Bangladesh to become carmaker

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

The plant will also manufacture cars to be branded locally.

If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.

Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed it as a good sign for Bangladesh amid a sluggish foreign investment flow.

Cimillae Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate the investment implementation.

Abdul Mannan, managing director of Cimillae Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The company has already acquired land at Bhairab in Narsingdi for the plant.

Mannan said the plant will require two years to be set up. As many as 15,000 jobs will be created to run the car manufacturing plant.

CCGI Chairman Lee Young Choung said his company has already decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has plans to invest in 30 sectors in future.

Presently Japanese reconditioned cars dominate the Bangladesh market. Around 20,000 used cars are imported each year, while the number is 2,000 for brand new cars.

Some brand new carmakers like Ford have already initiated move to enhance their presence in Bangladesh.

Japanese Toyota still leads the market in both used and brand new car segments.

S: The Daily Star

10 more TV stations from Bangladesh

The information ministry has given provisional approval to launch 10 more private TV stations, a top government official told bdnews24.com on Monday.

The government has started giving them no-objection letters for getting on air, added the official, who spoke on condition of anonymity.

The approvals are first since the coalition government headed by Awami League took office in Jan 6 this year.

Another decision has been made to launch a terrestrial channel to air the parliament sessions, the senior official added.

The channels are Ekattur Television of Mozammel Huq Babu, Bijoy TV of Chittagong mayor A B M Mohiuddin Chowdhury, GTV owned by Gazi Golam Ashriar, Channel 9 of Syeda Mahbuba Akhter, Somoyer Television of Ahmed Zubair, Independent Television of Beximco Group, Machhranga Television owned by Anjan Chowdhury, ATN News of Mahfuzur Rahman, Mohona TV of Kamal Ahmed Majumder and My TV of Nasir Uddin.

Eleven private channels are already in operating other than the two run by the government–BTV and BTV World.

S; BDnew24.com

Duty-free access of Bangladeshi products to US market discussed

US Ambassador to Bangladesh James F Moriarty yesterday lauded the able and prudent leadership of Prime Minister Sheikh Hasina at the recently concluded 64th United Nations General Assembly (UNGA) session.

The appreciation came when the US Ambassador called on Prime Minister Sheikh Hasina at the latter’s office.

Moriarty said that the Bangladeshi premier’s participation at the UNGA and her speech on various crucial issues like climate change, food security, world economic recession and terrorism were highly acclaimed by the world leaders.

“Sheikh Hasina’s visit to the USA to attend the recently concluded UNGA session was fruitful as she had very successful interactions with world leaders, including President Barack Obama on various crucial issues which the present world is confronting with,” said James Moriarty.

After the meeting, Prime Minister’s Press Secretary Abul Kalam Azad briefed newsmen.

During the meeting, they discussed various issues including duty and quota free access to Bangladeshi products to US market, US investment to Bangladesh, food security, anti-terrorism activities and reopening of Dhaka-New York Biman flight.

In reply, the prime minister told the US envoy that she had fruitful talks with US President Barack Obama, Michelle Obama, Secretary of State Hillary Clinton and UN Secretary General Ban Ki-Moon on the sidelines of the UNGA session.

During the talks, she said that she had invited the US president and his wife to visit Bangladesh and they gladly accepted the invitation.

She said during the meeting with President Obama and leaders of UN Peace Keeping Contributing Countries in New York, matters of Bangladesh’s representation in UN peace keeping building and policy making levels as well as appointment of Bangladeshi officials at senior posts of the mission were discussed.

Besides, the Prime Minister sought US cooperation in fulfilling needs and problems of expatriate Bangladeshis in the USA.

Referring to Bangladesh’s existing political situation, the prime minister said the opposition should join the parliament session to speak for the people to fulfill their needs and problems.

“The opposition should join the current session of the Jatiya Sangsad to strengthen the parliamentary democratic system in Bangladesh and speak for their own people,” she added.

During the meeting, the prime minister expressed her satisfaction over the joining of Patrick Kennedy, son of former senator Edward Kennedy, in the Congressional Bangladesh Caucus in the US House of Representative saying that her family had relations with Kennedy’s family.

About bilateral relations, they said that excellent bilateral relations is existing between Bangladesh and the USA and expressed the hope that the relations would be further expedited in the days to come.

Principal Secretary to the Prime Minister MA Karim and Prime Minister’s Press Secretary Abul Kalam Azad were present on the occasion.

