Home ›› 31 Jan 2022 ›› Front
Local manufacturers are now dominating Bangladesh’s gas stove market, taking up more than 80 per cent of the sales thanks to better innovation, affordability and government policy support.
There were hardly any local gas stove manufacturers till 2017, but around 15 manufacturers are currently operating in the country, industry insiders told The Business Post.
Some of the top local manufacturers are Pran-RFL – the current market leader, Walton, Kiam, Sharif Home Appliance, Nova Electronics and Home Appliance, Gazi, Navana and Hamko. Local products not only meet global standards, they are also more affordable than the imports.
Besides, last year, the government had exempted the household appliance industry from Value Added Tax or VAT to ease dependency on foreign goods, which has helped the sector flourish, industry insiders say. “The local gas stove market is now worth around Tk 10,000 crore. This figure has almost doubled compared to 2015,”
Pran-RFL’s Director (marketing) Kamaruzzaman Kamal said.
Providing more details, another Pran-RFL official added, “We sell gas stoves both at home and abroad. We have about 40 types of the product under four categories with prices ranging from Tk 900 to Tk 13,000.”
More than one lakh people are involved in the sector directly and indirectly, Bangladesh Crockeries Merchants Association’s President Md Monir Hossain pointed out.
Speaking about Bangladesh’s declining dependency on imported gas stoves, Miyako Appliance Ltd Bangladesh’s managing Director Dr Mohammad Naveed Ahmed said, “Our imported gas stove products used to dominate the local market from 2005 to 2017.
“During that period, we used to sell more than 25,000 units per month, but now we sell less than 2,000.”
Walton – an industry leading manufacturer of the product – sold five lakh gas stoves last year, a significant jump from 3.25 lakh in 2020.
“Walton witnessed around 35 per cent growth in the sector, and exported stoves to Kenya and Sri Lanka as well. We are planning to export the product to India and many African countries soon,” said Md Mahfuzur Rahman Russel, chief business officer of Walton Kitchen Appliances.
Meanwhile, Sharif Home Appliance Ltd’s Assistant Manager (Sales Admin) Nawshad Hossain said, “At the home appliance segment, gas stove is our major product. We have more than 25 models under five categories, with prices ranging between Tk 1,100 – Tk 6,500.
“We sold nearly three lack gas stoves in the last three years.”
Molla Bachchu Mia, assistant general manager (marketing) of Nova Electronics & Home Appliance, said, “We sold more than five lakh gas stoves in Bangladesh, and also in some Asian countries as well. We are witnessing a 20 per cent growth in this sector.”
Stating that Best Electronics Ltd’s gas stoves have witnessed a nearly 20 per cent market growth, its Product Manager Md Imran said, “We sell different types of stoves, but customers usually pick the ones costing between Tk 2,000 and Tk 3,500.”
How did the market flourish?
According to a 2021 study titled “Market Mapping of Modern Cooking Appliances, Bangladesh, the price of gas stoves dropped significantly in the last few years owing to the local manufacturing sector, which led to increased sales of these products – especially in peri-urban and rural areas.
Aside from providing policy support through tax exemption, the government also introduced the National Action Plan for Clean Cooking (2020-2030), which helped local manufacturers expand the sector by creating more demand among consumers.
Data from the Export Promotion Bureau further reveals that Bangladesh exported gas stoves worth $151,056 to China, Britain, India, Kenya, Nepal, East Timor, and Yemen in the FY2020-21, a significant leap from $45,429 in exports to UK, India, Maldives, Nepal and Oman in FY2018-19. Along with the local brands, many foreign brands such as Samsung, LG and Butterfly have set up factories in Bangladesh to take a bite out of the booming gas stove market, industry insiders say.
