Procurement Intelligence Report - Steel · 2) Khulna Zone: Aleem Jute Mills, Carpeting Jute Mills,...

Dragon SourcingYour Tailored Approach to Emerging Markets

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Study on Sourcing Opportunities inBangladesh

Dec, 2019

22

Table of Contents

− Executive Summary

− Bangladesh – Macro Economics

− Textile & Garments

− Jute & Allied Products

− Fish, Crustaceans & Allied Products

− Footwear

− Raw Hide & Leather Products

© 2019 Dragon Sourcing. All rights reserved.

3© 2019 Dragon Sourcing. All rights reserved.

Executive Summary- Top Export Categories

Legend More than 100 suppliers Between 50-100 suppliers Less than 50 suppliers

Category Top ProductsExport Value

(2018) in USD

CAGR of exports value

(5 years)

% of total export (2011)

Top Export Destinations

Import Duty into EU

Import Duty into US

No of Suppliers

Textile & Garments

Knit Apparel

238 Bil 18% 87%Germany, UK, France,

USA & Spain0%

0% (textile & synthetic

fibers) -28.2% (for products containing

animal hair)

Non Woven

Beddings & Curtains

Vegetable Fiber & Allied Products

Vegetable textile fibers, paper yarn, woven fabric

721.5 Mil 10% 2.7%Turkey, India, China, Pakistan & Belgium

0%

0% (jute products) -

14.5%(wool/fine animal hair)

Yarn of jute or of other textile bast fibres

Woven fabrics of jute

Fish, Crustaceans & Allied Products

Shrimp, Shark fin, Crab 460 Mil 4% 2.5%USA, Belgium, UK,Germany& Russia

0% 0-7.5%

Footwear Footwear 1 Bil 33% 1.5%Japan, France,

Germany, Spain & Italy0%

0%(footwear made on the

base of wood)-37.5%(waterproof footwear of

rubber or plastics)

Raw Bovine Hide & LeatherProducts

Leather Products 88 Mil 1.7% 1.2%Hong Kong, S. Korea, Italy, China & Japan

0% 0-5%


Executive Summary- Emerging Export Products

Legend More than 100 suppliers Between 50- 100suppliers Less than 50 suppliers

Emerging ProductsExport Value

(2018) in Thousand USD

% of total export (2018)

Top Export Destinations Growth RateImport Duty

into EUImport Duty into US

Export Duty

No of Suppliers

Shrimp, Dry Fish 377,226 0.2% USA, Belgium, UK, Germany & Russia 99% 0% 0% 0%

Leather Footwear 695,746 0.4% Japan, France, Germany, Spain & Italy 99% 0%0-37.5%

(depending on specific product)

0%

Textile Footwear 207,836 0.08% Hong Kong, S. Korea, Italy, China & Japan 100% 0%0-37.5%(depending on specific product)

0%

Goat Skin 43,756 0.17% Hong Kong, S. Korea, Italy, China & Japan 100% 0% 3.7% 0%

Iron Waste, Scrap 40,741 0.150% China, USA, India, Belgium & Germany 99.5% 0% 0 -6.5% 0%

Cements 19,944 0.08% India, Nigeria, Italy, UK & S. Africa 53% 0% 0% 0%

Basket work 3,977 0.02% USA, Germany, Austria, UK & Italy 78% 0% 6% 0%

Cigars, cheroots & cigarette 2,578 <0.01%Netherland, USA, Germany, Belgium & S.

Africa98% 0% 23.9¢/kg 0%

Bricks 1281 <0.01% USA, Italy, Turkey, UK & Norway 71% 0% 0% 0%

Leather Sheet & Strips 1215 <0.01% Hong Kong, S. Korea, Italy, China & Japan 100% 0% 4.2% 0%

Mats 291 <0.01% USA, Germany, Austria, UK & Italy 83% 0% 5% 0%

Tiles 284 <0.01% USA, Italy, Turkey, UK & Norway 92% 0% 0-10% 0%

Clay 202 <0.01% India, Nigeria, Italy, UK & S. Africa 79% 0% 0% 0%

Hats 19 <0.01% USA, Canada, Australia, Germany & Brazil 89% 0% 1.4% 0%

Bangladesh- MACRO ECONOMICSSourcing Opportunities in Bangladesh


– Bangladesh is situated in South East Asia:

+ a population of: ~161 million (2011 statistics) ; 28% population is concentrated in urban areas

