To Study the Current Market Scenario and the Future Prospect of the Leather Chemical Industry of Ban by regan ahmed

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Study the Current Market Scenario and the Future Prospect of Leather Chemical Industry of Bangladesh About The Organization Company Profile at a Glance: Company Name

: Advanced Chemical Industries (ACI) Limited

Address

: ACI Centre, 245, Tejgaon Industrial Area, Dhaka-1208.

Phone

: +88-02-9885694

Fax

: +00-02-9886029

E-mail

: INFO@ACI-BD.COM

Web Page

: WWW. ACI-BD. COM

Company Logo

Strategic Business Units: Pharmaceuticals Consumer Brands AgribusinessCrop Care and Public Health Animal Health Subsidiaries: ACI Trading Limited ACI Formulation Limited Apex Leather crafts Limited ACI Salt Limited Executive Management: Mr. M Anis-Us-Dowla Dr. Arif-Dowla Mr. M Mohibuz Zaman Dr. F H Ansarey Mr. Azmal Hossain Mr. Syed Alamgir Mr. Muallem A Choudhury Mr. Towfiqur Rahman Mr. Priyatosh Datta Ms. Sheema Abed Rahman Mr. Pradip Kar. Chowdhury

Chairman Managing Director Chief Operating Officer, Executive Director, Executive Director, Executive Director, Executive Director, General Manager, General Manager, General Manager, Financial Controller

Pharmaceuticals. Agribusiness. Trade. Consumer Brands. Finance & Planning. Operation. Quality Assurance. Corporate Service.

Financials (Year Ending December 2004): Authorized Capital: Paid-Up Capital: Sales: Numbers of Employees:

Taka 500 Million. Taka 161.70 Million. Taka 2,558 Million. 2161

Background: ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the 24th of January, 1973 as ICI Bangladesh Manufactures Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28.12.1976 and its first trading of share took place on 09.03.1994. Later on May 05, 1992, ICI Plc divested 70% of its shareholders to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was making on 22 October, 1995. Advanced Chemicals Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The

company has diversified into five major businesses. Beside these, the company has a large list of international associates and partners with various trade and business agreements. Company Mission: ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers. Company Vision: To realize the mission ACI will • • • • • • •

Endeavor to attain a position of leadership in each category of it businesses. Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies. Develop its employees by encouraging empowerment and rewarding innovation. Promote an environment for learning and personal growth of its employees. Provide products and services of high and consistent quality, ensuring value for money to its customers. Encourage and assist in the qualitative improvement of the services of its suppliers and distributors. Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence.

Values: Quality Customer Focus Fairness Transparency Continuous Improvement Distribution Network: The company maintains strategically located sales centers in 198 different locations across the country. It has developed an advanced distribution system through its more than 300 skilled and trained manpower and a large fleet over 80 vehicles. The distribution system is capable of handling continuing volume of diverse range of products from the various businesses. The company’s distribution centers are highly streamlined, computerized and automated. We are capable of maintaining a cold chain for some specialized range of products such as vaccines and insulin. The combination of this advanced function and multi dimensional capabilities make it possible to handle hundreds of products efficiently. Business Units: ACI Pharmaceuticals: In 2004, ACI Pharmaceuticals ranked 11th in the Bangladesh pharmaceuticals industry. It provides the market with a wide selection of drugs across all major therapeutic classes, and also offers some specially medicines. ACI Pharmaceutical represents AstraZeneca, Eli Lily and UCB in Bangladesh. ACI Crop Care and Public Heath Division: This Division is holding the leadership position in the industries; Animal Health has experienced one of the highest growth rates in this sector. ACI Agribusiness has partnerships with several international conglomerates including Ceva Santhe Animale, Invesa, UCB, Isago Asia and Boreegaad Taicang Chemical Co. Ltd.sdx. ACI Consumer Brands: This Division is a leading Fast Moving Consumer Goods (FMCG) company in Bangladesh. In the liquid antiseptic and mosquito repellant categories, this division is a very strong market leader. Foreign partners represented in by this division include Godrej Consumer Products (for hair care and skin care ), Parle Group (for Parle G biscuits), Beiersdorf, Germany (for Nivea range of Products) and Colgate Palmolive. ACI has formed joint ventures with leading FMCG and agribusiness players in the region. These are: Asian Consumer Care Private Ltd: Joint venture of ACI and Redrock Limited, for distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake in the venture. Tetly ACI Bangladesh Ltd: Joint venture of ACI and Tetley Group of United Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50% shareholding. Many ACI products have crossed our national boundary and are being successfully exported to various countries in Asia, the Middle East and the CIS region. The responsible of foreign consumers to our products has been encouraging. Manufacturing Standards: ACI has three separate manufacturing plants in the outskirts of Dhaka. The Pharmaceuticals plant is located at Narayanganj; ACI Formulations has been setup in Gazipur and the Tetley factory has been built at Konabari. ACI Limited is the first company in Bangladesh to have attained the ISO 9001 certification for Quality Management and ISO 14001 for Environment Management. The Trading subsidiary has also received ISO 9002 certificate. At our manufacturing facilities, we follow CGMP guidelines and standards recommended by World Health Organization (WHO) for pharmaceutical formulations. Diversification into new industries:

ACI Limited is venturing into new areas of business, as part of its diversification initiatives. Two such businesses being set up are ACI Salt Ltd. And ACI Godrej Agrovet Private Limited. ACI Salt Ltd: ACI has set up its salt plant in Rupganj, on the bands of the Shitalakhya river. The plant will produce refined iodized salt through Thermal Evaporation System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. The end product will be high quality, free-flowing salt with even, crystallized grains. The iodine content of ACI salt will have a stability of more than 6 months. The project has been undertaken at an approximate cost of Taka 32 crores. ACI Godrej Agrovet Private Limited: Godrej is a pioneer in the packaged meat business in India. It is also the market leader in the poultry industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint venture in Bangladesh to set up an Integrated Poultry Project. Under this project, ACI Godrej Agovet has already set up a feed mill at Sirajganj. This is fully automatic pellet poultry and fisheries feed mill, which uses technology from Jiangsu Muyang group of China. The company has also set up a hatchery at Joynabazar, on the Dhaka Mymenshingh road, with technology from Godrej. The plans for this project also include establishing Grand Parents and Parent Stock breeding farms. The investment in the project is Taka 8 crores, with ACI Limited having 50% shareholding of the company. ACI Formulation Limited: ACI Formulations Limited (ACI FL) is a subsidiary of ACI Limited, located at Gazipur, in the outskirt of Dhaka. ACI FL manufactures majority of the products of ACI strategic Business Limited except for Pharmaceuticals division. The factory is equipped with the state-of-Art facilities for product formulations and process innovation. These include modern computerized equipment like HPLC and GLC. The product range manufactured at ACI FL include Crop Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and liquid forms, Mosquito Pesticides in the forms of aerosols, vaporizers and coils, and households chemicals like toilet cleaners and hand wash. Quality Policy ACI aims is to achieve business excellence through quality by understanding accepting, meeting and exceeding customer expectations. ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current business and ensures that current Good Manufacturing Practices (CGMP) as recommended by World Health Organization is followed for its pharmaceutical operations. The management of ACI commits itself to quality as the prime consideration in all its business decisions. All employees of ACI must follow documented procedures to ensure compliance with quality standards. The pool of human resources of the company will be developed to their full potential and harnessed through regular training and their participation in seeking continuous improvement of work methods. Business Performance and Growth Scenario of ACI Limited:

