SQ Group builds electrical industrial complex in Mirsarai to meet growing local demand

Highlights:

• SQ Group is building a Tk343 crore electrical complex in Mirsarai
• The facility will manufacture cables, transformers and diverse electrical products
• SQ plans to create 2,000 jobs by June 2027
• Bangladesh's electrical products market is worth Tk40,000-50,000 crore
• Imported raw materials and skilled-worker shortages remain major challenges
• SQ seeks better export incentives and effective one-stop government services

SQ Group is developing an integrated electrical products manufacturing complex at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, as part of its plan to reduce import dependence and eventually enter export markets.

The complex will manufacture cables, transformers and a growing range of electrical products, including busbars, switches, sockets, circuit breakers, smart meters, lighting products, electric fans, submarine cables and super-enameled wires.

The group has invested around Tk343 crore in the project so far, developing the facility on approximately 20 acres of land.

Infograph: TBS

Mohammad Abdullah Al Masum, director and head of corporate sales at SQ Electricals, said the company wants to build a comprehensive electrical manufacturing hub at Mirsarai.

"Our plan is to manufacture all kinds of electrical products here. Our slogan is total power solution," Masum told The Business Standard.

The company currently employs around 600 people at the facility and plans to increase direct employment to around 2,000 by June 2027 as production expands.

From cables to total power solutions

SQ Group entered the electrical products business in 2003 by supplying products to government agencies and began manufacturing transformers in 2004. It entered the cable business in 2011-12.

The Mirsarai project is now being developed as the foundation for a broader electrical manufacturing ecosystem.

Its planned product portfolio includes low- and medium-voltage cables, power cables up to 33kV, submarine cables, transformers, smart meters, lighting products, switches and sockets, circuit breakers, electric fans, busbar trunking systems and super-enameled wires.

The company plans to expand production in phases, manufacture products that are currently imported, strengthen research and development, improve automation and quality control, create skilled jobs and eventually expand into export markets.

Tk40,000cr-50,000cr market

Bangladesh's annual market for electrical products, including cables, transformers, circuit breakers and switchgear, is estimated at around Tk40,000-50,000 crore, according to industry estimates.

The cable market alone has grown sharply over the past two decades. From around Tk1,000-2,000 crore, it has expanded to an estimated Tk10,000-12,000 crore, growing by roughly 10-15% annually, according to sector insiders.

Local companies such as BRB, Bijli, Walton, Partex and SQ Electricals have expanded production of cables and other electrical equipment, including high-voltage and specialised products.

Yet Bangladesh still imports around 15-20% of electrical products, particularly specialised and high-voltage equipment, mainly from China, India, Japan and European countries.

SQ Electricals currently manufactures cables up to 33 kV and has developed capacity to produce cables rated up to 132 kV.

The company expects demand for high-voltage underground cables to rise as Bangladesh gradually moves towards underground power distribution in urban areas.

"Overhead cables will no longer be sufficient. The government has plans to move towards underground distribution, and we are preparing to manufacture cables up to 132 kV accordingly," said Masum.

Imported raw materials remain a hurdle

Heavy dependence on imported raw materials remains one of the biggest challenges for local electrical manufacturers.

Masum said high duties on raw materials make it difficult for Bangladeshi manufacturers to compete in export markets.

"If we import the raw materials with high duties and then try to export the finished products, it becomes very difficult to compete internationally," he said.

He called for a review of the duty structure, stronger export incentives and easier access to foreign currency and letters of credit.

Skilled manpower shortage

The shortage of skilled workers is another major challenge for manufacturers at NSEZ.

Because of the economic zone's relatively remote location, companies face difficulties recruiting skilled engineers, technicians and workers locally.

Company officials said workers often cannot easily live near the economic zone, making transport and accommodation major considerations for recruitment and retention.

The company also wants to develop a skilled workforce locally through specialised technical training.

Md Ahosanul Kabir Nizami, Deputy Manager – HR & Admin at SQ Electricals, said Bangladesh has a large pool of trainable workers but needs stronger technical education.

"If the government establishes good technical colleges and provides proper training, our manpower can become competitive in this sector as well," he said.

The company also currently relies on foreign technical experts, particularly during machinery installation and commissioning. Officials said developing domestic technical expertise will be essential if Bangladesh wants to build a competitive electrical manufacturing industry.

One-stop service needs to work

SQ Electricals also wants the Bangladesh Economic Zones Authority's one-stop service to become more effective.

Company officials said investors still have to deal with multiple agencies for environmental clearances, trade licences and other approvals.

"These services should genuinely be available through the one-stop service so investors do not have to run from one government office to another," Nizami said.