S: http://www.thedailystar.net

Bangladeshi Pharma industry set for expansion

Leading pharmaceutical companies are set to expand operations to meet local demand that industry insiders expect to double by 2015.

Eight in top 10 revenue earners of 2008 have laid out plans to increase production capacities. Industry leaders said greater public health awareness and investments boosted the sector, setting a new benchmark for turnover every year.

“Demand for pharmaceutical products in the domestic market is fast rising and this prompted us to go for expansion,” said Mizanur Rahman Sinha, managing director of Acme Laboratories Ltd. “I believe the local market for pharmaceuticals will double by 2015.”

“At the same time, we have to meet the Current Good Manufacturing Practices (CGMP) criteria, set by the World Health Organisation (WHO). With our present infrastructure, it is not possible to ensure international standards of compliance. So, we are going to set up a bigger and better factory to meet requirements,” he added.

Pharmaceutical and biotech firms have to follow the CGMP to ensure that products meet specific requirements for identity, strength, quality and purity.

According to the US Food and Drug Administration, the CGMP must be rigorously applied as products move forward in development.

Acme began work on its new Tk 215 crore manufacturing unit in 2008. Of the total funds, Tk 130 crore will come in the form of a syndicated loan, with Standard Chartered Bank as the lead arranger.

“We have already completed 60 percent of the work and we hope to begin operations by June 2010,” Sinha told The Daily Star.

Located in Dhamrai, Acme Specialised Pharmaceuticals Ltd will produce anti-cancer and anti-AIDS drugs, the market for which is now almost fully dependent on imports, in addition to other drugs.

A few local companies are now making cancer-resistant drugs at a time when cancer patients are on the rise in Bangladesh, according to industry people.

“This new unit will help enhance supply to both local and international markets by more than 20 percent from the first year of production,” said the Acme boss.

In fiscal 2008-09, Acme Laboratories, a leading medicine maker, recorded domestic sales worth Tk 400 crore, while it posted $1.2 million in exports.

Square Pharmaceuticals Ltd, a company with a 20 percent market share, is also undertaking massive expansion plans.

Ahmed Kamrul Alam, assistant general manager of Square Pharmaceuticals Ltd, said the main reason behind expansion is to gradually meet increasing local demand.

“In the past decades, health consciousness rose manifold, which also increased family expenditure on health care,” he said. “At the same time, an access to high-quality medicines widened for ordinary people.”

“In addition, we are expanding operations as our exports have grown.”

Square started work early this year on its Tk 500 crore manufacturing unit in Kaliakoir, just north of Dhaka. The first phase of construction will end by 2012. From then on, it will be able to increase output.

“We hope to complete the first phase of work by 2012. The complete expansion project would end by 2016,” said Alam. “We are to manufacture anti-cancer drugs and other pharmaceutical products in the new factory.”

Advanced Chemical Industries Ltd (ACI) is also to join the race to expand operations.

M Mohibuz Zaman, chief operating officer of ACI, said expansion was essential for the company to meet the CGMP.

The new factory worth around Tk 60 crore in Narayanganj is expected to start off by 2010. The annual turnover of the company was Tk 736.5 crore in 2008.

“The new factory would produce medicine solely for the domestic market,” said Zaman.

Eskayef Bangladesh Ltd, a leading pharmaceutical company in the country, completed work on its new factory.

“We completed work on our new plant that was commissioned by the Medicines and Healthcare Products Regulatory Agency (MHRA) of UK in August 2008,” said AM Faruque, managing director of Eskayef. “The company ensures a ’state-of-the-art’ facility for its manufacturing unit.”

Eskayef is the third company to obtain the MHRA certification, after Square Pharma and Renata.

Faruque, who believes the market will grow by nearly 15 percent in 2009, said sales reached $60 million in 2008 and the company plans to raise exports to $5 million in 2009 from $3 million a year ago. Eskayef has been growing at a rate of 30 percent for years.

The market size of the pharmaceutical industry currently stands at Tk 20,000 crore, said industry insiders. There are 250 small, medium and large local and multinational pharmaceutical companies operating in Bangladesh.

According to Intercontinental Marketing Services (IMS), a global pharmaceutical market intelligence agency, Eskayef, Renata, ACI and Drug International posted the best growth results among the top 10 companies in Bangladesh in 2008, while Square, Beximco, Incepta, Acme, Aristopharma, and Sanofi Aventis are other players that performed well.

Of the 250 companies, the top 10 — Square, Beximco, Eskayef, Incepta, Acme, ACI, Opsonin, Renata, Aristopharma and Drug International — take up nearly 70 percent of the total market, according to the IMS 2008 survey.

