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To Study the Current Market Scenario and the Future Prospect of the Leather Chemical Industry of Bangladesh

To Study the Current Market Scenario and the Future Prospect of Leather Chemical Industry of Bangladesh

Internship Report
MR. AZMAL HOSSAIN Executive Director ACI Trading Limited.

Submitted To:

Mohammad Tawhid Reaz


Internee, ACI Trading Limited.

Submitted By:

ADVANCED CHEMICAL INDUSTRIS LIMITED

245, Tejgaon Industries Area, Dhaka- 1208.


Date: 25 June, 2006.

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

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)

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,

Roll 037 Batch 38 MBA Program Institute of Business Administration University of Dhaka

Mohammad Tawhid Reaz

TABLE OF CONTENTS
Pg. EXECUTIVE SUMMARY 1 3 3 3 3 3 3 4 4 5 6 6 6 6 6 7 7 8 8 8 9 9 10 10 10 10 11 11 12 12 13 15 16 16

CHAPTER ONE
1. 1.1. 1.2. 1.2.1 1.2.2 1.3 1.4 1.5 INTRODUCTION ORIGIN OF THE REPORT OBJECTIVE BROAD OBJECTIVE SPECIFIC OBJECTIVES SCOPE OF THE RESEARCH METHODOLOGY LIMITATIONS

CHAPTER TWO
2. 2.1. 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.3 2.4 2.5 2.6 2.7 2.7.1 2.7.2 2.7.3 2.8 2.9 2.10 2.11 2.12 2.13 2.13.1 2.13.2 ABOUT THE ORGANIZATION COMPANY PROFILE AT A GLANCE
STRATEGIC BUSINESS UNITS SUBSIDIARIES EXECUTIVE MANAGEMENT FINANCIALS (YEAR ENDING DEC, BACKGROUND COMPANY MISSION COMPANY VISION VALUES DISTRIBUTION NETWORK BUSINESS UNITS ACI PHARMACEUTICALS 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 ACI TARDING LIMITED ORGANOGRAM- BUSINESS MANAGEMENT ORGANOGRAM- BUSINESS SUPPORT FUNCTIONS

2004)

2.13.3 2.13.4 2.13.5 2.13.6 2.13.7 2.13.8 2.13.9 2.13.1 0 2.13.1 1 2.13.1 2 2.13.1 3 2.13.1 4

ORGANOGRAM OF ACI TRADING LIMITED (FOCUSING LEATHER CHEMICAL DIVISION) MISSION STRATEGIC OBJECTIVE INDENT SALES GROWTH FROM 2002-2005 & BUDGET 2006 EX-STOCK SALES GROWTH FROM 2002-2005 & BUDGET 2006 PROFIT & LOSS BUDGET 2006 SWOT ANALYSIS OF ACI TRADING LIMITED BUSINESS STRATEGY KEY DIFFERENTIATING FACTORS THAT ATTRACTS CUSTOMERS PRODUCTS, CUSTOMERS

17 18 18 18 19 20 21 21 22 22 23 23

&

SUPPLIER BASE UP TO

2005

MAJOR DEVELOPMENT THROUGH INITIATIVE IN INITIATIVE TO BE TAKEN IN

2005

2006

CHAPTER THREE
3. 3.0 3.0.1 3.0.2 3.0.3 3.0.4
LEATHER INDUSTRY OF BANGLADESH LEATHER INDUSTRY BACKGROUND THE LEATHER INDUSTRY IN BANGLADESH THE BEGINNING OF THE TANNERY POST LIBERATION PERIOD PRESENT CONDITION

24 24 24 24 24 25 25 27 27 27 31 31 31 34

CHAPTER FOUR
4. 4.0 PRODUCTION
LEATHER SECTOR IN THE ECONOMY OF BANGLADESH

CHAPTER FIVE
5 5.1 5.2
LEATHER EXPORT

LEATHER EXPORT PERFORMATION OF BANGLADESH SALES & EXPORTS OF LEATHER SECTOR ENTERPRISE/FIRMS

5.2.1 5.2.2 5.2.3

SALES & SALES & SALES &

EXPORTS: LEATHER PROCESSING EXPORTS: FOOTWEAR EXPORTS: LEATHER GOODS

35 36 36 39 39 40 40 40 41 43 43 44 45 46 46

CHAPTER SIX
6 6.1 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.3 RAW
MATERIALS

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

CHAPTER SEVEN
7 7.1 7.1.1 7.1.2 7.1.3 7.2 7.2.1 7.2.2 7.2.3 7.3 7.3.1 7.3.2 7.3.3 7.4 7.4.1 7.4.2 7.4.3 SWOT
ANALYSIS

STRENGTHS STRENGTHS STRENGTHS STRENGTHS

OF THE FIRMS: OF THE FIRMS: OF THE FIRMS:

LEATHER PROCESSING LEATHER FOOTWEAR LEATHER GOODS LEATHER PROCESSING LEATHER FOOTWEAR LEATHER GOODS LEATHER PROCESSING LEATHER FOOTWEAR LEATHER GOODS

46 46 47 48 50 50 51 52 53 53 54 55 56 56 57 59 60 60

WEAKNESSES WEAKNESSES WEAKNESSES WEAKNESSES

OF THE FIRMS: OF THE FIRMS: OF THE FIRMS:

OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES THREATS THREATS THREATS THREATS

OF THE FIRMS: OF THE FIRMS: OF THE FIRMS:

OF THE FIRMS: OF THE FIRMS: OF THE FIRMS:

LEATHER PROCESSING LEATHER FOOTWEAR LEATHER GOODS

CHAPTER EIGHT
8 PRODUCTION STAGES

8.1 8.2 8.3 8.3.1 8.3.2 8.3.3

PRODUCTION STAGES PRODUCTION STAGES

IN LEATHER PROCESSING INDUSTRY IN LEATHER GOODS & FOOTWEAR INDUSTRY DESCRIPTION OF THE VARIOUS STAGES OF LEATHER PROCESSING WET BLUE SECTION CRUST SECTION FINISHING SECTION

60 61 62 62 63 64 65 65

CHAPTER NINE
9.0 9.1 9.1.1 9.1.2 9.1.3 9.2 9.3 LEATHER CHEMICALS & ACCESSORIES (DATA COLLECTED FROM PRIMARY
SURVEY)

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 73 73 73 76 77 79

CHAPTER TEN
10.0 10.1 10.1.1 10.2 10.2.1
MAJOR PLAYERS OF THE LEATHER CHEMICAL INDUSTRY (DATA COLLECTED FROM PRIMARY SURVEY)

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 TOTAL QUANTITY WISE MARKET SHARE (FINISHING)

FINISH)

80 80 81 81

CHAPTER ELEVEN
11 11.1
FINDINGS AND RECOMMENDATIONS PROBLEMS OF MARKETING ACI TRADING AND STAHL INLEATHER CHEMICAL

83

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APPENDIX A1 APPENDIX A2 APPENDIX A3 APPENDIX A4 APPENDIX A5 APPENDIX A6 APPENDIX A7 APPENDIX B APPENDIX C1 APPENDIX C2 REFERENCES

85 91 92 95 96 98 107 111 113 117

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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

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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.

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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.

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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 ACIs 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

15

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 dont 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.

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Chapter-Two

About The Organization


2.1 Company Profile at a Glance:
Company Name Address Dhaka-1208. Phone Fax E-mail Web Page Company Logo : Advanced Chemical Industries (ACI) Limited : ACI Centre, 245, Tejgaon Industrial Area, : +88-02-9885694 : +00-02-9886029 : INFO@ACI-BD.COM : WWW. ACI-BD. COM :

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

17

2.1.3 Executive Management:


Mr. M Anis-Us-Dowla Dr. Arif-Dowla Mr. M Mohibuz Zaman Officer, Pharmaceuticals. Dr. F H Ansarey Executive Director, Agribusiness. Mr. Azmal Hossain Mr. Syed Alamgir Executive Director, Trade. Executive Director, Consumer Brands. Mr. Muallem A Choudhury Mr. Towfiqur Rahman Executive Director, Finance & Planning. General Manager, Operation. Mr. Priyatosh Datta Ms. Sheema Abed Rahman General Manager, Quality Assurance. General Manager, Corporate Service. Mr. Pradip Kar. Chowdhury Financial Controller Chairman Managing Director Chief Operating

2.1.4 Financials (Year Ending December 2004):


Authorized Capital: Paid-Up Capital: Sales: Taka 500 Million. Taka 161.70 Million. Taka 2,558 Million.

18

Numbers of Employees:

2161

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:


ACIs 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.

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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.

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 companys distribution centers are highly streamlined, computerized and automated. We are capable of maintaining a cold chain for some specialized range of products such as

20

vaccines and insulin. The combination of this advanced function and multi dimensional capabilities make it possible to handle hundreds of products efficiently.

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.

21

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.

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.

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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 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

23

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 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 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 2003 2003 161,700,000 2,239,565,258 29 85,413,760 40.0 5.28 1883 2004 2004 161,700,000 2,557,772,237 29 89,516,202 42.5 5.54 1924

24

Figure No: 2.1

Business Performance
business divisions Contribution by re ve nue 2 0 0 4

Figure No: 2.2

25

sales & profit Growth

14.21%

Figure No: 2.3

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.