+ a surface area equivalent to: ~140,000 Sq Km

+ 92%of total area is land

+ Economy in Bangladesh extremely centralized in Dhaka & Chittagong

+ Major cities are Dhaka & Chittagong

+ 2 main cities:


Population

Dhaka 10.35 million

Chittagong 3.92 million

Growth (2018) Value (2018)

Gross Domestic Product

7.9% USD 274.03 billion

Bangladesh Overview

Source: Bangladesh Bureau Of Statistics

Textile & Garments



Source: International Trade Centre

Textile & Garments - Market Trends

– The garment industry has become the mainstay of the Bangladesh economy, accounting for more than 80 percent of the country's exports

– Bangladesh's exports in 2018 was close to $40 billion, both and knitted and unknitted apparel

– Export of Garments is increasing at 25 %CAGR .– Cotton consumption has accelerated from 488 thousand

metric tons in 2011 to 700 thousand metric tons in 2017.– The EU imported a 61% share of Bangladeshi knitwear with

USD 3.36 billion exports. – The sector is now capable of supplying 90 per cent of

fabrics for the knitwear sub-sector and 40 per cent of fabrics for the woven sub-sector

– Narayanganj, Dhaka & Chittagong are major locations of this sector.

$90,489,695

$21,164,739

$13,859,283

$11,079,502

$9,522,758

$9,043,113

$8,834,167

$7,561,110

$5,757,457

$63,606,519

- 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000

China

Bangladesh

Viet Nam

Germany

Italy

Turkey

Cambodia

India

Belgium

Rest of the World

HS 61 Series- Knitted Apparel and Accessories in

USD 1000s in 2018

$77,611,859

$18,818,701

$14,324,005

$13,701,102

$12,248,305

$8,752,941

$8,126,006

$6,726,168

$6,262,454

$71,778,651

- 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000

China

Bangladesh

Viet Nam

Italy

Germany

Spain

India

France

Turkey

Rest of the World

HS 62 Series- Apparel and Accessories NOT Knit

in USD 1000s in 2018 Title

Source: Dragon Sourcing Supplier Survey

Supplier Locations



Textile & Garments - Suppliers in Bangladesh

– Bangladesh Garment Manufacturers and Exporters Association is major trading body encouraging garment industry.– Germany, UK, France, USA & Spain are the major trading partner of Bangladesh for this sector.– There were about 5 million people employed in this industry in Bangladesh in 2017.– Most companies in this sector have ISO & Other certificates– The strength of the country’s apparel sector is well understood through its ability to supply high-end items to famous global brands such as

Hugo Boss, Adidas, Puma, Tommy Hilfiger, G-Star, Diesel, Ralph Lauren, Calvin Klein, DKNY, Nike, Benetton, IKEA and Mango. Currently, more than 30 per cent of the total RMG export is high-end products. Global retailers like Target and Walmart now operate sourcing offices in Dhaka.

– Import duty is 0% to 15% for most garments & textiles and up to 28.2% for animal hair products in the US while in EU, it enjoys nil import duty

31%

13%

12%6%

5%

4%

3%

3%

2%

2%

19%

Top Importing Countries of HS 62 Series from Bangladesh in 2017

United States of America Germany

United Kingdom Spain

France Canada

Italy Japan

Turkey Belgium

Rest of the World

Jute & Allied Products




Jute & Allied Products - Market Trends

– Bangladesh vegetable fiber market is ranked second in terms of production. It accounts for almost 30% of global production. Jute, also known as the golden fiber is the primary product.

– Bangladesh is the largest exporter of Jute Products and accounts for 80% of world exports.

– Bangladesh benefits from policies such as zero MFN (Most Favored Nation) & EBA( Everything but Arms) tariffs on raw jute, yarn, woven fabric, ropes, carpets, and sacks and bags.

– Jute bags are considered the best replacement to plastic bags as it is environt friendly and this has attributed to an increased demand for jute bags around the world

1,398,649

721,534

522,427

419,620

408,743

269,082

105,961

74,070

69,709

904,757

- 400,000 800,000 1,200,000 1,600,000

China

Bangladesh

France

India

Belgium

Italy

Sri Lanka

Netherlands

Belarus

Rest of the World

HS 53 Series- Vegetable Textile Fibers in USD

1000s in 2018

136,749

123,473

203,570

152,206

130,680

-

50,000

100,000

150,000

200,000

250,000

2014 2015 2016 2017 2018

Bangladesh- Export of Jute in USD 1000s


Supplier Locations



Jute & Allied Products- Suppliers in Bangladesh

– Bangladesh Jute Association, Bangladesh Jute Goods Association, Bangladesh Jute Mills Association, Bangladesh Jute Mills corporation, and Bangladesh Jute Spinners Association are the major trading bodies encouraging jute industry. Dhaka, Khulna & Chittagong are major hubs of this sector.

