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The Current Market Scenario and the Future Prospect of Leather Chemical Industry of Bangladesh (ACI) Limited

1.0 Introduction 1.1 Company Profile at a Glance:

Company Name

: Advanced Chemical Industries (ACI) Limited

Address

: ACI Centre, 245, Tejgaon Industrial Area, Dhaka-1208.

Phone

Fax

E-mail

Web Page

: WWW. ACI-BD. COM

Company Logo

:

: +88-02-9885694 : +00-02-9886029 : INFO@ACI-BD.COM

1.2 Strategic Business Units: • Pharmaceuticals • Consumer Brands • Agribusinessa) Crop Care and Public Health b) Animal Health 1.3 Subsidiaries: • ACI Trading Limited • ACI Formulation Limited • Apex Leather crafts Limited • ACI Salt Limited 1.4 Executive Management:

• •

Mr. M Anis-Us-Dowla Dr. Arif-Dowla

Chairman Managing Director


Mr. M Mohibuz Zaman

Dr. F H Ansarey

Mr. Azmal Hossain

Mr. Syed Alamgir

Mr. Muallem A Choudhury

Mr. Towfiqur Rahman

Mr. Priyatosh Datta

Ms. Sheema Abed Rahman

Mr. Pradip Kar. Chowdhury

Chief

Operating Officer, Pharmaceuticals. Executive Director, Agribusiness. Executive Director, Trade. Executive Director, Consumer Brands. Executive Director, Finance & Planning. General Manager, Operation. General Manager, Quality Assurance. General Manager, Corporate Service. Financial Controller

1.5 Financials (Year Ending December 2004):

   

Authorized Capital:

Taka 500 Million.

Paid-Up Capital:

Taka 161.70 Million.

Sales:

Taka 2,558 Million.

Numbers of Employees:

2161

2.1 Background: ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the 24 th of January, 1973 as ICI Bangladesh Manufactures Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28.12.1976 and its first trading of share took place on 09.03.1994. Later on May 05, 1992, ICI Plc divested 70% of its shareholders to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was making on 22 October, 1995. Advanced Chemicals Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The company has diversified into five major businesses. Beside these, the company has a large list of international associates and partners with various trade and business agreements. 2.2 Company Mission: ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products,

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innovative processes and empowered employees to provide the highest level of satisfaction to its customers. 2.3 Company Vision: To realize the mission ACI will: • Endeavor to attain a position of leadership in each category of it businesses. • Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies. • Develop its employees by encouraging empowerment and rewarding innovation. • Promote an environment for learning and personal growth of its employees. • Provide products and services of high and consistent quality, ensuring value for money to its customers. • Encourage and assist in the qualitative improvement of the services of its suppliers and distributors. • Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence. 2.4 Values:

• • • • •

Quality Customer Focus Fairness Transparency Continuous Improvement

2.5 Distribution Network: The company maintains strategically located sales centers in 198 different locations across the country. It has developed an advanced distribution system through its more than 300 skilled and trained manpower and a large fleet over 80 vehicles. The distribution system is capable of handling continuing volume of diverse range of products from the various businesses. The company’s distribution centers are highly streamlined, computerized and automated. We are capable of maintaining a cold chain for some specialized range of products such as vaccines and insulin. The combination of this advanced function and multi dimensional capabilities make it possible to handle hundreds of products efficiently.

2.6 Business Units: 2.6.1 ACI Pharmaceuticals: In 2004, ACI Pharmaceuticals ranked 11th in the Bangladesh pharmaceuticals industry. It provides the market with a wide selection of drugs across all major therapeutic classes, and also offers some specially medicines. ACI Pharmaceutical represents AstraZeneca, Eli Lily and UCB in Bangladesh. 2.6.2 ACI Crop Care and Public Heath Division: This Division is holding the leadership position in the industries; Animal Health has experienced one of the highest growth rates in this sector. ACI Agribusiness has partnerships with several international conglomerates including Ceva Santhe Animale, Invesa, UCB, Isago Asia and Boreegaad Taicang Chemical Co. Ltd.sdx.


2.6.3 ACI Consumer Brands: This Division is a leading Fast Moving Consumer Goods (FMCG) company in Bangladesh. In the liquid antiseptic and mosquito repellant categories, this division is a very strong market leader. Foreign partners represented in by this division include Godrej Consumer Products (for hair care and skin care ), Parle Group (for Parle G biscuits), Beiersdorf, Germany (for Nivea range of Products) and Colgate Palmolive. ACI has formed joint ventures with leading FMCG and agribusiness players in the region. These are: • Asian Consumer Care Private Ltd: Joint venture of ACI and Redrock Limited, for distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake in the venture. • Tetly ACI Bangladesh Ltd: Joint venture of ACI and Tetley Group of United Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50% shareholding. Many ACI products have crossed our national boundary and are being successfully exported to various countries in Asia, the Middle East and the CIS region. The responsible of foreign consumers to our products has been encouraging. 2.7 Manufacturing Standards: ACI has three separate manufacturing plants in the outskirts of Dhaka. The Pharmaceuticals plant is located at Narayanganj; ACI Formulations has been setup in Gazipur and the Tetley factory has been built at Konabari. ACI Limited is the first company in Bangladesh to have attained the ISO 9001 certification for Quality Management and ISO 14001 for Environment Management. The Trading subsidiary has also received ISO 9002 certificate. At our manufacturing facilities, we follow CGMP guidelines and standards recommended by World Health Organization (WHO) for pharmaceutical formulations. 2.8 Diversification into new industries: ACI Limited is venturing into new areas of business, as part of its diversification initiatives. Two such businesses being set up are ACI Salt Ltd. And ACI Godrej Agrovet Private Limited. • ACI Salt Ltd: ACI has set up its salt plant in Rupganj, on the bands of the Shitalakhya river. The plant will produce refined iodized salt through Thermal Evaporation System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. The end product will be high quality, free-flowing salt with even, crystallized grains. The iodine content of ACI salt will have a stability of more than 6 months. The project has been undertaken at an approximate cost of Taka 32 crores. • ACI Godrej Agrovet Private Limited: Godrej is a pioneer in the packaged meat business in India. It is also the market leader in the poultry industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint venture in Bangladesh to set up an Integrated Poultry Project. Under this project, ACI Godrej Agovet has already set up a feed mill at Sirajganj. This is fully automatic pellet poultry and fisheries feed mill, which uses technology from Jiangsu Muyang group of China. The company has also set up a hatchery at Joynabazar, on the Dhaka Mymenshingh road, with technology from Godrej. The plans for this project also include establishing Grand Parents and Parent Stock breeding farms. The investment in the project is Taka 8 crores, with ACI Limited having 50% shareholding of the company. 2.9 ACI Formulation Limited: ACI Formulations Limited (ACI FL) is a subsidiary of ACI Limited, located at Gazipur, in the outskirt of Dhaka.

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ACI FL manufactures majority of the products of ACI strategic Business Limited except for Pharmaceuticals division. The factory is equipped with the state-of-Art facilities for product formulations and process innovation. These include modern computerized equipment like HPLC and GLC. The product range manufactured at ACI FL include Crop Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and liquid forms, Mosquito Pesticides in the forms of aerosols, vaporizers and coils, and households chemicals like toilet cleaners and hand wash. 2.10 Quality Policy ACI aims is to achieve business excellence through quality by understanding accepting, meeting and exceeding customer expectations. ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current business and ensures that current Good Manufacturing Practices (CGMP) as recommended by World Health Organization is followed for its pharmaceutical operations. The management of ACI commits itself to quality as the prime consideration in all its business decisions. All employees of ACI must follow documented procedures to ensure compliance with quality standards. The pool of human resources of the company will be developed to their full potential and harnessed through regular training and their participation in seeking continuous improvement of work methods. 2.11Business Performance and Growth Scenario of ACI Limited:

Business Performance financial analysis 2002 -2004

• • • • • • •

2002 2002

2003 2003

2004 2004

Issued & paid up c apital (Tk.) 161,700,000 Net Turnover (Tk.) 2,052,913,536 Gr oss mar gin (%) 30 Profit after tax (Tk.) 109,180,668 Rate of Di vidend (%) 37.5 Earnings per shar e (EPS) (Times) 6.75 Number of employees 1662

161,700,000 2,239,565,258 29 85,413,760 40.0 5.28 1883

161,700,000 2,557,772,237 29 89,516,202 42.5 5.54 1924

Figure No: 2.1


Business Performance business divisions Contribution by rev enue 2 0 0 4

Figure No: 2.2

sales & profit Growth

14.21%

Figure No: 2.3

6


2.12 ACI Trading Limited ACI Trading Ltd is one of the leading Trading Houses in Bangladesh. Originally it was ICI Pakistan Ltd established as the subsidiary of Imperial Chemical Industries (ICI) in the then East Pakistan. After independence of Bangladesh the operation continued as ICI Bangladesh Ltd. In July 1994 ACI Ltd another divested part of ICI PLC UK for Pharmaceuticals and Agrochemicals operation purchased ICI Bangladesh Ltd from ICI PLC and renamed it to ACI Trading Ltd. ACI Trading Ltd has been accredited with ISO 9002 certification since June 1997 for its Quality System on indenting business. The Company is mainly involved in marketing and sales of various Industrial Chemicals, Petrochemicals, Plastics, Pharmaceuticals, Leather and Shoe finishes. Textile Dyes and Auxiliaries through Indent sales. It has four business divisions such as Chemicals, Textile, Leather and Water Pumps. To render technical service ACI Trading has two separate technical application laboratories for textile and leather businesses. We represent ‘World Class Products’ in Bangladesh from ICI and some other multi-nationals like ExxonMobile, Solvay Interox, Enichem, Huntsman Tioxide, Magadi Soda Co., Stahl UK Ltd, Onga Australia Pte Ltd etc. We also represent some reputed Principals form Asian countries mostly from India, Singapore and Malaysia. This is a 60% owned subsidiary. ICI, Zeneca, Exxon, Stahl are leaders in their respective fields and ACI have excellent market share of their products in Bangladesh. The major responsibilities of ACI Trading are: - Representing various international companies - Procuring raw materials 2.13. Organogram – Business Management

Figure No: 2.4

2.13.1 Organogram – Business Support Functions

Figure No: 2.5


2.13.2 Organ gram of ACI Trading Limited (Focusing Leather Chemical Division)

Figure 2.6 2.13.3 Mission: Want to be a leading trusted quality Trading Company to earn confidence of the customers. To establish a long-term business relation by offering quality products & services from World Class chemical companies in alignment with our core values.

2.13.4 Strategic Objective:

• • • • • • • • •

To sustain and improve Market Share for the key products To offer World Class products from reputed sources Increase ability to compete in the industry by developing people To render superior service (technical & logistics) to customers To maintain & improve business relation with our Principals New Products Sourcing from reputed manufacturers Aggressively grow Ex-stock Trading with calculative risk To ensure stable earning through balanced product port-folio Taking care of our shareholders interest.

2.13.5 Indent Sales Growth from 2002-2005 & Budget 2006

8


Growth % 2003

31.77

2004

57.08

2005

8.31

2006

20.61

Reason for variance 05

Assumption for Bud’06

    

UCB Film not contributed although budgeted in ’05 Allocation & price constraint of ExxonMobil Plastics for 3 months Scares of Foreign Exchange & restriction on L/C by Central Bank Increase customer & product base New initiative for aggressive growth

2.13.6 Ex-stock Sales Growth from 2002-2005 & Budget 2006


Reason variance’05

for

Assumption for Bud’06

 

Less ExxonMobil Plastics sales due to strategic import Stahl sales was behind due to recession in Leather Industry

   

To increase ExxonMobil Plastics sales with calculative risk To increase Textile Auxiliaries sales through Cola Project To increase sales of MEC, Cereclor Inclusion of other products like TiO2, PET

Growth %0 2003

-3.87

2004

3.36

2005

74.03

2006

46.83

2.13.7 Profit and Loss Budget 2006

10


Actual Actual Estimated 2003 2004 2005

Net Sales (Ex-stock) Total COGS Gross Profit Commission Income Marketing Expenses : Fixed Expenses Variable Expenses Total Marketing Expenses Field Force Expenses: Fixed Expenses Variable Expenses Total FF Expenses Distribution Expenses Administration Expenses Total Operating Expenses Other Income Trading Profit Financing Cost Profit Before WPF & Tax

Budget Variance 2006 %

27.47 28.25 22.15 22.15 5.32 6.10 16.18 16.74

49.97 41.00 8.97 17.60

70.00 60.55 9.45 22.10

40.08 47.68 5.36 25.57

7.83 9.26 1.80 0.93 9.63 10.19

10.56 1.21 11.77

11.39 1.22 12.61

7.81 0.83 7.09

1.33 1.53 0.52 0.26 1.85 1.79 0.13 0.06 0.60 0.60 12.21 12.64 0.12 1.75 9.40 11.95 2.38 3.07 7.01 8.88

2.39 0.50 2.89 0.06 0.60 15.32 1.50 12.75 2.64 10.11

3.35 0.50 3.85 0.04 0.60 17.10 1.50 15.96 2.80 13.16

40.17 0.00 33.22 -33.33 0.00 11.59 0.00 25.14 6.06 30.12

2.13.8 SWOT Analysis of ACI Trading Limited

• • •

Strength On going need base training of people (Management & Technical) Well groomed Employees & Professional approach Association of global famous brand (ExxonMobil, ICI)


• • •

Loyal customer base for World Class products Quality perception of customer for products & services from ACI Support of ACI conglomerate & its image

• • • • •

Weakness Achievement depends on supplier’s own strategy Much dependent on few major suppliers Some major Raw Material suppliers absence in Portfolio Uncompetitive price & longer lead-time (Europe vs. India/China) Technical support is based on suppliers’ priority

• • • • •

Opportunity More Local & Export orientated industries coming up Sourcing Chinese suppliers for some major RM New business line expansion (API, PET, PS etc) Value addition of products (Textile, Leather) Increase Ex-stock Trading (existing & new)

• • •

Threat Indian & Chinese cheaper RM suppliers Local basic RM manufacturers coming up Increase of competition taking advantage of IT

2.13.9 Business Strategy To nourish the Strength

• • • •

More need base training of people (Management & Technical) Build more relation with major supplier Exert Professional Behavior to maintain the reputation of ACI Proactive approach to customers for relationship marketing

• • •

To turn Weaknesses to Strength Find suppliers for some major Raw Material not in range Update suppliers with market & competition on regular basis Insist supplier for technical support showing business potentiality

• • • •

To avail Opportunities Increase customer base Increase product base Step for Value Addition Increase trading of Ex-stock To turn Threat to Opportunity

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• •

Take advantage of IT to form chemical data-base for new opportunity. Try sourcing of RM from India & China

2.13.10 Key differentiating factors that attracts customers:

• • • • •

Quality, price, timely delivery with clean documents Technical Assistance/Information to customers about int’l price Proactive involvement in customers purchasing decision Excellent relation with loyal customers Highly professional & customers caring sales people

2.13.1 1Products, Customers & Supplier Base Up to 2005 Chemi cal

Text ile

Leat her

Tota l

Total Product base

60

35

70

165

Total customer

70

36

60

166

Total supplier

29

4

2

35

2.13.12 Major Development through initiative in 2005

1) 2) 3) 4) 5)

Re-start of Ex-stock sales of ExxonMobil Plastics Increased customer & Product base through trials for Textile Auxiliaries Introduction of C&TP from Stahl India Appointed a Retailer for Stahl Leather Chemical sales Irregularities caused by Sales Manager, Leather (Mr Mizan) mostly adjusted with customer satisfaction 6) Sourcing PET from China 7) Sourcing API from India & China 8) Measurable & Comparable items Software development 9) Weekly sales Meeting with all SBU with EDT 10) Study on Textile Auxiliaries Market through Internee 2.13.13 Projects/Suppliers looked for

1) 2) 3) 4) 5)

