Production of Ceramic Products

PRODUCTION OF CERAMIC PRODUCTS:

PROSPECTS & IMPACT ON EXPORT EARNING OF BANGLADESH

TITLE OF THE STUDY

Bangladesh is an agricultural country with some three-fifths of the population engaged in farming. Jute and tea are two important agricultural products to earn foreign exchange. For higher GDP growth, investments in industrial sector will need to be accelerated. The prevailing political and economic stability has greatly encouraged investment in the industrial sector. The trend of foreign direct investment is very encouraging. The government is committed to market economy and has been pursuing policies for supporting and encouraging investment in industrial sector and eliminating unproductive expenditures in the public sector. Among the industry, ceramic industry is promising and potential for Bangladesh. In Bangladesh there are some international standard ceramic industries; their contribution to earn foreign currency is increasing day by day. The demand of Bangladeshi ceramic product is increasing in the international market. Considering this factor we did a feasibility study on Production of Ceramic: Prospects & Impact on Export earning of Bangladesh.

ABSTRACT

Ceramic industry took a formal start in this country in 1958. Now, there are about 15 ceramic industries in the country. Ceramic Industry manufactures useful and ornamental articles from clay by shaping and hardening it in high temperature. The industry is basically a development of indigenous pottery works. The ceramic industry in Bangladesh has been one of the rapidly growing sectors. In the fiscal year 2004-2005, the country's ceramic tableware export reached US$ 28.75 million, which was 16% higher than the previous fiscal year. Export from ceramics is expected to triple by 2008. The objective of this paper is to analyze the prospect of Ceramic industry in Bangladesh and its impact on export earning of Bangladesh.

INTRODUCTION

Ceramic Industry manufactures useful and ornamental articles from clay by shaping and hardening it in high temperature. The industry is basically a development of indigenous pottery works. Broadly, ceramics denote the manufacture of any product made from a non-metallic mineral hardened at high temperatures. Industrial ceramics comprise all industrially used solid materials that are neither metallic nor organic. Major ceramic products include glass, earthenware, porcelain, and white-ware, porcelain enamels, brick tiles and terracotta, refractory, cement, lime and gypsum and certain abrasives. Generally Ceramic materials are inorganic and non-metallic. They are generally moulded from a mass of raw material at room temperature, and gain their typical physical properties through a high temperature firing process.

The Ceramic industry is labour-intensive and it offers entry-level jobs for unskilled labour in developed as well as developing countries. Job creation in the sector has been strong for women in poor countries, who previously had no income opportunities other than the household. In Bangladesh almost half portion of the entire population were unemployed, textile sector has created a huge job opportunity for that portion. Moreover, in ceramic industry, relatively modern technology can be adopted even in poor countries at relatively low investment costs. These technological features of the industry have made it suitable as the first stair on the industrialization ladder even in a developing country like us.

RATIONAL OF THE STUDY

The most prominent sector of Bangladesh foreign currency earning is Ready-made garments and remittance from the non-resident Bangladeshi's. After elimination of quota Bangladesh ready-made garments industry is now in a crucial position. The entrepreneurs are in doubt that either the industry will be able to survive or not. In this situation Ceramic industry may play an important role to earn foreign currency for the country. This sector is very potential and if look prudently this sector may be an alternation of RMG sector in case of foreign currency earning. So as a conscious person We feel ourselves that the subject matter of the research will be helpful for the potential investor and also will encourage the foreign investor to invest in this sector.

OBJECTIVES OF THE STUDY

The objectives of this research are:

(a). To provide detailed information regarding the Prospects & Impact on Export earning of Bangladesh from ceramic sector so that the interested entrepreneur can justify the worthiness of their investment.

(b). To give knowledge about our ceramic industry, potentiality of ceramic business, present scenario of out ceramic industry, future demand and market so that investor can justify the viability of their investment.

METHODOLOGY OF THE STUDY

The method of obtaining information is mainly secondary. Published articles, reports, website and journals have been used to find the different techniques of this research. Necessary data have been collected on the following broad groups of variables:

Region wise distribution of exports and imports of Bangladesh;

Sector wise improvement of Bangladesh Business;

Economic Environment of Bangladesh, &

Business environment of Bangladesh

History of Ceramic industry in Bangladesh: In 1958 with the establishment of Tajma Ceramic Industries Ltd. at Bogra, Ceramic industry took a formal start in this country. Tajma is the oldest modern ceramic manufacturing plant in Bangladesh. Its production was very small and the quality of the product was not so good. The Pakistan Ceramic Industries Ltd. was established in early 1960's and it started production in 1966. Later it was renamed as Peoples Ceramic Industries Ltd.

In 2004, Bangladesh had nearly fourteen ceramic industry units. Five of them are fairly large and these are Monno Ceramic Industries, Shinepukur Ceramic Industries, Bengal Fine Ceramic Industries, Standard Ceramic Industries and Peoples Ceramic Industries.

Scenario & Production of Ceramic Products in Bangladesh: The above companies produce high quality ceramic and porcelain wares. The annual production is about 15,000 tons of ceramic items. About 5,000 tons is exported to 45 countries. The remaining amount is consumed locally. Initially, all ceramic industries centered to the domestic market only.