Business Performance financial analysis 2002 -2004

• • • • • • •

2002 2002

2003 2003

2004 2004

Issued & paid up c apital (Tk.) 161,700,000 Net Turnover (Tk.) 2,052,913,536 Gr oss mar gin (%) 30 Profit after tax (Tk.) 109,180,668 Rate of Di vidend (%) 37.5 Earnings per shar e (EPS) (Times) 6.75 Number of employees 1662

161,700,000 2,239,565,258 29 85,413,760 40.0 5.28 1883

161,700,000 2,557,772,237 29 89,516,202 42.5 5.54 1924

Figure No: 2.1

Business Performance business divisions Contribution by rev enue 2 0 0 4

Figure No: 2.2

sales & profit Growth

14.21%

Figure No: 2.3 ACI Trading Limited ACI Trading Ltd is one of the leading Trading Houses in Bangladesh. Originally it was ICI Pakistan Ltd established as the subsidiary of Imperial Chemical Industries (ICI) in the then East Pakistan. After independence of Bangladesh the operation continued as ICI Bangladesh Ltd. In July 1994 ACI Ltd another divested part of ICI PLC UK for Pharmaceuticals and Agrochemicals operation purchased ICI Bangladesh Ltd from ICI PLC and renamed it to ACI Trading Ltd. ACI Trading Ltd has been accredited with ISO 9002 certification since June 1997 for its Quality System on indenting business. The Company is mainly involved in marketing and sales of various Industrial Chemicals, Petrochemicals, Plastics, Pharmaceuticals, Leather and Shoe finishes. Textile Dyes and Auxiliaries through Indent sales. It has four business divisions such as Chemicals, Textile, Leather and Water Pumps. To render technical service ACI Trading has two separate technical application laboratories for textile and leather businesses. We represent ‘World Class Products’ in Bangladesh from ICI and some other multi-nationals like ExxonMobile, Solvay Interox, Enichem, Huntsman Tioxide, Magadi Soda Co., Stahl UK Ltd, Onga Australia Pte Ltd etc. We also represent some reputed Principals form Asian countries mostly from India, Singapore and Malaysia. This is a 60% owned subsidiary. ICI, Zeneca, Exxon, Stahl are leaders in their respective fields and ACI have excellent market share of their products in Bangladesh. The major responsibilities of ACI Trading are: - Representing various international companies - Procuring raw materials Organogram – Business Management

Managing Director Figure No: 2.4 Organogram â&#x20AC;&#x201C; Business Support Functions

Executive Director, Pharma

Executive Director, Agro

Executive Director, Consumer Managing

Executive Director, Trade

Executive Director, Operation

Director

General Manager, Corporate

Financial Controller

General Manager, Distributor

Commercial Manager

Audit Manager

Figure No: 2.5

Organ gram of ACI Trading Limited (Focusing Leather Chemical Division)

Dr Arif Dowla Managing Director

Azmal Hossain

Executive Director (Trading)

A Khayer

M S Dastidar

Coordination Officer

Asst. Manger, Commercial

Textile Division

Leather Chemical Division

Chemical Division

Saiful Azam Kashem Sr. Technical Sales Oficer

Munirul Islam Technical Sales Oficer

Figure 2.6 Mission: Want to be a leading trusted quality Trading Company to earn confidence of the customers. To establish a long-term business relation by offering quality products & services from World Class chemical companies in alignment with our core values. Strategic Objective: • • • • • • • • •

To sustain and improve Market Share for the key products To offer World Class products from reputed sources Increase ability to compete in the industry by developing people To render superior service (technical & logistics) to customers To maintain & improve business relation with our Principals New Products Sourcing from reputed manufacturers Aggressively grow Ex-stock Trading with calculative risk To ensure stable earning through balanced product port-folio Taking care of our shareholders interest.

Indent Sales Growth from 2002-2005 & Budget 2006

2000 1500 1000 1,420 500

1575

1,538

1855

904

686

0 Act 2002

Act 2003

Act 2004

Bud 2005

Act 2005

Bud 2006

Growth % 2003

31.77

2004

57.08

2005

8.31

2006

20.61

UCB Film not contributed although budgeted in â&#x20AC;&#x2122;05 Allocation & price constraint of ExxonMobil Plastics for 3 Reason for months variance 05 Scares of Foreign Exchange & restriction on L/C by Central Bank Assumption for Budâ&#x20AC;&#x2122;06

Increase customer & product base New initiative for aggressive growth

Ex-stock Sales Growth from 2002-2005 & Budget 2006

80.0 70.0 60.0 50.0 78.7

40.0 30.0 20.0 10.0 0.0

Act 2002

54.42 31.0

29.8

Act 2003

53.6

30.8

Act 2004

Bud 2005

Act 2005

Bud 2006

Reason for Less ExxonMobil Plastics sales due to strategic import variance’05 Stahl sales was behind due to recession in Leather Industry Assumption forTo increase ExxonMobil Plastics sales with calculative risk Bud’06 To increase Textile Auxiliaries sales through Cola Project To increase sales of MEC, Cereclor Inclusion of other products like TiO2, PET

Growth %0 2003 -3.87 2004 3.36 2005 74.03 2006 46.83

Profit and Loss Budget 2006 Actual Actual Estimated 2003 2004 2005

Net Sales (Ex-stock) Total COGS Gross Profit Commission Income Marketing Expenses : Fixed Expenses Variable Expenses Total Marketing Expenses Field Force Expenses: Fixed Expenses Variable Expenses Total FF Expenses Distribution Expenses Administration Expenses Total Operating Expenses Other Income Trading Profit Financing Cost Profit Before WPF & Tax

Budget Variance 2006 %

27.47 28.25 22.15 22.15 5.32 6.10 16.18 16.74

49.97 41.00 8.97 17.60

70.00 60.55 9.45 22.10

40.08 47.68 5.36 25.57

7.83 9.26 1.80 0.93 9.63 10.19

10.56 1.21 11.77

11.39 1.22 12.61

7.81 0.83 7.09

1.33 1.53 0.52 0.26 1.85 1.79 0.13 0.06 0.60 0.60 12.21 12.64 0.12 1.75 9.40 11.95 2.38 3.07 7.01 8.88

2.39 0.50 2.89 0.06 0.60 15.32 1.50 12.75 2.64 10.11

3.35 0.50 3.85 0.04 0.60 17.10 1.50 15.96 2.80 13.16

40.17 0.00 33.22 -33.33 0.00 11.59 0.00 25.14 6.06 30.12

SWOT Analysis of ACI Trading Limited Strength On going need base training of people (Management & Technical) Well groomed Employees & Professional approach Association of global famous brand (ExxonMobil, ICI) Loyal customer base for World Class products Quality perception of customer for products & services from ACI Support of ACI conglomerate & its image Weakness Achievement depends on supplier’s own strategy