H2O2 Paints Bulb & Tube Lights Dry Cell Battery Adhesive Tapes


6) Lady Napkin 2.13.14 Initiative to be taken in 2006

1. Value Addition – Textile Auxiliaries 2. ICI Paints India (J.V.) 3. Value Addition for Beam House Chemicals for leather 4. More trials of Text. & Leather Chemicals to increase customer & Product base 5. Dyes & Optical Brightener sourcing – India, China 6. Introduction more Traders for Textile Aux. credit sales 7. Recruit sales person for Chemical & Textile division 8. Implementation of Program for Measurable & Comparable items related to sales performance 9. Engage two Internee for Chemical & Leather Market Study 10. Interaction with knowledgeable & experienced persons from Faculties and Trade 11. Aggressive Plan to become a big Trading House by 2008 Leather Industry of Bangladesh 3.0 Leather Industry Background 3.0.1The Leather Industry in Bangladesh Tannery transforms raw hides and skins into leather for manufacturing articles like shoe-upper, bag, suitcase, belt, wallet and jacket. In the past, leather processing was done manually using certain indigenous chemicals. 3.0.2 The beginning of the Tannery The first tannery in Bangladesh territory was set up at Narayanganj by RP Saha in the 1940s. It was later shifted to Hazaribag area of Dhaka, which turned into a location that now accommodates a large number of tannery units. During the period before Partition of Bengal (1947), almost all the raw hides and skins available in East Bengal were exported to west Bengal, particularly to Calcutta and processed there. In fact the tannery industry of Bangladesh originated after its relocation from Narayanganj to Hazaribagh in Dhaka in 1951. At that time there were 54 tanneries in the country and out of those 30 belonged to the Pakistani owners. Development of tannery industry in East Pakistan started after the Partition with an influx of tanners displaced from India and subsequently, with the establishment of subsidiaries of some companies of West Pakistan. The tanning industry in East Pakistan and export of leather from the province were mainly in the hands of the non-Bengali people. A few tanning units, however, belonged to Bengali entrepreneurs but they were small and of cottage type and they used to process leather mainly for the domestic markets. Most non-Bengali tanners processed wet-blue and sent the product to West Pakistan where it was further processed and finished for producing different consumer goods. Till 1960, tanneries of East Pakistan used to process raw hides and skins applying salt and then drying them in the sun and the material thus developed was known as shaltu. 3.0.3 Post Liberation Period During the war of liberation in 1971 the non-Bengali tanners of Bangladesh left the country abandoning about 30 tannery units owned by them. After the war, the new government of Bangladesh vested the management of these units on a newly formed Tannery Corporation, which was expected to convert them into finished leather manufacture units. Unfortunately, the corporation did not serve the

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purpose because of lack of experience and other reasons including corrupt practices. Later, the government relinquished the Tannery Corporation and handed over the management of most of these tanneries to Bangladesh Chemical Industries Corporation (BCIC). Three of them were given to Bangladesh freedom fighters welfare trust. Both the authorities had miserably failed to manage the tanneries. In 1982, the government transferred them to private entrepreneurs in pursuance of its general policy of disinvestments, which had allowed some enterprising Bengalis with little or no experience in the industry to start wet-blue production. 3.0.4 Present Condition At present, the leather sector of Bangladesh has 220 processing units located at different parts of the country (mainly in Dhaka) as follows: Dhaka (Hazaribag) Dhaka (Dhamrai/Savar) Gazipur (Kaliakoir) Jessore (Noapara) Chittagong Jamalpur Rangpur Khulna

-

194 3 1 1 18 1 1 1

units ” ” ” ” ” ” ”

Total : 220 units Only about 50% of the above units are well equipped for processing crust and finished leather. But only 28 tanneries are in operation, among them 20 are operating in crust section and 8 are in finishing section. According to the records of the Bangladesh Tanners Association, about 3,000 workers are employed in the tanning industry. Besides, there are about 100 qualified technologists including foreign nationals who are working in different tanneries. Total capital invested in the tannery industry is estimated at Tk 2.5 billion, of which government/bank finance is about Tk 1.2 billion. About 1,500 persons are involved in the process of collecting raw hides and skins and making them available at tannery units. About 100 organizations import chemicals for use in tannery industry. Some reputed tanneries of Bangladesh are Dhaka Leather, Apex Tannery, Lexco, Karim Leather, Samata Tannery and Bay Tannery Production 4.0 Leather Sector in the Economy of Bangladesh The Leather sector plays a significant role in the economy of Bangladesh in terms of its contribution to export and domestic market. Bangladesh currently produces about 20.0 million sq. meters of leather and leather goods per year. The total production of leather and leather goods shows an increasing trend over the years. Beginning with the 1993/94, the production increased from 14.60 in 1993/94 million sq. meters to 15.90 million sq. meters in 1995/96. It fell to 11.95 million sq. meters in 1996/97. Since 1996/97, there has been a steady increase in the production of leather and leather goods that reached 19.91 million sq. meters in 2000/2001. The following table shows the production of leather and leather goods in the country. Leather sector is perceived to be one of the important economic sectors in Bangladesh. As a single sector of the economy, the sector contributes modestly to the country’s GDP. Contribution of leather sector (hide &skin, leather and leather goods, and footwear except rubber) to GDP is 0.31 (at constant price) in FY 2003.


Table 4.1: Production of Leather & Leather Goods Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2003 2004 Source:

Unit (Million Sq. Meter) 14.60 15.00 15.90 11.95 12.12 16.21 18.31 19.91 17.30 22.85* 20.78** Bangladesh Economic Survey, Ministry of Finance, 2002

*Leather Sector Census Study, LSBPC, 2005 **Approximate Data from LSBPC The quantum index of leather and leather goods production increased to 131 in 1998/99 compared to the base year (1988/89=100) and that of leather footwear production rose to 193 for the same period. It is therefore evident that leather is increasingly being used in the production of footwear. The following table shows the trend of production of leather and leather footwear during the 1990/91 through 1998/99 period. Table 4.2 : Quantum Index of Leather and Leather Goods and Leather Footwear (Base: 1988/89=100) Production Index Leather & Leather Goods Leather Footwear 1990-91 84.34 100.03 1991-92 92.97 100.07 1992-93 108.72 110.93 1993-94 123.44 139.48 1994-95 126.77 161.76 1995-96 133.85 174.46 1996-97 100.84 185.95 1997-98 102.25 123.17 1998-99 136.76 192.84 1999-00 154.41 186.71 2000-01 165.85 216.67 2001-02 146.37 229.47 Source: Statistical Year Book of Bangladesh 2002, Bangladesh Bureau of Statistics Year

Table- 4.3 : Yearly production of Leather Sector by Different Enterprises/Firms

16


Firm Types

Total Production

Wet blue (000 sqf.)

35060

Crust (000 sqf.)

66172

Finished (000 sqf.)

134820

Leather Footwear (000 pairs)

16766

Leather Goods (000 pcs.)

766

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005 Table 4.4: Leather Production of the renowned Tanneries of Bangladesh: Name of the Organization Apex Tannery Bay Tannery SAF Industries Bata Shoe co (BD) ltd Bengal Leather Complex Dhaka Hide & Skins H&H /H.B Tannery Phoenix Leather Karim Leathers Lexco Ltd. Samina Tannery Riff Leather Modina Tannery Reliance Tannery B.S Leather Progoti Leather Complex Vulua Tannery Kalam Brothers Amin Tannery Anwer Tannery Cottege Customer

Annual Production Product (SFT/Month) Crust, Printed Bag, Semi Aniline, C\G 1700,000 Glaze Kid Crust, Resin Coat, Semi Aniline C\G, 600,000 Lining, Brush Off, Crust, Semi Aniline C\G, Glaze Mild, 600,000 Lining, C/G, Box Sandle, Semi Aniline, Creasy 400,000 Horse, Lining 500,000 Polishable Finish, Crust, Semi Aniline, 1400,000 Crust, Milled Bag, Repolisable, S/A Crust, Glaze Kid, C/G, Resin Goat, S/A, 500,000 Lining 400,000 Crust, C\G, S\A 500,000 Crust, S\A 200,000 C\G, S\A 500,000 Crust, S\A 200,000 Crust, C\G, S\A 150,000 Crust, S\A 600,000 Re polish able, Crust, 200,000 Re polish able, Crust, 500,000 Crust 600,000 Crust 300,000 Crust 200,000 Crust 200,000 Crust 1000,000 Crust, Repolishable, S/A

11250,000 SFT/MONTH Total Total Annual Production: 135,200,000 SFT/Year Total Crust Production = 101,400,000 SFT/Year Total Finish Production = 33,800,000 SFT/Year Source: Shajedul Alam, Internship Report, June 19, 2004, Institute of Business Administration, University of Dhaka;


247 Mio Sq.Ft Total: 63 Mio Sq.ft Goat & Sheep 184 Mio Sq.Ft. Cow & Buffalo Table4.5: Availability of Raw Materials

Source: Magazine, Dhaka International Leather Fair 2005 Table 4.6: Number of Animal Population in Bangladesh (thousand head) Types 1990 Bovine 24016 Animal Sheep and 873 Lambs Goats and 21031 Kids

1995

1996

1997

1998

1999

2000

2001

2002 (est.)

24859

24433

24816

24220

24480

24730

24830

24830

1070

1124

1158

1110

1121

1132

1143

1143

30330

33312

34478

33500

33800

34100

34400

34400

Source: FAO, 2003 Leather Export 5.01 Leather Export Performance of Bangladesh: The ever highest export performance was achieved in 2000-2001 due to the mad cow disease in EU but after 11 th September incident, the declining trend cannot be prevented due to the less value addition capability and non-sustainable nature of the leather sector industry of Bangladesh. The export performance of Bangladesh after 1999 is shown in table4.1. The Leather export is almost 2.5 percent to the total export of Bangladesh. Table 4.2 shows how the percentage of leather export to the total export is decreasing year after year. Table 5.1: Export performance: From July 1999

July 1999- June2000 July 2000- June2001 July 2001- June2002 July 2002- June2003 July 2003- June2004 July 2004- June2005 Export Target for July 2005- June2006

18

Leather (Mn. US$) 246.89 290.68 252.49 229.72 211.41 220.93 235.00

% Increase or Decrease +17.76% -13.13% -9.01% -7.97% +4.50%


Export Performance for July 84.37 2004-Nov 2005 Export Performance for July 96.21 +14.03% 2005-Nov 2006 Source: Export Promotion Bureau of Bangladesh.

Table 5.2: Percentage of the Leather Export to the Total export of Bangladesh: (Value in million dollar) Year Total Export Leather, Leather Leather, Leather Footwear and Leather Footwear and Leather Goods export Goods as % of Total Export 1998-99 5312.86 219.39 4.39 1999-2000 5752.20 246.89 4.30 2000-2001 6467.30 290.68 4.50 2001-2002 5986.09 252.49 4.22 2002-2003 229.72 2003-2004 7602.99 211.41 2.78 2004-2005 8654.52 220.93 2.55 2005-2006 10159.20* 235.00* 2.31 Source: Export Promotion Bureau of Bangladesh (EPB) *Export Target Hong Kong, Korea Rep., Italy, Japan are the main export destinations of the leather goods of Bangladesh. Though the Leather export performance of Bangladesh is decreasing day by day but still some countries like China, Taiwan, Vietnam are showing their interest to import more leather goods from Bangladesh. In comparison to India and Pakistan the export performance of Bangladesh shows a very uncomfortable figure. The main reason for that is the infrastructure of the sector. Although the RMG sector of Bangladesh is booming even after the post MFA era, foreign investors are not showing interests to invest in the leather sector of Bangladesh. Even the local investors are not interested to invest in leather sector, though there are lots of places Bangladeshi investors can invest easily. Table 5.3: Country Wise Export of leather and Leather Goods during the period of July2004 – March 2005: Value in ‘000’ US$ Country Export Argentina 5 Australia 279 Austria 2 Belgium 65 Benin 21 Brazil 745 Cambodia 426 Canada 35 China 6049 Czech Rep. 5 East Timor 13 El Salvador 50 Finland 1

Country India Indonesia Italy Japan Korea DPR. Korea Rep. Local Sale Mexico Myanmar Netherlands Norway Oman Pakistan

Export 1679 153 29791 10723 39 20151 540 1123 21 634 37 10 62

Country Saudi Arabia Singapore S. Africa Spain Sri Lanka Taiwan Thailand Turkey U.A.E U.K U.S.A Ukraine Uruguay

Export 2 137 243 5701 11 7953 742 8 23 1059 645 69 575


France Germany Greece Hong Kong Hungary Total

753 Philippines 166 Venezuela 189 Poland 3767 Vietnam 26 Portugal 51 54584 Qatar 6 4 Samoa 5 158621 Source: Foreign Trade Statistics of Bangladesh, 2001-2002

Table 5.4: Export of Leather, Leather Footwear and Leather Goods Year

Leather Export

% of Total

40 8681

Million US$ Total

Leather Footwear

Leather Goods

Export

Export

% of Total

4.59 3.58 3.12 3.87 3.43 3.64

2.09% 1.45% 1.07% 1.5% 1.5% 1.37%

1998-1999 168.25 76.69% 46.55 1999-2000 195.05 79.00% 48.26 2000-2001 253.93 87.36% 33.63 2001-2002 207.33 82.1% 41.29 2002-2003 191.23 83.2% 35.06 2003-2004 211.41 79.50% 50.86 Bangladesh Export Promotion Bureau

% of Total 21.22% 19.55% 11.57% 16.4% 15.3% 19.13%

219.39 246.89 290.68 252.49 229.72 265.91

5.02 Sales and Exports of Leather sector Enterprises/Firms Table show that during January-December 2003, the collective sales of the leather sector firms stood at Tk.23045 million. Of the total sales of the firms, over 75 percent are sold outside the country. Leather processing units exported most of their products that accounted for about 85 percent of their total sales revenue during 2003. Footwear manufacturing firms’ sales revenue from exports accounted for about 40 percent of their total revenue. Leather goods manufacturing firms exported its entire volume of production during 2003. Table 5.5 : Yearly Value of Sales and Exports by Types of Firms (Tk 000) Firm Types

Sales (Local)

Exports

Total Sales

Leather Processing

2847600

15622354

18429954

Leather Footwear

2456349

1682140

4138489

Leather Goods

0

437389

437389

Total

5303949

17741883

23005832

Note: Data for the period Jan.-Dec.2003. Table 5.6 : Yearly Value of Sales and Exports by Types of Firms (%) Firm Types

Sales (Local)

Exports

Total Sales

Leather Processing

15.42

84.58

100

Leather Footwear

59.35

40.65

100

20


Leather Goods

0

100

100

Total

23.01

76.99

100

Source: Leather Sector Census Study, LSBPC, 2005 5.2.1 Sales and Exports: Leather Processing Leather processing firms’ sales value stood at about Tk.18470 million during January-December, 2003 (Table 4.7). Exports revenue accounted for about 88 percent from the crust leather and over 97 percent from the finished leather produced by the leather processing enterprises. Except for an insignificant volume, most wet-blue leather is locally used for the production of crust/finished leather. The survey data show that as a whole about 85 percent products of the leather processing firms are exported and total export value stood at Tk. 15622 million (during January-December 2003).

Table5.7 : Annual Volume of Sales and Exports by the Leather Processing Firms (in 000 sqf.) Product Category

Local Sales Direct

Through Agent

Total Local Sales

Total Exports

Total Sales Volume in sf.

Wet Blue

35060

0

35060

0

35060

Crust

5281

3400

8681

57491

66172

Finished

4814

0

4814

130006

134820

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005 Table 5.8: Yearly Sales and Exports by the Leather Processing Enterprises/Firms (Tk000) Products category

Local Sales Direct

Through Agent

Total Local Sales

Total Exports

Total Sales Volume (in Tk. 000)

Wet Blue

1959300

0

1959300

0

1959300

Crust

318850

220000

538850

4141826

4680676

Finished

349450

0

349450

11440528

11789978

Total

2627600

220000

2847600

15622354

18429954

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005


Table 5.9: Annual Value of Sales by the Leather Processing Enterprises/Firms (%) Products Local Sales Total Total category Local Sales Exports Direct Through Agent

Total value

Wet Blue Crust Finished Total

100 100 100 100

100.0 6.81 4.58 18.36

0 100.0 0 4.70 11.51 88.49 0 2.96 97.04 1.54 84.58 15.42 Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005

Sales

5.2.2 Sales and Exports: Footwear Still over 50 percent of the footwear manufacturing enterprises’ production is locally consumed. Total local sales stood at Tk.2456 million for the period January-December 2003. Export sales of the footwear firms for the period were Tk.1682 million. Table 5.10: Yearly Sales and Exports by the Leather Footwear Enterprises/Firms Local Sales Direct Volume (pair) Value in Tk.’000 Note: Data for the period Jan.-Dec.2003.

