[🇧🇩] Light Engineering Industry in Bangladesh

[Saif]

LIGHT ENGINEERING INDUSTRY: FORGING THE PATH FOR A BETTER ECONOMY

LIGHT ENGINEERING INDUSTRY: FORGING THE PATH FOR A BETTER ECONOMY​

Mehedi Hasan Manager Credit Risk Management IDLC Finance Limited

Light Engineering Industry (LEI) is considered as one of the key industries which is going to contribute significantly in the economy of Bangladesh. It has also enormous scope to add value to the economic parameters of this country. It is very obvious that technological advancement has logical power to shift the demand from one product to another and Light Engineering Industry has potential to create value to this technological advancement and participate positively to the economic development of Bangladesh along with reduction of poverty by creating employment opportunities. Our economy is largely concentrated on RMG export. Experts have agreed on a point that concentration of our export of more than 80% on a single sector is not sustainable in the long run and it should be diversified by a long term policy. Light Engineering Industry is considered as a thrust sector which has current contribution in GDP of around 2% and has the potential to become one of the major sources of export earning along with fulfilling the domestic demand. Light engineering mainly deals with manufacturing light (less capital intensive) products which satisfy the demand of end user and other manufacturing entities. It is one of the major sources of spare parts for several industries including agriculture (rice, jute, flour, lentil, sugar, spices, feed & bakery), gas transmission & distribution, construction machineries, kitchenware & bathroom fittings, metal products, mold & dies, transport (road & water), pharmaceutical, paper & pulp, printing & packaging, RMG & textile and others.

This industry started its journey to support the large industrial units in 1950s in East Pakistan. After 1985 the industry got accelerated due to industrialization of other industries. During that time LEI evolved mainly in Dholaikhal, Jinjira, Mirpur, Syedpur, Bogura and other areas. Bangladesh Small and Cottage Industries Corporation (BSCIC) had significant contribution to support the small entrepreneurs during that time. BSCIC provided low interest rate loan to support the LE businesses. It was observed that many prominent players in this industry got BDT 0.1 million/ BDT 0.2 million loan from BSCIC which enabled them to kick-start started their journey during 90s.
LEIs are located mainly on the industrialized areas of Bangladesh. Light Engineering clusters are based on the districts which consist of Dhaka, Chattogram, Narayangonj, Gazipur, Bogura, Natore, Pabna, and Jashore.

Industry Overview

Around 40,000 light engineering workshops/ enterprises are operating in Bangladesh where 10 million people are actively employed. Lion portion of the LE enterprises fall on cottage & micro segment. Market size of this industry is around 25,000 crore per year and before pandemic the growth rate was 20 to 25% per year. Most of the light engineering enterprises support the local need of indigenous industries. Around 90% raw material of this industry is procured from ship breaking industry. It’s been observed that the export performance of LE products has decreased by 14% during the FY 2019-20 which needs to be taken into consideration by policy makers. There are some major steps takens by the Government which will surely boost up the performance of this industry. Government has decided to establish 10 dedicated light engineering industrial parks in Dhaka, Narayanganj, Jashore, Bogura, Narsingdi, Munshiganj, Mymensingh and Madaripur. The major export destinations of LE products are India, UK & Japan, Germany. The industry currently meets up the demand for around 50% substitutes of imported items in the country which positively contributes our BoP (Balance of Payment). As per the estimation of The Business Promotion Council, operating under the commerce ministry, the industry is producing around 3,815 types of machineries, spares and accessories.

