Bangladesh’s cement industry booming 
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
TUESDAY, MAY 24, 2022
TUESDAY, MAY 24, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Bangladesh’s cement industry booming 

Economy

Ahsan Habib Tuhin
23 October, 2019, 11:20 am
Last modified: 23 October, 2019, 01:49 pm

Related News

  • 26 firms win productivity award 2020
  • ‘The protection of import-substituting industries is creating an anti-export bias’
  • Industry-academia collab disappointing in creating skilled manpower
  • Industry owners worried over 4-hour gas supply cut
  • KR Group’s brief business journey rakes in Tk1,500cr

Bangladesh’s cement industry booming 

14 cement companies are involved in exporting their products. They have, in a number of instances, outstripped foreign companies in market competition.

Ahsan Habib Tuhin
23 October, 2019, 11:20 am
Last modified: 23 October, 2019, 01:49 pm
Cement sacks are being loaded into a carrying boat at the Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M
Cement sacks are being loaded into a carrying boat at the Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M

Thirty years ago, Bangladesh would meet almost its entire demand for cement from abroad. Today, the picture is vastly different. Bangladesh's cement sector at this point in time is efficient and productive enough to contribute to the country's export basket – in large measure – after satisfying growing local demand.

MI Cement, the market leader in exports for cement in Bangladesh, had to produce an additional 10 lakh tonnes of cement to feed Bangladesh's major infrastructure projects, among which are the Padma Bridge, Rooppur Power Plant, the

Metro Rail and a flyover. Additionally, it has catered to the construction of a cricket stadium in India's north-eastern city of Agartala.

Fresh Cement,which was headed for a decline, experienced a turnaround when it won a deal to supply cement to the second Meghna-Gomti Bridge. Shah Cement, the market leader, meets the needs of the Matarbari Coal Power Plant.

Currently, 14 cement companies are involved in exporting their products. They have, in a number of instances, outstripped foreign companies in market competition.

In the 1990s, when the local market of cement was small, around 95 percent of demand was met through imports, according to data available from the Bangladesh Cement Manufacturers Association.

Demand, however, began to increase on the back of the government's big development projects and the expansion of private sector construction. As a result, local entrepreneurs have made big investments in the construction sector.

At present, 86 percent of the cement that the country needs is being produced locally.

Manwar Hossain, executive member of the Cement Manufacturers Association and managing director of Anwar Cement, told The Business Standard, "The local companies are supplying the lion's share of cement used in government and private infrastructure projects."

Cement market

In the last seven years, the production capacity of the local cement companies increased by 131 percent, while demand rose by 106 percent.

At the end of 2018, the production capacity stood at 5.80 crore tonnes, while the demand rose to as much as 3.10 crore tonnes.

Of the locally produced cement, the government uses 35 percent, commercial developers use 35 percent and individual-level small buyers use the rest.

From 2011 to 2018, the per capita use of cement increased by 97 percent to stand at 187kg. However, the country yet lags behind the world average of per capita use of 563kg.

Bangladesh is the 40th country in the world cement market now.

A view of Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M
A view of Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M

Masud Khan, former director of Lafarge Holcim Cement and also chief adviser of the MI Cement, said,"We have gas and power crises, which is why we cannot properly utilise our production capacity."

When asked about imports, Masud said some special varieties of cement were now being imported because of specific project demand. However, the amount is not very high.

The nationalized Chhatak Cement Factory exported cement in 2000 for the first time in the country's history. At present, there are 14 companies in the export pipeline.

In fiscal year 2017-18, cement worth around Tk100 crore was exported, which was 17 percent more than in the previous year.

Most of the cement exported from Bangladesh goes to India, especially to its northeastern states, according to industry insiders. Besides, Bangladeshi cement is also popular in Nepal, Sri Lanka and the Maldives.

MI Cement, the country's leading cement exporter, accounts for 50 percent of total exports.

Shah Cement, Bashundhara Cement, Fresh Cement, and Premier Cement are also contributing to the export of the construction material.

A view of Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M
A view of Crown cement factory in Syedpur, Munshiganj. Photo: Mumit M

Six companies to raise production capacity

Meanwhile, six companies have invested an extra Tk3,000 crore in increasing their production capacity, according to sources.

Premier Cement alone has invested Tk700 crore to double its production capacity while Bashundhara Cement, Meghna Cement, Seven Rings Cement, MI Cement and Heidelberg Cement have begun boosting their capacity.

Kazi MdShafiqur Rahman, company secretary of Premier Cement, told The Business Standard,"We have set up Vertical Ruler Mill at Tk700 crore, which will enable us to manufacture more cement at lower cost and using less space."

Workers prepare mixture at a construction site in Fakirapool. Photo: Mumit M
Workers prepare mixture at a construction site in Fakirapool. Photo: Mumit M

Higher tax adds to retail price

As the price of gas has been increased for industrial use, producers now have to pay Tk10.7 per cubic metre. To use captive power, they have to pay Tk13.85 per unit.

Besides, 5 percent advance income tax and 5 percent advance tax have been imposed on the import of raw materials for cement production along with 15 percent VAT on the supply stage, raising the cost of production by about Tk50 per

bag cement. 
 

Top News

Cement manufacturers / industry

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Corporates go cashless…tax cut on cards
    Corporates go cashless…tax cut on cards
  • Rising revenue collection a false dawn, economists say
    Rising revenue collection a false dawn, economists say
  • Why we must resist geoeconomic fragmentation—and how
    Why we must resist geoeconomic fragmentation—and how

MOST VIEWED

  • Inflation jumps to 6.29% in April
    Inflation jumps to 6.29% in April
  • BPC hunts for dollar to import fuel oil
    BPC hunts for dollar to import fuel oil
  • Infographic: TBS
    Businesses reel under soaring costs
  • Representational Image. Photo: Wikipedia
    European buyers back AP Møller-Maersk to run Patenga Container Terminal
  • Representational Image. Photo: Mumit M/TBS
    Govt to list products to suspend imports amid dollar crisis
  • Bangladesh may face debt distress from 2032: Economic Association  
    Bangladesh may face debt distress from 2032: Economic Association  

Related News

  • 26 firms win productivity award 2020
  • ‘The protection of import-substituting industries is creating an anti-export bias’
  • Industry-academia collab disappointing in creating skilled manpower
  • Industry owners worried over 4-hour gas supply cut
  • KR Group’s brief business journey rakes in Tk1,500cr

Features

Musk is denying the sexual harassment allegation that surfaced this week. Photo: Bloomberg

Elon Musk’s crazily banal week 

12h | Panorama
Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

15h | Brands
Keep your phone by your side with this armband

Keep your phone by your side with this armband

13h | Brands
Are Focallure gel masks worth the hype?

Are Focallure gel masks worth the hype?

14h | Brands

More Videos from TBS

Why are Duranta TV shows popular?

Why are Duranta TV shows popular?

7h | Videos
Donbas is hell, says Zelenskiy

Donbas is hell, says Zelenskiy

8h | Videos
Threat of Monkeypox on the horizon

Threat of Monkeypox on the horizon

9h | Videos
Mosque of Mughal period in Gazipur

Mosque of Mughal period in Gazipur

9h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

4
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

5
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

6
The reception is a volumetric box-shaped room that has two glass walls on both the front and back ends and the other two walls are adorned with interior plants, wood and aluminium screens. Photo: Noor-A-Alam
Habitat

The United House: Living and working inside nature

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab