A member of BEXIMCO, the largest private sector conglomerate in Bangladesh, Shinepukur Ceramics Ltd. (SCL) set up its Tableware Plant on the outskirts of Dhaka in 1999. SCL is a 100% export oriented unit, equipped with the latest high-tech machinery and kilns manufactured by TAKASAGO MINO, and SKK Japan. It comprises two independent units producing high quality porcelain and bone china tableware.

Equipment and Production Capacity

The total capacity of the units was 24000 pieces porcelain and bone china per day in 1999. At present it is 70000 pieces per day. "The bone china unit has in fact been set up on the basis of the latest technology from NIKKO Japan, coupled with extensive training facilities for our production team, both locally and internationally," says Md. Luthfor Rahman, Deputy General Manager, Finance & Accounts, Shinepukur Ceramics Ltd.

"In addition, SCL is equipped with the top-of-the-testing and Quality Control Laboratory facilities, Decal Plant, Carton-Packaging Plant, Modeling Unit, and has at its disposal its captive gas-based power generation capability, and the best effluent discharge mechanisms in place. The company is also an ISO 9001/2000 certified Company."

Demand and Supply

Shinepukur Ceramics is finding it difficult to meet the growing demand for its products both locally and globally. "We can not meet the demand because of production capacity. We have export booking up to June this year and we can not take any more order from our buyers within this time."

Shinepukur is planning to expand, doubling the present production capacity. "We are going to set up another factory; the work will start from August 2008 and is expected to be finished by the end of 2009."

Luthfor further informs ET that at present the company can meet up to 50-52% demand from foreign buyers and 10-15% of the local demand.

"The demand for ceramic tableware of Bangladesh is about Tk.500 crore but Bangladesh is able to supply products worth Tk.300 crore. So there are opportunities for those who want to invest in the ceramic industries. Although some new companies could not go for huge production but they are likely to do better in future."

Challenges

Ceramic industries in Bangladesh have to depend on foreign sources for raw materials, which Lutfor says creates a major problem. "About 80-85% raw materials are exported form China, Japan, India, Germany and UK. Locally we get some raw materials from Mymensingh but the quality is not that good. So the possibility is that we have to depend on importing raw materials in future also."

Competing with China is another problem. "China has a huge quantity of raw materials. We are not getting any subsidy facilities, whereas Chinese govt. is providing subsidy to their ceramic industry. As per value added Tax Act, we are entitled to get refund of any duty, vat, etc. paid on inputs of manufactured goods which have been exported from our country -- which we call duty drawback. But in some cases we face problem in getting our due."

Although the present situation is not encouraging enough to attract foreign investment, the Shinepukur DGM thinks local investors are quite interested to invest in this sector.

"Govt. may attract local investors by creating an export zone for ceramic industries as it did for garment industries."

Strength

Shinepukur has a dedicated, hardworking workforce and its R&D department maintains quality control consistently, says Lutfor. "The most important thing is that we never compromise with the quality of our products. Regularly we are changing our product designs to meet the customer's demands. In January 2008 we introduced 5 new designs of porcelain and 3 new designs of bon china."

"We don't consider any company as

our competitor in terms of exporting as we export 90% of the total ceramic tableware products. In the local market Shinepukur is contributing 20% of the total ceramic tableware product sales."

Achievements

Shinepukur earned Tk.17 crore in the initial years of its journey but after 2007 the amount of its sales proceeds increased to Tk. 114 crore. "This is the big achievement for us. Also we got National Export Trophy (Gold), at first in the year 2000-2001 and then in 2002-2003. We hope to receive more trophies in the coming years.

Export by Shinepukur