22

843550 0 245634 9

Throug h Agent 0 0

Total Local Sales

Total Exports

843550 0 245634 9

830975 0 168214 0

Total Sales 16745250 4138489


Table5.11: Annual Sales and Exports by the Leather Footwear Firms (%) Local Sales

Total Local Sales

Total Exports

Total Sales

0

50.38

49.62

100

0

59.35

40.65

100

Direct

Through Agent

Volume (pair)

50.38

Value in Tk.’000

63.39

Source: Leather Sector Census Study, LSBPC, 2005 5.2.3 Sales and Exports: Leather Goods All leather goods manufacturing firms (covered under census) are export oriented. Their total sales volume, which is same as their exports, stood at Tk.437 million during the period January-December 2003. Table5.12- Yearly Sales and Exports by the Leather Goods Enterprises Local Sales

Total Local Sales

Total Exports

Total Sales

0

0

764100

764100

0

0

437389

437389

Direct

Through Agent

Volume (pcs)

0

Value in Tk.’000

0

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005 Table 4.3 showed the country wise export figure of Bangladesh and the Table 4.13 shows how country wise export figure changed during 2000-2003 to 2003-2004. Table 5.13: Country wise changes in Export of Leather: (Value in `000’ US$) 2002-2003 Countries Value Hongkong Italy Koria Rep. Japan Taiwan Vietnam Spain China Mexico UK France USA

69039 38621 13736 15029 11556 4928 6821 5932 2027 1507 1779 983

2003-2004 % of Total

Value

% of Total

36.10 20.20 7.18 7.86 6.04 2.58 3.57 3.10 1.06 0.79 0.93 0.51

72026 43601 19779 15188 11850 11500 9709 7655 2160 1228 1106 631

34.06 20.62 9.36 7.18 5.61 5.44 4.59 3.62 1.02 0.58 0.52 0.30


Germany 818 Others 18450 Total 191226 Source: EPB Export Statistics

0.43 9.65 100.00

549 14430 211412

0.26 6.84 100.00

Table 5.14: Company wise Export of Leather Goods & Footwear from Bangladesh (Export Period: 01/01/2005 ~ 24/11/2005) Name of the Company Legacy Footwear Ltd. Jennys Shoes Ltd. Picard Bangladesh Ltd. Leatherex Footwear Ltd. H.N Shoes Ltd. Cosmic Jute & Leather Ind. Ltd. Shampan Shoes Ltd. Savar Ind. Pvt. Ltd. Bangladesh Export Ltd. Landmark Footwear Ltd. Vannara Corporation Ltd. RMM Leather Ind. Ltd. Apex Leather Craft Fashion Bani Footex Bay Footwear Advanced Ind. Management Co. Ltd. Malim BD. Co. Ltd. MAMC Surma Leather & Footwear Ind. Ltd. Sonali Ansh Ind. Ltd. Apex Footwear Ltd. Legacy Footwear Ltd. Hara Leather Rexus Leather Club Crown Leather Products Ltd. Creative Products Anowara Leather Tropical Shoes Ltd.

24

Value in US$ 5508573.5 3775499.81 3130611.97 1631819.61 1054264.91 884406.75 771231.60 507352.22 432373.06 221137.63 219053.3 164923.28 149779.03 131864.3 131660 103890.61 85356.65 84174.50 74735.5 68737.68 63310 61119.88 46843 40270 29219 27365 14520 7560


Source: Leather goods & Manufacturers & Exporters Association of Bangladesh. Raw Materials 6.1 Raw Materials used by the Leather Firms From the survey data it is transpires that raw materials used by the leather sector firms are procured mainly from local market. Except for an insignificant proportion, almost all raw materials of wet blue i.e. raw hides are collected from the local sources. Raw materials for crust leather and finished leather are wet-blue and crust respectively. About 99 percent of the raw materials of wet blue, crust and finished leather are sourced locally. Of the broad categories of leather firms, footwear sector used highest proportion of raw materials (includes finished leather, lining leather sole, etc.) from external sources, which is 3.13 percent of the total used by the sector. Table 6.1 -: Yearly Raw Materials used in the Leather Sector to produce different types of product (in Tk.000) Types of Product

Name of materials

Wet blue

Raw

Local

Foreign

Total

Raw hides

1276262

5040

1281302

Crust

Wet blue

2756629

41300

2786474

Finished

Crust

7428519

34000

7462519

38236

1184635

0

90466

Finished, lining 1146399 leather, Sole etc. Finished & lining Leather Goods 90466 leather Source: Leather Sector Census Study, LSBPC, 2005 Footwear

Table 6.2 -: Yearly Raw Materials used in the Leather sector by types (%)


Types

Name of Raw materials

Local

Foreign

Total

Wet blue

Raw hides

99.60

0.40

100

Crust

Wet blue

98.93

1.07

100

Finished

Crust

99.54

0.46

100

Footwear

Finished, Sole etc.

96.77

3.23

100

Leather Goods

Finished & lining leather

100

0

100

lining leather,

Source: Leather Sector Census Study, LSBPC, 2005 6.2 Raw Materials: Leather Processing Leather processing units or tanneries produce wet-blue, crust, and finished leather. In producing wetblue and crust, the firms use raw hides and wet-blue as raw materials respectively. Crust leather is used as raw materials for producing finished leather. 6.2.1 Raw Materials for Wet Blue Raw hides used for producing wet-blue are mainly procured from local sources. Locally, raw hides are collected mainly from leather depot located at Dhaka, Chittagong, Comilla, Kustia, Natore and Rangpur. Only an insignificant volume of camel hide is imported from external sources. South Africa was the only source of camel hide imports in 2003. Table 6.3 : Yearly Raw Materials used for Producing Wet Blue Local

Foreign

Total

Hide and Skin

Quantity (000pcs)

Value Tk.000

Cow

856

1074032

0

0

856

1074032

Buffalo

107

88835

0

0

107

88835

Goat

1035

97495

0

0

1035

97495

Sheep

115

12034

0

0

115

12034

Cow/Buffalo head 41

3866

0

0

41

3866

Camel

0

0

4

5040

4

5040

Total

2154

1276262

4

5040

2158

1281302

inQuantity (pcs)

Value Tk.000

in Quantity (000pcs)

Source: Leather Sector Census Study, LSBPC, 2005 Table 6.4 : Yearly Raw Materials used for Producing Wet Blue (%) Raw materials forLocal Value Wet blue (%) Cow 100 Buffalo 100

26

Foreign Value (%) 0 0

Total Value (%) 100 100

Total Value Tk.000


Goat Sheep Cow/Buffalo head Camel Total

100 100 100 0 99.60

0 100 0 100 0 100 100 100 0.40 100 Source: Leather Sector Census Study, LSBPC, 2005

6.2.2 Raw Materials for Crust Wet blue, raw materials for producing crust is mainly collected from local sources particularly from Dhaka. A small quantity of wet-blue to prepare crust leather is collected from Chttagong and Jessor. Very insignificant volume of raw materials is imported. In 2003, only about 1.5 percent of total raw materials (wet blue cow and camel) was imported from South Africa, Australia, and Brazil .

Table 6.5 : Yearly Raw Materials used for Producing Crust Leather Local Raw materials forQuantity crust (000sqf)

Foreign Value Tk.000

Cow

23358

1524583

Buffalo

11210

Goat

Total

inQuantity (000 sqf)

Value Tk.000

inQuantity (000sqf)

Total Value Tk.000

530

33300

23888

1557884

447936

0

0

11210

444480

11016

603330

0

0

11016

603330

Sheep

1848

161580

0

0

1848

161580

Others

240

19200

0

0

240

19200

Camel

0

0

100

8000

100

8000

Total

47672

2756629

630

41300

48302

2786474

Source: Leather Sector Census Study, LSBPC, 2005 Table 6.6: Yearly Raw Materials used for Producing Crust (%) Raw materials forLocal Value crust (%)

Foreign Value (%)

Total Value (%)

Cow

97.86

2.14

100

Buffalo

100

0

100

Goat

100

0

100

Sheep

100

0

100

Others

100

0

100

Camel

0

100

100

Total

98.52

1.48

100


6.2.3 Raw Materials for Finished Leather Crust leather used for producing finished leather is also collected mainly from local sources. Only a very insignificant volume of cow crust is imported to produce finished leather. In 2003, cow crust was imported from Australia valued Tk.34 million. Table 6.7 : Yearly Raw Materials used for Producing Finished Leather Local Raw materials for Quantity finished (000sqf)

Foreign Value Tk.000

Cow Crust

55488

4396440

Buffalo Crust

8822

Goat Crust

inQuantity (000 sqf)

Total Value Tk.000

inQuantity (000sqf)

Total Value Tk.000

400

34000

55888

4396840

494124

0

0

8822

494124

23019

1979055

0

0

23019

1979055

Sheep Crust

5412

558900

0

0

5412

558900

Total

92741

7428519

400

34000

93141

7462519

Source: Leather Sector Census Study, LSBPC, 2005

Table 6.8 : Yearly Raw Materials used for Finished Leather (%) Raw materials Local Value Foreign Value for finished (%) (%)

Total Value (%)

Cow Crust

99.23

0.77

100

Buffalo Crust

100

100

100

Goat Crust

100

100

100

Sheep Crust

100

0

100

Total

99.55

0.45

100

6.2.4 Raw Materials: Footwear Other than finished leather, some other raw materials as lining leather, artificial sole, insole-leather etc. are used in producing footwear by the footwear-manufacturing firms. Footwear manufacturing units imports comparatively greater volume of raw materials (as compared to leather processing and leather footwear sector) from external sources. Footwear manufacturing units imported over 3 percent of their total raw materials amounted to about Tk. 38 million during January to December 2003. Sources for local raw materials are mainly Dhaka and Chittagong. Of the external sources, finished leather is mainly collected from Pakistan and China. Artificial sole is imported mainly from India, Indonesia, China and Taiwan, and lining leather is collected mainly from China, Taiwan and Pakistan. China, India and Italy are the major sources of in-sole leather. Some footwear raw materials are also imported from Canada, France and Germany.

28


Table 6.9: Yearly Raw Materials used for Producing Footwear Foreign rawLocal forQuantity sqf.Value in Tk.Quantity 000 000 sqf. 000

Name of materials footwear

Total Value in Tk. 000

Total quantity

Total value Tk. 000

Finished Leather

9932

823434

225

25350

10157

848784

Lining Leather

2944

134023

506

8960

3450

142983

Artificial Sole

1806

155317

855

3266

2661

158583

In-sole Leather

639

33063

45

660

684

33723

Others

7

562

0

0

7

562

Total

15328

1146399

1631

38236

16959

1184635

Table6.10: Raw Materials used for Footwear (%) Raw materials Footwear

for Local Value (%)

Foreign Value (%)

Total Value (%)

Finished Leather

97.01

2.99

100

Lining Leather

93.73

6.27

100

Artificial Sole

97.94

2.06

100

In-sole Leather

98.04

1.96

100

Others

100

0

100

Total

96.77

3.23

100

Source: Leather Sector Census Study, LSBPC, 2005 6.2.5 Raw Materials: Leather Goods The leather goods producing firms that are very few in number use basically finished leather and lining leather as raw materials. The value of the raw materials used by the leather goods manufacturing units constitute less than 8 percent of the raw materials used by the footwear manufacturing units. All of the raw materials of the leather goods manufacturing firms are collected from local sources. Table 6.11: Yearly Raw Materials used for Producing Leather Goods Local Raw materials Quantity for crust (000sqf)

Value Tk.000

Finished Leather 1365

87366

Lining Leather 50 Total

1415

Foreign inQuantity (000 sqf)

Total Value inQuantity Tk.000 (000sqf)

Total Value Tk.000

0

0

1365

87366

3100

0

0

50

3100

90466

0

0

1415

90466


Source: Leather Sector Census Study, LSBPC, 2005 6.3 Availability of raw material in Bangladesh Table 6.12 Cow/Buffalo/Calf Goat/Sheep

Total Number (Head) 24.31 million 32.70 million

Hides & Skins (piece) 5.31 million 19.70 million

Hides & Skins (Sq.ft) 116.00 million 64.00 million

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO Table6.13 Availability of raw material (Division wise) (Piece) Cow/Buffalo/Calf Goat/Sheep

Dhaka 13,78,700 39,40,000

Chittagong 12,60,500 43,37,000

Rajshahi 15,90,800 55,16,000

Khulna 10,72,700 59,07,000

Total 53,02,700 1,97,00,000

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO Chapter-Seven SWOT Analysis 7.1 Strengths 7.1.1 Strengths of the Firms: Leather Processing The SWOT analysis is based on the opinions of the leather sector firms. The survey reveals that ‘higher productive capacity’ is the main strength of the maximum number of firms of the leather processing industry. Main strengths of the leather processing industry as identified by the leather processing firms in the survey are as follows: Table 7.1: Strengths of the Leather Processing Firm Strengths

Percent of Total Firms

Production capacity

70%

Competitive price

67%

Cheap Labour

66%

Market Information

56%

Better management

54%

Figure: 7.1 Strengths of the Leather Processing Firms With high installed capacity and better utilization of that capacity, firms can economize on the costs and offer competitive price. It is recognized that the element of competitive price is related to productivity and cost of production. Hence firms with better productive capacity can offer better price to their clients. Generally, productivity of the big firms is expected to be higher than that of smaller firms with low productive capacity. Availability of cheap labour is another common advantage in the

30


leather processing. This sector is relatively more labour-intensive than other two sectors (footwear and leather goods). 7.1.2 Strengths of the Firms: Leather Footwear As is leather-processing industry, ‘higher productive capacity’ is the main strength of the maximum number of firms operating in the footwear industry. The major strengths of the firms as identified in the survey (as opined by the firms) are as follows:

Table 7.2: Strengths of the Leather Footwear Firm Strengths

Percent of Total Firms

Production capacity

74%

Better quality of management

66%

Sufficient supply of processed leather

65%

Trained manpower

60%

Quality Control

58%

Figure: 7.2 Strengths of the Leather Footwear Manufacturers Footwear firms appear to have emphasis on the quality of management of the firms. Adequate supply of processed leather (from the leather processing firms) is the third most important factors that determine the strength of the footwear firms. Quality control appears to have provided competitive advantages to a good number of firms. 7.1.3 Strengths of the Firms: Leather Goods Better management quality, and quality control came up as the main strengths of the leather goods producing firms. A list of major strengths of the footwear manufacturing firms as identified in the survey (as opined by the firms) are presented in table 7.3. Table 7.3: Strengths of the Leather Goods Firm Strengths

Percent of Total Firms

Better management Quality

71%

Quality control

69%

Sound environmental management

64%

Market information

60%

Production Capacity

48%

Figure: 7.3 Strengths of the Leather Goods Manufacturers


As in case of footwear, leather goods manufacturing firms also appear to put considerable emphasis on better management quality and quality control. Environmental management and market information have also been identified by considerable percentages of firms as may be expected from a hundred percent export oriented industry. 7.2 Weaknesses 7.2.1 Weaknesses of the Firms: Leather Processing Size of the firms and financial crisis are found to be the main weaknesses of the firms operating in the leather processing industry. The major weaknesses of the firms as identified in the survey (as opined by the firms) are as follows:

32


Table 7.4: Weaknesses of the Leather Processing Firm Weaknesses

Percent of Total Firms

Low Volume of Production

82%

Financial Crisis

80%

Weak Marketing

64%

Inefficient Management

46%

Figure: 7.4 Weaknesses of the Leather Processing Firms In global context the smaller leather processing firms produce lower quantity that precludes them in attaining economies of scale. Generally, leather-processing firms face financial difficulty and have no marketing strategy. Of the leather processing firms, 46 percent identified inefficient management as one of their main weaknesses. 7.2.2 Weaknesses of the Firms: Leather Footwear ‘Financial Crisis’ is found to be the main weakness of the leather footwear industry. The major weaknesses of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.5: Weaknesses of the Footwear Firm Weaknesses

Percent of Total Firms

Financial Crisis

92%

Weak Marketing

86%

Low Volume of Production

84%

Uncompetitive Product Price

80%

Figure: 7.5 Weaknesses of the Leather Footwear Manufacturers Generally, footwear firms face financial difficulty and lack effective marketing strategy. Size of the firms in global context is smaller which is a notable obstacle in achieving economies of scale and offering competitive price. 7.2.3 Weaknesses of the Firms: Leather Goods In line with leather footwear, ‘financial Crisis’ is found to be the main weakness of the leather goods manufacturing industry. The major weaknesses of the leather goods firms as identified in the survey (as opined by the firms) are as follows:


Table 7.6: Weaknesses of the Leather Goods Manufacturing Firm Weaknesses

Percent of Total Firms

Financial Crisis

88%

Weak Marketing

87%

Low Volume of Production

87%

Uncompetitive Product Price

74%

Figure: 7.6 Weaknesses of the Leather Goods Manufacturers About 90 percent leather-goods manufacturing firms have identified ‘financial difficulty’ as their one of the major weakness. The firms also lack effective marketing strategy. Size of the leather goods firms in global context is smaller which is a notable obstacle in achieving economies of scale and offering competitive price. 7.3 Opportunities 7.3.1 Opportunities of the Firms: Leather Processing ‘Cheap Supply of Labour’ is found to be the main aspect the opportunities the leather processing firms enjoy. The major aspects of opportunities of the leather processing firms as identified in the survey (as opined by the firms) are as follows: Table 7.7: Opportunities of the Leather Processing Industry Opportunities

Percent of Total Firms

Cheap Supply of Labour

82%

Sufficient Supply of Hide and Skin

64%

Stable Global Demand

62%

Favourable Business Environment

60%

Conducive Industrial Policy

58%

Figure: 7.7 Opportunities of the Leather Processing Firms It is obvious that availability of cheap labour can provide considerable cost advantage to the firms of a particular area/location. Leather Processing firms located in Bangladesh have been availing the opportunity. Supply of raw materials, global demand of the footwear, and business environment are also found to be positive from the firms’ point of view. 7.3.2 Opportunities of the Firms: Leather Footwear

