The export of local ceramic tableware, now hit hard by the eurozone crisis, is likely to experience a boom from May 2013, as the proposed European Commission's (EC) anti-dumping duties on Chinese products will be implemented from that month.
The EC has proposed imposing anti-dumping duties on import of ceramic tableware to further tighten its trade defense against Chinese exporters.
According to leading ceramic manufacturers, execution of the anti-dumping duties will fuel strong demand of local ceramic tableware in the 27-member European Union (EU), where production of such items is now expensive.
China is the EU's second biggest trading partner after the US, and the bloc is the biggest consumer of China's ceramic tableware.
"We're expecting to capture the lion's share of the global ceramic market after implementation of the EC's decision," said Rizvi Ul Kabir, chief operating officer of Shinepukur Ceramics, Bangladesh's largest ceramics tableware producer.
Mr Rizvi, whose company sends nearly 50 per cent of the country's total tableware shipment, said: "We're expanding our plants to cope with that demand."
The ceramic sector in the country has every potential to grow further, and it will soon emerge as a major foreign exchange earner in the coming years, Mr Rizvi added.
With the increasing demand of ceramic products at home and abroad, all major Bangladeshi ceramic companies are now expanding their plants. Besides Shinepukur, other major players, like - Paragon, Farr and Protik, are also expanding their plants.
"Our capacity will be 24 tonnes per day equivalent to the second largest player - Monno Ceramics - after our latest expansion is completed," said Ashek Alam, executive director of Paragon Ceramics.
The county's ceramic tableware sector has been clocking a robust growth of 12-15 per cent over the last five-six years. However, the growth came to a halt due to economic turmoil in the Eurozone.
Leading manufacturers said exploring new destinations and higher consumption in the domestic market somewhat have compensated it. But the local market is still flooded by the Chinese products.
In Bangladesh, the modern phase of ceramic industry began to thrive in the 90s with some companies exporting their products in the late 90s. Now 15 companies are producing tableware products weighting around 50,000 tonnes a year worth Tk 6.0 billion.
Until the first quarter of this fiscal year (FY 2012-13), ending September, the country's tableware export amounted to US$ 8.0 million, marking 14 per cent negative growth. The export volume was worth $34 million in the previous fiscal.
Local ceramic manufacturers supply 30 per cent of their total produces to the domestic market. Their main markets are the EU nations, where the export value is much higher than the price in the domestic market. At present, Bangladesh is exporting its ceramic products to over 48 countries across the world.
Mr Ashek said domestic demand for their products is gradually increasing, as ceramic tableware are becoming common household items in Bangladesh, especially among the rising upper-middle and middle income groups.
Iftakhar Uddin Forhad, president of Bangladesh Ceramic Wares Manufacturers Association, said: "There was a catastrophe. Our fast growth was halted due to the recession in the EU and the US. But we will rebound after the EC's decision."
He said most of the local ceramic exporters are optimistic regarding their future, believing that they can increase their present share in the multi-billion dollar world market.
Bangladesh's comparative advantage in manufacturing ceramic tableware is its cheap labour forces. As a result, the nation has been gradually capturing the market elbowing out the traditional tableware suppliers, such as - Japan, the UK, Germany and Italy.
Lack of high-level technological support as well as an international standard laboratory is the impediment on further growth of the ceramic sub-sector, he added.
Ceramic products are mainly manufactured with local raw materials, whereas porcelain products are made with imported raw materials.
The major competitors of Bangladesh ceramic companies are mostly Asian countries, like - China, Japan, Indonesia, Malaysia, Sri Lanka, and Thailand.
The ceramics industry in Bangladesh began in 1958 with the establishment of Tajma Ceramic Industries Ltd in Bogra. The Pakistan Ceramic Industries Ltd was established in early 1960s, and was renamed Peoples Ceramic Industries Ltd after the independence of Bangladesh.
