Local blade market in shambles

Despite steady growth in the blade market, thanks to growing salon industry and increasing population, the local industry is severely suffering due to lack of policy support, unequal management and smuggling by dishonest business people.

Local blades are sharp enough and their quality is almost the same as imported ones but the consumers’ eyes are still on foreign brands giving smugglers the opportunity to sell blades at cheaper rate than the local manufactures.

Some local companies are doing the same as well causing local blade manufactures to suffer. They demanded proper policy support, stopping smuggling and ensuring equal management for all the market players to flourish the industry.

When consumers are gradually shifting to razors from double edge blades, local industries are still stuck in producing double edge razor blades.

One or two local factories have started to manufacture razors but the government-owned blade factory is sticking to manufacturing double edge blade with poor amount of production.

As the manufactures are failing to bring diversification in production with modern technology following the demand of consumers 40 per cent markets have already been grasped by global companies.

Again despite expansion in the local blade market the local manufacturers are not reaping the benefit because of their traditional way of production.

When modern platinum-coated blades are much sharper than stainless steel blades, the local companies are involved in production of stainless steel blades.

People are now so busy that they want easier and comfortable solution leading them to switch to razors from double edge blades.

Apart from this, new trend of wearing beard resulting in growing use of trimmer and one-time disposable razors in the country.

Though some companies have started to manufacture razors the trimmer market is controlled by global peer China.

The industry insiders said they have to spend Tk120 including vat and tax on manufacturing  100 blades but smugglers are selling blades to wholesale markets for Tk105 dodging vat and tax.

As a result, they are supplying blades and razors at cheaper rate much to the sufferings of the local industry. They also said the government should stop illegal imports and provide support needed to flourish the local industry.

On the other hand, the importers said they are importing as per the rules. The imported products are sharper and quality is better than the local products. As a result consumers look forward to imported blades and razors.

Jahangir Alam, Managing Director of Matador Shaving Industries Ltd said some dishonest smugglers are active in the market to bring blades dodging vat and tax.

This is why they are supplying products at low price and some local brands are doing the same, he said.

Despite having the same sharpness and quality people prefer foreign brands due to their fantasy for foreign brand value, he observed.

“We are trying to survive with oxygen hoping to flourish in future if the opportune moment comes, he added.

Blades edged down, razor edged up

Just eight years back, men used to use double edge blade to shave beard off but the trend has significantly changed over the last several years. The young generation especially corporate job holders prefer shaving in home setting in the shortest period of time. As a result, consumers are shifting their focus on using one-time razors from double edge blades resulting in decline in the use of double edge blades while the use of razors is growing in the market.

A significant portion of young generation likes to keep beard. This is why the use of blade is declining while the use of trimmer is silently growing.

The industries and commercial offices which used to use double edge blades once are now using anti-cutter. As a result, the double edge blade market is on the decline.

Rakib Ahamed, a corporate job holder in the capital said earlier he used double edge blade to clean beard. Recently, he has shifted to razor.

It takes too much time to shave with blade and there is also a risk of bleeding but razor has no such risk. It is also comfortable. The local razors are of low quality while imported Gillette razors maintain high quality and much sharper, he added.

Scenario of blade market

The local blade industry is gradually expanding. According to the data of Bangladesh Blade Factory Limited (BBFL) the annual demand for double edge blade is 150 crore units while the demand for disposable razor is 20 crore units.

The annual market size of the industry is nearly worth TK2,000 crore.

Three local companies are active in the market. They are Samah Razor Blades Industries Limited, Matador Group and Vidyut Bangladesh Pvt Ltd.

The state-owned Bangladesh Blade Factory Limited (BBFL) is in production with Sword brand double edge stainless steel blades.

Some 30 brands of blades and razors are available in the market. Of them, 15 brands are local and the rest are foreign brands imported from India, Pakistan, China and United Kingdom.

Samah Razor Blades Industries Limited, the dominant market player in the country, has been in operation since 1962. It is manufacturing Sharp, Adoro, Balaka, Champion and Clifton double edge blade and Sharp and Adoro razors.

Md Tarikul Islam, Senior Manager (Export) of Samah Razor Blades Ind. Ltd said they were offering a perfect combination of comfort, elegance, performance, style and quality.

“When it comes to quality, we are using world best steel and offering product diversification,” he said.

Local blade in global market

Bangladesh is meeting growing local demand through imports but the country is also exporting blades to some 40 countries including USA, Italy, Thailand, Malaysia, Myanmar and Qatar.

The government is offering 10 per cent incentive to boost the export market. The industry insiders alleged that they were unable to draw the benefits as there is complex condition against the incentives.

Md Tarikul Islam, Senior Manager (Export) of Samah Razor Blades Ind. Ltd, said they were exporting blades and razors to some 40 countries.

Of them, Malaysia, Myanmar, USA and Italy are regular export destinations while the rest are irregular destinations. Bangladesh has huge potential in the global market as the market is gradually witnessing steady growth.

Mohammad Mahmud Hossain, the head of supply chain of Matador Shaving Industries Limited, said they were exporting blades to the global market due to their quality and sharpness.

“Currently we are exporting to Thailand. The annual export is worth $70,000. Earlier, we exported to some Middle Eastern countries including Qatar.”

Tk37.70cr govt project

Owned by the Bangladesh Steel and Engineering Corporation, Bangladesh Blade Factory Limited (BBFL) at present is manufacturing and marketing Sword brand double edge stainless steel blades.

The government took a project to modernize the state-owned BBFL in 2018 with a deadline of 2020.

However, the state-run blade factory modernization project reached its deadline with zero progress. The BBFL project has recently been revised raising the project cost by Tk13 crore.

The deadline has also been extended by three years.

With this, the Tk25 crore original project now has been increased to Tk38 crore. After the modernization, the factory will produce disposable razor blades besides double edge regular blades.

Engineer Md Shahidul Islam, Deputy Chief Engineer of Bangladesh Blade Factory Ltd said the government has TK 37.70 crore Disposable Razor Blade Plant Installation and Existing Plant Modernization Project.

If the project is implemented there will be diversification in production and production will increase. Earlier, only double edge blades used to have been manufactured.

“After the project we will manufacture modern blades and razors. Currently, we are producing 2 to 3 crore units annually. But after the project we will be able to produce 8 to 10 crore units,” he added.

Industry needs policy support to flourish

Local manufactures have the capacity to meet the demand for local blades but a significant portion of demand is met by foreign brands.

According to the data of Bangladesh Blade Factory Limited (BBFL), currently the country is meeting 40 per cent local demand by foreign products. The major foreign peers are India, China, Pakistan and UK.

The country is 100 per cent dependent on importing raw materials from India and Japan.

The industry insiders claimed that a significant portion of their capability remains unutilized due to the availability of low cost foreign products as the local manufactures have to pay nearly 30 per cent vat and tax while importing raw materials.

They demanded reducing vat and tax on raw materials to flourish the local industry. 

Jahangir Alam, Managing Director of Matador Shaving Industries Ltd, said Bangladesh is self-sufficient in manufacturing double edge blades.

“If we are provided necessary support by the authorities concerned the local blade industry has the prospect to be flourished.”