Glass industry meets 95pc local demand

Glass industry meets 95% of local demand The local multi-billion taka glass industry that sprang up in a span of three years now exports produces to a number of countries after meeting around 95 per cent of the domestic demand. According to industry insiders, a growth in real estate business and construction of huge establishments has helped the industry flourish. The present market size of the countrys four glass manufacturing units is around Tk 300 crore. These factories, with a capacity of producing 250 tonnes of glass a day, are Nasir Glass Industry, PHP Float Glass Industries Limited, Usmania Glass Sheet Factory Ltd and MAB Glass Industries. Of these, Nasir Glass Industry and PHP Float Glass Industries Limited started commercial production in 2005. The sector people said by the end of 2002, Bangladeshs entrepreneurs started thinking about manufacturing glass locally noticing the growth of high-rise buildings and the dearth of quality glass. Previously the country was fully dependent on imported glass, whereas it now imports only 5 per cent of its demand for coloured and luxurious designed glass from China, Thailand and Indonesia. Among the local industries, Nasir and PHP are producing float glass and the rest are producing sheet glass. Palash Ahmed, GM of Nasir Group, said this industrial unit started its journey with an investment of Tk 300 crore, NGIL was set up at an investment of Tk 200 crore, equipped with state-of-the-art technology and machinery. It now owns more than 60 percent share of the glass market, He said his company produces every year around 73000 tonnes of glass, including float, shades (commonly known as mirror), tempered and reflective ones. A director of PHP Float Glass Industries Limited claimed that his company is the first one that manufactures the float glass with the thickness ranging from 2mm to 12mm. He said his company produces around 55000 tonnes of float glass per annum and it now puts its efforts for capacity building. The biggest and second float glass manufacturer in Bangladesh. Produces different sized and coloured float glass according to the requirements of the buyer. The About us manufacturing plant is located within the short distance of the capital city of the country, dhaka. Industry Focus Fiberglass, Crystallized Glass Panel, Building Glass Business Type Manufacturer Products/Services Fiberglass, crystallized glass panel, building glass Our Markets Worldwide No. of Employees 501 - 1000 People Annual Sales US$1 Million - US$2.5 Million Range(USD) Year Established 2005

Contact Information Company Name Nasir Glass Industries Contact Person Mr Nasir Uddin Biswas Company Address House 40, Road 123, Gulshan 1, Dhaka, Bangladesh, Bangladesh Postal Code 1212 Telephone 880 189 242615 Number Mobile Number Fax Number 880 2 8820279 Nasir Glass Industries, Website http://www.bizearch.com/company/Nasir_Glass_Industries_229973.htm

Exporting of Nasir glass

Nasir Glass Industries Limited (NGIL) exported more than Tk 20 crore worth of glass in 2008, a chunk of which went to the northeastern states of India. The country's largest glassmaker that started commercial operations in September 2005 had explored the new markets over the past two years. The company exported glass worth about Tk 13 crore in 2007, according to NGIL and bank officials. Ninety percent of the company's exports go to the Indian market, said Touhidul Alam Khan, executive vice president and head of syndication and structured finance unit of Prime Bank. The bank deals with the company export documents. Both Bangladesh's export basket and markets are limited to a few products and countries. Many say that it is the collective failure of both businessmen and the government to diversify export products and destinations. Glass has been added to the list of few products -- jute, garments, battery, cement -- that are generally exported to India. Bangladesh's exports to India are a mere $350 million against imports worth $3.5 billion from the next-door neighbour. We also export to Nepal, Bhutan, South Africa and Kenya, in addition to the north eastern states of India, said Abu Sayed, general manager (commercial and banking) of NGIL. Now the company is trying to explore new export markets including the United States and the oil rich Middle Eastern countries," added Sayed. NGIL was set up with Tk 200 crore in investment, equipped with the state of the art technology and machinery.

Prime Bank lent Tk 100 crore as a syndicated term loan over a period of six years. Some 14 financial institutions participated in the largest syndicated arrangement in 2003. In just three years of production, NGIL sales turnover stood at Tk 182 crore in 2008, which was Tk 157 crore in 2007, according to company statistics. The company manufactures float glass, reflective glass, tempered glass, coated glass, mirrors, clear and coloured glass. Besides NGIL, PHP Group also started commercial production of float glass at about the same time. Two other companies Osmania, owned by the government and MEB by Ilais Brothers, a private business house in Chittagong, were in operation earlier. Currently, all these four companies produce around 350 tonnes of glass a day against their combined capacity of around 400 tonnes, according to the respective officials. NGIL produces 180-200 tonnes a day, PHP produces 100 tonnes on a single day and Osmania and MEB congregate the rest. Bangladesh had once met 70 percent of its demand for glass by imports, at the time 2003-04. Now the sector exports after fulfilling the country's total market demand for the product. Industry people said the country is saving crores of money that was previously spent on import of the product. According to a market study jointly conducted by a local private bank and an international research organisation in 2003, Bangladesh imported 6.51 crore square feet of glass in 2003. The local companies produced 4.14 crore square feet the same year. Glass is produced with silica sand, dolomite, soda ash and limestone, of which, silica sand represents 70 percent, a raw material available locally. The company has already paid back about 70 percent of its syndicated term loan, Touhidul Alam Khan said. NGIL can produce as much as 20mm thick glass, while the maximum capacity of other companies is 12mm, according to NGIL's production manager. Senior executive of the NGIL said the country's float glass is now being exported to Sri Lanka, Bhutan, Nepal and India. The price of per tonne of float glass is US$250, he said. "Every month the NGIL exports at least 2,000 tonnes of float glass," he said. "The float glass industry owners are deprived of government cash incentives although they use more than 80 per cent of locally available raw materials like silica sands for producing float glass," he complained. Talking to the FE, another senior executive of the NGIL Glass said his company's aim is to meet the domestic demand of float glass rather than export. But, due to direct marketing by the producing companies the retail float glass traders have been losing the competitiveness in their businesses, said a retail trader at the city's Babu Bazar. He, however, said the commission given by the companies to the retail traders is only 0.40 per cent.