Local cos steadily grabbing steel furniture market
Tuesday, 26 October 2010
Monira Munni
Local specialised steel furniture are gradually getting popular and grabbing a significant portion of the market share mainly due to growing demand in the country's health sector.
However, small manufacturers said they are struggling hard to sustain because of 10-12 per cent rise in prices of raw materials, such as steel, and unavailability of accessories in the local market, sources said.
"Prices of mild steel (MS) rod have increased following the rise in ship scrap prices," Shamsul Alam, a steel furniture manufacturer said.
Due to price hike, local steel furniture especially home furniture are being replaced by cheap Chinese furniture, he said, adding that the customers consider the prices at first rather than longevity of the products.
His factory produces furniture for hospitals, clinics and educational institutions on contract basis for some medium and large companies.
The local manufacturers are now supplying at least 35-40 per cent of the total demand, which is worth Tk 450-500 million. They are producing more than 50 types of hospital furniture ranging from saline stands and waiting room chairs to different beds, industry insiders said.
There are around 20 small, medium and large furniture manufacturers in the market with Otobi, which started producing hospital furniture in 1990, leading the array.
Hospitals can now buy furniture from the local market at competitive prices due to high import cost and lack of after-sales service, an Otobi official said.
"Buyers get after-sales services for at least three years in case of local furniture, while imported product suppliers can hardly provide any such service," he said.
Apart from brands like Otobi and Navana, medium-scale manufacturers have joined the race to meet the growing demand for hospital and surgical equipments.
They manufacture products like waiting room chairs, trolleys and lockers etc, mainly for different laboratories and low-cost clinics.
However, prominent hospitals and clinics prefer imported furniture, as most of the local manufacturers are yet to improve their product quality, experts said.
Local specialised steel furniture are gradually getting popular and grabbing a significant portion of the market share mainly due to growing demand in the country's health sector.
However, small manufacturers said they are struggling hard to sustain because of 10-12 per cent rise in prices of raw materials, such as steel, and unavailability of accessories in the local market, sources said.
"Prices of mild steel (MS) rod have increased following the rise in ship scrap prices," Shamsul Alam, a steel furniture manufacturer said.
Due to price hike, local steel furniture especially home furniture are being replaced by cheap Chinese furniture, he said, adding that the customers consider the prices at first rather than longevity of the products.
His factory produces furniture for hospitals, clinics and educational institutions on contract basis for some medium and large companies.
The local manufacturers are now supplying at least 35-40 per cent of the total demand, which is worth Tk 450-500 million. They are producing more than 50 types of hospital furniture ranging from saline stands and waiting room chairs to different beds, industry insiders said.
There are around 20 small, medium and large furniture manufacturers in the market with Otobi, which started producing hospital furniture in 1990, leading the array.
Hospitals can now buy furniture from the local market at competitive prices due to high import cost and lack of after-sales service, an Otobi official said.
"Buyers get after-sales services for at least three years in case of local furniture, while imported product suppliers can hardly provide any such service," he said.
Apart from brands like Otobi and Navana, medium-scale manufacturers have joined the race to meet the growing demand for hospital and surgical equipments.
They manufacture products like waiting room chairs, trolleys and lockers etc, mainly for different laboratories and low-cost clinics.
However, prominent hospitals and clinics prefer imported furniture, as most of the local manufacturers are yet to improve their product quality, experts said.