Prospects

Light Engineering Industry is considered as ‘the mother of all industries’ since it facilitates backup support of spare parts and repair to almost all industrial sectors including plastic, cement, paper, jute, textile, sugar, food processing, railway, shipping, and garments. On the other hand single sector dependency on export is a challenge for the economy. Moreover, as developing nation, duty free excess will be restricted for RMG after 2025 as it is wise to concentrate on other sectors that could participate in the export as alternative sources and light engineering industry would be one them attractive sources to our export fleet. The backward linkage is very important in an economy and light engineering industry can develop a strong backward and forward linkages between LEI and other sectors. Currently, around 10 million people are working in this industry but it has huge potential to create much more employment opportunity that will help our country reduce poverty and make labor market more efficient. Needless to say that more employment opportunity will directly push our socio-economic development on higher side. LEI can become one of the major contributors in GDP which is now only around 2%. A study showed in 2018 that Bangladesh’s total investment in LE sector is only USD 15 billion against the demand of USD 7 trillion LEI products in the global market. Encouraging this industry will lead to reduce the import of LE products which will have positive impact of our foreign currency exposure. The study also conveyed that most of the developed countries have been focusing to develop LEI that plays as catalyst role for the development of countries’ industrial base. With proper financial, technical, infrastructural, distribution support, it could play a great role in export next to RMG and Agriculture.

Business Dynamics

Raw materials used in this industry are metal scrap, pig iron, hard coke, limestone and ferroalloys such as ferrosilicon, ferromanganese and others. The price of raw material has been increased significantly which affects the bottom line profitability of this industry. The current prices of raw materials are given below:

Light engineering products are made in several phases in LE enterprises. A composite factory is fully equipped with machineries including furnace, induction furnace, different types of dice, lathe machine and others. Big players in this industry have full set up from melting raw materials in furnace to finish products. Very few of them are also using CNC (Computer numerical control) machine for perfect finishing. There are many participants in this industry those do not have factory set up with furnace and dices. They normally source unfinished products from the factories and finish in their workshop mainly equipped with several lathe & grinding machines. Production capacity is mainly depended on furnace capacity. The melting capacity of furnace is normally found starting from 5 MT to 20 MT. Based on the melting capacity of furnace, the factory is equipped with dices and other finishing lathe machines.

The production process includes sand molding, charging raw materials, melting, pouring, knocking out & finishing

Challenges

Light Engineering industry is facing many obstacles to grow. These challenges need to be identified properly and proper actions should be taken by the policymakers in order to add more value to the economic indicators of Bangladesh. Major challenges of this industry are discussed below:

Lack of Modern Technology is one the major challenges of LEI. Most of our LE enterprises are using old and backdated machineries from those the quality & competitive product cannot be produced. The leading countries of LE like China, Japan, and India are using modern technologies. They have been using CNC (Computerized and Numeric Controlled) technology since long. Whereas in Bangladesh use of CNC is rare. Normally, LE enterprises of Bangladesh applies trial & error method to develop a product which requires more time and cost as well as preciousness remains a concern.

Price fluctuation of raw materials is another concern. The current price of scrap is around BDT 47/Kg which was normally 32 to 35 before pandemic. Again, the price of imported raw materials like pig iron, hard coke, limestone and ferroalloys has also increased significantly which makes this industry difficult to maintain expected bottom line profitability.

Lack of skilled work force is also a challenge for this industry. The industry is labor intensive and manual process driven as skilled work force is very important for accurate finished products. Proper training and use of advanced technology may reduce this gap.

Price of imported LE products is comparatively lower than the products produced in country. Chinese cheap spares are available in the local market which is another obstacle to grow our indigenous LE enterprises.

Lack of capital and Finance is also a major concern of this industry. Most of the workshops can be categorized as “Small” in terms of initial capital. There are many workshops those have only one or two lathe. Due to lack of access to finance, they do not get the proper opportunity to grow even though Government has arranged some lending program for light engineering enterprises at lower interest rate.

Recent Initiatives

In 2020, Bangladesh Prime Minister Sheikh Hasina announced the LEPs as the “product of the year” during the inauguration program of Dhaka Trade Fair-2020. A 10 year tax holiday will be enjoyed by the LE product manufacturers if they cater to factories with nonfinished products or parts. Bangladesh Automobile Manufacturers and Assemblers Association (BAAMA) is trying to go for joint ventures in components and parts manufacturing and it will certainly mitigate the existing technology issues. Several pre-finance program is going on to create access to finance for LE enterprises. Government has recently decided to establish 10 dedicated light engineering industrial parks in Dhaka, Narayanganj, Jashore, Bogura, Narsingdi, Munshiganj, Mymensingh and Madaripur.
It is obvious that light engineering industry has immense scope to add value to the major economic indicators of Bangladesh. The major goal of an economy is to create employment and LEI is highly labor intensive which can create more employment opportunity and accelerate our expected growth. This industry is already acclaimed as the important sector for the future development considering the backward linkages of almost every industries. There are some challenges ahead to make this industry take off and reach the expected level. However, there are many adroit businessmen operating in this industry whose hard work and business acumen will lead this industry to desired level. Proper policy support, guidance from authority & leading businessmen, access to finance and use of advanced technology can mitigate the limitations and lead this industry to the optimum growth.

