Local companies now dominate the electrical accessories and lighting market with their state-of-the-art technologies, diversified product lines and time-befitting innovations designed to meet changing consumer demand.
Industry insiders say the sector has transformed significantly over the last three decades, gradually reducing the country's dependence on imported products and creating a strong domestic manufacturing base for the industry to flourish.
The market has been growing at an annual rate of 15 per cent, driven by extensive electrification initiatives across the country, sustained economic growth, rising incomes, rapid urbanisation and massive rural- development projects.
The industry, driven by local players, is expected to double its market size to Tk 400 billion within next five years if the country's economy maintains a healthy growth, says Harun Ur Rashid, Managing Director of Super Star Group (SSG), in an exclusive interview with the Financial Express and its digital team.
He says the expansion of housing, commercial establishments, industries and infrastructure projects has also contributed to the increasing demand for electrical accessories and lighting, cables, fans and others.
According to Marketing Watch Bangladesh, more than 0.50 million people are currently involved in the industry, including around 150,000 retailers and nearly 2,500 entrepreneurs nationwide.
The sector has emerged as one of the country's promising manufacturing industries with strong backward-and forward-linkage opportunities.
Local companies now dominate the branded segment, accounting for nearly 60-70 per cent of electrical accessories and lighting of the domestic market.
Mr Rashid notes that local manufacturers have gained consumer trust by ensuring better quality, affordable pricing and after-sales service compared to many imported alternatives.
"The local industry currently manufactures a wide range of products, including switches, sockets, holders, multi-plugs, circuit-breakers, meters and various lighting solutions such as LED bulbs, tube lights, panels, floodlights, emergency lighting systems," he says.
Manufacturers are also entering renewable energy-related products and smart electrical solutions to meet changing market demand.
However, Super Star Group is now considered leading domestic company in both lighting and electrical accessories categories, holding nearly 30-percent market share in the branded segment.
Asked, Mr Rashid said the local electrical accessories and lighting, now valued at nearly Tk 200 billion, including cables, is expected to grow to around Tk 400 billion in the coming five years if the economy of the country maintains sound growth.
He says local factories are now well-prepared to capture most of the market shares through modern technologies, innovative business models and diversified product ranges developed through customer behavioural studies and market analysis.
"The industry has now reached a stage where local companies are no longer merely competing on price. We are competing on quality, technology, design, sustainability and customer experience," the prominent entrepreneur says on an upbeat note about the industry of mostly must-haves in both urban and rural households and installations.
Mr Rashid mentions that since its inception in 1994 by his elder brother late Mohammed Ibrahim, SSG has maintained a strong focus on electrical accessories and lighting instead of diversifying businesses.
"Local manufacturing, value addition, development of local brands alongside imported brands, employment generation, automation and skilled manpower development were always our priorities," he says. "In the beginning, we followed a focused strategy instead of becoming a multi-focused conglomerate."
According to him, maintaining concentration on a specific sector helped the company gain expertise, improve efficiency and build consumer confidence over time.
"We started with traditional lighting products such as incandescent bulb and gradually expanded into LED lighting and later to renewable-energy products, cables, lift and other modern electrical solutions."
He notes that the company's strategy has always been to anticipate future demand and prepare products accordingly.
Asked, he said : "Technology is changing rapidly worldwide. Consumer behaviour is also changing. If companies fail to adapt, they cannot survive in the market for long."
Advanced technology adoption and sustainability have now become key pillars of the company's growth strategy.
"Automation in production and digitisation in distribution remain our major focus areas. We are continuously investing in modern machinery and intelligent systems to increase efficiency and maintain quality standards," he goes on elaborating on the trade secrets.
He also stresses the importance of research and development (R&D) in sustaining industrial growth.
"In the past, both government and private sectors lacked sufficient focus on quality research, innovation and product development. We realised that without proper testing facilities and research capacity, it would be difficult to compete globally."
According to him, SSG established the country's first accredited LED laboratory to properly test and evaluate product quality for advances.
"We have to keep pace with the world through the adoption of modern technologies. Without innovation, no manufacturing industry can sustain long-term growth."
He recalls that late Ibrahim founded the company on their family land in Narayanganj at a time when Bangladesh's local manufacturing sector was still in its early stage.
"In the beginning, the aim was to produce import-substitute products with some value addition. At the time, there was little knowledge about market research, feasibility studies, bank financing, marketing strategies, financial management and other essential aspects of starting and operating a business," he says.
"My elder brother and his team gradually acquired those skills through practical experience and continuous learning. I was involved with the company from my student life and witnessed many of those struggles firsthand."
He also recalls that local entrepreneurs during the early years often had to work without proper institutional support or industrial guidance. "There were many challenges in sourcing technology, managing finance and building consumer trust in local products. But gradually local companies proved that Bangladeshi products could compete with imported brands." Asked about future opportunities, Mr Rashid said Bangladesh's electrical and electronics sector has huge export potential if manufacturers can maintain international standards and ensure policy support.
"The sector has the capability to emerge as an alternative to the ready-made garment industry in terms of export and employment generation. Bangladesh has a large domestic market, skilled manpower and growing industrial experience. These strengths can help us expand internationally."
He, however, says long-term policy consistency, easier access to finance, improved logistics and technological upgrading would be necessary for achieving global competitiveness.
Responding to another question on changing consumer behaviour, Mr Rashid says the company has been working extensively on behavioural economics to understand consumer- demand patterns.
"Earlier, our customers were mainly from the boomer generation, but now millennials are taking major family purchasing decisions," he says.
"We are modifying and developing products based on diverse income groups, age groups and gender preferences. Our young team is also studying the choices, lifestyle preferences and consumption patterns of Gen Z consumers."
According to him, younger consumers are now more conscious about design, energy efficiency, smart technology and sustainability than previous generations.
"Today's consumers not only want functional products, they also want aesthetic value, safety and energy savings." Asked about the impact of rising electricity demand and urbanisation, he says the sector would continue to experience strong growth over the next decade.
Bangladesh is still going through a major urban transformation. New cities, apartments, commercial spaces and industries are being developed continuously. This naturally creates strong demand for electrical and lighting products, he explains.
Talking about its social visibility apart from the business, Mr Rashid says the company has established the Abdur Rahim Memorial Trust to conduct various social-welfare activities.
"Apart from providing lunch to around 500 poor people every day and installing tube-wells in all 64 districts, we have introduced a special programme called 'Nirvar Agami' for our employees," he says.
Under the programme, the family of an employee can continue receiving salary support for three years if the employee dies, becomes seriously ill or suffers paralysis.
"It is probably the first initiative of its kind in Bangladesh's corporate sector," he adds.
"In terms of revenue, we may be smaller than many conglomerates, but considering the social-support facilities provided through our trust, we are definitely ahead of many others."
Mr Rashid mentions that around 23 employee families have already received support under the programme in recent years, helping them cope with severe financial hardship after losing the family's earning member.
We also bear a major portion of the medical expenses if any of our employees is diagnosed with cancer.
"We expect other companies to follow similar initiatives. Such support systems increase employees' confidence, loyalty and productivity," he says.
He has emphasised the importance of creating a humane industrial culture.
We are planning to built a cancer hospital named Mohammed Ibrahim Cancer Hospital in future.
"A company should not only focus on profits. The well-being of workers and employees is equally important for sustainable growth," he notes.
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