[🇧🇩] Light Engineering Industry in Bangladesh

[Saif]

Govt should afford needed fillip to light engineering sector

LIGHT engineering, which could fetch up to $100 billion from export if properly nourished, warrants that the government should provide the sector with policy support, scopes for investment and the needed infrastructural development. It is in this...

www.newagebd.net

Govt should afford needed fillip to light engineering sector
31 May, 2025, 00:00

LIGHT engineering, which could fetch up to $100 billion from export if properly nourished, warrants that the government should provide the sector with policy support, scopes for investment and the needed infrastructural development. It is in this context, people involved in the sector have called for dedicated industrial parks or zones for the establishment of factories, keeping to global standards, to compete on the international market. The stakeholders have also demanded adequate policy support, which includes tax issues especially on the import of raw materials, at the inauguration of a two-day light engineering exposition held in Dhaka on May 29. The Bangladesh Engineering Industry Owners’ Association and the Export Competitiveness for Jobs Project of the commerce ministry have organised the exhibition. The commerce secretary, who attended the occasion as chief guest, has said that Bangladesh needs to prioritise engineering and technology export, where the light engineering sector could play an important role. The sector is said to have accounted for 3 per cent of the gross domestic product in the 2022 financial year whilst the apparel sector accounted for 9.25 per cent of the gross domestic product that financial year.

A Bangladesh Investment Development Authority report on the light engineering sector, published in June 2024, shows an almost consistent growth in light engineering product export, beginning with $355.97 million in the 2018 financial year that reached $795.63 million in the 2022 financial year, with a decline in the 2020 financial year. The report, however, shows a decline to $585.85 million in the 2023 financial year. The sector is reported to be generating about Tk 200 billion and the market is reported to be growing at 10 per cent. There are about 7,500 units — factories, shops and workshops — at Dholaikhal and Jinjira, the light engineering hubs of the capital city, that employ about 60,000 people. The needed fillip for the sector could create an opportunity for the innovation and diversification of the sector and Bangladesh should seize the opportunity. The commerce secretary at the programme has said that the government wants to meet light engineering entrepreneurs as small changes could improve the industry. The export of light engineering products, which have fetched some money, has remained somewhat stagnant for long. Because the entrepreneurs in the sector are faced with the shortage of capital and have limited connections on the international market. The government should now seriously take note of the barriers that hinder the growth of the light engineering sector.

The government should, therefore, afford the needed fillips to the light engineering sector on issues that have come up to reap the benefits. It should also attend to the issue of skills of the people employed in the sector.​

 

[Bilal9]

Bangladeshi ingenuity knows no bounds. Local problem (water hyacinth propagation) with local solutions.

 

[Bilal9]

Bangladesh Strengthens Its Position in EU Bicycle Markets!​

China may be the global leader in bicycle exports, but Bangladesh is making significant strides in key EU markets like Germany, Austria, and Denmark.

In Germany, Bangladesh holds a dominant share over China (71.5% vs. 20.9%), with similar trends in Austria (9.98% vs. 0.14%) and Denmark (5.3% vs. 0.93%). The EU's annual bicycle import volume hit $4.5 billion in 2022, and Bangladesh is positioning itself as a key supplier.

As demand for sustainable mobility grows, this presents an exciting opportunity for Bangladeshi bicycle manufacturers to expand further into the European market!

 

[Bilal9]

Bangladesh Bicycle exports rebound after two-year slump​

Bangladesh's bicycle exports are showing signs of recovery, rebounding after two years of decline since peaking during the pandemic-era boom.

Exports rose to $117 million in the last fiscal year (FY) 2024-25, marking a 41 percent increase from the previous fiscal year's $83 million, which marked the industry's lowest point in five years, according to data from the Export Promotion Bureau (EPB) released recently.

Exports of the two-wheeler had peaked at $168 million in FY2021-22, driven by a surge in European orders during lockdowns, when cycling became a preferred means of commuting and recreation due to social distancing requirements.

"The demand for bicycles in the European market experienced a significant surge during the pandemic period. This was largely driven by a growing preference for individual and environmentally friendly transportation options that supported social distancing," said Md Luthful Bari, chief operating officer at the Meghna Group of Companies, one of the largest bicycle exporters in the country.

He, however, noted that the trend shifted sharply in 2023. As economies reopened, global demand declined, retailers were left with excess stock, and Bangladesh's bicycle exports dropped to $142 million in FY2022-23 before falling further in the next fiscal year.

"The ongoing geopolitical crisis in Europe, particularly the Russia-Ukraine war, had a direct and adverse impact on the bicycle market," he said.

Industry insiders say the recent export uptick suggests early signs of stabilisation.

Exporters cite easing freight costs, improved global logistics, and renewed interest in low-cost, sustainable mobility as contributing factors. Some Bangladeshi manufacturers have also shifted towards value-added products, including lightweight and electric bicycles, in a bid to stay competitive.

"Exports are gradually increasing as international buyers have started placing new orders," said Bari.