 

[Saif]

Some of the small factories in Bangladesh are making electric testers to compete Chinese ones in the market. If Govt. support is given these factories can modernize and produce much better quality light engineering products.

 

[Saif]

https://thefinancialexpress.com.bd/views/columns/light-engineering-warrants-an-institutional-shape

Light engineering warrants an institutional shape

Indisputably, the country's light engineering sector has immense potential for growth. Yet, while no one has contested this fact, it is still far from assuming the highly important role it is supposed to play.

Despite its informal nature and unregulated patterns of work, light engineering is frequently acknowledged as a promising catalyst for economic activity. Not only does it foster the growth of countless small businesses but also serves as a vital hub for the production of numerous engineering products.

As a feeder sub-sector, light engineering produces machines, equipment, tools of heterogeneous varieties for domestic usage in mills, factories and engineering workshops. Besides providing cost-cutting benefits to the consumers, its all important role is in saving foreign exchange that otherwise the country would have to spend on imports.

It is estimated that the sector currently accounts for around 50 per cent substitutes of imported items in the country. This is reflected in the support it provides to industrial, agricultural and construction sectors by manufacturing a wide range of spare parts, castings, moulds and dices, oil and gas pipeline fittings and light machinery, as well as repairing those. Equally significant is its role in job creation. Rough estimates suggest as many as 600,000 skilled and semi-skilled workers are employed by around 40,000 micro enterprises and 10,000 small and medium enterprises (SMES) under this sub-sector. The sector is reportedly manufacturing products worth Tk250 billion with local technology. The Business Promotion Council, operating under the commerce ministry, estimates that local light engineering industries produce 3,815 types of machinery, spares and accessories.

Despite the highly useful and laudable role, the downside of the sector is its failure to take an institutional shape which undermines its potential for future growth. In order for the sector to attain an institutional shape as well as desired growth and diversification, the key requirements are government policy support, public-private joint initiatives for institutional and financial assistance, availability of technical and business information, innovation and upgrading of technology, capacity building, research and development facilities and removal of a host of growth-impeding factors.

A news item published in this newspaper recently highlighted some of the prospects as well as the potential of the sub-sector that could be capitalised on for its growth as a major import-substitute industry. Quoting experts, it said by investing Tk 60 billion in the improvement of the light engineering sub-sector in a planned and targeted manner, it is possible for the country to save Tk 650 billion as import substitute of light engineering products every year. This also conversely implies that if the light engineering units, spread out all over the country, are not taken care of immediately to suit the varying demands of the consumers, imported products would soon seize the domestic market. The need for the sector's modernisation through incorporation of appropriate technology is all the more important as global competition will spare no effort to take control of niche markets.

These small and medium enterprises are currently facing serious hardships on various counts, according to the Bangladesh Engineering Industry Owners Association (BEIOA). These include a lack of advanced technology, dearth of skilled manpower, absence of product diversification and market promotion measures. Over and above, the entire industry is without any worthwhile credit finance. Industry insiders opine that bringing the innumerable work units under an integrated plan is crucially important, and to do so, a separate policy for the sector is long overdue. Supportive government policy for the sub-sector would also facilitate adoption of work programme for product development and product adaptation for both domestic consumption and export.

Although lacking in institutional shape, light engineering in the country has a solid foundation since long, aided mainly by a considerably big pool of skilled and semi-skilled workforce. While the need to train the workforce to upgrade skills is important, more important is the need to energise it by facilities for large-scale technology upgrading which can happen through increased investment. Insiders are of the view that segmenting the sector along the types of works done might offer the opportunity for the government to look at the prospects of each of the sub-sectors as well as identify the support they need--- not only policy-related, but also technological and financial and so forth. Observers feel that some fiscal incentives are also needed for the sector, such as concession in payment of VAT.

