In Bangladesh, the tile manufacturing industry has grown significantly over time. The number of tiles company in Bangladesh is increasing, and some of the top companies include DBL, RAK, Shinepukur, Star, etc.
Besides meeting more than 80% of domestic demand, Bangladesh now exports tiles abroad. And the sector has ranked among the nation’s highest earners of international trade, as seen by the development tendency.
Let’s get an overview of the tiles industry of Bangladesh.
How big is the tiles industry in Bangladesh?
Several reports show that there are more than 100 tile manufacturing companies in Bangladesh, including both registered and unregistered.
According to Bangladesh Ceramic Manufacturers and Export Association (BCMEA), there are 51 companies listed though many of them have expired their membership.
Let’s get an overview:
- Number of tiles companies: 66 local brands
- Total ceramic manufacturers: More than 100
- Net domestic market worth: 6000+ crore.
- Export value target: 3.5 billion as of the 2019-2020 fiscal year.
- Total employment: 5,00,000 people
What challenges need to be overcome in the tiles industry of Bangladesh?
So far, Bangladesh’s ceramics industry has flourished as an industrial sector, profiting from market growth in both local and global markets. But there are still gaps to be filled.
Using energy-saving technologies in production
Given their restricted access to electricity, local ceramics manufacturers have been battling the requirement for power-saving manufacturing with lower release of carbon dioxide.
The ceramics sector uses a lot of energy, and the local plant systems are frequently inefficient. Overseas firms are anticipated to help local manufacturing become more energy-efficient by bringing power-saving machinery or equipment, partnering with regional businesses through joint ventures, etc.
Automation in production
It is predicted that local ceramics manufacturers will enhance their quality management manufacturing through the modernization and automation of plant infrastructure.
Through partnerships with local companies, foreign investors are anticipated to come up with the modernization of local manufacturing operations. It includes innovation and education in quality management, capacity planning, machine maintenance, and use.
Irregularity in gas supply:
Natural gas is not only this industry’s main resource but also determines how well products are produced. Compressed natural gas or liquefied natural gas are being utilized as substitutes. However, they could be more profitable due to this sector’s significant challenge of limited quantity.
Over-dependence on imported raw resources:
Our ceramic industry depends greatly on outsiders. Countries like China and India are competitors, yet our ceramic industries tend to import feldspar, clay, and quartz from them. So, depending on these countries for raw materials is a major obstacle.
Tax and heavy duties:
Companies pay large sums due to additional charges and taxes imposed on importing raw materials.
Inconvenience in adjusting price:
Pricing is difficult to modify since gas is the main component of this sector, and prices are frequently affected by gas price hikes. Buyers may choose cheap Chinese items since they are unhappy with the instability.
Resources are scarce in this business, which is affected by a lack of skilled workers, advanced industrial engineering processes, necessary equipment, and worldwide standards for quality and testing control laboratories.
How to overcome the obstacle?
Due to its heavy reliance on imports, this industry needs immediate help from the government in the form of zero import charges, export incentives, and a reduction in supplemental obligation. The RMG industry benefits from zero-duty imports, and ceramics, as the next promising industry, needs to offer comparable prospects for long-term expansion.
White clay is one of the most important components of making ceramic items. Mymensingh can produce white clay of up to 2 million tons, but we still import it. Not only that, Chittagong, Netrokona, and Sherpur also produce surface deposits of white clay. We should utilize the best of these sources.
Last but not least, this sector urgently needs advancements and adequate training initiatives to overcome the gap between the supply and demand of trained labor. Thus, the sector may quickly reach its full potential.
The ceramic tiles industry is one of the promising industries in Bangladesh. Whereas it may bring us a lot of foreign currency, it can also reduce the dependency on export products if cared for properly. Hopefully, the article will help you gain a complete overview of the ceramic tiles industry in Bangladesh.