To Study the Current Market
Scenario and the Future Prospect
of the Leather Chemical Industry of
Bangladesh
1
“To Study the Current Market Scenario and the
Future Prospect of Leather Chemical Industry of
Bangladesh”
Internship Report
Submitted To:
MR. AZMAL HOSSAIN
Executive Director
ACI Trading Limited.
Submitted By:
Mohammad Tawhid Reaz
Internee,
ACI Trading Limited.
ADVANCED CHEMICAL INDUSTRIS LIMITED
245, Tejgaon Industries Area,
Dhaka- 1208.
Date: 25 June, 2006.
2
June 24, 2006
Mr. Golam Mohammed Chowdhury
Chairman
Internship & Placement Office
Institute of Business Administration
University of Dhaka
Dhaka-1000
Dear Sir:
Subject: Internship Report on
“To study the current market scenario and the future prospect of the leather chemical
industry of Bangladesh”.
It is my pleasure to present this Report on “To study the current market scenario and the future
prospect of the leather chemical industry of Bangladesh ” as a requirement for completing my Masters
in Business Administration with concentration in Marketing. The report presents my findings
and analyses on the Leather chemical industry of Bangladesh and the project I worked on for
the last 10 weeks in ACI Trading Limited.
I am grateful to you and my supervisors; Mr. Mustaque Ahmed, Assistant Professor,
IBA and Dr. Azmal Hussain, Executive Director, ACI Trading Limited, for giving me the
opportunity to carry out this report.
With kind regards
Sincerely yours,
Mohammad Tawhid Reaz
Roll 037
Batch 38
MBA Program
Institute of Business Administration
University of Dhaka
3
Acknowledgement
In preparing this report for ACI Trading Limited, I Have received commendable support
from all the employees of Leather division of ACI Trading Limited.
I am very much grateful to my organizational supervisor Mr. Azmal Hossain, Executive
Director, ACI Trading Limited, to give the opportunity to work on such a challenging
project. He has given me all kind official support to complete the report perfectly.
I like to thank Mr. Saiful Azam Kashem, Senior Technical Sales Officer, Mr. Munirul
Islam, Technical Sales Officer and Mr. Abul Khayer of ACI trading limited for helping me
in every aspect for the completion of the report.
I am very much indebted to my supervisor Mr. Mustaque Ahmed, Assistant Professor, IBA,
University of Dhaka for giving me direction at different times to prepare this report. It is
his guided supervision that resulted in successful completion and timely submission of the
report.
I am thankful to my friend Mr. Fahim bin Asmat, Program Assistant, Leather Sector
Business Promotion Council (LSBPC) to let me study their valuable research reports and
guide me with his expert opinion.
I also like to thank all the librarians of various libraries to let me utilize their library
facilities, all the experts, members of different leather and tanners associations, and all the
other interviewees to help me with their resourceful contribution. (N.T: Name of the main
interviewees and the organization visited for completing this report is given in Appendix)
4
June 25, 2006
Mr. Azmal Hossain
Executive Director
ACI Trading Limited
Dear Sir:
Subject: Internship Report on
“To study the current market scenario and the future prospect of the leather chemical
industry of Bangladesh”.
It is my pleasure to present this Report on “To study the current market scenario and the
future prospect of the leather chemical industry of Bangladesh” as a requirement for
completing my Masters in Business Administration (MBA) program with concentration
in Marketing. The report presents my findings and analyses on the Leather chemical
industry of Bangladesh and the project I worked on for the last 10 weeks in ACI
Trading Limited.
I am grateful to you for your organizational co-operation as an organizational
supervisor and to my supervisor; Mr. Mustaque Ahmed, Associate Professor, IBA and
Prof. Golam Mohammed Chowdhury, Chairman, Placement & Internship Program,
Institute of Business Administration for giving me the opportunity to carry out this
report.
With kind regards
Sincerely yours,
Mohammad Tawhid Reaz
Roll 037
Batch 38
MBA Program
Institute of Business Administration
University of Dhaka
5
TABLE OF CONTENTS
Pg.
EXECUTIVE SUMMARY
1
CHAPTER ONE
1.
1.1.
1.2.
1.2.1
1.2.2
1.3
1.4
1.5
3
INTRODUCTION
ORIGIN OF THE REPORT
OBJECTIVE
BROAD OBJECTIVE
SPECIFIC OBJECTIVES
SCOPE OF THE RESEARCH
METHODOLOGY
LIMITATIONS
3
3
3
3
3
4
4
5
CHAPTER TWO
6
2.
2.1.
2.1.1
2.1.2
2.1.3
2.1.4
ABOUT THE ORGANIZATION
COMPANY PROFILE AT A GLANCE
2.2
2.3
2.4
2.5
2.6
2.7
BACKGROUND
2.7.1
2.7.2
2.7.3
2.8
2.9
2.10
2.11
2.12
2.13
ACI PHARMACEUTICALS
ACI TARDING LIMITED
10
10
10
11
11
12
12
13
15
2.13.1
ORGANOGRAM- BUSINESS MANAGEMENT
16
STRATEGIC BUSINESS UNITS
SUBSIDIARIES
EXECUTIVE MANAGEMENT
FINANCIALS (YEAR ENDING DEC,
2004)
6
6
6
6
7
7
8
8
8
9
9
10
COMPANY MISSION
COMPANY VISION
VALUES
DISTRIBUTION NETWORK
BUSINESS UNITS
ACI CROP CARE AND PUBLIC HEALTH DIVISION
ACI CONSUMER BRANDS
MANUFACTURING STANDARDS
DIVERSIFICATION INTO NEW INDUSTRIES
ACI FORMULATION LIMITED
QUALITY POLICY
BUSINESS PERFORMANCE AND GROWTH SCENARIO OF ACI LIMITED
6
2.13.2
2.13.3
ORGANOGRAM- BUSINESS SUPPORT FUNCTIONS
2.13.4
2.13.5
MISSION
2.13.6
2.13.7
2.13.8
2.13.9
2.13.10
INDENT SALES GROWTH FROM
2.13.11
2.13.12
2.13.13
2.13.14
KEY DIFFERENTIATING FACTORS THAT ATTRACTS CUSTOMERS
ORGANOGRAM OF ACI TRADING LIMITED (FOCUSING LEATHER
CHEMICAL DIVISION)
16
17
18
18
STRATEGIC OBJECTIVE
2002-2005 & BUDGET 2006
2002-2005 & BUDGET 2006
PROFIT & LOSS BUDGET 2006
EX-STOCK SALES GROWTH FROM
SWOT ANALYSIS OF ACI TRADING LIMITED
BUSINESS STRATEGY
PRODUCTS, CUSTOMERS
& SUPPLIER BASE UP TO 2005
2005
INITIATIVE TO BE TAKEN IN 2006
MAJOR DEVELOPMENT THROUGH INITIATIVE IN
CHAPTER THREE
18
19
20
21
21
22
22
23
23
24
3.
LEATHER INDUSTRY OF BANGLADESH
24
3.0
3.0.1
3.0.2
3.0.3
3.0.4
LEATHER INDUSTRY BACKGROUND
24
24
24
25
25
THE LEATHER INDUSTRY IN BANGLADESH
THE BEGINNING OF THE TANNERY
POST LIBERATION PERIOD
PRESENT CONDITION
CHAPTER FOUR
27
4.
PRODUCTION
27
4.0
LEATHER SECTOR IN THE ECONOMY OF BANGLADESH
27
CHAPTER FIVE
31
5
LEATHER EXPORT
31
5.1
5.2
LEATHER EXPORT PERFORMATION OF BANGLADESH
SALES & EXPORTS OF LEATHER SECTOR ENTERPRISE/FIRMS
31
34
7
5.2.1
5.2.2
5.2.3
SALES & EXPORTS: LEATHER PROCESSING
SALES & EXPORTS: FOOTWEAR
SALES & EXPORTS: LEATHER GOODS
CHAPTER SIX
35
36
36
39
6
RAW MATERIALS
39
6.1
6.2
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.3
RAW MATERIALS USED BY THE LEATHER FIRMS
RAW MATERIALS: LEATHER PROCESSING
RAW MATERIALS FOR WET BLUE
RAW MATERIALS FOR CRUST
RAW MATERIALS FOR FINISHED LEATHER
RAW MATERIALS: FOOTWEAR
RAW MATERIALS: LEATHER GOODS
AVAILABILITY OF RAW MATERIALS IN BANGLADESH
40
40
40
41
43
43
44
45
CHAPTER SEVEN
46
7
SWOT ANALYSIS
46
7.1
7.1.1
7.1.2
7.1.3
STRENGTHS
STRENGTHS OF THE FIRMS: LEATHER PROCESSING
STRENGTHS OF THE FIRMS: LEATHER FOOTWEAR
STRENGTHS OF THE FIRMS: LEATHER GOODS
46
46
47
48
7.2
7.2.1
7.2.2
7.2.3
WEAKNESSES
WEAKNESSES OF THE FIRMS: LEATHER PROCESSING
WEAKNESSES OF THE FIRMS: LEATHER FOOTWEAR
WEAKNESSES OF THE FIRMS: LEATHER GOODS
50
50
51
52
7.3
7.3.1
7.3.2
7.3.3
OPPORTUNITIES
OPPORTUNITIES OF THE FIRMS: LEATHER PROCESSING
OPPORTUNITIES OF THE FIRMS: LEATHER FOOTWEAR
OPPORTUNITIES OF THE FIRMS: LEATHER GOODS
53
53
54
55
7.4
7.4.1
7.4.2
7.4.3
THREATS
THREATS OF THE FIRMS: LEATHER PROCESSING
THREATS OF THE FIRMS: LEATHER FOOTWEAR
THREATS OF THE FIRMS: LEATHER GOODS
56
56
57
59
8
CHAPTER EIGHT
60
8
PRODUCTION STAGES
60
8.1
8.2
8.3
8.3.1
8.3.2
8.3.3
PRODUCTION STAGES IN LEATHER PROCESSING INDUSTRY
PRODUCTION STAGES IN LEATHER GOODS & FOOTWEAR INDUSTRY
60
61
62
62
63
64
DESCRIPTION OF THE VARIOUS STAGES OF LEATHER PROCESSING
WET BLUE SECTION
CRUST SECTION
FINISHING SECTION
CHAPTER NINE
65
9.0
LEATHER CHEMICALS & ACCESSORIES
(DATA COLLECTED FROM PRIMARY SURVEY)
65
9.1
9.1.1
9.1.2
9.1.3
9.2
9.3
CHEMICALS
& ACCESSIORIES: LEATHER SECTOR
CHEMICALS: LEATHER PROCESSING: WET-BLUE
LEATHER PROCESSING: CRUST LEATHER
LEATHER PROCESSING: FINISHED LEATHER
CHEMICAL AND ACCESIORIES : FOOTWEAR
CHEMICAL AND ACCESIORIES : LEATHER GOODS
66
66
68
69
70
72
CHAPTER TEN
10.0
73
MAJOR PLAYERS OF THE LEATHER CHEMICAL INDUSTRY
73
(DATA COLLECTED FROM PRIMARY SURVEY)
73
10.1.1
10.2
10.2.1
MARKET SHARE OF MAJOR BEAM HOUSE CHEMICAL SUPPLIERS
(WET BLUE)
TOTAL QUANTITY WISE MARKET SHARE (WET BLUE)
MARKET SHARE OF CHEMICAL SUPPLIERS (WET BLUE TO CRUST)
TOTAL QUANTITY WISE MARKET SHARE (CRUST)
10.3
10.3.1
MARKET SHARE OF CHEMICAL SUPPLIERS (CRUST TO FINISH)
TOTAL QUANTITY WISE MARKET SHARE (FINISHING)
80
80
10.1
CHAPTER ELEVEN
11
76
77
79
81
FINDINGS AND RECOMMENDATIONS
9
81
11.1
PROBLEMS OF
MARKETING
ACI
TRADING
AND
STAHL
INLEATHER
CHEMICAL
83
APPENDIX A1
APPENDIX A2
APPENDIX A3
APPENDIX A4
APPENDIX A5
APPENDIX A6
APPENDIX A7
APPENDIX B
APPENDIX C1
APPENDIX C2
85
REFERENCES
118
10
91
92
95
96
98
107
111
113
117
Executive Summary
The history of the leather sector and tannery industry in Bangladesh started when R.P Saha set up
first tannery in Narayanganj back in 1940. It was later shifted to Hazaribagh area of Dhaka, which
turned into a location that now accommodates a large number of tannery units of the whole country.
