An overview of Bangladesh furniture industry

Contents

Source of the newsFurniture industry in BangladeshMajor furniture industry in Bangladesh Average sales and profit among different classes

of furniture manufacturerEarning Per year by the ExportingOpportunityThreatsQuestion session

Source of the news

Furniture industry in Bangladesh Traditionally furniture industry in Bangladesh developed as

cottage based industry It is in 1990’s when the furniture industry in Bangladesh has

transited from cottage based industry to mechanized mass production oriented industries.

The export of furniture products from Bangladesh started from 1995

Government of Bangladesh has declared the furniture industry as a ‘Thrust Sector

There are 15 large Furniture companies are doing their business in the country which includes Otobi, Navana, Hatil, Akhtar, Partex, Brothers etc .

Major Furniture Industry

Basic information of Otobi Limited

Established 1975

Product profileWooden, Melamine Laminated Chip Board, MDF, Cane and Metal furniture.

Annual production volume BDT 6,600,000,000

Countries exported to India

Potential export destination Africa, Canada, Middle East, UK, USA.

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Table -01

http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Major Furniture Industry(Cont.)

Basic information of PARTEX Furniture Industries Ltd.

Established 1991

Product profileWooden furniture, Laminates Board furniture, Upholstery (Tubular Metal) furniture, Steels and Metal furniture.



Established 1991


Table -02


Major Furniture Industry(Cont.)

Basic information of NAVANA Furniture Limited

Established 2001

Product profileHome furniture, office furniture, project furniture, doors, wardrobes, sawn timber



Potential export destination European countries and Middle East


Table -03


Major Furniture Industry(Cont.)Table -04

Basic information of Akhtar Furnishers Ltd.

Established 1976

Product profile Wooden, Melamine Laminated Chip Board and MDF


Countries exported to Australia, UK, USA

Potential export destination USA, UK, UAE



Average sales and profit among different classes of furniture manufacturer

Firm size Numbers of Enterprise Average Annual Sales (BDT)

Gross Profit

(%)

Net Profit (%)

Micro 7,961 1,877,400 21.6 9.87

Small 1,676 5,118,333 25.74 12.41

MSM 2 276 8,571,429 29.67 14.67

MSM 1 40 19,350,000 32.10 15.1

Large 35 104,100,000 35.80 15.8

Source: Export data has been compiled fromhttp://bfidexpo.com/furniture_association.php (accessed on 15 May 2012),

Table -05

http://bfidexpo.com/furniture_association.php

Earning Per year by the Exporting

• Earnings from furniture exports grew by 27 per cent to $ 27.14 million in last fiscal year (2012-2013) exceeding the target of $22.45 million, officials said.

• Bangladesh earned $ 21.38 million through furniture export in 2011-12 fiscal year, according to a data of the Export Promotion Bureau (EPB).

Opportunity

• Low labor cost• Use of latest mechanism and technology• Packet base product

Threats

• Furniture associations of Bangladesh participated in several fairs in Japan. Recent fair in Japan took place 2012; but the outcome of that fair is not as expected. One of the main reasons is the weakness of design of furniture products manufactured in Bangladesh.

• At present, there are no rules and regulation addressing standard of products from furniture sector is available

• Furniture industry is facing face shortage of wood supply from domestic forest. This is one of the great threats to the industry.

Question Session

An overview of Bangladesh furniture industry

Documents

Transcript of An overview of Bangladesh furniture industry