26

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

2.13.1 Organogram Business Management

Managing Director
Figure No: 2.4

Executive Executive Executive Executive Director, Director, Director, Director, 2.13.2 Organogram Business Support Functions Pharma Agro Consumer Trade

Executive Director, Operation

27

Managing
Director

General Manager, Corporate

Financial Controller

General Manager, Distributor

Commercial Manager

Audit Manager

Figure No: 2.5

2.13.3 Organ gram of ACI Trading Limited (Focusing Leather Chemical Division)

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Dr Arif Dowla
Managing Director

Azmal Hossain
Executive Director (Trading)

Coordination Officer

A Khayer

Asst. Manger, Commercial

M S Dastidar

Textile Division

Leather Chemical Division

Chemical Division

Sr. Technical Sales Oficer

Saiful Azam Kashem

Technical Sales Oficer

Munirul Islam

Figure 2.6

2.13.4 Mission :

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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 0


Act 2002 Act 2003 Act 2004 Bud 2005 Act 2005 Bud 2006

1575

1,538

1855

686

904

30

Growth % 2003 2004 2005 2006 31.77 57.08 8.31 20.61

Reason for variance 05 Assumption for Bud06

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

80.0
2.13.7 Ex-stock Sales Growth from 2002-2005 & Budget 2006 70.0

60.0 50.0 40.0 30.0 20.0 10.0 0.0 31.0


Act 2002

78.7 54.42 29.8


Act 2003

53.6

30.8
31
Act 2004 Bud 2005 Act 2005 Bud 2006

Reason for variance05 Assumption for Bud06

Less ExxonMobil Plastics sales due to strategic import Stahl sales was behind due to recession in Leather Industry 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

32

2.13.8 Profit and Loss Budget 2006


Actual Actual Estimated 2003 2004 2005 Budget Variance 2006 %

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

27.47 28.25 22.15 22.15 5.32 6.10 16.18 16.74 7.83 9.26 1.80 0.93 9.63 10.19 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

49.97 41.00 8.97 17.60 10.56 1.21 11.77 2.39 0.50 2.89 0.06 0.60 15.32 1.50 12.75 2.64 10.11

70.00 60.55 9.45 22.10 11.39 1.22 12.61 3.35 0.50 3.85 0.04 0.60 17.10 1.50 15.96 2.80 13.16

40.08 47.68 5.36 25.57 7.81 0.83 7.09 40.17 0.00 33.22 -33.33 0.00 11.59 0.00 25.14 6.06 30.12

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 suppliers own strategy Much dependent on few major suppliers Some major Raw Material suppliers absence in Portfolio

33

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 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.

34

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 intl 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


Chemical Total Product base Total customer Total supplier 60 70 29 Textile 35 36 4 Leather 70 60 2 Total 165 166 35

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

35

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


1. 2. 3. 4. 5. 6. 7. 8. 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

Chapter-Three

Leather Industry of Bangladesh

36

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 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

37

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) Chittagong Jamalpur Rangpur Khulna

194 3 1 1 18 1 1 1

units

Total : 220 units

38

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.

39

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 countrys 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

Year

Unit (Million Sq. Meter) 1993-94 14.60 1994-95 15.00 1995-96 15.90 1996-97 11.95 1997-98 12.12 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

Source:

40

*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

Table- 4.3 : Yearly production of Leather Sector by Different Enterprises/Firms


Firm Types Total Production

41

Wet blue (000 sqf.) Crust (000 sqf.) Finished (000 sqf.) Leather Footwear (000 pairs) Leather Goods (000 pcs.) Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005

35060 66172 134820 16766 766

Table 4.4: Leather Production of the renowned Tanneries of Bangladesh: Name of the Organization Apex Tannery Bay Tannery SAF Industries Bata Shoe co (BD) ltd Bengal Leather Complex Dhaka Hide & Skins H&H /H.B Tannery Phoenix Leather Karim Leathers Lexco Ltd. Samina Tannery Riff Leather Modina Tannery Reliance Tannery B.S Leather Progoti Leather Complex Vulua Tannery Kalam Brothers Amin Tannery Anwer Tannery Cottege Customer Annual Production (SFT/Month) 1700,000 600,000 600,000 400,000 500,000 1400,000 500,000 400,000 500,000 200,000 500,000 200,000 150,000 600,000 200,000 500,000 600,000 300,000 200,000 200,000 1000,000 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 Crust Crust Crust Crust, Repolishable, S/A

42

Total

11250,000 SFT/MONTH

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 Goat & Sheep Total:

184 Mio Sq.Ft. 63 Mio Sq.ft 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 24016 873 21031 1995 24859 1070 30330 1996 24433 1124 33312 1997 24816 1158 34478 1998 24220 1110 33500 1999 24480 1121 33800 2000 24730 1132 34100 2001 24830 1143 34400 2002 (est.) 24830 1143 34400

Source: FAO, 2003

43

Chapter-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 11 th 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.

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

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

44

July 2005- June2006 Export Performance for July 2004-Nov 2005 Export Performance for July 2005-Nov 2006

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:
(Value in million dollar)

Year

Total Export

Leather, Leather Footwear and Leather Goods export 219.39 246.89 290.68 252.49 229.72 211.41 220.93

1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

5312.86 5752.20 6467.30 5986.09 7602.99 8654.52

Leather, Leather Footwear and Leather Goods as % of Total Export 4.39 4.30 4.50 4.22 2.78 2.55

45

2005-2006

10159.20*

235.00*

2.31

Source: Export Promotion Bureau of Bangladesh (EPB)

*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 Belgium 65 Benin 21 Brazil 745 Cambodia 426 Canada 35 China 6049 Czech Rep. 5 East Timor 13 El Salvador 50 Finland 1 France 753 Germany 189 Greece 26

Country India Indonesia Italy Japan Korea DPR. Korea Rep. Local Sale Mexico Myanmar Netherlands Norway Oman Pakistan Philippines Poland Portugal

Export 1679 153 29791 10723 39 20151 540 1123 21 634 37 10 62 166 3767 51

Country Saudi Arabia Singapore S. Africa Spain Sri Lanka Taiwan Thailand Turkey U.A.E U.K U.S.A Ukraine Uruguay Venezuela Vietnam

Export 2 137 243 5701 11 7953 742 8 23 1059 645 69 575 40 8681

46

Hong Kong Hungary

54584 4

Qatar Samoa

6 5

Tota l

158621

Source: Foreign Trade Statistics of Bangladesh, 2001-2002

Table 5.4: Export of Leather, Leather Footwear and Leather Goods


Year Leather Leather Footwear % 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

Export % of Total Export 1998-1999 168.25 76.69% 46.55 1999-2000 195.05 79.00% 48.26 2000-2001 253.93 87.36% 33.63 2001-2002 207.33 82.1% 41.29 2002-2003 191.23 83.2% 35.06 2003-2004 211.41 79.50% 50.86 Bangladesh Export Promotion Bureau

% 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 Leather Processing Leather Footwear Leather Goods Total Sales (Local) 2847600 2456349 0 5303949 Exports 15622354 1682140 437389 17741883 Total Sales 18429954 4138489 437389 23005832

Note: Data for the period Jan.-Dec.2003.

Table 5.6 : Yearly Value of Sales and Exports by Types of Firms (%) Firm Types Leather Processing Leather Footwear Sales (Local) 15.42 59.35 Exports 84.58 40.65 Total Sales 100 100

47

Leather Goods Total

0 23.01

100 76.99

100 100

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.) Product Category Wet Blue Crust Finished Local Sales Direct 35060 5281 4814 Through Agent 0 3400 0 Total Local Sales 35060 8681 4814 Total Exports 0 57491 130006 Total Sales Volume in sf. 35060 66172 134820

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 Wet Blue Crust Finished Total Local Sales Direct 1959300 318850 349450 2627600 Through Agent 0 220000 0 220000 Total Local Sales 1959300 538850 349450 2847600 Total Exports 0 4141826 11440528 15622354 Total Sales Volume (in Tk. 000) 1959300 4680676 11789978 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 (%)

48

Products category Wet Blue Crust Finished Total

Direct 100.0 6.81 4.58 18.36

Local Sales Through Agent 0 4.70 0 1.54

Total Local Sales 100.0 11.51 2.96 15.42

Total Exports 0 88.49 97.04 84.58

Total Sales value 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 Direct Volume (pair) Value in Tk.000 Note: Data for the period Jan.-Dec.2003. Table5.11: Annual Sales and Exports by the Leather Footwear Firms (%) Local Sales Direct Volume (pair) Value in Tk.000 50.38 63.39 Through Agent 0 0 Total Local Sales 50.38 59.35 Total Exports 49.62 40.65 8435500 2456349 Through Agent 0 0 Total Local Sales 8435500 2456349 Total Exports 8309750 1682140 Total Sales 16745250 4138489

Total Sales 100 100

Source: Leather Sector Census Study, LSBPC, 2005

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 Direct Volume (pcs) 0 Through Agent 0 Total Local Sales 0 Total Exports 764100

Total Sales 764100

49

Value in Tk.000

437389

437389

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:


2002-2003 Countries % of Total Value

(Value in `000 US$) 2003-2004 % of Total

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 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

Source: EPB Export Statistics

Table 5.14: Company wise Export of Leather Goods & Footwear from Bangladesh (Export Period: 01/01/2005 ~ 24/11/2005)

50

Name of the Company


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.

Value in US$
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

51

Source: Leather goods & Manufacturers & Exporters Association of Bangladesh.

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.

