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The Financial Express

Bolstering ceramic sector

| Updated: December 17, 2017 21:30:52


Bolstering ceramic sector

The country's ceramic industry, once best known for high quality tableware, thanks to few innovative entrepreneurs, has over the years witnessed a multi-dimensional growth. It has now developed to a stage where a host of other allied products including tiles and sanitary ware have been brought to meet the growing domestic as well as overseas demands. The potential of the sector has doubtlessly grown hugely in the past years with more and more investments coming its way. This issue, among others, was rightly highlighted in the recently-concluded Ceramic EXPO Bangladesh-2017 held in the capital. The Expo, beside bringing to light the thriving growth the industry is experiencing, has more importantly opened up the prospects ahead and focussed on how to go about tapping those.

From the developments it is very unlikely of the sector to falter given the market demand at home and abroad. And if provided with the required facilitation, the country's ceramic industry is meant to go a long way, that too competing with formidable rivals. Reports have it that there are currently 62 manufacturing plants in three categories of ceramic products in Bangladesh. Such categories include tableware, tiles and sanitary ware, producing annually 250 million pieces, 120 million square meters and 7.5 million pieces respectively. According to the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), presently the country exports ceramic products to around 50 countries. The total amount of investment in this sector is $ 1.0 billion and the annual income is approximately $50 million. Given the prospects, the earnings are far smaller than they should be. But the important point is that this growth has taken place in less than a decade, and with increasing demand both in domestic and international markets, all major Bangladeshi ceramic companies have been expanding their plants and operations. The industry has experienced 200 per cent growth in production in the last five years. Notably, it has been able to attract foreign investors too, from China and the Middle Eastern countries. 

It is worthwhile to point out here that the major breakthrough of Bangladeshi ceramic products in international markets was caused by up-end tableware products since the nineties. As quality tableware producers were very few because of highly capital intensive nature of investment, overseas markets did not expand much at that time. However, with increased investment in the other segments of ceramic products in the years that followed, the country is now well set to reap the benefits through increased investment and quality assurance.

One of the major constraints facing the industry, despite its success, is scarcity of gas. Insufficient supply of gas seriously affects regular production that eventually tells upon export shipments on time. This industry is solely dependent on gas unlike other industries which can be run on diesel. It is therefore critically important for the government to look into the fact as a matter of utmost priority. There are other issues too, like soft-tem financing and incentives on export. These issues should also be adequately addressed. Furthermore, there is the need for developing port and communication facilities to fast-track import of raw materials and delivery of finished products.

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