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Local CFL industry to double bulb production next year

Monday, 14 December 2009


FHM Humayan Kabir
The country's booming CFL bulb industry will be able to meet one-third of the domestic demand as it plans to increase production of the energy saving bulbs by almost double in the next year, assemblers said Saturday.
The local compact florescent bulb (CFL) industry has planned to supply nearly 7.0 million energy-saving lamps in 2010, about 64 per cent of the total domestic demand of 11 million pieces.
Bulb assemblers said they have supplied nearly 3.0 to 4.0 million bulbs in the current year which would be increased to 7.0 million next year as the consumers are preferring locally produced bulbs for being better quality than imported one.
A Kader Khan of the Transcom Electronics Ltd, parent company of the Transtec brand CFL assembler, told the FE they had planned to increase their production to 0.4 million pieces per month, 0.1 million pieces more than 2009 as the domestic demand was surging rapidly.
"We are hopeful the people will buy more locally produced CFL bulbs instead of imported ones as the foreign lights are sub-standard and lesser grade than local ones that assure 10,000 hours life of the bulb," he said.
"The consumers have been facing bad experiences with imported bulbs which brought positive results for the locally-made CFL."
We are hopeful, the local CFL assemblers will be able to secure 60 to 70 per cent of the total market share in the next year, the Mr. Khan, general manager of Transcom Electronics, told the FE.
At present, country's 70 per cent of the demand are met by imported CFL bulbs while the local industry supplies the rest 30 per cent, the official estimation said.
The CFL bulbs save 70-80 per cent power than traditional incandescent bulbs and have turned popular in the country over the last couple of years.
The popularity has encouraged the local entrepreneurs to set up the energy-saving light assembling plants in the country. Nearly nine companies are now producing the CFL bulbs.
Humayan Rashid, director of the Energypac Electronics Ltd., said they would boost their annual production to one million pieces next year from current year's 90,000 pieces.
"Growth of the CFL bulb consumption is increasing every year. Our local industry have a target to supply major portion of the bulbs next year," he told the FE.
Energypac, with nearly 10 per cent of the market share, have a target to increase its production to 3.0 million by 2012, Mr. Rashid said.
Non-branded and sub-standard CFL bulbs cannot save the same energy as the local assemblers claim, according to a study conducted by Energypac. These non-branded items are mainly imported from China.
Among the local CFL bulb manufacturers Energypac, Bangladesh Lamps Ltd of Transcom Electronics, IR Bulb Co Ltd, Osaka and Delta are notable.
According to Energypac's own market study, around 250 million families are now under electricity coverage, but only 20 percent of them use energy saving lights.
The rural areas remain far away from the energy saving devices mainly due to their higher costs.