52

Table 6.1 -: Yearly Raw Materials used in the Leather Sector to produce different types of product (in Tk.000) Types of Product Wet blue Crust Finished Footwear Name of Raw materials Raw hides Wet blue Crust Local 1276262 2756629 7428519 1146399 90466 Foreign 5040 41300 34000 38236 0 Total 1281302 2786474 7462519 1184635 90466

Finished, lining leather, Sole etc. Finished & lining Leather Goods leather Source: Leather Sector Census Study, LSBPC, 2005

Table 6.2 -: Yearly Raw Materials used in the Leather sector by types (%) Types Wet blue Crust Finished Footwear Leather Goods Name of Raw materials Raw hides Wet blue Crust Finished, lining leather, Sole etc. Finished & lining leather Local 99.60 98.93 99.54 96.77 100 Foreign 0.40 1.07 0.46 3.23 0 Total 100 100 100 100 100

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

53

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 Local Hide and Skin Quantity (000pcs) 856 107 1035 115 41 0 2154 Value in Tk.000 1074032 88835 97495 12034 3866 0 1276262 Foreign Quantity (pcs) 0 0 0 0 0 4 4 Value in Tk.000 0 0 0 0 0 5040 5040 Quantity (000pcs) 856 107 1035 115 41 4 2158 Total Total Value Tk.000 1074032 88835 97495 12034 3866 5040 1281302

Cow Buffalo Goat Sheep Cow/Buffalo head Camel Total

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 Cow/Buffalo head Camel Total Local Value (%) 100 100 100 100 100 0 99.60 Foreign Value (%) 0 0 0 0 0 100 0.40 Total Value (%) 100 100 100 100 100 100 100

54

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 Local Raw materials for Quantity Value in crust (000sqf) Tk.000 Cow Buffalo Goat Sheep Others Camel Total 23358 11210 11016 1848 240 0 47672 1524583 447936 603330 161580 19200 0 2756629 Foreign Quantity (000 sqf) 530 0 0 0 0 100 630 Value in Tk.000 33300 0 0 0 0 8000 41300 Quantity (000sqf) 23888 11210 11016 1848 240 100 48302 Total Total Value Tk.000 1557884 444480 603330 161580 19200 8000 2786474

Source: Leather Sector Census Study, LSBPC, 2005 Table 6.6: Yearly Raw Materials used for Producing Crust (%) Raw materials for crust Cow Buffalo Goat Sheep Others Local Value (%) 97.86 100 100 100 100 Foreign Value (%) 2.14 0 0 0 0 Total Value (%) 100 100 100 100 100

55

Camel Total

0 98.52

100 1.48

100 100

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.

56

Table 6.7 : Yearly Raw Materials used for Producing Finished Leather Raw materials for finished Cow Crust Buffalo Crust Goat Crust Sheep Crust Total Local Quantity (000sqf) 55488 8822 23019 5412 92741 Value in Tk.000 4396440 494124 1979055 558900 7428519 Foreign Quantity (000 sqf) 400 0 0 0 400 Value in Tk.000 34000 0 0 0 34000 Total Quantity (000sqf) 55888 8822 23019 5412 93141 Total Value Tk.000 4396840 494124 1979055 558900 7462519

Source: Leather Sector Census Study, LSBPC, 2005

Table 6.8 : Yearly Raw Materials used for Finished Leather (%) Raw materials for finished Cow Crust Buffalo Crust Goat Crust Sheep Crust Total Local Value (%) 99.23 100 100 100 99.55 Foreign Value (%) 0.77 100 100 0 0.45 Total Value (%) 100 100 100 100 100

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

57

and Pakistan. China, India and Italy are the major sources of in-sole leather. footwear raw materials are also imported from Canada, France and Germany.
Table 6.9: Yearly Raw Materials used for Producing Footwear Name of raw materials for footwear Finished Leather Lining Leather Artificial Sole In-sole Leather Others Total Local Quantity sqf. Value in Tk. 000 000 9932 2944 1806 639 7 15328 823434 134023 155317 33063 562 1146399 Foreign Quantity sqf. 000 225 506 855 45 0 1631 Value in Tk. 000 25350 8960 3266 660 0 38236 Total quantity 10157 3450 2661 684 7 16959 Total

Some

Total value Tk. 000 848784 142983 158583 33723 562 1184635

Table6.10 : Raw Materials used for Footwear (%) Raw materials for Footwear Finished Leather Lining Leather Artificial Sole In-sole Leather Others Total Local Value (%) 97.01 93.73 97.94 98.04 100 96.77 Foreign Value (%) 2.99 6.27 2.06 1.96 0 3.23 Total Value (%) 100 100 100 100 100 100

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

58

Raw materials for crust Finished Leather Lining Leather Total

Local Quantity (000sqf) 1365 50 1415 Value in Tk.000 87366 3100 90466

Foreign Quantity (000 sqf) 0 0 0 Value in Tk.000 0 0 0 Quantity (000sqf) 1365 50 1415

Total Total Value Tk.000 87366 3100 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/C alf Goat/Sheep Dhaka 13,78,700 39,40,000 Chittagong 12,60,500 43,37,000 Rajshahi 15,90,800 55,16,000 Khulna 10,72,700 59,07,000 Total 53,02,700 1,97,00,000

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO

Chapter-Seven

59

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
Production capacity Competitive price Cheap Labour Market Information Better management

Percent of Total Firms


70% 67% 66% 56% 54%

60

Strengths: Leather Processing 80 70 % of Total Firms 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

61

Production capacity Better quality of management Sufficient supply of processed leather Trained manpower Quality Control

74% 66% 65% 60% 58%

Strengths: Footwear % of Total Firms 80 60 40 20 0 Production capacity Better management Supply of processed leather 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.

Trained manpower

Quality Control

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 Strengths Percent of Total Firms

62

Better management Quality Quality control Sound environmental management Market information Production Capacity
Strengths: Leather Goods

71% 69% 64% 60% 48%

80 70 % of Total Firms 60 50 40 30 20 10 0 Better management Quality control Environmental management M arket information Production Capacity

M ajor 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

63

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 Low Volume of Production Financial Crisis Weak Marketing Inefficient Management Percent of Total Firms 82% 80% 64% 46%

Weaknesses: Leather Processing 100 % of Total Firms 80 60 40 20 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

64

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 Financial Crisis Weak Marketing Low Volume of Production Uncompetitive Product Price

Percent of Total Firms 92% 86% 84% 80%

Weaknesses: Leather Footwear % of Total Firms 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

65

Financial Crisis Weak Marketing Low Volume of Production Uncompetitive Product Price

88% 87% 87% 74%

Weaknesses: Leather Goods 90 % of Total Firms 85 80 75 70 65 Financial Crisis Weak M arketing M ajor Weaknesses Low Volume Uncompetitive Price

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 Cheap Supply of Labour Sufficient Supply of Hide and Skin Percent of Total Firms 82% 64%

66

Stable Global Demand Favourable Business Environment Conducive Industrial Policy

62% 60% 58%

Opportunities: Leather Processing % of Total Firms 100 80 60 40 20 0

Favourable Environment

Sufficient Supply of Hides

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 Stable Global Demand Conducive Industrial Policy

Percent of Total Firms 60% 58%

67

Conducive Industrial Policy

Cheap Supply of Labour

Stable Global Demand

Favourable Business Environment Cheap Supply of Labour Duty Free Access in Major Markets

57% 51% 51%

Opportunities: Footwear % of Total Firms 65 60 55 50 45 Stable Global Demand Conducive Industrial Policy Favourable Environment Major Aspects
Figure: 7.8 Opportunities of the Leather Footwear Manufacturers

Cheap Supply of Access in Major Labour Markets

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 Conducive Industrial Policy Favourable Business Environment Cheap Supply of Labour Stable Global Demand

Percent of Total Firms 66% 60% 58% 58%

68

Duty Free Access in Major Markets

51%

Opportunities: Leather Goods % of Total Firms 80 60 40 20 0 Conducive Industrial Policy Favourable Environment Cheap Supply of Labour Major Aspects
Figure: 7.9 Opportunities of the Leather Goods Manufacturers

Stable Global Access in Major Demand Markets

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 Disruption of Electricity Hartals, strike, and other disturbances Unstable Policy Environment External Competition Lack of Trained Labour

Percent of Total Firms 74% 72% 68% 64% 62%

69

Environment consciousness in Importing Countries Shortage of Water Supply

60% 58%

Threats: Leather Processing % of Total Firms 75 70 65 60 55 Disruption of Electricity Hartals, strike, and other disturbances Unstable Policy Environment Major Aspects
Figure: 7.10 Threats of the Leather Processing Firms

External Competition

Lack of Trained Labour

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:

70

Table 7.11: Threats for the Footwear Industry

Threats Disruption of Electricity Hartals, strike, and other disturbances External Competition Environment consciousness in Importing Countries Shortage of Water Supply

Percent of Total Firms 74% 68% 68% 60% 58%

Threats: Footwear 80 70 60 50 40 30 20 10 0

% of Total Firms

Disruption of Electricity

External Competition

Hartals, strike etc

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.