At present, the leather sector of Bangladesh has 220 processing units located at different parts of the
country (mainly in Hazaribagh, Dhaka). But only 28 tanneries are in operation, among them 20 are
operating in crust section and 8 are in finishing section.
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. Bangladesh currently produces about 20.0 million
sq. meters of leather and leather goods per year. 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.
According to Leather Sector Census Study,2005 total production of wet blue leather in 2003 was
3,50,60,000 square feet, crust leather 6,61,72,000 square feet, finished leather 13,48,20,000 feet,
whereas 1,67,66,000 pairs of leather footwear were produced in 2003 and 766000 pieces of leather
goods were produced in 2003. In 2004, 247 million square feet raw hides were available for the
leather industry, among which cow and buffalo hides were 184 million square feet and goat and
sheep skin were 6 million sq.ft. According to a report published by FAO in 2003 the numbers of
bovine animals in Bangladesh were 2,48,30,000 in 2002; the number of sheep and lambs were
11,43,000 and there were 3,44,00,000 goats and kids in Bangladesh.
Bangladesh has exported leather and leather goods worth 220.93 Mn. US$ in 2004-2005, whereas it
has exported 211.41 Mn. US$ valued leather and leather goods in 2003-04. The export target for
2005-06 is 235 Mn.US$ in which the export performance achieved in July2005-November2005 was
96.21Mn. US$. Total export of Bangladesh in 2004-05 was 8654.52Mn. US$, so the contribution of
the leather sector export to the total export was 2.55% in 2004-05. The main exporting countries are
Hong Kong, Italy, Japan, Vietnam, Republic of Korea, Taiwan etc.
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, Kushtia, 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. Wet blue, raw materials for producing
crust is mainly collected from local sources particularly from Dhaka. A small quantity of wet-blue
11
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) were imported from South Africa, Australia, and Brazil. 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.
There are hundreds of importers, merchants and suppliers are supplying chemicals required for the
whole leather industry. The processing of raw hides to finished leather mainly classified into three
different stages 1) Wet Blue, 2) Crust and 3) Finishing section.
In 2003, 3202MT (worth 8,46,23,000Tk) leather chemical used for wet blue leather stage in
Bangladesh. In which 1956MT (worth 2,06,85,000Tk) was local made and 1274MT (worth
6,39,38,000Tk) was imported. In the same year 901MT (worth 119041000Tk) chemical used in
crust stage, in which 885MT was foreign supply and 16MT was local supply. On the other hand
130 MT (worth taka 46468000) chemical used for finishing section, in which 120MT collected
from outside and 10MT was collected from local sources.
The major chemical suppliers are Germany, Holland, UK, Italy, and India. Recently local
merchants are also importing from China, Singapore etc.
In addition of finding out the whole scenario of the leather sector of Bangladesh, this study mainly
focused to identify the major chemical suppliers in the different stages of leather processing. To
find out the main chemicals required in various stages of finished leather production was also the
prime consideration of this study. The market share contributed by the suppliers in various stages
was the main finding of this report. Along with primary and secondary survey, in depth interview
and Expert opinions have been taken for the final modification and recommendation of the whole
research. Why the big suppliers are loosing their market and why small and new suppliers are doing
well and getting the market acceptability has also been discussed in this research material.
12
Chapter-One
Introduction
1.1. Origin of the Report
This internship report was prepared as a compulsory requirement for the MBA degree.
From the program office of the Institute of Business Administration (IBA), I was placed as
an intern in ACI trading limited. The project is titled “To study the current market scenario
and the future prospect of the leather chemical industry of Bangladesh”. The project was
assigned to me by my supervisor at ACI Trading Limited, Mr. Azmal Hossain, Executive
Director of ACI Trading Limited. It was overseen by my faculty advisor Mr. Mustaque
Ahmed, Associate Professor, Institute of Business Administration, University of Dhaka.
1.2. Objective
1.2.1 Broad Objective
To understand the current market situation and the future business prospect of the leather
chemical industry of Bangladesh from the viewpoint of ACI Trading limited.
1.2.2 Specific Objectives
To achieve the broad objective the following specific objectives are required to be achieved.
1. Identify the major market players of leather chemicals (especially in value addition
section).
2. To analyze the ins and outs of the tannery industry of Bangladesh.
3. To compare the marketing strategies of all the major chemical suppliers in
Bangladesh and to find which marketing strategy the clients prefer.
13
4. To find out the proper marketing strategy for ACI Trading limited to increase their
market share in crust and finishing section.
1.3. Scope of the Research
This report is basically a requirement of ACI trading limited to understand the details of
tannery industry in Bangladesh. ACI trading limited is the agent of Stahl (Holland), a well
renowned chemical supplier in the world. From the ACI’s point of view, they want to know
their competitors and how they are marketing in Bangladesh.
To know the major leather chemical market players in Bangladesh, the tannery factories
and their leather technologists are the main focus of this research. All the organized bodies
related to leather sector such as Bangladesh Chemical Importers and Merchants
Association, Bangladesh Tanners Association, Bangladesh Finished Leather, Leather goods
and Footwear Exporters Association, Bangladesh Leather Manufacturers Association,
Bangladesh Leather Importers Association are the major considerations of this research.
Leather Sector Business Promotion Council (LSBPC) was the prime source of all research
papers necessary for this study.
1.4. Methodology
To find out the major leather chemical market players in Bangladesh, I basically separated
the respondents in three different divisions 1) Leather Technologists and employees of
various tanneries, 2) Members of chemical importers and merchants association and 3) The
leather chemical retailers or whole sellers.
In depth interview of the first two respondent divisions have been scrupulously scrutinized.
Both formal question answer session and informal discussions were the part of this
research. Primary interviews of the third respondent sections have been made, which was a
14
questionnaire based interview. Convenient sampling method was applied for selecting the
interviewees.
All the findings have been verified by numerous experts, leather technologists, and well
renowned leather chemical merchants of Bangladesh.
Although, there are not enough secondary materials available in Bangladesh, Leather
Sector Business Promotion Council (LSBPC) of Bangladesh has been repeatedly visited
and they helped me by providing all their necessary secondary materials.
1.7. Limitations
1. The main problem in dealing with leather sector is that, there are not enough
secondary research materials and published information available in
Bangladesh.
2. All the associations other than Bangladesh Finished Leather, Leather goods and
Footwear Exporters Association are not well organized to give the exact
information; most of them even don’t have their internal annual reports.
3. Since the whole leather sector of Bangladesh is shrinking day by day, the
researchers are not focusing this sector well enough comparing to the booming
sectors of Bangladesh like RMG.
15
Chapter-Two
About The Organization
2.1 Company Profile at a Glance:

Company Name
: Advanced Chemical Industries (ACI) Limited

Address
Dhaka-1208.
: ACI Centre, 245, Tejgaon Industrial Area,

Phone
: +88-02-9885694

Fax
: +00-02-9886029

E-mail
: INFO@ACI-BD.COM

Web Page
: WWW. ACI-BD. COM

Company Logo
:
2.1.1 Strategic Business Units:
Pharmaceuticals
Consumer Brands
Agribusinessa) Crop Care and Public Health
b) Animal Health
2.1.2 Subsidiaries:
ACI Trading Limited
ACI Formulation Limited
Apex Leather crafts Limited
ACI Salt Limited
16
2.1.3 Executive Management:
Mr. M Anis-Us-Dowla
Chairman
Dr. Arif-Dowla
Managing Director
Mr. M Mohibuz Zaman
Chief Operating
Officer,
Pharmaceuticals.
Dr. F H Ansarey
Executive Director,
Agribusiness.
Mr. Azmal Hossain
Executive Director,
Trade.
Mr. Syed Alamgir
Executive Director,
Consumer Brands.
Mr. Muallem A Choudhury
Executive Director,
Finance & Planning.
Mr. Towfiqur Rahman
General Manager,
Operation.
Mr. Priyatosh Datta
General Manager,
Quality Assurance.
Ms. Sheema Abed Rahman
General Manager,
Corporate Service.
Mr. Pradip Kar. Chowdhury
Financial Controller
2.1.4 Financials (Year Ending December 2004):




Authorized Capital:
Paid-Up Capital:
Sales:
Numbers of Employees:
Taka 500 Million.
Taka 161.70 Million.
Taka 2,558 Million.
2161
17
2.2 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 24th 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.
2.3 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, innovative processes and empowered employees to provide the
highest level of satisfaction to its customers.
2.4 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.
18

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.
2.5 Values:
Quality
Customer Focus
Fairness
Transparency
Continuous Improvement
2.6 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.
19
2.7 Business Units:
2.7.1 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.
2.7.2 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.
2.7.3 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.
20
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.
2.8 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.
2.9 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
21
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.