Much dependent on few major suppliers Some major Raw Material suppliers absence in Portfolio Uncompetitive price & longer lead-time (Europe vs. India/China) Technical support is based on suppliers’ priority Opportunity More Local & Export orientated industries coming up Sourcing Chinese suppliers for some major RM New business line expansion (API, PET, PS etc) Value addition of products (Textile, Leather) Increase Ex-stock Trading (existing & new) Threat Indian & Chinese cheaper RM suppliers Local basic RM manufacturers coming up Increase of competition taking advantage of IT Business Strategy To nourish the Strength More need base training of people (Management & Technical) Build more relation with major supplier Exert Professional Behavior to maintain the reputation of ACI Proactive approach to customers for relationship marketing To turn Weaknesses to Strength Find suppliers for some major Raw Material not in range Update suppliers with market & competition on regular basis Insist supplier for technical support showing business potentiality To avail Opportunities Increase customer base Increase product base Step for Value Addition Increase trading of Ex-stock To turn Threat to Opportunity Take advantage of IT to form chemical data-base for new opportunity. Try sourcing of RM from India & China Key differentiating factors that attracts customers: Quality, price, timely delivery with clean documents Technical Assistance/Information to customers about int’l price Proactive involvement in customers purchasing decision Excellent relation with loyal customers Highly professional & customers caring sales people Products, Customers & Supplier Base Up to 2005

Chemical

Textile

Leather

Total

Total Product base

165

Total customer

166

Total supplier

Major Development through initiative in 2005 • • •

Re-start of Ex-stock sales of ExxonMobil Plastics Increased customer & Product base through trials for Textile Auxiliaries Introduction of C&TP from Stahl India

• • • • • • •

Appointed a Retailer for Stahl Leather Chemical sales Irregularities caused by Sales Manager, Leather (Mr Mizan) mostly adjusted with customer satisfaction Sourcing PET from China Sourcing API from India & China Measurable & Comparable items Software development Weekly sales Meeting with all SBU with EDT Study on Textile Auxiliaries Market through Internee

Projects/Suppliers looked for H2O2 Paints Bulb & Tube Lights Dry Cell Battery Adhesive Tapes Lady Napkin Initiative to be taken in 2006 Value Addition – Textile Auxiliaries ICI Paints India (J.V.) Value Addition for Beam House Chemicals for leather More trials of Text. & Leather Chemicals to increase customer & Product base Dyes & Optical Brightener sourcing – India, China Introduction more Traders for Textile Aux. credit sales Recruit sales person for Chemical & Textile division Implementation of Program for Measurable & Comparable items related to sales performance Engage two Internee for Chemical & Leather Market Study Interaction with knowledgeable & experienced persons from Faculties and Trade Aggressive Plan to become a big Trading House by 2008 Leather Industry of Bangladesh Leather Industry Background The Leather Industry in Bangladesh Tannery transforms raw hides and skins into leather for manufacturing articles like shoe-upper, bag, suitcase, belt, wallet and jacket. In the past, leather processing was done manually using certain indigenous chemicals. The beginning of the Tannery The first tannery in Bangladesh territory was set up at Narayanganj by RP Saha in the 1940s. It was later shifted to Hazaribag area of Dhaka, which turned into a location that now accommodates a large number of tannery units. During the period before Partition of Bengal (1947), almost all the raw hides and skins available in East Bengal were exported to west Bengal, particularly to Calcutta and processed there. In fact the tannery industry of Bangladesh originated after its relocation from Narayanganj to Hazaribagh in Dhaka in 1951. At that time there were 54 tanneries in the country and out of those 30 belonged to the Pakistani owners. Development of tannery industry in East Pakistan started after the Partition with an influx of tanners displaced from India and subsequently, with the establishment of subsidiaries of some companies of West Pakistan. The tanning industry in East Pakistan and export of leather from the province were mainly in the hands of the non-Bengali people. A few tanning units, however, belonged to Bengali entrepreneurs but they were small and of cottage type and they used to process leather mainly for the domestic markets. Most non-Bengali tanners processed wet-blue and sent the product to West Pakistan where it was further processed and finished for producing different consumer goods. Till 1960, tanneries of East Pakistan used to process raw hides and skins applying salt and then drying them in the sun and the material thus developed was known as shaltu. Post Liberation Period During the war of liberation in 1971 the non-Bengali tanners of Bangladesh left the country abandoning about 30 tannery units owned by them. After the war, the new government of Bangladesh vested the management of these units on a newly formed Tannery Corporation, which was expected to convert them into finished leather manufacture units. Unfortunately, the corporation did not serve the purpose because of lack of experience and other reasons including corrupt practices. Later, the government relinquished the Tannery Corporation and handed over the management of most of these tanneries to Bangladesh Chemical Industries Corporation (BCIC). Three of them were given to Bangladesh freedom fighters welfare trust. Both the authorities had miserably failed to manage the tanneries. In 1982, the government transferred them to private entrepreneurs in pursuance of its general policy of disinvestments, which had allowed some enterprising Bengalis with little or no experience in the industry to start wet-blue production. Present Condition At present, the leather sector of Bangladesh has 220 processing units located at different parts of the country (mainly in Dhaka) as follows: Dhaka (Hazaribag) Dhaka (Dhamrai/Savar) Gazipur (Kaliakoir) Jessore (Noapara) Chittagong

194 3 1 1 18

units ” ” ” ”

Jamalpur Rangpur Khulna

1 1 1

” ” ”

Total : 220 units Only about 50% of the above units are well equipped for processing crust and finished leather. But only 28 tanneries are in operation, among them 20 are operating in crust section and 8 are in finishing section. According to the records of the Bangladesh Tanners Association, about 3,000 workers are employed in the tanning industry. Besides, there are about 100 qualified technologists including foreign nationals who are working in different tanneries. Total capital invested in the tannery industry is estimated at Tk 2.5 billion, of which government/bank finance is about Tk 1.2 billion. About 1,500 persons are involved in the process of collecting raw hides and skins and making them available at tannery units. About 100 organizations import chemicals for use in tannery industry. Some reputed tanneries of Bangladesh are Dhaka Leather, Apex Tannery, Lexco, Karim Leather, Samata Tannery and Bay Tannery. Production Leather Sector in the Economy of Bangladesh The Leather sector plays a significant role in the economy of Bangladesh in terms of its contribution to export and domestic market. Bangladesh currently produces about 20.0 million sq. meters of leather and leather goods per year. The total production of leather and leather goods shows an increasing trend over the years. Beginning with the 1993/94, the production increased from 14.60 in 1993/94 million sq. meters to 15.90 million sq. meters in 1995/96. It fell to 11.95 million sq. meters in 1996/97. Since 1996/97, there has been a steady increase in the production of leather and leather goods that reached 19.91 million sq. meters in 2000/2001. The following table shows the production of leather and leather goods in the country. Leather sector is perceived to be one of the important economic sectors in Bangladesh. As a single sector of the economy, the sector contributes modestly to the country’s GDP. Contribution of leather sector (hide &skin, leather and leather goods, and footwear except rubber) to GDP is 0.31 (at constant price) in FY 2003. Table 4.1: Production of Leather & Leather Goods Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2003 2004 Source:

