Meghna Group now making ceramic tiles

The Meghna Group of Industries (MGI) has recently entered the domestic ceramic industry by establishing its own Fresh Ceramics brand.

It invested nearly Tk 500 crore to set up a ceramic manufacturing facility in Ashariar Char in Narayanganj, creating an opportunity to directly employ around 1,000 people.

The local ceramic industry has registered an annual average growth rate of about 15 per cent since fiscal 2015-16, according to data from the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

In fiscal 2019-20, about Tk 4,597 crore worth of tiles were sold, according to the BCMEA data.

Of the total consumption, local brands accounted for about 84 per cent, or Tk 3,856 crore, while imports the remaining Tk 741 crore.

Now, there are 31 ceramic manufacturing facilities in the country with a combined annual production capacity of 2,064 lakh square metres.

Total investment in the industry currently stands at about Tk 5,235 crore while it employed around 19,883 people directly, showed the BCMEA data.

The MGI has considerable investments in the construction materials industry for its Fresh Cement brand.

Kazi Mohiuddin, senior general manager of the MGI, said the demand for construction materials, including ceramics, was rising in line with rapid urbanisation in Bangladesh over the past decade.

Against this backdrop, the MGI decided to invest more in the sector and grab a share of the growing ceramic industry, he added.

The MGI assures Fresh Ceramics to be a quality product and delivery guarantees to general customers.

Mohiuddin went on to say that it took about one-and-a-half years to complete construction of the new facility and begin operations.

He also claimed that world-class machinery were being used at the unit to produce high-quality ceramic tiles that were "better than any other in the market".

Regarding prices, Mohiuddin said the MGI always markets quality products at affordable prices, which would be determined in accordance with current market trends.

"The MGI brings products to the market keeping in mind the needs of all types of consumers. In the future, we will have the full range of products," he added.

With a daily manufacturing capacity of 40,000 square metres, Fresh Ceramics will produce a number of variations of two types of ceramic tiles for floors and walls.

Including the new Meghna Ceramic Industries Limited, there are now 48 business unitsoperating under the MGI employing about 40,000 people.

The homegrown conglomerate's website states it has an annual turnover of approximately $2.5 billion.

The MGI story traces back to 1976 when it operated as Kamal Trading Company before establishing itself as Meghna Vegetable Oil Industries in 1989 on a small patch of land in Meghnaghat.

The secret to the MGI's rapid expansion has been product diversification.

The group now has a presence in an array of industries, including fast moving consumer goods, construction, liquefied petroleum gas, agribusiness, chemicals, shipbuilding, securities, insurance, media and aviation.