more output capacity than our nearest competitor and a market share of 25 percent,” he added.

The company received financial support worth Tk 350 million from six private banks. The banks are Prime Bank Limited, Islami Bank Bangladesh Limited, Export Import Bank of Bangladesh Limited, Social Islami Bank Limited, Southeast Bank Limited and Trust Bank Limited.

X Ceramics boss also says that sooner than later his company would go for the production of tableware like teapot and cups which is another ceramic byproduct with huge demand in the local market.

He informed further that currently his company is also looking to form partnership with an overseas entity (whose name he prefers not to mention) for further sharing of technological know how, to turn it into the ‘first ever European standard multinational joint venture ceramics manufacturing facility’ in Bangladesh.

Bangladesh to be made ceramic hub, says Dilip

http://www.newagebd.com/2009/apr/03/busi.html#9

Bangladesh to be made ceramic hub, says Dilip
Bangladesh Sangbad Sangstha . Dhaka

Industries minister Dilip Barua Thursday said Bangladesh would be made the hub of ceramic goods production in the world.

‘The government would extend all sorts of cooperation to flourish the potentials ceramic industries in the country,’ he said.

The minister said this when leaders of Bangladesh Ceramic Ware Manufacturers Association (BCWMA) called on him at his office here on Thursday, an official handout said.

The industries minister advised the BCWMA leaders to produce quality ceramic products utilising low labour cost and export those to the developed countries by using the opportunity of world economic meltdown.

The leaders highlighted the contributions of ceramic industries to the national economy as well as employment generation. If the government extends its help, the country’s ceramic industry could capture world’s top place within shortest possible time by producing quality ceramic products, the leaders said.

During the meeting, they also drew attention of the minister for providing easy utility services like electricity, gas and better communication for the growth of ceramic industries in the country.

The leaders said Bangladeshi ceramic products have a great demand in the developed countries including neighbouring India.

The association leaders also urged the minister to issue health certificate from BSTI to help enter Bangladeshi ceramic products to European markets.

Dilip Barua said the government has given top priority to the growth of local industries for achieving economic prosperity and creation of job opportunities. In this connection, he said, ship building, ceramic, light engineering and small and medium enterprises are in the priority list of the government.

BSTI director general M Azmal Hossain, vice-president and BCWMA general secretary Iftekhar Uddin Farhad and Moinul Islam respectively were present on the occasion.

Six firms eye tiles market

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Six firms eye tiles market

Sajjadur Rahman

At least half a dozen ceramic tiles factories are in the pipeline to enter the market in the next couple of years to grab share from the growing industry.

Already 11 factories are operating in the market that has been growing at about 20 percent rate for the past several years and posts over Tk 1,000 crore annual sales turnover, industry people said.

“Use of tiles is no more a fashion. It’s become an essential increasingly being used in urban and semi-urban areas,” said AKM Ziaul Islam, an independent consultant on tiles industry.

The factories in preparation are X Ceramics, Padma, Akij, Tamanna, Aftab and Khaled Corporation, of which X Ceramics is set to launch in July this year.

The rest are developing fast their civil construction and importing capital machinery.

“We are ready to start production in July this year,” said Mazharul Quader, chairman of X Ceramics that will make exterior tiles for the first time in the country. Demand for exterior tiles is met by import as all the existing factories produce interior tiles.

Some existing firms, including RAK and Mir, are also expanding their production base to grip the business from the growth.

According to market study, existing factories produced nearly 322 million square feet (sft) of tiles in 2007, up from 277 million sft a year ago. Production reached 374 million sft in 2008 and it is estimated to grow at 17 percent in 2009 and 2010.

Of the total production in 2007, RAK alone made 74 million sft, followed by China-Bangla, Fu-Wang and Mir each slightly over 30 million sft.

Industry people said history of tiles factories in Bangladesh is not very old. The first factory was set up by Bangladesh Chemical Industries Corporation, a state-owned enterprise, in 1982. Private sector established the second one, Modhumoti Tiles, in 1988.

The situation started changing rapidly after 2000 when tiles became too cheap to easily replace mosaics.

RAK Ceramics (Bangladesh) Ltd, a UAE-based company set up in 2003, brought a drastic change in the tiles industry and now owns one-fourth of the domestic market share.

Khan Mohammad Iqbal, managing director of forthcoming Padma Ceramics, said he wants to concentrate on manufacturing quality tiles that needs costly machine.

“Civil construction of my factory is going on. I hope to start production by 2010,” he said.

Iqbal Ahmed, MD of Tamanna Tiles, said he is to finish the works for structure by this year.

Ahmed, also a machine supplier for the tiles industry, said the existing companies are increasingly going for expansion to hike production.

AKM Ziaul Islam said sales of the locally produced tiles did not go down even in the past two years, the worst time for the country’s construction industry.

He attributed the growth to the demand and low production cost. Gas and labour account for 23 percent and 16 percent respectively of the total production cost, and so Bangladesh has an edge on these inputs over other countries.