2.10 ACI Formulation Limited:
ACI Formulations Limited (ACI FL) is a subsidiary of ACI Limited, located at Gazipur, in
the outskirt of Dhaka.
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.
2.11Quality 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
22
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.
2.12Business 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
23
Business
Performance
business divisions
Contribution by rev enue 2 0 0 4
4.90%
1.00%
18.20%
Consumer Brands (37.7%)
Pharmaceuticals (38.2%)
Crop care & public health
(18.2%)
AH (4.9%)
37.70%
Others (1.0%)
38.20%
Figure No: 2.2
sales & profit Growth
3,000
14.21%
2,500
2,000
1,500
1,000
500
0
1999
2000
2001
Net Sales Income
Figure No: 2.3
24
2002
2003
Profit Before Tax
2004
2.13 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 multinationals 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
25
2.13.1 Organogram – Business Management
Managing
Director
Executive
Director,
Pharma
Executive
Director,
Agro
Executive
Director,
Consumer
Executive
Director,
Trade
Executive
Director,
Operation
Figure No: 2.4
2.13.2 Organogram – Business Support Functions
Managing
Director
General
Manager,
Corporate
Financial
Controller
General
Manager,
Distributor
Figure No: 2.5
26
Commercial
Manager
Audit
Manager
2.13.3 Organ gram of ACI Trading Limited (Focusing Leather
Chemical Division)
Dr Arif Dowla
Managing Director
Azmal Hossain
Executive Director (Trading)
A Khayer
M S Dastidar
Coordination Officer
Asst. Manger, Commercial
Textile Division
Leather Chemical Division
Chemical Division
Saiful Azam Kashem
Sr. Technical Sales Oficer
Munirul Islam
Technical Sales Oficer
Figure 2.6
27
2.13.4 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.
2.13.5 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.
2.13.6 Indent Sales Growth from 2002-2005 & Budget 2006
2000
1500
1000
1,420
500
686
1575
1855
1,538
904
0
Act 2002
Act 2003
Act 2004
28 2005
Bud
Act 2005
Bud 2006
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
2.13.7 Ex-stock Sales Growth from 2002-2005 & Budget 2006
80.0
70.0
60.0
50.0
78.7
40.0
30.0
20.0
54.42
31.0
10.0
0.0
Act 2002
29.8
Act 2003
53.6
30.8
Act 2004
29
Bud 2005
Act 2005
Bud 2006
Reason for
variance’05


Less ExxonMobil Plastics sales due to strategic import
Stahl sales was behind due to recession in Leather
Industry
Assumption
for Bud’06

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
2.13.8 Profit and Loss Budget 2006
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
30
2.13.9 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
2.13.10 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
31
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
•
•
Take advantage of IT to form chemical data-base for new opportunity.
Try sourcing of RM from India & China
2.13.11 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
2.13.12 Products, Customers & Supplier Base Up to 2005
Chem
ical
Tex
tile
Le
ather
To
tal
Total Product base
60
35
70
165
Total customer
70
36
60
166
Total supplier
29
4
2
35
32
2.13.13 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
Projects/Suppliers looked for
1)
2)
3)
4)
5)
6)
H2O2
Paints
Bulb & Tube Lights
Dry Cell Battery
Adhesive Tapes
Lady Napkin
2.13.14 Initiative to be taken in 2006
Value Addition – Textile Auxiliaries
ICI Paints India (J.V.)
Value Addition for Beam House Chemicals for leather
More trials of Text. & Leather Chemicals to increase customer & Product base
Dyes & Optical Brightener sourcing – India, China
Introduction more Traders for Textile Aux. credit sales
Recruit sales person for Chemical & Textile division
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
1.
2.
3.
4.
5.
6.
7.
8.
33
Chapter-Three
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 shoeupper, 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
34
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 nonBengali 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 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)
-
194
3
1
1
units
”
”
”
35
Chittagong
Jamalpur
Rangpur
Khulna
-
18
1
1
1
”
”
”
”
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.
36
Chapter-Four
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
Unit (Million Sq. Meter)
Year
1993-94
1994-95
1995-96
1996-97
1997-98
14.60
15.00
15.90
11.95
12.12
37
Source:
1998-99
16.21
1999-2000
18.31
2000-2001
19.91
2001-2002
17.30
2003
22.85*
2004
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)
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
Production Index
Leather & Leather Goods
Leather Footwear
84.34
100.03
92.97
100.07
108.72
110.93
123.44
139.48
126.77
161.76
133.85
174.46
100.84
185.95
102.25
123.17
136.76
192.84
154.41
186.71
165.85
216.67
146.37
229.47
Source: Statistical Year Book of Bangladesh 2002, Bangladesh Bureau of Statistics
38
Table- 4.3 : Yearly production of Leather Sector by Different
Enterprises/Firms
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
Annual Production
(SFT/Month)
Apex Tannery
1700,000
Bay Tannery
600,000
SAF Industries
600,000
Bata Shoe co (BD) ltd
400,000
Bengal Leather Complex
500,000
Dhaka Hide & Skins
1400,000
H&H /H.B Tannery
500,000
Phoenix Leather
Karim Leathers
Lexco Ltd.
Samina Tannery
Riff Leather
Modina Tannery
Reliance Tannery
B.S Leather
Progoti Leather Complex
Vulua Tannery
400,000
500,000
200,000
500,000
200,000
150,000
600,000
200,000
500,000
600,000
39
Product
Crust, Printed Bag, Semi Aniline,
C\G Glaze Kid
Crust, Resin Coat, Semi Aniline
C\G, Lining, Brush Off,
Crust, Semi Aniline C\G, Glaze
Mild, Lining,
C/G, Box Sandle, Semi Aniline,
Creasy Horse, Lining
Polishable Finish, Crust, Semi
Aniline,
Crust, Milled Bag, Repolisable, S/A
Crust, Glaze Kid, C/G, Resin Goat,
S/A, Lining
Crust, C\G, S\A
Crust, S\A
C\G, S\A
Crust, S\A
Crust, C\G, S\A
Crust, S\A
Re polish able, Crust,
Re polish able, Crust,
Crust
Crust
Kalam Brothers
Amin Tannery
Anwer Tannery
Cottege Customer
300,000
200,000
200,000
1000,000
Crust
Crust
Crust
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;
Table4.5: Availability of Raw Materials
Cow & Buffalo
184 Mio Sq.Ft.
Goat & Sheep
63 Mio Sq.ft
Total:
247 Mio Sq.Ft
Source: Magazine, Dhaka International Leather Fair 2005
Table 4.6: Number of Animal Population in Bangladesh (thousand head)
Types
Bovine
Animal
Sheep and
Lambs
Goats and
Kids
1990
1995
1996
1997
1998
1999
2000
2001
2002 (est.)
24016
24859
24433
24816
24220
24480
24730
24830
24830
873
1070
1124
1158
1110
1121
1132
1143
1143
21031
30330
33312
34478
33500
33800
34100
34400
34400
Source: FAO, 2003
40
Chapte r-Five
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 11th
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.
41
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
Export Performance for
July 2004-Nov 2005
Export Performance for
July 2005-Nov 2006
Leather (Mn. US$) % Increase or Decrease
246.89
290.68
+17.76%
252.49
-13.13%
229.72
-9.01%
211.41
-7.97%
220.93
+4.50%
235.00
84.37
-
96.21
+14.03%
Source: Export Promotion Bureau of Bangladesh.
Fig 5.1: Year Wise Leather Export of
Bangladesh
300
250
200
Export
150
(Mn. US$)
100
50
0
1999- 2000- 2001- 2002- 2003- 20042000 2001 2002 2003 2004 2005
Table 5.2: Percentage of the Leather Export to the Total export of Bangladesh:
42
(Value in million dollar)
Year
Total Export
Leather, Leather
Footwear and Leather
Goods export
1998-99
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
5312.86
5752.20
6467.30
5986.09
7602.99
8654.52
10159.20*
219.39
246.89
290.68
252.49
229.72
211.41
220.93
235.00*
Source: Export Promotion Bureau of Bangladesh (EPB)
Leather, Leather
Footwear and Leather
Goods as % of Total
Export
4.39
4.30
4.50
4.22
2.78
2.55
2.31
*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
Country
India
Indonesia
Italy
Export
1679
153
29791
43
Country
Saudi Arabia
Singapore
S. Africa
Export
2
137
243
Belgium
Benin
Brazil
Cambodia
Canada
China
Czech Rep.
East Timor
El Salvador
Finland
France
Germany
Greece
Hong Kong
Hungary
65
21
745
426
35
6049
5
13
50
1
753
189
26
54584
4
Japan
Korea DPR.
Korea Rep.
Local Sale
Mexico
Myanmar
Netherlands
Norway
Oman
Pakistan
Philippines
Poland
Portugal
Qatar
Samoa
10723
39
20151
540
1123
21
634
37
10
62
166
3767
51
6
5
Total
Spain
Sri Lanka
Taiwan
Thailand
Turkey
U.A.E
U.K
U.S.A
Ukraine
Uruguay
Venezuela
Vietnam
5701
11
7953
742
8
23
1059
645
69
575
40
8681
158621
Source: Foreign Trade Statistics of Bangladesh, 2001-2002
Table 5.4: Export of Leather, Leather Footwear and Leather Goods
Year
Leather
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
Bangladesh
Leather Footwear
Export
% of Total
168.25
76.69%
195.05
79.00%
253.93
87.36%
207.33
82.1%
191.23
83.2%
211.41
79.50%
Export Promotion Bureau
Export
46.55
48.26
33.63
41.29
35.06
50.86
% of Total
21.22%
19.55%
11.57%
16.4%
15.3%
19.13%
Leather Goods
Export
4.59
3.58
3.12
3.87
3.43
3.64
Million US$
Total
% of Total
2.09%
1.45%
1.07%
1.5%
1.5%
1.37%
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
0
437389
437389
Leather Goods
44
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
0
100
100
23.01
76.99
100
Leather Goods
Total
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.)
Local Sales
Product
Category
Direct
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
Through Agent
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
Total
Local Sales
Through Agent
45
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
Total Sales
category
Local Sales
Exports
value
Direct
Through Agent
Wet Blue
Crust
Finished
Total
100.0
6.81
4.58
18.36
0
4.70
0
1.54
100.0
11.51
2.96
0
88.49
97.04
84.58
15.42
100
100
100
100
Note: Data for the period Jan.-Dec.2003.
Source: Leather Sector Census Study, LSBPC, 2005
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
Total
Local
Sales
Total
Exports
Total
Sales
Direct
Through
Agent
Volume (pair)
8435500
0
8435500
8309750
16745250
Value in Tk.’000
2456349
0
2456349
1682140
4138489
Note: Data for the period Jan.-Dec.2003.
