Ceramic ware cos spirited as export orders go up

Yasir Wardad Local ceramic ware producers are going for high-value products following an increase in export orders, industry insiders said. The export of high-value ceramic ware, they added, could reach $100 million in the next two years, up from the present level of nearly $34 million. "Export orders for ceramic ware are increasing significantly. Most of the new buyers are asking for high-value products apart from the traditional ones," said Shinepukur Ceramics Ltd Chief Operating Officer (COO) Rizvi Ul Kabir. He said: "The wide range of Bangladeshi products has succeeded in drawing attention of the buyers. It is encouraging the local businesses to set up new industrial units and produce high-value products". Beyond the traditional markets, Japan and four Scandinavian nations emerged the new importers of Bangladeshi products, he added. He informed the FE that big companies including Porsgrund of Norway, Rostrund of Sweden, Rosendahl of Denmark, Noritake of Japan, and Villeroy & Boch of Germany were sourcing their high-value ceramic products from Bangladesh. "Local companies are now producing a wide range of bone china and porcelain tableware for retail outlets as well as for hotels. They are also producing house ware from ivory china. All these products have drawn attention of the foreign buyers," he added. Paragon Ceramics Ltd Executive Director Md Ashekul Alam pointed out that, once China-bound, the buyers now started sourcing their ceramic ware from Bangladesh. It was because they could get different kinds of such products from a single company in Bangladesh, which was not possible for Chinese companies, he elaborated. He said the exporters now fully depend on the US and EU markets for export of their ceramic products. It is not sustainable as an economic recession has jolted both sides of the Atlantic, he added. "We are seriously searching for new markets across the globe to sustain the exports," Mr Alam told the FE. He said many of the new buyers visited their ceramic industries for sourcing quality products from there at competitive prices. "The buyers have been satisfied with the quality of our products and have placed a sizable volume of export orders, mostly for high-value products," he said. The exports could reach $100 million in the next two years, "if we turn to high-value products, at least 40 per cent of our exports," he said. "We have received a good volume of orders from companies in Japan, Demark, Norway, Sweden, Finland and the UK. Few orders have also been secured from Latin American countries, Russia and South Africa" he said. He, however, disclosed that they had to pay higher tariff on export of ceramic products to new destinations like Argentina, Brazil, Chile, Uruguay, Paraguay, Russia and South Africa. He termed it a big barrier for expanding the business in those countries. "The authority concerned should negotiate with the countries and convince them to reduce the import duty," he said. Shinepukur, Paragon, Monno, Faar, People and Standard are the leading ceramic ware companies in the country. Bangladesh exports ceramic products to 50 countries including the USA, the EU countries, Australia, New Zealand, Canada, Mexico, Brazil and Chile. Export earnings from the sector were $33.75 million in the Fiscal Year (FY) '12, the Export Promotion Bureau (EPB) data showed.