Traditionally furniture industry in Bangladesh developed as cottage based industry. It is in 90s when the furniture industry in Bangladesh has transited from cottage based industry to mechanized mass production oriented industries. Following that the furniture businesses began to grow accommodating modern machineries innovative designs and use of diverse materials. Furniture industry of Bangladesh is shifting its focuses from dependency on tea! for raw materials to processed wood . The main varieties of products are wood processed wood " #edium $ensity Fibre board %#$F& laminated board particleboard rattan'bamboo and wrought iron furniture. For a more personal domain as ones home the preferred raw materials still remains solid wood but combination of solid wood with other materials li!e cane rattan laminated boards plywood and #$F are becoming very popular. But for offices furniture designs are usually focused on the more contemporary style and the preferred use of materials include plastic #$F laminated boards and wrought irons . (round )0* production of furniture sector of Bangladesh is home furniture and +0* is office furniture . ,ne of the !ey strengths of the local furniture industry is diversity in product portfolio . (ccording to -.I/ %-entre for Industrial .tudies& Bangladesh has a strong potential in lin!ing home d0cor craft items with the furniture industry. The e1port of furniture products from Bangladesh started from 2993. It is estimated that by 4023 Bangladesh has e1port potential of crafts furniture accessories worth of 5.$ 20 million along with furniture worth 5.$ 60 million. The potential can be materialized through e1ploiting low labour cost which is a vital factor in becoming competitive in the world mar!et. In wood furniture manufacturing labour accounts for up to 60* of the total costs. In Bangladesh labour costs account for 40* of the production. 7ere the hourly wage rate in furniture is between 8 0.09: 0.60 less than in -hina %80.30: 0.)3& which is the largest furniture e1porting country . (t present two relevant associations i.e. Bangladesh Furniture ;1port (ssociation and Bangladesh Furniture Industries ,wners (ssociation %BFI,(& are actively wor!ing on materializing the potential of this sector. Bangladesh Furniture ;1port (ssociation has 29 members. <rofiles of Furniture Industry =overnment of Bangladesh has declared the furniture industry as a >Thrust .ector >. The sectors contribution to =$< %gross domestic product& is 0.49 percent on average while the industry is comprised of around 62390 enterprises and employs nearly two la!h s!illed and semi:s!illed people . (ccording the officials of Bangladesh Furniture Industries ,wners (ssociation %BFI,(&There are 4?000 furniture factories in Bangladesh %including all .#;s& among them 2934 companies are registered member of furniture owners association. 7owever according to the baseline survey of furniture industry in Bangladesh by $r. (li @esar Ahan %4022& there are a total of 992+ wooden and 494? non wooden furniture manufacturers in Bangladesh employing around 229?20 wor!ers. (lso there are around )6949 carpentry households employing another 2364?3 wor!ers. (dding to this there are 240000 craftsmen producing soft furniture and 400000 suppliers supplying raw and semi: processed materials. ,ut of this huge employment almost 200000 wor!ers are women . (mong the employees wor!ing in furniture sectors 40* are wor!ing in large industries and ?0* are wor!ing in .#;s . There are a number of furniture clusters in $ha!a which are located at Badda .utrapur #irpur area of $ha!a. ( number of large companies have their factory in .avar and =azipur area. @umber of large companies is few compare to the total number of furniture industry in Bangladesh. There are 23 large Furniture companies are doing their business in the country which includes ,tobi @avana 7atil (!htar <arte1 Brothers etc . Table 2B (verage sales and profit among different classes of furniture manufacturer In both local and international mar!et the growth of Bangladesh furniture mar!et is evident. The booming real estate sector in Bangladesh and the rising demand of furniture product in world mar!et lead the e1pansion of furniture sectors in Bangladesh. In fact the demand is so elevated that the demand supply gap is evident in Bangladesh. Chile the industry is growing at a rate of 9.33* the demand for furniture is increasing by 40*. /ocal production for furniture of 5.$ 93? million along with 5.