[🇧🇩] Ceramic Industry in Bangladesh

[Saif]

Source : https://www.thedailystar.net/supplements/overview-bangladeshs-ceramics-industry-1498489

An overview of Bangladesh's ceramics industry

The ceramics industry is a booming manufacturing sector in Bangladesh. Over the years the industry has flourished immensely. While it caters to 85 percent of the local demand it also exports quality ceramic products to international markets. The growth trend is an indication of the industry's potential to be one of the top foreign exchange earners of the country.

The ceramics industry in Bangladesh started its journey in 1958 with the establishment of a small manufacturing plant for porcelain tableware by Tajma Ceramic Industries in Bagura. Currently, there are more than 60 ceramic manufacturers in the country. Another 20 will hit the market by June 2018.

The local ceramics industry mainly produces tiles, tableware and sanitary ware. According to Bangladesh Ceramics Manufacturers and Exporters Association (BCMEA), the yearly production capacity of the local ceramics industry is as follows: tableware (250 million pieces), tiles (120 million square metres) and sanitary ware (7.5 million pieces). Value addition in ceramics stands at nearly 65 percent. To cater to the increasing demand of ceramic products all major Bangladeshi ceramic companies have been expanding their plants and operations. The local industry is also actively exploring the potential of manufacturing advanced ceramic products such as industrial ceramics for spinning and textile factories, medical ceramics, ceramic plate for bulletproof jackets, and so on.

Currently, more than 500,000 people are engaged in the local ceramics industry. To create skilled manpower for the sector specialised departments and institutes have been established in the leading universities of the country such as the department of glass and ceramic engineering (GCE) in Bangladesh University of Engineering and Technology, Rajshahi University of Engineering and Technology, Bangladesh Institute of Glass & Ceramics, Faculty of Fine Arts in Dhaka University, and so on.

Bangladesh's ceramics industry has carved a niche in the global market. According to BCMEA, the industry earns more than USD 42 million through export. Of the different ceramic products, tableware is exported to more than 50 countries including the US, Canada, European Union, Australia; tiles to India, Nepal and Bhutan; and sanitary ware to the Middle East, especially to the UAE. Tableware accounts for more than 90 percent of Bangladesh's ceramics export.

One of the main challenges to the growth of the ceramics industry is inadequate supply of natural gas. Natural gas is not only the key energy source for the industry but also crucial for maintaining quality of the products as the local natural gas does not contain any sulphur which makes locally produced ceramic products look brighter and shiny. Shirajul Islam Mollah MP, President of BCMEA, shares that the government has assured them of resolving the crisis by June or July next year when liquefied natural gas (LNG) will come into operation. It will reduce the burden on the natural gas reserve and productive sectors, and the ceramics industry in particular will receive supply of grid-gas.

There is shortage of raw materials for ceramic goods in Bangladesh and manufacturers are heavily dependent on imported raw materials. Moreover, the ceramic companies have to bear a huge amount of cost due to duties and advance income tax on import of these raw materials. The ceramic manufacturers urge the government for zero-duty benefits on import of raw materials and 25 percent incentive on exports like the garments industry.

They also feel the urgent need for developing the port and communication facilities to fast-track import of raw materials and delivery of finished products.

The ceramics industry leaders also highlight the importance of building a strong backward linkage. Many tools and machineries that are currently being imported can be manufactured in the country. It will increase efficiency as well as reduce production costs.

Bangladesh's ceramics industry has experienced 200 percent growth in production in the last five years. This growth momentum is expected to sustain for a considerable period of time thanks to the robust development of the real estate sector and rising living standard of the people in the country. The industry is also positioned to expand rapidly in the global market with its high-quality products, low labour costs and creative entrepreneurs. Traditional manufacturers of ceramics such as Italy and Spain have been experiencing difficulties in remaining competitive due to rising labour cost and the ongoing global financial crisis. Therefore more orders are being placed to low-cost countries like Bangladesh. In terms of quality Bangladeshi ceramics can easily compete with the products of its close competitors China and India. Now, if the industry gets proper incentives and support from the government, it has all the potential to be one of the top ceramics-exporting countries in the world. Much like the garments industry this would be another manufacturing success for Bangladesh.

 

[Saif]

Ceramics Industry in Bangladesh: Shining Amidst Challenges

Ceramics Industry in Bangladesh: Shining Amidst Challenges

Ceramics have come a long way from their humble beginnings more than 26,000 years ago as primitive pottery and figures made from burnt clay and other minerals. From the tableware in our dining tables to the insulators in automotive parts, ceramics is more encompassing in our lives today than we perhaps realise. Starting its journey in the late ’50s, when Tajma Ceramics Industries Ltd. started its business, the ceramics industry in Bangladesh has been one of the rapidly growing manufacturing industries, with around 68 producers currently (of which only five companies are listed), making ceramics products like heavy clay (e.g., pottery, terracotta), tiles, sanitary ware (e.g., basins, toilet bowls, plumbing fixtures), insulators (e.g., pin insulator, disc insulator), and tableware (e.g., dinner plates, bowls, etc.). Bangladesh’s ceramics market has grown to more than BDT 6,000 crore with a multidimensional growth of 20% annual growth in the domestic market and 26% growth in the export market (2019), thanks to stable economic growth coupled with an increase in people’s disposable income, rapid urbanisation, and a variety of housing options. Currently, the industry caters to around 80% of the local demand. About 95% of tableware, 75% of tiles, and 85% of sanitary ware demand are met through local production. About 48,000 people are employed directly by the industry, while it is believed that over 500,000 others are employed indirectly. The industry promises immense potential, but it is not without some major challenges to be overcome to sustain its growth, especially in the form of the ongoing energy crisis and raw material, shipping, and transportation prices all skyrocketing as a result of the Russia-Ukraine conflict.


Global Market Scenario

According to Statista, the value of the world ceramics market in 2018 was estimated to be USD 229.13 billion. The size of the global ceramics market is expected to reach close to USD 408 billion by 2025. One of the most common uses for ceramics is in tiles, which come in a variety of shapes and sizes that are ideal for use in mosaics, flooring, roofing, and other applications.


Sharp Rise in Tiles Manufacturing Worldwide

Global tiles production grew by 7.2% in 2021 to 18,339 million square metres from the 17,101 million square metres reported in 2020. The outcome illustrates the sharp rise in tiles demand across all regions, which caused global tiles consumption to climb to 18,209 million square metres (+6.8%).

Asia now produces 13.6 billion square metres or 74% of the world’s total production, as per Ceramic Tile and Stone Consultants.

This favourable outcome was mostly brought about by an increase in production volumes in China, India, and Indonesia. As of 2020, China was also the world’s largest consumer of ceramic tiles (together with Asia in a macroregional comparison), according to Statista’s research. Total output on the European continent was 11.6% of global production. North America grew 17.4%, whereas Central and South America grew 24.5%. In 2021, only Africa had a decrease in output (-3.3%).

Global Exports Topping 3 Billion Square Meters

According to the study of Ceramic Tile and Stone Consultants, the EU exported 1,055 million square metres (+14.3%), 35% of the world’s total. Central and South America (+36.3%), North America (+10.7%), and Africa (+4.6%) all increased exports. In 2021, the EU exported 75.7% of its production, the most of any continent or macroregion. Spain reclaimed second place as the world’s largest exporting country in 2021, while India fell to third.