7.4.3 Threats to the Firms: Leather Goods

71

Environment consciousness

Shortage of Water Supply

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 Disruption of Electricity

Crust
Wet blue Leather

Percent of Total Firms 74% 64% 62%

Wet Blue

Lack of Trained Labour Raw/wet salted External Competition Hides & Skins (Sorted & Trimmed) Hartals, strike, and other disturbances

Finished
Crust Leather (Natural /dyed)

Splitting

60% 58%

Environment consciousness in Importing Countries Raw/Salted Weighing

Threats: Leather Goods


% of Total Firms

Samming

Sorting

Washing & Soaking 80 (in drum/ paddle/pit)

Shaving

Disruption of Electricity

Neutralization

Fleshing

Retaining/ Dyeing

Hydraulic Pressing

Fat liquoring (in drum) Figure: 7.12 Threats of the Leather Goods Manufacturers

Scudding

Major Aspects

Rebuffing & Dedusting

OtherPelt thanWeighing inadequate supply of electricity, leather goods manufacturing firms face lack of trained Setting labour force to be employed. Growing external competition and environment consciousness in the (By Color Coating importing countries may affect the hundred percent export-oriented leather goods sector of the Roller pad/spray country in near future. coater)
Deliming (in drum)

Chapter-Eight

Drying (Vacuum/ Tunnel/Natural)

Bating (in drum)

sawdust/Stages water) Production Ironing/Embossing

Conditioning (By

8.1 Production Stages in Leather Processing Industry


Pickling (in drum) Staking

Toggle Drying Tanning (in drum)

Color Coating (By Sprayer & drying)

Trimming

72

Plating/Glazing

Wet Blue

Crust

Finished

Environment consciousne ss
Drying

60 40 20 (In drum/ Liming 0 /paddle/pit)

Buffing & Dedusting Impregnation & Drying

Shaved weighing

Lack of Trained Labour

External Competition

Hartals, strike etc

73

8.2 Production Stages in Footwear and Leather Goods Industries Footwear


Leather Goods

Designing
Pattern Making Designing of Footwear

Designing
Pattern Making of Leather Goods

Cutting
1. Selection of Leather/Materials 2. Cutting 3. Splitting 4. Skiving

Cutting
1. Selection of Leather/Materials 2. Cutting 3. Splitting 4. Skiving

Closing
1. 2. 3. 4. 5. Embossing/ Printing Adhesive Folding Strap cutting Stitching

Closing
1. Embossing/ Printing 2. Adhesive 3. Folding 4. Strap cutting 5. Stitching

Finishing
Total Finishing Work

Finishing
Total Finishing Work

Footwear

Leather Goods

74

8.3 Description

of the various Stages of Leather Processing:

8.3.1Wet-Blue Section:
Name of operation Curing/ Preservation Soaking Objectives Dehydration Restore Moisture to original condition Soaking Preservatives / Enzymes Generic names of chemicals Chemicals Required

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

Liming Auxiliaries

Sodium sulfide, Sodium hydrosulfide. Hydrated lime powder (calcium hydroxide). Seldom slaked lime (lime paste). Sodium chlorite

Washing after liming Fleshing

Deliming

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

Deliming agents

Bating

Producing a smooth, clean grain by enzyme action, removing unwanted proteins

Bating Agents

Pickling

Prepaing pelt for chrome tanning by acidification

Pickling 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

75

Name of operation Chrome Tanning

Objectives Making Leather resistant to purification, Increasing Thermal Stability

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.

Sammying

Splitting Shaving

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

Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF

8.3.2 Crust Section:


Name of operation Neutralization Objectives Preparing Tanned leather for retannage Generic names of chemicals Neutralizing Agents Chemicals Required Sodium Carbonate, Borax

Sodium Bicarbonate, Ammonium Bicarbonate, Sodium (Sulphite,


Thiosulphate, acetate, formate), Calcium Formate etc. Phenol, Nepthalane, BNapthole, Aromatic Ether

Retanning Dyeing Fat liquoring

Using suitable chemicals for the final product requirement To impart requisite colour on leather To soften the leather

Retanning Agents Dyes Fat Liquoring Agents

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

76

Name of operation Setting Out Drying Conditioning Staking/Vibration Toggle Drying Trimming

Objectives 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

Generic names of chemicals

Chemicals Required

8.3.3 Finishing Section:


Name of operation Sorting Buffing Finishing Ground Coat

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

a. b. c.

Season Coat Top Coat Pressing Milling Final Gradation Measuring

Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF

77

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) Production type Wet-Blue Crust Leather Finished Leather Footwear Leather Goods Total Local Value in Tk.000 20,685 2322 1679 12660 1636 38982 Foreign Value in Tk.000 63,938 116720 44791 42609 18 268076 Total, Value in Tk.000 84,623 119042 46469 55269 1654 307058

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 24.44 Foreign Value 75.56 Total Value 100

78

Crust Leather Finished Leather Footwear Leather Goods Total

1.95 3.61 29.70 90.0 19.20

98.05 96.39 70.30 10.0 80.80

100 100 100 100 100

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 Value in Tk.000 73961 237 74198 Value % of Total 80.76 27.40 80.30 Foreign Value in Tk.000 17616 628 18244 Value% of Total 19.24 72.60 19.70 Total Value in Value% Tk.000 of Total 91577 865 92442 100 100 100

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) (Value in Tk.000) Quantity (MT)

Total (Value in Tk.000)

79

Sodium chloride Soaking Agent Enzymatic Soaking Agent Sodium Sulphide Lime Auxiliaries Bactericide Ammonium Chloride Sodium Carbonate Oxalic Acid Sodium Formate Magnesium Oxide Ammonium Sulphate/Dolomite Bating Agent Sulphuric Acid Formic Acid Basic Chrome powder Sodium Bicarbonate Masking Agent Preservative Total

1630.84 72.835 16.8 1 0.55 138 13.13 74.46 5.77 2.1 0.65 0.125 1956.26

13,642 2,770 690 161 1,518 181 1,342 168 89 11 113 20,685

4 17.8 15.54 228.65 72.015 13.825 46.745 44.17 14.18 48.23 27.915 18.86 53.59 8.41 73.55 512.92 54.12 6.96 6.96 1274.47

86 1,021 2,359 4,880 6,509 482 1,149 984 658 1,387 3,926 534 3,343 301 4,123 24,572 1,789 1,129 4,706 63,938

1634.84 90.135 15.54 228.65 87.715 13.825 47.745 44.72 14.18 48.23 27.915 156.86 62.02 82.87 78.55 513.02 54.77 6.96 6.79 3202.38

13,728 3,791 2,359 4,880 7,199 482 1,149 1,145 658 1,387 3,926 2,053 3,524 1,643 4,291 24,661 1,799 1,129 4,819 84,623

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 .

80

Table 9.5: Yearly Value of Chemicals used for the Production of Crust Leather Name of Chemicals Basic Chroming Sulphate Sodium Formate Na-EDTA Acrylic syntan Phenolic syntan Melamine /Urea syntan Replacement syntan Vegetable extracts Dyestuffs Fat Liquors Formic Acid/Acetic acid Dye Auxiliaries Preservative Aldhyde Tannin Total Local Quantity (MT) 0.75 1 2 2 1.8 2.5 1.4 3.5 1 0.13 16.07 (Value in Tk.000) 0 21 94 176 0 212 225 188 770 473 51 0 113 0 2322 Foreign Quantity (MT) 79.46 47 2.36 83.28 57.50 72.16 82.97 130.89 54.22 196 58.54 12.69 5.1 3.68 885.86 (Value in Tk.000) 3564 1233 217 9022 7891 8601 9222 8742 31506 26408 31667 2559 3633 956 116720 Quantity (MT) 79.46 47.75 3.36 85.28 57.50 74.16 84.77 133.39 55.52 199.5 59.54 12.69 5.23 3.68 901.84 Total (Value in Tk.000) 3564 1254 311 9198 7890 8813 9447 8930 32275 26880 3217 2559 3745 956 119041

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) (Value in Tk.000) Quantity (MT) Total (Value in Tk.000)

81

Acrylic binder Butadyne binder Protein Binder Wax emulsion Penetretor Nitrocellulose binder Poly Eurathane binder Dye liquid Filler Pigments Acetic Acid Matting Agent Film Modifier Pull-up Wax Pullup oils Cross linkers Solvent Formal dehyde Total

0.75 0.8 0.8 0.3 0.17 4.16 0.75 0.1 0.35 1.4 0.05 0.13 0.05 0.02 9.83

37 40 50 81 15 1172 52 100 20 60 2 17 20 0 0 10 0 0 1678

10.33 1.75 14.83 7.97 14.34 13.29 14.70 8.67 4.13 12.54 2.47 3.69 4.08 2.44 4.02 0.355 0.35 0.05 120

3296 495 3867 3081 3958 4712 4778 7312 1222 3083 170 1498 3906 949 1450 900 105 3 44790

11.08 2.55 15.63 8.27 14.51 17.45 15.46 8.77 4.49 13.94 2.52 3.81 4.14 2.44 4.02 .37 .35 .05 129.83

3334 535 3917 3162 3973 5884 4830 7412 1242 3143 172 1515 3926 949 1450 910 105 3 46468

Source: Leather Sector Census Study, LSBPC, 2005

9.2 Chemicals and Accessories: Footwear


Table 9.6: Annual Chemical used for the production of Footwear

82

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 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 0 10 37 10 0 0 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 0 1500 9300 100 0 0 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 2.5 130 0 0 85 3 1009 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 6250 26000 0 25500 6300 402520 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 2.5 130 10 37 95 3 1009 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 6250 26000 1500 9300 25600 6300 402520 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.

