AkijBashir aims to dominate cable market with three-layer safety technology

AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance.

In an interview with The Business Standard, Khorshed Alam, chief operating officer of Akij Bashir Group, discusses the group's entry into Bangladesh's cable and wire market, outlining its investment rationale, growth ambitions and focus on safety, quality and local manufacturing. The interview was conducted by Abbas Uddin Noyon, chief reporter of TBS.

What motivated AkijBashir Group to enter the cable and electric wire industry at this point, and why did you choose Eminence Electric Wire & Cables Ltd for acquisition?

Bangladesh is at a stage where infrastructure development, urbanisation and industrial expansion are all accelerating simultaneously. Reliable power transmission and safe electrical connectivity have therefore become critical national needs. As a diversified industrial group, AkijBashir sees the cable and electric wire segment as strategically aligned with our long-term vision of supporting national development through essential manufacturing.

From a business-structure perspective, our building materials division already contributes more than 60% of the group's overall portfolio. Our strategic objective has been to expand this division further so that we can offer most, if not all, key construction-related products under one trusted umbrella. Entering the cable industry is a natural extension of that strategy.

In our market research, we also identified clear gaps. On one side, certain dominant players have created unhealthy market dynamics, while on the other, several suppliers struggle with consistency and reliable delivery. We felt there was room for a credible, quality-driven player with a strong commitment to standards and supply assurance. Eminence Electric Wire & Cables Ltd offered an established manufacturing base, skilled workforce, and a compliance-oriented culture, allowing us to scale quickly without compromising quality.

How do you assess the current size and future potential of Bangladesh's cable industry?

In volume terms, the cable industry is already a large market, roughly estimated at around Tk12,000 crore. The growth outlook is strong, supported by public infrastructure projects, real estate development, industrial expansion, and rising safety awareness among consumers.

We believe the industry can sustain annual growth of 10-15% over the next 10 to 15 years, barring short-term disruptions. Another important trend is the gradual replacement of substandard cables with certified, higher-quality products. There is also scope for import substitution as local manufacturers adopt better technology. With advanced production facilities and new features, we want to meet rising customer expectations and energise the market.

What are your short- and long-term strategic goals for this venture in terms of market position and branding?

In the short term, our priority is operational stability, ensuring consistent quality, reliable supply, and strong distribution across key domestic markets. We want the brand to stand for safety, reliability and value from the outset.

In the long term, our plan is to expand the product portfolio, invest in advanced manufacturing technology, and gradually explore export opportunities. Ultimately, our goal is to position AkijBashir Cables among the leading players in the national market, with a reputation comparable to top regional brands.

What level of investment has gone into acquisition and expansion, and how has it been financed?

The investment includes both the acquisition of Eminence Electric Wire & Cables Ltd and capital expenditure for modernisation, capacity expansion and quality assurance systems. While we are not disclosing exact figures at this stage, it represents a substantial long-term commitment.

The project has been primarily financed through AkijBashir Group's own funds, reflecting our strong balance sheet and confidence in the sector. We are also receiving support from our valued financial partner, Jamuna Bank.

What production capacity are you targeting initially, and how will you scale up?

Initially, we are targeting a capacity of around 300 tonnes of copper cables and 200 tonnes of aluminium cables. The facility has been designed with scalability in mind, allowing us to expand capacity in phases. In the near term, we aim to increase this to around 600 tonnes of copper and 300 tonnes of aluminium as demand grows, both domestically and potentially in export markets.

How many jobs has this venture created so far?

Employment generation is a key part of our contribution. With the launch of AkijBashir Cables and our three-layer cable technology, we have already created employment opportunities for more than 700 people across manufacturing, quality control, logistics and sales. Our nationwide distribution network also supports significant indirect employment across Bangladesh.

What distinguishes AkijBashir Cables from existing competitors?

The most important distinction is our focus on safety and quality. AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance. This structure significantly reduces the risk of short circuits and current leakage and can withstand temperatures of up to 105 degrees Celsius, features not commonly available in the local market.

We believe fire risk linked to electrical wiring is a serious concern. While cables are often blamed, the real issue lies in raw material purity, manufacturing standards, and proper application. We source copper from LME-approved suppliers with 99.9% purity and use high-grade PVC from authenticated sources. We are fully committed to maintaining international standards.

Can improved local manufacturing reduce dependence on imported cables for major projects?

In the initial phase, our focus is on domestic, industrial and communication cables, including underground applications as urbanisation increases. More specialised, high-technology cables required for mega projects will come in our second phase. However, our long-term vision is clearly to reduce import dependence by developing advanced local manufacturing capabilities.

Pricing is always a concern for consumers. How will you balance quality and affordability?

High-quality raw materials inevitably cost more. For example, sourcing copper from LME-approved suppliers can be 30-40% more expensive than non-certified alternatives. But this purity directly impacts safety and longevity.

That said, we are very conscious of market realities. Our pricing strategy will remain competitive and aligned with existing products, without compromising quality. We believe consumers are increasingly willing to pay a fair price for safety and reliability.

Where are your machinery and raw materials sourced from?

The factory we acquired was already well-equipped with world-class machinery sourced from Europe, Germany, China and India. For raw materials, copper will be sourced mainly from Singapore, while PVC will come from China and partly from India.

Who are your initial target customers?

Our primary focus is domestic wiring, followed by industrial and communication cables. Given AkijBashir Group's strong brand acceptance among general consumers, we see domestic cables as a natural starting point. Gradually, we will move into higher-voltage and specialised cable segments.