Concerned quarters believe that there is a critical need for basic infrastructural facilities like gas, electricity, water and dumping yards. This may be possible with arrangements for the units to be located in dedicated work zones in clustered forms depending on the types of works performed. So, a good deal needs to be thought out to work on a systematic plan of action to set things right for the industry to keep growing. It is in this context that the PM's declaration, a couple of years ago, of light engineering as the product of the year should be seen as more than just motivational but a pressing call for appropriate policies and actions to equip the sector with the vigour and strength it so badly needs.​

 

[Saif]

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thefinancialexpress.com.bd

বিএফটিআই এর হালকা প্রকৌশল শিল্প বিষয়ক পরামর্শ সভা অনুষ্ঠিত
এফই অনলাইন ডেস্ক
Published :
May 14, 2024 17:50
Updated :
May 14, 2024 17:50

বাংলাদেশ বিনিয়োগ উন্নয়ন কর্তৃপক্ষের (বিডা) এর উদ্যোগে, 'Potentials of the Light Engineering Industry/Sector in Bangladesh' শীর্ষক গবেষণা কার্যক্রমটি বাংলাদেশ ফরেন ট্রেড ইনস্টিটিউট (বিএফটিআই)-পরিচালনা করছে।

এর অংশ হিসেবে ১৪ মে, ২০২৪ তারিখে বিএফটিআই এর সম্মেলন কক্ষে একটি অংশীজন পরামর্শ সভা অনুষ্ঠিত হয়েছে।

এই সভায় প্রধান অতিথি হিসেবে উপস্থিত ছিলেন বিএফটিআই এর প্রধান নির্বাহী কর্মকর্তা ও বাণিজ্য মন্ত্রণালয়ের সাবেক সিনিয়র সচিব ড. মোঃ জাফর উদ্দীন।

সভায় বিশেষ অতিথি হিসেবে উপস্থিত ছিলেন বাংলাদেশ বিনিয়োগ উন্নয়ন কর্তৃপক্ষের (বিডা) এর পরিচালক (যুগ্ম সচিব) জনাব এম মিজানুর রহমান।

অনুষ্ঠানে সভাপতিত্ব করেন বিএফটিআই এর পরিচালক মোঃ ওবায়েদুল আজম। বিএফটিআই এর এক প্রেস বিজ্ঞপ্তি থেকে এ তথ্য জানা যায়।

প্রধান অতিথি ড. মোঃ জাফর উদ্দীন বলেন, "লাইট ইঞ্জিনিয়ারিং একটি সম্ভাবনাময় শিল্প। এই খাতের উন্নয়নের জন্য সরকার নানাবিধ পদক্ষেপ গ্রহণ করেছে এবং সরকারের সকল মন্ত্রণালয় ও সংস্থা একযোগে কাজ করছে। বাংলাদেশ বিনিয়োগ উন্নয়ন কর্তৃপক্ষের (বিডা) উদ্যোগে এই গবেষণাটি বিএফটিআই কর্তৃক পরিচালনা করতে পারায় আমরা আনন্দিত।"

বিশেষ অতিথি বাংলাদেশ বিনিয়োগ উন্নয়ন কর্তৃপক্ষের (বিডা) এর পরিচালক (যুগ্ম সচিব) জনাব এম মিজানুর রহমান বলেন, "লাইট ইঞ্জিনিয়ারিং শিল্পের পরিধি অনেক বড়। সরকার লাইট ইঞ্জিনিয়ারিং শিল্পকে গুরুত্ব দিচ্ছে। এ শিল্পে বিনিযোগ আকর্ষণের ব্যাপক সম্ভাবনা রয়েছে।"

এছাড়াও সভায় উপস্থিত বাংলাদেশ ইঞ্জিনিয়ারিং ইন্ডাস্ট্রি ওনার্স এসোসিয়েশন এর সভাপতি জনাব আবদুর রাজ্জাক সহ পাবলিক ও প্রাইভেট সেক্টরের প্রতিনিধিবৃন্দ তাদের মূল্যবান মতামত প্রদান করেন।​

 

[Bilal9]

Prime Machineries is an example of medium sized companies who make bespoke machinery targeted toward shoe Industries and other sectors like Melamine cookware. They have effectively substituted imports of machineries for non-automated sectors like these.

