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An overview of Bangladesh furniture industry

Contents
Source of the news Furniture industry in Bangladesh Major furniture industry in Bangladesh Average sales and profit among different classes of furniture manufacturer Earning Per year by the Exporting Opportunity Threats Question session

Source of the news

Furniture industry in Bangladesh


Traditionally furniture industry in Bangladesh developed as cottage based industry It is in 1990s when the furniture industry in Bangladesh has transited from cottage based industry to mechanized mass production oriented industries. The export of furniture products from Bangladesh started from 1995 Government of Bangladesh has declared the furniture industry as a Thrust Sector There are 15 large Furniture companies are doing their business in the country which includes Otobi, Navana, Hatil, Akhtar, Partex, Brothers etc .

Major Furniture Industry


Table -01

Basic information of Otobi Limited


Established Product profile Annual production volume Countries exported to Potential export destination 1975 Wooden, Melamine Laminated Chip Board, MDF, Cane and Metal furniture. BDT 6,600,000,000 India Africa, Canada, Middle East, UK, USA.

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Major Furniture Industry(Cont.)


Table -02 Basic information of PARTEX Furniture Industries Ltd.
Established Product profile Annual production volume 1991 Wooden furniture, Laminates Board furniture, Upholstery (Tubular Metal) furniture, Steels and Metal furniture. BDT 1,500,000,000

Countries exported to
Established

India
1991

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Major Furniture Industry(Cont.)


Table -03 Basic information of NAVANA Furniture Limited
Established Product profile Annual production volume Countries exported to Potential export destination 2001 Home furniture, office furniture, project furniture, doors, wardrobes, sawn timber BDT 1,200,000,000 India European countries and Middle East

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Major Furniture Industry(Cont.)


Table -04 Basic information of Akhtar Furnishers Ltd.
Established Product profile Annual production volume Countries exported to Potential export destination 1976 Wooden, Melamine Laminated Chip Board and MDF BDT 120,00,00,000 Australia, UK, USA USA, UK, UAE

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Average sales and profit among different classes of furniture manufacturer


Table -05
Firm size Numbers of Enterprise Average Annual Sales (BDT) 1,877,400 5,118,333 8,571,429 19,350,000 104,100,000 21.6 25.74 29.67 32.10 35.80 Gross Profit (%) Micro Small MSM 2 MSM 1 Large 7,961 1,676 276 40 35 9.87 12.41 14.67 15.1 15.8 Net Profit (%)

Source: Export data has been compiled fromhttp://bfidexpo.com/furniture_association.php (accessed on 15 May 2012),

Earning Per year by the Exporting


Earnings from furniture exports grew by 27 per cent to $ 27.14 million in last fiscal year (2012-2013) exceeding the target of $22.45 million, officials said. Bangladesh earned $ 21.38 million through furniture export in 2011-12 fiscal year, according to a data of the Export Promotion Bureau (EPB).

Opportunity
Low labor cost Use of latest mechanism and technology Packet base product

Threats
Furniture associations of Bangladesh participated in several fairs in Japan. Recent fair in Japan took place 2012; but the outcome of that fair is not as expected. One of the main reasons is the weakness of design of furniture products manufactured in Bangladesh. At present, there are no rules and regulation addressing standard of products from furniture sector is available Furniture industry is facing face shortage of wood supply from domestic forest. This is one of the great threats to the industry.

Question Session