Made in Bangladesh

[Bilal9]

Meghna Group, a leading bicycle exporter in Bangladesh, has entered a joint venture deal with a famous Italian brand -- Selle Bassano -- to make saddles and bags for bikers across the world.

The agreement was signed last month at the Euro Bike Show in Germany, the biggest event for bicycle and parts makers in the world.

Meghna will own 70 percent, while Selle Bassano the rest, in the Selle Bassano Bangladesh that will start production in March next year, according to the deal.

“It (the joint venture) will help us increase our bicycle exports to Europe and grab new markets in the Far East and Southeast Asia, the United States and Mexico,” said Mizanur Rahman, chairman of Meghna Group.

Rahman said Selle Bassano is one of the top three saddle makers in Europe with a global reputation. Two other Italian saddle makers have joint venture companies in China and Vietnam, he said.

Bangladesh is one of the world's top 10 bicycle exporters with nearly $113 million worth of exports in fiscal 2013-14. Presently, Taiwan, Thailand, Sri Lanka, Indonesia, the Philippines and China are ahead of Bangladesh in exports. New competitors, such as Tunisia, Cambodia and Malaysia, are coming up fast to grab shares from the rising bicycle export market.

Italy is the leading producer of bicycles in the European zone. Some of the companies in Italy make world's finest materials, especially saddles for bikes.

Luthful Bari, director (operations) of Meghna Group, said both companies have agreed to set up a company in Bangladesh from where they will export saddles and bags to global markets.

“We will be able to grab new markets with our diversified products,” Bari said. Initially, the new venture will produce one lakh saddles per month and production will increase on demand, he said.

Meghna Group has three bicycle assembling units -- Transworld Bicycle, Uniglory Cycle Industries and Mahin Cycles. Meghna manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes.

Currently, some of the world's leading companies, including Raleigh, PCM and Motor and Sports of the UK, Aldi of Holland, Bacht-enkirch Interbike of Germany, M&F De Schee-maeker and Formula Cycling of Belgium, import bicycles from Meghna.

There are three other bicycle makers in Bangladesh -- two of them are in export processing zones and the third one is Pran-RFL, another local conglomerate which has come into the business recently.

Bangladesh exported bicycles worth $112.89 million in 2013-14, up from around $105 million in 2012-13 and 2011-12.


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Product of Karnaphuli HaoJue JV

Upcoming Product w. Retro Styling

 

[Bilal9]

Exporting of Bicycles: A new window for Bangladesh’s economy

Bicycle exports are the single largest product export within Bangladesh’s engineering sector, contributing to about 7.5% of our engineering exports. Exports began around 1995 and have been growing gradually since then. Bangladesh’s bicycle exports are highly concentrated in three key markets: The UK (64%), Germany (14%), and Belgium (9%). The bicycle and bicycle parts export industry has emerged relatively recently in the industrial landscape of Bangladesh.

Investment opportunities emerged for capturing shares in the EU market after the imposition of anti-dumping duties (AD) on Chinese exporters. The first AD measures were imposed in 1993 -- after continuous lobbying from the European Bicycle Manufacturers Association, the EU imposed antidumping duties of 30.8% on bicycles made in China. This duty provided an opportunity for existing producers and new investors in other countries to enter the lucrative bicycle market of the EU (estimated at $7bn in 2011). Potential linkages with the rest of the economy are potentially substantial in this sector, given the nature of the product as an assembly of a large number of parts.

The bicycle manufacturing sector in Bangladesh is split in two distinct supply chains: Modern export-oriented OEM (original equipment manufacturer) manufacturers, and the small-scale cottage bicycle and bicycle parts industry catering exclusively to the local market. These two supply chains operate independently with extremely limited interactions and linkages between the two, owing to differences in market demands. There are no suppliers in Bangladesh that occupy the middle part of the supply chain, consisting of specialised parts and component manufacturers, local suppliers cannot produce parts and components of the quality required for export-oriented OEMs.