83

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.
Table 9.8: Yearly Value of Accessories used for the Production of Footwear (Value in Tk.000) Name of accessories Buckles Belt Button Catel Catel tap Daco Eyelet Others Total
Source: Leather Sector Census Study, LSBPC, 2005

Local 248 1313 7903 11 0 0 0 70356 79831

Foreign 7087 1248 475 201 1799 1640 128 386 12964

Total 7335 2561 8378 212 1799 1640 128 70742 92795

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

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Adhesive Lacker TBT Total

1630 2 4 1636

18 0 0 18

1648 2 4 1654

Table 9.10: Yearly Value of Accessories used in the Leather Goods Manufacturing Units (value in Tk.000) Accessories Bukless Belt Button Others Total Local 63.5 151.5 15 7 237 Foreign 600 24 0 4 628 Total 663.5 175.5 15 11 865

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.

85

#S L.
1. 2. 3.

Supplier

ACI, Bangladesh BASF, Germany Others


Source: Primary survey

Marke t Shar e
50% 30% 20%

Product Name: Lissapol, ACI; Lisapen-PA-WB, BASF 2. Soaking Enzyme: 300MT /Year Price: 150-190Tk Per Kg.

#S L.
1. 2. 3. 4. 5. 6. 7.

Supplier

TFL, Germany BASF, Germany Buckman, Singapore TH Bohme Schill & Seilacher, Germany Scitan, Italy Others
Source: Primary survey

Marke t Shar e
25% 20% 15% 15% 5% 5% 15%

Product Name: (Pellvit C, Pellvit DPH), TFL; (Basozym-S20), BASF; (Busan-40L), Buckman; (Vinkol A), Schill & Seilacher;

86

3.

Liming Auxiliaries: 750-900MT /Year

Price: 65-120Tk Per Kg.

#S L.
1. 2. 3. 4. 5. 6.

Supplier

TFL, Germany BASF, Germany Buckman, Singapore Seicie, Italy Schill & Seilacher, Germany Others
Source: Primary survey

Marke t Shar e
25% 20% 10% 10% 5% 30%

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

#S L.
1. 2.

Supplier

Local China, Thiland

Marke t Shar e
75% 25%

Product Name: (Delimer-AR), Neochemica; 5. Bating Agents: 500-600MT /Year 87 Price: 60-100Tk Per Kg.

#S L.
1. 2. 3. 4. 6. 7.

Supplier

Clariant, UK TFL, Germany Buckman, Singapore BASF, Germany Rock Chem Others
Source: Primary survey

Marke t Shar e
35% 20% 15% 10% 5% 15%

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 Price: 15Tk. Per kg. Price: Price: 10Tk Per Kg.

Chemicals: Sulphuric Acid Formic Acid Salt (NaCl)

#S L.
1. 2.

Supplier

Local Clariant, U.K 88

Marke t Shar e
55% 10%

3. 4. 5. 7.

BASF, Germany Kemira Others


Source: Primary survey

10% 5% 20% Price: 50-150Tk Per Kg.

Tanning Agents: 6000-8000MT /Year

#S L.
1. 2. 3. 4. 5.

Supplier

BASF, Germany Bayer, Germany American Chemical Co. Sulchome, Italy Others
Source: Primary survey

Marke t Shar e
30% 30% 15% 10% 15%

Product Name: (Chromosol-B), Bayer; (Chromitan-B), BASF; (Chromix-B33), American Chemical Co.; 8. Preservatives: 100-120MT /Year Price: 750-850Tk Per Kg.

#S L.
1. 2. 3. 4. 5. Product Name:

Supplier

Buckman, Singapore Bayer, Germany Chemicolor/ Yorkeshire ATC, France Others

Marke t Shar e
40% 30% 10% 5% 15%

89

9.

(Prevental-Z), Bayer; (Busan-30L), Buckman; (Tolcide-2230), Chemicolor/Yorkeshire; Basifying Agents: 500-700MT /Year

Price: 110-120Tk Per Kg.

#S L.
1. 2. 3. 4. 5.

Supplier

BASF, Germany TFL, Germany Clariant, U.K Clowan Others


Source: Primary survey

Marke t Shar e
30% 10% 10% 10% 50%

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%

90

Market Share of Chemical Suppliers (Wet Blue)


BASF, Germany Buckman 5% TFL, 5% American Chemical Co. 8% Figure 10.1: Bayer 20% Others 15% Clariant, UK BASF 25% Bayer, Germany American Chemical Co. TFL, Germany Buckman, Singapore Others

Clariant 22%

10.2 Market Share of Chemical Suppliers (Wet Blue To Crust)


1. Neutralizing Agents: 500MT /Year Price: 90-160Tk Per Kg.

#S L.
1. 2. 3. 4. 5.

Supplier

BASF, Germany TFL, Germany Clariant, UK Buckman, Singapore Others

Marke t Shar e
25% 25% 20% 10% 20%

Product Name: (Butan 7810), Buckman; (Tamol GA, NNOL), BASF; (Sellasol NG), TFL;

91

(BS3), Smith & Zones; (Probal-PRA), Clariant; (PAKS), Bayer; 2. Retanning Agents: 3000-4000MT /Year Price: 115-180Tk Per Kg.

#S L.
1. 2. 3.

Supplier

BASF, Germany Bayer, Germany Others

Marke t Shar e
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.

#S L.
1. 2. 3. 4. 5.

Supplier

Clariant, UK BASF, Germany Guama Stahl, Holland Others

Marke t Shar e
40% 30%

Product Name: (Beige-L), BASF; (Black-PNT), Guama/Chika; (Brown-574), Croda; 92

4.

Dyeings Auxiliaries: 250-350MT /Year

Price: 70-350Tk Per Kg.

#S L.
1. 2. 3. 4. 5.

Supplier

Clariant, UK BASF, Germany TFL, Germany Hodgeson Others


Source: Primary survey

Marke t Shar e
20% 20% 10% 10% 40%

Product Name: (Tamol AW), BASF; (Neosyn-N), Clarient; (Compound DLS), Hodgeson; 5. Fatliquors: 1800-2000MT /Year Price: 70-350Tk Per Kg.

#S L.
1. 2. 3. 4. 5. 6. Product Name:

Supplier

Smith & Zones TFL, Germany BASF, Germany Clariant, UK Zshimmer & Schwarz Others
Source: Primary survey

Marke t Shar e
30% 20% 10% 10% 5% 25%

93

(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
Source: Primary survey

Approximate Market Share (%) 33% 20% 17% 10% 17%

Market Share of Chemical Suppliers (Crust)


Others 20% TFL 10% Bayer 17% Clariant 20%

BASF 33%

BASF Clariant Bayer TFL Others

Figure10.2

94

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,

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. 1 2 3 4 5 6 7 8 9 Name of the Suppliers 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%

95

Chemicals 5% Finice 5% TFL 5%

Market Share of Finishing Chemical Horiyana Suppliers


Buckman 2% Others 10% ALPA 25% Clariant 10% BASF 20%

ALPA BASF Stahl Clariant TFL Finice

Stahl 18%

Horiyana Chemicals Buckman Others

Figure 10.3

Chapter Eleven

Findings and Recommendations


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.

96

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 buyers special purpose. So, if you dont 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. 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

97

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 competitors 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 TFLs 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 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

98

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


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.

99

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.

100

Appendix A-1
Members List of Bangladesh Finished Leather, Leather goods and Footwear Exporters Association (BFLLFEA) Category: Tannery Name of the Firm M/S Al Madina Tannery M/S Amin Tannery Ltd. M/S Anowar Tannery (Pvt) Limited M/S Apex Tannery Ltd. Address 55/2, Hazaribagh, Dhaka 60/1, Hazaribagh, Dhaka 104, Hazaribagh, Dhaka Off: 65-66 Motijheel C / A (2nd Floor) Fact: 127 Hazaribagh, Dhaka 69, Hazaribagh, Dhaka 121/5, Sher-e-Bangla Road, Hazaribagh, Dhaka-1209 143/1 Hazaribagh Dhaka 116/E, Hazaribagh, Dhaka-1209 148/2, Hazaribagh, Dhaka-1209 Alta Plaza (3rd Flor) House # 1 Road # 10, Dhanmondi, Dhaka Tongi, Gazipur, (Dhaka) 21, Hazaribagh, Dhaka 147, Hazaribagh, Dhaka-1209 Hazaribagh Dhaka 180/2 Hazaribagh, Dhaka 8124806 8626485 9800501-5 9800513 8611445 8611468 011855496 8614077 8615977 0171538060 9122452 500197 9110690 Phone 8611579 019343789 8610475 0171561660 9664078 506168 9551203 9560766 9551117 8625635-7 8626728 8118981 8621787 0172126126 866518 8626925
Contact Person and Designation

SL

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

M/S Awal Leather Complex M/S Abul Khair Tannery M/S Ayub Brothers Tannery Ltd. M/S Azmir Leather M/S Aziz Tannery Ltd. M/S Bangladesh Fine Leathers Processing Ltd. M/S Bata Shoe Company Bangladesh Limited M/S Bay Tanneries Ltd. M/S Bengal Leather Complex M/S Bengal Peli Export Company M/S Bikrampur Tannery Ltd.

101

M/S Cresent Tannery Ltd. M/S Dhaka Hides & Skins Ltd. M/S Dhaka Tanneries Ltd. M/S Diamond Tannery Ltd. M/S F. K. Leather Complex Ltd. M/S Green Arrow Tannery M/S Great Eastern Tannery (PVT) Ltd M/S H & H Leather Industries Ltd. M/S H. B. Tannery Ltd. M/S H. R. C. Leather Complex M/S Haroon Leather Ltd. M/S Helal Tannery M/S Helena Enterprise Ltd. No.2 M/S Ibrahim Leathers M/S International Tannery M/S Jamila Tannery Ltd.