S: The Daily Star

Acme plans expansion with new Tk 215cr pharma unit

On completion of around 60 percent work, the new Tk 215 crore manufacturing unit of Acme Labora-tories Ltd plans to go into production next year.

Located at Dhamrai, the Acme Specialised Pharma-ceuticals Limited will produce anti-cancer and anti-AIDS drugs for the local market, now almost fully dependent on imports of such drugs.

However it will make other drugs too.

Cancer resistant drugs are now manufactured by one or two companies when cancer patients are on the rise in Bangladesh, according to industry people. “This new unit will help enhance our supply capacity to both local and international market by more than 20 percent from the very first year of production,” said Mizanur Rahman Sinha, Acme’s managing director.

The new one of his pharmaceutical conglomerate, which has a track record of producing a wide range of medicines across the therapeutic spectrum for both human and animal health, also targets exports of its produces to rich nations including USA and UK, Sinha added.

Presently, Acme medicines are exported to 11 countries with around 55 percent of such growth a year.

“We are trying very hard to ensure meeting international compliance, while constructing the new unit. At the same time, we are strictly maintaining the regulations of the exporting countries,” said the boss of the local second largest medicine maker.

“We hopefully will go into production by June 2010. Its process of setting up started in 2008,” Sinha told The Daily Star.

Of the total fund for the new plant, Tk 130 crore will come from a syndicated loan, raised by Standard Chartered Bank as lead arranger. A term-loan deal was signed yesterday.

“We put emphasis on ensuring good health for all by manufacturing ethical drugs of the highest quality at affordable prices and reaching out those even to the remotest areas by proper distribution network,” said Mizanur Rahman Sinha.

Common people often fail to get access to anti-cancer drugs because of their unavailability in the local market, he pointed out.

In fiscal year 2008-09, Acme Laboratories recorded a Tk 400 crore sales in domestic market, while it posted Tk $1.2 million exports.

“ Experiencing a success in the domestic market, ACME started its first international operation by exporting medicines to Bhutan in 1995,” said Sinha, adding: “The volume of sales has increased significantly with an average growth rate of 50 percent every year.”

Among the medicines exported, antibiotic, anti-hypertensive, anti-ulcerant and vitamin are remarkable.

South-East Asia, Africa, Middle East and the EU are among the Acme’s export destinations. Myanmar, Nepal, Sri Lanka, Pakistan, Afghanistan, the Philippines, Hong Kong and Vietnam are the countries where it exports regularly.

Source: The Daily Star

Dhaka Decided to connect with Asian Highway Network

The government has decided to connect Bangladesh with the proposed Asian Highway Network (AHN), Communications Minister Syed Abul Hossain said today.

After a meeting of the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP) Intergovernmental Agreement on the Asian Highway Network, Abul Hossain told reporters at his office that the decision would benefit the country.

“We will present the summary in the next cabinet meeting for the government’s approval. We would inform the government’s decision to the UN-ESCAP after approval,” the minister said.

“The agreement would be signed as per the routes proposed by the UN-ESCAP.

“If we can be connected with the Asian Highway Network, our communications and trade with Asian countries would be boosted. It would flourish our tourism industry,” Abul Hossain added.

The communications minister ruled out the possibility of having safety of Bangladesh endangered by the highway.

The proposed three routes are Benapole-Jessore-Kanchpur-Dhaka-Sylhet-Tamabil, Banglabandha-Hatikamrul-Dhaka-Kanchpur-Sylhet-Tamabil and Dhaka-Kanchpur-Chittagong-Cox’s Bazar-Teknaf-Myanmar border.

WiMax, international gateway for Bangladesh soon

Bangladesh Telecommunication Regulatory Commission is likely to introduce WiMax and international gateway technology soon, said its chairman Zia Ahmed today.

“Anyone can take licence for operating WiMax and IGWs as there is huge demand in the market,” Ahmed told reporters on the sidelines of a workshop on ‘Recent Trends in IP Telephony at Dhaka Sheraton Hotel.

He said the licence would be made available within three months after revising present International Long Distance Telecommunication Services (ILDTS) policy.

REVE Systems, a leading IP Telephony solution provider with customers in more than 50 countries, organised the workshop.

Private sector stakeholders now hold three IGWs and two WiMax licences. WiMax licences fixed up at Tk215crore through an auction by the BTRC last year.

