Pran-RFL to invest Tk154 crore in PPE, toy exports

[The Ronin]

Pran-RFL Group, one of the country's largest industrial conglomerates, is going to invest a staggering Tk154 crore in exports of personal protective equipment (PPE), medical devices and toys.

To this end, the group's subsidiary company Banga Plastic International, Wednesday, inked a deal with the Bangladesh Export Processing Zones Authority (Bepza) under the tax holiday facility at Adamjee Export Processing Zone.

Bepza sources said under the project, 850 tonnes of PPE–such as surgical face masks, KN95 masks, N95 masks, surgical gloves, shoe covers, mop caps, medical gowns, sanitary napkins, diapers, and hand sanitiser–would be produced annually.

The factory would also produce 4,857 tonnes of toys annually, including: baby toys, rider toys, slipper toys, sports toys, educational toys, building toys, alphabet toys, soft and hard animal toys, and more.

It will be the second famous brand in the country, who will invest to manufacturing of medical equipment. Pran-RFL sources said the project will create 1,900 jobs.

Rathendra Nath Paul, chairman of Banga Plastic and managing director of Pran-RFL Group, said it is a fully export-oriented investment outside the existing factory.

He said industrial production could begin within a year, and products worth about Tk20 crore medical equipment and 10 crore toy could be exported monthly.

"These products are made for the local market in our existing factory. At present, we are selling PPE worth Tk30 crore and toys worth Tk10 crore monthly. Once the new factory comes into operation, there will be some additions here deemed as exports," he added.

The conglomerate had been producing medical equipment, including surgical masks, even before the Covid-19 pandemic hit the country. It increased production capacity after the outbreak of the virus but has not hit the export market yet.

JMI Group, one of the leading and most diversified conglomerates in Bangladesh, has already begun exporting medical equipment to several countries.

Meanwhile, the demand for such goods is likely to continue to grow for as long as the pandemic continues. The market value of PPE products has already reached a few billion dollars, in just about six months since the pandemic began.

During this period, Bangladesh has become a frontrunner in supplying PPE products worldwide as local garment manufacturers continue to receive a considerable amount of work orders from international buyers.

As per the Bangladesh Garment Manufacturers and Exporters Association, there are 33 companies who are making and preparing to export PPE to meet global demands.

The largest garment manufacturer of Bangladesh, Beximco Group, has exported PPE to the US, the European Union and Canada after selling products on the domestic market.

The government has waived VAT on the manufacturing of PPE products and their raw materials, altogether, in the national budget for fiscal year 2020-21.

Pran-RFL to invest Tk154 crore in PPE, toy exports

Products worth Tk400 crore could be exported annually and 1,900 jobs could be created

tbsnews.net

 

[Fortress]

Toy exports, really? I can't imagine that going anywhere. Will probably just flood the domestic market and export to maybe a few African countries or Nepal.

I wonder how much pollution it'll cause without providing any net long-term benefit. They're plastic products after all. Pollution during manufacture, then even greater pollution when people throw their toys out.

BD needs to engage in domestic armories to produce weapons for self-defense. At least that serves a purpose. We are a nation doomed if we don't think about the worst case scenarios.

 

[Bilal9]

Every country has gone through these phases where they start exporting toys. It was Hong Kong and Japan in the 60's and 70's, then Korea/Taiwan in the 80's and 90's Then China the juggernaut arrived on the scene and still dominates, though cost of production and labor are climbing higher, even higher than Thailand and Indonesia.

For a while, "made in Japan" in the 60's implied crappy, poorly made merchandise, before their economy exploded and they moved up-market and became known for well-made electronics and cars. A number of Asian countries went through these phases. China is just earlier on the curve. Countries have to go through these phases because you cannot go straight from no industry to high quality products. Walton is an outlier, outside of the pack.

Now it is Bangladesh's turn to make and export toys.

The U.S. imports between 50%-75% of its toys from Chinese manufacturers (depending on the year), and my understanding is that EU countries follow similar practices. Chinese toy exports exceed $30 Billion yearly (non-game exports). Nothing to scoff at.

China's toy market exceeding $10b in 2019

The retail volume of China's toy market reached 75.97 billion yuan ($10.7 billion) last year, up 7.8 percent from the previous year, data from the China Toy & Juvenile Products Association showed.

www.chinadaily.com.cn

Their own market for toys exceeds $10 Billion yearly. Even 1% of the Chinese or US market for toys (very achievable) will be windfall for Bangladesh. But design/packaging will need to be first rate and plastic mold making expertise will need to grow locally. Current local standard of toys are sufficient for African or Indian lower-rung markets.

 

[bluesky]

Toy exports, really? I can't imagine that going anywhere. Will probably just flood the domestic market and export to maybe a few African countries or Nepal.

I wonder how much pollution it'll cause without providing any net long-term benefit. They're plastic products after all. Pollution during manufacture, then even greater pollution when people throw their toys out.

BD needs to engage in domestic armories to produce weapons for self-defense. At least that serves a purpose. We are a nation doomed if we don't think about the worst case scenarios.

No, toy production and export is a good option for BD. This sector will provide many jobs. As for pollution, please ask the govt authority to close the brick fields around Dhaka that causes pollution too high. The list may include also the buses and trucks that ply throughout the country without fitness. These are all pollution factory.

You are talking about producing armories. So, where from do you want the money to come? Plastic toys may bring in a few extra dollars that can be used to build your armory factories.