$ 29.?6 million imports. Bangladesh earned 829.49 million from e1ports of wooden furniture in fiscal 4009:20 . /ocal manufacturers e1port to the 5. -anada (ustralia 5A #iddle ;ast =ulf countries and other (sian countries li!e India Dapan Taiwan .ingapore Thailand and Eietnam . Firm size Numbers of Enterprise Average Annual Sales (BDT) Gross Profit (%) Net Profit (%) i!ro "#$%& &#'""#()) *&+% $+'" Small &#%"% ,#&&'#--- *,+"( &*+(& S * *"% '#,"&#(*$ *$+%" &(+%" S & () &$#-,)#))) -*+&) &,+& .arge -, &)(#&))#))) -,+') &,+' (n analysis of ;<B data since FF4009:400) indicating 3+.33* decrease in the e1port of soft furniture over a period of last four years and this decrease is due to the lac! of design and technology research lac! of initiatives to promote this industry and !eep abreast with other parts of the world . @onetheless according to Bangladesh Furniture Industries ,wners (ssociation %BFI,(& real e1port is much higher than %40* higher& than the official figure. (bout 90* of raw materials of furniture sector are imported from different countries. (round 93* of wood comes through import. #ost of the tic gamar and hard wood come from (fricaG o!e wood and barmatic wood come from #yanmar. (round 200* of Cood coating and loc! 90* of ply board 40* of particle board 30* of adhesive is imported . Table 4B Trend of e1port and import in furniture sector %soft furniture& of Bangladesh %5nitB 5.8 million& F/ *))%0*))" *))"0*))' *))'0*))$ *))$0*)&) 1mport E2port '+&% ,+($ (+(( -+"$ Source: ;1port data has been compiled fromhttpB''bfide1po.com'furnitureHassociation.php %accessed on 23 #ay 4024& (ccording to Bangladesh Furniture Industries ,wners (ssociation %BFI,(& one of the difficulties that the association %and government& currently faces is that ma1imum companies do not declare their real amount of sellG and that is why the figure of real trade volume is not available to the association or government for effective policy formulation. In addition to such problem industries of this sector are also facing shortage of land. In the past Furniture industry association demanded to have enough land so that an industrial cluster can be established where at least fifty companies can be accommodated. Though specific land was allocated in Aachpur area of @arayangonI district the amount of land was Juiet few %around 40 acre& compare to the (ssociations original demand. In the end land was not given to furniture association. 7owever a new location has been identified near Faridpur area where amount of land is much higher than land area of Aachpur area. Furniture associations of Bangladesh participated in several fairs in Dapan. Kecent fair in Dapan too! place 400?G but the outcome of that fair is not as e1pected. ,ne of the main reasons is the wea!ness of design of furniture products manufactured in Bangladesh. Therefore this area needs much consideration for positive intervention. (t the same time more mar!eting development in outside Bangladesh is necessary . (t present there are no rules and regulation addressing standard of products from furniture sector is available. 7ence for effective e1port promotion of furniture product it is necessary to maintain certain standard. In this regard Aatalyst a foreign donor agency is wor!ing on the development of furniture sector of Bangladesh. #oreover the agency is also giving support to the sector in terms of mar!et e1ploration and development. But their assistance is very short term and has no direct connection with the association . Furniture industry is facing face shortage of wood supply from domestic forest. This is one of the great threats to the industry. To confront the constraint initiatives have been ta!en both from government and from some private companies. In addition to that Furniture (ssociations regularly organize programs to encourage people for tree plantation. The association also demanded to the government to lease certain amount land for tree plantation. (nother severe problem which the industry is facing is shortage of electric supply which forced factories to maintain generator. (s the cost of fuel of generator is getting higher the production cost is going up . There is no ta1 incentive for e1port of furniture product at the moment. 7owever the industry is discussing with ;<B so that ta1 incentive can be applied to the sector. 