– DSL initial research on the supplier listed in trade database indicate presence of around 200 suppliers.– Some companies in sector have ISO certificates.– Major players in the Industry:

1) Dhaka Zone: Pride Mills, Golden Jute, Bangladesh Jute mills, Karim Jute Mills, U.M.C Jute mills.2) Khulna Zone: Aleem Jute Mills, Carpeting Jute Mills, Crescent Jute Mills, Eastern Jute Mills, Jessore Jute, Star Jute3) Chittagong Zone: Amin Jute, Amin Old Field, Gul Ahmed, Hafiz Jute Mills

– Import duty is 0% for Jute products in USA & EU

28%

23%18%

7%

7%

5%

4%4%

4%

Top Importers of HS 53 Series from Bangladesh in 2018 in USD 1000s

United States of America

Germany

United Kingdom

Spain

France

Italy

Canada

Japan

Belgium

Fish, Crustaceans & Allied Products




Fish, Crustaceans & Allied Products - Market Trends

– Bangladesh Fishing Industry is largely dominated by crustaceans and shrimps.– The major types of shrimps are Black Tiger shrimp or Giant Tiger Prawn, Giant River Prawn,

Speckled shrimp and Indian White shrimp. – Top exported fishes are Hilsha Shad, Pangasius and Tilapia.– Bangladesh shrimp exports in 2017 accounted for more than 50%, of total fish & shrimp

exports with a value of USD 435 Million The EU was the most important market, accounting for 75% of the total export value.

– The most important markets for frozen fish are the UK, Saudi Arabia, the US and to some extent Italy and China.

4,469,781

3,246,149

2,782,320

2,135,123

1,574,130

1,314,702

1,266,261

1,185,418

1,081,620

1,052,731

650,248

597,377

519,010

494,694

477,894

459,696

453,226

341,748

302,161

268,018

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000

India

Ecuador

Canada

Viet Nam

Indonesia

Argentina

China

Russian Federation


Thailand

Australia

Netherlands

Denmark

Mexico

Spain

Bangladesh

United Kingdom

Belgium

Honduras

Saudi Arabia

Top 20 Exporers of HS 0306- Crustaceans in 2018 in USD

1000s


Supplier Locations

377226, 82%

64668, 14%

8496,

2% 4708, 1% 3204, 1% 1389, 0%

Top Export Products Under HS 03 from Bangladesh in 2018 in

USD 1000s & in % Frozen Crustaceans- shrimps and

prawns

Crabs

Other Frozen crustaceans

Frozen crabs

Frozen cold-water shrimps and

prawns "Pandalus spp., Crangon

crangon"Others



Fish & Allied Products- Suppliers in Bangladesh

– Bangladesh Department of Fisheries looks after major fishing operation in the country. Production and exports is looked after by 3 organizations viz. Bangladesh Shrimp and Fish Foundation (BSFF), Bangladesh Frozen Food Exporters association (BFFEA) and Bangladesh Aquaculture Alliance (BAA).

– The fisheries sector is a major source of employment; about 10% of the total population (14.50m) is directly or indirectly engaged in the fisheries sector for their livelihood.

– Shrimp production is largely concentrated in the city of Khulna which accounts for 80% of total production.– The production of cultured fish is concentrated around Dhaka, Chittagong, Rajshahi and Khulna. These four divisions represent 83% of

total fish production.– There are 75 EU-approved seafood export establishments in Bangladesh. – Bangladesh falls under the General System of Preferences (GSP) in the EU . Import duty is 0% on most fish products to in USA except for

some between 3%-7.5%.

