Sanitary ware, bath fittings business keeps shining

The market for sanitary ware and bathroom accessories is growing at a fast pace in the wake of rapid urbanisation and lifestyle changes brought about by an improved economic capacity.

With an average 15 per cent annual growth, the overall market size of sanitary accessories now stands at around Tk 600-700 crore per annum, according to the sector people.

Local manufacturers are also learnt to be able to meet nearly 80 per cent of domestic demand in this growing accessories market.

According to industry insiders, in Bangladesh, there are 50-60 key companies producing different types of sanitary accessories by plastic, brass and ceramic such as bib cock water tap, shower, water closet commode and squat toilet, wash basin, bend towel rod and towel ring, soap case, tissue holder, glass basin shelf and bubble grating net.

The major players in the market are Akij, RFL, Stella of Abul Khair Group, Sattar, Sharif, RAK, Nazma, Sajib, Fantasy and Habib Metal etc.

While talking to The Business Post, Proprietor of Habib Metal Habibur Rahman said, “We produce five to seven kinds of bathroom fittings, including water tap, shower, tissue holder and soap case by brass.” “Once our business was very good, but now we are passing a challenging time due to giant companies and also the import of foreign products,” he added.

The manufacturer also said, “Besides, the raw material price hike during Covid-19 has created other challenges for us.” The price of a kg of brass increased by Tk 160 from Tk 330 to Tk 490 in a year, which also had a negative impact on the production of local products, said Habibur.

He also said, “As we do not have skilled manpower to produce innovative products, it is very tough to sustain in the competitive market.”

Proprietor of Rasel Sanitary at Siddique Bazar in the city Md Kamrul Hassan said the demand for sanitary accessories went up fast in recent years due to the increased development projects, including building constructions.

“Currently, our business is going through a tough time due to Covid-19 and huge competition. Once, huge customers from different districts used to come to Siddique bazar to purchase sanitary accessories, but now the owners of the companies appoint dealers in districts, creating a fresh challenge for us,” said Kamrul.

Apart from that, the trader also said the imposition of additional VAT had dealt another blow to them.

“Earlier, we used to pay an annual package VAT of Tk 14,000 each year, but now we have to pay Tk 3,500 per month,” the trader added.

Kamrul said, “I am selling a piece of water tap at Tk 250-800, soap case at Tk 20-100, towel ring at Tk 200-800, tissue holder at Tk 100-250, SS bubble grating net at Tk 25-60.” There are now several brands and more than 50 non-brand companies in the country.

At first in 1976, Bangladesh Insulator and Sanitary Ware Factory Limited of Bangladesh Chemical Industries Corporation (BCIC) under the Ministry of Industries was established to produce tiles and sanitary ware in the country.

Production in this sector increased by 60.32 per cent in the fiscal year 2020-21 compared to the previous fiscal year.

“The production of sanitary ware products increased to 994 tonnes in FY21, which was 620 tonnes in FY20. We produce all the products in a manual system, and they are strong and sustainable,” said BCIC Manager Md Akhtaruzzaman.

Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) data shows some 18 ceramic sanitary ware companies are in operation in Bangladesh, and they are meeting 65.92 per cent of the domestic demand while the remaining 34.08 per cent is met via imports.

According to official available data, there was an investment worth Tk 1,548.70 crore in FY20 while production capacity was 147.5 lakh pieces in this sector. Around 7,802 people are engaged directly in this sector.

BCMEA data also show Bangladesh imported finished goods of ceramic sanitary ware worth Tk 444.97 crore in FY20 while it exported products worth Tk 5.39 crore in the same period.

Manager of Mitaly Sanitary in Hatirpool area Mir Shahadat Hossain said they sell products of different foreign brands like Toto, Classical, Grohe, Cotto, Jaquar and Artize.

“As many customers look for foreign products, we sell bathroom items of different brands. Basically, we import the products from China though Chinese products are produced in India, Korea, Thailand and Sri Lanka,” he added.

Shahadat also added they need three to four weeks to bring the products by sea from China to Bangladesh.

“Our carrying cost has doubled from Tk 2 lakh to Tk 4 lakh for the last several months. Besides, many products get broken in our ports during inspections by the port authorities. This impacts our business,” he said.

He also said he sells a commode at Tk 20,000, which was sold at Tk 18,000-19,000 three months ago. A piece of normal basin is sold at Tk 4,000-7,000 and a box basin at Tk 18,000-1,50,000.

General Secretary of Bangladesh Pipe and Tube Well Merchants’ Association Parvez Alam Chunnu said, “Our organisation is the key association of the country in sanitary, pipe and tube well business. There are around 1,000 businesses at Siddique Bazar and Hazi Osman Goni Road. Also, there are around 800-900 small factories in the country where different parts of sanitary accessories are produced.”

“More than 50,000 workers, from manufacturing to retailing, are now engaged in the sanitary accessories segment in the country. The items are produced by plastic, ceramic and copper. 80 per cent of country demand is met by local companies,” he also said.

The market size of sanitary accessories will be around Tk 600-700 crore with an annual growth of over 10-15 per cent, added Parvez.

On the other hand, Shine Sanitary Ware and Fittings of PRAN-RFL Group, Jopex, Matador, Jharna Sanitary and Lira are also producing plastic-made sanitary accessories.

Kamruzzaman Kamal, a spokesperson for PRAN-RFL Group, said, “We are producing RFL bathroom fittings by metal and ABC bathroom fittings named Shine Sanitary Ware and Fittings by plastic components.”

“We export our Shine Sanitary Ware and Fittings products to 20 countries, including India, Sri Lanka, Bhutan and Nepal. We are planning to export our metal items as well.”

However, we are trying to produce further innovative products as per customers’ future demand, he also said.

Marketing Director of PRAN-RFL Group also noted that they introduced water tap in the market in 2013 after establishing a factory in Rangpur. Annually, around 800 tonnes of products are now produced in the factory with an annual growth of 10 per cent. RFL bathroom fittings are sold at Tk 150-4,050.

Apart from that, Shine products were introduced in the market in 2011 by establishing a factory in Habiganj. Around 5,400 tonnes of products are manufactured in the factory each year with a 23 per cent growth rate. The products are sold at Tk 37 to Tk 21,505, Kamruzzaman further added.