143 Hazaribagh, Dhaka 147, Hazaribagh, Dhaka 124, Hazaribagh, Dhaka 73, Hazaribagh, Dhaka 95/3A, Hazaribagh, Dhaka 135, Hazaribagh, Dhaka 42, New Paltan Lane, Azimpur, Dhaka-1205 House # 69, Road # 8/A Dhanmondi R/A, Dhaka 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 78, Hazaribagh, Dhaka-1209 59/60, Gazmohol, Hazaribagh, Dhaka-1209 (?) 123/1 Hazaribagh, Dhaka Hazaribagh, Dhaka

9663659 8611268 9669849 8615179 8613563 0189216979 502411 506921 503650 8614182 8626887 9666128 9113776 9111209 8111526 8111526 9111209 9128991-2 8824979 8821024 8616305 8631097 9660754 0171591647 8625162 504401 508863 508466 9112832 8618556 8626727 8117674 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

112, Hazaribagh, Dhaka M/S Janata Tanning Industries Ltd. 180, Hazaribagh, Dhaka M/S Javed Tannery M/S Kader Leather Complex M/S Kalam Brothers Tannery Ltd. M/S Karim Leathers Ltd. 119, Sher-e-Bangla Road Dhaka 54/F Moneshwar, Hazaribagh, Dhaka 109/2 Hazaribag, Dhaka 180, Hazaribagh, Dhaka

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 Ansar

102

M/S Kid Leather Ind. Ltd. 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

8611286 8611129 8612286 9563453 8610516 8614242 9669397 8626082 8625147 031-613916 031-617605 9551117 9566182-3 504865 8611264 8612917 9665916 8616586 9660674 8626056 0189220471 8623428 9663121 8626485 0171524804

Managing Director

M/S Madina Tannery M/S Manzur Industries Ltd. M/S Millat Tannery M/S Mitali Tannery M/S Mukti Tannery M/S Mukta Tannery M/S Paramount Tanneries M/S Pioneer Tannery Ltd. M/S Pragati Leather Complex M/S R. M. M International Ltd. M/S R/ K. Leather Complex M/S Rana Leather Ind. Ltd. M/S Reliance Tannery Ltd. M/S Riff Leather Ltd.

114, Kobi Nazrul Islam Road Sadharghat, Chittagong Dhaka Chamber Building 65-66, Motijheel C/A Dhaka 116/6, Hazaribagh, Dhaka 71/4 Gojmohol, Hazaribagh, Dhaka 141/2 Hazaribagh, Dhaka 34/C, Hazaribagh, Dhaka-1209 181/2 Sher-e-Bangla Road, Hazaribagh, Dhaka 21, Hazaribagh, Dhaka 55/1 Hazaribagh, Dhaka Suit # 601, Concord Tower 113 Kazi Nazrul Islam Avenue, Dhaka 153/A, Hazaribagh, Dhaka 70, Dilkusha C/A, Dhaka 9, Hazaribagh Dhaka

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

011 867105

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 103

M/S Roushan Tanneries M/S Ruma Leather Ind. Ltd. M/S S & S Tannery M/S SAF Industries Ltd. M/S Samata Leather Complex Ltd. M/S Samina Tannery Pvt. Ltd. M/S Shadhin Tannery M/S Shafiq Leather Corporation Ltd. M/S Shahjalal Leather Complex M/S Superior Leather Industry Ltd. M/S Taj Tannery Ltd. M/S The Earth International Tannery M/S Vulua Tannery Ltd. M/S Yousuf Brothers Tanneries Pvt. Ltd. M/S Yousuf Leather Corporation Ltd.

78, Hazaribagh Dhaka 131, Hazaribagh, Dhaka 86/1, Hazaribagh Dhaka Akij Chember 73, Dilkusha, C/A, Dhaka 120, Sher-e-Bangla Road, Hazaribagh, Dhaka 36/1 Kalunagar, Hazaribagh, Dhaka Hazaribagh, Dhaka 43/1, Sher-e-Bangla Road, Hazaribagh, Dhaka 20, Hazaribagh, Dhaka 19, Sher-e-Bangla Road Hazaribagh, Dhaka 148, Hazaribagh, Dhaka 86/2 Sher-e-Bangla Road, Hazaribagh, Dhaka 109, Hazaribagh, Dhaka 62, Hazaribagh, Dhaka 124/2, Hazaribagh, Dhaka

504696 801624 9664317 8627144 9662523 9552287 9666142 9666151 8611102 8611372 9662731 9660384 8625266 011850698 8616963 8616111 9669385 8619457 502709 8612268 8610285 8618826 506910 8611851 8118981 011859031 8614749 8613083 8625162 8614895

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

104

Appendix A-2
Members List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association (BFLLFEA) Category: Leathergoods SL Name of the Firm M/S Alamin Brenton Leather Goods Limited M/S Asian Leather Complex M/S Bangla Tan Leather Products 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 Address 70, Dilkusha Commercial Area Dhaka 143/1, Hazaribagh, Dhaka-1209 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 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 Phone 9566025-6 9564507 9664322 503502 500905 9880799 8317259 325449 244862 966470-07 0171530159 9664317 8627144 9661157 9354996-4 0171522170 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

9556251 8613132 9565301 9564543 9880799 8825007

Appendix A-3
Members List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association (BFLLFEA) Category: Footwear SL 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 Phone 9804046 0171542895 8828258 8821591
Contact Person and Designation

Mr. Sukumar Chowdhury Managing Director Syed Manzur Elahi Chairman

105

M/S Bata Shoe Company Bangladesh Limited M/S Bay Footwear Ltd. 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

Tongi, Gazipur, (Dhaka) 21, Hazaribagh, Dhaka 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 10, Kazi Nazrul Islam Avenud (2nd Fl) Kawran Bazar, Dhaka 147, Hazaribagh, Dhaka House # 69, Road # 8/A Dhanmondi R/A, Dhaka 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 146, Hazaribagh, Dhaka Baitul Hossain Building (Suite-1204), 27, Dilkusha C/A, Dhaka 290/1 Shonargaon Road Dhaka Meherba Plaza, 33 Topkhana Road, Dhaka 2/1, R/K mission Road, Dhaka

9800501-5 9800513 9663966 9666994 8623428 8615921 9619934 9261145 8612415 500516 861623 8612408 8114053 8110782-3 9669849 8611268 9113776 9111209 0171523223 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. G Stricker Managing Director Mr. Shamsur Rahman Managing Director Mr. Shohel Ahmed (Dilu) Managing Director Mr. Moinul Ahsan Managing Director Mr. Abul Kashem 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

0.

1. M/S Inter Fashion Leathers & Footwear Ind. Ltd. M/S Jenny Shoes Ltd. M/S Lalmai Footwear Ltd. M/S Landmark Footwear Ltd. M/S Leatherex Footwear Industries Ltd. M/S Legacy Footwear Ltd. M/S Lexco Footwear Ltd. M/S Madina Shoe Ind. Ltd.

2.

3.

4.

5.

6.

7.

8.

9. M/S Malim Bangladesh Co. Ltd M/S Phulhar Footwear Ltd. M/S Rever Side Leather & Footwear Ind. Pvt. Ltd.

0.

1.

2.

106

3.

M/S Rumana Shoe Industries Ltd. M/S Savar Industry (Pvt) Ltd. M/S Shampan Shoes Ltd. M/S Surma Leather & Footwear Ind. Ltd. 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. (?)

45/B, Dilu Road, New Eskaton, Dhaka Savar EPZ Area Dhaka Rahman Chamber (5th Floor) 12-13 Motijheel C/A Dhaka 34, Bangabahdu Avenue (3rd Floor) Dhaka-1000 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

8113648 8311252 9563185 9565325 9557913 9558790 8616305 0171378494 9887422 501622 9551725 9883926 502030 9885362 8821153 9563404 9563453 9887074-6 8855794 0189238109

4.

5.

6.

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

7.

8.

9.

0.

1.

2. M/S Nitol Export (?)

3.

Appendix A-4

107

Members List of Leathergoods & Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) Category: Leathergoods SL Name of the Firm 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. M/S Koninoor Leather Products Ltd. M/S Picard Bangladesh Ltd. M/S Sonali Aansh Industries Ltd. M/S Universal Leather Products Address 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 Amanullah Complex 87, Islampur Road, Dhaka Sky Lark Point, Suit no 9J1 24/A, Bijoynagar, Dhaka Lal Bhaban (1st Floor), 18 Rajuk Avenue Dhaka Erectors House (9th Floor) 18, Kamal Ataturk Avenue, Banani C/A, Dhaka-1213 Phone 9883926 0171592979 8117696 0189257031 8916806 0189357570 9872149 0189803083 9559979 0171458649 9566402 9566396 0171523675 9354993-4 0171522170 9556251 9563322 0171536721 9880102-5 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 Name of the Firm M/S Amit Footwear Ltd. M/S Apex Footwear Ltd. Address House # 30, Road # 6, Sector 3 Uttara Model Town, Dhaka-1230 Celebration Point,1st Floor, Plot # 3,5 Road # 113A, Gulshan-2, Dhaka Phone 9804046 8828258 8620300 0171531722 Contact Person and Designation Mr. Sukumer Chowdhury Managing Director Mr. Syed Nasim Manzur Managing Director

108

M/S Bay Footwear Ltd. M/S H. N. Shoes Ltd. M/S Jenny Shoes Ltd. M/S Lalmai Footwear Ltd. M/S Landmark Footwear Ltd. M/S Leatherex Footwear Ind. Ltd. M/S Legacy Footwear Ltd. M/S Madina Shoe Industries Ltd.

