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Despite the global recession, Japan has shown interest to invest in the heavy industries. We are now going to set up a joint-venture with Netherlands, Australia and Singapore and hopeful of launching the project worth around $1.57 billion by January next year, said Chairman of Bangladesh Steel and Engineering Corporation (BSEC) Md Shahidul Haque Bhuiyan, ndc in an interview with The Business Post’s Muhammad Ayub Ali
What is the main obstacle facing state-run organisations to compete with private organisations?
In Bangladesh, state-run organisations lag behind private competitors due to a lack of proper guidance, training and motivation of government employees by the authorities concerned and misguidance by various associations like Collective Bargaining Agent (CBA).
But I think that syndicate is the main problem for most of the state-run organisations as the members of the syndicate are getting better support and guidance from political leaders.
That is why most of the state-run organisations cannot compete with the private organisations and cannot make profits despite having huge opportunities.
Why Atlas Bangladesh Ltd cannot become a profitable organisation and lag behind local private companies like Runner despite huge opportunities?
As the chairman of Atlas Bangladesh Ltd and Bangladesh Honda Limited, a joint venture with Japan, I can tell you that during the Covid-19 pandemic, Bangladesh Honda Limited sold nearly 74,000 units of motorcycles whereas Atlas Bangladesh Ltd sold only 600 units. It means that Atlas Bangladesh Ltd lacks skilled employees. “This is not a failure from the management, it is their internal failure.”
“If the motorbikes of Bangladesh Honda Limited can sell well why Atlas Bangladesh Ltd cannot do it,” he questioned.
Have you taken any initiative to draw foreign investment in the BSEC project?
Despite the recession, Japan has shown interest to invest in the heavy industry. At present, we are going to take up a joint-venture initiative for the heavy industry with Netherlands, Australia, and Singapore. We are hopeful of launching the project worth around $1.57 billion by January next year.
Apart from this, we are working on importing two new brands of motorcycles from India. Hopefully, the motorcycles will hit our local market soon.
I hope the new venture helps expand our market rapidly and we will do better than our local competitors.
What kind of initiatives you have taken to turn loss-making organisations into profitable organisations?
After taking charge as the BSEC chairman, I could reduce the loss of many organisations and tried my best to make profits.
However, an organised platform is necessary for selling your products whatever you produce.
We are going to launch one-stop service and sales centre at BSEC Bhaban at Kawran Bazar for selling the products produced by BSEC organisations. We are trying to make the process of our services easier for the customers so that we can compete with our local peers.
Apart from this, we are looking for some sales centers outside the country for selling our products in the subcontinent.
Why Eastern Tube Ltd has incurred losses consecutively?
Eastern Tube Ltd has incurred losses consecutively due to old machinery as well as a decline in the demand for the products produced by Eastern Tube Ltd.
However, during my tenure, I am able to cut the loss. Now we have a LED plant and we are going to recover the losses. Hopefully, we will make profits in the upcoming year. We have been working to compete with our private competitors, considering the market demand. We are making LED batten light, LED floodlight, LED panel light (square), LED streetlight, and LED AC/DC light. Hopefully, we can launch these products very soon.
What is the condition of Eastern Cable Ltd now?
It is very good news for us that Eastern Cable turned profits after three years as well as Eastern Cable has come to the export market after nine years. In May 2022, we exported products worth US$ 524,235 to China and also inked an export agreement with China National Technical Import and Export Corporation (CNTIEC) worth $4.2 million. Recently we are delivering one lot and another lot will be delivered as per their demand.