5nder the circumstances ;<B has given certain e1port target to this sector which the association e1pects to achieve by this year. (!htar Furniture (cadamy is the first and only private institute that provides education e1clusively on furniture. The institute commenced on Danuary 4024 and at present the institute has facility to train student on furniture manufacturing mar!eting general education %li!e ;nglish course& and technical courses %li!e driving electrical instrument repairing electronics computer education etc&. The institute has planned to e1pand its branches in coming years %Targeted number of branches by year isB 9 branches within 402+ 96 branches within 4029 and finally +96 within 4040&. Though the institute at present concentrates on short length courses %three to si1 months& it has planned to start four diploma courses also. The institute has applied for approval from Bangladesh Technical ;ducation Board and hope to have the approval within Dune 4024. The authority of the institute has a plan to convert the institute into a well functioning polytechnic institute in near future . Major Furniture Industry Otobi Limited ,tobi is one of the pioneers in furniture industry in Bangladesh. (t present ,tobi has the widest distribution networ! all over the Bangladesh including over 600 retail outlets e1clusive dealers and franchises. ,tobi has now franchise in Aol!ata with distribution centers in sic cities in India. Cith an opening capital of Iust T! 3000 @itun Aundu a graduate of fine arts starts the business $ha!a in 29)3. (t present It has +00000 sJ ft factory in #irpur $ha!a. ,tobi is the first Bangladeshi company to become global. ,tobi builds its flagship 64000 sJ ft retail store in =ulshan $ha!a . (t present ,tobi furniture can be considered as mar!et leader due to their immense mar!et share of the branded mar!et %?0*&. $uring last three years ,tobi is having double digit growth in terms of annual sales . ,tobis products range office household and hospital furniture to specialized furniture li!e !itchen cabinets built:in cabinets and wor!stations. ,tobi employs over 3000 people in its corporate office and manufacturing plants. PARTEX Furniture Industries Ltd Basi! information of 3tobi .imite4 Establis5e4 &$", Pro4u!t profile 6oo4en# elamine .aminate4 75ip Boar4# DF# 7ane an4 etal furniture+ Annual pro4u!tion volume BDT %#%))#)))#))) 7ountries e2porte4 to 1n4ia Potential e2port 4estination Afri!a# 7ana4a# i44le East# 89# 8SA+ Sour!e: Boo;let of Bangla4es5 Furniture St 1nterior De!or E2position *)&*< available at5ttp:==>>>+bangla4es5!onsulatela+!om=4o!s=Boo;let?bfi4e2po0 *)&*+p4f <(KT;L Furniture Industries /td. is a concern of <arte1 .tar =roup of Bangladesh. <(KT;L Furniture manufactures solid timber and timber:substitutes products. The industry offers a combination of timber special particleboard and decorative plywood. Cithin a short span of time the company has been able to claim a sizable portion of the mar!et. (t present the production area of the company is about 294000 sft and the company is building a new factory of area +30000 sft. (round 2400 s!illed manpower are currently employed in this company. The company has strong bac!ward integration for their furniture production as their sister concerns produce <article Board #F- board Filled ' Flush $oor <lywood Eeneered Board <E- .heet " $oor etc . !A"A!A Furniture Limited Basi! information of PA@TEA Furniture 1n4ustries .t4+ Establis5e4 &$$& Pro4u!t profile 6oo4en furniture# .aminates Boar4 furniture# 8p5olsterB (Tubular etal) furniture# Steels an4 etal furniture+ Annual pro4u!tion volume BDT &#,))#)))#))) 7ountries e2porte4 to 1n4ia Potential e2port 4estination i44le East# 89# 8SA+ Sour!e: Boo;let of Bangla4es5 Furniture St 1nterior De!or E2position *)&*< available at5ttp:==>>>+bangla4es5!onsulatela+!om=4o!s=Boo;let?bfi4e2po0 *)&*+p4f @(E(@( Furniture /imited a sister concern of @avana =roup was founded in 4004. @(E(@( Furniture has its factory in .avar operating in more than 24000 sJ.m area. It sells ,ffice solutions 7ome solutions #edical and /ab solutions Industrial solutions and Interior $esigning Furniture.. The company has around ?0 outlets across Bangladesh and also e1panding business internationally. (t present around thousand of people are employed in corporate office and manufacturing plants of @avana furniture in Bangladesh A#$tar Furnis$ers Ltd %AFL& (!htar Furnishers /td %(F/& commenced its business in 29)9. (t present around ?00 people are directly wor!ing under the shade of (!htar Furnishers /td. The company have thier own seasoning capacity of 4000 cft. solid wood a month. Basi! information of NACANA Furniture .imite4 Establis5e4 *))& Pro4u!t profile Dome furniture# offi!e furniture# proEe!t furniture# 4oors# >ar4robes# sa>n timber Annual pro4u!tion volume BDT &#*))#)))#))) 7ountries e2porte4 to 1n4ia Potential e2port 4estination European !ountries an4 i44le East Sour!e: Boo;let of Bangla4es5 Furniture St 1nterior De!or E2position *)&*< available at5ttp:==>>>+bangla4es5!onsulatela+!om=4o!s=Boo;let?bfi4e2po0 *)&*+p4f Basi! information of A;5tar Furnis5ers .t4+ Establis5e4 &$"% Pro4u!t profile 6oo4en# elamine .aminate4 75ip Boar4 an4 DF Annual pro4u!tion volume BDT &*)#))#))#))) 7ountries e2porte4 to Australia# 89# 8SA Potential e2port 4estination 8SA# 89# 8AE Sour!e: Boo;let of Bangla4es5 Furniture St 1nterior De!or E2position *)&*< available at5ttp:==>>>+bangla4es5!onsulatela+!om=4o!s=Boo;let?bfi4e2po0 *)&*+p4f