Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 263 Tue. February 22, 2005  
   
Business


Ceramic makers eye $100m annual export by 2008


Inspired by increased overseas demand and local capacity expansion, Bangladeshi ceramic manufacturers eye an annual $100 million export earnings by 2008, a mammoth jump from the current yearly income of $30 million.

The export of tableware products has been witnessing over six percent yearly growth for the last ten years carving a significant niche in US and European markets.

With 56 percent accumulated export growth in the last ten years, exporters now hope to see a double-digit growth which will help the sector break $100 million margin by 2008.

As overseas demand is going up, local big players -- Monno, Shinepukur and Bengal Fine -- now completely focus on export market, channelling over 80 percent output into international market.

Starting production in 1980s to feed the local consumers, ceramic tableware industry took a slow but steady progression to approach foreign market. The sector exported ceramic goods worth $30 million in last fiscal and targetted $45 million in current fiscal year.

President of Bangladesh Ceramicwares Manufacturers Association Rashed Mowdud Khan is very optimistic about this industry's prospect of fetching over an annual $100 million by 2008.

"After consistent growth in the last ten years, we are now in a good position to achieve the target. Quality of products has earned Bangladesh a niche market in the developed world and the recent trend shows that the market will grow and grow further," he told The Daily Star Monday.

But in spite of all export prospects, a persistent gas crisis in the last few months seems to deprive the sector of a smooth rise. The association president said, "We need to run our kilns 24 hours a day but we cannot due to low gas pressure."

"In this competitive world, efficient delivery is a must to survive. But if we cannot run our kilns, how we can meet the delivery deadline," Khan said.

However, the energy minister assured that the gas problem would be over by April when Sangu starts producing at its maximum capacity and the laying of Ashuganj-Monohardi bypass line is completed, he said.

Bangladesh ceramic industry, which produces tableware, tiles and sanitary ware, has been witnessing a steady growth in the last few years due to usage of cheap gas, which resulted in low production cost, says industry sources. This has prompted many foreign buyers to make increased orders to Bangladesh, they added.

There are over a dozen of ceramic factories in Bangladesh, which produce over 40,000 tonne ceramic products a year. Monno, Shinepukur, Bengal Fine, Standard, Peoples and National Ceramic are engaged in tableware while RAK, Fu Wang, China-Bangla and Mir are engaged in tiles and sanitary ware.

The companies have invested over Tk 500 crore and more investments are in the offing with many companies planning to produce all the three ceramic categories, sources said.

Ceramic products including stone tableware, porcelain tableware, bone China tableware, tiles and sanitaryware have a $20 billion world market of which Bangladesh's share is only 0.17 percent.