The building blocks of progress: Steel, ceramics and cable powering Bangladesh’s next chapter

Abbas Uddin Noyon. Sketch: TBS

As Bangladesh powers through rapid urbanisation, industrial expansion, and infrastructure megaprojects, three sectors are proving vital to this transformation: steel, ceramics, and cables. Once modest and largely import-dependent, these industries have grown into dynamic drivers of national development.

From bridges and metro rails to home interiors and electrification, they are laying the foundation of a modern, self-reliant economy.

Steel: Forging the infrastructure of tomorrow

Bangladesh's steel industry is experiencing rapid growth, now ranking second in South Asia after India in terms of consumption. The country currently uses over 8 million metric tonnes (MT) of steel annually, with production capacity slightly higher at 9 million MT, and expected to exceed 10 million MT in the next few years.

Fuelled by infrastructure megaprojects like the Padma Bridge, Metro Rail, Rooppur Nuclear Plant, and Karnaphuli Tunnel, as well as housing demand in urban and semi-urban areas, the sector has been growing at 8–12% annually over the last five to seven years.

"Sheikh Shabab Ahmed", Head of Corporate Affairs and Legal at Abul Khair Group, noted, "We've moved beyond traditional methods. Today, high-strength steel like B500DWR is being adopted by private firms, though the public sector still lags behind in this regard."

The industry is also expanding into high-rises, shipbuilding, and industrial parks. Rural demand is on the rise, boosted by steady remittance inflows. By 2030, annual steel demand is expected to reach 12–14 million MT, supported by improved safety standards, a focus on recycling, and import-substitution policies.

However, challenges remain. Bangladesh relies heavily on imports for raw materials like scrap and billets, making the sector vulnerable to global price swings. Port congestion, LC-related delays, and logistics issues further strain operations.

Yet, with per capita steel consumption still at around 45–50 kg—well below the global average of 230 kg—the sector has massive room to grow. As the country pushes toward its 2041 development goals, steel will continue to be a literal and figurative backbone of progress.

Ceramics: From luxury to everyday essential

What was once a luxury item has now become a staple in Bangladeshi households. The ceramic industry, which began in the 1960s with Tajma Ceramic Industries, has since evolved into a Tk6,500 crore sector, meeting 85% of local demand and exporting to over 50 countries.

With over 70 brands and 100 SMEs, the industry now employs more than 500,000 people. According to Mohammad Khourshed Alam, COO at AkijBashir Group, local firms have almost fully replaced imports, which made up 90% of the market in the 1980s.

Annually, the sector produces 25 crore pieces of tableware, 18 crore square feet of tiles, and 55 lakh sanitary ware items. Export earnings reached Tk600 crore last year, with strong demand from Europe and the Middle East.

Leaders in exports include Akij Ceramics, Shinepukur, Monno, Farr, and Star Ceramics. In tiles, Great Wall Ceramics leads, followed by Akij and Sheltech. Stella, a brand of Abul Khair, leads the sanitary ware market, producing 20 lakh pieces annually.

A rising middle class, urban housing boom, and affordability have propelled this growth. A USAID study noted a 200% industry growth over five years, particularly in tiles. Falling prices—down by 10–15%—have made ceramic products more accessible to the average consumer.

The industry has also attracted Tk8,500 crore in local investment, with international brands like Cotto, Grohe, and CBC setting up manufacturing in Bangladesh. Sheltech, Akij, and Meghna Group are among the biggest local investors.

Still, challenges persist. The tableware segment struggles against cheaper imports from China, India, and Vietnam. Rising gas prices, tax burdens, and a lack of skilled engineers also threaten growth. Industry leaders are calling for policy support, including lower raw material duties and incentives for domestic players.

With the right support, ceramics could soon become Bangladesh's third-largest export sector, after garments and leather.

Cables: Connecting the nation's growth

Driven by nationwide electrification and infrastructure development, Bangladesh's cable industry has grown sixfold over the past decade—from Tk2,000 crore to Tk12,000 crore. More than 120 companies now operate in the sector, employing over 50,000 people.

Leading the charge is BRB Cable Industries Ltd, which holds over 30% market share and employs 10,000+ people. "Infrastructural expansion and full electrification have spurred heavy local investment," said Parvez Rahman, BRB's managing director. "Yet, we still struggle in government projects where foreign-funded imports bypass local producers."

Like steel, the cable sector also relies on imported raw materials from Chile, China, India, Oman, and South Korea, which attract duties, while imported finished cables for mega projects often do not—creating a level-playing-field concern.

BBS Cables, the second-largest firm, recorded Tk647 crore turnover in FY 2020–21, with its second unit generating an additional Tk400 crore. It expects 15% growth this year. Bizli Cables, under Pran-RFL Group, has captured 10% market share in just eight years.

However, a growing threat comes from unauthorised and low-quality imports, particularly from India and China, and from non-branded small factories, which now hold 10% of the market. Industry voices are calling for stronger regulation and a preference for local cables in government procurement.

"If local cables are used in power plants and mega projects, not only will companies survive, but we'll also save precious foreign currency," said Kamruzzaman Kamal, Director (Marketing) at Pran-RFL Group.

The future looks promising. The government's plan to install underground cables in cities has spurred fresh investments. BRB and BBS have launched marine cable units, while Walton, Partex, and Alco Group are entering the market with export-quality ambitions.

Foundation for a self-reliant economy

Steel, ceramics, and cables are no longer just support sectors—they are pillars of Bangladesh's modernisation journey. From the ground beneath our feet to the wires powering our cities and the tiles lining our homes, these industries are transforming Bangladesh from the inside out. With the right policy support and continued investment, they are well-positioned to elevate the country into its next phase of growth—resilient, self-reliant, and future-ready.