Akij Ceramics tops local tableware market
Industry experiences decline in FY24
In just three years, Akij Ceramics has emerged as the leading player in Bangladesh's tableware market, capturing 22.74% of the local market share in the last fiscal year.
With a turnover exceeding Tk171 crore, Akij surpassed its competitors to secure the top spot. However, Star Ceramics remains the leader in the export market.
According to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), tableware sales in the country totalled Tk756 crore in FY24, with Akij Ceramics holding the largest share.
Shinepukur Ceramics, in the second position, recorded a market share of 16% with sales of Tk121 crore.
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Akij Ceramics officials said their success is due to their aesthetically appealing designs and high-quality products, such as dinner sets, tea sets, coffee sets and rice bowls, which have become popular in the local market. They also credit competitive pricing as a key factor in driving sales.
Mohammad Khourshed Alam, director (operations) at Akij Bashir Group, said the company's goal from the start was to become the number one in the domestic market.
"We focused on higher production capacity, innovative marketing and superior design and quality," he explained. "This approach has helped us win customer acceptance."
Alam also noted significant success in exports, with the company aiming to reach the number one position in the export market by the end of the year.
In FY24, Akij Ceramics exported products worth approximately Tk57 crore, ranking fifth in the country's tableware export market. Leading the export market is Star Ceramics, which exported Tk91 crore worth of products.
On the global stage, Shinepukur Ceramics (part of the Beximco Group) holds the second spot with Tk81 crore in sales, followed by Paragon with Tk71 crore and Artisan Ceramics with Tk65 crore exports.
Akij Ceramics has been focusing on markets in Italy, Germany, France, and Norway, according to Khourshed Alam, who noted that the company has engaged with retail brands in these countries, receiving positive feedback on its product quality and designs.
"We are confident of securing a substantial share of the European market in the near future," he added.
In 2018, Akij Group established a tableware factory on 25 acres in Trishal, Mymensingh, and began production in late 2021. Initial investment was Tk300 crore, which has since increased. The company is also expanding, with plans to develop a ceramics hub across 150 acres, with an investment of Tk1,000 crore.
Negative growth in industry
Despite Akij Ceramics' success, the tableware industry has experienced a decline in both local sales and exports compared to the previous year.
According to BCMEA, total exports of tableware products in FY24 dropped to Tk514 crore, a 13.20% decrease from the previous year's Tk592 crore.
In the local market, sales remained almost stagnant, totalling Tk756 crore, a marginal decrease of 0.18% from the previous year's Tk757 crore.
Irfan Uddin, general secretary of BCMEA, said the slowdown was due to various factors, including political instability and energy issues.
"Gas, a critical raw material for the ceramics industry, has seen a 200% price increase over the past five years. Meanwhile, global raw material costs have risen by at least 50% and an increasingly stronger dollar has added another 40%," he said.
He also mentioned that local market delivery charges, marketing expenses and labour costs have also surged. "These factors, coupled with inconsistent utility supply, have severely affected both production and exports."