Meanwhile, Kamruzzaman Kamal, marketing director of Pran-RFL Group, another major player, said, "In total, we've seen around 20 percent growth."

He credited the growth to targeted market diversification and product adaptation to meet global standards.

"We've opened up several new markets, including in the USA, and seen moderate recovery in European sales," Kamal told The Daily Star recently. "At the same time, we've resolved some key product development issues, which helped push export volumes up."

He added that the opening of new international markets has begun yielding positive results, with increased sales from the USA market contributing significantly to the company's recent export performance.

Kamal noted that while the company introduced electric bicycles in recent initiatives, these were not entirely new products, but refinements within existing lines aimed at meeting international regulatory requirements.

"There were some technical compliance issues, particularly around product size and safety regulations, that we had to address for specific export destinations," he explained. "These adjustments were critical for continuing access to key markets."

The improvements come after a challenging period marked by adverse weather, slowing demand in Europe, and the ongoing fallout from the Russia-Ukraine war, all of which had dampened export performance in previous years

The improvements come after a challenging period marked by adverse weather, slowing demand in Europe, and the ongoing fallout from the Russia-Ukraine war, all of which had dampened export performance in previous years, he said.

"With the geopolitical climate now somewhat stabilised and economic activities picking up in our core markets, we are seeing renewed growth," Kamal said.

Despite the improvement, Bangladesh's bicycle exports remain 30 percent below their FY22 peak, highlighting that the sector's recovery is far from complete. Rising production costs and competition from low-cost producers such as Cambodia and Vietnam continue to weigh on local manufacturers.

Bari, however, remains optimistic that the sector will continue to recover gradually as market conditions stabilise and buyers resume regular procurement.

 

[Saif]

Bangladesh Bicycle exports rebound after two-year slump​

View attachment 22095

Bangladesh's bicycle exports are showing signs of recovery, rebounding after two years of decline since peaking during the pandemic-era boom.

Exports rose to $117 million in the last fiscal year (FY) 2024-25, marking a 41 percent increase from the previous fiscal year's $83 million, which marked the industry's lowest point in five years, according to data from the Export Promotion Bureau (EPB) released recently.

Exports of the two-wheeler had peaked at $168 million in FY2021-22, driven by a surge in European orders during lockdowns, when cycling became a preferred means of commuting and recreation due to social distancing requirements.

"The demand for bicycles in the European market experienced a significant surge during the pandemic period. This was largely driven by a growing preference for individual and environmentally friendly transportation options that supported social distancing," said Md Luthful Bari, chief operating officer at the Meghna Group of Companies, one of the largest bicycle exporters in the country.

He, however, noted that the trend shifted sharply in 2023. As economies reopened, global demand declined, retailers were left with excess stock, and Bangladesh's bicycle exports dropped to $142 million in FY2022-23 before falling further in the next fiscal year.

"The ongoing geopolitical crisis in Europe, particularly the Russia-Ukraine war, had a direct and adverse impact on the bicycle market," he said.

Industry insiders say the recent export uptick suggests early signs of stabilisation.

Exporters cite easing freight costs, improved global logistics, and renewed interest in low-cost, sustainable mobility as contributing factors. Some Bangladeshi manufacturers have also shifted towards value-added products, including lightweight and electric bicycles, in a bid to stay competitive.

"Exports are gradually increasing as international buyers have started placing new orders," said Bari.

Meanwhile, Kamruzzaman Kamal, marketing director of Pran-RFL Group, another major player, said, "In total, we've seen around 20 percent growth."

He credited the growth to targeted market diversification and product adaptation to meet global standards.

"We've opened up several new markets, including in the USA, and seen moderate recovery in European sales," Kamal told The Daily Star recently. "At the same time, we've resolved some key product development issues, which helped push export volumes up."

He added that the opening of new international markets has begun yielding positive results, with increased sales from the USA market contributing significantly to the company's recent export performance.

Kamal noted that while the company introduced electric bicycles in recent initiatives, these were not entirely new products, but refinements within existing lines aimed at meeting international regulatory requirements.

View attachment 22096

"There were some technical compliance issues, particularly around product size and safety regulations, that we had to address for specific export destinations," he explained. "These adjustments were critical for continuing access to key markets."

The improvements come after a challenging period marked by adverse weather, slowing demand in Europe, and the ongoing fallout from the Russia-Ukraine war, all of which had dampened export performance in previous years, he said.

"With the geopolitical climate now somewhat stabilised and economic activities picking up in our core markets, we are seeing renewed growth," Kamal said.

Despite the improvement, Bangladesh's bicycle exports remain 30 percent below their FY22 peak, highlighting that the sector's recovery is far from complete. Rising production costs and competition from low-cost producers such as Cambodia and Vietnam continue to weigh on local manufacturers.

Bari, however, remains optimistic that the sector will continue to recover gradually as market conditions stabilise and buyers resume regular procurement.

I urge the Indians to buy bicycles from Bangladesh. How big is the Indian bicycle market?