Unit (Million Sq. Meter) 14.60 15.00 15.90 11.95 12.12 16.21 18.31 19.91 17.30 22.85* 20.78** Bangladesh Economic Survey, Ministry of Finance, 2002

*Leather Sector Census Study, LSBPC, 2005 **Approximate Data from LSBPC The quantum index of leather and leather goods production increased to 131 in 1998/99 compared to the base year (1988/89=100) and that of leather footwear production rose to 193 for the same period. It is therefore evident that leather is increasingly being used in the production of footwear. The following table shows the trend of production of leather and leather footwear during the 1990/91 through 1998/99 period. Table 4.2 : Quantum Index of Leather and Leather Goods and Leather Footwear (Base: 1988/89=100) Production Index Leather & Leather Goods Leather Footwear 1990-91 84.34 100.03 1991-92 92.97 100.07 1992-93 108.72 110.93 1993-94 123.44 139.48 1994-95 126.77 161.76 1995-96 133.85 174.46 1996-97 100.84 185.95 1997-98 102.25 123.17 1998-99 136.76 192.84 1999-00 154.41 186.71 2000-01 165.85 216.67 2001-02 146.37 229.47 Source: Statistical Year Book of Bangladesh 2002, Bangladesh Bureau of Statistics Year

Table- 4.3 : Yearly production of Leather Sector by Different Enterprises/Firms Firm Types

Total Production

Wet blue (000 sqf.)

35060

Crust (000 sqf.)

66172

Finished (000 sqf.)

134820

Leather Footwear (000 pairs)

16766

Leather Goods (000 pcs.)

766

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005 Table 4.4: Leather Production of the renowned Tanneries of Bangladesh: Name of Organization

the Annual Production Product (SFT/Month) Crust, Printed Bag, Semi Aniline, Apex Tannery 1700,000 C\G Glaze Kid Crust, Resin Coat, Semi Aniline Bay Tannery 600,000 C\G, Lining, Brush Off, Crust, Semi Aniline C\G, Glaze SAF Industries 600,000 Mild, Lining, C/G, Box Sandle, Semi Aniline, Bata Shoe co (BD) ltd 400,000 Creasy Horse, Lining Polishable Finish, Crust, Semi Bengal Leather Complex 500,000 Aniline, Dhaka Hide & Skins 1400,000 Crust, Milled Bag, Repolisable, S/A Crust, Glaze Kid, C/G, Resin Goat, H&H /H.B Tannery 500,000 S/A, Lining Phoenix Leather 400,000 Crust, C\G, S\A Karim Leathers 500,000 Crust, S\A Lexco Ltd. 200,000 C\G, S\A Samina Tannery 500,000 Crust, S\A Riff Leather 200,000 Crust, C\G, S\A Modina Tannery 150,000 Crust, S\A Reliance Tannery 600,000 Re polish able, Crust, B.S Leather 200,000 Re polish able, Crust, Progoti Leather Complex 500,000 Crust Vulua Tannery 600,000 Crust Kalam Brothers 300,000 Crust Amin Tannery 200,000 Crust Anwer Tannery 200,000 Crust Cottege Customer 1000,000 Crust, Repolishable, S/A Total 11250,000 SFT/MONTH Total Annual Production: 135,200,000 SFT/Year Total Crust Production = 101,400,000 SFT/Year Total Finish Production = 33,800,000 SFT/Year Source: Shajedul Alam, Internship Report, June 19, 2004, Institute of Business Administration, University of Dhaka;

Table4.5: Availability of Raw Materials

Cow & Buffalo

184 Mio Sq.Ft.

Goat & Sheep

63 Mio Sq.ft

Total:

247 Mio Sq.Ft

Source: Magazine, Dhaka International Leather Fair 2005 Table 4.6: Number of Animal Population in Bangladesh (thousand head) Types 1990 Bovine Animal 24016 Sheep and Lambs 873 Goats and Kids 21031 Source: FAO, 2003 Leather Export

1995 24859 1070 30330

1996 24433 1124 33312

1997 24816 1158 34478

1998 24220 1110 33500

1999 24480 1121 33800

2000 24730 1132 34100

2001 24830 1143 34400

2002 (est.) 24830 1143 34400

Leather Export Performance of Bangladesh: The ever highest export performance was achieved in 2000-2001 due to the mad cow disease in EU but after 11th September incident, the declining trend cannot be prevented due to the less value addition capability and non-sustainable nature of the leather sector industry of Bangladesh. The export performance of Bangladesh after 1999 is shown in table4.1. The Leather export is almost 2.5 percent to the total export of Bangladesh. Table 4.2 shows how the percentage of leather export to the total export is decreasing year after year. Table 5.1: Export performance: From July 1999 Leather (Mn. US$) 246.89 290.68 252.49 229.72 211.41 220.93

July 1999- June2000 July 2000- June2001 July 2001- June2002 July 2002- June2003 July 2003- June2004 July 2004- June2005 Export Target for 235.00 July 2005- June2006 Export Performance for July 84.37 2004-Nov 2005 Export Performance for July 96.21 2005-Nov 2006

% Increase or Decrease +17.76% -13.13% -9.01% -7.97% +4.50%

+14.03%

Source: Export Promotion Bureau of Bangladesh.

Fig 5.1: Year Wise Leather Export of

Bangladesh 300 250 200 Export 150 (Mn. US$) 100 50 0

1999- 2000- 2001- 2002- 2003- 20042000 2001 2002 2003 2004 2005

Table 5.2: Percentage of the Leather Export to the Total export of Bangladesh: (Value in million dollar) Year

Total Export

1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

5312.86 5752.20 6467.30 5986.09 7602.99 8654.52 10159.20*

Leather, Leather Leather, Leather Footwear and Leather Footwear and Leather Goods export Goods as % of Total Export 219.39 4.39 246.89 4.30 290.68 4.50 252.49 4.22 229.72 211.41 2.78 220.93 2.55 235.00* 2.31

Source: Export Promotion Bureau of Bangladesh (EPB) *Export Target Hong Kong, Korea Rep., Italy, Japan are the main export destinations of the leather goods of Bangladesh. Though the Leather export performance of Bangladesh is decreasing day by day but still some countries like China, Taiwan, Vietnam are showing their interest to import more leather goods from Bangladesh. In comparison to India and Pakistan the export performance of Bangladesh shows a very uncomfortable figure. The main reason for that is the infrastructure of the sector. Although the RMG sector of Bangladesh is booming even after the post MFA era, foreign investors are not showing interests to invest in the leather sector of Bangladesh. Even the local investors are not interested to invest in leather sector, though there are lots of places Bangladeshi investors can invest easily. Table 5.3: Country Wise Export of leather and Leather Goods during the period of July2004 – March 2005: Value in ‘000’ US$