Suppliers of bicycle parts and components in Bangladesh historically have been exclusively oriented towards the local market, where quality requirements and standards have been low. Local producers of parts and components have few incentives to make significant quality improvements to their products geared solely to export market demands.

There are strong incentives for small firms to be exclusively oriented towards the local market. Bangladesh has a cottage industry of small-scale bicycle assemblers, parts manufacturers, and retailers, with beginnings dating to the 1970s. This cottage industry remains under-studied, and statistical information is extremely limited. Nevertheless, an estimated 1,500–2,000 people work in the Bongshal market in businesses directly related to bicycle assembly, component manufacturing, and retailing. Firms are small (typically, up to 10 employees), have extremely old machinery (in many cases over 30 years old), and are limited in their ability to graduate out of the low-quality segment of the market.

Typically, many small firms combine parts manufacturing with bicycle assembly and retailing of “complete knock down” (CKD) and/or “semi knock down” (SKD) kits imported from China and India. The strong incentive for firms to focus on the domestic market comes from low tariffs on inputs and high tariffs on output (56%), creating effective protection rates that average 219% for the domestic market. Suppliers of bicycle parts and components have been exclusively oriented towards the local market, where quality requirements and standards have been low. Local producers of parts and components have few incentives to make significant quality improvements to their products geared solely to export market demands.

Alongside the local cottage bicycle industry, foreign direct investment was critical to the emergence of the bicycle export sector. Malaysian investors were the first to seize the EU market opportunity by establishing the first bicycle exporting firm in Bangladesh in 1995. A domestic trading group, Meghna, was the next firm to enter the bicycle export manufacturing industry. Meghna’s founders had been involved in bicycle and parts trading in the 1960s, manufacturing bicycle spokes in the 1970s and doing bicycle assembly for the local market in the 1980s.

After diversifying and becoming a highly successful trading conglomerate, the Meghna Group grew to become the largest bicycle and bicycle parts manufacturer in the country. It now has two factories dedicated to the export market, two factories dedicated to bicycle manufacturing for the local market, and five bicycle components factories. The third and last market entrant in the bicycle exporting industry is German Bangla Bicycles, established in 2009 as a joint venture between a German bicycle manufacturing firm (Panther) and a Bangladeshi company (Powertrade Engineering) whose major business interests are in heavy manufacturing (telecom towers, electrical grid infrastructure, and so forth). Like the other two firms, German Bangla is an OEM, but by and large only for European brands.

The share of labour costs in the production of a bicycle is quite low across all manufacturing stages in Bangladesh. The share of labour costs is about 10% at the frame assembly stage, 13% at the wheel assembly stage, and 2% at the final bicycle assembly stage. When all stages of production are included, direct labour costs associated with producing a bicycle in Bangladesh range from $3–$5 per bicycle, depending on capacity utilisation at any given time and on production location. 63 Bicycle manufacturing across all stages, including frame and wheel manufacturing and assembly, is relatively capital intensive.

As a consequence, bicycle manufacturing can be, and is, successful in countries with relatively higher labour costs than Bangladesh. In China, for example, the average monthly payroll per employee in the transport equipment industry (including bicycles) is $500. In Taiwan, the average monthly payroll in the industry is $1,300. Notwithstanding these comparatively high labor costs, producers in these countries are market leaders in the bicycle industry: China is the world leader in bicycle exports in general, and Taiwan is among the leaders in medium-to-high end bicycles.

Prospects of bicycle export

The lack of a local base of suppliers of quality parts and components has significant implications. First, OEMs that do not have deep enough pockets for investing in additional parts and components manufacturing must source parts in foreign markets. Currently, two of the three Bangladeshi OEMs import parts worth 60-75% of their ex-works bicycles’ export value. Interviews suggest that these producers will likely increase foreign content of parts and components in the future to the maximum allowed by EU rules of origin (RoO).

