Toymakers are looking to widen their market share at home and abroad through enhancing their capacity with the help of foreign technologies, especially from China, industry-insiders said.
They also have a plan to double their investment to Tk 20 billion by 2020 to boost the toy sector.
Presently, this sector meets around 60 per cent of demand for toys in the country, they said.
In 2010, the import of toys totalled Tk 50 billion, which has now come down to Tk 20 billion, as the local manufacturers enhanced their skills and developed a professional depth of know-how of the industry over the time, according to the Bangladesh Toy Merchants, Manufacturers and Importers Association.
This sector is contributing to economy through creating job opportunities among the youths in rural areas where scope of employment is very limited, the association leaders said.
Buoyed by the success of local manufacturers, global toymakers are now coming to Bangladesh to team up with them to set up a toy manufacturing hub, the local manufacturer said, adding that such a move would help Bangladesh become a major toy exporting country in near future.
Three foreign factories -- the Hashy Tiger Toy factory located in Comilla, Sonic Ltd. in Uttara Export Processing Zone in Nilphamari, and a Chinese toy factory in Gazipur's Bay Economic Zone -- are now exporting toys to the European countries. In 2016-17, they together exported toys worth $15.8 million.
The foreign investment in this sector is estimated nearly Tk 5 billion to 10 billion and the figure is likely to increase to Tk 20 billion by 2020.
Founding President of the importers' association Shahjahan Majumder told The FE that the country was totally dependent on China until 2010 for meeting the demand for toys and since then the toy industry has developed significantly.
The total investment in this sector could exceed Tk 20 billion in a couple of years, he said, adding that more than 100 factories are now churning out various types of toys.
He also said, "China has been exporting toys worth billions of dollars from its toy city. We also need such a toy manufacturing hub where all manufacturers can work together to boost this sector."
In absence of such a manufacturing hub and other facilities, local toymakers find it difficult to export their products, he added. "The government should build a toy city for the betterment of the industry."
The local entrepreneurs are now seeking to team up with Chinese toymakers as their country is considering shutting down the toy industry terming it less profitable and small industry, said Mr Shahjahan.
Nowadays, it has also been difficult for the manufacturers to obtain trade licence, he said, adding that some 10 or 15 factories are running without such documents.
Presently, some 100 toymakers are producing 800 to 1000 toy items in the country. Of them, Hakkani Hark Group, Kabir Garden Industries, Aman Plastic Industries, Sabbir Plastic Industries, Sumon Plastic Industries and Everest Toys hold the major market share in the toy market.
Besides, 5000 to 7000 items of toys are imported from China.
Sabir Ali, chairman of Sabbir Plastic Industries, told the FE that his company has already invested around Tk 200 million and has a plan to double it in a couple of years. The company has 300 workers.
"If the government allocates toymakers an area with good working condition where foreign buyers can visit, we would be able to create the possibilities of exporting our products," Ali said.
He also called on the government to reduce the import duty on raw materials so that they can earn more and expand their business.
Shafiul Islam Sagar, managing director of Everest Toys, said, "We have invested Tk 150 million and would double it in the next year as there is a great potential in this sector."
"Like us, every company now plans to double their investment," he added.
Everest Toys, which employs 250 people in its factory, has a target to export its products within five years, if the government provides facilities for this sector, Sagor said.
Local manufacturers are mainly producing toy gun, music and light push car, tricycle basket, relax baby chair and toy furniture set, while the three foreign companies are making tricycles, electric or battery-operated cars, dolls, electric dolls, pedal cars and others.
The reliance on imported toy, toy parts and mould is declining day by day, as the local industries continue to flourish greatly due to its innovative, creative, technical initiatives, said industry insiders.
The imports totalled Tk 50 billion in 2011, Tk 40 billion in 2012, 35 billion in 2013, 30 billion in 2014, 20 billion in 2015, 25 billion in 2016, and Tk 20 billion in 2017.
As many as 20,000 workers are currently employed in the industry and 7000 wholesale shops are dealing with toys across the country. The livelihood of about two million people is linked to the industry.
When contacted, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Shafiul Islam (Mohiuddin) said the apex trade body has added the toy sector to the list of potential industries considering its current growth and future prospects.
At the same time, they have approached the policymakers for necessary supports to the potential sectors which can contribute to exports, he added.
"We are also regularly updating the authority concerned on the problems facing the businesses," he added.