Country Export Country Export Argentina 5 India 1679 Australia 279 Indonesia 153 Austria 2 Italy 29791 Belgium 65 Japan 10723 Benin 21 Korea DPR. 39 Brazil 745 Korea Rep. 20151 Cambodia 426 Local Sale 540 Canada 35 Mexico 1123 China 6049 Myanmar 21 Czech Rep. 5 Netherlands 634 East Timor 13 Norway 37 El Salvador 50 Oman 10 Finland 1 Pakistan 62 France 753 Philippines 166 Germany 189 Poland 3767 Greece 26 Portugal 51 Hong Kong 54584 Qatar 6 Hungary 4 Samoa 5 Total 158621 Source: Foreign Trade Statistics of Bangladesh, 2001-200

Country Saudi Arabia Singapore S. Africa Spain Sri Lanka Taiwan Thailand Turkey U.A.E U.K U.S.A Ukraine Uruguay Venezuela Vietnam

Export 2 137 243 5701 11 7953 742 8 23 1059 645 69 575 40 8681

Table 5.4: Export of Leather, Leather Footwear and Leather Goods Million US$ Year

Leather

Leather Footwear

Export

% of Export Total 1998-1999 168.25 76.69% 46.55 1999-2000 195.05 79.00% 48.26 2000-2001 253.93 87.36% 33.63 2001-2002 207.33 82.1% 41.29 2002-2003 191.23 83.2% 35.06 2003-2004 211.41 79.50% 50.86 Bangladesh Export Promotion Bureau

% of Total 21.22% 19.55% 11.57% 16.4% 15.3% 19.13%

Leather Goods Export 4.59 3.58 3.12 3.87 3.43 3.64

Total

% of Total 2.09% 219.39 1.45% 246.89 1.07% 290.68 1.5% 252.49 1.5% 229.72 1.37% 265.91

Sales and Exports of Leather sector Enterprises/Firms Table show that during January-December 2003, the collective sales of the leather sector firms stood at Tk.23045 million. Of the total sales of the firms, over 75 percent are sold outside the country. Leather processing units exported most of their products that accounted for about 85 percent of their total sales revenue during 2003. Footwear manufacturing firmsâ&#x20AC;&#x2122; sales revenue from exports accounted for about 40 percent of their total revenue. Leather goods manufacturing firms exported its entire volume of production during 2003. Table 5.5 : Yearly Value of Sales and Exports by Types of Firms (Tk 000) Firm Types

Sales (Local)

Exports

Total Sales

Leather Processing

2847600

15622354

18429954

Leather Footwear

2456349

1682140

4138489

Leather Goods

437389

Total

5303949

17741883

23005832

Note: Data for the period Jan.-Dec.2003. Table 5.6 : Yearly Value of Sales and Exports by Types of Firms (%) Firm Types

Sales (Local)

Exports

Total Sales

Leather Processing

15.42

84.58

100

Leather Footwear

59.35

40.65

100

Leather Goods

100

Total

23.01

76.99

100

Source: Leather Sector Census Study, LSBPC, 2005 Sales and Exports: Leather Processing Leather processing firmsâ&#x20AC;&#x2122; sales value stood at about Tk.18470 million during January-December, 2003 (Table 4.7). Exports revenue accounted for about 88 percent from the crust leather and over 97 percent from the finished leather produced by the leather processing enterprises. Except for an insignificant volume, most wet-blue leather is locally used for the production of crust/finished leather. The survey data show that as a

whole about 85 percent products of the leather processing firms are exported and total export value stood at Tk. 15622 million (during JanuaryDecember 2003). Table5.7 : Annual Volume of Sales and Exports by the Leather Processing Firms (in 000 sqf.) Product Category

Local Sales Direct

Wet Blue

Through Agent

Total Local Sales

Total Exports

Total Sales Volume in sf.

35060

Crust

5281

3400

8681

57491

66172

Finished

4814

130006

134820

Through Agent

Total Local Sales

Total Exports

Total Sales Volume (in Tk. 000)

Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005 Table 5.8: Yearly Sales and Exports by the Leather Processing Enterprises/Firms (Tk000)

Products category

Local Sales Direct

Wet Blue

1959300

Crust

318850

220000

538850

4141826

4680676

Finished

349450

11440528

11789978

2847600

15622354

18429954

Total Exports

Total Sales value

0 88.49 97.04 84.58

100 100 100 100

Total 2627600 220000 Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005

Table 5.9: Annual Value of Sales by the Leather Processing Enterprises/Firms (%) Products category Local Sales Total Local Sales Direct Through Agent Wet Blue 100.0 0 Crust 6.81 4.70 Finished 4.58 0 Total 18.36 1.54 Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005

100.0 11.51 2.96 15.42

Sales and Exports: Footwear Still over 50 percent of the footwear manufacturing enterprises’ production is locally consumed. Total local sales stood at Tk.2456 million for the period January-December 2003. Export sales of the footwear firms for the period were Tk.1682 million. Table 5.10: Yearly Sales and Exports by the Leather Footwear Enterprises/Firms Local Sales Direct Through Agent 843550 0 0 245634 0 9

Volume (pair) Value in Tk.’000

Total Local Sales

Total Exports

843550 0 245634 9

830975 0 168214 0

Total Sales 16745250 4138489

Note: Data for the period Jan.-Dec.2003. Table5.11: Annual Sales and Exports by the Leather Footwear Firms (%) Local Sales Direct

Through Agent

Total Local Sales

Total Exports

Total Sales

Volume (pair)

50.38

49.62

100

Value in Tk.’000

63.39

59.35

40.65

100

Source: Leather Sector Census Study, LSBPC, 2005

Sales and Exports: Leather Goods All leather goods manufacturing firms (covered under census) are export oriented. Their total sales volume, which is same as their exports, stood at Tk.437 million during the period January-December 2003. Table5.12- Yearly Sales and Exports by the Leather Goods Enterprises Local Sales Direct Volume (pcs)

Total Through Agent Local Sales

Total Exports

Total Sales

764100

437389

Value in Tk.â&#x20AC;&#x2122;000 0 0 Note: Data for the period Jan.-Dec.2003. Source: Leather Sector Census Study, LSBPC, 2005

Table 4.3 showed the country wise export figure of Bangladesh and the Table 4.13 shows how country wise export figure changed during 2000-2003 to 2003-2004. Table 5.13: Country wise changes in Export of Leather: (Value in `000â&#x20AC;&#x2122; US$) 2002-2003

2003-2004

Countries Value

% of Total

Value

% of Total

Hongkong Italy Koria Rep. Japan Taiwan Vietnam Spain China Mexico UK France USA Germany Others Total

69039 38621 13736

36.10 20.20 7.18

72026 43601 19779

34.06 20.62 9.36

15029 11556 4928 6821 5932 2027 1507 1779 983 818 18450 191226

7.86 6.04 2.58 3.57 3.10 1.06 0.79 0.93 0.51 0.43 9.65 100.00

15188 11850 11500 9709 7655 2160 1228 1106 631 549 14430 211412

7.18 5.61 5.44 4.59 3.62 1.02 0.58 0.52 0.30 0.26 6.84 100.00

Source: EPB Export Statistics

Name of the Company Legacy Footwear Ltd. Jennys Shoes Ltd. Picard Bangladesh Ltd. Leatherex Footwear Ltd. H.N Shoes Ltd. Cosmic Jute & Leather Ind. Ltd. Shampan Shoes Ltd. Savar Ind. Pvt. Ltd. Bangladesh Export Ltd. Landmark Footwear Ltd. Vannara Corporation Ltd. RMM Leather Ind. Ltd. Apex Leather Craft Fashion Bani Footex Bay Footwear Advanced Ind. Management Co. Ltd. Malim BD. Co. Ltd. MAMC Surma Leather & Footwear Ind. Ltd. Sonali Ansh Ind. Ltd. Apex Footwear Ltd. Legacy Footwear Ltd. Hara Leather Rexus Leather Club Crown Leather Products Ltd. Creative Products Anowara Leather Tropical Shoes Ltd.

