Due to its hot and humid climate, rapid urbanisation, and rising per-capita incomes, the air conditioning market in Bangladesh has been growing significantly and Minister Brand is one of the local electronics companies in Bangladesh that’s leading the market.
MD Sifat Ullah, assistant director (AC Production) of Minister - MyOne Group shared his view about the overall air-conditioning market of Bangladesh with The Business Post’s Md Samiur Rahman Sazzad recently.
How long has Minister Brand been in the air conditioning industry in Bangladesh?
When Minister Brand first stepped into the air conditioning industry around 2016, we only assembled the parts; however, in 2017, we started actively manufacturing ACs.
Initially, we focused on manufacturing non-inverter ACs and later expanded to making inverter ACs as well.
Since then, we have been manufacturing ACs across Bangladesh for nearly eight years now.
Do you see air conditioning as a luxury or a necessity?
At Minister Brand, we see air conditioning as increasingly essential in Bangladesh due to the hot climate.
We are committed to making our AC units affordable and accessible to meet the varied needs of Bangladeshi consumers.
Currently, one of our top-selling models is the Minister Split 1.5 Ton Inverter AC. It is very popular due to its reasonable price and excellent features.
What's the current state of the AC market in Bangladesh? How big is it, where does Minister Brand export, and what's its annual turnover?
The air conditioning market in Bangladesh is growing significantly, driven by its hot and humid climate, rapid urbanisation, and rising per-capita incomes.
Minister Brand is contributing to this growth with an annual sales increase of 10 per cent, selling between 4,00,000 to 5,00,000 units per year.
Currently, 70 per cent of the Minister's ACs are sold domestically, with the remaining 30 per cent intended for international markets.
Although we have not started exporting yet, we are planning to expand to global markets soon.
What challenges do you see coming in the AC market, and how are you planning to deal with them?
Minister Brand recognises the growing competition from both local and international AC brands as a major challenge.
To tackle this, we are focusing on quality and innovation, backed by substantial investments in research and development.
This enables us to introduce superior and innovative products to the market.
Another challenge we are facing is currency exchange issues, which are affecting our Letter of Credit (LC) transactions.
Additionally, some local competitors are undercutting our prices at the expense of quality, negatively impacting our sales.
Despite these challenges, Minister Brand is committed to delivering high-quality products at reasonable prices, ensuring customer satisfaction and loyalty.
How do you plan to expand your exports in the future given the market conditions?
Minister Brand plans to expand its export activities by targeting global markets. We aim to increase brand visibility through participation in international trade shows and exhibitions.
Are there any plans to increase production to meet excess demand?
Minister Brand is preparing to boost production capacity to meet the growing demand for its ACs. We are focusing investments on expanding our manufacturing facilities and exploring the construction of new production plants.
What role does your company aim to play in the future of the AC industry?
Minister Brand aims to become a prominent global player in the air conditioning industry, driven by our commitment to providing high-quality, innovative, and cost-effective air conditioning solutions worldwide.
How will you ensure your company stays innovative and competitive?
Minister Brand is dedicated to maintaining innovation and competitiveness by continuing to invest in research and development.
Additionally, we place a high priority on customer feedback and engagement to tailor our products to market needs and preferences.
