14th ISSUE

A Bridge From Transport Connectivity to Economic Corridor

The opening of the Padma Bridge has created the scope for a new wave of investment in the country’s south and south-western region. The region’s easier road communications with the rest of the country has brought fresh momentum for business growth. New industries are being planned and tourism sector entrepreneurs are hoping for a business boom surrounding Kuakata sea beach and the Sundarbans. Thus, the bridge has offered a new economic corridor in the making. Economists and business leaders believe with remarkable improvement in road network though the bridge trade and business in the region would expand rapidly, raising the people’s income, creating jobs and eradicating poverty. The Padma Bridge is also expected to bring about a massive change in the entire economy. The Ministry of Road Transport and Bridges believes the economic corridor surrounding the Padma Bridge and its adjacent areas would increase the country’s GDP (gross domestic product) growth by 1.27 percentage point. The southern region’s economy will grow at a higher pace. Predicting a higher GDP growth for the Padma Bridge, the Asian Development Bank (ADB) said the rate of poverty reduction will be accelerated by 0.84 per cent every year. However, as many as 53 upazilas out of 133 upazilas in 21 districts on the south-western side of the bridge are of high concentration of poverty, according to Bangladesh Bureau of Statistics (BBS) poverty map. Another 42 upazilas are in the medium poverty risk category and 38 in low poverty risk category. Economist and chairman of Palli Karma-Sahayak Foundation (PKSF) Quazi Kholiquzzaman Ahmad said small entrepreneurs are more enthusiastic about the Padma Bridge and they should be provided with opportunity to make investment and various supports such as gas and electricity supply should be ensured at affordable costs. He observed that the bridge has jointed the southern belt with the rest of the country. The bridge will result in smooth transportation of farm produces from the region, according to Implementation, Monitoring and Evaluation Division (IMED) of the Ministry of Planning. It said farmers’ income will increase 15-20 per cent since direct connections between farmers and the market forces will be established. Transport sector insiders added the time for transportation of goods from Benapole to Dhaka would come down to 6-7 hours from 24-36 hours. The southern region was attractive for low-cost transport of goods by river routes but longer time and uncertainity in ferry services earlier discouraged the entrepreneurs from taking business initiatives. The Padma Bridge has now created the scope for big companies to come forward with investment projects in the region. The companies that have shown interest in setting up factories in the region include Sheltech, Pran-RFL, TK Group, Envoy Group, Hameem Group, Mir Group, Karim Group and Opsonin Pharma. Bangladesh Economic Zones Authority (BEZA) has unveiled a master plan on Padma Bridge that would directly benefit Dhaka, Khulna and Barisal divisions. It is taking steps to establish 17 new Economic Zones (EZ) in 21 districts of the three divisions. In the 1960s, Khulna became one of the few industrial hubs of the country but it has subsequently lost the glory. However, after the launch of Padma Bridge, Khulna is drawing attention of the investors. Abdus Salam Murshedi MP, president of Bangladesh Exporters’ Association (BEA) and former president of BGMEA said, “I definitely want to use this opportunity. I want to set up a new garment factory in Khulna. I also encourage others to invest in the region.” In fact in 2019, Sheltech Group established the country’s largest ceramics industry in the southern district of Bhola. The company invested more than Tk 7 billion taking advantage of local natural gas and cheap land with the hope of opening of the Padma Bridge in 2022. Now, Sheltech is also planning to set up a non-denim garment factory in Bhola, said Engineer Kutubuddin Ahmed, chairman of the group. “We are now looking for land to set up a ready-made garment industry in Barisal. After the inauguration of the Padma Bridge, investing in the south is the most promising one,” he added. Chini Tikri The Inaugural Murals By 15,000 Ceramic Plates One of the two spectacular installations at each end of the Padma Bridge is its inaugural mural – which has been constructed by using 15,000 ceramic plates. The portraits of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and Prime Minister Sheikh Hasina have been made by breaking these 37 coloured plates into ‘Chini Tikri’. One was the dreamer