34


‘Stable glocal demand’ is found to be the main aspect of the opportunities the footwear firms currently have. The major aspects of opportunities of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.8: Opportunities of the Footwear Industry Opportunities

Percent of Total Firms

Stable Global Demand

60%

Conducive Industrial Policy

58%

Favourable Business Environment

57%

Cheap Supply of Labour

51%

Duty Free Access in Major Markets

51%

Figure: 7.8 Opportunities of the Leather Footwear Manufacturers The footwear firms found the current stable global demand condition for the Bangladeshi footwear is a major aspect of opportunity on the way towards expanding export markets for footwear. The industrial policy and business environment are found to be positive for them and availability of cheap labour is an added advantage. 7.3.3 Opportunities of the Firms: Leather Goods The ‘Industrial Policy’ is found to be positive for the leather goods manufacturing firms. The major aspects of opportunities of the leather-goods firms as identified in the survey (as opined by the firms) are as follows: Table 7.9: Opportunities of the Leather Goods Industry Opportunities Conducive Industrial Policy

Percent of Total Firms 66%

Favourable Business Environment

60%

Cheap Supply of Labour

58%

Stable Global Demand

58%

Duty Free Access in Major Markets

51%

Figure: 7.9 Opportunities of the Leather Goods Manufacturers The industrial policy and business environment, and cheap supply of labour are found to be advantageous for the leather goods manufacturing industry, as opined by most firms of the industry. Current global demand condition appeared to be favourable for these firms. 7.4 Threats


7.4.1 Threats to the Firms: Leather Processing ‘Disruption of electricity’ is found to be the main aspect of threat to the leather processing firms of Bangladesh. The major aspects of threats of the leather processing firms as identified in the survey (as opined by the firms) are as follows: Table 7.10: Threats for the Leather Processing Industry Threats Disruption of Electricity

Percent of Total Firms 74%

Hartals, strike, and other disturbances

72%

Unstable Policy Environment

68%

External Competition

64%

Lack of Trained Labour

62%

Environment consciousness in Importing Countries

60%

Shortage of Water Supply

58%

Figure: 7.10 Threats of the Leather Processing Firms Practically, ‘disruption of electricity’ and ‘hartal strike etc.’ are very common aspects of threats facing by the industry sector of the country in general. Inadequate infrastructural facilities like insufficient supply of electricity and shortage of water supply affect optimum capacity utilization, volume of production, and destroy cost advantage. Such problem is particularly threatening in an atmosphere of growing global competition. Moreover, environment consciousness in importing countries mainly in the developed world is the cause of concern for the exporting countries like Bangladesh where environmental issues are not strongly addressed both in firm and policy level. Moreover, Firms also do not get sufficient trained people. 7.4.2 Threats to the Firms: Leather Footwear As in leather processing sector, ‘disruption of electricity’ is found to be the main aspect of threat to the footwear firms of Bangladesh. The major aspects of threats of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.11: Threats for the Footwear Industry Threats

36

Percent of Total Firms


Disruption of Electricity

74%

Hartals, strike, and other disturbances

68%

External Competition

68%

Environment consciousness in Importing Countries

60%

Shortage of Water Supply

58%

Figure: 7.11 Threats of the Leather Footwear Manufacturers

Inadequate infrastructure facilities like insufficient supply of electricity and shortage of water supply are among the major causes of concern for the footwear firms. Growing external competition and environment consciousness in the importing countries may affect the export market of the footwear firms in coming days. 7.4.3 Threats to the Firms: Leather Goods In line with the leather processing and footwear sectors, ‘disruption of electricity’ is found to be the main aspect of threat to the leather goods manufacturing firms of Bangladesh. The major aspects of threats of the leather goods manufacturing firms as identified in the survey (as opined by the firms) are as follows: Table 7.12: Threats for the Footwear Industry Threats Disruption of Electricity

Percent of Total Firms 74%

Lack of Trained Labour

64%

External Competition

62%

Hartals, strike, and other disturbances Environment consciousness in Importing Countries

60% 58%

Figure: 7.12 Threats of the Leather Goods Manufacturers Other than inadequate supply of electricity, leather goods manufacturing firms face lack of trained labour force to be employed. Growing external competition and environment consciousness in the importing countries may affect the hundred percent export-oriented leather goods sector of the country in near future.


Production Stages 8.1 Production Stages in Leather Processing Industry

Finished Crust Leather (Natural /dyed) Sorting Buffing & Dedusting Impregnation & Drying Hydraulic Pressing Rebuffing & Dedusting Color Coating (By pad/spray Roller coater) Drying Ironing/Embossing Color Coating (By Sprayer & drying)

Plating/Glazing

38


Finished Crust Wet blue Leather Splitting Shaving Shaved weighing Neutralization Retaining/ Dyeing Fat liquoring (in drum) Setting Drying (Vacuum/ Tunnel/Natural) Conditioning (By sawdust/ water)

Staking

Toggle Drying

Trimming

Crust

Samming

Wet Blue Raw/wet salted Hides & Skins (Sorted & Trimmed) Raw/Salted Weighing Washing & Soaking (in drum/ paddle/pit) Liming (In drum/


/paddle/pit) Fleshing

Pelt Weighing

Deliming (in drum) Bating (in drum)

Pickling (in drum)

Tanning (in drum)

Wet Blue Scudding

40


8.2 Production Stages in Footwear and Leather Goods Industries

Footwear

Leather Goods

Designing

Designing

Pattern Making

Pattern Making of Leather Goods

Designing of Footwear

Cutting

Cutting

1. Selection of Leather/Materials

1. Selection of Leather/Materials

2. Cutting

2. Cutting

3. Splitting

3. Splitting

4. Skiving

Closing

4. Skiving

Closing

1. Embossing/ Printing

1. Embossing/ Printing

2. Adhesive

2. Adhesive

3. Folding

3. Folding

4. Strap cutting

4. Strap cutting

Finishing

Finishing

Total Finishing Work

Total Finishing Work


8.3 Description of the various Stages of Leather Processing:

Footwear

Section: Name of operation

Objectives

Curing/ Preservation Soaking

Dehydration

Liming Unhairing

Washing liming Fleshing

Deliming

8.3.1Wet-Blue

Restore Moisture to original condition

Generic names of Chemicals Required chemicals Soaking Preservatives / Enzymes

and Removing the hair and Liming Auxiliaries opening up of fibre structure for tannage after Cleaning for fleshing and start delime by thorough washing Removing fat and surplus flesh to give a Cleaner surface for better penetration of the subsequent chemicals Replacing strong alkali, Deliming agents Reducing Swelling

Bating

Producing a smooth, clean Bating Agents grain by enzyme action, removing unwanted proteins

Pickling

Prepaing pelt for chrome tanning by acidification

Name of operation

Objectives

Chrome Tanning

Leather Goods

Pickling Agents

Sodium sulfide, sodium hydroxide, sodium tetra sulfide Decaltal types, formic acid, bi sulfite solution, sodium bi sulfite. Sodium sulfide, Sodium hydrosulfide. Hydrated lime powder (calcium hydroxide). Seldom slaked lime (lime paste). Sodium chlorite

Hydrochloric acid, Sulfuric acid, Formic acid, acetic acid, Lactic acid, Boric acid, Ammonium chloride, Sodium meta by sulphate Enzymes, wood flour as carrier substance, ammonium salts, neutral salts as buffering and deliming agents Formic Acid

Generic names of Chemicals Required chemicals Making Leather resistant to Tanning Agents Chrome Tanning Agents, purification, Increasing (chromium(III) salt, ca. Thermal Stability 25 % Cr2O3, ca. 33 % basicity), Aluminium tanning agent( ca. 16 % Al2O3, ca. 50 % basicity.) Combination of Al and Cr ( Ca. 14 % Al2O3, ca. 3.0 % Cr2O3; ca. 20 % basicity.) Other agents: Chromium (acelate, Sulphate, chloride) potassium dichromate etc.


Sammying

To remove the unbound water so that the hide can be split or shaved with an even or consistent moisture content Splitting To reduce thickness and separate splitting part Shaving The final adjustment for thickness Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF 8.3.2 Crust Section: Name of operation Neutralization

Retanning Dyeing Fat liquoring

Objectives

Generic names of Chemicals Required chemicals Preparing Tanned leather for Neutralizing Agents Sodium Carbonate, Borax retannage Sodium Bicarbonate, Ammonium Bicarbonate, Sodium (Sulphite, Thiosulphate, acetate, formate), Calcium Formate etc. Using suitable chemicals for Retanning Agents Phenol, Nepthalane, Bthe final product requirement Napthole, Aromatic Ether To impart requisite colour on Dyes leather To soften the leather Fat Liquoring Agents Untreated oils, fats and waxes Emulsified oils and fats Chlorinated oils and fats Sulfonated oils, fats and fatty alcohols, Oxidation products of oils and fats

Name of operation

Objectives

Setting Out

Removing wrinkles as much as possible and mechanically held water before drying Removal of water without damaging Leather quality Controlled addition of moisture Soften by separating the fibres Complete the drying under streching condition Removal of irregular edges, damaged portion

Drying Conditioning Staking/Vibration Toggle Drying Trimming

Generic names of Chemicals Required chemicals


8.3.3 Finishing Section: Name of operation Sorting

Objectives To examine Quality and select different grades for end products Up gradation of lower grade leather through shaping/ buffing of grain surface Producing the finished film Providing suitable base for better adhesion and makes the leather surface smooth, uniform and impermeable Covering the major proportion of the film thickness and getting skewed between ground and top layer, Sealing from both sides by impermeable ground and top layer Providing required degree of gloss, feel handle and final appearance of the finished leather Providing smooth or embossed/ printed surface with ironing/ plating Mechanically softenning of the semifinised leather Examine quality and allocate each finished piece of grade

Buffing Finishing a.

Ground Coat

b.

Season Coat

c.

Top Coat

Pressing Milling Final Gradation Measuring

Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF LEATHER CHEMICALS & ACCESSORIES 9.0 Chemicals and Accessories: Leather Sector A number of chemicals are used in the leather processing, footwear manufacturing and leather goods manufacturing units most of which are foreign chemicals. In terms of value, above 87 percent chemicals used by the leather sector firms are of foreign origin. Above 95percent (of the total value) of the chemicals used in the productions of crust and finished leather are foreign. Over 70percent (of the total value) of the chemicals used by the footwear manufacturing are foreign made. Data collected from the secondary sources show that leather goods manufacturing units depend mainly on local chemicals (Table *.2).

Table 9.1: Yearly value of Chemicals used by the Leather Sector Firms (by sources) Production type

Local Value in Tk.000

Foreign Value in Tk.000

Total, Value in Tk.000

Wet-Blue

20,685

63,938

84,623

Crust Leather

2322

116720

119042

Finished Leather

1679

44791

46469

Footwear

12660

42609

55269

Leather Goods

1636

18

1654

Total

38982

268076

307058


Source: Leather Sector Census Study, LSBPC, 2005 Table 9.2: Distribution of Chemicals used by the firms of the Leather Sector (%) Production type

Local Value

Foreign Value

Total Value

Wet-Blue

24.44

75.56

100

Crust Leather

1.95

98.05

100

Finished Leather

3.61

96.39

100

Footwear

29.70

70.30

100

Leather Goods

90.0

10.0

100

Total

19.20

80.80

100


Table 9.3: Yearly Value of Accessories used by the Footwear and Leather Goods Manufacturing Units (by sources) Local

Foreign

Value in Value % Value in Value% Tk.000 of Total Tk.000 of Total

Total Value in Value% Tk.000 of Total

Footwear

73961

80.76

17616

19.24

91577

100

Leather Goods

237

27.40

628

72.60

865

100

Total

74198

80.30

18244

19.70

92442

100

Types Production

of

Source: Leather Sector Census Study, LSBPC, 2005 Most accessories used by the footwear and leather goods manufacturing enterprises are locally made. As a whole, about 20 percent of the accessories used in the production of footwear and leather goods are foreign made. About 81 percent (of the total value) accessories used by the footwearmanufacturing units are local accessories. 9.1 Chemicals: Leather Processing 9.1.1 Leather Processing: Wet-Blue Secondary data show that over 75 percent (of total values) of the chemicals used for the production of wet-blue by the tanneries are foreign-made. There are chemicals that are supplied by both local and foreign sources like sodium chloride, sodium carbonate, ammonium sulphate, sulphuric Acid, Bating Agent etc. However, some chemicals like enzymatic soaking agent, sodium formate, masking agent etc. are exclusively supplied from external sources (Table 9.4). In 2003, major suppliers of the chemicals were Germany, China, Italy and UK .

Table 9.4: Yearly Value of Chemicals used for the Production of Wet-Blue

Local

Foreign

Name of Chemicals

Quantity (MT)

(Value Tk.000)

Sodium chloride

1630.84

13,642

Soaking Agent

72.835

in Quantity (MT)

Total (Value in Quantity Tk.000) (MT)

(Value Tk.000)

4

86

1634.84

13,728

2,770

17.8

1,021

90.135

3,791

Enzymatic Soaking Agent

-

15.54

2,359

15.54

2,359

Sodium Sulphide

-

-

228.65

4,880

228.65

4,880

Lime Auxiliaries

16.8

690

72.015

6,509

87.715

7,199

Bactericide

-

-

13.825

482

13.825

482

Ammonium

1

-

46.745

1,149

47.745

1,149

in


Chloride Sodium Carbonate

0.55

161

44.17

984

44.72

1,145

Oxalic Acid

-

-

14.18

658

14.18

658

Sodium Formate

-

-

48.23

1,387

48.23

1,387

Magnesium Oxide

-

-

27.915

3,926

27.915

3,926

Ammonium Sulphate/Dolomite

138

1,518

18.86

534

156.86

2,053

Bating Agent

13.13

181

53.59

3,343

62.02

3,524

Sulphuric Acid

74.46

1,342

8.41

301

82.87

1,643

Formic Acid

5.77

168

73.55

4,123

78.55

4,291

2.1

89

512.92

24,572

513.02

24,661

Sodium Bicarbonate

0.65

11

54.12

1,789

54.77

1,799

Masking Agent

-

-

6.96

1,129

6.96

1,129

Preservative

0.125

113

6.96

4,706

6.79

4,819

Total

1956.26

20,685

1274.47

63,938

3202.38

84,623

Basic powder

Chrome

Source: Leather Sector Census Study, LSBPC, 2005 9.1.2 Leather Processing: Crust Leather As the survey data show over 98 percent of the chemicals used for the production of crust leather (from wet-blue) are foreign made. Other than a few chemicals like basic chroming sulphat, phenolic syntan etc. generally chemicals have both local and foreign suppliers. However, very insignificant volumes of local chemicals are used as compared to the foreign chemicals. Foreign chemicals used are mainly made in Germany, UK, Holland, and Italy .