21, Hazaribagh, Dhaka-1209 House # 69, Road # 8/A Dhanmondi R/A, Dhaka Jennys House, House # 6, Road # 68/A Gulshan-2, Dhaka-1212 Khan Mansion (5th Floor) 107, Motijheel C/A, Dhaka 64, Bijoy Nagar (3rd Floor) Kakrail, Dhaka-1000 House # 34/A, Road # 10/A Dhanmondi R/A. Dhaka 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

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.

. M/S Surma Leather & Footwear Ind. Ltd. M/S Tropical Shoes Ind. Ltd. Bangladesh Export Ltd.

109

Appendix A-6
Members List of Bangladesh Tanners Association (BTA) Category: Tannery SL 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Tannery/ Organization M/S. Taj Tannery M/S. Chowdhury Leather & Co M/S. Helena Enterprise M/S. R M Leather M/S M B Tannery Ltd M/S Pubali Tannery M/S Abul Khair Tannery M/S. Nur Trading Corporation M/S. Forhed Leather Corporation M/S. Noakshli Tannery M/S. Shadhin Tannery M/S. Mamun Trades M/S. H N Brothers M/S. Eusuf Tannery Ltd M/S. Majdhi Tannery Address 148. Hazaribagh. Dhaka- 1209. 95/7.Gazmahal, Hazaribagh. Dhaka- 1209 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. 99. Hazaribagh. Dhaka- 1209. 107. Hazaribagh. Dhaka- 1209. 101. Hazaribagh. Dhaka- 1209. 91. Hazaribagh. Dhaka. 1209. 41/23/15. Zigatola, New Rd. Hazaribagh. Dhaka- 1209. 135/2. Hazaribagh, Dhaka- 1209. 136/3. Hazaribagh, Dhaka- 1209. Phone 8610285 9660754 8631097 0171526220 9660754 9660754 8614663 9660508 8621787 8631554 9662836 8628867 8614354 9661733 9662836 018- 244985 8626492 Contact Person Md. Mizanur Rahman Md. Harun Chowdhury Md. Mizanur Rahman Md. Monir Hossion Md Mozaffar Rahman Md. Mozibur Rahman Hazi Md. Abul Khair Md. Abdul Awal Md. Abdul Hai Mukbul Ahmed Farque Ahmed Md. Moharaf Hossain Md. Amir Hussain Md. Bashir Ullah Md. Hossain

110

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37.

M/S. Kohinoor Tannery Ltd M/S. Bangla Ten Leather M/S. F K Leather M/S. F F M Leather Complex M/S. Rahman Oversize M/S. Rahman Enterprise M/S. Sonali Haide M/S. Bearied Leather Complex M/S. Shodesh Tannery M/S. Urmi Trade International M/S. Zia Leather Complex M/S. Gulshan Tannery M/S. Great Strean Tannery M/S. Chinaze Tannery Pvt Ltd M/S. Yousuf Leather Corporation M/S. Shatee Leather M/S. Feni Tannery Pvt Ltd M/S. Kasim Tannery M/S. Asia Tannery M/S. Nashet Tannery M/S. Sonali Tannery M/S. Fanche Leather Enterprise

130. Hazaribagh, Dhaka- 1209. 148/3. Hazaribagh, Dhaka- 1209. 95. Gazmohal, Hazaribagh, Dhaka- 1209. 94/1. Hazaribagh, Dhaka- 1209. 44. Sher-e- Bangla Rd. Hazaribagh, Dhaka 1209. 39. Zigztola. Hazaribagh. Dhaka- 1209 44/1, Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. 45/1. Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. 116/D, Hazaribagh, Dhaka- 1209. 136/2, Hazaribagh, Dhaka- 1209. 1310, Auture Dupo, Chittagong. 90, Hazaribagh, Dhaka- 1209. 48, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209. 50, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209. 124/2, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209. 136/5, Hazaribagh Dhaka- 1209. 113, Hazaribagh Dhaka- 1209. 110, Hazaribagh, Dhaka- 1209. 137, Hazaribagh, Dhaka- 1209. 138, Hazaribagh, Dhaka- 1209. 111/A, Hazaribagh, Dhaka- 1209. 95, Gozmohal, Hazaribagh Dhaka- 1209.

9669001 9125651 8624082 9660509 8614663

Md. Humiyan Kabir Md. Masum Md. Katub Uddion Md. Sha Alam Md. Fazrul Rahman Md. Azizur Rahman

9660508 8610543 502264 8620535 31- 682645

Md. Mahabubur Rahman Md. Akbar Hossain Md. Shohied Ullah Md. Abul Kaham Md. Abu Musa Md. Salim Ahmed

8626492 8129864 8612109 8628529

Al hazi Kazi Abdul Kadir Hazi Md. Bashir Md. Abul Kalam Md. Golam Rabbani Md. Abul kasam

Md. Salim Md. Babul Mia 9662840 Md. Shamsul Huda

111

38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63.

M/S. Razibe Leather Complex M/S. Son Light Tannery M/S. Karsaj Tannery M/S. Chanpur Tannery M/S. Oversige Tannery M/S. Capital Tannery M/S. Naru Bhai Tannery M/S. Comilla Tannery M/S. Royel Tannery M/S. Juliet Enterprise M/S. Lieen Enterprise M/S. Ibrasim Tannery M/S. Shatter Tannery M/S. Mother Tannery M/S. Manik& Sohaj Brotgers Tannery M/S. Anjuman Trading Corporation M/S. Morshed Brothers Tannery M/S. International Tannery M/S. Mizan & Suman Tannery M/S. Mamtaj Tannery M/S. Jindhabad Tannery M/S. Muzaheed Tannery M/S. Salam Tannery M/S, Bhi Bhi Tannery M/S. Jalal Tannery M/S. Metto Tannery

95/4, Gozmohal, Hazaribagh Dhaka- 1209. 122, Hazaribagh, Dhaka- 1209. 92, Gozmohal, Hazaribagh Dhaka- 1209. 93, Hazaribagh, Dhaka- 1209. 139, Hazaribagh, Dhaka- 1209. 94, Hazaribagh, Dhaka- 1209. 97, Hazaribagh, Dhaka- 1209. 98, Hazaribagh, Dhaka- 1209. 100, Hazaribagh, Dhaka- 1209. 81, Hazaribagh, Dhaka- 1209. 100, Hazaribagh, Dhaka- 1209. 105, Hazaribagh, Dhaka- 1209. 105, Hazaribagh, Dhaka- 1209. 104, Hazaribagh, Dhaka- 1209. 79/A, Hazaribagh, Dhaka- 1209. 79, Hazaribagh, Dhaka- 1209. 83/A, Hazaribagh, Dhaka- 1209. 83, Hazaribagh, Dhaka- 1209. 89/1, Hazaribagh, Dhaka- 1209. 84, Hazaribagh, Dhaka- 1209. 84, Hazaribagh, Dhaka- 1209. 80, Hazaribagh, Dhaka- 1209. 75, Hazaribagh, Dhaka- 1209. 64, Hazaribagh, Dhaka- 1209. 117, Hazaribagh, Dhaka- 1209. 67/2, Hazaribagh, Dhaka- 1209.

9662840

Md. Shamsul Huda Hossain Ahmed

8625078

Md. Hanif Md. Sarij Miha Nasir Ullah Master Sayead Ullah Abu Kausar Jahangir Md. Nur Nabi

9228857 8614354 8616975

Md. Momin Ullah Md. Shaidul Hoque Master Sha Emrean Photoeary Md. Israfil Ahdur Shatter S M Awlad Hossain

8628867

Mukbul Ahmed Md. Hanif

9662533

Md. Nur Nabi Md. Fazlu Miha

8611204

Md. Hossain Md. Jalal Uddion Md. Momin Ullah Balal Hossain Md. Abdus Salam Md. Shakanter

8118204

Sala uddion Jamal Ahmed

112

64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86.

M/S. Golden Leather Industries M/S. Islamia Tannery M/S. Shahi Tannery M/S. Sodor Tannery M/S. Hazi Mazharul Hoq Ltd M/S. Sumon Tanney M/S. Lakhi Tannery M/S. A B S Tannery M/S. East Asia Tannery Ltd M/S. Phoenix Leather Complex M/S. Arafat Leather Complex M/S. Marson Tannery M/S. Ashan Habibe & Brother M/S. Mamun Tannery M/S. Iland Tannery M/S. Udion Corporation M/S. Reshni Complex M/S. Latif Leather Complex M/S. J R Leather Export M/S. Hossain Brothers Tannery M/S. Kalu Leather Corporation M/S. Aziz Tannery M/S. Globe Tannery Ltd.