of Padma Bridge and the another one is its implementer. As the ceramic plate is broken and made, it starts to sparkle when the sun shines on it. These ceramic plates are hammered and broken into about half a million pieces. Then different colours of the pieces are arranged one after one to create two beautiful portraits. Designed by architect Fazle Karim Shishir of Drishik, the two murals were created by artists Ashraful Alam Riaz and Didar Ul Alam. Both are graduated from the Fine Arts Institute of Dhaka University. The 90-feet-long and 45-feet-high mural at the Mawa end was done by Didar Ul Alam and the 72-feet-long and 36-feet-high mural at the Janzeera end was done by Ashraful Alam Riaz. They told Ceramic Bangladesh that at first the designer thought of making this mural with ceramic tiles, but later they chose ceramic plates of the highest quality considering the bright colour and durability. A total of 15,000 plates of 37 types of colours have been used here. Among them, 7 types of coloured plates are used to display black and white portrait of Bangabandhu. And 30 types of coloured plates are used to produce colourful portrait of Prime Minister Sheikh Hasina. All of these ceramic plates are customised. Because such a variety of colour plates are not usually produced by ceramic companies. Artisan Ceramics made 8,000 plates used in the Mawa end mural and Monno Ceramics made 7,000 plates used in the Janzeera end mural. This construction work was completed in two months by two

ECO-FRIENDLY Roofing Tiles TAKE THE LEAD Industry challenges need to be addressed, say entrepreneurs

Time is NOW for eco-friendly clay-made roofing tiles and now is TIME for tile makers. They are the Bangladeshi makers of clay tiles who have gone global as their tiles have opened up the door of a huge export possibility, especially to Europe. The making of clay tiles is simple but it needs amazing artistry as well as artisanal skills. Fluffy mud is made by mixing soil and water. It then dries in the sun and is burned only to turn into clay gold. The artistic tiles with Bengal clay have revolutionised the style. However, clay artisans were once about to lose their hopes and dreams with their centuries of tradition. They then have turned the corner and things are looking up with the coming of the modern machine-driven industry. The clay artisans have turned around to weave a new web of hopes and dreams. Famed for its ‘Tiles Empire’ over the years, Satkhira has eco-friendly roofing tiles to its credit. Kolaroa Bazar in Kolaroa upazila, some 18 kilometres of district headquarters, is one of the prosperous trading points in Satkhira. Murarikathi village is located just 1.0 km away from the upazila headquarters along the border of the district. The artisans of Murarikati-Sripatipur have built an empire of various sorts of roofing tiles. The village, also called Kumarpara, has now got the moniker ‘Italy Town’ plausibly for exporting a massive volume of tiles to the European country. Tile factories used to produce 700-800 containers a year just a few years back. Some 300-400 container tiles were exported to Italy through Mongla seaport. The price of the product per container is average US$ 15000 Eco-friendly tiles Eco-friendly tiles There is a huge local market for roofing tiles if these hand-made tiles are given a more modern touch and the initiative is taken to use them as an artisanal tile in buildings and structures. During the British raj, cottages, offices or residences of the gentlemen used to have tiles at the peak that are still visible in the ancient architecture of Britain. Although a large number of potters have left Bangladesh, some in Kolaroa have kept the traditional tile industry alive in the frontier district. Until the mid-1960s, there were hardly any houses in the country that did not have a tile-made house or two. As it came cheap, roofing tiles became popular after rice and wheat straw-built structures. The structures were felt cool and comfortable during the summer. How Palparaenters European market The traditional tiles industry almost sank into atrophy when the potters associated with tile production left the country in the mid-60s. Satish Chandra Pal, a native of Palpara in Kolaroa, started crafting house canopy tiles in about 1952. From there, potters spread across the country. As Mr Satish Chandra died after independence, the pottery business simply collapsed. Due to their deep-rooted poverty, many artisans left their ancestral profession. With the passage of time, the potters have changed. They are now making tiles using clay. In 2003, local potters created a revolution by pouring clay into a wooden