Ceramics Engineering and Non-Tiles Ceramics Applications

Tiles are only one example of a large number of goods and industries that make use of ceramics. Porcelain is delicate and exquisite, whereas ceramic dishes and pottery are long-lasting and aesthetically pleasing. The fields of ceramics engineering and growing demand for advanced ceramics across a wide range of industries (e.g., dental implant technologies utilising high performance ceramics) is where traditional ceramics become cutting-edge and innovative. For instance, thermal ceramics can withstand temperatures of almost 2,000 degrees Celsius without breaking down. As per Statista, the transportation, petrochemical, and chemical sectors, among others, will contribute to thermal ceramics’ nearly USD 4 billion worldwide market value by 2024. By 2026, the global market for glass ceramics, another type of technical ceramics, is expected to be worth about two billion dollars.

Background of the Ceramics Industry in Bangladesh

Bangladesh’s ceramics industry is one of the fastest growing manufacturing sectors in the country. Local demand for ceramic items continues to rise as the country’s economy expands and urbanisation accelerates. Following the COVID-19 outbreak in 2020, the industry faced a 30% sales drop. Four of the five listed ceramics companies reported profits in 2020, although at lower rates than in 2019, while one declared losses. For example, the revenue of RAK Ceramics, the market leader in tiles and bathroom fittings, fell by 9.82%, and profits fell by 58.81% in 2020, while in the case of Shinepukur Ceramics, revenues fell by 4%, although profits increased 77%; at Standard Ceramics, revenue increased 17%, but profits dropped 71%; and in the case of Fu-Wang Ceramics, revenue increased by 26%, but profit slipped 0.99%.

The industry has, since then, largely recovered from the pandemic’s shocks, mainly thanks to the recovery in the forward linkage of the construction sector. This underscores the market’s fundamental characteristics, particularly the government’s emphasis on affordable housing, which has allowed the sector to rebound. The country’s tiles and sanitary ware business has also benefited from expanding disposable incomes, a growing desire for larger and roomier houses, competitive mortgage rates, and an overall young population. The manufacturing capacity of Bangladesh’s ceramics sector increased by approximately 200% between 2008 and 2018, a USAID study found. The companies produce 50 lakh pieces of sanitary ware, 15 crore square feet of tiles, and 25 crore pieces of tableware annually. Meanwhile, sales of ceramics reached BDT 6,000 crore in the 2020-21 fiscal year, as reported by the Bangladesh Ceramic Manufacturers and Exporters Association. Of that total, BDT 1,000 crore was spent on kitchen and bathroom accessories. Tiles were a big seller for domestic producers that year, bringing in BDT 4,300 crore, while imports brought in BDT 700 crore.

Leading Market Players and Export Trends/Destinations

According to The Business Standard, of the 68 ceramics manufacturing facilities in Bangladesh, 18 of them produce sanitary ware, 20 produce tableware, and the rest produce tiles.

Tiles Market

More than 60% of the market for tiles is controlled by five major manufacturers. RAK and Akij collectively control approximately 32.32% of the market for tiles, each possessing around 16% of the market share, followed by strong competitors such as Greatwall, Star, Abul Khair, and Mir Ceramics. Other regional brands and a few imported Chinese brands account for more than one-third of the tiles market. Among the other brands is DBL Ceramics Ltd., which began operations in its fully automated plant at the end of 2016. Modern equipment and technology have been installed by the company to increase its daily manufacturing capacity to 35,000 square metres. It also established a strong supply chain across the country.

Tiles Market Share


Tableware Market

In terms of the market share for ceramics products across the country, Shinepukur Ceramics, a subsidiary of the Beximco Group, holds 18% of the tableware market, estimated to be valued at over BDT 500 crore, and 24% of all exports during the 2018–19 fiscal year. One of the largest and oldest tableware producers, Monno Ceramics, founded in 1984, enjoys a solid reputation domestically and abroad. The business, which employs 2,000 people, can produce around 250,000 and 1.5 million pieces of porcelain and bone china each month, respectively.

Sanitary Ware Market

About one-third (30%) of the BDT 1,000 crore sanitary ware market is held by RAK Ceramics, a UAE-Bangladesh joint venture enterprise that is listed on the Dhaka Stock Exchange and the Abu Dhabi Securities Exchange in the UAE. The company produces a wide range of goods, including ceramics and porcelain tiles, bathroom accessories, and all types of sanitary ware. It currently offers more than 2,500 models and often rolls out new styles to keep up with changing customer demands.

As per New Vision, 18% of the market is controlled by Abul Khair Ceramics, a subsidiary of the regional conglomerate Abul Khair Group. Due to its affordability and accessibility, the company’s “Stella” brand of sanitary ware goods is one of the most well-known in the local market. Abul Khair Ceramics has established itself as a significant contender in the sanitary ware market thanks to its broad distribution network and dealership network.

The industry has had tremendous growth over the past six years, especially in the export sector, relying on diversified tableware products. As opposed to the EPB’s estimated goal of USD 35 million, export earnings in FY 2021–22 were USD 41.36 million. With exports exceeding USD 41 million in FY 2021–22, the sector has a presence in over 50 countries, including the UK, the USA, Italy, Spain, Norway, France, the Netherlands, Australia, and more. The main drivers of growth, which have contributed more than USD 9 million in fortune to the business and are anticipated to continue the trend, are the US-China trade conflict and rising European demand.

The ceramics sector has experienced exponential expansion over the course of investment accumulating along with the expanding domestic and international markets. The entire aggregate investment increased by 70% over the past four years, from USD 619.38 million in 2014 to USD 1,051.77 million in total. It is anticipated that 20 new enterprises will join the ceramics industry fleet in the next few years as a result of this investment increase. In order to take advantage of expanding opportunities, current firms are likewise concentrating on production expansion. According to Bangladesh Ceramic Manufacturers
and Exporters Association, of the total accumulated investment, the export-focused tableware segment accounts for 20%, tiles for 59%, and sanitary ware for 16%.


Prospects of the Industry

There is a lot of room for expansion in the ceramics industry in both the domestic and international arenas because of the country’s ability to produce high-quality products at competitive prices.

Burgeoning Urbanization and Rising Income

As the nation continues to experience stable economic expansion and urbanisation, the local demand for ceramic goods is also growing. According to industry experts, the number of households will also rise from 3.2 crores to 4.3 crores by 2025. In rural regions where using ceramics materials in the construction of homes and mosques is now very popular, demand for ceramics items has also expanded as people’s earnings have grown over time. This expected increase in population affordability, along with rising real estate development and prospective lifestyle changes brought on by expanding urbanisation, point to future sector growth opportunities.


Competitive Labour Pool

Bangladesh’s export-focused businesses have a distinct cost advantage due to the country’s cheap wage structure and availability of a large labour pool of semi-skilled to skilled workers. Despite continued competition from China, India, and Thailand in international markets, Bangladesh’s ceramics sector has benefited from and is likely to continue to benefit from the country’s comparatively low labour costs accessible for local manufacturing.

Access to Duty-free Markets

The ceramics industry in Bangladesh has the potential to increase its export competitiveness thanks to duty-free market access to a number of developed countries under the Generalised System of Preferences (GSP), including the European Union (EU), the United Kingdom (UK), Australia, New Zealand, Japan, Japan, Canada, and Russia. In contrast, Chinese ceramics products, a major competitor to Bangladesh, must bear additional duties to access such markets, such as up to 12% duties for EU markets.

