Headline |
Excellent Ceramic wants to reach apex with variety and quality products in ceramic industry
Online Desk:
|
The Excellent Ceramic Industries Limited (ECIL) is one of the largest sanitary and tiles manufacturing company in Bangladesh which was incorporated in 2010 with a vision of extension business in diversified areas with maximum growth of the ceramic products. The ECIL is an allied concern of Halim Group; a leading conglomerate Local Business pioneer since 1972 representing of world class Sanitary Ware Manufacturing Plant, Excellent Tiles Industries Limited, Excellent Properties Limited, Excellent Trading Limited, Automobiles(Vehicle) Trading, Importer & Distributor of Automobiles Spare Parts, Lubricants, Real Estate, Shahjalal Islami Bank Ltd.(Private Commercial Bank), Islami Insurance Bangladesh Ltd. and South East University. As a young entrepreneur Abdul Hakim (Sumon) took the initiative to establish the Excellent ceramic company seeing huge market potential of ceramic products in both local and international markets. In a decade, the company has been enabled to get popularity to mass people thanks to its quality and diversified products. The company owner invested a total of Tk1000 crore in four projects. Of this, three projects have already been completed, and other project would be completed soon. The company has already generated jobs for 1200 people. The company enabled to keep its growth 10-15 percent. Now three types of sanitary products such as Marco Polo, Milano and Excellent are being manufactured at the company located at Bhalukaupazila in Mymensingh district. Milano is being supplied for higher class people of the country, Marco Polo for middle class and excellent for general people of villagers at reasonable prices. The company tried to touch all classes’ people by three segment products. Production capacity and Investment “After incorporation of the company, basically we went into our production with sanitary ware in 2012. Later, we started to manufacture ties items in 2019 due to increase the demand for the tiles to consumers. Now we have enabled to get popularity among mass people and gained it as in the first line industry of the country manufacturing both quality sanitary ware ties items,” Abdul Hakim (Sumon) told the Ceramic Bangladesh in an exclusive interview in the capital. Abdul Hakim informed that sanitary production ismore than 60,000 pieces per month at his factory. And currently our ties production is 30 lakh squre feet monthly. If our second unit of the factory is completed, our tiles production will reached 60 lakh square feet each month. Industry scenery Despite huge potential of the ceramic sector, Bangladesh country is failing to exploit the potential of increasing its share in the global market for ceramic products due to ‘incoherent’ fiscal laws and practices, inconsistent gas pressure, abnormal hike in gas price and the prevailing dollar crisis. So, the businessman urged the government to rationalise the tax policy and reduce import duties on the raw materials of ceramic products. According to the latest data of Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), over 70 ceramic companies have invested a total of US$1.80 billion in the sector. Around 5 lakh people are engaged in the sector, which is contributing 0.23 % to the country’s GDP. The sector gave Tk3,500 crore in revenue to the government exchequer during the period. According to BCMEA annual report 2021-22, a total of 20 tableware companies invested Tk3,174.25 crore while 33 tiles companies Tk10,151.86 crore and 18 sanitary ware companies invested Tk2,030.39 crore in FY22. Meanwhile, the size of the global ceramic market was valued at $239.53 billion in 2022 and it is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030, according to the Grand View Research, a business consulting firm. Current we are suffering dollar crisis. We cannot match our business operational costs due to higher rate of dollar against taka.Besides, we don’t get support from banks for new investment. Now Banks are not in favor of businessmen. So we cannot work for the industry’s development, and to contribute to the country’s economy properly, Abdul Hakim also said. He also explained that there is the biggest challenge of gas. Gas is very significant element for the ceramic industry. But we don’t get gas properly. We get gas at 12 hours only in a single day. As a result, our costs go up and decline product quality. Earlier, the government ensured us to supply gas uninterruptedly during a meeting with businessmen on gas price hike. Now we have to pay high prices of gas but we do not gas sadly. Around 50 percent production cost has increased in last one year.We have nothing of raw materials to manufacture ceramic product but only we have gas. Now we don’t get it too. So now we have to face a difficult time not to get the support. We have to pay a total of 32 value added taxes (VAT) and Subsidiary Duty (SD). Of this, VAT 15 percent and SD 17 percent.We strongly request the government to withdraw SD of 17 percent. We cannot match cost paying 17 percent VAT because of our other manufacturing costs have gone up.So our sale is declining and people are leaning toward to imported product which is a negative sign for the local industry. The government’s policy support, enough gas supply, and dollar crisis resolving would help to boost the ceramic industry. If the government reduces the pressure of taxes on the ceramic sector, the sector would grow further. Now I have set a plan to invest in plastic packaging industry. We try to introduce it by 2024.Basically, ceramic sector is our key potential industry as housing is most import part of people’s basic rights. There are around 18 crore people in Bangladesh. They need housing always. So, hosing should be given priority to attain the visions of upper middle income country’s status by 2031 and the vision of development country status by2041. |