The origin of pottery in Bangladesh dates back to the later or post Mohenjo-daro and Harappa civilization and to the Indo-Aryan Vedic age, according to the research on ceramic earthenware and artifacts found after excavation of the ruins in Mahasthangarh of Bogura and Wari-Bateshwar in Narsingdi. Discoveries in Wari-Bateshwar included two millennium old potteries and terracotta. The potters then used traditional methods to make water vessels and sculptures for worshipping and as household utensils and showpieces.
In the medieval age, the potters were popularised by the Hindu and Buddhist rulers and zamindars when they used to make statues of gods and goddesses, Buddha, plates, other aesthetical items and terracotta plaques in the temples and monasteries. The potters made everyday household items for sale in the local markets to earn a living.
In the past century, the white clay deposits were first found in Mymensingh, Sylhet and Netrokona, the largest of which was discovered at Bijoypur of Mymensingh in 1957. Since the discovery of the white clay reserves in Bangladesh, the ceramic industry has come a long way.
‘Ceramic’ comes from the Greek word meaning ‘Pottery’. The journey of ceramics started through pottery and was initially only a mixture of inorganic, non-metallic clay which could be heated at very high temperature to make it hold its shape. Since then, mankind has found multifarious uses for this clay and the quality of the clay has been improved. Ceramic in this era has much hardness and strength, is heat resistant, is a good insulator, unreactive to other chemicals and long-lasting and hard-wearing. Among its many uses, the ceramics industry started in Bangladesh with just the manufacture of tableware and now covers four broad subsectors: Tableware, Tiles, Sanitary ware and Ceramic Bricks. A brief review of the journey of ceramics in Bangladesh is portrayed below.
In 1959 the industry took its nascent steps with only one small tableware manufacturing plant in Bogura, Tajma Ceramic Industries Ltd. Tajma Ceramics is the first ceramic earthenware plant to produce porcelain tableware using traditional methods.
In 1962, Mirpur Ceramic Works Ltd in Dhaka started to produce heavy clay products using German plant and technology and developed a reputation of manufacturing best quality ceramic bricks in the subcontinent.
In 1966, Peoples Ceramic Industries Ltd, formerly known as Pakistan Ceramic Industries, located in Tongi, Gazipur, started production using modern porcelain tableware manufacturing technology procured from Japan. They started exporting their products.
In 1974, the country’s first non-heavy clay building ceramic plant came on the stream, Dacca Ceramic & Sanitary-wares Ltd. The company was the first to start production of sanitary ware at Tngi, Gazipur.
In 1985, Monno Ceramic Industries Ltd transformed and revolutionised the exports of local ceramic products by branding Bangladesh ceramic products on an international level, using West European and Japanese plants and machinery. Monno Ceramic is the first industry to use ultra-modern technologies to produce porcelain tableware aimed at exporting worldwide. Later it added its bone china tableware unit also aimed at improving the exports of ceramic tableware from Bangladesh.
In 1986, Bangladesh Insulator & Sanitary ware Factory Ltd. (BISF) started manufacture of ceramic tiles at Mirpur, Dhaka, with Czech machinery and technology. In the same year, Bengal Fine Ceramics Ltd, the first stoneware tableware manufacturer in Bangladesh, located in Dhaka, entered the domestic and international markets.
In 1992, with the exponentially growing ceramic industry, a nationally recognised trade organisation of manufacturers and exporters of ceramic tableware, pottery, tiles, sanitary ware, insulator and other ceramic products was formed, called Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA).
In 1993, Madhumati Tiles Ltd. became the country’s first tile manufacturer to use modern German and Italian technologies to produce the latest standard ceramic tiles that domestic consumers see and use at present.
In 1999, Shinepukur Ceramics Ltd. started production of porcelain and bone china tableware with Japanese, German and French machinery and technology. It earned a reputation for being one of the major exporters in Asia.
Ceramic Industry Scenario (FY 2021-22)
An industrial revolution has resulted in a burgeoning Ceramic Industry since the start of its journey with just one small tableware manufacturing plant. Today, there are more than 70 ceramic manufacturers in operation in the country with core products being tiles, tableware, sanitary ware and bricks. As the country experiences steady economic growth and urbanisation, the local demand for ceramic products too continues to grow. These ceramic bricks, tiles and sanitary ware have been used in several mega projects by the government to ensure overall infrastructural development. The growth trend is an indication of the industry’s potential to be one of the top foreign exchange earners. And the tableware made in Bangladesh, both Bone China and Porcelain, is famous around the world for its eminent quality and design.
Here is a snapshot of Bangladesh’s ceramic industry:
Quality Raw Materials:
The exponential growth in the ceramic sector is owing to the high-quality ceramic products manufactured in Bangladesh. The ceramic sector has the availability of uninterrupted Sulphur-free natural gas and the latest cutting-edge technologies imported from Germany, which make our products shinier and more durable. The glaze and pigments are lead and cadmium-free and 100 per cent halal ingredients are used in the production process.
