Tiling Dreams

Ceramic products step into global market.

The country’s market of ceramic items was entirely dependent on imports only two decades back. Today, varieties of ceramic items made in Bangladesh are capturing markets worldwide. Crocks and tiles made of ceramics have been recognised as major industrial products and also added as key items to the export basket. Entrepreneurs of the sector said most of the manufacturers are not in a position to take fresh orders for production in the next one year.

Currently, the sector has an aggregate investment of Tk. 5,000 crore or so, according to the industry insiders. Investments of another Tk. 2,000 crore are in the process of implementation. The industry is said to have employed about 500,000 people, directly and indirectly. The market of the Bangladeshi ceramic products is worth around Tk. 700 crore including export market valued Tk. 300 crore.

The market of only tiles and sanitary wares that rose to 60 crore (600 million) square feet from 50 lakh (5 million)square feet in a decade is expected to increase to a size of more than 100 crore (one billion) square feet in next few years. The investment in this particular segment, amounting to Tk. 1600 crore at present, is expected to double in five years.

Cashing in on comparative advantage

Global market of crockery items was once dominated by China, which had enjoyed a monopoly in the European market. Bangladesh is now taking its share in that market. Following upward revision of duty by European Union, for exporting ceramic items to EU market, China has to pay up to 50% duty, which made Chinese products dearer. As Bangladesh enjoys duty-free market access, European buyers are now looking at the Bangladesh industry for relatively cheaper ceramic items. Bangladeshi manufacturers have good prospects of exporting ceramic items in the EU market in the foreseeable future.