Untapped Export Potential

Bangladesh Ceramic Manufacturers and Exporters Association reports that domestic demand for tiles and sanitary items exceeds domestic production. The current production capacity for tiles in the country is 20 crore square metres, whereas the total domestic demand is roughly 26 crore square metres. Likewise, the quantity of tiles produced falls short of the demand. Approximately 24% of the demand for tiles is fulfilled by imports due to the gap between demand and output.

Industry-Academia Collaboration

Research partnerships between businesses and universities are becoming increasingly important as the global ceramics sector experiences rapid expansion and introduces new applications for ceramics across a wide range of sectors. With this in mind, the Higher Education Quality Enhancement Project of the University Grants Commission of Bangladesh has funded industry-academia collaborative research in Bangladesh to develop innovative technologies in recent years.

Challenges Facing the Industry

According to LightCastle Partners, the production of ceramics is a process industry that heavily relies on the use of gas, which constitutes around 21% of production costs. The kiln’s fire requires constant access to the gas supply. There must also be a constant, high rate of gas flow at around 15 PSI. Many manufacturing facilities, meanwhile, are suffering financial losses as a result of reduced output caused by the gas crisis.

The onset of the Russia-Ukraine war in February 2022 and the subsequent decision by Russia to cut off gas supplies to Europe in retaliation to Western sanctions placed on the country led to an energy crisis in Europe, setting off a domino effect on the global market for liquefied natural gas (LNG). This year, the cost of natural gas skyrocketed to all-time highs in the international market. In March 2022, Bangladesh saw the beginning of the gas crisis, and the problem got much worse from September on.

This skyrocketing LNG price also came at a time when burgeoning dollar rates were putting pressure on the rapidly depleting forex reserves of the country, prompting the government to halt spot LNG imports since July 2022 and implement austerity measures in the form of power outages or ‘load-shedding’ as the government attempts to contain the fuel price. About 60% of Bangladesh’s energy comes from natural gas, and a quarter of that gas is imported from other countries.

This dual energy crisis has proven to be a serious issue for the ceramics industry, where both electricity and gas are required to power the manufacturing facilities, which must reach temperatures above 500° C and up to 2000° C in some cases to make bricks or tiles by baking clay. The factories are faced with an unsettling situation as the gas pressure remains good.

During the day; however, they have to remain closed due to power outages, and gas pressure drops at night when the power is restored. Bangladesh Ceramic Manufacturers and Exporters Association reports that gas supply problems have caused manufacturers to cancel several work orders because they cannot meet the deadlines of their international clients. Also affected are their local market suppliers. Other than the ongoing energy crisis, another significant issue for this industry is its over-reliance on the import of raw materials, as almost 95% of raw materials come from abroad. A supply chain crunch due to COVID-19 and then the Russia-Ukraine conflict has meant that the companies that relied on the import of clay from Ukraine are having to search for alternate sources that are costlier. Concerns also exist for the ceramics export industry once Bangladesh loses its LDC classification in 2026 since the average tariff on ceramics entering foreign markets will increase to 12.7%.

A Way Forward

Bangladesh’s ceramics sector has grown to be a crucial pillar for the nation’s housing and construction industry, and this industry is already contributing through export revenues, foreign investment, and other means to the nation’s economy while at the same time producing employment and saving money. Industry insiders claim that this is possible if the government gives this industry careful consideration and supports it, particularly in resolving the power crisis afflicting the factories. There is still much to be done to address the problems this industry is facing, such as uninterrupted power and gas supplies, which are essential to continue competing in global markets. If Bangladesh’s ceramics sector can get over the obstacles, it has every chance to develop and increase its contribution to the nation’s foreign exchange earnings.
​

 

[Saif]

Bangladesh’s untapped potential in export of ceramics

Ceramic tiles, tableware and sanitary ware have become an integral part of today’s life. It makes a world of a difference to the look and characteristics of a structure’s interiors and exteriors.

www.thedailystar.net

Bangladesh’s untapped potential in export of ceramics​

Ceramic tiles, tableware and sanitary ware have become an integral part of today’s life. It makes a world of a difference to the look and characteristics of a structure’s interiors and exteriors.

Though the use of ceramics dates back to a thousand years, its mass use began much later. It gained momentum in Bangladesh in recent years. The large number of shops selling porcelain products at retail points – at both district and thana levels – is evidence of its widespread use and demand.

Despite a slowdown in many other manufacturing sectors, the Bangladeshi ceramics industry has continued to grow at a double-digit rate for the past decade, mainly due to growing demand from local customers. Local consumption will continue to grow with the country’s healthy economic growth and urbanisation.

Export of ceramic products, which has remained stagnant at around USD 50 million for the past couple of years, may pick up in the years to come as the government has offered 10 percent cash incentive on export of the products in fiscal 2017-18. People in the sector predict that its export could reach as high as USD 1 billion by 2025.

Yet, this rosy picture could be dented due to some challenges the industry has been facing for the past two years.

Irfan Uddin, general secretary of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), said ceramics was a capital-intensive industry in which setting up of a factory required a minimum investment of Tk 100 crore.

“Rising interest rates – 12 to 14 percent – have been impeding the sector’s expansion. Lack of skilled manpower is another challenge in the path of the sector growing further,” said Irfan, also a director of FARR Ceramics.

“Middle Eastern countries are moving towards imposing an anti-dumping duty on Indian ceramics, which could open up a new avenue for export of Bangladeshi products,” he said.

“We need more factories and expansion of existing ones to grab the export market,” he pointed out.

Traditionally, Japan, the United Kingdom, Germany and other European countries have dominated the export market of ceramic products to world markets. But a jump in production costs, including wages and currency appreciation, made ceramic manufacturing unfeasible for many, even China.

Bangladesh’s first ceramic plant – Tajma Ceramic Industry – was established in Bogura in 1958. But it took over three decades to take the number of factories to double digits. Since the mid-90s entrepreneurs started investing in the sector. Now there are over 60 factories and over a dozen in the pipeline, according to the BCMEA. A third of the factories are tableware makers.

Now Bangladesh produces ceramics mainly in the form of tableware, sanitary ware and tiles. According to the BCMEA, the industry produced over 25 crore pieces of tableware, nearly 20 crore square metres of tiles and over 83 lakh pieces of sanitary ware in fiscal 2017-18. Bangladesh is almost self-sufficient in these products, a development opposite to the scenario in the 90s.

Initially, most of the factories were targeting export, but things have changed now with the steady rise in people’s purchasing power in Bangladesh, industry insiders said.

The BCMEA data showed that tiles and sanitary ware’s domestic demand is higher than that of the country’s production capacity. Total domestic demand for tiles is around 26 crore square metres against a production capacity of 20 crore square metres. Similarly, actual production of tiles is less than the demand.

The gap in demand and production is met by import as nearly 24 percent of demand for tiles is still import-dependent.

“We have a lot of scope to grow. It is a growing industry and can become a much bigger one in the next five years,” said Md Shirajul Islam Mollah, president of the BCMEA.

According to industry people, Bangladesh has certain competitive advantages over its competitors in the form of availability of gas, cheap labour and the generalised system of preferences (GSP) that allows Bangladesh’s exports duty-free access to Europe. There is no quota restriction either.

Shirajul, also the managing director of China-Bangla Ceramic Industry, believes that last year’s hike in wages and gas was within a tolerable level. “But challenges lie in two other areas,” he said.

“Once the factories, which are in the pipeline, come into operation, our exports will increase several times more than our current levels. But we need a hike in cash incentive on exports to achieve that,” said the BCMEA president.

