Rise of Electrical Merchandise Manufactures Industry in Bangladesh.
In Dhaka, there is small city called Thatari Bazzar packed with more than 5,000 stores of electrical products. The stores deal with a variety of products such as electrical equipment, machine tool, socket, cable, and paring. There is even a store specialized in firefighting equipment. Distributors get together in this city and supply the products into retail stores spotted in the whole country. We visited Bangladesh Electrical Merchandise Manufactures Association (BEMMA) located in this city.
There are currently 2,500 electrical products manufacturers in Bangladesh, and BEMMA consists of a member from 1,000 different manufacturers, most of which are small and middle size makers. There were 14 manufacturers involved when BEMMA was established in 1985, and it has been expanded together with the growth of Bangladesh economy. The main products has been computer peripherals such as power cable and socket, but there are growing number of makers manufacturing LED light.
We made the appointment to know about the whole industry, but it was good surprise that all the board members joined the meeting. They said it was first time that Japanese companies or groups visited the BEMMA office, and it showed the expectation for Japan.
The demand for Electrical products is growing in Bangladesh, and the annual growing rate is more than 20%. Traditionally, the products are imported from overseas such as China, but the national makers are gradually increasing their capabilities. Currently 3 millions solar home system is installed in rural non-electrified areas, and the demand of SHS parts including cables and sockets and other home applicants such as fan is growing.
They said the quality of their products are not inferior to ones produced in Taiwan and South East Asia. However, the export is still low, and advancing into global market is required. They said testing institution of electrical products is the most thing they want to have. The technical standard and facilities are not enough to prove the quality required for exporting. This is the most neck for them.
There is huge expectation for Japan market. They requested us to introduce any Japanese Shosha or Maker that has an interest in this market. Furthermore, there are many requests for public institutions to help BEMMA to join at expo in Japan.
As for manufacture industry in Bangladesh, exporting of ready made garments to Japan is increasing. Currently leather and shoes are also increasing, and the electrical products would come next. There are a lot of investment required such as training for manufacturing and quality management, but this market is remarkable.
