Meghna Ceramic Industries, a concern of the Meghna Group of Industries (MGI), has boosted its production capacity with a $45 million investment to capture a larger share of the growing $500 million tile market.
Since July last year, the company’s factory in Ashariar Char, Narayanganj, has been producing 51,000 square meters of “Fresh Ceramics” tiles per day, up from 31,000 square meters a year ago, said Assistant General Manager Rajib Bhattacharjee.
Of the $45 million investment, $19 million came from MGI’s own funds, and $26 million was secured through a syndicated loan. Prime Bank arranged the loan, contributing $4 million, while the Islamic Corporation for the Development of the Private Sector provided $22 million. The loan, repayable in eight years with a one-year grace period, carries an interest rate of 3.75 percent plus the Secured Overnight Financing Rate (SOFR).
Read more: Silicon Valley’s GFR Fund Explores Promising Investment Landscape in Bangladesh
“The syndicated loan was used to import sophisticated machinery from Europe,” Bhattacharjee said.
With this investment, MGI has invested a total of $100 million into the facility, which employs over 400 people and utilizes technology from the US, Germany, Italy, and China. The initial $55 million investment in 2021 included a $20 million syndicated loan arranged by Prime Bank.
The expansion aims to capitalize on the growing ceramic industry driven by increasing consumer spending and rapid urbanization over the past decade, Bhattacharjee noted. Bangladesh’s demand for ceramic tiles is rising due to urbanization and steady economic growth.
According to the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), local and international companies have invested $1.58 billion in the ceramics sector, directly employing nearly 20,000 people. Of this investment, 62 percent, or $979 million, is for tile production. The country has 31 ceramic tile manufacturing facilities with an annual production capacity of 20.70 million square meters. In the fiscal year 2022-23, an estimated $633 million worth of tiles were sold in Bangladesh.
Read more: Transcom Digital Announces “Dream Exchange Offer” Campaign Winner
The local ceramic industry meets 80 percent of the total domestic demand for ceramic products, with an average annual growth rate of about 15 percent since the fiscal year 2015-16, according to the BCMEA.
“This strategic investment recognizes the market demand and growth opportunities for ceramic products,” said Shams A Muhaimen, Deputy Managing Director of Prime Bank. “The ceramic tiles industry in Bangladesh shows strong demand fueled by urbanization, infrastructure development, and a growing construction sector, making the project commercially viable.”
With a diversified product portfolio and expanding production capacity, MGI is well-positioned to capitalize on market demand and drive further growth and profitability. MGI’s extensive distribution network across the country provides an additional competitive edge.
Source: The Daily Star
