Local appliances as good as foreign ones
In an interview with The Business Standard, Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliance, discusses the present business condition and future plans for the company
Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliance. Illustration: TBS
Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliance. Illustration: TBS
Orion Home Appliance Limited made its entry into Bangladesh's electronics market with products like refrigerators, air conditioners, televisions and home appliances in 2021.
In an interview with The Business Standard, Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliance, discusses the present business condition and future plans for the company.
How big is the electronics market in the country? What is Orion's position in the market?
At present, the size of the electronics market in Bangladesh is approximately Tk20,000 crore, but it is growing every day as the economy is growing and as the country has almost reached 100% electrification. Because of better access to electricity in various new places, demand for electronic appliances is also increasing in the country. By 2030, it might even double in size.
It has been two years since we entered the electronic appliances market, but within this short period of time, we have been able to gain popularity in the country. So, instead of trying to say in what position we are compared to our competitors, we can say that we are in a good position. And our position is getting stronger. Soon, we can also consider Orion Home Appliances in the top three.
Which of your products have helped you achieve a good position in the market?
The refrigerator market is booming in Bangladesh at the moment. Especially for those involved in local production, our major product is refrigerators, then TVs, then ACs, and then small home appliances. It is by prioritising this product that we are moving forward in the market. Refrigerators are 100% manufactured here, and from sourcing raw materials to the last stage, we prioritise quality control. That is why our refrigerators have been quickly accepted in the market.
Bangladesh was introduced to ACs, TVs, and refrigerators through the products of reputed foreign brands in the 1960s. But that time has changed. Local production has reached such a quality that in many cases, our products are almost at the same level as foreign products. So foreign products are now concentrated towards city corporation areas, while our local products are available outside these regions. But we hope to bring out bigger and better products like the foreign ones soon.
What inspired you to open a manufacturing plant in Bangladesh?
When a company opens its factory in the country, it is not just for its own growth or business development, but also for the development of the country and the people. And a factory adds both direct and indirect employment for the citizens of that country, as well as contributing to the economy. And of course, businesses look forward to making profits and then use those profits to build more factories to continue that process.
What kind of products do Bangladeshi customers prefer? What are their preferred price ranges?
In Bangladesh, there are many kinds of customers, some who want cheaper products or expensive products. But customers mainly look for high quality, which we have seen in their acceptance of foreign appliances. Of course, prices matter to many as they have limited budgets. We try to make products for all customer segments.
Nowadays, everyone wants to buy energy efficient products. What products do you have that fulfil this demand?
Energy efficiency is a big part of our product's design because the price of energy is increasing. All our products are energy-efficient because or else the customer will not be benefitted by those in the long run.
Is the government's current policy strategy sufficient for the development of the electronics sector?
The government is definitely helping the industry, but there are more issues that can be addressed, such as duties, VAT and other taxes. More flexibility in this regard would help the industry grow faster.
Moreover, this sector is not just for the country's customers and we should not be limited to just the local market. More benefits in terms of raw materials and development of backward linkage industries can not only help local sales, but also help us in the export market.
Chinese company to invest $76.41m to produce diversified products in Bepza EZ
Photo: PR
Photo: PR
Chinese company Mingda (Bangladesh) New Material Co Ltd is going to invest $76.41 million in Bepza Economic Zone (EZ) for producing diversified products. It is the highest amount of proposed investment from a single company who have signed agreements to establish factories in Bepza EZ.
The company signed an agreement with Bangladesh Export Processing Zones Authority (Bepza) to this effect at Bepza Complex, Dhaka today (15 June), reads a press release.
Ali Reza Mazid, member (Investment Promotion) of Bepza and Huang Shangwen, director of Mingda (Bangladesh) New material Co Ltd signed the agreement on behalf of their respective organisations. Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman witnessed the signing ceremony.
Bepza Executive Chairman thanked Mingda (Bangladesh) for choosing Bangladesh as well as Bepza EZ as their investment destination. He said that Bepza mainly emphasised on three things to establish a factory in EPZ –diversified products, amount of investment and employment.
He urged Mingda (Bangladesh) to start the construction of the factory as early as possible and requested for the optimum use of land.
Huang Shangwen, director of Mingda (Bangladesh) said that they have some factories in China. Now they are going to set up factories in Bangladesh due to increasing wages of the workers of China.
Shangwen said, they will mainly produce different types of artificial fabric. He wished to expand their business in Bangladesh considering the success of this project.
"We will start construction of the factory very soon keeping on mind of the safety & environmental issues and start production by the end of the year", he added.
Mingda (Bangladesh) will produce different cotton products including Imitation Silk Cotton, Tile Cotton, Needle Punched Cotton; different types of Artificial/Manmade Fabric, Artificial Fabrics including Geotextile; different Hospital products and Bags & Packaging Items including Geo-bag, Non-woven bag etc. 2830 Bangladesh nationals will get employment opportunity in the factory.
Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Investment Promotion) Md Tanvir Hossain, Executive Director (Enterprise Services) Md Khorshid Alam and Project Director of Bepza EZ Mohammad Anamul Haque were present during the signing ceremony.
Mentionable that Including Mingda (Bangladesh), Bepza signed lease agreements with total 21 companies of home & abroad to establish factories in Bepza EZ and their total proposed investment exceeded over $500 million.