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
46
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$)
2002-2003
Countries
2003-2004
% of Total
Value
% of Total
36.10
20.20
7.18
7.86
6.04
2.58
3.57
3.10
1.06
0.79
0.93
0.51
0.43
9.65
100.00
72026
43601
19779
15188
11850
11500
9709
7655
2160
1228
1106
631
549
14430
211412
34.06
20.62
9.36
7.18
5.61
5.44
4.59
3.62
1.02
0.58
0.52
0.30
0.26
6.84
100.00
Value
Hongkong
Italy
Koria Rep.
Japan
Taiwan
Vietnam
Spain
China
Mexico
UK
France
USA
Germany
Others
Total
69039
38621
13736
15029
11556
4928
6821
5932
2027
1507
1779
983
818
18450
191226
Source: EPB Export Statistics
47
Table 5.14: Company wise Export of Leather Goods & Footwear from Bangladesh
(Export Period: 01/01/2005 ~ 24/11/2005)
Name of the Company
Value in US$
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.
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.
48
Chapter-Six
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 Raw
materials
Local
Foreign
Total
Wet blue
Raw hides
1276262
5040
1281302
Crust
Wet blue
2756629
41300
2786474
Finished
Crust
7428519
34000
7462519
1146399
38236
1184635
90466
0
90466
Finished, lining
leather, Sole etc.
Finished & lining
Leather Goods
leather
Source: Leather Sector Census Study, LSBPC, 2005
Footwear
49
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, lining leather,
Sole etc.
96.77
3.23
100
Leather Goods
Finished & lining leather
100
0
100
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 wet-blue 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
Hide and Skin
Local
Foreign
50
Total
Quantity
(000pcs)
Value in
Tk.000
Quantity
(pcs)
Value in
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
2154
1276262
4
5040
2158
1281302
Total
Quantity
(000pcs)
Total Value
Tk.000
Source: Leather Sector Census Study, LSBPC, 2005
Table 6.4 : Yearly Raw Materials used for Producing Wet Blue (%)
Raw materials for
Wet blue
Cow
Buffalo
Goat
Sheep
Local Value
(%)
100
100
100
100
Foreign Value
(%)
0
0
0
0
Total Value
(%)
100
100
100
100
0
100
0.40
100
100
100
Cow/Buffalo head
100
Camel
0
Total
99.60
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
Raw
Local
Foreign
51
Total
materials
for crust
Quantity
(000sqf)
Value in
Tk.000
Quantity
(000 sqf)
Value in
Tk.000
Quantity
(000sqf)
Total Value
Tk.000
Cow
23358
1524583
530
33300
23888
1557884
Buffalo
11210
447936
0
0
11210
444480
Goat
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
47672
2756629
630
41300
48302
2786474
Total
Source: Leather Sector Census Study, LSBPC, 2005
Table 6.6: Yearly Raw Materials used for Producing Crust (%)
Raw materials for
crust
Local Value
(%)
Foreign Value
(%)
Total Value
(%)
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
98.52
1.48
100
Cow
Total
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.
52
Table 6.7 : Yearly Raw Materials used for Producing Finished Leather
Raw materials for
finished
Local
Foreign
Total
Quantity
(000sqf)
Value in
Tk.000
Quantity
(000 sqf)
Value in
Tk.000
Quantity
(000sqf)
Total Value
Tk.000
Cow Crust
55488
4396440
400
34000
55888
4396840
Buffalo Crust
8822
494124
0
0
8822
494124
Goat Crust
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
for finished
Local Value
(%)
Foreign Value
(%)
Total Value
(%)
99.23
0.77
100
Buffalo Crust
100
100
100
Goat Crust
100
100
100
Sheep Crust
100
0
100
99.55
0.45
100
Cow Crust
Total
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
53
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.
Table 6.9: Yearly Raw Materials used for Producing Footwear
Local
Name of raw
materials for
footwear
Foreign
Quantity sqf. Value in Tk.
000
000
Total
Quantity
sqf. 000
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
7
562
0
0
7
562
15328
1146399
1631
38236
16959
1184635
Others
Total
Table6.10 : Raw Materials used for Footwear (%)
Raw materials for
Footwear
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
100
0
100
96.77
3.23
100
Others
Total
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
54
Raw materials
for crust
Finished
Leather
Lining Leather
Total
Local
Foreign
Total
Quantity
(000sqf)
Value in
Tk.000
Quantity
(000 sqf)
Value in
Tk.000
Quantity
(000sqf)
Total Value
Tk.000
1365
87366
0
0
1365
87366
50
3100
0
0
50
3100
1415
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
Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO
Chapter-Seven
55
Khulna
10,72,700
59,07,000
Total
53,02,700
1,97,00,000
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%
56
Strengths: Leather Processing
80
% of Total Firms
70
60
50
40
30
20
10
0
Production
capacity
Competitive price
Cheap Labour
Market
Information
Better
management
Major Strengths
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 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
57
Production capacity
74%
Better quality of management
66%
Sufficient supply of processed leather
65%
Trained manpower
60%
Quality Control
58%
% of Total Firms
Strengths: Footwear
80
60
40
20
0
Production
capacity
Better
management
Supply of
processed
leather
Trained
manpower
Quality Control
Major Strengths
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
58
Strengths
Percent of Total Firms
Better management Quality
71%
Quality control
69%
Sound environmental management
64%
Market information
60%
Production Capacity
48%
Strengths: Leather Goods
80
70
% of Total Firms
60
50
40
30
20
10
0
Better management
Quality control
Environmental
management
Market information Production Capacity
Major Strengths
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
59
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:
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%
% of Total Firms
Weaknesses: Leather Processing
90
80
70
60
50
40
30
20
10
0
Low Volume of
Production
Financial Crisis
Weak Marketing
Inefficient
Management
Major Weaknesses
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
60
‘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%
% of Total Firms
Weaknesses: Leather Footwear
95
90
85
80
75
70
Financial Crisis
Weak Marketing
Low Volume of
Production
Uncompetitive
Product Price
Major Weaknesses
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
61
Financial Crisis
88%
Weak Marketing
87%
Low Volume of Production
87%
Uncompetitive Product Price
74%
Weaknesses: Leather Goods
% of Total Firms
90
85
80
75
70
65
Financial Crisis
Weak Marketing
Low Volume
Uncompetitive Price
Major Weaknesses
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%
62
Stable Global Demand
62%
Favourable Business Environment
60%
Conducive Industrial Policy
58%
Conducive
Industrial
Policy
Favourable
Environment
Stable Global
Demand
Sufficient
Supply of
Hides
100
80
60
40
20
0
Cheap
Supply of
Labour
% of Total Firms
Opportunities: Leather Processing
Major Aspects
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
‘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%
63
Conducive Industrial Policy
58%
Favourable Business Environment
57%
Cheap Supply of Labour
51%
Duty Free Access in Major Markets
51%
% of Total Firms
Opportunities: Footwear
65
60
55
50
45
Stable Global
Demand
Conducive
Industrial Policy
Favourable
Environment
Cheap Supply of Access in Major
Labour
Markets
Major Aspects
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
Percent of Total Firms
Conducive Industrial Policy
66%
Favourable Business Environment
60%
Cheap Supply of Labour
58%
64
Stable Global Demand
58%
Duty Free Access in Major Markets
51%
% of Total Firms
Opportunities: Leather Goods
80
60
40
20
0
Conducive
Industrial
Policy
Favourable
Environment
Cheap Supply Stable Global
Access in
of Labour
Demand
Major Markets
Major Aspects
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
Percent of Total Firms
Disruption of Electricity
74%
Hartals, strike, and other disturbances
72%
Unstable Policy Environment
68%
65
External Competition
64%
Lack of Trained Labour
62%
Environment consciousness in Importing Countries
60%
Shortage of Water Supply
58%
% of Total Firms
Threats: Leather Processing
75
70
65
60
55
Disruption of
Electricity
Hartals, strike, Unstable Policy
and other
Environment
disturbances
External
Competition
Lack of Trained
Labour
Major Aspects
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:
66
Table 7.11: Threats for the Footwear Industry
Threats
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%
Shortage of
Water Supply
Environment
consciousness
Hartals, strike
etc
External
Competition
80
70
60
50
40
30
20
10
0
Disruption of
Electricity
% of Total Firms
Threats: Footwear
Major Aspects
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.
67
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
Percent of Total Firms
Disruption of Electricity
74%
Lack of Trained Labour
64%
External Competition
62%
60%
Hartals, strike, and other disturbances
Environment consciousness in Importing Countries
58%
Environment
consciousne
ss
Hartals,
strike etc
Lack of
Trained
Labour
External
Competition
80
60
40
20
0
Disruption of
Electricity
% of Total Firms
Threats: Leather Goods
Major Aspects
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.
Chapter-Eight
68
Production Stages
8.1 Production Stages in Leather Processing Industry
Wet Blue
Raw/wet salted
Hides & Skins
(Sorted & Trimmed)
Crust
Finished
Wet blue Leather
Crust Leather
(Natural /dyed)
Splitting
Sorting
Raw/Salted
Weighing
Samming
Washing &
Soaking (in drum/
paddle/pit)
Liming (In drum/
/paddle/pit)
Buffing &
Dedusting
Shaving
Shaved weighing
Impregnation
&
Drying
Neutralization
Hydraulic Pressing
Retaining/
Dyeing
Rebuffing &
Dedusting
Fleshing
Scudding
Fat liquoring
(in drum)
Pelt Weighing
Color Coating (By
pad/spray Roller
coater)
Setting
Drying
Deliming
(in drum)
Drying (Vacuum/
Tunnel/Natural)
Ironing/Embossing
Bating (in drum)
Conditioning (By
sawdust/ water)
Color Coating (By
Sprayer & drying)
Pickling (in drum)
Staking
Plating/Glazing
Toggle Drying
Tanning (in drum)
Trimming
Wet Blue
69
Crust
Finished
8.2 Production Stages in Footwear and Leather Goods Industries
Footwear
Leather Goods
Designing
Designing
Pattern Making
Designing of Footwear
Pattern Making of Leather Goods
Cutting
Cutting
1. Selection of Leather/Materials
2. Cutting
3. Splitting
4. Skiving
1. Selection of Leather/Materials
2. Cutting
3. Splitting
4. Skiving
Closing
Closing
Embossing/ Printing
Adhesive
Folding
Strap cutting
Stitching
1. Embossing/ Printing
2. Adhesive
3. Folding
4. Strap cutting
5. Stitching
1.
2.
3.
4.