Value in US$ 5508573.5 3775499.81 3130611.97 1631819.61 1054264.91 884406.75 771231.60 507352.22 432373.06 221137.63 219053.3 164923.28 149779.03 131864.3 131660 103890.61 85356.65 84174.50 74735.5 68737.68 63310 61119.88 46843 40270 29219 27365 14520 7560

Table 5.14: Company wise Export of Leather Goods & Footwear from Bangladesh (Export Period: 01/01/2005 ~ 24/11/2005) Source: Leather goods & Manufacturers & Exporters Association of Bangladesh. Raw Materials Raw Materials used by the Leather Firms From the survey data it is transpires that raw materials used by the leather sector firms are procured mainly from local market. Except for an insignificant proportion, almost all raw materials of wet blue i.e. raw hides are collected from the local sources. Raw materials for crust leather and finished leather are wet-blue and crust respectively. About 99 percent of the raw materials of wet blue, crust and finished leather are sourced locally. Of the broad categories of leather firms, footwear sector used highest proportion of raw materials (includes finished leather, lining leather sole, etc.) from external sources, which is 3.13 percent of the total used by the sector.

Table 6.1 -: Yearly Raw Materials used in the Leather Sector to produce different types of product (in Tk.000) Types of Product

Name of Raw materials

Local

Foreign

Total

Wet blue

Raw hides

1276262

5040

1281302

Crust

Wet blue

2756629

41300

2786474

Finished

Crust

7428519

34000

7462519

Footwear

Finished, lining leather, Sole etc.

1146399

38236

1184635

90466

Leather Goods Finished & lining leather Source: Leather Sector Census Study, LSBPC, 2005

Table 6.2 -: Yearly Raw Materials used in the Leather sector by types (%) Types

Name of Raw materials

Local

Foreign

Total

Wet blue

Raw hides

99.60

0.40

100

Crust

Wet blue

98.93

1.07

100

Finished

Crust

99.54

0.46

100

Footwear

Finished, lining leather, Sole etc.

96.77

3.23

100

Leather Goods Finished & lining leather Source: Leather Sector Census Study, LSBPC, 2005 Raw Materials: Leather Processing

Leather processing units or tanneries produce wet-blue, crust, and finished leather. In producing wet-blue and crust, the firms use raw hides and wet-blue as raw materials respectively. Crust leather is used as raw materials for producing finished leather Raw Materials for Wet Blue Raw hides used for producing wet-blue are mainly procured from local sources. Locally, raw hides are collected mainly from leather depot located at Dhaka, Chittagong, Comilla, Kustia, Natore and Rangpur. Only an insignificant volume of camel hide is imported from external sources. South Africa was the only source of camel hide imports in 2003. Table 6.3 : Yearly Raw Materials used for Producing Wet Blue Local

Foreign

Total

Hide and Skin

Quantity (000pcs)

Value in Tk.000

Quantity (pcs)

Cow

856

1074032

Value in Tk.000 Quantity (000pcs) 0 856

Buffalo

107

88835

107

88835

Goat

1035

97495

1035

97495

Sheep

115

12034

115

12034

Cow/Buffalo head

3866

Camel

5040

2158

1281302

Total 2154 1276262 Source: Leather Sector Census Study, LSBPC, 2005

Table 6.4 : Yearly Raw Materials used for Producing Wet Blue (%) Raw materials for WetLocal Value blue (%) Cow 100 Buffalo 100 Goat 100 Sheep 100 Cow/Buffalo head 100 Camel 0 Total 99.60 Source: Leather Sector Census Study, LSBPC, 2005 Raw Materials for Crust

Foreign Value (%) 0 0 0 0 0 100 0.40

Total Value (%) 100 100 100 100 100 100 100

Total Value Tk.000 1074032

Wet blue, raw materials for producing crust is mainly collected from local sources particularly from Dhaka. A small quantity of wet-blue to prepare crust leather is collected from Chttagong and Jessor. Very insignificant volume of raw materials is imported. In 2003, only about 1.5 percent of total raw materials (wet blue cow and camel) were imported from South Africa, Australia, and Brazil. Table 6.5 : Yearly Raw Materials used for Producing Crust Leather Local Raw materials for Quantity crust (000sqf) Cow 23358

Foreign Quantity Value in Tk.000 (000 sqf) 1524583 530

33300

Total Quantity (000sqf) 23888

Value in Tk.000

Total Value Tk.000 1557884

Buffalo

11210

447936

11210

444480

Goat

11016

603330

11016

603330

Sheep

1848

161580

1848

161580

Others

240

19200

240

19200

Camel

100

8000

100

8000

41300

48302

2786474

Total 47672 2756629 630 Source: Leather Sector Census Study, LSBPC, 2005 Table 6.6: Yearly Raw Materials used for Producing Crust (%)

Cow

Local Value (%) 97.86

Foreign Value (%) 2.14

Total Value (%) 100

Buffalo

100

Goat

100

Sheep

100

Others

100

Camel

100

Total

98.52

1.48

100

Raw materials for crust

Raw Materials for Finished Leather Crust leather used for producing finished leather is also collected mainly from local sources. Only a very insignificant volume of cow crust is imported to produce finished leather. In 2003, cow crust was imported from Australia valued Tk.34 million. Table 6.7 : Yearly Raw Materials used for Producing Finished Leather Local Raw materials for finished Quantity (000sqf) Cow Crust 55488

4396440

Foreign Quantity (000 sqf) 400

Total Quantity Value in Tk.000 (000sqf) 34000 55888

Value in Tk.000

Total Value Tk.000 4396840

Buffalo Crust

8822

494124

8822

494124

Goat Crust

23019

1979055

23019

1979055

Sheep Crust

5412

558900

5412

558900

400

34000

93141

7462519

Total 92741 7428519 Source: Leather Sector Census Study, LSBPC, 2005 Table 6.8 : Yearly Raw Materials used for Finished Leather (%) Raw materials finished Cow Crust

for Local Value (%) 99.23

Foreign Value (%) 0.77

Total Value (%) 100

Buffalo Crust

100

Goat Crust

100

Sheep Crust

100

Total

99.55

0.45

100

Raw Materials: Footwear

Other than finished leather, some other raw materials as lining leather, artificial sole, insole-leather etc. are used in producing footwear by the footwear-manufacturing firms. Footwear manufacturing units imports comparatively greater volume of raw materials (as compared to leather processing and leather footwear sector) from external sources. Footwear manufacturing units imported over 3 percent of their total raw materials amounted to about Tk. 38 million during January to December 2003. Sources for local raw materials are mainly Dhaka and Chittagong. Of the external sources, finished leather is mainly collected from Pakistan and China. Artificial sole is imported mainly from India, Indonesia, China and Taiwan, and lining leather is collected mainly from China, Taiwan and Pakistan. China, India and Italy are the major sources of in-sole leather. Some footwear raw materials are also imported from Canada, France and Germany. Table 6.9: Yearly Raw Materials used for Producing Footwear Local Name of raw materials for footwear Quantity sqf. 000 Finished Leather