65/2, Hazaribagh, Dhaka- 1209. 65, Hazaribagh, Dhaka- 1209. 68, Hazaribagh, Dhaka- 1209. 60, Hazaribagh, Dhaka- 1209. 79/1, Water Workers Rd Posta, Dhaka- 1209. 57/2, Hazaribagh, Dhaka- 1209. 68, Hazaribagh, Dhaka-1209. 42, Hazaribagh, Dhaka- 1209. 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. 122/A, Hazaribagh, Dhaka- 1209. 124/1, Hazaribagh, Dhaka- 1209. 100/2, Hazaribagh, Dhaka- 1209. 83/1, Hazaribagh Dhaka 1209. 42/10. Sonatongho , Hazaribagh Dhaka- 1209. 68/1, Hazaribagh, Dhaka- 1209 43, Sher- E Bangla Road Hazaribagh, Dhaka- 1209 148/2, Hazaribagh, Dhaka- 1209 118, Sher-e- Bangla Road Hazaribagh, Dhaka- 1209 113 9118857 8612098 8625268 8625268 017- 524925 8625230

Md. Amir Hossain M SB Sala Ahmed Md. Samsul Islam Md. Torea Ullah Md. Gopran Hazi Md. Shajahan Md. Shajahan Md. Abu Bakker Siddque Md. Bajlur Rahman Md. Bajlur Rahman Hafaz Md. Mozzamal Hoq Md. Estak Ahmed Md. Akterurzzaman 9661733 Md. Mosaraf Hossain Md. Tajul Islam Md. Amanat Hossain Md. Humayan Kabir Md. Hamidul Islam Jamala Khatun 8613770, 0175 042959 9667075 Hossain Ahmed Bhuiyan Mahabub Alam Samsur Rahman M A Bari

87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99.

M/S. S & S Tannery M/S. J A Leather M/S. Johir Trading Industries M/S. H S Tannery M/S. Chowdhury & Co. M/S. Jakir Hossain Tannery M.S. Zoobli Tannery M/S. Leather Complex Pvt. Ltd. M/S. T Ahmed Tannery M/S. Nabipur Tannery M/S. Nobarun Tannery M/S. City Leather Tannery M/S. New Kajol Tannery

Hazaribagh, Dhaka-1209 61, Hazaribagh, Dhaka-1209 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 11, Kalu Nagar, Hazaribagh, Dhaka-1209 87, Hazaribagh, Dhaka-1209 141/A, Hazaribagh, Dhaka-1209 56, Hazaribagh, Dhaka-1209 30, Monesshore Road, Hazaribagh, Dhaka-1209 30/A Monesshore Road, Hazaribagh, Dhaka-1209 30, Monesshore Road, Hazaribagh, Dhaka-1209 58, Hazaribagh, Dhaka-1209 105/1, Hazaribagh, Dhaka-1209 49, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 120/2, Hazaribagh, Dhaka 1209 59/1, Hazaribagh, Dhaka-1209 139, Hazaribagh, Dhaka-1209 121/3, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 135/B, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 98, Hazaribagh, Dhaka-1209

Md. Abdur Rahim Md. Abdul Ajij Md. Johir Hafez Ahmad Md. Hasan Chowdhury Md. Shekantor Hossain Nurul Haque Md. Ibrahim Ali Ahmed Md. Abdul Wahab Md. Iqbal Hossain Hazi Md. Ali Sala Uddin Ahmed Hazi Somsher Ali Zohir Ahmad Md. Abul Kashem Md. Aminul Islam Babul Md. Abul Kalam Abdul Odud Mia Md. Sala Uddin Chowdhury Md. Ruhul Amin Md. Abul Bashar Abul Hossain

100. M/S. Muslim Tannery 101. M/S. Milon Tannery 102. M/S. Moon Tannery 103. M/S T-Para Tannery 104. M/S. Kalam & Brothers Tannery 105. M/S. Mohin Tannery 106. Ms. United Tannery Ltd. 107. M/S. M S Tannery 108. M/S. Abul Bashar Tannery 109. M/S. Dhaka Nagar Tannery

114

110. M/S. Jasim Tannery 111. M/S. M I Tannery 112. M/S. Komla Tannery 113. M/S. Gokul Tannery 114. M/S. Bengal Peli Export Co. 115. MS. Poiran Tannery 116. M/S. Alea Tannery 117. MS. Iqbal Brothers Tannery 118. MS. Mukta Tannery 119. Prominent Tannery Ltd. 120. M/S. Sayful Leather 121. M/S. Miraz Leather Complex 122. The Noakhali Tannery 123. M/S. Ismail Leather Corporation

30/3, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 122, Hazaribagh, Dhaka-1209 125/1, Hazaribagh, Dhaka-1209 121, Hazaribagh, Dhaka-1209 94/1, Hazaribagh, Dhaka-1209 117/1, Hazaribagh, Dhaka-1209 106, Hazaribagh, Dhaka-1209 135/C-2, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 24/C, Kalunagar, Hazaribagh, Dhaka-1209 25, Prominent Avenue, 3, PC Culture, Mohammadpur, Dhaka-1207 121/2, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 13/1, Hazaribagh, Dhaka-1209 Dotter Hat, Miazdi Court, Noakhali

Sala Uddin Hazi Ismail Hossain Hazi Nurul Islam Md. Mozammel Hossain Md. Anwar Hossain Alhaj Md. Shofi Ullah Md. Nurul Huda Md. Sasuddin Munshi Sayed Md. Shahidullah Major Monjur Kader (Retd) M.P Hazi Md. Sofi Md. Monir Hossain Md. Moazzem Hossain Md. Ismail Md. Zahangir Hossain Hafez Muzahidul Haque Hasan Showrozit Md. Mozaffar Hossain Hazi Monir Uddin Ahmad Md. Salim Md. Shahjahan Bhuiyan Hazi Md. Abul Bashar Hossain Ahmed Bhuiyan Md. Shirah-ud-doullah

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 126. M/S. Dincum Shoes Ltd. 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 132. M/S. Atique Leather Complex 133. M/S. Greenwage Tannery House# 14, No.1 PC Culture Road, Mohammadpur, Dhaka-1207 111, Hazaribagh, Dhaka-1209 66, Hazaribagh, Dhaka-1209 115, Hazaribagh, Dhaka-1209 71/4, Gozomohol, Hazaribagh, Dhaka1209 71/4/C, Gozomohol, Hazaribagh, Dhaka1209 54/2, Hazaribagh, Dhaka-1209 133/3, Hazaribagh, Dhaka-1209 115

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

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 44/C, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209 44/B, Sher-e- Bangla Rd Hazaribagh, Dhaka 1209

Bahar Md. Mozibur Rahman 44/1, Md. Zamadul Haque Md. Abul Hashem Md. Mostoffa Mia 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 Md. Mizanur Rahman(Mesbah) Chairman (BCIMA) Md. Mohsin Bhuiyan Md. Khasrul Alam Md Mokhlesur Rahman Md. Morshed Haider Md. Bulbul Aiub Md. Tofail Ahmed Md. Habibur Rahman Hazi Rabiullah

Name of the Firm AIM Associate/ Imaco Latex Tradelink M/s Tanvir & Co Haider Traders B.N.C T.A Trading Rupsi Traders Taj Chemical

Address 124 Dhaka Tannery Market, Hazaribagh 20, Sher-e-Bangla road, Hazaribagh 130 KohinoorTannery market, Hazaribagh 28, Sonatongar, Zikatola, Dhaka 28, Sonatongar, Zikatola, Dhaka 3/6, Sonatongar, Zikatola, Dhaka 130 KohinoorTannery market, Hazaribagh 124 Dhaka Tannery Market, Hazaribagh 124 Dhaka Tannery Market, Hazaribagh

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10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.

Md. Altaf Hossain 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 Abu Musa Md. Mijanur Rahman Md. Amanullah Md. KhodaBoks Sirajul Islam Abul Khayer Bhuiyan Md Aiub Ali Md. Alauddin Hawladar Md. Habibur Rahman Babul Md. Sayedul Islam Azmal Hossain Bhoje Md. Zahangir Hossain Md. Ainul Haque Rafiqul Islam Badal Md. Faruq Hossain Iliasur Rahman Badal Samsul Alam Md. Aworangojeb Shamim Iqbal Shahnewaj Khan Md. Sadequr Rahman Md. Selim Reja Jafar Ahmed Abul Kalam Azad Abdur Rouf Mollah Abdur Razzak Bishwas Hazi Bulbul Ahmed

A.H Enterprise Chemitan Limited Romo Enterprise Gonipur Agency Fair International Labony Traders Chemirex International Mahai Trading

99 Hazaribagh Dhaka 124 Dhaka Tannery Market, Hazaribagh 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 27 kalurghat Chittagong 130 Agrabad Chittagong 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 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 Borobazar Ananda Mahol, Mymensing 10 Station Road, Mymensing Babubazar, Jessore Myzdi Court, Noakhali 26, Bangshal Road, Dhaka 31 Nyabazar Market, Dhaka 35 Urdu Road Dhaka 35 Urdu Road Dhaka

M/s Ilias & Brothers

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46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74.

Md. Lutfur Rahman Md. Delwar Kader Md. Shakawat Hossain Amar Saha Abdus Sattar Monjurul Haque Niru Md. Dulal Md. Fazlul Mukit Md. Zakir Hossain Md. Shafiqul Islam 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 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 Md. Siddikur Rahman Khaza Ahmed

14/15 Ispahani Building, Motijheel, Dhaka 6 Motijheel, Dhaka Trade Exchange M.A Corporation Progressive Leather & Footwear Co. 20, Sher-e-Bangla road, Zikatola 130 KohinoorTannery market, Hazaribagh 9, Dewan monjil, Sonatongar, Dhaka 20, Sher-e-Bangla road, Hazaribagh

R.M International Organo MultiTrade Intl A.T.L Exim Trade Intl M/s Link Intl B.S Trading Co. Bangladesh Leather Syndicates

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 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 15/F Zikatola 20 Sahjahan Tannery Block, Hazaribagh

SF Trading All Leather Trade M/s Lipi Leather Romisa Intl Milon Enterprise Imon Trading Corp. Buckman Laboratories Asia Trading Corp.

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