Table 9.5: Yearly Value of Chemicals used for the Production of Crust Leather Local Name of Chemicals

Quantity (MT)

Foreign (Value Tk.000)

in Quantity (MT)

Total (Value in Quantity Tk.000) (MT)

(Value Tk.000)

Basic Chroming Sulphate

0

79.46

3564

79.46

3564

Sodium Formate

0.75

21

47

1233

47.75

1254

Na-EDTA

1

94

2.36

217

3.36

311

Acrylic syntan

2

176

83.28

9022

85.28

9198

Phenolic syntan

-

0

57.50

7891

57.50

7890

Melamine syntan

2

212

72.16

8601

74.16

8813

1.8

225

82.97

9222

84.77

9447

/Urea

Replacement syntan

in


Vegetable extracts

2.5

188

130.89

8742

133.39

8930

Dyestuffs

1.4

770

54.22

31506

55.52

32275

Fat Liquors

3.5

473

196

26408

199.5

26880

Formic Acid/Acetic 1 acid

51

58.54

31667

59.54

3217

Dye Auxiliaries

-

0

12.69

2559

12.69

2559

Preservative

0.13

113

5.1

3633

5.23

3745

Aldhyde Tannin

-

0

3.68

956

3.68

956

Total

16.07

2322

885.86

116720

901.84

119041

Source: Leather Sector Census Study, LSBPC, 2005 Leather Processing: Finished Leather

9.1.3

Over 95 percent (of the total value) of the chemicals used in the production of finished leather (from crust) are foreign-made. Except for a few, almost all chemicals have domestic suppliers, however, uses of local-made chemicals are very limited. Most of the chemicals used to produce finished leather are made mainly in Germany, Italy, UK, and Holland. Table 9.6: Yearly Value of Chemicals used for the Production of Finished Leather Local

Foreign

Name of Chemicals

Quantity (MT)

(Value Tk.000)

Acrylic binder

0.75

37

Butadyne binder

0.8

Protein Binder

(Value in Quantity Tk.000) (MT)

(Value Tk.000)

10.33

3296

11.08

3334

40

1.75

495

2.55

535

0.8

50

14.83

3867

15.63

3917

Wax emulsion

0.3

81

7.97

3081

8.27

3162

Penetretor

0.17

15

14.34

3958

14.51

3973

Nitrocellulose binder 4.16

1172

13.29

4712

17.45

5884

Poly binder

0.75

52

14.70

4778

15.46

4830

Dye liquid

0.1

100

8.67

7312

8.77

7412

Filler

0.35

20

4.13

1222

4.49

1242

Pigments

1.4

60

12.54

3083

13.94

3143

Acetic Acid

0.05

2

2.47

170

2.52

172

Matting Agent

0.13

17

3.69

1498

3.81

1515

Film Modifier

0.05

20

4.08

3906

4.14

3926

Pull-up Wax

-

0

2.44

949

2.44

949

Pullup oils

-

0

4.02

1450

4.02

1450

Eurathane

in Quantity (MT)

Total in


Cross linkers

0.02

10

0.355

900

.37

910

Solvent

-

0

0.35

105

.35

105

Formal dehyde

-

0

0.05

3

.05

3

Total

9.83

1678

120

44790

129.83

46468

Source: Leather Sector Census Study, LSBPC, 2005 9.2 Chemicals and Accessories: Footwear Table 9.6: Annual Chemical used for the production of Footwear Local Foreign

Total

Name of Chemicals Quantity in Kg Value in Tk Quantity in Kg Value in Tk Quantity in Kg Value in Tk Aqua Solar Aciton Batal Acid Belco EMK Gail Goods Glace Hardner Lacker Ligar Liquid Spray Latex MEK Oxalic Polishing Cream Powder Dice Pasting Primer Pigment Spray Solution Shining Split Solvent Laker Season Sufar Thinner Tolbin Adhesive Ecosolar Cleansing Agent Zinc acid Staric Acid Antioxident MBT TBT Total

0 0 10 37 10 0 0 0 20 0 0 0 0 0 22 0 19505 0 10 0 19500 0 0 20 15 25 0 0 0 0 0 25 25 25 25 25 39299

0 0 1500 9300 100 0 0 0 3000 0 0 0 0 0 6600 0 1462500 0 2000 0 1365000 0 0 2100 1500 1500 0 0 0 0 0 2500 1500 1250 1205 1250 2862805

2.5 130 0 0 85 3 1009 790 0 9 25 2600 630 600 60 500 0 1760 0 48 5000 1800 40 15 0 0 3570 1550 7200 4.5 20 0 0 0 0 0 27451

6250 26000 0 25500 6300 402520 723000 0 1440 11750 260000 78900 27000 17400 18000 0 607000 0 17700 400000 2160000 1200 3000 0 0 286700 131250 1008000 6850 700 0 0 0 0 0 6226460

2.5 130 10 37 95 3 1009 790 20 9 25 2600 630 600 82 500 19505 1760 10 48 24500 1800 40 35 15 25 3570 1550 7200 4.5 20 25 25 25 25 25 66750

6250 26000 1500 9300 25600 6300 402520 723000 3000 1440 11750 260000 78900 27000 24000 18000 1462500 607000 2000 17700 1765000 2160000 1200 5100 1500 1500 286700 131250 1008000 6850 700 2500 1500 1250 1205 1250 9089265


Both domestic and foreign made chemicals are used in the production of footwear. Adhesive constitute the main head of chemical. Some chemicals like batal acid, belco, lacker, pasting, sufar are exclusively supplied by the local sources, and some chemicals used like aqua solar, aciton, thinner, tolbon etc. are of foreign origin. About 70 percent of the total chemicals used (of the total value) are foreign made. Most of the foreign chemicals are made in UK, India, Taiwan, Malaysia and Germany. A number of accessories like bukless, belt, button, catel, deco, eyelet etc. are used by the footwear manufacturing firms to produce footwear. About 80 percent (of the total value) of the accessories used by the footwear-manufacturing units are locally made. A few accessories like deco, catel tap, and eyelet used by the footwear firms are exclusively foreign made. Most of the foreign accessories are made in Korea, Hong Kong, India, Taiwan and Italy. Table 9.8: Yearly Value of Accessories used for the Production of Footwear (Value in Tk.000) Name of accessories

Local

Foreign

Buckles

248

7087

7335

Belt

1313

1248

2561

Button

7903

475

8378

Catel

11

201

212

Catel tap

0

1799

1799

Daco

0

1640

1640

Eyelet

0

128

128

Others

70356

386

70742

Total

79831

12964

92795

Total

Source: Leather Sector Census Study, LSBPC, 2005 Packaging and labeling materials like paper board box, tracing paper, poly bag, carton etc. are collected from local and as well as foreign sources. About 50 percent of the packaging and labeling materials used by the footwear firms are of foreign origin. China, Italy, and Korea were the main suppliers of the packaging and labeling materials for footwear industry in 2003. 9.3 Chemicals and Accessories: Leather Goods About 90 percent of the chemicals (of the total value) used by the leather goods manufacturing units are locally made (Table 9.9). Accessories used by the leather goods manufacturing units include bukless, belt etc. Over 70 percent of the expenses on accessories of the leather goods manufacturing units are on foreign made accessories. Hong-Kong was the main supplier of the foreign made accessories for the leather goods firms in 2003. Packaging and labeling materials used by the leather goods manufacturing units are locally made. Table 9.9: Yearly Value of Chemicals used in the Leather Goods Manufacturing Units Chemicals

Local

Foreign

Total


Adhesive

1630

18

1648

Lacker

2

0

2

TBT

4

0

4

Total

1636

18

1654

Table 9.10: Yearly Value of Accessories used in the Leather Goods Manufacturing Units (value in Tk.000) Accessories

Local

Foreign

Total

Bukless

63.5

600

663.5

Belt

151.5

24

175.5

Button

15

0

15

Others

7

4

11

Total

237

628

865

Source: Leather Sector Census Study, LSBPC, 2005

Major Players of the Leather Chemical Industry 10.1 Market Share of Major Beam House Chemical Suppliers (Wet Blue) 1.

Soaking Agent: 550-600MT /Year

Price: 100-120Tk Per Kg.

#SL.

Supplier

Market Share

1.

ACI, Bangladesh

50%

2.

BASF, Germany

30%

3.

Others

20%

Source: Primary survey Product Name: Lissapol, ACI; Lisapen-PA-WB, BASF


2.

Soaking Enzyme: 300MT /Year

Price: 150-190Tk Per Kg.

#SL.

Supplier

Market Share

1.

TFL, Germany

25%

2.

BASF, Germany

20%

3.

Buckman, Singapore

15%

4.

TH Bohme

15%

5.

Schill & Seilacher, Germany

5%

6.

Scitan, Italy

5%

7.

Others

15%

Source: Primary survey Product Name: (Pellvit C, Pellvit DPH), TFL; (Basozym-S20), BASF; (Busan-40L), Buckman; (Vinkol A), Schill & Seilacher; 3.

Liming Auxiliaries: 750-900MT /Year

Price: 65-120Tk Per Kg.

#SL.

Supplier

Market Share

1.

TFL, Germany

25%

2.

BASF, Germany

20%

3.

Buckman, Singapore

10%

4.

Seicie, Italy

10%

5.

Schill & Seilacher, Germany

5%

6.

Others

30%

Source: Primary survey Product Name: (Erhavit-MB), TFL; (Mollescal AGN, Mollescal LS), BASF; (Buspers 77432), Buckman; (Saical-FC), Seicie; 4.

Deliming Agents: 1000MT /Year

Price: 8-15Tk Per Kg.

Chemicals: Sodium Meta Bi-Sulphate, Ammonium Sulphate, Ammonium Chloride #SL.

Supplier

Market Share

1.

Local

75%

2.

China, Thiland

25%

Product Name: (Delimer-AR), Neochemica; 5.

Bating Agents: 500-600MT /Year #SL.

Supplier

Price: 60-100Tk Per Kg. Market Share


1.

Clariant, UK

35%

2.

TFL, Germany

20%

3.

Buckman, Singapore

15%

4.

BASF, Germany

10%

6.

Rock Chem

5%

7.

Others

15%

Source: Primary survey Product Name: (Oropon-G, Oropon-ANZ, Vulal-K), TFL; (Basozym-C10), BASF; (Bate-PBW1), Buckman; ( Z.H Bate) ZH chemical; 6.

Pickling Agents: 1500-1700MT /Year

Chemicals: Sulphuric Acid Formic Acid Salt (NaCl)

Price: 15Tk. Per kg. Price: Price: 10Tk Per Kg.

#SL.

Supplier

Market Share

1.

Local

55%

2.

Clariant, U.K

10%

3.

BASF, Germany

10%

4.

Kemira

5%

5.

Others

20%

Source: Primary survey 7.

Tanning Agents: 6000-8000MT /Year

Price: 50-150Tk Per Kg.

#SL.

Supplier

Market Share

1.

BASF, Germany

30%

2.

Bayer, Germany

30%

3.

American Chemical Co.

15%

4.

Sulchome, Italy

10%

5.

Others

15%

Source: Primary survey Product Name: (Chromosol-B), Bayer; (Chromitan-B), BASF; (Chromix-B33), American Chemical Co.; 8.

Preservatives: 100-120MT /Year #SL.

Supplier

Price: 750-850Tk Per Kg. Market Share


1.

Buckman, Singapore

40%

2.

Bayer, Germany

30%

3.

Chemicolor/ Yorkeshire

10%

4.

ATC, France

5%

5.

Others

15%

Product Name:

9.

(Prevental-Z), Bayer; (Busan-30L), Buckman; (Tolcide-2230), Chemicolor/Yorkeshire; Basifying Agents: 500-700MT /Year Price: 110-120Tk Per Kg. #SL.

Supplier

Market Share

1.

BASF, Germany

30%

2.

TFL, Germany

10%

3.

Clariant, U.K

10%

4.

Clowan

10%

5.

Others

50%

Source: Primary survey Product Name: (Neosym-MGO), Clowan; (Chromitan-B), BASF; (Chromino-FB), TFL; (Tanbase), Clariant; 10.1.1 Total Quantity wise Market Share (Wet Blue) Sl. No. 1 2 3 4 5 6 7

Name of the Suppliers BASF, Germany Clariant, UK Bayer, Germany American Chemical Co. TFL, Germany Buckman, Singapore Others

Approximate Market Share (%) 25% 22% 20% 8% 5% 5% 15% Figure 10.1:

10.2 Market Share of Chemical Suppliers (Wet Blue To Crust) 1.

Neutralizing Agents: 500MT /Year

Price: 90-160Tk Per Kg.

#SL.

Supplier

Market Share

1.

BASF, Germany

25%

2.

TFL, Germany

25%

3.

Clariant, UK

20%

4.

Buckman, Singapore

10%

5.

Others

20%


Product Name: (Butan 7810), Buckman; (Tamol GA, NNOL), BASF; (Sellasol NG), TFL; (BS3), Smith & Zones; (Probal-PRA), Clariant; (PAKS), Bayer;

2.

Retanning Agents: 3000-4000MT /Year

Price: 115-180Tk Per Kg.

#SL.

Supplier

Market Share

1.

BASF, Germany

50%

2.

Bayer, Germany

30%

3.

Others

20%

Product Name: 3.

(Basyntan-AM, Basyntan- DLE, Syntan-DLE, Relugan), BASF; (Tanizon-OS, Ratingan- R7), Bayer; Dyes: 1000MT /Year Price: 300-1200Tk Per Kg. #SL.

Supplier

Market Share

1.

Clariant, UK

40%

2.

BASF, Germany

-

3.

Guama

-

4.

Stahl, Holland

-

5.

Others

30%

Product Name: (Beige-L), BASF; (Black-PNT), Guama/Chika; (Brown-574), Croda; 4.

Dyeings Auxiliaries: 250-350MT /Year

Price: 70-350Tk Per Kg.

#SL.

Supplier

Market Share

1.

Clariant, UK

20%

2.

BASF, Germany

20%

3.

TFL, Germany

10%

4.

Hodgeson

10%

5.

Others

40%


Source: Primary survey Product Name: (Tamol AW), BASF; (Neosyn-N), Clarient; (Compound DLS), Hodgeson; 5.

Fatliquors: 1800-2000MT /Year

Price: 70-350Tk Per Kg.

#SL.

Supplier

Market Share

1.

Smith & Zones

30%

2.

TFL, Germany

20%

3.

BASF, Germany

10%

4.

Clariant, UK

10%

5.

Zshimmer & Schwarz

5%

6.

Others

25%

Source: Primary survey Product Name: (Lypoderm), BASF; (Chromopol, Choripol), TFL; (Derminol, Dermalix), Clariant; (Eureka-172), Atlas; (SLP), Yorkeshire; (Coralon), Stahl; 10.2.1 Total Quantity wise Market Share (Crust) Sl. No. 1 2 3 4 5

Name of the Suppliers BASF, Germany Clariant, UK Bayer, Germany TFL, Germany Others Source: Primary survey

Approximate Market Share (%) 33% 20% 17% 10% 17% Figure10.2

10.3 Market Share of Chemical Suppliers (Crust To Finished Leather) Name of the products: Coating Agents (Top Coats, Base Coats); Binders; Cross linkers; Colloidal Fillers, Wax Fillers, Penetrator, Acrylic Resins; Pigments; Dyes; Thinners etc; Quantity:

Total:

550-600 MT/Year,

Note That: Although the result obtained from the secondary data shows the annual requirements of leather-finishing chemicals is 1550MT but from the primary survey it has been confirmed that annual finishing chemical consumption is 550-600MT.


Sl. No.

Name of the Suppliers

1 2 3 4 5 6 7 8 9

ALPA, Italy BASF, Germany Stahl, Holland Clariant, UK TFL, Germany Finice(Italy) Horiyana Chemicals Buckman, Singapore Others(Indian & Italian)

Approximate Market Share (%) in Finishing 25% 20% 18% 10% 5% 5% 5% 2% 10% Figure 10.3

Findings and Recommendations As the whole tannery industry of Bangladesh is getting squeezed day-by-day, the negative impact of it is obviously affected the leather chemical market of Bangladesh. Since on this small industry more than fifty chemical merchants and organizations are operating, price; marketing policy; relationship marketing; technical support by the chemical suppliers; are scrupulously observed by the tanneries of Bangladesh. Ten years back BASF and some other big chemical suppliers led the leather chemical market single handedly and played monopoly game with their consumers. At that time they took high price from the buyers. But now there are numerous competitors available on the market. Now, buyers can choose their own sellers since they have their alternatives. In the description bellow I tried to find out some basic marketing factors of leather chemical industry. 1. Technical Support: The leather chemical marketing and selling requires reliable technical services. Suppliers can sell their product only then, when they can make it sure to the buyers that the chemical is really useful for fulfilling buyer’s special purpose. So, if you don’t have good and skilled technical sales person you are no way near in the competition. 2. Price: Price has always been a huge factor in leather chemical industry. Big suppliers are getting away from the good notice of their clients because of their high price comparing to their Chinese and Indian counter products. Freight cost, taxes, currency exchange rate have always played a big factor for the ultimate price of the chemical. Most of the Chinese and Indian products are proved to be less costly than most of the well-known German, Dutch and English chemicals. 3. Relationship Marketing: Since the whole leather chemical market is very narrow, each and every one knows one another very well. But then again one has to maintain a very good relationship with the buyers. Most of the buyers want to purchase their chemicals on credit basis. So, you have no option but to sell your product on credit. Since, chemical selling requires post purchase technical support, one has to make it sure their chemical is doing better than competitors one in each and every aspect. Discount can be offered for buying bulk amount. Most of the buyers are facing difficulties in getting loan from the bank to purchase their raw materials. A supplier can also make a link with the banks to give loan to the tanneries for buying chemicals form them.


4. Lead Time: Sometimes buyers have to buy a bulk amount of chemicals for their production. In most of the cases suppliers are not able to supply beyond a certain amount of chemicals, then they require importing chemicals from the manufacturing agents. Lead-time plays a big role in that particular case. If a supplier cannot maintain its declared time of supply, obviously the buyers will be dissatisfied. 5. Quality: No matter in which way you have sold your chemical to the buyers you have to make it sure that you are selling a quality product. You have to remember that it is not the one time selling policy you want to follow. Only, the good quality product can ensure long term selling policy. 11.1 Problems of ACI Trading and Stahl in Leather Chemical Marketing

1. Price: Most of the Stahl products are costlier than their competitor’s counter products. Although Stahl has very good brand image in Finishing chemical section but high price is one of the factor for which Stahl is loosing market towards the Indian and Chinese products. Even in some cases their chemicals are costlier than BASF, ALPA and TFL’s chemicals. Actually, Stahl has to wait for their shipment from Holland. Fluctuations of Euro play an important part to fluctuate the price of the chemicals. ALPA (The market leader in finishing Leather chemical section) arranges shipment from two sources, one is India and another one is Italy. ALPA gives emphasize to the customers choice from where they want to get the shipment. In case of shipment from India, ALPA offers lower price in US Dollar. The other benefit, they can avoid the risk of frequent Euro fluctuation. Not only ALPA but also other competitors are practicing this strategy as well (BASF India, TFL Sri Lanka, BUCK MAN Singapore, etc).