Another problem, he pointed out, is related to congestion at the port. The ceramics sector is dependent on the import of raw materials including clay, silica and alumina.

“It takes a lot of time to clear those products at the port. It has to be faster if we want to increase our exports,” said Shirajul.​

 

[Saif]

Advanced ceramics offers huge growth potential

Bangladesh should look beyond the traditional usage of ceramics and produce more value-added items with a view to capturing a vast global market, entrepreneurs and experts said.

www.thedailystar.net

Advanced ceramics offers huge growth potential​

Bangladesh should look beyond the traditional usage of ceramics and produce more value-added items with a view to capturing a vast global market, entrepreneurs and experts said.

The ceramics industry in Bangladesh started its journey in the late 1950s and the ceramics sector is booming. But the industry is mainly focused on traditional ceramics, namely tiles, kitchenware, and sanitary ware, while technical ceramics market is largely non-existent.

“I think we need to work more on innovative products, which will cater to the current needs of the people,” said MA Jabbar, managing director of DBL Group, the owning company of DBL Ceramics Ltd.

Since the demand for high-tech ceramic products is rising steeply for energy conservation and remediation of environment, including value-added products’ diversification, Bangladesh – in line with the activities of the rest of the world – should go for high-end ceramic products along with traditional ceramics, said Abdul Matin, professor of the Department of Glass and Ceramic Engineering at the Bangladesh University of Engineering and Technology (BUET).

Globally, the use of advanced ceramics, technical ceramics, is growing.

Ceramics are being used to produce heat-insulating lightweight ceramic fibres for conservation of heat in industrial kilns, melting and high temperature heat-treatment furnaces, air-conditioning ducts, vests for ballistic impacts, armour-shielding vehicles, insulators, spark-plugs, sensors, actuators, superconductors and giant magnetism for magnetic levitation (high-speed train), optoelectronic devices and cancer treatment (hyperthermia), according to Prof Matin.

Nano-materials based on ceramics have enormous potential applications in energy and environmental sectors.

Other applications include thermal-barrier coating, anti-reflective coating for solar panel, antibacterial tiles, wall surfaces for environmental remediation, industrial effluent and dye-degradation and toxic elements’ separation, including water purification through ceramic nano-materials, he said.

The global advanced ceramics market is expected to grow from USD 66.47 billion in 2017 to USD 141.53 billion by 2025, at a compound annual growth rate of 9.91 percent during 2018-2025, according to a study titled “Advanced Ceramics Market by Material” by Fior Markets, a market intelligence company, based in Maharashtra, India.

Advanced ceramics have emerged as a perfect, cost-effective, high-performance alternative to traditional materials such as metals, plastics, and glass.

Prof Matin said there is a huge demand for advanced ceramics all over the world, including Bangladesh, for sustainable development and to achieve the targets of the Sustainable Development Goals by 2030.

A prerequisite of this demand from the Bangladesh perspective is tremendous research and development (R&D) and close collaboration between industries and academia to innovate diversified value-added ceramic products to meet the challenges of environment, energy and public health.

Prof Matin said microelectronic industries are heavily depending on silicon wafers for all sorts of microelectronic devices and their application. Though challenging, in near future Bangladesh can manufacture silicon wafers, which would be cost-effective and has the potential for high export of this value-added product for the economic development of the country.

In addition, the development of ceramic nano-materials has market potential of more than USD 300 billion all over the world targeted to reach USD 1 trillion by 2025.

“It would be a big opportunity for Bangladesh to be a part of this endeavour, the vast ceramic nano-material market and its products in the near future,” Prof Matin said.

R&D is taking place in Bangladesh to develop new products.

For example, Shinepukur Ceramics Ltd as an industrial partner has been engaged under a government project with the GCE department to develop heat-insulating ceramic fibres for industrial application. It has successfully produced ceramic fibres using a pilot plant installed at BUET.

The company has a plan to scale it up for mass production. In addition, a low-cost ceramic water filter has been developed at the GCE department in collaboration with Shinepukur Ceramics. This can be commercially produced.

DBL Ceramics, with its own finance, is conducting a R&D project under a memorandum of understanding with the GCE department to produce solar-grade silicon wafers from quartz (sand). In the first phase, metallurgical-grade silicon (MGS) will be produced using a newly designed and built electric arc furnace. In the second phase, MGS will be purified to solar-grade silicon.

Fortunately, R&D of nano-material synthesis and characterisation and small-scale application of nanotechnology has already started with enormous enthusiasm within researchers of universities and research institutions in Bangladesh and gradually gaining momentum to reach a platform from application point of view, according to Prof Matin.

Md Shirajul Islam Mollah, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said if exporters get incentives from the government, the sector will advance like the garment sector.

Md Shamsul Huda, managing director of Great Wall Ceramic Industries Ltd, said new ceramic factories are being set up and their usage has expanded significantly. The rising demand has prompted companies to think about new products and designs.

“Our efforts should be on how to accelerate our exports by introducing new products.”

Tanvirul Islam, head of marketing of Shinepukur Ceramics, said the company has some innovations.

For example, it has innovated two types of raw material preparations that allow it to produce more white porcelain.

It has produced a raw material that has whiteness like that of bone china although it is porcelain. Another raw material allows it to produce products that have more whiteness than porcelain and have translucency, Tanvirul said.

The company is recycling waste of ceramics and re-using it. It does not affect the quality of the product. As a result, the waste ceramics are not being left in the environment.

“In order to capture the market, more investment will be needed to scale up production capacity. High-quality products have to be manufactured and efficiency has to be increased to be price-competitive,” he said.

MA Jabbar said DBL Ceramics introduced technical porcelain for the first time in Bangladesh with an impressive feature of anti-slippery.​

 

[Saif]

Why design is a crucial element for the ceramics industry

Those days are gone when businessmen had to rely on foreign products for designing their items. Now most of the factories have their own design and product development team which brings out four to six new products – from plates, cups, mugs to cutlery and dinner sets – every year.

www.thedailystar.net

Why design is a crucial element for the ceramics industry​

Those days are gone when businessmen had to rely on foreign products for designing their items. Now most of the factories have their own design and product development team which brings out four to six new products – from plates, cups, mugs to cutlery and dinner sets – every year.

Designers and owners get ideas from everything, such as a nice building, mosque, saree, monument or a foreign product.​

​

“Two years ago, I saw a jamdani saree designed beautifully. I bought it and handed it over to our team to replicate the design in ceramic products. They did it successfully,” said Irfan Uddin, general secretary of Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) and a director of FARR Ceramics.

Irfan said they have their own design and development team, and most of them are fine arts graduates.

DBL Ceramics, which is a relatively new entrant in the market, follows Italian and Spanish designs to attract customers, both in local and export markets.

“But to make those products we need special dyes and chemicals that push up our production costs,” said MA Jabbar, managing director of DBL Ceramics, a concern of apparel giant DBL Brothers.

The company employs eight artists dedicated to designing ceramic products.

Other companies such as Akij Ceramics, Shinepukur Ceramics, Monno Ceramics, Artisan Ceramics, X-Ceramics, China-Bangla Ceramic, Paragon Ceramics and RAK Ceramics also produce products with their dedicated design team.

But there is another way to design products as raw material suppliers also help factories design products.

“Whatever design you want, tell them and they will make the design for you,” said Shirajul Islam Mollah, president of BCMEA and managing director of China-Bangla Ceramic Industry that began operation in 2002.