Industry people also said Bangladesh has an opportunity to export tiles because the major player, China, is losing advantage to rising production cost.

sajjad@thedailystar.net

Tk 650cr glassware plant to come on stream

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Tk 650cr glassware plant to come on stream

Workers construct a glassware and energy-saving bulb plant in Mirzapur, Tangail. The project undertaken by Nasir Group will cost Tk 650 crore. Photo: Sajjadur Rahman

Sajjadur Rahman

Nasir Group is going to set up the country’s first glassware and energy saving tube plant within this year at a cost of Tk 650 crore.

Officials said the new company — Nasir Glassware and Tube Industries Ltd — is expected to start operations by the end of this year.

“We have already invested around Tk 200 crore for the ongoing civil construction, including land acquisition,” said Habibur Rahman, project engineer of Nasir Glassware and Tube Industries.

The plant is being set up on a 125-bigha land at Sohagpur under Mirzapur upazila of Tangail district. Nearly 5,000 tonnes of 75-grade rod will be used for the factory.

Some 800 people will be employed permanently in addition to several hundreds casual workers, officials said.

“We have initially estimated the project cost at Tk 600 crore, but this will exceed considering the pace of the expenditure,” said Rahman who was also the project engineer of successfully built Nasir Glass Industries, the country’s largest float glass manufacturer.

Nasir Glassware and Tube Industries will be the first of its kind in the country and will compete against a flood of imported goods now dominating the glass tableware, fluorescent and energy saving bulb market here.

Glassware products that will be manufactured at the plant include tableware, flower vase, perfume bottle, bowl and candle stand.

Officials, quoting a survey report, said the country has an annual market of glassware worth around Tk 500 crore. All of the items are imported from different countries including China, Thailand, Malaysia and Indonesia.

The market size of fluorescent and energy saving bulbs is almost same as that of glassware, they said. The energy saving bulb market will boom once the government makes its use mandatory.

“Initially our plan is to meet the domestic glassware demand, but we will export also,” said Aby Sayed, general manager (commercial and banking) of Nasir Group.

On the issue of bank financing, Sayed said: “It’s under process.”

He however said several banks are offering the company their credit and the company is also going to some banks.

A senior private bank official admitted they are now appraising the project, and prefer to arrange a syndicated loan for one of its ‘valued clients’. “We are studying the proposal thoroughly,” he added.

Earlier, as the lead arranger, Prime Bank managed a syndicated loan of Tk 100 crore for the group’s Nasir Glass Industry Ltd in 2003.

Nasir Glass Industry manufactures float glass, reflective glass, tempered glass, coated glass, mirrors, clear and colour glasses.

Nasir Group, originally a regional bidi manufacturer based in western Kushtia district, became a household name after setting up the country’s first float glass factory.

The group, also the country’s biggest melamine manufacturer, has a sports shoes plant and sells low-priced cigarette.

Named after its owner Nasir Uddin Biswas, the group has an annual turnover of around Tk 1,000 crore.

sajjad@thedailystar.net

Tk 800 million expansion plan to see 150 pc enhanced output

http://www.thefinancialexpress-bd.com/2009/01/19/56353.html

Tk 800 million expansion plan to see 150 pc enhanced output

In a major expansion move, Shinepukur Ceramics Ltd (SPCL), a fully export oriented subsidiary of Beximco Group, Sunday signed an MoU with a German company for setting up an expansion unit of bone china.

Nazmul Hassan, Chairman Shinepukur Ceramics Ltd (SPCL) and Konrad Schmidling, Managing Director of Ceramic Info Center, Germany signed the agreement at Beximco Corporate Headquarters in the city, said a press release.

The MoU aims at supply erection and commissioning of SPCL’s bone china expansion unit to be set up at Beximco Industrial Park having a capacity of 4.5MT per day. The expansion will increase production capacity to the tune of 150 percent over present bone china production capacity.

The expansion project will be completed by October 2009 at an estimated cost of Taka 800 million which will entirely be financed by Bangladesh Export Import Co Ltd (BEXIMCO), the parent company of SPCL.

Once the expansion project is completed additional export sales of Taka 1.10 billion and net profit of Taka 200 million is expected.

Shinepukur ceramics is the single largest exporter of ceramic tableware of Bangladesh and contributing around 50 percent of the total export of tableware from Bangladesh.

Shinepukur Ceramics Ltd, equipped with the state-of-the-art machineries, has two independent units producing high quality Porcelain and Bone China Tableware. The Porcelain unit has a capacity of 65,000 pieces.

Since commencement of commercial production at the end of 1999, Shinepukur has successfully developed a substantial export market for the top-of-the-line Bone China and Porcelain Tableware and the customer portfolio now includes world-renowned Tableware companies in the UK, USA, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia, UAE, Denmark, Germany, France, Mexico and Turkey.