 

[Bilal9]

Bangladesh Cable Industry was founded sixty plus years ago and has continued to forge ahead beyond various types of Home wiring and ACSR power cable products, they now produce advanced telecom cable products in copper as well as glass fiber (fiber optics cable). It was originally a govt. sector undertaking and remains so today.

 

[Saif]

Bangladesh Cable Industry was founded sixty plus years ago and has continued to forge ahead beyond various types of Home wiring and ACSR power cable products, they now produce advanced telecom cable products in copper as well as glass fiber (fiber optics cable). It was originally a govt. sector undertaking and remains so today.

We should invite private investment in this sector massively. Only one public industry is not enough to meet the local demand let alone exporting to other countries. Can't we produce raw materials for this industry locally? If we can, it will save us huge foreign currency.

 

[Bilal9]

Extruded UPVC door and CNC machine made engraved solid wooden doors manufacturing in Bangladesh. Horrible designs though, they need some design help.

 

[Bilal9]

In the bustling heart of Gazipur's Sreepur Upazilla, Alpha Carbon Technology Limited hums with activity. Here, a 20-year-old woman, Suraiya, meticulously assembles carbon fiber pieces for $2000 Bicycles by hand in an intricate process that requires her to arrange 268 individual pieces with precision and focus without the aid of machinery. Once again, Bangladesh is the pioneering entrant in this Bike export light engineering sector, as seen two decades earlier with Chromoly aluminum alloy bike exports.

Suraiya is among the 365 workers, predominantly women, who make carbon fiber components for bicycle frames, forks, and seat posts.

Working under the guidance of around two dozen technicians from China and Taiwan, they assemble pre-cut carbon sheets with precision in every step of the process.



These efforts represent a notable milestone for Bangladesh as it becomes the pioneering South Asian nation to produce high-value carbon components for bicycles.

A single carbon fibre bicycle frame commands a price of around $200, equivalent to the export value of 166 T-shirts priced at $1.2 each. In contrast, a steel frame costs only $20, while aluminum frames range from $30 to $40.

The factory, established through a collaboration between Meghna Group, the largest bicycle manufacturer and exporter in Bangladesh, and partners from Germany and Taiwan, currently operates with a production capacity of 50,000 frames, 100,000 forks, and 240,000 seat posts annually.



Demand rising for carbon frames

With export demands on the rise, Alpha Carbon Technology Ltd has decided to expand the factory's capabilities to meet the growing orders since the start of its commercial production early last year.

"We will double our frame production capacity to 100,000 units by July next year, driven by an increase of new orders," said Javed Hossain Khan, general manager of the company.

Photo: Syed Zakir Hossain

Javed expressed confidence in the company's future export prospects, citing successful product testing in key markets such as Germany, Sweden, and the UK.

Meghna, in a joint venture, is pioneering the manufacture of carbon fiber bicycle components for export — a strategic move poised to help Bangladesh diversify its export base reducing its heavy dependence on ready-made garments.

The global carbon fiber bike market, which remains relatively modest at around $3 billion in 2023 in stark contrast to the traditional bicycle market of over $80 billion, is expanding rapidly due to its remarkable attributes, including durability, lightweight construction, superior strength and corrosion resistance.

One of the two dozen highly skilled Chinese and Taiwanese technicians, experts in crafting carbon fiber bicycle components, is mentoring a local worker at Alpha Carbon Technology Limited factory in Sreepur upazila of Gazipur. The photo was taken recently.

One of the two dozen highly skilled Chinese and Taiwanese technicians, experts in crafting carbon fiber bicycle components, is mentoring a local worker at Alpha Carbon Technology Limited factory in Sreepur upazila of Gazipur. The photo was taken recently.

Moreover, consumers in the Western markets are increasingly favoring eco-friendly carbon fiber bicycles over aluminum or steel alternatives.