He said designing of products will get more importance when Bangladesh boosts its exports to the global market.

Design matters a lot for ceramic products, according to salesmen at the capital’s Elephant Road, a retail hub of the products. They said they were trained by the companies so that they can brief customers about the quality and aesthetic side of the products, be it a cup or a dinner set.

“Customers do not see the quality of the products, rather they prefer good-looking ones. They even want to spend more when they like a product, solely for its design,” said Kamal Hossain, 30, a salesman at a store of Shinepukur Ceramics.

He said tableware products, which were a luxury even 10 years ago, have now become common for use.

The first use of practical pottery vessels is thought to be thousands of years back. Historians believe it was as far back as 9000 BC. These vessels were used to hold and store grain and other foods. It is believed that ancient glass manufacturing is closely linked to pottery making, which flourished in Egypt in about 8000 BC.

Later, ceramic art spread to almost all developed cultures, which was evident in vanished cultures, like that of the Iron Age population in Africa over 3,000 years ago. Later the use of ceramic products became popular in cultures such as those of the Chinese, Greek, Persian, Mayan, Japanese, and Korean as well as the modern Western cultures.

During the 19th and 20th centuries, Japan, United Kingdom, Germany and other European countries dominated the industry and export markets. But a jump in production costs, including wages and currency appreciation, made ceramic manufacturing unfeasible for many of those nations, even in China.

The first factory in Bangladesh was setup in Bogura in 1958. Two factories emerged in 1960s and one in 1974. Then half a dozen new companies entered the market in 1990s after which it proliferated post-2000.​

 

[Saif]

MGI expands ceramic tiles production with $45m investment

Of the investment, $19 million came from its own pockets whereas $26 million in the form of a syndicated loan, which was released recently, he said.

www.thedailystar.net

MGI expands ceramic tiles production with $45m investment

Meghna Ceramic Industries, a concern of the Meghna Group of Industries (MGI), has increased its production capacity with an investment of US $45 million (about Tk 500 crore) to grab a bigger share of the growing half a billion US dollar-worth tiles market.

Since July last year, the company's factory in Ashariar Char in Narayanganj, Dhaka's neighbouring district, has been churning out 51,000 square metres of "Fresh Ceramics" tiles per day, Assistant General Manager said Rajib Bhattacharjee.

A year ago, it was 31,000 square metres, he said.

Of the investment, $19 million came from its own pockets whereas $26 million in the form of a syndicated loan, which was released recently, he said.

The lead arranger, Prime Bank, a private commercial lender, provided $4 million while the Islamic Corporation for the Development of the Private Sector, a concern of the Islamic Development Bank Group, provided $22 million, said Bhattacharjee.

Repayable in 8 years, including a one-year grace period, the loan comes an interest rate of 3.75 percent plus the Secured Overnight Financing Rate (SOFR), he said.

The SOFR is a benchmark interest rate for dollar-denominated derivatives and loans that replaced the London Interbank Offered Rate (LIBOR). It varies from time to time, standing at around 4.3 percent in January 2023 whereas at 5.3 percent most recently.

"We used the syndicated loan for payment of import bill of necessary sophisticated machinery from Europe," informed Bhattacharjee.

With this, a total of $100 million has been invested into the facility, which uses technology adopted from the US, Germany, Italy and China and employs over 400 people, he said.

Of the initial $55 million invested in 2021, $20 million came from another syndicated loan arranged by Prime Bank, he said.

The expansion was to grab a share of the growing ceramic industry, spending capacity of people and rapid urbanisation over the past decade, said Bhattacharje.

Bangladesh has been witnessing an increasing demand for ceramic tiles for rising private and public construction thanks to urbanisation and the economy's steady growth.

Local and international companies invested $1.58 billion in the ceramics sector for producing tiles, tableware, and sanitaryware while directly employing nearly 20,000 people, according to the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA).

Of the investment, 62 percent or $979 million was meant for tiles.

Now, there are 31 ceramic tiles manufacturing facilities in the country with a combined annual production capacity of 20.70 lakh square metre.

An estimated $633 million-worth tiles were sold in the country in fiscal year 2022-23, it said.

The ceramic sector in Bangladesh caters to 80 percent of the total local demand for ceramic products, BCMEA said.

The local ceramic industry has registered an annual average growth rate of about 15 percent since fiscal year 2015-16, according to the BCMEA.

This was a strategic investment in recognition of the market demand and growth opportunities for ceramic products, said Shams A Muhaimen, deputy managing director (transaction banking, debt capital market & financial institutions), Prime Bank.

The ceramic tiles industry in Bangladesh exhibits strong demand fuelled by urbanisation, infrastructure development and a growing construction sector, making the project commercially viable, he said.

With a diversified product portfolio and expanding production capacity, the MGI is well-positioned to capitalise on this market demand and drive further growth and profitability, he noted.

The MGI has an extensive distribution network across the country, giving it another competitive edge, he added.​

 

[Saif]

Ceramic factories struggling amid gas crisis

The country's ceramic manufacturing factories in key areas like Dhaka, Gazipur and Narsingdi have been struggling to continue production as they have been suffering from a severe gas crisis in recent times. According to industry people's estimation, nearly 25 factories in the region have been suff

thefinancialexpress.com.bd

Ceramic factories struggling amid gas crisis
SAIF UDDIN
Published :
Jul 02, 2024 09:54
Updated :
Jul 02, 2024 09:54

The country's ceramic manufacturing factories in key areas like Dhaka, Gazipur and Narsingdi have been struggling to continue production as they have been suffering from a severe gas crisis in recent times.

According to industry people's estimation, nearly 25 factories in the region have been suffering a production loss of estimated Tk 200 million every day for around the last one month due to the supply crunch of natural gas, one of the key ingredients of the ceramic products.

They also said the local manufacturers are afraid of losing competitiveness in both local and international markets unless the government takes immediate actions.

Keeping this in view, the apex trade body of ceramic manufacturers have urged the power, energy and mineral resources ministry to take necessary action so that the factories get uninterrupted gas supply.

Factories in Mirpur-12, Savar, Dhamrai of Dhaka district, Tongi, Kashimpur, Bhabanipur, Bhawal, Mirzapur, Sreepur, Mawna of Gazipur, Panchdona of Narsingdi and Bhaluka and Trishal areas of Mymensingh have been facing severe gas crisis, according the request letter sent by the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA).

"The production of ceramic tableware, tiles, sanitary ware and ceramic bricks in 22-25 factories is being disrupted due to severe gas shortages," the BCMEA said.

Ceramic goods-manufacturing units require gas supply pressure at 15 psi (pounds per square inch), whereas the pressure in those areas fluctuate between three and zero only.

"In consequence, the production loss in those areas is estimated at Tk 200 million every day," he said.

Ceramic is a gas dependent manufacturing industry as natural gas constitutes 10 to 12 per cent of total production cost.

Kilns in the ceramic industry need 24-hour uninterrupted gas supply to burn the products at 1200 centigrade at the desired PSI.

"Whenever the required pressure slides down, the incomplete products inside a kiln become wastage, even a kiln needs 48 to 72 hours to resume production in full swing after a halt," the BCMEA said, adding that sometimes an industry owner has to encounter severe trouble due to inoperative machinery.

This disruption could also lead to some entrepreneurs becoming bank defaulters as well as a conflicting situation between lenders and industry. This could also result in an increased number of cases at the financial institutions.

Contacted, BCMEA General Secretary Irfan Uddin told the FE that the northern region of Dhaka accommodates the highest number of factories, so they face the severe gas crisis.

