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7 Facts About the ceramics industry of Bangladesh.

Ceramics Sector is one of the rapidly Growing Sector of Bangladesh. The major products are Tiles, sanitary ware, Tableware .This Sector has seen some strong outside investments particularly From UAE and China. The main problem of this sector is He said the entire ceramics industry has to rely on import for raw materials, mostly from China, which is the main competitor of Bangladesh.

7 Facts About the ceramics industry of Bangladesh.

  • Bangladesh Ceramics is exported to 45+ Countries
  • The Export of ceramics in 2011-2012 are 33.75 Millions
  • Total Sector investment is 3000 crore , Local market size 1500 Crore
  • Bangladesh exports two types of ceramics Porcelain and Bone China
  • Largest Export Destinations:USA, Italy, Spain, France,New Zealand,Netherlands, Australia, Sweden
  • There are 21 Ceramics Unit Throughout the country.
  • Some White Clay Deposits have been discovered in Mymensingh,Sylhet and Netrokona.

L/C or T/T which one the Bangladesh Suppliers/Manufacturers Prefer

In any business be it in Retail, Wholesale or Export the most sensitive point is payment and how it will be disbursed. Around 90% of new business deals fell through because of agreement on Payment terms. However, this is more so, critical in Wholesale and even more in export transactions.

L/C of letter of credits put simply is a Bank Guarantee of payment upon displaying supporting documents as proof of sending the product to the buyers. Here the deal is done between the exporters and importers banks on behalf on their clients. All terms are agreed in written documents and discrepancies in submission will mean the Bank will not disburse the fund until correction.

T/T or Telegraphic transfer or telex transfer, often abbreviated to TT, is a historic term used to refer to one of the form of exchange of money which happens in some of the countries for ex (uk). A transfer charge is often charged by the sending bank and in some cases by the receiving bank.(Wiki). In the Simplest way, T/T means sending the money to the sellers account before the Shipment happens or Advance Payments.

The Main Benefits of L/C are:

For Sellers:

  • After Documentation the L/C is Irrevocable (unless otherwise mentioned, so,as long as seller does his part right , payment is assured from Bank
  • The seller will get proper specifications of product, quality standard and specific shipment Date.
  • The opportunity to get financing in period

For Buyers:

  • The Buyer can control the time period for Shipping of goods.
  • By a letter of credit, the buyer demonstrates his solvency;
  • Helps to avoid Pre-payment

In most international Import Payment, L/C is used for the security it brings for Buyers and sellers. However, In Bangladesh, T/T is the most preferred by the manufacturers and exporters.

Reasons Are:

  • Usually, for manufacturing Goods, a procurement of raw materials are involved. Most small manufacturers does not have the free cash to procure it. And for small orders or Small companies the banks aren’t willing for advance payment or Partial encashment of L/C
  • To get advance from bank an additional interest will need to be paid.
  • Without proper Financial Backing or transactions a Bank will not open L/C for the company
  • For Products where Buyers are Few yet Product supply is scarce and Controlled by few , then the Seller Himself may will want Advance TT
  • In general, L/C process is lengthy and most exporters wants to avoid it entirely for the hassle.

In Bangladesh, T/T and L/C both are widely used, it mainly depends on the scenario. T/T is a must even as a partial advance from most Manufacturers. Some will even want 100% of it as advance. L/C is used mostly the big companies and the Medium Size Enterprises that has a strong commercial department. However, T/T senders will likely have a strong bargaining power over the suppliers as the payment is received as advance. However, without a strong representative it is usually not advised to send T/T unless you are confident about the entire transaction.

7 facts you should know About Bangladesh Jute Industry?

Jute and Jute Made Products are a part of the Bangladesh Culture. Fondly called the “Golden Fibre”, in the past this sector were the primary Export products of Bangladesh. It still plays a Pivotal Role in Bangladesh Economy. Bangladesh exports 0.46 million (4.60 lakh) of Global Demand of 0.75 Million Jute Goods. Bangladesh has also the Patent of “Jute genome” or the patent holder of Jute DNA Structure formula.The Jute goods Market is worth which is worth 20.125 Million USD approx.

A number of Jute Goods manufacturers are Active in Bangladesh. Jute Fibre can be compressed and crafted into Consumer Products like fashionable bags, School Bags, Wine Bags, Wallets, Toys, Accessories, and Footwear etc. Also Jute is used to craft Socks, Sacks, hessian, Twine, Burlap etc.

7 facts you should know About Bangladesh Jute Industry:

 

  1. At the beginning of the twentieth century, Bengal could boast of only one manufacturing industry – jute
  2. There are 50 private jute spinning mills producing jute yarn/twine under Bangladesh Jute Spinners Association. The collective Production of of this sector is 0.29 million Tons of Jute Yarn/Twine. Exports annually 12 Million US Dollar.
  3. The Average production of Jute Goods are 6,63,000 Metric tons
  4. Jute bags is widely popularized as plastic bag Substitutes.
  5. Most of the New Jute Manufacturers are coming online to Trade.
  6. The Most Sought Jute Consumer Products are Jute bags. On Average a prices of Jute Bags Varies from $1-$8. It may differ depending on quality, Type of Bags, Level of Work etc.
  7. Jute Bags are Biodegradable and Eco-friendly.

 

(Want to see some Jute Goods, Click Here)