Second, OEMs that are strong financially, like Meghna, have made significant investments in parts and components manufacturing. For bicycles sold locally, Meghna’s share of own parts and components is estimated at 80%, and for exported bicycles, up to 45%. This, combined with the issue of scale economies in parts’ manufacture, probably limit opportunities for independent suppliers of export-quality parts and component suppliers to emerge. In modern bicycle production, scale economies and precision engineering are clearly important, and this has allowed China and even higher wage countries to remain competitive in different segments of the bicycle market. In Bangladesh, the modern export firms have vertically integrated to partially overcome the lack of a modern parts supplying industry, but rely on imports for the bulk of their parts’ needs. This approach has meant that their export prices are 10-20% higher than China’s export prices.

The third implication stemming from foreign sourcing of export-quality parts is a negative impact on lead times. For example, Bangladeshi exporters’ lead times to the UK market are estimated to be 30–50% longer compared to Chinese exporters. It is estimated that the bulk of the lead time gap arises from the Bangladeshi firms’ need to source a large part of parts and components from abroad, which can take up to a month after all the required paperwork and shipping. Chinese exporters can rely on a vast local supplier base that enables them to source parts and components within a few days.

Finally, Bangladeshi OEMs’ competitiveness across all stages of bicycle production also often suffers from unnecessary bureaucratic practices. Giving up all our personal interest we should seize and properly utilise our opportunities so that our exporters can smoothly export their bicycle products abroad. If we can do this, certainly it will add further income to our export lead products which can further stimulate and increase a share of our economy and can make our economic performance more strong and resilient.

Courtesy Dhaka Tribune

 

[Bilal9]

A Window on the heavy electrical item manufacturing companies in Bangladesh.

Betelco is a familiar name locally for all types of transformers (50 KVA to 10 MVA) and switchgear for power and telecom needs. They supply the govt. electrical utilities as well as private power generation units existing in almost every factory.

100 KVA Transformer in Export package

BETELCO Group HQ Dhaka

 

[Bilal9]

BRB Cables in Kushtia, Bangladesh makes heavy electrical cable since the 1960's, they have evolved their product line into diverse items like High Tension (33KV) electrical transmission conductors and MCB for modular usage by now.

BRB Modular Miniature Circuit Breaker (MCB)

http://www.brbcable.com/images/new-products/MCB.pdf

 

[Bilal9]

So - one can make things in Bangladesh, but how to ship them in or out? Container logistics has been taken up as a business by the larger business houses locally in addition to govt. operated ports. KDS logistics is a recent entrant.

 

[Bilal9]

Article and statistics about refrigerator manufacturing in Bangladesh

Developments in Bangladesh | Page 21

 

[Bilal9]

Naval and Marine Products - some recent examples...

 

[Bilal9]

Many more to come - stay tuned......

 

[Bilal9]

Large MPC carriers ~7000 tons made by Western Marine

750 pax PASSENGER CRUISE SHIP made for Bangladesh Inland Water Transport Corp. (BIWTC)

One of Two passenger launches made for the Karachi Port Trust

 

[Bilal9]

Ceramic Export Booms - Defying US Trade Benefit Suspension​

Ceramic exports moved up by 26 per cent in 2014 financial year as it showed resilience even after the suspension of Generalised System of Preferences by the US government, industry executives said.

The sector brought in US$47.5 million in FY'14, compared with $37.7 million a year ago, data from the state-linked Export Promotion Bureau (EPB) showed.

The US government suspended the GSP facility for Bangladesh exports in June last year. Around 35-40 per cent of the country's export is destined to the US market.

Bangladesh used to export ceramic table wares, furniture, toys, plastic materials, tents, tobacco products etc., under the GSP facility meant for the least developed and developing countries.

They said a diversified product base with competitive prices helped the sector boost export to the US, the European Union and other countries.