"The situation in some other parts, including Narayanganj, is also not favourable," he said.

The government increased the gas price per cubic meter to Tk 30 from Tk 13, causing a problem for the gas-based industry, he said.

"We had to accept the higher tariff with an expectation that we would get uninterrupted supply," he said with lamentation. Replying to a query on the scope of using cylinder gas, he said this is not viable.

"This will lead to a hike in the prices of finished goods which is not feasible as local manufacturers sustain amid a tight competition from the imported ceramic ware," he said.

According to sector insiders, there are around 70 ceramic factories across the country. Of them, a handful in Habiganj and Bhola get gas at stable pressure.

With the market size of Tk 80 billion and investment of Tk 170 billion , the local ceramic sector has created around 0.5 million direct and indirect jobs.​

 

[Saif]

Unlocking ceramic industry's potential

Ceramic products have undergone a remarkable transformation in recent years. Once viewed as a luxurious addition to a home or building, they have become a must-have for many consumers. This shift is driven by a growing appreciation for the unique benefits ceramics offer, particularly in the areas o

thefinancialexpress.com.bd

Unlocking ceramic industry's potential
ATIQUL KABIR TUHIN
Published :
Jul 03, 2024 21:36
Updated :
Jul 03, 2024 21:36

Ceramic products have undergone a remarkable transformation in recent years. Once viewed as a luxurious addition to a home or building, they have become a must-have for many consumers. This shift is driven by a growing appreciation for the unique benefits ceramics offer, particularly in the areas of hygiene, aesthetics, and durability.

Driven by increasing demands, the Bangladeshi ceramic industry has experienced remarkable growth in recent decades. Prior to 2000, the country relied heavily on imports, spending significant foreign currency to meet over 80 per cent of its ceramic product needs. Today, a thriving domestic industry caters to over 85 per cent of local demand, with the size of the local ceramic market estimated at around Tk 80 billion.

Comprised of 70 companies with a combined investment of Tk 170 billion, the local ceramic sector is a significant job creator, employing roughly half a million people directly and indirectly. These companies not only cater to local demands but also contribute to foreign exchange earnings, with Bangladeshi ceramic products reaching over 50 countries.

However, it is disheartening that the ceramic industry is now facing a huge challenge due to a severe gas crisis. According to a report published in this paper, factories across key production hubs like Dhaka, Gazipur, and Narsingdi are struggling to maintain operations due to a critical shortage of natural gas, a vital ingredient in the ceramic manufacturing process.

Industry estimates suggest that nearly 25 ceramic factories in the affected areas are facing a daily production loss of Tk 200 million as a consequence of the erratic gas supply. This disruption threatens the competitiveness of local manufacturers in both domestic and international markets. The Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA) has urged the government to take immediate action to ensure uninterrupted gas supply for these factories.

It is worth mentioning that ceramic production relies heavily on natural gas, which accounts for 10-12 per cent of the total production cost. Ceramic kilns require a constant gas supply pressure of 15 psi (pounds per square inch) for 24 hours to properly fire the products. However, the current gas pressure in affected areas fluctuates between 0 and 3 psi, rendering production impossible.

The consequences of this crisis extend far beyond production stoppages. When gas supply is interrupted suddenly and some products remain incomplete within kilns, those products become unusable. Moreover, restarting a kiln after a halt takes 48-72 hours, further impacting production efficiency. The problem has become so acute that industry insiders fear that gas crisis could potentially lead to loan defaults by ceramic factory owners.

The crisis is most severe in the northern region of Dhaka, where many factories are concentrated. The industry owners have recently accepted the gas price hike from Tk 13 to Tk 30 per cubic meter with the hope of improved supply, but in vain. Shifting to liquefied petroleum gas (LPG) cylinders is also not a viable solution, as it would significantly increase production costs, making Bangladeshi ceramic products less competitive in the market.

Local industries have been facing gas crisis for an extended period, a situation that hinders their ability to operate efficiently. The government began importing liquefied natural gas (LNG) in late 2018 to address the domestic supply shortfall. LNG import, however, was complicated by the Russia-Ukraine war, which triggered a dramatic surge in global gas prices. This forced the government to temporarily halt purchase of LNG from the international spot market. In recent months, however, global LNG prices have declined to some extent, but experts think the long-term solution to gas crisis lies in domestic gas exploration and infrastructure development.

Despite the ceramic industry's amazing growth over the years, export earnings from this sector remain modest, totalling only $43.39 million in FY23. Industry insiders believe the sector holds immense potential to replicate the success of Bangladesh's Readynade Garments (RMG) industry and become a major export earner. They emphasise the need for policy support on a par with the RMG sector to unlock this potential.

Apart from ensuring a stable gas supply, industry leaders are also calling for the removal of the supplementary tax on ceramic tiles, arguing that ceramic products have shifted from being luxury items to essential goods. Currently, ceramic tiles face a supplementary duty of 15 per cent, while sanitary products incur a 10 per cent duty. In addition, the industry bears more than 30 per cent in other duties and expenses. They advocate for the withdrawal of these duties, arguing that the cost of all construction materials, including steel and cement, has risen. Removing the supplementary tax would enable ceramic products to be sold at lower prices, boosting sales and ultimately increasing government revenue.

As Bangladesh approaches its graduation from Least Developed Country (LDC) status in 2026, diversifying its export basket is no longer an option, but a vital imperative. A diverse export portfolio acts as a key engine of economic growth as well as a shield, insulating the economy from sudden drops in demand for specific sectors.

Currently, Bangladesh relies heavily on the Readymade Garment (RMG) sector, which contributes over 84 per cent to its export earnings. Should this sector encounter difficulties due to unforeseen changes in the international market, it could destabilise domestic income and employment levels. In this context, the ceramic sector holds immense potential to contribute to a more diversified export landscape.​

 

[Saif]

Ceramic industry in deep trouble

The ceramic industry is a deeply fossil-fuel driven industry, i.e. gas-dependent. It cannot be run on solar power. In fact, no heavy industrial production unit can for that matter. And while the government keeps harping about renewable energy as being the next big thing, industry suffers in silence

thefinancialexpress.com.bd

Ceramic industry in deep trouble
SYED MANSUR HASHIM
Published :
Jul 05, 2024 21:47
Updated :
Jul 05, 2024 21:47

The ceramic industry is a deeply fossil-fuel driven industry, i.e. gas-dependent. It cannot be run on solar power. In fact, no heavy industrial production unit can for that matter. And while the government keeps harping about renewable energy as being the next big thing, industry suffers in silence or in mute protest that falls on deaf ears. The fact of the matter is that ceramic-making factories in key areas of Dhaka, Gazipur and Narsingdi have been "struggling to continue production as they have been suffering from a severe gas crisis in recent times" according to a recent report published in this newspaper.

The ceramic industry's apex body, the Bangladesh Ceramic Manufacturers & Exporters' Association (BCMEA) has every right to feel indignant at the situation. Ceramic making is largely concentrated on gas-fired kilns but due to not only a crisis of gas but the hike in gas prices too. Indeed, the recent increase in gas prices was opposed by the industry, but at that time, the concerned ministry had promised uninterrupted supply of gas which turned out to be a fallacy. Moving to the present situation, industry experts state that some 25 factories in this area have been suffering a "production loss of estimated Tk200 million every day for the last one month due to the supply crunch of natural gas." It is only natural that ceramic manufacturers have been clamouring for sufficient gas supply in the areas of Mirpur-12, Dhamrai of Dhaka district, Tongi, Kashimpur, Bhabanipur, Bhawal, Mirzapur, Sreepur, Mawna (of Gazipur), Panchdona (of Narsingdi), Bhaluka and Trishal (of Mymensingh).