5.
Finishing
Finishing
Total Finishing Work
Total Finishing Work
Footwear
Leather Goods
70
8.3 Description
of the various Stages of Leather Processing:
8.3.1Wet-Blue Section:
Name of operation
Objectives
Curing/
Preservation
Soaking
Dehydration
Restore Moisture to original
condition
Generic names of
chemicals
Chemicals Required
Soaking
Preservatives
/ Enzymes
Sodium sulfide, sodium
hydroxide, sodium tetra
sulfide Decaltal types,
formic acid, bi sulfite
solution, sodium bi sulfite.
Liming and
Unhairing
Removing the hair and
opening up of fibre structure
for tannage
Washing after
liming
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,
Reducing Swelling
Fleshing
Deliming
Liming Auxiliaries
Sodium sulfide, Sodium
hydrosulfide. Hydrated
lime powder (calcium
hydroxide). Seldom slaked
lime (lime paste). Sodium
chlorite
Deliming agents
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
Bating
Producing a smooth, clean
grain by enzyme action,
removing unwanted proteins
Bating Agents
Pickling
Prepaing pelt for chrome
tanning by acidification
Pickling Agents
71
Name of operation
Objectives
Chrome Tanning
Making Leather resistant to
purification, Increasing
Thermal Stability
Sammying
To remove the unbound water
so that the hide can be split or
shaved with an even or
consistent moisture content
To reduce thickness and
separate splitting part
The final adjustment for
thickness
Splitting
Shaving
Generic names of
chemicals
Tanning Agents
Chemicals Required
Chrome Tanning Agents,
(chromium(III) salt, ca.
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.
Source: Leather Sector Census Study, LSBPC, 2005
& Pocket Handbook of Leather Technology, 2004, BASF
8.3.2 Crust Section:
Name of operation
Objectives
Neutralization
Preparing Tanned leather for
retannage
Retanning
Dyeing
Fat liquoring
Using suitable chemicals for
the final product requirement
To impart requisite colour on
leather
To soften the leather
Generic names of
chemicals
Neutralizing Agents
Chemicals Required
Sodium Carbonate, Borax
Sodium Bicarbonate,
Ammonium Bicarbonate,
Sodium (Sulphite,
Retanning Agents
Thiosulphate, acetate,
formate), Calcium Formate
etc.
Phenol, Nepthalane, BNapthole, Aromatic Ether
Dyes
Fat Liquoring Agents
72
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
Chemicals Required
8.3.3 Finishing Section:
Name of operation
Sorting
Buffing
a.
Finishing
Ground Coat
b.
Season Coat
c.
Top Coat
Pressing
Milling
Final Gradation
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
Measuring
Source: Leather Sector Census Study, LSBPC, 2005
& Pocket Handbook of Leather Technology, 2004, BASF
73
Chapter-Nine
LEATHER CHEMICALS & ACCESSORIES
(Data Collected from Secondary Survey)
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)
Local
Value in Tk.000
Foreign
Value in Tk.000
Total, Value
in Tk.000
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
Production type
Wet-Blue
Source: Leather Sector Census Study, LSBPC, 2005
Table 9.2: Distribution of Chemicals used by the firms of the Leather Sector (%)
Production
type
Wet-Blue
Local Value
Foreign Value
24.44
75.56
74
Total Value
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)
Types of
Production
Footwear
Leather Goods
Total
Local
Foreign
Value in
Tk.000
Value %
of Total
Value in
Tk.000
Value%
of Total
73961
80.76
17616
19.24
237
27.40
628
72.60
74198
80.30
18244
19.70
Total
Value in
Value%
Tk.000
of Total
91577
100
865
100
92442
100
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 footwear-manufacturing 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 value) 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
Name of
Chemicals
Local
Quantity
(MT)
(Value in
Tk.000)
Foreign
Quantity
(MT)
75
(Value in
Tk.000)
Total
Quantity
(MT)
(Value in
Tk.000)
Sodium chloride
1630.84
13,642
4
86
1634.84
13,728
Soaking Agent
72.835
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
Chloride
1
-
46.745
1,149
47.745
1,149
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
0.65
11
54.12
1,789
54.77
1,799
-
-
6.96
1,129
6.96
1,129
0.125
113
6.96
4,706
6.79
4,819
1956.26
20,685
1274.47
63,938
3202.38
84,623
Sodium Carbonate
Basic Chrome
powder
Sodium
Bicarbonate
Masking Agent
Preservative
Total
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 .
76
Table 9.5: Yearly Value of Chemicals used for the Production of Crust Leather
Name of
Chemicals
Local
Foreign
Total
Quantity
(MT)
(Value in
Tk.000)
Quantity
(MT)
(Value in
Tk.000)
Quantity
(MT)
(Value in
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
2
212
72.16
8601
74.16
8813
1.8
225
82.97
9222
84.77
9447
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
acid
1
51
58.54
31667
59.54
3217
Dye Auxiliaries
-
0
12.69
2559
12.69
2559
0.13
113
5.1
3633
5.23
3745
-
0
3.68
956
3.68
956
16.07
2322
885.86
116720
901.84
119041
Melamine /Urea
syntan
Replacement
syntan
Preservative
Aldhyde Tannin
Total
Source: Leather Sector Census Study, LSBPC, 2005
9.1.3 Leather Processing: Finished Leather
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
Name of
Chemicals
Local
Quantity
(MT)
(Value in
Tk.000)
Foreign
Quantity
(MT)
77
(Value in
Tk.000)
Total
Quantity
(MT)
(Value in
Tk.000)
Acrylic binder
0.75
37
10.33
3296
11.08
3334
Butadyne binder
0.8
40
1.75
495
2.55
535
Protein Binder
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
4.16
1172
13.29
4712
17.45
5884
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
0.02
10
0.355
900
.37
910
Solvent
-
0
0.35
105
.35
105
Formal dehyde
-
0
0.05
3
.05
3
9.83
1678
120
44790
129.83
46468
Nitrocellulose
binder
Poly Eurathane
binder
Cross linkers
Total
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
0
0
10
37
10
0
0
0
0
1500
9300
100
0
0
2.5
130
0
0
85
3
1009
78
6250
26000
0
25500
6300
402520
2.5
130
10
37
95
3
1009
6250
26000
1500
9300
25600
6300
402520
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
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
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
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
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
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
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.
79
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)
80
Accessories
Local
Total
Foreign
Bukless
63.5
600
663.5
Belt
151.5
24
175.5
Button
15
0
15
Others
7
4
11
237
628
865
Total
Source: Leather Sector Census Study, LSBPC, 2005
Chapter-Ten
Major Players of the Leather Chemical Industry
(Data Collected from Primary Survey)
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.
2.
3.
ACI, Bangladesh
BASF, Germany
Others
50%
30%
20%
Source: Primary survey
Product Name:
Lissapol, ACI;
Lisapen-PA-WB, BASF
2.
Soaking Enzyme: 300MT /Year
Price: 150-190Tk Per Kg.
81
#SL.
Supplier
Market
Share
1.
2.
3.
4.
5.
6.
7.
TFL, Germany
BASF, Germany
Buckman, Singapore
TH Bohme
Schill & Seilacher, Germany
Scitan, Italy
Others
25%
20%
15%
15%
5%
5%
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.
2.
3.
4.
5.
6.
TFL, Germany
BASF, Germany
Buckman, Singapore
Seicie, Italy
Schill & Seilacher, Germany
Others
25%
20%
10%
10%
5%
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
82
#SL.
Supplier
Market
Share
1.
2.
Local
China, Thiland
75%
25%
Product Name:
(Delimer-AR), Neochemica;
5.
Bating Agents: 500-600MT /Year
Price: 60-100Tk Per Kg.
#SL.
Supplier
Market
Share
1.
2.
3.
4.
6.
7.
Clariant, UK
TFL, Germany
Buckman, Singapore
BASF, Germany
Rock Chem
Others
35%
20%
15%
10%
5%
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.
83
#SL.
Supplier
Market
Share
1.
2.
3.
4.
5.
Local
Clariant, U.K
BASF, Germany
Kemira
Others
55%
10%
10%
5%
20%
Source: Primary survey
7.
Tanning Agents: 6000-8000MT /Year
Price: 50-150Tk Per Kg.
#SL.
Supplier
Market
Share
1.
2.
3.
4.
5.
BASF, Germany
Bayer, Germany
American Chemical Co.
Sulchome, Italy
Others
30%
30%
15%
10%
15%
Source: Primary survey
Product Name:
(Chromosol-B), Bayer;
(Chromitan-B), BASF;
(Chromix-B33), American Chemical Co.;
8.
Preservatives: 100-120MT /Year
#SL.
Price: 750-850Tk Per Kg.
Supplier
1.
Buckman, Singapore
2.
Bayer, Germany
3.
Chemicolor/ Yorkeshire
4.
ATC, France
5.
Others
Product Name:
(Prevental-Z), Bayer;
(Busan-30L), Buckman;
84
Market
Share
40%
30%
10%
5%
15%
9.
(Tolcide-2230), Chemicolor/Yorkeshire;
Basifying Agents: 500-700MT /Year
Price: 110-120Tk Per Kg.
#SL.
Supplier
Market
Share
1.
2.
3.
4.
5.
BASF, Germany
TFL, Germany
Clariant, U.K
Clowan
Others
30%
10%
10%
10%
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%
85
Market Share of Chemical Suppliers
(Wet Blue)
BASF, Germany
Buckman
5%
Others
15%
Clariant, UK
BASF
25%
TFL,
5%
American
Chemical
Co.
8%
Clariant
22%
Bayer
20%
Bayer, Germany
American Chemical
Co.
TFL, Germany
Buckman,
Singapore
Others
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.
2.
3.
4.
5.
BASF, Germany
TFL, Germany
Clariant, UK
Buckman, Singapore
Others
25%
25%
20%
10%
20%
Product Name:
(Butan 7810), Buckman;
(Tamol GA, NNOL), BASF;
(Sellasol NG), TFL;
(BS3), Smith & Zones;
(Probal-PRA), Clariant;
(PAKS), Bayer;
86
2.
Retanning Agents: 3000-4000MT /Year
Price: 115-180Tk Per Kg.
#SL.
Supplier
Market
Share
1.
2.
3.
BASF, Germany
Bayer, Germany
Others
50%
30%
20%
Product Name:
(Basyntan-AM, Basyntan- DLE, Syntan-DLE, Relugan), BASF;
(Tanizon-OS, Ratingan- R7), Bayer;
3.
Dyes: 1000MT /Year
Price: 300-1200Tk Per Kg.
#SL.
Supplier
Market
Share
1.
2.
3.
4.