The other factor in favour of the industry flourishing is the relatively low labour cost yet availability of skilled manpower. The direct manpower involvement in the industry is about 52,000 whilst the indirect involvement is over half a million. The industry is considerably compassionate towards the women and people with disability. The industry works to train women and physically challenged workers for inclusivity. Around 20 per cent of the workforce is highly-skilled women. Today owing to these favourable conditions, the industry is distinguished around the world.
Investment:
The total investment, both local and international, in the industry is about US$ 1.70 billion. The investment share of tiles is 62 per cent, tableware 23 per cent and sanitary ware 15 per cent. The sector has lured foreign investment mainly from China and the Middle East. These joint venture partners include RAK Ceramics, Fu Wang and China-Bangla; the largest being RAK of the UAE.
Annual Production Capacity
The current annual production capacity of the local companies of the 3 sub-sectors stands at:
Tableware : 308 Million pieces
Tiles : 210 Million square meters
Sanitary ware : 19 Million pieces
Domestic Market Consumption
The ceramic sector in Bangladesh caters to 80 per cent of the total local demand for ceramic products. The domestic market consumption of ceramic products is 74.38 per cent with 25.62 per cent being imported. To keep up with these skyrocketing figures, the local companies have been amplifying their plants and operations. The domestic consumption of tiles is $650 million, tableware $75 million and sanitary ware $180 million yearly.
Advanced Ceramics
A much wider array of applications of ceramics has emerged in recent times, namely, ‘Advanced Ceramics’ The value-added features of these ceramics allow them to be utilised for issues like energy conservation, water purification, electronic and biomedical applications. The global market for these products is experiencing a high growth momentum. Bangladesh is exploring beyond traditional usage of ceramics and tapping into this prospective segment. Companies and universities are coming together, getting deep into research and development to explore the potential of advanced ceramics.
Exports
The ceramic sector has made a significant contribution to GDP (gross domestic product) 0.21 per cent in the year 2020-21. The year saw ceramics exports worth over $50 million. Of this total exported volume, tableware accounts for the lion’s share, at 98 per cent. And both sanitary ware and tiles account for 1.0 per cent each. About 17 per cent of the total export value is exported to Germany in the form of tableware.
Even though this export level is attributed to the high-quality products manufactured here in Bangladesh, it is also owing to the flexibility in Minimum Order Quantity, capability to export in bulks and the GSP facilities that Bangladesh enjoys.
Exports to over 50 countries, such as the USA, /Canada, the UK, Germany, France, Italy, Sweden, Switzerland, Norway, Greece, Ireland, the Netherlands, Spain, Austria, Belgium, Denmark, Finland, Poland, Australia, New Zealand, Japan, Russian Federation, the UAE, Saudi Arabia, Kuwait, Egypt, Libya, Turkey, Jordan, Iran, Qatar, Oman, Syria, Lebanon, Pakistan, Sri Lanka, Nepal, India, the Maldives, Taiwan, Malaysia, Singapore, Brunei, Myanmar, Thailand, Indonesia, Argentina, Chili, Peru, Colombia and Brazil.
High Profile Users
Bangladesh Ceramics has touched the lives of many high-profile users. It has carved its place in the Buckingham Palace of Great Britain, the British Parliament, the Presidential palaces of India and Pakistan, the Royal Palace of Bhutan, Emirates Airlines and many more.
Global buyers from different parts of the world are:
USA: Crate & Barrel, Libbey, Pottery Barn, Williams-Sonoma, Michael Aram, 10 Strawberry Street
UK: Royal Doulton, Wedgwood, Portmeirion Group, Rosenthal, Goodfellows, Churchill, waitrose, Sophie Conran, Jersey Pottery, John Lewis
EUROPE: ZARA Home, Monoprix, Villeroy&Boch, XXXLUTZ, Ionia, Rosendahl, LPP, Habitat, Taitu, H&M, Kasanova, Migros, SchonhuberFranchi
Asia: Noritake, Good Earth, DLF, ICA, Pure, Westside, INV Home
The future of the ceramic sector in Bangladesh looks very promising. Special investment is being made to enhance the skillset of the workers involved in the ceramic sector. The use of modern technology also keeps on growing and so does the procurement of quality raw materials. Advanced ceramics are also being manufactured on a mass scale which has a lot of potential not only in the markets but also in the lives of people. In the next five years, about 20 new companies are in the pipeline to be introduced to this rapidly growing sector. Export is predicted to rise to around $100 million and investment will grow another $1.0 billion. We wish to achieve this ambitious goal with certainty and serve people all around the world with quality ceramics products made in Bangladesh.
Bangladesh a huge investment potential in ceramic sector
Written by Rafikul Islam
With the growing demand for different type of ceramic products in local and international markets, investors are leaning towards big investment in the industry that has a huge potential. Since 1995, six foreign companies have jointly invested worth Tk 1950.07 crore in Bangladesh’s ceramic sector. Production of the ceramic items grew 200 per cent in the past 10 years. However, there is a total investment of around $ 1.70 billion in the country.
Industry insiders said nowadays the demand for ceramic tableware, pottery, tiles, sanitary ware, insulators and others products got popular, thanks to changing taste and lifestyle of people. Once people wanted to construct only a simple building but now they try to add materials like tiles. These products are now used in residential and commercial buildings, mosques, educational institutions and hospitals.