Today, the ceramic industry is an important sector with about 70 factories in operation. Only a handful of factories in Habiganj and Bhola get the require gas pressure for production. As stated by BCMEA, manufacturing units need gas supply pressure at 15 PSI (pound per square inch) but affected factories are getting at best, 3 PSI, which is hardly conducive to production. Products include tableware, tiles, sanitary ware and bricks. For normal operation, factories need kilns to have access to gas 24 hours a day that burn at 1,200 centrigrade at the required PSI. Since a constant pressure is required, what happens when the PSI goes down? Wastage of all material inside the kiln. This is unsustainable from a production point of view. Because when production comes to a halt due to this wastage happening from lower PSI, a factory must wait 48 to 72 hours before resuming production.

There is another matter that cannot be overlooked. The depreciation of the Taka against the US dollar, prices of inputs (particularly raw materials), i.e. a lot of the material that has to be imported has also shot up.

Getting back to the price of gas, price per cubic meter had been raised from Tk 13 to 30 on the promise of uninterrupted gas supply. And this turned out to be a mirage. So, not only is industry paying more than double the price per unit, it isn't getting it at the required pressure level - resulting in unsustainability of production. Is the domestic market for ceramic ware to be left to importers in that case? What is to happen to the workforce engaged in this industry and what is to happen to the estimated Tk170 billion in investments that have gone into making this industry that has been touted as one of a handful of industry capable of competing in foreign markets in the near future?

One cannot overlook the fact that domestic manufacturers cater to over 90 per cent of the domestic demand for the items produced by these factories and hence, its concerns for reliable primary energy supply cannot be ignored. There is literally no short-term solution to a problem that has been over a decade in the making. Recapping the folly of policymakers cannot be overstated with the emergence of the all-powerful import lobby for fossil fuel rose through the ranks of policymaking to convince the government that there was no need to explore domestic resources of natural gas (in what geologists have stated umpteen number of times as a natural gas-rich country).

Today, the ceramic industry is finding out to its dismay what it means when the country doesn't have enough foreign exchange to buy natural gas from foreign markets. Industrialisation in the country is in danger of stopping in its tracks- not just for domestic producers but for foreign investors too because there simply enough gas to go around. In the midst of this crisis, active foot-dragging efforts are in play to arrest energy wastage in a number of gas-guzzling plants that have outlived their operational lives and are grossly energy-inefficient.What other proof does the State need to enact measures to improve energy efficiency across the board? Ample studies exist on what needs to be done to save gas, so that it may be diverted to industries that are starving of it, but does the political will exist to save industry? That is the question.​

 

[Saif]

Ceramics industry reeling from three-pronged assault

The ceramics industry has been desperately seeking respite from a spate of crises in recent months, but their woes have only deepened due to a worsening gas crisis.

www.thedailystar.net

Ceramics industry reeling from three-pronged assault

The ceramics industry has been desperately seeking respite from a spate of crises in recent months, but their woes have only deepened due to a worsening gas crisis.

One of the major problems facing the industry has been brought on by inflationary pressures, which have eaten away at local demand for ceramics. Annual inflation rose to a 12-year high of 9.73 percent in fiscal year (FY) 2023-24, the highest since 2011-12, according to the Bangladesh Bureau of Statistics.

According to industry insiders, this has caused sales of ceramic products to plunge by 15 to 20 percent over the past four to five months.

Furthermore, there has been no relief from international buyers. On the contrary, exports of ceramic products declined by around 25 percent, according to the latest data.

Further exacerbating the situation over the past two months is the fact that ceramic industries in four districts have been contending with massive productivity losses due to a gas crisis. Industry insiders said they were counting production losses amounting to Tk 20 crore per day.

Exports of ceramic products fell to $30 million during the July-May period of FY24 compared to $39.86 million the prior year, showed data from the Export Promotion Bureau.

Further exacerbating the situation over the past two months is the fact that ceramic industries in four districts have been contending with massive productivity losses due to a gas crisis.

Industry insiders said they were counting production losses amounting to Tk 20 crore per day.

"Around 25 ceramic factories, located in Dhaka, Gazipur, Mymensingh and Narsingdi, have been getting insufficient gas pressure for the past two months," said Md Mamunur Rashid, senior vice president of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

He said ceramics-makers normally require 15 pounds per square inch (PSI) of pressure to maintain product quality but they are getting only 7 to 8 PSI.

As a result, around 7 percent of products did not pass the quality inspection previously, but that number has ballooned to 20 percent due to the crisis, he said, adding: "Our profit declined by at least 25 percent due to production being hampered."

He also highlighted that production had dropped by as much as 40 percent in some factories due to inadequate gas supply, which comes from the Titas Gas Transmission and Distribution.

Rashid also pointed to a number of other factors that were keeping the industry from thriving, such as import duty on raw materials ranging from 5 to 25 percent, value-added tax of 15 percent on produced goods, and supplementary duty of 15 percent.

Besides, high interest on working capital and on credit for the procurement of capital machineries pushed the industry into further difficulties.

Against this backdrop, the BCMEA requested the government to take urgent steps to ensure normal supply of gas.

Md Sirajul Islam Mollah, president of the BCMEA, wrote to the Ministry of Power, Energy and Mineral Resources about the gas crisis that has been plaguing the ceramics industry since May.

Mentioning that production was being disrupted, he added that the gas pressure sometimes drops from 2 to 3 PSI to near zero.

Mollah explained that ceramics is a gas-dependent industry and natural gas is one of the primary raw materials. It is used as fuel and accounts for 10-12 percent of the total cost of production.

He also said kilns or furnaces need uninterrupted gas supply for 24 hours to prepare ceramics products since firing is done at 1,200 degrees Celsius.

"Without a certain level of pressure, it is not possible to continue production processes."

When the pressure reduces, all the products inside kilns are immediately destroyed, he stated. Additionally, it takes a minimum of 48 hours to 72 hours to restart the kiln once it shuts down. Sometimes, valuable equipment is destroyed, causing huge financial losses, he added.

Irfan Uddin, director of FARR Ceramics Ltd, said production losses had contributed to lower exports.

"If we do not gas as required, we can't ensure quality of production. It is not possible to export substandard products as it is a matter of the industry's image," he said.

So, the volume of exports reduced substantially this year.

Irfan Uddin, also general secretary of the BCMEA, added that it was unfeasible to use alternative fuel sources like liquefied natural gas or compressed natural gas because it would increase the cost of production by over 25 percent.​

 

[Bilal9]

LEGACY, LUSTRE, LUXURY​

With a 40-year legacy, Monno Ceramic has become a household name and an international brand, celebrated for its exquisite design and global recognition.

---

Monno Ceramic is one of the largest pioneering ceramic tableware manufacturers in Bangladesh. Starting its journey in 1984 to produce porcelain tableware, Monno Ceramic secured its first export order the following year. Monno’s premium quality tableware has garnered attention on a global scale which has been directly reflected by the continuous market demand from international retailers, hotel groups, distributors, and wholesalers. What sets Monno Ceramic apart in this highly competitive ceramic tableware market is its utilisation of modern technology to produce high-quality, creative, and artistic designs in every Monno Ceramic tableware.