frame and drying it in the sun, making Bengali tiles in line with Italian design. Since then, Bengali tiles are being exported to Italy How are the legacy-bearers? Among those artisans is Gostho Chandra Paul, the president of Kolaroa Upazila Tali Malik Samity [Tiles Owners Association] and also proprietor of Kolaroa Clay Tiles. But he now struggles to survive as his long-cherished art is on the verge of extinction for a number of reasons. The 60-year-old Paul, who has a three-member family, is producing 1,000 units of tiles at his factory per diem. Each unit is currently being sold at Tk 8.0. He earns Tk 1.6-1.7 million per annum. Getting disgruntled and disappointed over the waning business situation, most owners and workers associated with this industry have already lost their jobs. Mr Paul observed that modernity has affected almost all sectors of the country. However, the tiles industry is yet to get the touch of modernity. Production costs have increased manifold, but the price of tiles has not increased. Mr Paul’s forefathers launched crafting eco-friendly roofing tiles in 1947. However, it all started for Mr Paul in 1986 when he set himself up in business with Tk 3,000 only. Ten workers were employed at his factory when he started crafting eco-friendly roofing tiles traditionally. His uncle told him to be self-reliant and build his own future through the long traditional business, which he acquired lineally. But at least 40 tile factories got shut down in the past six years due to their persistent business losses. Now, the number of factories there is about 12. Almost 6,000 workers become unemployed and only 600 are absorbed elsewhere. For generations, the Pal community in the locality has been contributing a lot to this thriving sector. Mr Paul is also committed to continuing their forefathers’ business at any. In 2003, this clay tile was first exported to Italy. Businessman Ruhul Amin exported the eco-friendly tiles there. Arno Export Import, Shuvo Trade Limited, FH Khan Limited, Maa Cottos Inc., Nikita International, Koto Innovator, JK International, Polo Epo Organic Tiles and D Chandra Paul have followed Mr Amin’s footsteps. They are exporting tiles to Italy, Dubai, France, the UK, Australia, Germany and the Netherlands. Mr Chandra Paul, proprietor of Kolaroa Clay Tiles, said Mr Amin continued to look for suitable soil in different parts of the country for exporting tiles to Italy. Finally, Mr Amin found his desired soil in Murarikati area. He is the pioneer in exportable tile business. As the number of roofing tile factories increased in Kolaroa until 2019, the stock remained high at the time. Every year, 300-400 containers of tiles went to Italy. Such tiles are manufactured and sold for 6-7 months in a year. Usually, tile-making season starts from October and continues until the May-June period. Tiles cannot be crafted during the rainy season. Foreigners are using the tiles for floors and walls of their houses because of its eco-friendly nature.

History

The growth of the ceramic industry can also be attributed to historic back ground of the country, especially the people’s choice for attractive tablwares and show pieces. Records say, potters were actually popularised during the zamindars (landlords). They used to be patronised for making staues of goddesses, plates and other aesthetical items. Sometimes they were made to sculpt statues of the zamindar themselves. After the end of the zamindar system, they started making everyday household items for sales in the local market to earn a living. As pottery was the tradition, a section of people called kumar (potters) had for generaions embraced the occupation of making pottery items of household use. Their hand-made products could catch interest of the rural buyers. However, these proucts could neither meet demand of urban customers nor could they sustain because of their fragility, sun or oven baked products could not make a big headway outside the country. Recent history shows it was the initiative of an entrepreneur in the late 1950s that began production of earthen-ware using machine and thus machine-made clay craft appeared in the market. In fact, modern ceramic industry (machine-made) took a formal start with the functioning of Tajma Ceramic industry in Bogra in 1958. It was a small plant for porcelain tableware, and so production capacity of the factory was limited. Then came other entrepreneurs. The next to come was Mirpur Ceramic Works in 1962. Then Pakistan Ceramic Industry (later People Ceramic Industry) joined the market in 1966. After a gap of nearly two decades Monno Ceramics started production (tableware) in 1985. In the