AKIJ Ceramics hold bright prospects
AKIJ Group MD tells The Daily Star
The ceramic tiles industry in Bangladesh has immense growth prospects owing to the production of high quality products at competitive prices, said a noted entrepreneur.
Currently, locally produced ceramic tiles are competitive in terms of cost with those made globally. Additionally, the quality is better than that of tiles made in countries such as China.
Sk Bashir Uddin, managing director of AKIJ Group, said that the company is always striving to be better than their competition and they are constantly introducing new technologies to meet global standards.
The group only made foray into the ceramic industry five years ago to tap into both the growing domestic and international markets; however, in such a short time, they have managed to leave a significant impression.
AKIJ Group is a ceramic tiles manufacturing company located in Bangladesh. It started with a daily production capacity of 220,000 square feet and now produces 500,000 square feet of tiles daily. The company was the first to introduce digital printed tiles in the market and has also started exporting tiles, albeit irregularly.
“We think that irregular efforts will eventually be converted into regular exports,” said Bashir.
“What we are trying to do is to have a comprehensive ceramic plant where we will be making tiles, sanitary ware and eventually insulators for electrical transmission lines. Of them, tableware will be largely export-oriented,” he said.
According to Bashir, table wares have a huge export opportunity compared to other products because they are manually processed.
“It is very labour-intensive and anything labour-intensive has an opportunity in Bangladesh,” he added.
“By having tiles, sanitary ware and tableware in our product range, we believe that we will soon become the biggest exporter of ceramics in Bangladesh and gain a respectable reputation within the country,” said Bashir.
One of the reasons AKIJ has decided to enter the ceramic industry is to provide a one-stop-shop for building materials. The group already produces cement and is in the process of making steel.
The current market for building materials is valued at Tk 45,000 crore annually, and this estimate excludes glass wares according to AKIJ Group.
“From our research and surveys, we predict that there will be a significant increase in demand for building materials in the near future,” said Bashir.
He attributes this growth to the recent rise in public sector construction and the consequent increase in cement consumption.
Bashir said that the number of households in Bangladesh will increase from 3.2 crore to 4.3 crore by 2025, citing a survey by the Bangladesh Bureau of Statistics. He added that households are gradually shifting from wooden and corrugated sheets to brick and concrete houses. By 2025, 24 percent of all households in Bangladesh will be brick-built, compared to only 13 percent in 2011.
“So, we foresee a good demand for building materials,” said Bashir.
Sk Akij Uddin’s son, Bashir, manages AKIJ Group’s more than 20 businesses, which include jute, textile, particle board, food and beverage, tobacco, plastic, cement and ceramics.
The group’s founder started his journey with only 17 rupees in capital 75 years ago. Now the group’s annual gross turnover is $1.5 billion, including $200 million from exports. It employs more than 30,000 people.
Bashir said the primary enablers for the group’s success are reinvestment of retained earnings, ensuring financial discipline and having a dedicated human resources base.
“These factors have largely enabled the group to grow,” said Bashir, who wants to create jobs for 100,000 people in the coming days.
He said his father believed that there were two kinds of companies in the world.
“In one type, owners are rich but the companies are poor, while in the other, owners are poor but the companies are rich,” said Bashir.
Bashir’s father believed that there are two types of companies in the world: those where the owners are rich but the company is poor, and those where the owners are poor but the company is rich. Bashir wants to create jobs for 100,000 people in order to make a difference in the world.
At AKIJ Group, shareholders receive a fixed salary like any other employee – meaning that the company’s wealth doesn’t just benefit those at the top.
“So, Akij is a company where the company is rich but the owners are poor,” said Bashir.
He said that reinvesting retained profits allows Akij to expand its business and employ more people.
“We are in an expansionary mode. Every year we are building something.”
Most recently, it set up a flour mill with a daily production capacity of 1,300 tonnes.
Bashir is optimistic about Bangladesh’s economy and its potential for growth. He urges the authorities to take action in key areas such as improving infrastructure, ensuring an adequate energy supply, curbing corruption, and creating a more supportive regulatory environment for businesses.
He also shared his vision for AKIJ GROUP, saying that he wants it to be “the most respected company in the country.” This, he explained, is more important to him than making the Group the richest organization in Bangladesh.
