Local ceramics maker rides out global recession

FARR Ceramics now eyes capacity building
A local ceramics maker, in a span of less than two and a half years, has touched a credit mark of fetching around Tk 31crore from porcelain tableware exports in the immediate past fiscal year (2008-09), riding out the ongoing global recession.
FARR Ceramics Ltd, which has now a 10 percent market share in the Tk 300 crore exports of ceramics, went into commercial production in February 2007, exported nearly Tk 20 crore in FY 2007-08.
Despite a tremendous growth rate, Iftakher Uddin Farhad, the company’s chairman and managing director, believes Bangladesh has more scope than what it now exports.
“I am going to double my factory’s capacity soon to meet the growing export demand,” he said. “Quality and competitive price have helped us boost our exports.”
Bangladesh’s competitiveness enhances day by day. Farhad said rising energy and labour costs in competitor countries might turn Bangladesh into a global hub of ceramics tableware after China.
Ceramics and tiles are an emerging industry in Bangladesh. Some Tk 2,000 crore has been invested in the sector, both from home and abroad. Ceramics’s local market size was Tk 700 crore in FY 2008-09.
Bangladesh’s export earnings from ceramics reached $33 million last fiscal from a meagre amount of $1 million in 1991. Besides FARR, other major exporting companies are Shinepukur, Monno and Artisan Ceramics.
However, many local manufacturers and exporters could not remain immune from global crisis fallout, as exports have marked a decline.
During July-March in FY2008-09, ceramics exports declined to $25.60 million from $28.43 million in the same period a year earlier.
FARR is among the few companies that are showing resilience in the international export market. The company exports to Italy, Germany, Switzerland, Poland, Spain, Turkey and India.
“India is growingly becoming an important export destination for our tableware. We export on an average $70,000 ceramics to the neighbouring country a month,” Farhad pointed out.
FARR Euro Fine Porcelain, FARR Fine Ivory and FAAR High Alumina Porcelain are some of the company brands. Renowned five star hotels in India such as Marriott, Taj, Grand and Ramada use FARR ceramics tableware, the company’s MD claimed.
Higher energy and labour costs in China and Sri Lanka, the two major competitors, have paved the way for the company to cement its foothold in the global export market, Farhad said, lamenting government’s lax attitude towards the industry.
“Turkey is becoming a major importer of Bangladeshi ceramics, but the country requires a health certificate, which our testing institution BSTI is not giving to us,” Farhad said.
He said China gives 22.5 percent incentives to its ceramics exporters, but Bangladesh gives nothing.
FARR Ceramics Ltd was established in 2005 with Tk a 120 crore investment. Some 1,000 workers are employed in the factory.

Courtesy of The Daily Star