No more privatisation of SoEs

The government will no more privatise state owned enterprises (SoE), as successful bidders have not been using the divested SoEs for purposes they had promised, said Industries Minister Dilip Barua yesterday.

Barua also suggested bringing down interest rates to single digits, as according to him, high interest rates are a major obstacle to the country’s industrialisation.

He announced that the government has no plan to allow more Export Processing Zones (EPZs) in the near future, rather it is interested in setting up Special Economic Zones (SEZs).

Barua said the government will also review whether some closed SoEs could be reopened for generating employment.

It will not allow SoE buyers to use divested land for real estate purposes, as many of them have been doing, violating privatisation policies, the minister added.

“We have no plan to privatise any more state owned enterprises for the time being,” Barua said while seeking opinions from entrepreneurs, government high-ups, industrialists, chamber leaders, and other stakeholders concerned at a consultation meeting for formulation of the industrial policy 2009.

Seventy six SoEs have been privatised so far since 1994, and most of the divested entities are being used for purposes other than the promised ones said officials of the Privatisation Commission (PC).

According to the privatisation policy, buyers of divested SoEs must commit to continue the operations of the enterprises and rejuvenate them, but in most cases they actually change the nature of the divested SoEs and start completely different businesses on purchased properties including lands.

At the meeting held in Sonargaon Hotel of the capital, Barua said the new industrial policy 2009 will be prepared on the basis of the industrial policy for 1996-2000.

Chairman of the Parliamentary Standing Committee on Industries Ministry Tofail Ahmed attended the meeting as chief guest.

Barua said the government will identify some sectors on priority basis to provide bank loans. “Interest rates of those loans will be at single digits.”

In the proposed policy the minister identified agro-based and agro-product processing industries, ship building, renewable energy, tourism, basic chemicals, dyeing, chemical products, computer software and ICT products, and highly value adding readymade garment (RMG) industry as thrust sectors.

The other industries identified as thrust sectors are active pharmaceutical ingredients, herbal medicine, polymer, plastic, jute, leather, hospitals and clinics, light engineering, cosmetics and toiletries, furniture, diamond cutting and polishing, and handicraft.

The proposed new industrial policy also identified 17 sectors as controlled industries, and four as preserved.

The preserved industrial sectors are arms and other military equipment, atomic power, security printing, and technology adoption for forests and protected forestlands.

Barua announced that the government will also formulate a policy for making sick industries profitable, but noted that ‘the government will not allow anyone to do business in the name of sick industries’.

“We may make it mandatory to buy local products for government procurement, for the betterment of local industries,” he added.

Tofail Ahmed emphasised on establishing more backward linkage industries for sustainable industrialisation and for employment generation.

He suggested fixing industry friendly duties on imports, and incorporating the opinions of many more stakeholders in formulating the final industrial policy.

He also urged the government to impose protectionist measures to save local industries. “Many developed countries in the world are practicing protectionism to save their products, and we also have to do so to save ours,” he said.

He also requested the government to formulate an industrial policy that will increasingly attract foreign investment.

Economists and chamber leaders in their instant reactions urged the government to be more cautious in selecting bidders for divestible SoEs, so that public entities are not misused.

Dr MK Mujeri, director general of Bangladesh Institute of Development Studies (BIDS), said the government should be more cautious in selecting bidders for divestible SoEs.

“If the government could run the industries efficiently, we would be able to generate more employment. We should select good entrepreneurs for selling the SoEs,” Mujeri said.

Syed Nasim Manzur, managing director of Apex-Adelchi Footwear Limited, urged the government to modernise the processes of privatisation.

The authorities sell the SoEs to highest bidders, but the government does not notice whether the buyers have the ability or the mentality to continue and rejuvenate the operations of the divested public entities, Manzur, who is also a vice-president of the Metropolitan Chamber of Commerce and Industries (MCCI), said.

“The criteria for selecting the bidders should be modernised,” he said.

S: The Daily Star

Four Bangladeshi pharma firms’ double-digit sales growth

Four pharmaceutical companies out of top ten Bangladeshi companies achieved double-digit growth in sales during the January-March period of this year, said global pharmaceutical market intelligence agency IMS in its first quarter report. The report published recently said the fifth largest pharmaceutical company in the country Eskayef posted the best 21.12 percent growth followed by Renata 16.19 percent, ACI 16.17 percent and Drug International 13.79 percent.

