Float glass industry growing at 25 per cent annually

Ismail Hossain | Published: September 05, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The country's float glass manufacturing industry is growing at 20-25 per cent annually having a duopoly market structure, industry insiders said.
The more-than-Tk 150 billion float glass market is shared by Nasir Glass and PHP Float Glass to the extent of 65 per cent and 15 per cent respectively leaving the rest of the demand to two other local sheet glass makers and importers to be met.
The country's oldest glass manufacturer, state-owned Usmania Glass Factory and MEB Sheet Glass Industries are producing sheet glass having very minimum market shares.
The two big market leaders-- Nasir and PHP--are now planning to expand its markets further as the local demand is rising every day.
Â Nasir Group is setting up its second manufacturing unit investing nearly Tk 120 billion while PHP Float Glass has also planned to double its production capacity from 2,500 to 5,000 tonnes monthly investing more than Tk 150 billion.
"We are planning to go to the market by the end of next year or in the beginning of 2017 with A Grade glasses which are now being imported," Prashun Talukder, Head of Marketing of PHP Float Glass.
He said no A-Grade glass is now being produced in the country. They are being imported from France, the US and Japan.
"Our A-Grade glass will be produced targeting posh class of consumers only," he said.
But Nasir has set a goal to meet the needs of newly increasing urbanisation across the country.
Shafiqul Alam, Head of Marketing of Nasir Glass said rising demand from outside Dhaka and rural areas has led us to set up a second glass factory.
Before Nasir Group and PHP entered the market in 2005 and 2006 respectively, the product was imported on a small scale.
The demand for float glass, mainly used in buildings, now stands at around 15,000 tonnes per month, which was just 200 tonnes ten years ago.
In the next five years, the monthly demand is expected to rise to 30,000 tonne due to growing rural consumers, especially in thana and upazila level.
Between 2005 and 2013, the demand was driven by urban consumers, but of late, it is being fuelled by rural consumers, who now prefer low-cost float glass to costly wood in their houses.
For instance, 60 per cent of Nasir Group's float glass is now used outside Dhaka in rural Bangladesh. It was around 10-15 per cent five years ago.
Nasir Group's new factory, which will be located at Mirzapur, Tangail, will produce 800 tonnes per day once it starts commercial production in about three years' time.
Its existing factory in Gazipur also saw its production capacity doubling recently to 500 tonnes per day.
Both the marketing heads said they are producing world-class floating glass, but importers are ruining the market by importing glasses from China, Indonesia and Vietnam through under-invoicing.
However, Bangladesh Glass Merchant Association President Alamgir Hossain said being only two market players, PHP and Nasir are enjoying duopoly and they increase prices whimsically.
He alleged the government raised total duty from 80 per cent to 134 per cent on import of glasses being influenced by the two market players.
Prashun Talukder said, "Sometimes we are to incur losses as the importers import excessive quantity of glasses which are already being manufactured in the country."
He also denied the allegation of traders practicing duopolistic approach.
"Increasing duty on imports and protecting local industry are the government policy and the government is doing that. We have no influence on that," said Shafiqul Alam.
Silica and gas, the primary needs of float glass makers, are available in the country while the secondary raw materials such as dolomite, feldspar and limestone are imported from neighbouring Bhutan, Nepal and India.
Float glass is the latest product which is being manufactured in the country. It is non-combustible and easy to clean. This type of glass prevents harmful ultraviolet-ray penetration and reduces the solar heat entering the building. It is cheaper than wooden panel.
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