following year Bengal Fine Ceramics came to the scene. In 1997 Shinepukur Ceramics started production. As more entrepreneurs stepped in, they startd producing diversified items such as tiles, sanitary ware adopting new technology and using latest machinery and fine clay brought from abroad. Bangladesh Insulator and Sanitaryware Factory (BISF), Modhumoti Ceramics, Fu Wang Ceramic Industries and RAK Ceramics have placed themselves at the front in production of the items, not traditional, like tea-set or dinner sets. According to available statistics, about 95 per cent of raw materials for producing items are imported from different sources to maintain standards. The raw materials are imported mostly from China, Japan, Germany, New Zealand, Australia, Italy, Spain, Bulgeria, Vietnam, Thailand, South Korea and India. LOCAL CERAMIC INDUSTRY This is an industry that has experienced 200 per cent growth in production in the past ten years. Currently, there are 66 ceramic plants in three categories (Tableware 20, Tiles 28 and Sanitary ware 18) of products, operational in the country. Their products range. from table wares to tiles, sanitary wares to insulators and heavy and from clay to reflectors. The number of firms increased from 29 in 2010 to 66 in 2019. Investment in the sector amounts to more than US$1.1 billion, according to the Bangladesh Ceramics Manufacturers and Export- ers Association’s (BCMEA’s) estimate. More than half a million people, 40 percent of who are women, are directly and indirectly involved in the ceramic industry. Given the growth and demand of the sector, there has been a national focus on building skilled human resources for the ceramic industry. Now, Bangladesh Institute of Glass and Ceramics, Depart- ment of Glass and Ceramic Engineering at BUET and Rajshahi University of Engineering and Technology, and Faculty of Fine Arts at Dhaka University, offer various courses relating to ceramic products. The base of the industry is strong as the sector caters to 85 percent of the local demand and around 90 per cent of its 2018 turnover of Tk. 60 billion involved domestic market. The sector has seen a phenomenal local market growth from Tk 1225 billion in FY2010 to Tk 53.38 billion in FY2017. The industry’s production growth was record- ed at around 30 per cent in the past ten years. The country’s ceramics industry has also attracted foreign investments that have mainly come from China and the Middle-East countries. One foriegn and six joint venture companies include RAK Ceramics, Fu-Wang and China-Bangla Ceramics. Exports of ceramic products Although the country’s export volume is still not high in comparison to potential, about 20 companies are currently exporting ceramic products with 65 per cent value addition, according to available information. An amount of Tk. 4801 million came from the export market in 2018. It has maintained average 18 per cent growth in last 10 years. The sector attained a 32 per cent export growth in the year after the previous year’s growth of 16.6 per cent. The export market of ceramic products covers 63 countries. Main export destinations are EU countries, USA, Canada, New Zealand, Australia, Turkey and the Middle East. Industry insiders say the demand for Bangladeshi ceramic products in the international market is strong and there is reasonable scope for increasing exports of ceramic items. China and India are among major competitors in the international market for Bangladeshi ceramic manufacturers. However, labour cost has put Bangladesh in a strong position. Bangladeshi exporters can enhance exports if they are provided with supports to become more competitive in the international market. Given the global market of ceramic products worth US$400 billion, Bangladesh’s ceramic industry, if proper plans are taken and executed, has the potential to emerge as the ‘next RMG industry. Bangladesh’s expport share of the global ceramics market is less than 0.10% CHALLENGES AND WAY FORWARD Industry leaders say the country’s ceramic industry is facing some challenges, that are constraining its growth at home and in the export market. Of course, there is a scope for improve the production process making it more energy efficient. For that more funds need to be injected into the sector. Use of Nano-technology could be a good choice for entrepreneurs in Bangladesh. However, uninterrupted supply of natural gas, which is the main energy source for the industry, is a prerequisite for increasing production, according to sector leaders. Bangladesh’s domestic market for ceramic products is expanding due mainly to quality of products and price competitiveness. So supports should be