Value Chain Essay

4942 Words Jul 27th, 2014 20 Pages
The global ceramic industry is worth of US$20 billion. Bangladesh is perfectly positioned to expand rapidly in this sector with its high quality, cost ratio and creative human resource base. Traditionally, ceramic industry is a labor-intensive sector and companies in developed countries experience difficulties in remaining competitive due to rising labor cost and recent global financial crisis. Bangladesh, being a gas rich, low-labor cost economy and having advanced ‘bone china’ technology, is perfectly positioned to be a strategic partner in production and supply of ceramic goods (Board of Investment, Bangladesh). The ceramic industry is surprisingly not quite a new one in Bangladesh. It dates back to
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According to a market study, the existing tiles factories produced 374 million square feet of tiles in 2008 and the output is estimated to grow at the rate of 17 percent in 2009 and 2010. Of the total production of 322 million square feet of tiles in 2007, RAK ceramics alone made 74 million square feet followed by China- Bangla, Fu-wang an Mir, each produced slightly over 30 million square feet of tiles (M. Islam 2010, Khan 2009, Rahman 2009c, 2009e). Over the years, the ceramic industry in Bangladesh has flourished immensely and has gained recognition throughout the world. Local ceramic ware manufacturing industry is expecting a steady growth with a US $100 million return from exports by 2015 as the global market favors more shipment from Bangladesh. The Export Promotion Bureau (EPB) and Bangladesh Bank statistics shown in Figure 4.2 (in appendix) , put the total value of export earnings from ceramic ware at $38.33 million in the FY 2007-08, up by 28% from the previous year and in the last fiscal year, the earnings stood at $31.70 million. After a consistent growth in last 15 years, this sector is now in a good position to achieve the target of $100 million export earnings (Daily Ittefaq, 2009; Hossain, 2009; Export Promotion Bureau and Bangladesh Bank).
Quality of products has helped Bangladesh to carve a niche in the global market; the manufacturers in this sector are taking risks while diversifying their designs into world-class standards.

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