Shinepukur alone clutches 40% of Bangladesh’s ceramic exports

Shinepukur Ceramics Limited topped among the Bangladeshi ceramic exporters with shielding around 40 per cent of the country’s total export receipts from the sector in the fiscal year 2021-22.

The listed company exported $18.23 million worth of ceramic products in the last fiscal year, far more ahead than any of its local peers.

According to the Export Promotion Bureau (EPB) data, Bangladeshi ceramic products are being exported to more than 50 countries, including the UK, the US, Italy, Spain, Norway, France, Netherlands, and Australia.

The country fetched ceramics exports worth $41.31 million in FY22.

Shinepukur Ceramics, which is solely owned by the country’s leading business conglomerate Beximco Group, has also been engaged as an industrial partner in a government initiative with the GCE department to create heat-insulating ceramic fibers for industrial applications.

It has successfully produced ceramic fibers using a pilot plant installed at the Bangladesh University of Engineering and Technology (Buet), according to a report prepared by EBL Securities, a stockbroker.

Export receipts comprise 56 per cent of the company’s total revenue, the highest among other listed peers, against which it enjoys cash incentives, income tax exemptions, and import tariff waivers, decreasing the company’s overall expenses, consequently making a positive impact on its overall profitability.

After a pandemic-induced downturn in the fiscal year 2019-20, as per the EBL Securities study, the company reported revenue growth of 16 per cent and 24 per cent respectively in FY21 and FY22.

With an 18 per cent market share, Shinepukur Ceramics Limited has currently been the leader in the tableware market in Bangladesh.

Shinepukur Ceramics’ gross profit and net profit grew by 22 per cent and 47 per cent respectively in FY21 while it grew by 27 per cent and 25 per cent respectively in FY22.

After showcasing a phenomenal 43.3 per cent growth in local sales in FY21, the company failed to sustain the momentum with a 10 per cent decline in domestic sales in FY22, the EBL report stated.

Mohammed Humayun Kabir, chief executive officer at Shinepukur Ceramics told The Business Post, “There has been a huge potential for ceramic goods both in local and global markets because of urbanisation and consumers’ high purchasing capacity as well as lifestyle changes.”

“Currently, Bangladesh has an annual ceramics market of around Tk 8000 crore. Of them, Tk 500 crore accounts for tableware products. Local companies are meeting the demands for 90 per cent of tableware products and 85 per cent of tiles market in the country,” he added.

Shinepukur holds more than a 10 per cent share of the local ceramic market.

“We are in the top position among Bangladeshi exporters in the around $1 trillion worth of global ceramic market,” Humayun Kabir stated.

The market demand would further increase in the future. Around 8-10 Bangladeshi companies were now exporting ceramic items amounting to less than $100 million, according to Humayun Kabir.

“The gas, power, skilled manpower, and industry-friendly tax measures are key challenges for the ceramic sector in Bangladesh. So, proper policy advocacy is needed to ensure uninterrupted power and gas supply to factories for manufacturing quality products,” Humayun Kabir continued.

The company’s CEO also said, “Our production has been hampered since September 2021 following the disruption in power and gas. We cannot finish products properly due to frequent electricity cuts.”

Shinepukur is the leader in the ceramic market and ranks number 1 in terms of sales revenue and market share in the country.

“We produce both Porcelain and Bone China products. We also have our innovations to create designs to woo customers across the global market,” Shinepukur’s CEO said.

According to Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), Bangladesh exported nearly Tk 500 crore worth of ceramic products in the last fiscal year.

“We are exporting finished ceramic tableware in different countries across the globe. Shinepukur, Monno Ceramic, Star Porcelain, Paragon Ceramic, and Protik Ceramics are the top five exporters in our country,” Md Shirajul Islam Mollah, president of BCMEA told The Business Post.

“The current gas crisis has impacted our local industries on a large scale. The rising price of gas in addition to the supply chain disruption has emerged as the biggest challenge to continuing production at the factories,” he added.

The demand for ceramic products went up by 22 per cent in the last five years, according to BCMEA data.

A total of 71 companies invested Tk 15,356.50 crore in the fiscal year 2021-22 in Bangladesh. Of them, 20 tableware companies invested Tk 3,174.25 crore, 33 tiles companies Tk 10,151.86 crore and 18 sanitary ware companies invested Tk 2,030.39 core, BCMEA data shows.

Shinepukur Ceramics paid a 3 per cent cash dividend to its shareholders for the year ended in June 2022. Its shares stood at Tk 43 per share on the trading floor of the Dhaka bourse on Monday.