Foreign investment rising gradually
Foreign companies are keen to invest in the sector. So, the industry is awaiting huge investment, thanks to the government’s policy support, and availability of low cost labour.
Fu-wang Ceramic industry Ltd, RAK Ceramics (BD) Ltd, BHL Ceramic Co. Ltd, Star Porcelain Ltd, South East Union Ceramic Ind. Ltd, and Sun Power Ceramics Co. Ltd have already invested in joint venture projects in Bangladesh.
Most of companies came from China and the UAE that invested in Gazipur, Habiganj and Khulna. Ceramic tableware, tiles and sanitary ware are being produced by these companies, according to Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).
Talking to this scribe, RAK Ceramics Company Secretary Muhammad Shahidul Islam said the ceramic products are being used in residential and commercial buildings, mosques, educational institutions and hospitals. Now the items turned as essential products. “Most of our buyers are middle and upper middle class people. We produce over 1,000 types of products including high valued ones. There is no difference between our manufactured products and imported ones considering quality but we sell our products at 20-30 percent less,” he said.
Why is the ceramic sector perfect for investment?
Bangladesh is one of the fastest growing economies in the world that has a big domestic market of around 163.8 million people. Cheap labour, skilled manpower, government policy support, political stability and perfect geographical position for producing and supplying all ceramics products made it an attractive sector for investment.
BCMEA findings say that the ceramic sector offers a good number of facilities including lead and cadmium-free glaze as well as pigments; Sulfur-free natural gas supply; and flexibility in minimum order quantity. Capable of exporting bulk quantity, Bangladesh also enjoys GSP (Generalised System of Preference) facilities for exporting ceramic products.
Now Bangladesh is exporting the ceramic products to more than 50 countries including the USA, Canada, the UK, Germany, France, Italy, Sweden, Switzerland, Norway, Greece, Ireland, the Netherlands, Spain, Austria, Australia, New Zealand, Japan, Russian, the UAE, Saudi Arabia, Kuwait, Egypt, Turkey, India, Pakistan, Singapore, and Brazil.
BCMEA President Md. Shirajul Islam Mollah said the ceramic is an emerging sector. Bangladesh is an investment-friendly country for foreign investors so, he added, the ceramic sector has a bright prospect.
Domestic ceramic market booming
The country’s first ceramic factory named Tajma Ceramic Industries was established in Bogura in 1958 for manufacturing porcelain tableware. Primarily, the small company started with 3-4 types of cups but now the factory produces around 70 types of tableware.
Later, Pakistan Ceramic Industries (now Peoples Ceramic Industries) started production in 1962. Monno Ceramics was established in 1985, Bengal Fine Ceramics in 1986 and Shinepukur Ceramics in 1997. Foreign investment came to this sector in Bangladesh through Fu-Wang Ceramic Industry Limited in 1995. RAK Ceramics was incorporated in 1998 and its commercial production started in 2000.
BCMEA data showed that the demand for ceramic products increased at least 22 per cent in the last five years. However, a total of 71 companies invested Tk 15,356.50 crore in 2021-22 fiscal year. Of them, 20 tableware companies invested Tk 3,174.25 while 33 tiles companies invested Tk 10,151.86 crore and 18 sanitary ware companies invested Tk 2,030.39 crore.
The country earned Tk 385.21 crore through export during the period. It gave revenue to the exchequer amounting to Tk 3500 crore. Value addition was 65 per cent. More than 500,000 people are directly and indirectly involved in the sector. Its production growth increased 200 per cent in last 10 years.
According to a report of the business research company, the global ceramics market went up $114.11 billion in 2022 which was $107.72 billion the previous year. The company also projected that the global ceramics market size would reach $145.93 billion in 2026 at a compound annual growth rate of 6.34 per cent.
Industrial Challenges
There are some temporarily problems including gas supply in the country. Policymakers said these will be resolved soon. The BCMEA president said there is a gas crisis in the industry that was triggered by the Russia-Ukraine war. Bangladesh can attract more foreign investment in the ceramic sector ensuring an uninterrupted supply of gas and electricity. “Besides, we need a 20 per cent cash incentive, instead of the present 10 per cent, on the export of all types of ceramic products to boost the sector further,” he pointed out.
Ceramic Expo Banglades 2022
BCMEA is going to organize a three-day-long biggest international exhibition at International Convention City Bashundhara (ICCB) in Dhaka on November 24-26 to bring local and international manufacturers, exporters and suppliers of ceramics into a single platform.
The RAK Ceramics Company’s secretary said, “The exhibition is a better place to promote a company’s products. So, we will take part in the ceramic expo to market our products.”
BCMEA President Mr. Md. Shirajul Islam Mollah stated that the exhibition is expected to be attended by representatives of more than 300 global brands, manufacturers and suppliers of ceramic raw materials and machineries from 20 countries. “The expo will create ample scope for foreign ceramic manufacturers, buyers and investors to explore and invest in the emerging ceramic industry of Bangladesh,” he added.
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