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The country’s ceramics industry has become a booming manufacturing sector due to rising demand on both local and international markets, attracting more and more companies to the sector over the years.
In the last ten years, the industry has witnessed 200 per cent growth in production, and has been capable of meeting 90 per cent of the local demand for ceramics products.
The growth seen in the sector has been largely due to demand on the domestic market.
Growth on the local market has surged from Tk 12.25 billion in FY2010 to Tk 51.45 billion in FY2020.
Local industries are now capable of manufacturing more than 20.5 crore square metres of tiles, 1.43 crore pieces of sanitary-ware and 25.88 crore pieces of tableware annually as of fiscal year 2019-20.
Growth in incomes and consumption of the middle income earners and a boom in the housing sector have helped the sector to boom.
As people’s incomes have increased over the years, demand for ceramic products has also risen in rural areas where the use of ceramic products in construction of houses and mosques is now relatively much common.
The foundation of the modern ceramic industry was laid in the country with the opening of Tajma Ceramic industry in Bogura in 1958, according to the review of Ceramic Bangladesh published in December 2019.
Mirpur Ceramics Works made its way to the industry in 1962 with the Pakistan Ceramic Industry, later renamed as People Ceramic Industry Limited, setting up operations in 1966.
After a gap of nearly two decades, Monno Ceramics started production of mainly tableware in 1985 followed by Bengal Fine Ceramics in 1986 and Shinepukur Ceramics in 1997.
As more entrepreneurs stepped in, they began adopting new technology to produce a diverse range of products such as tiles and sanitary ware.
The country’s export-oriented ceramic tableware industry was a surprise to many in the South Asia region in the 1980s when world-class porcelain dinnerware produced by Monno Ceramic hit the western markets, the review said.
Within 15 years, particularly after Shinepukur began operations in 1999, Bangladeshi table-top ceramic wares had carved a niche for itself on the global market.
Bangladesh Ceramic Manufacturers and Exporters Association president Shirajul Islam Mollah, also the China-Bangla Ceramic Industries Limited managing director, told New Age, ‘The ceramic industry has been growing fast in the country as the economy is growing at a rapid pace.’
He said, ‘Low labour cost and affordable gas prices have helped the industry to prosper. The sector is nearly self-reliant to meet local demand and now is focused on widening the export market.’
‘Large corporate groups are moving to the sector on the merit of the industry’s growth and potential. Akij Group has already joined the sector,’ he said.
Sixty-one of the 68 local ceramic manufacturers are currently operating in the country with investments worth around Tk 9,000 crore. These include 20 tableware, 30 tiles and 18 sanitary-ware manufacturers. The number of firms was 29 in 2010.
Domestic sales of tiles, sanitary ware and tableware was Tk 3,784 crore, Tk 863 crore and Tk 497 crore respectively in FY20.
BCMEA general secretary Irfan Uddin, also a FAAR Ceramics director, said that almost every ceramic industry maintained international quality which had helped it to acquire a big share of the international market.
Tableware accounts for more than 90 per cent of the country’s ceramic exports, he said.
The country’s ceramic sector meets 98.83 per cent of the demand for tableware, 91.89 per cent of the demand for sanitary ware and 80.1 per cent of the local demand for tiles.
Shinepukur, Monno and FAAR Ceramics are leading the local and international tableware market while RAK Ceramics, Abul Khair and Excellent Ceramics are leading the sanitary ware market.
The industry also attracts foreign investments that come mainly from China and the Middle-Eastern countries.
There are one foreign and six joint venture companies in the country, including RAK Ceramics, Fu-Wang and China-Bangle Ceramics.
The industry has yet to tap into the potential of the large global market though.
The industry earned Tk 327.3 crore from tableware export while Tk 3.62 crore from tile export and Tk 3.14 crore from sanitary ware export in 201920.
In the FY11, export from tableware was Tk 265.36 crore, from tile was Tk 8.43 crore and from sanitary ware was Tk 5.21 crore.
About 20 companies are currently exporting ceramic products with 65 per cent value addition.
The main export destinations are the European Union, the United States and the Middle-East.
The growth potential of both domestic and foreign markets indicates the industry may become a big foreign currency earner for the country.
China and India are among the major competitors for Bangladeshi ceramic manufacturers on the international market. However, lower labour costs put Bangladesh in a strong position.
However, around 95 per cent of raw materials for producing the items are imported from different sources to maintain international standards and is a major hurdle for the sector’s growth.
The sector imports its machinery, technology and raw materials, including white clay, sand, and pigments, from different countries.
BCMEA vice-president and DBL Ceramics Limited managing director Abdul Jabbar said that most ceramic makers were recovering from the shocks induced by the coronavirus outbreak as local sales began to increase.
‘DBL Ceramics now focuses on expanding its export market by introducing innovative designs,’ he said.
Around five lakh people are directly and indirectly involved with the sector, he said.