5.
Clariant, UK
BASF, Germany
Guama
Stahl, Holland
Others
40%
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.
2.
3.
4.
5.
Clariant, UK
BASF, Germany
TFL, Germany
Hodgeson
Others
20%
20%
10%
10%
40%
87
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.
2.
3.
4.
5.
6.
Smith & Zones
TFL, Germany
BASF, Germany
Clariant, UK
Zshimmer & Schwarz
Others
30%
20%
10%
10%
5%
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
Approximate Market Share (%)
33%
20%
17%
10%
17%
88
Source: Primary survey
Market Share of Chemical Suppliers
(Crust)
Others
20%
BASF
33%
TFL
10%
Clariant
20%
Bayer
17%
BASF
Clariant
Bayer
TFL
Others
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,
89
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%
Market Share of Finishing Chemical
Horiyana
Suppliers
Chemicals
5%
ALPA
Buckman
2%
Others
Finice
5%
BASF
10%
Stahl
Clariant
ALPA
25%
TFL
5%
TFL
Finice
Clariant
10%
BASF
20%
Stahl
18%
Horiyana
Chemicals
Buckman
Others
Figure 10.3
Chapter Eleven
Findings and Recommendations
90
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.
91
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:
Some times 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
92
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
93
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.
94
Appendix A-1
Members’ List of Bangladesh Finished Leather, Leather goods and
Footwear Exporters’ Association (BFLLFEA)
Category: Tannery
SL
1.
2.
Name of the Firm
Address
M/S Al Madina Tannery 55/2, Hazaribagh, Dhaka
M/S Amin Tannery Ltd.
60/1, Hazaribagh, Dhaka
M/S Anowar Tannery (Pvt) Limited
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
M/S Abul Khair Tannery
69, Hazaribagh, Dhaka
3.
4.
5.
6.
7.
8.
9.
10.
11.
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 Bangladesh Fine Leathers
Processing Ltd.
M/S Bata Shoe Company
Bangladesh Limited
M/S Bay Tanneries Ltd.
Alta Plaza (3rd Flor) House # 1
Road # 10, Dhanmondi, Dhaka
Tongi, Gazipur, (Dhaka)
M/S Ayub Brothers Tannery Ltd.
21, Hazaribagh, Dhaka
12.
13.
14.
15.
M/S Bengal Leather
Complex
M/S Bengal Peli Export Company
M/S Bikrampur Tannery Ltd.
147, Hazaribagh, Dhaka-1209
Hazaribagh
Dhaka
180/2 Hazaribagh, Dhaka
95
Phone
8611579
019343789
8610475
0171561660
9664078
506168
9551203
9560766
9551117
8625635-7
8626728
8118981
8621787
0172126126
866518
8626925
8124806
8626485
9800501-5
9800513
8611445
8611468
011855496
8614077
8615977
0171538060
9122452
500197
9110690
Contact Person and
Designation
Alhaj Nur Mohammed
Managing Director
Mr. Abdul Kader
Managing Director
Mr. Md. Dil Jahan
Bhuiyan
Managing Director
Mr. A.K.M Rahmatullah,
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 Rahman
Managing Director
Mr. Anam Haque
Managing Director
Mr. G Stricker
Managing Director
Mr. Shamsur Rahman
Managing Director
Mr. Md. Tipu Sultan
Managing Director
Mr. Md. Anwar Hossain
Proprietor
Mr. S.M. Habibur
Rahman
16.
17.
18.
19.
20.
21.
22.
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
M/S Great Eastern Tannery (PVT)
Ltd
M/S H & H Leather Industries Ltd.
135, Hazaribagh, Dhaka
M/S H. B. Tannery Ltd.
House # 69, Road # 8/A
Dhanmondi R/A, Dhaka
1. TC Bhaban, Kawran bazar
Dhaka
18, Kamal Ataturk Avenue (16th Fl)
Banani, C/A, Dhaka
74, Hazaribagh, Dhaka
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
M/S H. R. C. Leather Complex
M/S Haroon Leather Ltd.
M/S Helal Tannery
42, New Paltan Lane, Azimpur, Dhaka-1205
House # 69, Road # 8/A
Dhanmondi R/A, Dhaka
8824979
8821024
8616305
M/S Helena Enterprise 78, Hazaribagh, Dhaka-1209
Ltd. No.2
59/60, Gazmohol, Hazaribagh, Dhaka-1209
(?)
M/S Ibrahim Leathers 123/1 Hazaribagh, Dhaka
8631097
9660754
0171591647
8625162
M/S International Tannery
504401
508863
508466
9112832
8618556
8626727
8117674
Hazaribagh, Dhaka
M/S Jamila Tannery Ltd.
112, Hazaribagh,
Dhaka
M/S Janata Tanning Industries Ltd. 180, Hazaribagh, Dhaka
M/S Kader Leather
Complex
M/S Kalam Brothers Tannery Ltd.
119, Sher-e-Bangla Road
Dhaka
54/F Moneshwar,
Hazaribagh, Dhaka
109/2 Hazaribag, Dhaka
M/S Karim Leathers Ltd.
180, Hazaribagh, Dhaka
M/S Javed Tannery
35.
36.
502411
506921
503650
8614182
8626887
9666128
9113776
9111209
8111526
8111526
9111209
9128991-2
96
8116424
8626727
8618556
0171561646
8616584
Managing Director
Mr. Md. Abdul Kader
Chairman
Mr. M. A. Rashid
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 Hossain
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 Kalam
Azad
Managing Director
Alhaj Rejaul Karim
M/S Kid Leather Ind. Ltd.
37.
38.
M/S Leather Ind. of Bangladesh
Ltd.
M/S Lexco Limited
Off: 62/1, Purana Paltan, Dhaka
Fact: 19 Sher-e-Bangla Road, Hazaribagh,
Dhaka
54/1 Sher-e-Bangla Road,
Hazaribagh, Dhaka
146, Hazaribagh, Dhaka
39.
40.
41.
42.
45.
46.
47.
48.
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 Manzur Industries Ltd.
M/S Mukti Tannery
141/2 Hazaribagh, Dhaka
8616586
M/S Mukta Tannery
34/C, Hazaribagh, Dhaka-1209
9660674
181/2 Sher-e-Bangla Road, Hazaribagh,
Dhaka
21, Hazaribagh,
Dhaka
55/1 Hazaribagh, Dhaka
8626056
0189220471
8623428
M/S Paramount
Tanneries
M/S Pioneer Tannery Ltd.
M/S Pragati Leather
Complex
M/S R. M. M International Ltd.
49.
50.
M/S R/ K. Leather
Complex
M/S Rana Leather Ind. Ltd.
51.
M/S Reliance Tannery Ltd.
52.
53.
8610516
8614242
9669397
8626082
8625147
114, Kobi Nazrul Islam Road
Sadharghat, Chittagong
Dhaka Chamber Building
65-66, Motijheel C/A Dhaka
M/S Madina Tannery
43.
44.
8611286
8611129
8612286
9563453
M/S Riff Leather Ltd.
Suit # 601, Concord Tower
113 Kazi Nazrul Islam Avenue, Dhaka
153/A, Hazaribagh,
Dhaka
9663121
8626485
0171524804
9345963-4
011 867105
70, Dilkusha C/A, Dhaka
9, Hazaribagh Dhaka
9566025-6
9564509
508909
48/2/K, Moneshwar Road, Hazaribagh, Dhaka 8625119
8627425
0171898832
4, CDA Noxious Industrial Area
031-670764
Kalurghat, Chittagong
031-671220
97
Ansari
Managing Director
Mr. Md. S.A.M.M.
Nuruddin
Managing Director
Mr. Abdul Rahman Sales
Managing Director
Mr. M. A. Matten
Chairman
Mr. Harun Or-Rashid
Managing Director
Mr. Abu Mohammad
Managing Director
Mr. Quazi Anwarul Hoq
(Tariq)
Director
Mr. Md. Nurul Alam
Proprietor
Mr. Mr. Hazi Abul
Kashem
Proprietor
Mr. Osman Gani Bhuiyan
Managing Director
Mr. Sayed Md. Shidullah
Proprietor
Mr. Akbar Hossain
Managing Director
Mr. Ziaur Rahman
Managing Director
Mr. Md. Asadullah
Managing Director
Mr. Mohiuddin Ahmed
Mahin
Managing Director
Mr. Md. Nurul Amin
Chowdhury
Managing Director
Mr. A. K. Shamsul
Alamin
Managing Director
Mr. Md. Shajahan
Managing Director
Alhaj Abul Kalam
Director
54.
55.
56.
M/S Roushan Tanneries
M/S Ruma Leather Ind. Ltd.
M/S S & S Tannery
M/S SAF Industries Ltd.
57.
58.
61.
62.
63.
64.
65.
120, Sher-e-Bangla Road, Hazaribagh,
Dhaka
M/S Samina Tannery Pvt. Ltd.
36/1 Kalunagar, Hazaribagh,
Dhaka
M/S Shadhin Tannery
M/S Shafiq Leather Corporation
Ltd.
68.
Hazaribagh,
Dhaka
43/1, Sher-e-Bangla Road, Hazaribagh,
Dhaka
504696
801624
9664317
8627144
9662523
9552287
9666142
9666151
8611102
8611372
9662731
9660384
8625266
011850698
8616963
8616111
9669385
M/S Shahjalal Leather 20, Hazaribagh,
Complex
Dhaka
M/S Superior Leather Industry Ltd. 19, Sher-e-Bangla Road
Hazaribagh, Dhaka
M/S Taj Tannery Ltd.
148, Hazaribagh,
Dhaka
M/S The Earth International
86/2 Sher-e-Bangla Road,
Tannery
Hazaribagh, Dhaka
8619457
502709
8612268
M/S Vulua Tannery Ltd.
109, Hazaribagh,
Dhaka
M/S Yousuf Brothers Tanneries
Pvt. Ltd.
M/S Yousuf Leather Corporation
Ltd.
62, Hazaribagh,
Dhaka
124/2, Hazaribagh,
Dhaka
8611851
8118981
011859031
8614749
8613083
8625162
8614895
66.
67.
86/1, Hazaribagh
Dhaka
Akij Chember
73, Dilkusha, C/A, Dhaka
M/S Samata Leather Complex Ltd.
59.
60.