Will diversify country's export basket

Mizanur Rahman, chairman of Meghna Group, emphasized the strategic significance of introducing this technology to Bangladesh. "The goal is to diversify the country's export opportunities, especially amidst a decline in traditional bicycle sales, notably in crucial markets like the European Union and the UK throughout 2023," he said.

According to data from the Export Promotion Bureau, Bangladesh's bicycle exports totaled only $53.87 million during July-February of the current fiscal year, marking a steep decline of nearly 45% from the $97.50 million recorded for the same period a year earlier.

"We will not be able to boost our exports solely on low-end products after graduating from the LDC status in 2026. We must pivot towards producing high-end goods for global markets," Mizanur told TBS.

A row of carbon fiber frames for high-end bicycles can be seen at Alpha Carbon Technology Limited in Boromi, Sreepur upazila of Gazipur.

As an example, he cited Japan's evolution from garment manufacturing, a position akin to Bangladesh's current status, toward high-end manufacturing sectors over time. He anticipated that the apparel production currently dominated by Bangladesh might eventually shift to African nations.

"As part of this strategy, we have made investments in the production of carbon fiber components for bicycles. We are currently manufacturing three key components, but our next step is to introduce carbon fiber handles. Following that, we have plans to export bicycles entirely crafted from carbon fiber," Mizanur said.

"The export value of a carbon fiber bicycle starts at no less than $1,000, with retail prices often exceeding $2,000 per unit. With government support, Alpha Carbon could potentially export at least $100 million worth of carbon fibre bicycle products per year," he said.

Photo: Syed Zakir Hossain

"However, achieving this goal will not be without challenges. The company requires government assistance, primarily due to the substantial 60% import duty on the essential raw material, carbon fibre, imported from Japan," Mizanur said.

"Additionally, the lack of a consistent power supply presents a significant hurdle. Finally, acquiring a bond licence is essential for Alpha to sustain competitiveness in the global export market," said the Meghna Group chairman, calling for a 10-15% government incentive over the next three years to enhance competitiveness with manufacturers from other countries.

"We do not want incentives for years or decades. We will achieve competitiveness as a carbon fibre component manufacturer within a few years," he said.

Bond facility will help

About the bond license, Md Luthful Bari, chief operating officer of Alpha Carbon, said they need the licence as it will enable them to import duty-free raw materials and machinery. Also, as per the Customs Act 1969, 100% of export-oriented businesses are eligible to get bond facilities.

Bond licenses, particularly for industries like garments and textiles, have been instrumental in fostering industrial development and significantly contributing to the economic growth of the country.

Bari also emphasized the importance of uninterrupted power supply, saying that the lack of quality power could potentially damage their machinery and products.

Photo: Syed Zakir Hossain

Photo: Syed Zakir Hossain

What are carbon fibre bikes and who buys them?

A carbon fibre bike is a bicycle constructed primarily using carbon fibre sheets, also referred to as prepreg material, which is precisely cut into specific shapes and sizes according to the design of the frame, fork, seat post or wheelset.

These bikes are predominantly utilized in high-end racing applications. Common types of carbon fiber bicycles include road bikes, mountain bikes, city bikes, and more.

The demand for carbon fiber bikes is particularly high among athletes, with road bikes being especially favored in Europe and North America — the main markets for this type of bicycle. The cost of manufacturing such bikes is anticipated to decrease, potentially leading to a shift in major markets towards countries like China and other developing nations.

Which countries make components for carbon fiber bikes

Several countries specialize in manufacturing components for carbon fiber bikes. Taiwan stands out as a leading producer, renowned for its advanced manufacturing capabilities and expertise in carbon fiber technology.

China also plays a significant role, with numerous factories catering to both domestic and international bicycle brands.

Among the EU countries, Italy boasts a long tradition of bicycle manufacturing and is esteemed for its craftsmanship and innovation in carbon fibre technology. Also, Germany manufactures this kind of bicycle as it is known for its engineering prowess.

Bangladesh is now one of the half-a-dozen countries globally to specialize in producing these ultra high tech products.

Photo: Syed Zakir Hossain

In the United States, particularly in states like California and Colorado, companies focus on high-performance carbon components for various types of bikes.

