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
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.
Annual production volume BDT 1,500,000,000
Countries exported to India
Established 1991
Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
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
Annual production volume BDT 1,200,000,000
Countries exported to India
Potential export destination European countries and Middle East
Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
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
Annual production volume BDT 120,00,00,000
Countries exported to Australia, UK, USA
Potential export destination USA, UK, UAE
Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
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
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