Heyday for plastic home appliances
Thursday, 13 May 2010
Monira Munni
The demand for plastic household appliances is on the rise in the domestic market, driving the growth of the synthetic products industry upwards in the country.
"Demand for plastic home appliances is increasing remarkably as they are cheap and easy to move," Ferdous Wahed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), told the FE.
Domestic demand for plastic products was 540,000 tonnes in 2005. Since then the demand has been growing at 30 per cent annually, he said.
Market for plastic home appliances is poised to grow further as the local industry is now bringing in innovative and attractive designs in their product ranges while maintaining a much cheaper price range, he explained.
As a backward linkage industry, major players have so far manufactured items for industrial use, but recently many of them have shifted their focus on home users since they have noticed a significant increase in their sales.
"Earlier, we used to concentrate more on plastic products intended for industrial use, but recently we have switched much of our focus to household plastic items realising their market potential," a manufacturer said.
Major plastic household items that reported significant sales include chair and table as well as buckets, dishes, jugs, tiffin boxes and crockery, he said.
With the growth of plastic manufacturing sector, plastic industries have been successfully exporting plastic products to the developed countries.
Exports of plastic products are rising every year, with products worth $56 million shipped during the 2008-09 fiscal year, which was only $22 million in the 2003-04 fiscal year.
BPGMEA sources said Bangladesh is now exporting plastic shopping bags, garbage bags, butcher bags, oven sacks, industrial films, PVC pipes, polythene sheet, plastic hanger, hand gloves, ropes, plastic waste, V-belt, toys, electronic switches, polyester thread, computer accessories, video/audio cassette, melamine tableware, toothbrush, ball pen and artificial flower etc.
Some Bangladeshi companies have also started manufacturing plastic furniture and plastic accessories for global market. Some consignments of such products have already been exported, the BPGMEA sources said.
Poland, China, UK, Belgium, France, Germany, the USA, Canada, Spain, India, Nepal, Bhutan, Australia, Sri Lanka, Japan, Malaysia, the UAE and Italy are the major plastic markets for Bangladesh goods, they said.
Products like coat-hangers have huge demand in the local readymade garments sector as well as in the international market.
Mahbubul Wahid, general manager (Marketing) of RFL Plastics Ltd said his firm, in joint venture with two US-based companies, manufactures hangers to supply to Spain.
Bangladesh is now producing products that can match international standard, said Jasim Uddin, vice-chairman of Bengal Group of Industries.
He said Bangladesh has already earned international standard in manufacturing medicine-related plastic products, which are also exported.
"China is our main competitor as they do not require importing raw materials. Chinese companies manufacture a huge number of products," Rubel Aziz, managing director of Plastic Accessories Ltd of Partex Group, said.
Local plastic products are failing to compete with the imported ones in the domestic market due to 25 per cent duty levied on the imports of raw materials as opposed to only five per cent duty on finished imported plastic products.
"The higher duty for import of raw materials has increased our cost of production. As a result, we are falling behind finished product importers," said a local manufacturer.
Mr Aziz said Bangladesh can be a leading plastic exporting country if the manufacturers enjoy zero per cent duty facility like their Sri Lankan counterparts.
According to industry estimates, with its 4,000 factories the country's Tk 50 billion plastic industry can produce world class plastic products that have a global market of $500 billion.
About 1.0 million people are engaged in the industry directly, while more than 2.0 million people are dependent on the sector.
The demand for plastic household appliances is on the rise in the domestic market, driving the growth of the synthetic products industry upwards in the country.
"Demand for plastic home appliances is increasing remarkably as they are cheap and easy to move," Ferdous Wahed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), told the FE.
Domestic demand for plastic products was 540,000 tonnes in 2005. Since then the demand has been growing at 30 per cent annually, he said.
Market for plastic home appliances is poised to grow further as the local industry is now bringing in innovative and attractive designs in their product ranges while maintaining a much cheaper price range, he explained.
As a backward linkage industry, major players have so far manufactured items for industrial use, but recently many of them have shifted their focus on home users since they have noticed a significant increase in their sales.
"Earlier, we used to concentrate more on plastic products intended for industrial use, but recently we have switched much of our focus to household plastic items realising their market potential," a manufacturer said.
Major plastic household items that reported significant sales include chair and table as well as buckets, dishes, jugs, tiffin boxes and crockery, he said.
With the growth of plastic manufacturing sector, plastic industries have been successfully exporting plastic products to the developed countries.
Exports of plastic products are rising every year, with products worth $56 million shipped during the 2008-09 fiscal year, which was only $22 million in the 2003-04 fiscal year.
BPGMEA sources said Bangladesh is now exporting plastic shopping bags, garbage bags, butcher bags, oven sacks, industrial films, PVC pipes, polythene sheet, plastic hanger, hand gloves, ropes, plastic waste, V-belt, toys, electronic switches, polyester thread, computer accessories, video/audio cassette, melamine tableware, toothbrush, ball pen and artificial flower etc.
Some Bangladeshi companies have also started manufacturing plastic furniture and plastic accessories for global market. Some consignments of such products have already been exported, the BPGMEA sources said.
Poland, China, UK, Belgium, France, Germany, the USA, Canada, Spain, India, Nepal, Bhutan, Australia, Sri Lanka, Japan, Malaysia, the UAE and Italy are the major plastic markets for Bangladesh goods, they said.
Products like coat-hangers have huge demand in the local readymade garments sector as well as in the international market.
Mahbubul Wahid, general manager (Marketing) of RFL Plastics Ltd said his firm, in joint venture with two US-based companies, manufactures hangers to supply to Spain.
Bangladesh is now producing products that can match international standard, said Jasim Uddin, vice-chairman of Bengal Group of Industries.
He said Bangladesh has already earned international standard in manufacturing medicine-related plastic products, which are also exported.
"China is our main competitor as they do not require importing raw materials. Chinese companies manufacture a huge number of products," Rubel Aziz, managing director of Plastic Accessories Ltd of Partex Group, said.
Local plastic products are failing to compete with the imported ones in the domestic market due to 25 per cent duty levied on the imports of raw materials as opposed to only five per cent duty on finished imported plastic products.
"The higher duty for import of raw materials has increased our cost of production. As a result, we are falling behind finished product importers," said a local manufacturer.
Mr Aziz said Bangladesh can be a leading plastic exporting country if the manufacturers enjoy zero per cent duty facility like their Sri Lankan counterparts.
According to industry estimates, with its 4,000 factories the country's Tk 50 billion plastic industry can produce world class plastic products that have a global market of $500 billion.
About 1.0 million people are engaged in the industry directly, while more than 2.0 million people are dependent on the sector.