2. Organizational Hierarchy of ACI Trading Ltd and insufficient technical person in the leather chemical division: ACI Trading Limited is one the subsidiaries of Advanced Chemical Industries (ACI), Bangladesh Limited. The Company is mainly involved in marketing and sales of various Industrial Chemicals, Petrochemicals, Plastics, Pharmaceuticals, Leather and Shoe finish, Textile Dyes and Auxiliaries through Indent sales. It has four business divisions such as Chemicals, Textile, Leather and Water Pumps. To render technical service ACI Trading has two separate technical application laboratories for textile and leather businesses. In the Leather chemical division there are only two persons working, a) Senior Technical Sales Officer, b) Technical Sales officer. There was a manager in this division, but after his death this position is vacant now. The hierarchy of Leather Chemical Division:

Executive Director ACI Trading Limited Manager, Leather (Vacant) Senior Technical Sales officer

Technical Sales officer


With the vacation of the mangers post, both the sales officers have to report directly to the Executive Director. Insufficient personnel in the leather chemical division and vertical hierarchy seem to be a noticeable problem for ACI Trading Ltd. ALPA, the market leader in leather finishing, has eight technologists working for Bangladesh market (Three Bangladeshi Technical persons, two Indian technologists, three Technologists from ALPA, Italy). In comparison to that Stahl has only two technical sales officers of Bangladesh and one Pakistani technologist. Training of these technical personnel is very necessary. ALPA, Italy arranged regular training for agent technologist and train up on latest development that helps to promote Chemicals to tanneries. Stahl and ACI should arrange training on regular basis. Job placement is another key strategy taken by the market leader ALPA. They appointed technicians from India and occupied most of the finishing units in Bangladesh. These technologists are working as shadow technologists of ALPA and at the same time Tannery management also pleased for that and finally ALPA gets good business. Appendix A-1 Members’ List of Bangladesh Finished Leather, Leather goods and Footwear Exporters’ Association (BFLLFEA) Category: Tannery Name of the Firm

Address

Phone

M/S Al Madina Tannery

55/2, Hazaribagh, Dhaka

M/S Amin Tannery Ltd.

60/1, Hazaribagh, Dhaka

8611579 019343789 8610475 0171561660 9664078 506168

M/S Anowar Limited

Tannery

(Pvt) 104, Hazaribagh, Dhaka

M/S Apex Tannery Ltd.

Off: 65-66 Motijheel C / A (2nd Floor) Fact: 127 Hazaribagh, Dhaka

M/S Awal Leather Complex

69, Hazaribagh, Dhaka

M/S Abul Khair Tannery

M/S Azmir Leather

121/5, Sher-e-Bangla Road, Hazaribagh, Dhaka-1209 143/1 Hazaribagh Dhaka 116/E, Hazaribagh, Dhaka-1209

M/S Aziz Tannery Ltd.

148/2, Hazaribagh, Dhaka-1209

M/S Ayub Brothers Tannery Ltd.

M/S Bangladesh Fine Leathers Alta Plaza (3rd Flor) House # 1 Processing Ltd. Road # 10, Dhanmondi, Dhaka M/S Bata Shoe Company Tongi, Gazipur, (Dhaka) Bangladesh Limited M/S Bay Tanneries Ltd. 21, Hazaribagh, Dhaka

9551203 9560766 9551117 8625635-7 8626728 8118981 8621787 0172126126 866518 8626925

8124806 8626485 9800501-5 9800513 8611445 8611468

Contact Person a Designation Alhaj Nur Mohammed Managing Director Mr. Abdul Kader Managing Director Mr. Md. Dil Jah Bhuiyan Managing Director Mr. A.K.M Rahmatull Managing Director

Mr. M. A. Awal Managing Director Hazi Md. Abul Khair Proprietor Mr. Shahjahan Managing Director Mr. Md. Shahid Ullah Proprietor Mr. Md. Asifur Rahma Managing Director Mr. Anam Haque Managing Director Mr. G Stricker Managing Director Mr. Shamsur Rahman Managing Director


M/S Bengal Leather Complex

147, Hazaribagh, Dhaka-1209

M/S Bengal Peli Export Company M/S Bikrampur Tannery Ltd.

Hazaribagh Dhaka 180/2 Hazaribagh, Dhaka

011855496 8614077 8615977 0171538060 9122452 500197 9110690

M/S Cresent Tannery Ltd.

143 Hazaribagh, Dhaka

9663659

M/S Dhaka Hides & Skins Ltd.

147, Hazaribagh, Dhaka

8611268 9669849

M/S Dhaka Tanneries Ltd.

124, Hazaribagh, Dhaka

M/S Diamond Tannery Ltd.

73, Hazaribagh, Dhaka

8615179 8613563 0189216979

M/S F. K. Leather Complex Ltd.

95/3A, Hazaribagh, Dhaka

M/S Green Arrow Tannery

135, Hazaribagh, Dhaka

M/S Great Eastern Tannery (PVT) Ltd M/S H & H Leather Industries Ltd.

42, New Paltan Lane, Azimpur, Dhaka-1205

M/S H. B. Tannery Ltd.

House # 69, Road # 8/A Dhanmondi R/A, Dhaka

M/S H. R. C. Leather Complex

1. TC Bhaban, Kawran bazar Dhaka 18, Kamal Ataturk Avenue (16th Fl) Banani, C/A, Dhaka 74, Hazaribagh, Dhaka

9128991-2

M/S Ibrahim Leathers

78, Hazaribagh, Dhaka-1209 59/60, Gazmohol, Hazaribagh, Dhaka-1209 (?) 123/1 Hazaribagh, Dhaka

8631097 9660754 0171591647 8625162

M/S International Tannery

Hazaribagh, Dhaka

M/S Jamila Tannery Ltd.

112, Hazaribagh, Dhaka 180, Hazaribagh, Dhaka

504401 508863 508466 9112832 8618556 8626727 8117674

M/S Haroon Leather Ltd. M/S Helal Tannery M/S Helena Enterprise Ltd. No.2

M/S Janata Tanning Industries Ltd. M/S Javed Tannery M/S Kader Leather Complex M/S Kalam Brothers Tannery Ltd.

House # 69, Road # 8/A Dhanmondi R/A, Dhaka

119, Sher-e-Bangla Road Dhaka 54/F Moneshwar, Hazaribagh, Dhaka 109/2 Hazaribag, Dhaka

502411 506921 503650 8614182 8626887 9666128 9113776 9111209 8111526 8111526 9111209

8824979 8821024 8616305

8116424 8626727 8618556 0171561646

Mr. Md. Tipu Sultan Managing Director

Mr. Md. Anwar Hossa Proprietor Mr. S.M. Habib Rahman Managing Director Mr. Md. Abdul Kader Chairman Mr. M. A. Ras Bhuiyan Managing Director Mr. Md. NUrul Huda Managing Director Mr. Abdul Hakim Managing Director Mr. Kutub Uddin Chairman Mr. Tofail Ahmed Managing Director Alhaj Mohd Idrish Managing Director Mr. M. Nasir Managing Director Mr. M. Fayaz Director

Mr. Sayeed Hoss Chowdhury, Chairman Mr. Rizwan Haroon Managing Director Mr. Md. Belal Hossain Proprietor Mr. Mohammad Mizan

Mr. Md. Ibrahim Proprietor Mr. Md. Fajlu Mia Proprietor Mr. Shaiqur Rahman Managing Director Mr. Abul Kashem Managing Director Mr. Tipu Sultan Proprietor Mr. Abdul Kader Proprietor Mr. Md. Abul Kal Azad Managing Director


M/S Karim Leathers Ltd.

180, Hazaribagh, Dhaka

M/S Kid Leather Ind. Ltd.

Off: 62/1, Purana Paltan, Dhaka Fact: 19 Sher-e-Bangla Road, Hazaribagh, Dhaka M/S Leather Ind. of Bangladesh 54/1 Sher-e-Bangla Road, Ltd. Hazaribagh, Dhaka M/S Lexco Limited 146, Hazaribagh, Dhaka

M/S Madina Tannery

8616584 8611286 8611129 8612286 9563453 8610516 8614242 9669397 8626082 8625147

114, Kobi Nazrul Islam Road Sadharghat, Chittagong Dhaka Chamber Building 65-66, Motijheel C/A Dhaka

031-613916 031-617605 9551117 9566182-3

M/S Millat Tannery

116/6, Hazaribagh, Dhaka

M/S Mitali Tannery

71/4 Gojmohol, Hazaribagh, Dhaka

504865 8611264 8612917 9665916

M/S Mukti Tannery

141/2 Hazaribagh, Dhaka

8616586

M/S Mukta Tannery

34/C, Hazaribagh, Dhaka-1209

9660674

M/S Paramount Tanneries

181/2 Sher-e-Bangla Road, Dhaka 21, Hazaribagh, Dhaka 55/1 Hazaribagh, Dhaka

M/S Manzur Industries Ltd.

M/S Pioneer Tannery Ltd. M/S Pragati Leather Complex M/S R. M. M International Ltd.

Hazaribagh,

8626056 0189220471 8623428 9663121 8626485 0171524804

Suit # 601, Concord Tower 113 Kazi Nazrul Islam Avenue, Dhaka

M/S R/ K. Leather Complex

153/A, Hazaribagh, Dhaka

011 867105

M/S Rana Leather Ind. Ltd.

70, Dilkusha C/A, Dhaka 9, Hazaribagh Dhaka

M/S Reliance Tannery Ltd.

48/2/K, Dhaka

M/S Riff Leather Ltd.

4, CDA Noxious Industrial Area Kalurghat, Chittagong 78, Hazaribagh Dhaka 131, Hazaribagh, Dhaka

9566025-6 9564509 508909 8625119 8627425 0171898832 031-670764 031-671220 504696 801624 9664317 8627144 9662523

M/S Roushan Tanneries M/S Ruma Leather Ind. Ltd. M/S S & S Tannery

Moneshwar

86/1, Hazaribagh Dhaka

Road,

Hazaribagh,

Alhaj Rejaul Kar Ansari Managing Director Mr. Md. S.A.M. Nuruddin Managing Director Mr. Abdul Rahman Sa Managing Director Mr. M. A. Matten Chairman Mr. Harun Or-Rashid Managing Director Mr. Abu Mohammad Managing Director Mr. Quazi Anwarul H (Tariq) Director Mr. Md. Nurul Alam Proprietor Mr. Mr. Hazi Ab Kashem Proprietor Mr. Osman G Bhuiyan Managing Director Mr. Sayed Md. Shidul Proprietor Mr. Akbar Hossain Managing Director Mr. Ziaur Rahman Managing Director Mr. Md. Asadullah Managing Director

Mr. Mohiuddin Ahm Mahin Managing Director Mr. Md. Nurul Am Chowdhury Managing Director Mr. A. K. Sham Alamin Managing Director Mr. Md. Shajahan Managing Director

Alhaj Abul Kalam Director Mr. Amin Uddin Babu Managing Director Eng. M. Abu Taher Managing Director Mr. Md. Abdur Rahim Proprietor


M/S SAF Industries Ltd.

Akij Chember 73, Dilkusha, C/A, Dhaka

M/S Samata Leather Complex Ltd.

120, Sher-e-Bangla Dhaka

M/S Samina Tannery Pvt. Ltd.

36/1 Kalunagar, Hazaribagh, Dhaka

Hazaribagh, Dhaka M/S Shafiq Leather Corporation 43/1, Sher-e-Bangla Ltd. Dhaka

Road,

Hazaribagh,

M/S Shadhin Tannery

Road,

Hazaribagh,

M/S Shahjalal Leather Complex

9552287 9666142 9666151 8611102 8611372 9662731 9660384 8625266 011850698 8616963 8616111 9669385

20, Hazaribagh, Dhaka M/S Superior Leather Industry 19, Sher-e-Bangla Road Ltd. Hazaribagh, Dhaka

8619457 502709 8612268

M/S Taj Tannery Ltd.

148, Hazaribagh, Dhaka 86/2 Sher-e-Bangla Road, Hazaribagh, Dhaka

8610285

109, Hazaribagh, Dhaka

8611851 8118981 011859031 8614749 8613083 8625162 8614895

M/S The Tannery

Earth

International

M/S Vulua Tannery Ltd.

8618826 506910

Mr. S. K. Momin Udd Managing Director Mr. Mansur Ahmed Chairman Abdus Samad Managing Director

Mr. Faruque Ahmed Managing Director Mr. Sidul Isl Chowdhury Managing Director Mr. Shahjalal Mazumd Managing Director Mr. S. A. M. Nuruddin Managing Director Mr. Mujibur Rahman Managing Director Mr. Alhaj M. A. Sat Bhuiyan Proprietor Mr. M. A. Awal Managing Director

M/S Yousuf Brothers Tanneries 62, Hazaribagh, Mr. Mohammed Yousu Pvt. Ltd. Dhaka Managing Director M/S Yousuf Leather Corporation 124/2, Hazaribagh, Hazi Mohammed Bash Ltd. Dhaka Managing Director Appendix A-2 Members’ List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Category: Leathergoods SL 1. 2. 3. 4. 5. 6. 7.

Name of the Firm

Address

Phone

M/S Alamin Brenton Leather Goods Limited M/S Asian Leather Complex

70, Dilkusha Commercial Area Dhaka 143/1, Hazaribagh, Dhaka-1209

9566025-6 9564507 9664322

M/S Bangla Tan Leather Products

148/3, Hazaribagh, Dhaka Star Center (1st Floor) House # 2/A, Road #138, Gulshan-1 Shilpo Plot # 9, Block C, Tajmahal Road, Mohammadpur 147, Hazaribagh Dhaka

503502 500905 9880799 8317259 325449 244862 966470-07 0171530159

131, Hazaribagh Dhaka

9664317 8627144

M/S Crown Leather Products Ltd. M/S Crystal Corporation Ltd. M/S Dhaka Leather Crafts M/S Fortuna Leather Craft

Contact Person and Designation Mr. Jahangir Alamin Managing Director Mr. Md. Monir Hossain Managing Director Mr. Alhan M. A. Mateen Chairman Mr. Serajul Islam Managing Director Mr. Engr. A. S. M. Rafid Managing Director Mr. Joynal Abedin Bhuiyan Proprietor Engr. M. Abu Taher Managing Director


8.

M/S Madina Leather Complex M/S Picard Bangladesh Ltd.

9. 10. 11. 12. 13.

SL

.

.

.

M/S R. M. M International Ltd. M/S Sonali Aansh Industries Ltd. M/S Spectra Leathergoods Ltd, M/S Uttama Leather Production

117, Hazaribagh, Dhaka-1209 Sky Lark Point, Suite No. 9J1, 24/A, Bijoynagar, 175, Syed Nazrul Islam Sarani, Dhaka Suit # 601, Concord Tower 113 Kazi Nazrul Islam Avenue Dhaka Lal Bhaban (1st Floor) 18, Rajuk Avenue, Dhaka Namazi Chamber (1st Floor) 16, Motijheel C/A, Dhaka Star Center (1st Floor), House # 2/1 Road # 138, Gulshan-1, Dhaka

.

.

.

Name of the Firm

Address

M/S Amit Footwear Ltd.

Flat # 2/503 20, Eastern Tower 20, New Eskaton Road, Dhaka Plot # 3DS, Road No. 113/A, Gulshan-2, Dhaka Tongi, Gazipur, (Dhaka)

M/S Apex Footwear Limited M/S Bata Shoe Company Bangladesh Limited M/S Bay Footwear Ltd. M/S B S Leather Complex M/S Cosmopolitan Shoe Ind. Ltd M/S Comfort Footwear Ltd. M/S Continental Footwear Ind. Ltd. M/S Desma Shoe Industries Ltd.

.

0.

M/S Dhaka Footwear Ltd. M/S H. N. Shoe Limited

1.

2.

3.

4.

5.

9354996-4 0171522170

Mr. Bellal Hossain Managing Director Mr. Md. Saiful Islam Managing Director

9556251 8613132 9565301 9564543 9880799 8825007

Mr. Mohiuddin Ahmed Managing Director Mr. Nurul Islam Patwari Managing Director Mr. Sohail Askar Managing Director Mrs. Shaikh Selina Islam Managing Director

Appendix A-3 Members’ List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Category: Footwear

.

.

9661157

M/S Inter Fashion Leathers & Footwear Ind. Ltd. M/S Jenny Shoes Ltd. M/S Lalmai Footwear Ltd. M/S Landmark Footwear Ltd.