20%

18%

14%12%

8%

4%

4%

3%

2%

15%

Top Importers of HS 03- Fish and Crustaceans in all forms from Bangladesh in 2017 in USD 1000s

United Kingdom

Netherlands

Belgium

Germany


France

China

Japan

Saudi Arabia

Rest of the World

Footwear




Footwear - Market Trends

– Bangladesh is major exporter of footwear and textile footwear is increasing its importance due to already developed garment industry

– Leather, resin are the major raw material for footwear– The US is the major market for footwear industry

followed by Belgium, UK, Germany & Russia– The government is encouraging foreign companies to

gain land in Export Trade Zone for footwear industry– More than 90 % of footwear players are concentrated in

Dhaka City region– The Export Processing Zones at present have more

than 23 shoe and leather goods factories

47,135,169

16,806,015

12,250,384

8,573,153

7,115,825

5,113,294

4,272,793

3,900,450

3,326,736

2,846,333

2,823,722

2,534,941

2,333,709

2,212,296

2,093,114

1,562,104

1,555,922

1,248,584

1,132,651

1,040,380

- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000

China

Viet Nam

Italy

Germany

Belgium

Indonesia

France

Netherlands

Spain

India

Hong Kong, China

Portugal

United Kingdom

Cambodia

Poland


Romania

Slovakia

Brazil

Bangladesh

Top 20 Exporers of HS 64- Footwear in 2018 in USD

1000s

Supplier Locations



Footwear- Suppliers in Bangladesh

– Bangladesh Paduka Prostutkarak Samity (BPPS) and the BangladeshPaduka Byabashayee Samiti (BPBS). BPPS is an association of footwear manufacturing concerns

– The number of production units in the industry now exceeds 2,000. Most units are, however, small and medium in size and only 23 are relatively large and have mechanized and semi-mechanized production technology.

– Major International footwear & retail brand have their sourcing offices in Bangladesh .– Australian manufacturer Bonbon Shoe, a supplier to Hugo Boss, and Xen Chen and Genford of Taiwan, are also

building footwear factories in Bangladesh.– Apex-Adelchi, the largest exporter from Bangladesh also has a new factory that will soon start production.– Import duty is 0 to 37.5% in USA and 0% in EU for Bangladesh footwear products

17%

14%

14%

9%

9%

5%

5%

3%

3%

21%

Top Importers of HS 64 Series from Bangladesh in 2017 in USD 1000s

Germany

Japan


Netherlands

Spain

Italy

France

China

United Kingdom

Rest of the World

Raw Hide & Leather Products




Raw Hide & Leather Products - Market Trends

– Bangladesh has a long established tanning industry which produces around 2-3% of the world’s leather from a abundant supply of raw materials

– The leather industry is anticipated to cross the $1-billion mark in export earnings by end 2015.

– Italy, New Zealand, Poland, the UK, Belgium, France, Germany, the US, Canada and Spain are the major importers of leather products from Bangladesh

– Local tanners produce four types of leather - rawhide, wet blue, crushed and finished leather. The main exports are crushed and finished leather.

689,282

579,062

474,638

356,988

164,894

146,206

129,759

121,713

121,518

118,716

113,805

104,148

93,779

88,012

79,167

- 200,000 400,000 600,000 800,000


Brazil

Argentina

Italy

Thailand

Germany

Uruguay

Taipei, Chinese

Hong Kong, China

Slovakia

Mexico

New Zealand

Spain

Bangladesh

Australia

Top 15 Exporters of HS 4104 Series- Tanned Hides and Skins of

Bovines in 2018 in USD 1000s

Supplier Locations


88,012 , 50%70,171 , 40%

7,915 , 5%

5,216 , 3% 1,809 , 1%1,192 , 1%

Top Export Products from Bangladesh under HS 41 Series in 2017 in USD

1000s and in %

Tanned or crust hides and skins of

bovine

Leather further prepared after tanning

or crusting of bovine

Tanned or crust hides and skins of goats

or kids, pigs

Leather further prepared after tanning

"incl. parchment-dressed leather", of

goats Leather further prepared after tanning

or crusting "incl. parchment-dressed

leather", of sheep Other hide under 41 series



Raw Hide & Leather Products - Suppliers in Bangladesh

– Leather and Footwear Manufacturers and Exporters Association of Bangladesh. (LFMEAB) and Bangladesh Finished Leather, Leathergoods & Footwear Exporters’ Association (BFLLFEA) are recognized trade bodies that represent most of the major exporters.