9932

Foreign Quantity Value in Tk. 000 sqf. 000 823434 225

Total

Lining Leather

2944

134023

506

8960

3450

142983

Artificial Sole

1806

155317

855

3266

2661

158583

In-sole Leather

639

33063

660

684

33723

Others

562

Total

15328

1146399

1631

38236

16959

1184635

Value in Tk. 000 25350

Total quantity

Total value Tk. 000

10157

848784

Table6.10 : Raw Materials used for Footwear (%)

Finished Leather

Local Value (%) 97.01

Foreign Value (%) 2.99

Total Value (%) 100

Lining Leather

93.73

6.27

100

Artificial Sole

97.94

2.06

100

In-sole Leather

98.04

1.96

100

Others

100

Total

96.77

3.23

100

Raw materials for Footwear

Source: Leather Sector Census Study, LSBPC, 2005 Raw Materials: Leather Goods The leather goods producing firms that are very few in number use basically finished leather and lining leather as raw materials. The value of the raw materials used by the leather goods manufacturing units constitute less than 8 percent of the raw materials used by the footwear manufacturing units. All of the raw materials of the leather goods manufacturing firms are collected from local sources. Table 6.11: Yearly Raw Materials used for Producing Leather Goods Local Raw materials for crust Quantity (000sqf) Finished Leather 1365

87366

Foreign Quantity (000 sqf) 0

Value in Tk.000

Lining Leather Total

Value Tk.000 0

3100

1415

90466

1415

90466

Source: Leather Sector Census Study, LSBPC, 2005 Availability of raw material in Bangladesh Table 6.12 Cow/Buffalo/Calf Goat/Sheep

Total Number (Head) 24.31 million 32.70 million

Hides & (piece) 5.31 million 19.70 million

Skins Hides & Skins (Sq.ft) 116.00 million 64.00 million

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO Table6.13 Availability of raw material (Division wise) (Piece) Dhaka Cow/Buffalo/Calf 13,78,700 Goat/Sheep 39,40,000

Chittagong 12,60,500 43,37,000

Rajshahi 15,90,800 55,16,000

Khulna 10,72,700 59,07,000

Total 53,02,700 1,97,00,000

Total inQuantity (000sqf) 1365

Total Value Tk.000 87366

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO SWOT Analysis Strengths Strengths of the Firms: Leather Processing The SWOT analysis is based on the opinions of the leather sector firms. The survey reveals that ‘higher productive capacity’ is the main strength of the maximum number of firms of the leather processing industry. Main strengths of the leather processing industry as identified by the leather processing firms in the survey are as follows: Table 7.1: Strengths of the Leather Processing Firm Strengths

Percent of Total Firms

Production capacity

70%

Competitive price

67%

Cheap Labour

66%

Market Information

56%

Better management

54% Strengths: Leather Processing

80 70 % of Total Firms

60 50 40 30 20 10 0 Production capacity

Competitive price

Cheap Labour

Market Information

Better management

Major Strengths

Figure: 7.1 Strengths of the Leather Processing Firms With high installed capacity and better utilization of that capacity, firms can economize on the costs and offer competitive price. It is recognized that the element of competitive price is related to productivity and cost of production. Hence firms with better productive capacity can offer better price to their clients. Generally, productivity of the big firms is expected to be higher than that of smaller firms with low productive capacity. Availability of cheap labour is another common advantage in the leather processing. This sector is relatively more labour-intensive than other two sectors (footwear and leather goods). Strengths of the Firms: Leather Footwear As is leather-processing industry, ‘higher productive capacity’ is the main strength of the maximum number of firms operating in the footwear industry. The major strengths of the firms as identified in the survey (as opined by the firms) are as follows: Table 7.2: Strengths of the Leather Footwear Firm Strengths

Percent of Total Firms

Production capacity

74%

Better quality of management

66%

Sufficient supply of processed leather

65%

Trained manpower

60%

Quality Control

58%

% of Total Firms

Strengths: Footwear 80 60 40 20 0 Production capacity

Better management

Supply of processed leather

Trained manpower

Quality Control

Major Strengths Figure: 7.2 Strengths of the Leather Footwear Manufacturers Footwear firms appear to have emphasis on the quality of management of the firms. Adequate supply of processed leather (from the leather processing firms) is the third most important factors that determine the strength of the footwear firms. Quality control appears to have provided competitive advantages to a good number of firms. Strengths of the Firms: Leather Goods Better management quality, and quality control came up as the main strengths of the leather goods producing firms. A list of major strengths of the footwear manufacturing firms as identified in the survey (as opined by the firms) are presented in table 7.3. Table 7.3: Strengths of the Leather Goods Firm Strengths

Percent of Total Firms

Better management Quality

71%

Quality control

69%

Sound environmental management

64%

Market information

60%

Production Capacity

48%

Strengths: Leather Goods

80 70 % of Total Firms

60 50 40 30 20 10 0 Better management

Quality control

Environmental management

M arket information Production Capacity

M ajor Strengths

Figure: 7.3 Strengths of the Leather Goods Manufacturers As in case of footwear, leather goods manufacturing firms also appear to put considerable emphasis on better management quality and quality control. Environmental management and market information have also been identified by considerable percentages of firms as may be expected from a hundred percent export oriented industry. Weaknesses Weaknesses of the Firms: Leather Processing Size of the firms and financial crisis are found to be the main weaknesses of the firms operating in the leather processing industry. The major weaknesses of the firms as identified in the survey (as opined by the firms) are as follows: Table 7.4: Weaknesses of the Leather Processing Firm Weaknesses

Percent of Total Firms

Low Volume of Production

82%

Financial Crisis

80%

Weak Marketing

64%

Inefficient Management

46% Weaknesses: Leather Processing

% of Total Firms

100 80 60 40 20 0 Low Volume of Production

Financial Crisis

Weak Marketing

Inefficient Management

Major Weaknesses Figure: 7.4 Weaknesses of the Leather Processing Firms In global context the smaller leather processing firms produce lower quantity that precludes them in attaining economies of scale. Generally, leather-processing firms face financial difficulty and have no marketing strategy. Of the leather processing firms, 46 percent identified inefficient management as one of their main weaknesses. Weaknesses of the Firms: Leather Footwear ‘Financial Crisis’ is found to be the main weakness of the leather footwear industry. The major weaknesses of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.5: Weaknesses of the Footwear Firm Weaknesses