78, Hazaribagh
Dhaka
131, Hazaribagh, Dhaka
98
8610285
8618826
506910
Mr. Amin Uddin Babul
Managing Director
Eng. M. Abu Taher
Managing Director
Mr. Md. Abdur Rahim
Proprietor
Mr. S. K. Momin Uddin
Managing Director
Mr. Mansur Ahmed
Chairman
Abdus Samad
Managing Director
Mr. Faruque Ahmed
Managing Director
Mr. Sidul Islam
Chowdhury
Managing Director
Mr. Shahjalal Mazumder
Managing Director
Mr. S. A. M. M. Nuruddin
Managing Director
Mr. Mujibur Rahman
Managing Director
Mr. Alhaj M. A. Satter
Bhuiyan
Proprietor
Mr. M. A. Awal
Managing Director
Mr. Mohammed Yousuf
Managing Director
Hazi Mohammed Bashir
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.
8.
9.
10.
11.
12.
13.
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
131, Hazaribagh
Dhaka
117, Hazaribagh, Dhaka-1209
503502
500905
9880799
8317259
325449
244862
966470-07
0171530159
9664317
8627144
9661157
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
9354996-4
0171522170
M/S Crown Leather Products Ltd.
M/S Crystal Corporation Ltd.
M/S Dhaka Leather
Crafts
M/S Fortuna Leather
Craft
M/S Madina Leather Complex
M/S Picard Bangladesh Ltd.
M/S R. M. M International Ltd.
M/S Sonali Aansh Industries Ltd.
M/S Spectra Leathergoods Ltd,
M/S Uttama Leather Production
9345963-4
9556251
8613132
9565301
9564543
9880799
8825007
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
Mr. Bellal Hossain
Managing Director
Mr. Md. Saiful Islam
Managing Director
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
SL
1.
2.
Name of the Firm
M/S Amit Footwear Ltd.
M/S Apex Footwear Limited
Address
Flat # 2/503 20, Eastern Tower
20, New Eskaton Road, Dhaka
Plot # 3DS, Road No. 113/A,
Gulshan-2, Dhaka
99
Phone
9804046
0171542895
8828258
8821591
Contact Person and
Designation
Mr. Sukumar Chowdhury
Managing Director
Syed Manzur Elahi
Chairman
3.
M/S Bata Shoe Company Bangladesh
Limited
M/S Bay Footwear Ltd.
Tongi, Gazipur, (Dhaka)
21, Hazaribagh, Dhaka
4.
5.
6.
7.
8.
9.
10.
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.
M/S Dhaka Footwear Ltd.
M/S H. N. Shoe Limited
11.
12.
13.
14.
15.
16.
17.
18.
M/S Inter Fashion Leathers & Footwear
Ind. Ltd.
M/S Jenny Shoes Ltd.
21.
22.
10, Kazi Nazrul Islam Avenud (2nd Fl)
Kawran Bazar, Dhaka
147, Hazaribagh,
Dhaka
House # 69, Road # 8/A
Dhanmondi R/A, Dhaka
M/S Legacy Footwear Ltd.
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
House # 34/1 (Gr. Fl) Road # 10/A
Dhanmondi, Dhaka.
168/A, Green Road, Dhaka
M/S Lexco Footwear Ltd.
146, Hazaribagh, Dhaka
M/S Madina Shoe Ind. Ltd.
Baitul Hossain Building (Suite-1204),
27, Dilkusha C/A, Dhaka
M/S Malim Bangladesh Co.
Ltd
M/S Phulhar Footwear Ltd.
290/1 Shonargaon Road
Dhaka
Meherba Plaza,
33 Topkhana Road, Dhaka
2/1, R/K mission Road,
Dhaka
M/S Lalmai Footwear Ltd.
M/S Landmark Footwear Ltd.
M/S Leatherex Footwear Industries Ltd.
19.
20.
13, Moneshwar road, Hazaribagh,
Dhaka-1205
House#303, Road#19/B, New DOHS,
Mohakhali, Dhaka
86, Laboratory Road (Gd. Floor)
Dhaka
240, New Elephant Road, Dhaka
M/S Rever Side Leather & Footwear Ind.
Pvt. Ltd.
100
9800501-5
9800513
9663966
9666994
8623428
8615921
9619934
9261145
Mr. G Stricker
Managing Director
Mr. Shamsur Rahman
Managing Director
8612415
500516
861623
8612408
8114053
8110782-3
9669849
8611268
9113776
9111209
0171523223
Mr. Moinul Ahsan
Managing Director
Mr. Abul Kashem
9560591
9567986
8826350
8824885
9567312
9569458
9338369
8312626
8112543
404684
011858976
9669397
503502
9564042
9556208
7169495
0175013459
9803366
9803737
9570346-8
9563162
9560147-9
Mr. Shohel Ahmed (Dilu)
Managing Director
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
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
23.
24.
25.
M/S Rumana Shoe Industries Ltd.
45/B, Dilu Road, New Eskaton, Dhaka
8113648
M/S Savar Industry (Pvt) Ltd.
Savar EPZ Area
Dhaka
Rahman Chamber (5th Floor)
12-13 Motijheel C/A Dhaka
34, Bangabahdu Avenue (3rd Floor)
Dhaka-1000
8311252
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
M/S Shampan Shoes Ltd.
M/S Surma Leather & Footwear Ind. Ltd.
26.
27.
28.
29.
30.
31.
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. (?)
32.
M/S Nitol Export (?)
33.
Appendix A-4
101
9563185
9565325
9557913
9558790
501622
9551725
9883926
502030
9885362
8821153
9563404
9563453
9887074-6
8855794
0189238109
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
Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’
Association of Bangladesh (LFMEAB)
Category: Leathergoods
SL
1.
2.
3.
4.
Name of the Firm
Address
Phone
House#296, Road#4, DOHS Baridhara,
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
9883926
0171592979
8117696
0189257031
8916806
0189357570
9872149
0189803083
9559979
0171458649
M/S Koninoor Leather Products Ltd.
Amanullah Complex
87, Islampur Road, Dhaka
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 Apex Leathercraft Fashion &
Accessories Ltd.
M/S Aurora
M/S Cosmic Jute & Leather Industries
Ltd.
M/S Crown Leather Products Ltd.
M/S Jass Leather Industries Ltd.
5.
6.
7.
M/S Sonali Aansh Industries Ltd.
8.
M/S Universal Leather Products
9.
Erectors House (9th Floor)
18, Kamal Ataturk Avenue, Banani C/A,
Dhaka-1213
Contact Person and
Designation
Mr. Shakil Ahmed Khan
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
Mr. Hossain A. Sikder
Managing Director
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
SL
1.
Name of the Firm
M/S Amit Footwear Ltd.
M/S Apex Footwear Ltd.
2.
Address
House # 30, Road # 6, Sector 3
Uttara Model Town, Dhaka-1230
Celebration Point,1st Floor, Plot # 3,5
Road # 113A, Gulshan-2, Dhaka
102
Phone
9804046
8828258
8620300
0171531722
Contact Person and
Designation
Mr. Sukumer Chowdhury
Managing Director
Mr. Syed Nasim Manzur
Managing Director
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
3.
4.
M/S Jenny Shoes Ltd.
5.
6.
7.
8.
9.
M/S Lalmai Footwear Ltd.
Khan Mansion (5th Floor)
107, Motijheel C/A, Dhaka
M/S Landmark Footwear Ltd.
64, Bijoy Nagar (3rd Floor)
Kakrail, Dhaka-1000
House # 34/A, Road # 10/A
Dhanmondi R/A. Dhaka
M/S Leatherex Footwear Ind. Ltd.
M/S Legacy Footwear Ltd.
M/S Madina Shoe Industries Ltd.
10.
11.
12.
M/S Surma Leather & Footwear Ind.
Ltd.
M/S Tropical Shoes Ind. Ltd.
Bangladesh Export Ltd.
13.
64, Bijoynagar,
Kakrail, Dhaka
Suit # 1204, Baitul Hossain Building
27, Dilkusha C/A, Dhaka-1000
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
103
8611468
8612335
0171560794
8111526
9111209
8826350
8824885
0171535117
9567312
9569458
0171538012
9338369
8312626
8112543
9129192
0189227559
8319663
9667745
9556208
7169495
0175013459
9557913
9558790
8815142
8815144
8815142
8815144
0171538338
Mr. Ziaur Rahman
Managing Director
Mr. M. Nasir
Managing Director
Mr. Nasir Khan
Managing Director
Mr. Aminur Rashid
Managing Director
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
SL
1.
2.
Tannery/ Organization
M/S. Taj Tannery
M/S. Chowdhury
Leather & Co
3.
M/S. Helena Enterprise
4.
M/S. R M Leather
5.
M/S M B Tannery Ltd
6.
M/S Pubali Tannery
Address
Phone
Contact Person
148. Hazaribagh. Dhaka- 1209.
8610285
Md. Mizanur Rahman
95/7.Gazmahal, Hazaribagh.
Dhaka- 1209
9660754
8631097
0171526220
9660754
Md. Harun Chowdhury
9660754
Md. Monir Hossion
8614663
Md Mozaffar Rahman
9660508
Md. Mozibur Rahman
8621787
Hazi Md. Abul Khair
8631554
Md. Abdul Awal
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.
Md. Mizanur Rahman
7.
M/S Abul Khair Tannery
8.
M/S. Nur Trading Corporation
9.
99. Hazaribagh. Dhaka- 1209.
9662836
Md. Abdul Hai
10.
M/S. Forhed Leather
Corporation
M/S. Noakshli Tannery
107. Hazaribagh. Dhaka- 1209.
8628867
Mukbul Ahmed
11.
M/S. Shadhin
101. Hazaribagh. Dhaka- 1209.
8614354
Farque Ahmed
91. Hazaribagh. Dhaka. 1209.
9661733
Md. Moharaf Hossain
12.
Tannery
M/S. Mamun Trades
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
104
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. Hazaribagh,
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
28.
M/S. Great Strean Tannery
29.
M/S. Chinaze Tannery Pvt Ltd
30.
M/S. Yousuf Leather Corporation
31.
M/S. Shatee Leather
32.
M/S. Feni Tannery Pvt Ltd
33.
Md. Azizur Rahman
90, Hazaribagh, Dhaka- 1209.
48, Sher-e- Bangla Rd
Hazaribagh, Dhaka- 1209.
50, Sher-e- Bangla Rd
Hazaribagh, Dhaka- 1209.
Md. Salim Ahmed
8626492
Al hazi Kazi Abdul Kadir
124/2, Sher-e- Bangla Rd
Hazaribagh, Dhaka- 1209.
8129864
Hazi Md. Bashir
8612109
Md. Abul Kalam
8628529
Md. Golam Rabbani
M/S. Kasim Tannery
136/5, Hazaribagh
Dhaka- 1209.
113, Hazaribagh
Dhaka- 1209.
110, Hazaribagh, Dhaka- 1209.
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
95, Gozmohal, Hazaribagh
Dhaka- 1209.