Founder Harunur Rashid Khan Monno’s dream was to manufacture world-class quality products – a principle that has continued to be reflected in every Monno product – bone china, porcelain, and high alumina hotel ware. Each body composition is made from the finest raw materials sourced internationally to ensure superior quality. The products are meticulously crafted and transformed into an exquisite tabletop, mirroring a unique blend of eye-catching shapes, enviable translucency, and durability. These are strengthened by a highly calibrated test protocol for metal release, thermal shock resistance, chemical resistance, scratch resistance, chip resistance and dishwasher and freezer safety. Lead and cadmium-free colour pigments from Germany produce the finest in-glaze and on-glaze decals that bring any designer’s artwork to life.



Colour-glazed and spray-coloured porcelain and bone china are Monno Ceramic’s greatest strengths. The exclusive line of lustre colours epitomises luxury and sophistication with its mirror-like finish and vibrant colours.

The promise of uncompromised quality and commitment to excellence means Monno Ceramic is constantly upgrading its machinery and technology to meet world-class standards. Monno’s modern production line, with its advanced machinery and expert workmanship, ensures low operating costs and the finest quality. It is this advanced production facility that has made Monno Ceramic one of the best outsourcing destinations in the world for ceramic tableware.



Monno Ceramic collaborates with renowned designers such as Queensberry Hunt, Nick Holland, and Billy Lloyd for the Western market. These influential voices, accompanied by several other famous brands, vouch for Monno Ceramic’s design and quality.

Recently, ‘Monno Design’, the company’s London-based design studio was launched with a focus on developing in-house tableware collections for the global market and promoting Monno Ceramic worldwide.

To showcase its exquisite designs, Monno Ceramic has participated in ‘Ambiente’, the world’s leading lifestyle exhibition for the last 36 years in Frankfurt, Germany. Monno Ceramic also regularly participates in lifestyle exhibitions in Japan, Qatar, and India.



The artistry and creativity of Monno Ceramic tableware have created a prominent global presence for Monno Ceramic, complemented by its robust export portfolio, earning them global recognition. Monno Ceramic has been awarded the ‘National Export Trophy’ a record twelve times by the Government of Bangladesh. Monno Ceramic is also one of the few companies in the world that complies with all kinds of international standards. An ISO 9001:2015 certified company, Monno Ceramic has certification of Sedex, BSCI for social compliance, and C-TPAT for global security.



From the beginning, Monno Ceramic has prioritised quality by focusing on innovation, investing in new technologies and prioritising the trust of its customers. Embarking on its 40th year in 2024, Monno Ceramic continues to be a leader in the ceramic tableware industry by staying true to its five core brand values – respect, leadership, accountability, teamwork and growth. The ethos of these core values is reflected in the fine and intricate design of each and every Monno Ceramic product, making it one of the biggest household names in the industry.



Photographs: Courtesy of Monno Ceramic

 

[Saif]

Ceramics face double blow: gas crisis and tax burden

The country’s ceramic industry is facing a severe crisis due to an ongoing gas shortage and the recent imposition of supplementary duty (SD) on the sale of ceramic tiles and sanitary ware, according to industry leaders.

www.thedailystar.net

Ceramics face double blow: gas crisis and tax burden

The country's ceramic industry is facing a severe crisis due to an ongoing gas shortage and the recent imposition of supplementary duty (SD) on the sale of ceramic tiles and sanitary ware, according to industry leaders.

"The government should ensure a stable gas supply," urged Moynul Islam, acting president of the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), yesterday.

"…and withdraw the supplementary duty on ceramic tiles and sanitary ware to support the industry's continued growth during this crisis," he told a press conference at Dhaka Reporters Unity (DRU).

The BCMEA leader stated that the ongoing gas shortage and high production costs are major problems for the industry.

He called for urgent government intervention to recognise ceramics as a "priority industry," which they believe is essential for maintaining local production, retaining employment, and ensuring global competitiveness.

The ceramics sector, which generates Tk 500 crore in annual export earnings and provides employment to over 500,000 people, is struggling due to inconsistent gas supplies and escalating costs, he said.

In spite of ensuring a 150 percent growth in production and investment over the past decade, many manufacturers are now facing operational uncertainties, said Islam.

Islam said the ceramic industry has become a significant alternative to imports, saving approximately $2 billion annually for the local economy.

He added that more than 80 ceramic factories in Bangladesh are currently meeting 85 percent of domestic demand, while also generating substantial export revenue.

The BCMEA reported that the sector has attracted a total investment of Tk 18,000 crore, with ceramic manufacturers paying Tk 1,200 crore in gas bills annually.

However, ongoing gas shortages have severely impacted business operations, leaving many factories struggling to maintain production for the past year, it said.

The factories are in areas such as Dhaka (Mirpur, Savar, Islambagh, Dhamrai, and Kalampur), Narayanganj (Rupganj and Meghnaghat), Gazipur (Tongi, Kashimpur, Bhabanipur, Sripur, and Mawna), Narsingdi (Pachdona), and Mymensingh (Bhaluka and Trishal).

Instead of the required 15 pounds per square inch (PSI), gas pressure often drops to 2 PSI to 3 PSI or even reaches zero, causing daily production losses of over Tk 20 crore, said Islam.

Many ceramic companies have been forced to halt investment plans, while newly established factories remain non-operational due to the crisis, he said.

"This not only restricts business expansion but also limits job opportunities for thousands of workers," Islam stated.

The BCMEA also raised concerns over the continuous increase in gas prices, which has significantly driven up production costs.

Between 2015 and 2023, industrial gas prices surged by 345 percent, including by 150 percent in 2023 alone, it said.

This has led to an 18 percent to 20 percent increase in production costs, making it increasingly difficult for local manufacturers to compete with imported products, it said.

Islam cited that recent reports indicate the government is considering another 152 percent gas price hike, which would further inflate production costs by 30 percent to 35 percent.

"This would not only impact the ceramic industry but also raise transportation and operational expenses, ultimately affecting end consumers," he stated.

The BCMEA called on the government to reconsider the proposed price hike to safeguard the sector's competitiveness in local and global markets.

Another pressing demand from the BCMEA was for the withdrawal of the supplementary duty (SD) on the sale of ceramic tiles and sanitary ware.

Currently, a 15 percent SD is imposed on the sale of ceramic tiles, while sanitary ware faces a 10 percent duty.

Mir Nasir Hossain, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and adviser to the BCMEA, emphasised the importance of uninterrupted gas supply for ceramic production.

"Gas is a crucial component in ceramic manufacturing, requiring a continuous 24-hour supply at a specific pressure level. Any drop in pressure can cause immediate damage to products, leading to substantial financial losses," he said.

Hossain warned that ongoing production disruptions could push manufacturers into financial distress, making them prone to becoming bank defaulters due to high interest rates.

Some companies are already on the path of collapse due to the gas shortages, he claimed, adding that despite the inadequate gas supply, factories are still required to pay the same utility bills.

Md Mamunur Rashid, vice president of the BCMEA, criticised the proposed gas price increase for new factories, with the rates being increased from Tk 30 per unit to Tk 75 per unit.

"This decision is completely illogical and would act as a major barrier to the industry's development," he said.

Regarding the SD, Rashid pointed out that the effective corporate tax rate on ceramic manufacturers reaches around 32.5 percent.

"We strongly urge the government to withdraw the proposal for imposing a 20 percent SD on the ceramic sector to ensure its sustainability and growth," he concluded.​