The executives said the industry has taken some initiatives to explore new markets, helping the sector earn $200 million in exports in the next three years.

The Tk 20-billion-sector even surpassed its shipment target by nearly 13 per cent, officials at the EPB said.

"Demand of our products in the US, the EU and other countries has been increasing gradually, helping export to rise," Chief Operating Officer of Shinepukur Ceramics Rizvi Ul Kabir told the FE.

He said shipment would have been more had the US not suspended the GSP.

"Outstanding performance in other markets helped us raise export, despite nominal growth in US," he said.

"Skilled labour force is our great resource and it also blessed ceramic industry like other sectors in the country," he added.

He said the industry is using the most advanced Bone China technology and the availability of labour is relatively easy compared with the developed nations.

"Bangladeshi companies are producing high quality ceramic and porcelain wares, which have been able to explore markets," he said.

Executive director of Paragon Ceramic Industries Ltd Md Ashek Alam said the quality of products, such as dinner sets, tea and coffee sets, is much better than that of India and China.

Mr Alam said exports will increase more in the coming years as the government has reduced import duty on a few raw materials.

"Assurance of uninterrupted power and gas supply can make us one of the three largest global ceramic exporters in the next six years," he added.

The country exports ceramic products to about 50 countries including, the US, the EU and Canada, tiles to India, Nepal and Bhutan, and sanitary wares to the Middle East, specially the UAE.

Raw materials for ceramic industry are imported from China, Rumania, Indonesia and Germany.

More than a dozen of ceramic factories are operating in Bangladesh, employing more than 0.1 million workers.

 

[Bilal9]

S.C. Johnson acquires three brands from Bangladesh firm

April 24, 2015

S.C. Johnson & Son Inc. said Friday it has acquired three brands from Advanced Chemical Industries Limited, a company based in Bangladesh.

The move adds ACI Insecticides, Angelic Air Care and the Vanish Brand of Toilet Cleaners to S.C. Johnson's product portfolio, which also includes Glade, Pledge, Scrubbing Bubbles, Windex and Ziploc.

"These brands will help us strengthen our footprint in the growing Bangladesh market," said Fisk Johnson, S.C. Johnson's chairman and CEO, in a statement.

S.C. Johnson, a private firm based in Racine, generates $9 billion in sales annually and employs about 13,000 people globally. The company did not disclose the purchase price for the transaction.

Note: Reportedly the buy was valued at 250 crores for all three valuable brands. What happens next is anyone's guess...

Sorry Bengali only,

বণিক বার্তা | ২৫০ কোটি টাকায় সেরা ব্র্যান্ড বেচে দিল এসিআই

 

[Mr.Nair]

I think bangladesh industry is much developed than industries in pakistan

 

[Bilal9]

Partex Jet Pumps for Irrigation Use....

I think bangladesh industry is much developed than industries in pakistan

To say this - you need to know enough about industries in Pakistan....

I for one know that this may simply not be the case.

But Pakistan is also facing odds that we do not face...

In any case this is off-topic

 

[Bilal9]

Unit – 3 of Bashundhara Paper Mills Limited, formerly known as Bashundhara Tissue Industries Limited, was set up in 1995 as the country’s first basic tissue manufacturing factory at the face of growing popularity of tissue with fast changing urban lifestyle and elevation of living standards as a whole. It is now manufacturing wide range of products including facial tissue, pocket tissue, wet tissue, green tissue, sanitary napkin, baby diaper, toilet tissue, kitchen towel, cigarette paper, glassine paper, and hard tissue, hand gloves and paper carton container. The import-substitute industry has attained ISO 9002:1994 certification for its quality management system and ISO 14001:2004 certification for its environment management system.

Units 1 and 2 make several other home use products as seen below e.g toilet and facial tissue, kitchen towel and other specialized paper. Facial and other tissue has been produced locally since the late seventies.

 

[Bilal9]

Partex institutional furniture