Phone

9804046 0171542895 8828258 8821591 9800501-5 9800513 21, Hazaribagh, Dhaka 9663966 9666994 8623428 13, Moneshwar road, Hazaribagh, 8615921 Dhaka-1205 9619934 House#303, Road#19/B, New DOHS, 9261145 Mohakhali, Dhaka 86, Laboratory Road (Gd. Floor) 8612415 Dhaka 500516 240, New Elephant Road, Dhaka 861623 8612408 10, Kazi Nazrul Islam Avenud (2nd Fl) 8114053 Kawran Bazar, Dhaka 8110782-3 147, Hazaribagh, Dhaka House # 69, Road # 8/A Dhanmondi R/A, Dhaka

9669849 8611268 9113776 9111209 0171523223

Room # 410, DCCI Building 65-66 Motijheel C/A, Dhaka House # 06, Road # 68A Gulshan-2, Dhaka Khan Mansion (5th Flor) 107, Motijheel C/A Area, Dhaka 67, Lake Circus, (Dolphin Lane) Kolabagan, Dhaka

9560591 9567986 8826350 8824885 9567312 9569458 9338369 8312626

Contact Person and Designation Mr. Sukumar Chowdhury Managing Director Syed Manzur Elahi Chairman Mr. G Stricker Managing Director Mr. Shamsur Rahman Managing Director Mr. Shohel Ahmed (Dilu) Managing Director Mr. Moinul Ahsan Managing Director Mr. Abul Kashem

Mr. Kazi Shahed Hasan Ferdous, Managing Director Mr. M. A. Rashid Bhuiyan Mr. M. Nasir Managing Director Mr. M. Amirullah Executive Director Mr. Farukh Ahmed Managing Director Mr. M. Nasir Khan Managing Director Mr. Aminur Rashid Managing Director A. K. M. Afzalur Rahman Managing Director


6.

7.

8.

M/S Leatherex Footwear Industries Ltd.

House # 34/1 (Gr. Fl) Road # 10/A Dhanmondi, Dhaka. 168/A, Green Road, Dhaka

M/S Legacy Footwear Ltd. M/S Lexco Footwear Ltd. M/S Madina Shoe Ind. Ltd.

9.

0.

1.

2.

3.

4.

5.

M/S Malim Bangladesh Co. Ltd M/S Phulhar Footwear Ltd. M/S Rever Side Leather & Footwear Ind. Pvt. Ltd. M/S Rumana Shoe Industries Ltd. M/S Savar Industry (Pvt) Ltd. M/S Shampan Shoes Ltd. M/S Surma Leather & Footwear Ind. Ltd.

6.

7.

8.

9.

0.

1.

M/S S A Leather and Shoe Ind. Ltd. Leather Plannets Limited (?) M/S Brother Chemicals Ltd. (?) M/S S. A. K. International Co. (?) M/S Tivoli Bangladesh Ltd. (?) M/S Velex Agences Ltd. (?)

2. M/S Nitol Export (?)

3.

8112543

404684 011858976 146, Hazaribagh, Dhaka 9669397 503502 Baitul Hossain Building (Suite-1204), 9564042 27, Dilkusha C/A, Dhaka 9556208 7169495 0175013459 290/1 Shonargaon Road 9803366 Dhaka 9803737 Meherba Plaza, 9570346-8 33 Topkhana Road, Dhaka 2/1, R/K mission Road, 9563162 Dhaka 9560147-9 45/B, Dilu Road, New Eskaton, 8113648 Dhaka Savar EPZ Area 8311252 Dhaka Rahman Chamber (5th Floor) 9563185 12-13 Motijheel C/A Dhaka 9565325 34, Bangabahdu Avenue (3rd Floor) 9557913 Dhaka-1000 9558790 Malliker Para, Sonargaon, Narayangonj House # 159, Road # 01, DOHS Baridhara, Dhaka 9/1, Gozmohol, Hazaribagh Dhaka House # 296, Road # 04, DOHS Baridhara, Dhaka 49, Gulshan S/A Gulshan – 1, Dhaka 62/1 Purana Paltan, Motijheel C/A, Dhaka Fac: 121/5 Sher-e-Bangla Road, Hazaribagh-Dhaka 71, Mohakhali C/A, Nitol Centre, Dhaka-1212

8616305 0171378494 9887422 501622 9551725 9883926 502030 9885362 8821153 9563404 9563453 9887074-6 8855794 0189238109

Mr. Mohammed Nazmul Hassan, Managing Director Mrs. Shahnaz Sultana Managing Director Mr. Harun-Or-Rashid Managing Director Md. Shafizul Islam Khandaker Managing Director

Mr. Delwar Hossain Managing Director Mr. Md. Ziaur Rahman Managing Director Mr. Abu S. M. Baqibillah Executive Director Mr. S M Abul Kashem Managing Director Mr. Akihisa Osomura Managing Director Mr. Shamsuddin Ahmed Executive Director Mr. Mahbubur Rahman Sikder Managing Director Mr. Harun Miah Managing Director Mr. Md. Abul Kalam Azad Chairman Shakil Ahmed Khan Proprietor Mr. A. H. Mustafa Kamal Managing Director Mr. S. A. M. M. Nuruddin Managing Director Mr. Abdul Matlub Ahmad Managing Director

Appendix A-4 Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB) Category: Leathergoods

SL

Name of the Firm

Address

Phone

.

M/S Apex Leathercraft Fashion & House#296, Road#4, DOHS Baridhara, 9883926

Contact Person and Designation Mr. Shakil Ahmed Khan


.

.

.

Accessories Ltd. M/S Aurora

Dhaka Cantonment, Dhaka-1206 10/1, Iqbal Road, Mohammadpur, Dhaka1207 561, Pakuria, Bhadhalodi, Uttara, Dhaka1230 179, East Kafrul, Dhaka Cantonment Dhaka-1206 89, Motijheel C/A (3rd Floor) Suit No. 62, Dhaka

0171592979 8117696 0189257031 8916806 0189357570 9872149 0189803083 9559979 0171458649

Managing Director Mr. Md. Shahidul Huq Managing Partner Mr. Md. Shaheen Ahmed Managing Director Mr. Serajul Islam Managing Director Mr. Jainal Abedin Raton Managing Director

M/S Koninoor Leather Products Ltd.

Amanullah Complex 87, Islampur Road, Dhaka

Mr. Hossain A. Sikder Managing Director

M/S Picard Bangladesh Ltd.

Sky Lark Point, Suit no 9J1 24/A, Bijoynagar, Dhaka Lal Bhaban (1st Floor), 18 Rajuk Avenue Dhaka

9566402 9566396 0171523675 9354993-4 0171522170 9556251 9563322 0171536721 9880102-5

M/S Cosmic Jute & Leather Industries Ltd. M/S Crown Leather Products Ltd. M/S Jass Leather Industries Ltd.

.

.

.

M/S Sonali Aansh Industries Ltd.

. M/S Universal Leather Products

.

L

Erectors House (9th Floor) 18, Kamal Ataturk Avenue, Banani C/A, Dhaka-1213

Mr. Md. Saiful Islam Managing Director Mr. Nurul Islam Patwari Managing Director

Mr. M. Naser Rahman (MP) Managing Director

Appendix A-5 Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB) Category: Footwear Name of the Firm

Address

Phone

M/S Amit Footwear Ltd.

House # 30, Road # 6, Sector 3 Uttara Model Town, Dhaka-1230 Celebration Point,1st Floor, Plot # 3,5 Road # 113A, Gulshan-2, Dhaka

9804046

M/S Apex Footwear Ltd. M/S Bay Footwear Ltd.

21, Hazaribagh, Dhaka-1209

M/S H. N. Shoes Ltd.

House # 69, Road # 8/A Dhanmondi R/A, Dhaka Jennys House, House # 6, Road # 68/A Gulshan-2, Dhaka-1212

M/S Jenny Shoes Ltd. M/S Lalmai Footwear Ltd.

Khan Mansion (5th Floor) 107, Motijheel C/A, Dhaka

8828258 8620300 0171531722 8611468 8612335 0171560794 8111526 9111209 8826350 8824885 0171535117 9567312 9569458 0171538012

Contact Person an Designation Mr. Sukumer Chowdhury Managing Director Mr. Syed Nasim Manzur Managing Director Mr. Ziaur Rahman Managing Director Mr. M. Nasir Managing Director Mr. Nasir Khan Managing Director Mr. Aminur Rashid Managing Director


SL

64, Bijoy Nagar (3rd Floor) Kakrail, Dhaka-1000 House # 34/A, Road # 10/A Dhanmondi R/A. Dhaka

M/S Landmark Footwear Ltd. M/S Leatherex Footwear Ind. Ltd. M/S Legacy Footwear Ltd.

64, Bijoynagar, Kakrail, Dhaka Suit # 1204, Baitul Hossain Building 27, Dilkusha C/A, Dhaka-1000

M/S Madina Shoe Industries Ltd.

M/S Surma Leather & Footwear Ind. Ltd. M/S Tropical Shoes Ind. Ltd. Bangladesh Export Ltd.

9338369 8312626 8112543 9129192 0189227559 8319663

Corner Court, 29 Toynbee Circular Road Motijheel C/A, Dhaka A. R. Tower (3rd Floor) 24, Kamal Ataturk Avenue, Banani, Dhaka-1213 24, Kamal Ataturk Avenue, Banani, Dhaka

9667745 9556208 7169495 0175013459 9557913 9558790 8815142 8815144 8815142 8815144 0171538338

Mr A. K. M. Afzalur Rahman Managing Director Mr. Nazmul Hasan Hohil Managing Director Mr. Kazi Rafi Ahmed Managing Director Mr. Md. Shafiqul Islam Managing Director Engr. Mr. Sultan A. Sikder Director Mr. M. Anisur Razzaque Managing Director. Mr. M. Anisur Razzaque Managing Director.

Appendix A-6 Members’ List of Bangladesh Tanners Association (BTA) Category: Tannery Tannery/ Organization

Address

Phone

Contact Person

1.

M/S. Taj Tannery

148. Hazaribagh. Dhaka- 1209.

8610285

Md. Mizanur Rahman

2.

M/S. Chowdhury Leather & Co

95/7.Gazmahal, Hazaribagh. Dhaka- 1209

Md. Harun Chowdhury

3.

M/S. Helena Enterprise

4.

M/S. R M Leather

9660754

Md. Monir Hossion

5.

M/S M B Tannery Ltd

8614663

Md Mozaffar Rahman

6.

M/S Pubali Tannery

9660508

Md. Mozibur Rahman

7.

M/S Abul Khair Tannery

8621787

Hazi Md. Abul Khair

8.

M/S. Nur Trading Corporation

95/7.Gazmahal. Hazaribagh. Dhaka- 1209. 95/7.Gazmahal. Hazaribagh. Dhaka- 1209. 44/1, Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. 44. Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. 125/1. Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. 119. Hazaribagh. Dhaka- 1209.

9660754 8631097 0171526220 9660754

8631554

Md. Abdul Awal

9.

M/S. Forhed Leather Corporation

99. Hazaribagh. Dhaka- 1209.

9662836

Md. Abdul Hai

Md. Mizanur Rahman


10.

M/S. Noakshli Tannery

107. Hazaribagh. Dhaka- 1209.

8628867

Mukbul Ahmed

11.

M/S. Shadhin Tannery

101. Hazaribagh. Dhaka- 1209.

8614354

Farque Ahmed

12.

M/S. Mamun Trades

91. Hazaribagh. Dhaka. 1209.

9661733

Md. Moharaf Hossain

13.

M/S. H N Brothers

41/23/15. Zigatola, New Rd. Hazaribagh. Dhaka- 1209.

9662836

Md. Amir Hussain

14.

M/S. Eusuf Tannery Ltd

135/2. Hazaribagh, Dhaka- 1209.

018- 244985

Md. Bashir Ullah

15.

M/S. Majdhi Tannery

136/3. Hazaribagh, Dhaka- 1209.

8626492

Md. Hossain

16.

M/S. Kohinoor Tannery Ltd

130. Hazaribagh, Dhaka- 1209.

9669001

Md. Humiyan Kabir

17.

M/S. Bangla Ten Leather

148/3. Hazaribagh, Dhaka- 1209.

9125651

Md. Masum

18.

M/S. F K Leather

95. Gazmohal, Hazaribagh, Dhaka- 1209.

8624082

Md. Katub Uddion

19.

M/S. F F M Leather Complex

94/1. Hazaribagh, Dhaka- 1209.

9660509

Md. Sha Alam

20.

M/S. Rahman Oversize

44. Sher-e- Bangla Rd. Dhaka – 1209.

8614663

Md. Fazrul Rahman

21.

M/S. Rahman Enterprise

39. Zigztola. Hazaribagh. Dhaka- 1209

22.

M/S. Sonali Haide

9660508

Md. Mahabubur Rahman

23.

M/S. Bearied Leather Complex

8610543

Md. Akbar Hossain

24.

M/S. Shodesh Tannery

44/1, Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. 45/1. Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. 116/D, Hazaribagh, Dhaka- 1209.

502264

Md. Shohied Ullah

25.

M/S. Urmi Trade International

136/2, Hazaribagh, Dhaka- 1209.

8620535

Md. Abul Kaham

26.

M/S. Zia Leather Complex

1310, Auture Dupo, Chittagong.

31- 682645

Md. Abu Musa

27.

M/S. Gulshan Tannery

90, Hazaribagh, Dhaka- 1209.

28.

M/S. Great Strean Tannery

29.

M/S. Chinaze Tannery Pvt Ltd

48, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209. 50, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209.

30.

M/S. Yousuf Leather Corporation

31.

M/S. Shatee Leather

32.

M/S. Feni Tannery Pvt Ltd

33.

M/S. Kasim Tannery

Hazaribagh,

Md. Azizur Rahman

Md. Salim Ahmed

8626492

Al hazi Kazi Abdul Kadir

124/2, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209.

8129864

Hazi Md. Bashir

136/5, Hazaribagh Dhaka- 1209. 113, Hazaribagh Dhaka- 1209. 110, Hazaribagh, Dhaka- 1209.

8612109

Md. Abul Kalam

8628529

Md. Golam Rabbani Md. Abul kasam


34.

M/S. Asia Tannery

137, Hazaribagh, Dhaka- 1209.

35.

M/S. Nashet Tannery

138, Hazaribagh, Dhaka- 1209.

Md. Salim

36.

M/S. Sonali Tannery

111/A, Hazaribagh, Dhaka- 1209.

Md. Babul Mia

37.

M/S. Fanche Leather Enterprise

9662840

Md. Shamsul Huda

38.

M/S. Razibe Leather Complex

9662840

Md. Shamsul Huda

39.

M/S. Son Light Tannery

95, Gozmohal, Hazaribagh Dhaka- 1209. 95/4, Gozmohal, Hazaribagh Dhaka- 1209. 122, Hazaribagh, Dhaka- 1209.

40.

M/S. Karsaj Tannery

8625078

41.

M/S. Chanpur Tannery

92, Gozmohal, Hazaribagh Dhaka- 1209. 93, Hazaribagh, Dhaka- 1209.

42.

M/S. Oversige Tannery

139, Hazaribagh, Dhaka- 1209.

Nasir Ullah

43.

M/S. Capital Tannery

94, Hazaribagh, Dhaka- 1209.

Master Sayead Ullah

44.

M/S. Naru Bhai Tannery

97, Hazaribagh, Dhaka- 1209.

Abu Kausar Jahangir

45.

M/S. Comilla Tannery

98, Hazaribagh, Dhaka- 1209.

Md. Nur Nabi

46.

M/S. Royel Tannery

100, Hazaribagh, Dhaka- 1209.

9228857

Md. Momin Ullah

47.

M/S. Juliet Enterprise

81, Hazaribagh, Dhaka- 1209.

8614354

Md. Shaidul Hoque Maste

48.

M/S. Lieen Enterprise

100, Hazaribagh, Dhaka- 1209.

8616975

Sha Emrean Photoeary

49.

M/S. Ibrasim Tannery

105, Hazaribagh, Dhaka- 1209.

Md. Israfil

50.

M/S. Shatter Tannery

105, Hazaribagh, Dhaka- 1209.

Ahdur Shatter

51.

M/S. Mother Tannery

104, Hazaribagh, Dhaka- 1209.

S M Awlad Hossain

52.

54.

M/S. Manik& Sohaj Brotgers 79/A, Hazaribagh, Dhaka- 1209. Tannery M/S. Anjuman Trading 79, Hazaribagh, Dhaka- 1209. Corporation M/S. Morshed Brothers Tannery 83/A, Hazaribagh, Dhaka- 1209.

55.

M/S. International Tannery

83, Hazaribagh, Dhaka- 1209.

56.

M/S. Mizan & Suman Tannery

89/1, Hazaribagh, Dhaka- 1209.

57.

M/S. Mamtaj Tannery

84, Hazaribagh, Dhaka- 1209.

Md. Jalal Uddion

58.

