Home ›› 13 Jan 2022 ›› Front
Not too long ago, purchasing construction materials for buildings or various projects was a common practice but the arrival of the Ready Mix Concrete (RMC) supply system has changed the scenario in recent years.
Stakeholders say a construction boom and megaprojects spurred the sector’s growth, encouraging large companies to enter it. People say they are opting for RMC as it saves time and hassle.
RMC’s monthly demand stands at around 2-2.5 crore cubic feet (cft) per month as the market grows 5-10 per cent annually, Bangladesh Ready Mix Concrete Association (BRMCA) President Md Abdul Awal said.
‘A Brief Study of Ready-Mix Concrete: Features & Uses in Construction on the Context of Bangladesh’ noted that demands in cities drove RMC’s growth. “RMC is particularly used when building activity is located in congested sites where small space is available for sitting the mixer and for stockpiling of aggregates and for the construction of high-rise building,” it said.
BRMCA says Concord Group of Companies, NDE Readymix Ltd, ABC Building Products Ltd, Advanced Development Technologies, Akij Cement Ready Mix Concrete, Navana Building Products Ltd, A M Asphalt & Ready Mix Concrete Ltd, Bengal Development Corporation, Crown Cement Concrete & Building Products Ltd, and Mir Concrete Products Ltd are major players in the sector.
Concord’s Deputy General Manager Mashfiquzzaman said RMC’s use had increased vastly in recent years. Its advantages include swift construction, labour and associated cost reduction, superior quality control, minimising cement wastage, relatively pollution-free, and better durability.
“Now, no-one can think of constructing a high-rise without using RMC although it costs 10-15 per cent more than the traditional system,” he told The Business Post.
Stone, cement, sand and chemical are used to make RMC. All raw materials, except sand, are imported. Awal said their members send RMC materials to BUET for testing before using them to ensure quality. He said the price of RMC increased to Tk 220-350 per cft from Tk 170-180 over the last five years due to the high cost of raw materials.
Mashfiquzzaman said they had been in the business since 1998 and noted that transportation costs and high import tax on stones were significant challenges.
“We have to pay 58 per cent tax on stone import while clinker importers pay 21 per cent. We request the government to lower the stone import tax to 21 per cent. The fuel price hike has also pushed up transport cost,” he pointed out.
BRMCA’s Awal said that the demand for RMC was rising with the growing number of megaprojects and multi-storey buildings. “There were four RMC companies in 2009 but now the number is nearly 30,” he said, requesting the government not to impose VAT on RMC supply in the future to help the sector flourish.
The Bashundhara Ready Mix and Construction Industries Limited recently launched its commercial operations in South Keraniganj. Safwan Sobhan, the group’s vice-chairman, said the demand for RMC would go up 10 times in the next five years. “We will soon set up 20 more ready-mix units across the country,” he said.
Kamal Mahmud, the vice-president of Real Estate & Housing Association of Bangladesh (REHAB), said RMC had improved the quality of their buildings. “It allows us to complete our work quicker,” he added.
He explained that all materials are mixed well while making RMC and that is important for the good finishing and durability of any structure.
According to Fortune Business Insights, the global RMC market is projected to grow from $792.2 billion in 2021 to $1,374.2 billion in 2028 at a compound annual growth rate of 8.2 per cent in the forecast period.
“The concept of green construction adopted to help with aforementioned effects has led to increased demand for eco-friendly ready mix concrete. The expanding construction industry is supporting the market growth. Income growth in the developed and developing country has accelerated the construction of buildings and housing structures that would lead to the high consumption of the concrete,” it mentioned.
