Meghna Group to set up Tk400cr ceramic factory at Narayanganj EZ

Meghna Group of Industries is investing Tk400 crore to set up a ceramic manufacturing complex on 300 bighas of land at the Meghna Economic Zone (EZ) in Narayanganj.

The group is currently setting up machinery, said its Chairman and Managing Director Mostafa Kamal.

He added that they expect to go into commercial operation by March or April of 2021.

Mostafa Kamal claimed they could have started commercial operations in July this year, but failed to complete setting up the physical infrastructure and machinery due to the Covid-19 pandemic, which resulted in technical experts from Europe, Taiwan, and China having to return to their home countries.

However, most of the experts are now back in Bangladesh, and work on the unit is going on in full swing.

“I am expecting employment for at least 1,500 people at the factory complex,” the Meghna Group chairman said, adding that the factory will be able to manufacture 40,000 square metres of tiles per day once it starts production.

The new unit is also expected to house a mosque, a dormitory for security personnel, and a warehouse.

Earlier in February this year, the group gave the nod to nine industrial units at its economic zone in Narayanganj to meet the country's growing demand for consumer products and industrial raw materials.

Meghna Group, one of the largest conglomerates in Bangladesh, invested about Tk4,000 crore to set up the manufacturing facilities, where 8,400 workers are directly employed.

The units formally inaugurated in February are Meghna Sugar Refinery; Sonargaon Seeds Crushing Mills; Meghna Ball Pen and Accessories MFG; Meghna Noodles and Biscuit Factory; Sonargaon Printing and Packaging Industries; Fresh Welding Electrodes and Wire; Meghna Fresh LPG; Sonargaon Ship Builders and Dockyard; and a second unit of Fresh Cement.

Regarding the potential of the new investment, Mostafa Kamal said the ceramic sector is growing fast in Bangladesh as people use tiles in both urban and rural areas.

He said they have a plan to manufacture “world-class” tiles.

The demand for tiles is nearly 200 million square metres per year, according to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) and the market for ceramic products was valued at around Tk35,000 crore in 2019.

Production capacity of the ceramic industry has grown by about 200% in the last 11 years and Bangladesh currently holds 0.14% of the global market for ceramic products.

Local suppliers cater to around 80% of the domestic demand.

Ceramic manufacturers in Bangladesh mainly produce three types of products — tiles, tableware, and sanitary ware. Of the 68 ceramic manufacturers currently operating in the country, 20 produce tableware, 32 make tiles and the remaining 16 produce sanitary ware.

So far, around Tk9,000 crore has been invested in the sector, which employs about 500,000 workers, including 200,000 women.