– This sector is expected to become the second highest export industry in the next five to seven years.– The labor-intensive leather industry is well suited to Bangladesh which has cheap and abundant labor force– Bangladesh has a domestic supply of good quality raw materials, such as hides and skins are a by-product of large livestock industry.– Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market– There are currently more than 200 tanneries in the country.– Import duty is 0 to 5% for leather products and 12% for garment products in the US

126,850 , 42%

52,185 , 17%

35,480 , 12%

15,729 , 5%

14,453 , 5%

13,730 , 5%

13,301 , 4%

11,674 , 4%

4,358 , 2% 11,233 , 4%

Top Importing Countries of HS 41 Series from Bangladesh in 2017 in USD 1000s and in %

China

Korea, Republic of

Italy

Japan

Viet Nam

Taipei, Chinese

Spain

India

UK

Rest of the World

Dragon Sourcing Contact Information

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EUROPEAN OfficesDragon Sourcing Paris

50 rue Marcel Dassault92100 Boulogne-Billancourt, FranceTel::+33 (0)1 46 10 36 70Fax: +33 (0)1 46 10 41 14Email: [email protected]

Dragon Sourcing LondonCommunications House,26 York Street,London, W1U 6PZ, UKTel:+44 (0)844 736 1432Fax: +44 (0)844 736 1430Email: [email protected]

Dragon Sourcing MunichGeorgenstrasse 81,80798 Munich, GermanyTel:+49 (0)89 23 515 721Email: [email protected]

Dragon Sourcing TurkeyDeluxia Palace, Barbaros Mh. Sümbül Sk.No: 5 A-Blok Ataşehir – Istanbul, TurkeyTel: +91 0554 754 51 07Email: [email protected]

NORTH AMERICAN OfficesDragon Sourcing Houston

4532 Plantation Colony DrMissouri City, TX 77459Phone: 832- 406-0281Email: [email protected]

LATIN AMERICAN OfficesDragon Sourcing Brazil

Vinte e Nove de Janeiro, 17 Vila Jequitibás13026-300 Campinas, Sao Paulo BrazilMobile:+ 55 (19)8246-2655Email: [email protected]

Dragon Sourcing MexicoGuadalajara, MexicoPhone:+1 (520) 463-5426

Email: [email protected]

ASIAN OfficesDragon Sourcing Shanghai

Suite 1502-1503, Jin Tian Di International Mansion998, Renmin Road – Shanghai, 200021, P.R.ChinaTel: +86 21 61 41 39 55

Fax: +86 21 61 41 39 66Email: [email protected]

Dragon Sourcing Hong Kong7/F Hong Kong Trade Centre161-7 Des Voeux Rd Central, Hong Kong SARTel:+852 91 80 40 57Fax: +852 25 80 24 26Email: [email protected]

Dragon Sourcing VietnamC1A Cu Xa Tan Cang, Dien Bien Phu Street,Ward 25, Binh Thanh District, HCM City, VietnamTel:+84 8 35129390Fax: +84 8 35129391Email: [email protected]

Dragon Sourcing IsraelC 101 Regency Gardens, 1 Ramat Yam Street

Herzlia Pituach 46851, IsraelMobile:+972 54 420 34 80Fax: +972 9 955 71 60Email: [email protected]

Dragon Sourcing India601 – A – Mota MahalLokhandwalla Complex, Andheri (West)Mumbai 400053 – IndiaMobile:+ 91 9867602535Email: [email protected]

AUSTRALIAN OfficesDragon Sourcing Australia

Level 4, 51 Queen St, Melbourne, Victoria 3000, AustraliaTel: 1300 293 816Mobile:+61 407 585 185Email: [email protected]


mailto:[email protected]









The Analysis and Statements in this Report represent the considered views of Dragon Sourcing Ltd (DSL). TheReport includes ‘forward looking statements’ and opinions based on the analyst’s current analysis and judgmentof the Industry. Although DSL believes the outcomes expressed in such ‘forward looking’ statements are basedon reasonable assumptions, such statements are not a guarantee of future performance and actual results ordevelopments may differ materially from those in forward- looking statements. Factors that could cause actualresults to differ materially from those in forward- looking statements include the general economic,environmental, market, business or government conditions. While DSL has made every reasonable effort toensure the veracity of the information presented, it cannot expressly guarantee the accuracy and reliability of theestimates, forecasts and conclusions.

No part of this report may be distributed, copied or reused without prior written permission from DragonSourcing Ltd. Please contact the author should you have any questions.

Bharath Sugumar

Email: [email protected]

Phone: +1 832 406 0281

23

Disclaimer



Procurement Intelligence Report - Steel · 2) Khulna Zone: Aleem Jute Mills, Carpeting Jute Mills,...

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