IMS is the global source for pharmaceutical market intelligence. It provides critical information, analysis and services that drive decisions and shape strategies of the pharmaceutical companies. It publishes such report regularly and pharmaceutical companies in the world uses the report in optimising portfolios, ensuring successful launches, managing brands and improving the effectiveness of sales teams. The other players Incepta Pharma achieved 6.77 percent growth and Square Pharma only 2.32 percent. Two other members on the top ten companies’ list, Beximco experienced a huge 42.04 percent fall in growth, while Acme faced a 4.89 percent fall in growth during the period.

According to the IMS report, Square continued as the top player of the market with a 18.77 percent share and Tk 181.04 crore sales in the first quarter. Despite a huge fall in sales and other performance, Beximco ranked second with a 6.94 percent market share and Tk 66.96 crore sales during the period.
Incepta Pharma ranked the third largest pharma company with a7.82 percent market share and sales of Tk 75.39 crore. Acme stood fourth with Tk 51.73 sales and 5.36 percent market share, Eskayef ranked fifth with Tk 51.61 crore sales and 5.35 percent market share.

Drug International, ACI, Aristopharma, Renata, Sanofi Aventis ranked sixth, seventh, eighth, ninth and tenth respectively in terms of sales and market share. The total market share of the top ten companies is around 63.83 percent. According to the IMS report, the overall sales of the industry reduced by Tk 17 crore during the first quarter of 2008 compared with the previous year. The overall sales of the industry reached Tk 964 crore during the January March period, 2008 while the sales was Tk 981 crore the previous year.

The Industry leaders admitted the fall in sales of the products, blaming the government’s over regulation and sometime unwanted interruption. M Shafiuzzaman, president of the Bangladesh Association of Pharmaceutical Industries (BAPI), said it is not important how the growth of sales has increased or decreased, but it is most important that how the industry became matured in terms of quality of the products.

“The improvement in overall quality of medicine will help grab the international market swiftly besides expanding local market,” he added.

Source:jasim@thedailystar.net http://thedailystar.net/story.php?nid=43304

Bagerhat based firm starts exporting coconut yarn

A Bagerhat-based firm has started exporting coconut yarn on limited scales to South Korea and Nepal, a non-traditional item in the country’s ‘not-so-rich’ export basket.

Nurjahan Agro Processing Industries (Pvt) Limited uses coconut husks to manufacture different types of yarn meant for export. Coconut yarn-made rope, also known as coir yarn, is being exported to South Korea. Coir yarn is used in agriculture, especially for growing hops, a climbing plant that is a major ingredient in beer, giving the drink its bitter taste.

Around 76 percent of the country’s total export earning comes from the apparel industry. Other major export items include shrimp and jute products, while other non-traditional items include atar (traditional perfume), pearl, honey and sauce. In July-March period of 2007-08 fiscal year, Bangladesh earned Tk 14.45 crore. The company began exports seven months ago and till now has exported coir yarn worth Tk 17 lakh to South Korea. It also received export orders worth Tk 1.8 crore for the next year. Simultaneously, it exported four tonnes of curl yarn worth Tk 5.4 lakh to Nepal and received orders for Tk 12 lakh for the next year. “Husk is a by-product of coconut and is presently disposed of in the country. We are exporting this product with substantial value additions,” said Mir Alamin, managing director of the company. The size of the global coir market is estimated at $ 5 billion. The Philippines, Indonesia, Sri Lanka, Mexico, India, Vietnam, Papua New Guinea and Brazil are the major exporters of the product in the global scenario.

Alamin is also producing nata de coco, a jelly like substance, made from coconut water, in the country for the first time. This is mostly used as a confectionary ingredient (litchi flavour) and five-star hotels are the main customers of this product. They supply 50 tonnes of nata per month to the local market and the cost of each tonne is Tk 70,000, according to the company officials. Nurjahan Agro receives financial assistance from Palli Karma Sahayak Foundation (PKSF) and from their partners, Habitat and Economy Lifting Programme (HELP), a local NGO. Alamin, who attended a coconut conference in Colombo in 2002, feels that Bangladesh is ignorant of the numerous uses of coconut husk.

In the near future, they will manufacture coconut husk mattresses, as there is a huge demand in the domestic and international markets. Currently, the country imports mattresses from Sri Lanka and India at $10 per square feet. The company also wishes to produce vinegar, using coconut water as the best type of vinegar is produced with coconut oil. “Coconut oil factories just throw out coconut water, which can be used to produce vinegar,” said Hasan Alfi, an official of HELP.

kawsar@thedailystar.net http://www.thedailystar.net/story.php?nid=41982