While Japan, though not as prominent, excels in precision engineering and high-quality standards. These countries collectively contribute to the global supply chain for carbon fiber bike components, meeting the demands of cyclists worldwide.

Bangladesh enters high-value carbon fibre bike parts making

In the bustling heart of Gazipur's Sreepur upazila, Alpha Carbon Technology Limited hums with activity.

www.tbsnews.net

 

[Bilal9]

Artificial Quartz Engineered export quality (honed and polished) stone slabs made in Mirzapur Bangladesh.

 

[Bilal9]

Carbon fiber parts of bicycles are now being manufactured in Bangladesh. Bicycle frames, forks and seat posts are being manufactured at the Alpha Carbon Technology factory established at Barmi in Sreepur Upazila of Gazipur. Which is being exported to various European countries including Germany.

 

[Saif]

Light engineering expo, Bangladesh aims to export $100b in $7t global market

Bangladesh is poised to significantly increase its footprint in the global engineering and light engineering products market, currently valued at a staggering US $7 trillion - of which the country’s contribution amounts to less than 1% at present. Industry leaders rather bullishly believe th

thefinancialexpress.com.bd

Light engineering expo, Bangladesh aims to export $100b in $7t global market

UNB
Published :
May 27, 2025 20:35
Updated :
May 27, 2025 20:35

Bangladesh is poised to significantly increase its footprint in the global engineering and light engineering products market, currently valued at a staggering US $7 trillion - of which the country’s contribution amounts to less than 1% at present.

Industry leaders rather bullishly believe that with adequate policy support, investment, and infrastructure development, Bangladesh could export up to $100 billion worth of engineering products.

This optimistic outlook was shared by Md. Abdur Razzaque, President of the Bangladesh Engineering Industry Owners’ Association (BEIOA), during a press conference held on Tuesday at the Economic Reporters Forum Auditorium in Dhaka.

The press conference announced the upcoming Bangladesh Light Engineering Expo 2025, organized by BEIOA in collaboration with the Export Competitiveness for Jobs (EC4J) project under the Ministry of Commerce.

The domestic market for engineering products in Bangladesh is approximately Tk40,000 crore, with local industries fulfilling up to 50 percent of the demand, leaving the remainder to imports.

BEIOA president Razzaque highlighted the light engineering sector’s substantial contribution to the national economy, employing over 3 lakh people and contributing nearly 3 percent to the country’s GDP. The sector’s annual exports exceed $795 million, playing a crucial role in economic diversification and job creation.

The Bangladesh Light Engineering Expo 2025 is scheduled for May 29 and May 30 at the Shahid Abu Sayed International Convention Center, Shahbagh, Dhaka. The two-day event will feature leading domestic light engineering companies showcasing their latest technologies, components, and innovative products. Participating firms will have the opportunity to present their goods and services, connecting with new buyers and potential investors.

Selected companies will exhibit products such as dye and mould, industrial parts, agricultural equipment, metal casting, and electric equipment.

Razzaque emphasized that the expo serves as a platform for BEIOA to seek government support for modernizing domestic industries, facilitating technology transfer, improving product quality, and expanding exports. He urged the government to provide incentives comparable to those offered by competing nations like Vietnam, China, and India to enhance the light engineering sector’s global competitiveness and sustainability.

Key requests to the government include establishing compliance-enabled industrial zones for light engineering products, reducing customs duties on raw materials, and providing cash incentives and priority access to bank loans.

He also stressed the need for technology transfer, modern design development, and necessary training for technical excellence. Furthermore, Razzaque called for a simple and effective patent registration system to protect locally manufactured components and designs, and appealed for training and incentives to increase employment opportunities for women and youth.

Responding to journalists’ questions, Razzaque confirmed that the expo will feature 44 stalls from 27 domestic companies.

Md. Abdur Rahman Khan, EC4J Project Director, stated that the light engineering sector is one of four sectors that can closely compete with the readymade garment industry.

He assured that the government is working to meet the demands of the sector to facilitate further improvement.

Khan highlighted the expo as a crucial platform to connect manufacturers, importers, and buyers, emphasizing that showcasing Bangladesh’s potential will help reduce import dependency and accelerate exports.​