Zinzira: The go-to hub for copycat industrial inputs amid import curbs

It was a tough row to hoe for the country's leading industrial manufacturing companies to maintain production when they faced unexpected impediments in importing key machinery, equipment and spare parts last year.

Continuing production without outsourcing damaged or essential machinery from foreign countries is a conundrum that forced many industrialists to turn to Zinzira – the most reliable source of copycat products.

The small neighbourhood in Keraniganj on the outskirts of the capital became famous, more so than ever, for its exceptional emulating ability to produce replicas of complex machinery and parts from scratch – a quality that came in handy in times of need exactly like this one.

To make a product, one has to go to Zinzira with a sample or a digital blueprint of the original product and thousands of factories are waiting to take care of it, with some caveats, of course.

According to traders in Zinzira, as the dependency on Zinzira products grew, their business doubled every month since August last year and the light engineering industry that developed over an area of six kilometres in Zinzira and neighbouring areas of Keraniganj only became stronger.

There are about 2,500 small and light industries spread over the Tawapatti, Tinpatti, Aganagar, Banshapatti, Kathpatti, Thanaghat, and Ferighat areas of Zinzira.

Zinzira has an annual market of Tk15,000 crore. From August last year to January this year, about Tk12,000 crore worth of trading took place in the area.

As the opening of import letters of credit (LCs) became difficult due to the dollar crisis, major industries like ready-made garments, textiles, and pharmaceuticals became more reliant on Zinzira products for basically two reasons – easy and cheap. 

Let's take for example the case of a pharmaceutical company, which will not be named on request. When six out of 18 automatic pouch-packing machines of this company became dysfunctional last June.

These machines, used to pack various tablets, were usually imported from China. But the company has not been able to import a single machine since July due to LC complications. As a result, production was disrupted. The company officials went to Zinzira for help.  

A senior official of the pharma company, on condition of anonymity, told TBS, "A damaged machine was shown to a factory in Zinzira and asked to manufacture an exact functioning one. They agreed to build it in eight days."

"We were a bit sceptical at first, but they successfully made the machine. We installed it in the factory and got good results. Later, five more machines were ordered to be made. Importing these machines from China would have cost about Tk17 lakh each, which was made in Zinzira for only Tk4 lakh," the official said.

"Though the quality is not up to the foreign machines, the important thing is that production is continuing during the crisis," added the official.

Not just packaging machines for pharmaceuticals, but a myriad of machinery, equipment and mechanical parts (mostly replicas) are being produced for various industries including garments, textiles, food, agriculture, chemicals, cosmetics, PVC pipes, packaging, house appliances, ceramics, and aluminium.  

Visiting the Tawapatti area of Zinzira last Wednesday afternoon, a company called "Ripon Engineering'" was seen making a liquid syrup-making machine for a pharmaceutical company in Rajshahi.

Ishrafil Hossain, the proprietor of Ripon Engineering, said, "This machine is usually brought from Taiwan, China or Korea. But because the drug manufacturing company could not import now, a senior official of the company contacted me in the first week of this month. The contract for making this machine is Tk11 lakh and will be delivered on 22 February."

"We made about 30 different machines for a number of pharmaceutical companies since last August," he said, adding that orders for such machinery have been soaring recently. 

"We are able to make almost all types of machines for pharmaceutical factories except basic and digitised ones," said the proprietor of Ripon Engineering.

A blow moulding machine, used for the production of cosmetics, was seen being made in another Zinzira factory.

An official of a cosmetic manufacturing company, wishing not to be named, said that the quality-based cost of importing this machine ranges from Tk80 lakh to Tk3 crore. "This machine was made in Zinzira at only Tk20 lakhs. Besides, almost all types of machines including industrial racks, plastic pallets, and packaging machines are made here."

Aktar Jilani Khokon, president of the Tawapatti Traders Association, said, "Around 40,000 people work in the factories of Zinzira. From last August to January, around Tk 2,000 crores of various machines and parts have been supplied from this area, most of which are exact replicas of foreign machines."

Anisur Rahman, manager of Runa Steel House, said that many heavy machines are also made in Zinzira. "A pressure machine used in pharmaceutical or garment companies costs Tk7-8 lakh to buy from China, but it can be made here for only Tk3 lakh. It will work just fine, but may not last as long as the original."

Demand for Garment and Textile machines is the highest

A textile factory named "GM Textile Ltd" was launched in the Kaliakair area of Gazipur in March last year. In June, the company decided to ramp up production but could not do so as the required machines could not be imported.

On condition of anonymity, an official of the company said, "About 25 machines including Fabric Measuring Machine, Fabric Checking Machine, Fabric Inspection & Rolling Machine, Knitted Fabric Inspection Machine, Fabric Inspection Table for Knits were required for the factory. These machines are usually imported from Japan, Korea, China, Taiwan and Germany at a minimum cost of Tk5 crore."

Since the import was not possible due to LC complications, on an emergency basis, some 19 machines out of 25 were made from four factories in Zinzira last December at a cost of about Tk80 lakh, he added.

A company named "Fakir Enterprise" in the Aganagar area of Zinzira has a good reputation for manufacturing various textile and garment machines.

Abdur Razzaque, president of Bangladesh Engineering Shilpa Malik Samity, said most of the raw materials required for the manufacture of various machines and parts are collected locally by Zinjira traders.

"The traders use scrap steel, rods, and various scrap machine parts as raw materials. A large part of it is collected from the steel, sheets and engines of abandoned ships," he said, adding that Zinzira has no shortage of raw materials.

Rafiqul Islam Masum, president of the Bangladesh Indenting Agents' Association, said their organisation has 350 member companies which import foreign machines for various factories including pharma, food, cement, and garment. But they have not been able to import any type of machine since last August. 

Legal barriers

The 2,500 factories in the Zinzira area are authorised by the Ministry of Industries for light engineering and manufacturing of various components. But these factories are not authorised to produce machines used in factories of other large industries.

Dr Muhammad Ashiqur Rahman, head of the Mechanical Engineering Department at BUET, said that having patent-design rights is very important for making such machines. Besides, the approval of various international and domestic organisations is required to manufacture the machine or technology according to that design, which is not possible without academic recognition.

"The thing about Zinzira is that craftsmen make duplicate machines using their experience. The government is being deprived of the revenue it was supposed to get from the import of these machines. Also, the quality of these machines is definitely questionable. The government should take quick initiatives to facilitate the import of these machines," he added.

Industries Minister Nurul Majid Mahmud Humayun, however, said, "The factories of Zinzira have permission to manufacture some small machine assemblies and engine parts. Various training and financial assistance are being given by the ministry to develop their skills. However, the ministry is not aware of the manufacturing of various foreign machines in Zinzira."