105
Md. Abul kasam
9662840
Md. Shamsul Huda
38.
M/S. Razibe Leather Complex
95/4, Gozmohal, Hazaribagh
Dhaka- 1209.
122, Hazaribagh, Dhaka- 1209.
9662840
39.
M/S. Son Light Tannery
40.
M/S. Karsaj Tannery
41.
8625078
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 Master
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.
79/A, Hazaribagh, Dhaka- 1209.
53.
M/S. Manik& Sohaj Brotgers
Tannery
M/S. Anjuman Trading Corporation
54.
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.
Hossain Ahmed
Md. Hanif
Md. Sarij Miha
8628867
79, Hazaribagh, Dhaka- 1209.
106
Md. Shamsul Huda
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
42, Hazaribagh, Dhaka- 1209.
Md. Abu Bakker Siddque
71.
M/S. A B S Tannery
8625230
Md. Torea Ullah
Hazi Md. Shajahan
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.
84.
M/S. Hossain Brothers
Tannery
M/S. Kalu Leather Corporation
83/1, Hazaribagh
Dhaka – 1209.
42/10. Sonatongho , Hazaribagh
Dhaka- 1209.
68/1, Hazaribagh, Dhaka- 1209
85.
M/S. Aziz Tannery
148/2, Hazaribagh, Dhaka- 1209
Samsur Rahman
86.
M/S. Globe Tannery Ltd.
118, Sher-e- Bangla Road
Hazaribagh, Dhaka- 1209
M A Bari
43, Sher- E Bangla Road
Hazaribagh, Dhaka- 1209
107
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, 0175
042959
9667075
Hossain Ahmed Bhuiyan
Mahabub Alam
87.
M/S. S & S Tannery
Hazaribagh, Dhaka-1209
Md. Abdur Rahim
88.
M/S. J A Leather
61, Hazaribagh, Dhaka-1209
Md. Abdul Ajij
89.
M/S. Johir Trading Industries
Md. Johir
90.
M/S. H S Tannery
91.
M/S. Chowdhury & Co.
92.
M/S. Jakir Hossain Tannery
93.
M.S. Zoobli Tannery
121/4, Sher-e- Bangla Rd
Hazaribagh, Dhaka – 1209
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
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
Md. Sala Uddin Chowdhury
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. Ruhul Amin
100. M/S. Muslim Tannery
108. M/S. Abul Bashar Tannery
109. M/S. Dhaka Nagar Tannery
108
Hafez Ahmad
Md. Hasan Chowdhury
Md. Shekantor Hossain
Nurul Haque
Sala Uddin Ahmed
Hazi Somsher Ali
Zohir Ahmad
Md. Abul Kalam
Md. Abul Bashar
Abul Hossain
110. M/S. Jasim Tannery
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
117. MS. Iqbal Brothers Tannery
135/C-2, Sher-e- Bangla Rd
Hazaribagh, Dhaka – 1209
24/C, Kalunagar, Hazaribagh, Dhaka-1209
Md. Sasuddin Munshi
Major Monjur Kader (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
118. MS. Mukta Tannery
119. Prominent Tannery Ltd.
120. M/S. Sayful Leather
123. M/S. Ismail Leather Corporation
Hazi Ismail Hossain
Sayed Md. Shahidullah
Md. Monir Hossain
121/B, Sher-e- Bangla Rd
Hazaribagh, Dhaka – 1209
124. M/S. Prince Tannery
135, Sher-e- Bangla Rd
Hazaribagh, Dhaka – 1209
125. M/S. Al-Hera Leather Industries Ltd. 79, Water Works Road, Posta, Dhaka
Md. Ismail
126. M/S. Dincum Shoes Ltd.
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
Md. Shirah-ud-doullah
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
109
Md. Zahangir Hossain
Hafez Muzahidul Haque
Md. Mozaffar Hossain
Hazi Md. Abul Bashar
Hossain Ahmed Bhuiyan
134. Hena Leather
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
Bahar
Md. Mozibur Rahman
44/1,
Md. Zamadul Haque
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. 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
1.
2.
3.
4.
5.
6.
7.
8.
9.
Name of the Importer
Name of the Firm
Address
Md. Mizanur Rahman(Mesbah)
Chairman (BCIMA)
Md. Mohsin Bhuiyan
Md. Khasrul Alam
Md Mokhlesur Rahman
Md. Morshed Haider
Md. Bulbul Aiub
AIM Associate/ Imaco
124 Dhaka Tannery Market, Hazaribagh
Latex Tradelink
M/s Tanvir & Co
Haider Traders
B.N.C
20, Sher-e-Bangla road, Hazaribagh
130 KohinoorTannery market, Hazaribagh
28, Sonatongar, Zikatola, Dhaka
28, Sonatongar, Zikatola, Dhaka
3/6, Sonatongar, Zikatola, Dhaka
Md. Tofail Ahmed
Md. Habibur Rahman
Hazi Rabiullah
T.A Trading
Rupsi Traders
Taj Chemical
130 KohinoorTannery market, Hazaribagh
124 Dhaka Tannery Market, Hazaribagh
124 Dhaka Tannery Market, Hazaribagh
110
Md. Altaf Hossain
A.H Enterprise
99 Hazaribagh Dhaka
Chemitan Limited
124 Dhaka Tannery Market, Hazaribagh
12.
13.
14.
15.
16.
17.
18.
Mazakat Harun Manik
General Secretary (BCIMA)
Md. Azizul Haque Hawladar
Maksudur Rahman Shopon
Mostofa Akter Hossain
Md. Abul Hossain
Abdur Rouf Sabuj
T.M Manjur Hossain
Md. Iunus Khan
Romo Enterprise
Gonipur Agency
Fair International
Labony Traders
Chemirex International
Mahai Trading
99 Hazaribagh Dhaka
87, Sher-e-Bangla road, Zikatola
86, Sher-e-Bangla road, Zikatola
124 Dhaka Tannery Market, Hazaribagh
20, Sher-e-Bangla road, Zikatola
146 Hazaribagh Dhaka
165 Agrabad Chittagong
19.
20.
Abu Musa
Md. Mijanur Rahman
27 kalurghat Chittagong
130 Agrabad Chittagong
21.
22.
23.
24.
25.
26.
27.
Md. Amanullah
Md. KhodaBoks
Sirajul Islam
Abul Khayer Bhuiyan
Md Aiub Ali
Md. Alauddin Hawladar
Md. Habibur Rahman Babul
Md. Sayedul Islam
115, Sher-e-Bangla road, Khulna
23 Farajipara, Dalmil Road, Khulna
24/2 Azimpur, Dhaka
58, Terribazar, Chittagong
155, Dewanhat, Chittagong
Bibir Pukurpar, Barisal
Alokanda, Barisal
49, Station Road, Dinajpur
Azmal Hossain Bhoje
Md. Zahangir Hossain
Md. Ainul Haque
Rafiqul Islam Badal
Md. Faruq Hossain
Iliasur Rahman Badal
Samsul Alam
Md. Aworangojeb
Shamim Iqbal
Talukdar Guest House, Syedpur, Nilphamari
6/1 Armanitola, Dhaka
10/2 Armanitola, Dhaka
23 TantiBazar Dhaka
23 TantiBazar Dhaka
10 Chalk MughalTuli, Dhaka
20 Sena Kalyan Bhaban, Motijheel, Dhaka
53 Motijheel, Dhaka
67 Motijheel, Dhaka
10.
11.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
M/s Ilias & Brothers
Shahnewaj Khan
Md. Sadequr Rahman
Md. Selim Reja
Jafar Ahmed
Borobazar Ananda Mahol, Mymensing
10 Station Road, Mymensing
Babubazar, Jessore
Myzdi Court, Noakhali
Abul Kalam Azad
Abdur Rouf Mollah
Abdur Razzak Bishwas
26, Bangshal Road, Dhaka
31 Nyabazar Market, Dhaka
35 Urdu Road Dhaka
111
45.
46.
47.
48.
49.
50.
51.
52.
53.
Hazi Bulbul Ahmed
35 Urdu Road Dhaka
Md. Lutfur Rahman
Md. Delwar Kader
Md. Shakawat Hossain
Amar Saha
Abdus Sattar
Monjurul Haque Niru
Md. Dulal
Md. Fazlul Mukit
14/15 Ispahani Building, Motijheel, Dhaka
6 Motijheel, Dhaka
Trade Exchange
M.A Corporation
20, Sher-e-Bangla road, Zikatola
130 KohinoorTannery market, Hazaribagh
9, Dewan monjil, Sonatongar, Dhaka
Progressive Leather & Footwear
Co.
20, Sher-e-Bangla road, Hazaribagh
124 Dhaka Tannery Market, Hazaribagh
H: 7, R: 4, Dhanmondi, Dhaka
143/A Hazaribagh
950/B Yakub Building, Khatunganj, Chittagong
1/5 Mizan Tower, Kalyanpur, Dhaka
20, Sher-e-Bangla road, Hazaribagh
143/A Hazaribagh, Dhaka
54.
55.
Md. Zakir Hossain
Md. Shafiqul Islam
56.
57.
58.
59.
60.
61.
62.
Md. Tarikul Islam (Mukul)
Khondaker Ahad Ahmed
Abul Kalam Azad
Md. Nurul Anwar
Md. Faruk Hossain
Md. Rafiqul Islam Babul
Hazi Md. Abdus Salam
Rawsan Uz Zaman
R.M International
Organo MultiTrade Int’l
A.T.L
Exim Trade Int’l
Bangladesh Leather Syndicates
70.
71.
72.
T.M Delwar Hossain
T.M Belayet Hossain
S.M Kamrujjaman
Sirajul Islam
Md. Tarek Hossain
Hazi Md. Yusuf
A.K Moniruzzaman
Moklesur Rahman Patwari
Abul Kalam Azad
SF Trading
All Leather Trade
M/s Lipi Leather
Romisa Int’l
Milon Enterprise
Imon Trading Corp.
13 Sahjahan Tannery Block, Hazaribagh
96/4 Monesshar road, Zikatola
124/B Hazaribagh, Dhaka
130 KohinoorTannery market, Hazaribagh
48, Sher-e-Bangla road, Hazaribagh
115 Hazaribagh
124 Hazaribagh, Dhaka
124 Hazaribagh, Dhaka
15/F Zikatola
73.
74.
Md. Siddikur Rahman
Khaza Ahmed
Buckman Laboratories
Asia Trading Corp.
15/F Zikatola
20 Sahjahan Tannery Block, Hazaribagh
63.
64.
65.
66.
67.
68.
69.
M/s Link Int’l
B.S Trading Co.
112
113