M/S. Jindhabad Tannery

84, Hazaribagh, Dhaka- 1209.

Md. Momin Ullah

59.

M/S. Muzaheed Tannery

80, Hazaribagh, Dhaka- 1209.

Balal Hossain

60.

M/S. Salam Tannery

75, Hazaribagh, Dhaka- 1209.

Md. Abdus Salam

61.

M/S, Bhi Bhi Tannery

64, Hazaribagh, Dhaka- 1209.

Md. Shakanter

62.

M/S. Jalal Tannery

117, Hazaribagh, Dhaka- 1209.

63.

M/S. Metto Tannery

67/2, Hazaribagh, Dhaka- 1209.

53.

Hossain Ahmed Md. Hanif Md. Sarij Miha

8628867

Mukbul Ahmed Md. Hanif

9662533

Md. Nur Nabi Md. Fazlu Miha

8611204

8118204

Md. Hossain

Sala uddion Jamal Ahmed


64.

M/S. Golden Leather Industries

65/2, Hazaribagh, Dhaka- 1209.

Md. Amir Hossain

65.

M/S. Islamia Tannery

65, Hazaribagh, Dhaka- 1209.

M SB Sala Ahmed

66.

M/S. Shahi Tannery

68, Hazaribagh, Dhaka- 1209.

Md. Samsul Islam

67.

M/S. Sodor Tannery

60, Hazaribagh, Dhaka- 1209.

68.

M/S. Hazi Mazharul Hoq Ltd

Md. Gopran

69.

M/S. Sumon Tanney

79/1, Water Workers Rd Posta, Dhaka- 1209. 57/2, Hazaribagh, Dhaka- 1209.

70.

M/S. Lakhi Tannery

68, Hazaribagh, Dhaka-1209.

Md. Shajahan

71.

M/S. A B S Tannery

42, Hazaribagh, Dhaka- 1209.

Md. Abu Bakker Siddque

72.

M/S. East Asia Tannery Ltd

73.

M/S. Phoenix Leather Complex

74.

M/S. Arafat Leather Complex

75. 76.

M/S. Marson Tannery M/S. Ashan Habibe & Brother

77.

M/S. Mamun Tannery

12/2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209. 180/C, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209. 6/1, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209. 45/1, Hazaribagh, Dhaka- 1209. 123/3 Sher-e- Bangla Rd Hazaribagh, Dhaka –1209. 91, Hazaribagh, Dhaka- 1209.

78.

M/S. Iland Tannery

122/A, Hazaribagh, Dhaka- 1209.

Md. Tajul Islam

79.

M/S. Udion Corporation

124/1, Hazaribagh, Dhaka- 1209.

Md. Amanat Hossain

80.

M/S. Reshni Complex

100/2, Hazaribagh, Dhaka- 1209.

9118857

Md. Humayan Kabir

81.

M/S. Latif Leather Complex

8612098

Md. Hamidul Islam

82.

M/S. J R Leather Export

83.

M/S. Hossain Brothers Tannery

83/1, Hazaribagh Dhaka – 1209. 42/10. Sonatongho , Hazaribagh Dhaka- 1209. 68/1, Hazaribagh, Dhaka- 1209

84.

M/S. Kalu Leather Corporation

43, Sher- E Bangla Road Hazaribagh, Dhaka- 1209

85.

M/S. Aziz Tannery

148/2, Hazaribagh, Dhaka- 1209

Samsur Rahman

86.

M/S. Globe Tannery Ltd.

M A Bari

87.

M/S. S & S Tannery

118, Sher-e- Bangla Road Hazaribagh, Dhaka- 1209 Hazaribagh, Dhaka-1209

88.

M/S. J A Leather

61, Hazaribagh, Dhaka-1209

Md. Abdul Ajij

89.

M/S. Johir Trading Industries

121/4, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209

Md. Johir

8625230

Md. Torea Ullah

Hazi Md. Shajahan

8625268

Md. Bajlur Rahman

8625268

Md. Bajlur Rahman

017- 524925

Hafaz Md. Mozzamal Hoq Md. Estak Ahmed Md. Akterurzzaman

9661733

Md. Mosaraf Hossain

Jamala Khatun 8613770, 042959 9667075

0175 Hossain Ahmed Bhuiyan Mahabub Alam

Md. Abdur Rahim


90.

M/S. H S Tannery

Hafez Ahmad

M.S. Zoobli Tannery

47, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 121/A, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 120/1, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 70, Hazaribagh, Dhaka-1209

91.

M/S. Chowdhury & Co.

92.

M/S. Jakir Hossain Tannery

93.

94.

M/S. Leather Complex Pvt. Ltd.

11, Kalu Nagar, Hazaribagh, Dhaka-1209

Md. Ibrahim

95.

M/S. T Ahmed Tannery

87, Hazaribagh, Dhaka-1209

Ali Ahmed

96.

M/S. Nabipur Tannery

141/A, Hazaribagh, Dhaka-1209

Md. Abdul Wahab

97.

M/S. Nobarun Tannery

56, Hazaribagh, Dhaka-1209

Md. Iqbal Hossain

98.

M/S. City Leather Tannery

Hazi Md. Ali

99.

M/S. New Kajol Tannery

101. M/S. Milon Tannery

30, Monesshore Road, Hazaribagh, Dhaka-1209 30/A Monesshore Road, Hazaribagh, Dhaka-1209 30, Monesshore Road, Hazaribagh, Dhaka-1209 58, Hazaribagh, Dhaka-1209

102. M/S. Moon Tannery

105/1, Hazaribagh, Dhaka-1209

Md. Abul Kashem

103. M/S T-Para Tannery

Md. Aminul Islam Babul

104. M/S. Kalam & Brothers Tannery

49, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 120/2, Hazaribagh, Dhaka – 1209

105. M/S. Mohin Tannery

59/1, Hazaribagh, Dhaka-1209

Abdul Odud Mia

106. Ms. United Tannery Ltd.

139, Hazaribagh, Dhaka-1209

107. M/S. M S Tannery

121/3, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 135/B, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 98, Hazaribagh, Dhaka-1209

Md. Sala Chowdhury Md. Ruhul Amin

100. M/S. Muslim Tannery

108. M/S. Abul Bashar Tannery

109. M/S. Dhaka Nagar Tannery

110. M/S. Jasim Tannery

Md. Hasan Chowdhury Md. Shekantor Hossain Nurul Haque

Sala Uddin Ahmed Hazi Somsher Ali Zohir Ahmad

Md. Abul Kalam

Uddi

Md. Abul Bashar Abul Hossain Sala Uddin

111. M/S. M I Tannery

30/3, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 122, Hazaribagh, Dhaka-1209

112. M/S. Komla Tannery

125/1, Hazaribagh, Dhaka-1209

Hazi Nurul Islam

113. M/S. Gokul Tannery

121, Hazaribagh, Dhaka-1209

Md. Mozammel Hossain

114. M/S. Bengal Peli Export Co.

94/1, Hazaribagh, Dhaka-1209

Md. Anwar Hossain

115. MS. Poiran Tannery

117/1, Hazaribagh, Dhaka-1209

Alhaj Md. Shofi Ullah

116. M/S. Alea Tannery

106, Hazaribagh, Dhaka-1209

Md. Nurul Huda

Hazi Ismail Hossain


117. MS. Iqbal Brothers Tannery

135/C-2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 24/C, Kalunagar, Hazaribagh, Dhaka1209

Md. Sasuddin Munshi

Major Monjur (Retd) M.P Hazi Md. Sofi

121. M/S. Miraz Leather Complex

25, Prominent Avenue, 3, PC Culture, Mohammadpur, Dhaka-1207 121/2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 13/1, Hazaribagh, Dhaka-1209

122. The Noakhali Tannery

Dotter Hat, Miazdi Court, Noakhali

Md. Moazzem Hossain

123. M/S. Ismail Leather Corporation

121/B, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 135, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 79, Water Works Road, Posta, Dhaka

Md. Ismail

House# 14, No.1 PC Culture Road, Mohammadpur, Dhaka-1207 111, Hazaribagh, Dhaka-1209

Hasan Showrozit

66, Hazaribagh, Dhaka-1209 115, Hazaribagh, Dhaka-1209

Hazi Monir Uddin Ahmad Md. Salim Md. Shahjahan Bhuiyan

132. M/S. Atique Leather Complex

71/4, Gozomohol, Hazaribagh, Dhaka1209 71/4/C, Gozomohol, Hazaribagh, Dhaka1209 54/2, Hazaribagh, Dhaka-1209

133. M/S. Greenwage Tannery

133/3, Hazaribagh, Dhaka-1209

134. Hena Leather

44/1, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 49/3, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 38, Sonatongor, Hazaribagh, Dhaka – 1209 116/B, Hazaribagh, Dhaka-1209

Md. Shirah-ud-doulla Bahar Md. Mozibur Rahman 44/1, Md. Zamadul Haque

118. MS. Mukta Tannery

119. Prominent Tannery Ltd.

120. M/S. Sayful Leather

124. M/S. Prince Tannery

125. M/S. Al-Hera Leather Industries Ltd. 126. M/S. Dincum Shoes Ltd.

127. Hi-tech Leather Complex Ltd. (Shohid Tannery) 128. M/S. Luna Tannery 129. Chrome-veg tannery Ltd.

130. M/S. Rubi Leather Complex

131. M/S. Salam Leather Corporation

135. M/S. Rabeya Khatun Tannery

136. M/S. H L Enterprise

137. M/S. Dil Bahar Tannery

138. M/S. S A Leather

139. R A N Leather

Sayed Md. Shahidullah

Md. Monir Hossain

Md. Zahangir Hossain Hafez Muzahidul Haque

Md. Mozaffar Hossain

Hazi Md. Abul Bashar Hossain Ahmed Bhuiyan

Md. Abul Hashem Md. Mostoffa Mia

44/C, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 44/B, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209

Md. Mozaffar Rahman Md. Masukur Rahman

Appendix A-7 Bangladesh Chemical Importers & Merchants Association 124, Hazaribagh, Dhaka-1209, Tel: 8622608 SL

Name of the Importer

Name of the Firm

Kade

Address


AIM Associate/ Imaco

124 Dhaka Tannery Market, Hazaribagh

2.

Md. Mizanur Rahman(Mesbah) Chairman (BCIMA) Md. Mohsin Bhuiyan

Latex Tradelink

20, Sher-e-Bangla road, Hazaribagh

3.

Md. Khasrul Alam

M/s Tanvir & Co

130 KohinoorTannery market, Hazaribagh

4.

Md Mokhlesur Rahman

5.

Md. Morshed Haider

Haider Traders

28, Sonatongar, Zikatola, Dhaka

6.

Md. Bulbul Aiub

B.N.C

3/6, Sonatongar, Zikatola, Dhaka

7.

Md. Tofail Ahmed

T.A Trading

130 KohinoorTannery market, Hazaribagh

8.

Md. Habibur Rahman

Rupsi Traders

124 Dhaka Tannery Market, Hazaribagh

9.

Hazi Rabiullah

Taj Chemical

124 Dhaka Tannery Market, Hazaribagh

10.

Md. Altaf Hossain

A.H Enterprise

99 Hazaribagh Dhaka

Chemitan Limited

124 Dhaka Tannery Market, Hazaribagh

12.

Mazakat Harun Manik General Secretary (BCIMA) Md. Azizul Haque Hawladar

Romo Enterprise

99 Hazaribagh Dhaka

13.

Maksudur Rahman Shopon

Gonipur Agency

87, Sher-e-Bangla road, Zikatola

14.

Mostofa Akter Hossain

Fair International

86, Sher-e-Bangla road, Zikatola

15.

Md. Abul Hossain

Labony Traders

124 Dhaka Tannery Market, Hazaribagh

16.

Abdur Rouf Sabuj

Chemirex International

20, Sher-e-Bangla road, Zikatola

17.

T.M Manjur Hossain

Mahai Trading

146 Hazaribagh Dhaka

18.

Md. Iunus Khan

165 Agrabad Chittagong

19.

Abu Musa

27 kalurghat Chittagong

20.

Md. Mijanur Rahman

130 Agrabad Chittagong

21.

Md. Amanullah

115, Sher-e-Bangla road, Khulna

22.

Md. KhodaBoks

23 Farajipara, Dalmil Road, Khulna

23.

Sirajul Islam

24/2 Azimpur, Dhaka

24.

Abul Khayer Bhuiyan

58, Terribazar, Chittagong

25.

Md Aiub Ali

155, Dewanhat, Chittagong

26.

Md. Alauddin Hawladar

Bibir Pukurpar, Barisal

27.

Md. Habibur Rahman Babul

Alokanda, Barisal

28.

Md. Sayedul Islam

49, Station Road, Dinajpur

29.

Azmal Hossain Bhoje

Talukdar Guest House, Syedpur, Nilphamari

30.

Md. Zahangir Hossain

6/1 Armanitola, Dhaka

31.

Md. Ainul Haque

10/2 Armanitola, Dhaka

32.

Rafiqul Islam Badal

23 TantiBazar Dhaka

33.

Md. Faruq Hossain

23 TantiBazar Dhaka

34.

Iliasur Rahman Badal

35.

Samsul Alam

20 Sena Kalyan Bhaban, Motijheel, Dhaka

36.

Md. Aworangojeb

53 Motijheel, Dhaka

37.

Shamim Iqbal

67 Motijheel, Dhaka

38.

Shahnewaj Khan

Borobazar Ananda Mahol, Mymensing

1.

11.

28, Sonatongar, Zikatola, Dhaka

M/s Ilias & Brothers

10 Chalk MughalTuli, Dhaka


39.

Md. Sadequr Rahman

10 Station Road, Mymensing

40.

Md. Selim Reja

Babubazar, Jessore

41.

Jafar Ahmed

Myzdi Court, Noakhali

42.

Abul Kalam Azad

26, Bangshal Road, Dhaka

43.

Abdur Rouf Mollah

31 Nyabazar Market, Dhaka

44.

Abdur Razzak Bishwas

35 Urdu Road Dhaka

45.

Hazi Bulbul Ahmed

35 Urdu Road Dhaka

46.

Md. Lutfur Rahman

14/15 Ispahani Building, Motijheel, Dhaka

47.

Md. Delwar Kader

6 Motijheel, Dhaka

48.

Md. Shakawat Hossain

49.

Amar Saha

50.

Abdus Sattar

51.

Monjurul Haque Niru

52.

Md. Dulal

53.

Md. Fazlul Mukit

Trade Exchange

20, Sher-e-Bangla road, Zikatola 130 KohinoorTannery market, Hazaribagh

M.A Corporation

9, Dewan monjil, Sonatongar, Dhaka

Progressive Leather & Footwear 20, Sher-e-Bangla road, Hazaribagh Co.

54.

Md. Zakir Hossain

55.

Md. Shafiqul Islam

56.

Md. Tarikul Islam (Mukul)

R.M International

124 Dhaka Tannery Market, Hazaribagh

57.

Khondaker Ahad Ahmed

Organo MultiTrade Int’l

H: 7, R: 4, Dhanmondi, Dhaka

58.

Abul Kalam Azad

A.T.L

143/A Hazaribagh

Md. Nurul Anwar

Exim Trade Int’l

950/B Yakub Building, Khatunganj, Chittagong 1/5 Mizan Tower, Kalyanpur, Dhaka

59. 60.

Md. Faruk Hossain

61.

Md. Rafiqul Islam Babul

M/s Link Int’l

20, Sher-e-Bangla road, Hazaribagh

62.

Hazi Md. Abdus Salam

B.S Trading Co.

143/A Hazaribagh, Dhaka

63.

Rawsan Uz Zaman

64.

T.M Delwar Hossain

Bangladesh Leather Syndicates

13 Sahjahan Tannery Block, Hazaribagh

65.

T.M Belayet Hossain

96/4 Monesshar road, Zikatola

66.

S.M Kamrujjaman

124/B Hazaribagh, Dhaka

67.

Sirajul Islam

SF Trading

130 KohinoorTannery market, Hazaribagh

68.

Md. Tarek Hossain

All Leather Trade

48, Sher-e-Bangla road, Hazaribagh

69.

Hazi Md. Yusuf

M/s Lipi Leather

115 Hazaribagh

70.

A.K Moniruzzaman

Romisa Int’l

124 Hazaribagh, Dhaka

71.

Moklesur Rahman Patwari

Milon Enterprise

124 Hazaribagh, Dhaka

72.

Abul Kalam Azad

Imon Trading Corp.

15/F Zikatola

73.

Md. Siddikur Rahman

Buckman Laboratories

15/F Zikatola

74.

Khaza Ahmed

Asia Trading Corp.

20 Sahjahan Tannery Block, Hazaribagh


Profile for Md Papon

The current market scenario and the future prospect of leather chemical industry of bangladesh  

ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has...

The current market scenario and the future prospect of leather chemical industry of bangladesh  

ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has...

Profile for md.papon
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