Percent of Total Firms

Financial Crisis

92%

Weak Marketing

86%

Low Volume of Production

84%

Uncompetitive Product Price

80%

% of Total Firms

Weaknesses: Leather Footwear 95 90 85 80 75 70 Financial Crisis

Weak Marketing

Low Volume of Production

Uncompetitive Product Price

Major Weaknesses Figure: 7.5 Weaknesses of the Leather Footwear Manufacturers Generally, footwear firms face financial difficulty and lack effective marketing strategy. Size of the firms in global context is smaller which is a notable obstacle in achieving economies of scale and offering competitive price. Weaknesses of the Firms: Leather Goods In line with leather footwear, ‘financial Crisis’ is found to be the main weakness of the leather goods manufacturing industry. The major weaknesses of the leather goods firms as identified in the survey (as opined by the firms) are as follows:

Table 7.6: Weaknesses of the Leather Goods Manufacturing Firm Weaknesses

Percent of Total Firms

Financial Crisis

88%

Weak Marketing

87%

Low Volume of Production

87%

Uncompetitive Product Price

74%

Weaknesses: Leather Goods

% of Total Firms

90 85 80 75 70 65 Financial Crisis

Weak M arketing

Low Volume

Uncompetitive Price

M ajor Weaknesses

Figure: 7.6 Weaknesses of the Leather Goods Manufacturers About 90 percent leather-goods manufacturing firms have identified ‘financial difficulty’ as their one of the major weakness. The firms also lack effective marketing strategy. Size of the leather goods firms in global context is smaller which is a notable obstacle in achieving economies of scale and offering competitive price. Opportunities Opportunities of the Firms: Leather Processing ‘Cheap Supply of Labour’ is found to be the main aspect the opportunities the leather processing firms enjoy. The major aspects of opportunities of the leather processing firms as identified in the survey (as opined by the firms) are as follows: Table 7.7: Opportunities of the Leather Processing Industry Opportunities

Percent of Total Firms

Cheap Supply of Labour

82%

Sufficient Supply of Hide and Skin

64%

Stable Global Demand

62%

Favourable Business Environment

60%

Conducive Industrial Policy

58%

Conducive Industrial Policy

Favourable Environment

Stable Global Demand

Sufficient Supply of Hides

100 80 60 40 20 0 Cheap Supply of Labour

% of Total Firms

Opportunities: Leather Processing

Major Aspects Figure: 7.7 Opportunities of the Leather Processing Firms It is obvious that availability of cheap labour can provide considerable cost advantage to the firms of a particular area/location. Leather Processing firms located in Bangladesh have been availing the opportunity. Supply of raw materials, global demand of the footwear, and business environment are also found to be positive from the firms’ point of view. Opportunities of the Firms: Leather Footwear

‘Stable glocal demand’ is found to be the main aspect of the opportunities the footwear firms currently have. The major aspects of opportunities of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.8: Opportunities of the Footwear Industry Opportunities Stable Global Demand

Percent of Total Firms

Conducive Industrial Policy

58%

Favourable Business Environment

57%

Cheap Supply of Labour

51%

Duty Free Access in Major Markets

51%

60%

% of Total Firms

Opportunities: Footwear 65 60 55 50 45 Stable Global Demand

Conducive Industrial Policy

Favourable Environment

Cheap Supply of Access in Major Labour Markets

Major Aspects Figure: 7.8 Opportunities of the Leather Footwear Manufacturers The footwear firms found the current stable global demand condition for the Bangladeshi footwear is a major aspect of opportunity on the way towards expanding export markets for footwear. The industrial policy and business environment are found to be positive for them and availability of cheap labour is an added advantage. Opportunities of the Firms: Leather Goods The ‘Industrial Policy’ is found to be positive for the leather goods manufacturing firms. The major aspects of opportunities of the leather-goods firms as identified in the survey (as opined by the firms) are as follows: Table 7.9: Opportunities of the Leather Goods Industry Opportunities Conducive Industrial Policy

Percent of Total Firms

Favourable Business Environment

60%

Cheap Supply of Labour

58%

Stable Global Demand

58%

Duty Free Access in Major Markets

51%

66%

% of Total Firms

Opportunities: Leather Goods 80 60 40 20 0 Conducive Industrial Policy

Favourable Environment

Cheap Supply of Labour

Stable Global Access in Major Demand Markets

Major Aspects

Figure: 7.9 Opportunities of the Leather Goods Manufacturers

The industrial policy and business environment, and cheap supply of labour are found to be advantageous for the leather goods manufacturing industry, as opined by most firms of the industry. Current global demand condition appeared to be favourable for these firms. Threats Threats to the Firms: Leather Processing ‘Disruption of electricity’ is found to be the main aspect of threat to the leather processing firms of Bangladesh. The major aspects of threats of the leather processing firms as identified in the survey (as opined by the firms) are as follows: Table 7.10: Threats for the Leather Processing Industry Threats Disruption of Electricity

Percent of Total Firms

Hartals, strike, and other disturbances

72%

Unstable Policy Environment

68%

External Competition

64%

Lack of Trained Labour

62%

Environment consciousness in Importing Countries

60%

Shortage of Water Supply

58%

74%

% of Total Firms

Threats: Leather Processing 75 70 65 60 55 Disruption of Electricity

Hartals, strike, and other disturbances

Unstable Policy Environment

External Competition

Lack of Trained Labour

Major Aspects Figure: 7.10 Threats of the Leather Processing Firms Practically, ‘disruption of electricity’ and ‘hartal strike etc.’ are very common aspects of threats facing by the industry sector of the country in general. Inadequate infrastructural facilities like insufficient supply of electricity and shortage of water supply affect optimum capacity utilization, volume of production, and destroy cost advantage. Such problem is particularly threatening in an atmosphere of growing global competition. Moreover, environment consciousness in importing countries mainly in the developed world is the cause of concern for the exporting countries like Bangladesh where environmental issues are not strongly addressed both in firm and policy level. Moreover, Firms also do not get sufficient trained people. Threats to the Firms: Leather Footwear As in leather processing sector, ‘disruption of electricity’ is found to be the main aspect of threat to the footwear firms of Bangladesh. The major aspects of threats of the footwear firms as identified in the survey (as opined by the firms) are as follows: Table 7.11: Threats for the Footwear Industry Threats Disruption of Electricity

Percent of Total Firms

Hartals, strike, and other disturbances

68%

External Competition

68%

Environment consciousness in Importing Countries

60%

Shortage of Water Supply

58%

74%

Shortage of Water Supply

Environment consciousness

Hartals, strike etc

External Competition

80 70 60 50 40 30 20 10 0 Disruption of Electricity

% of Total Firms

Threats: Footwear

Major Aspects

Figure: 7.11 Threats of the Leather Footwear Manufacturers Inadequate infrastructure facilities like insufficient supply of electricity and shortage of water supply are among the major causes of concern for the footwear firms. Growing external competition and environment consciousness in the importing countries may affect the export market of the footwear firms in coming days. Threats to the Firms: Leather Goods In line with the leather processing and footwear sectors, â&#x20AC;&#x2DC;disruption of electricityâ&#x20AC;&#x2122; is found to be the main aspect of threat to the leather goods manufacturing firms of Bangladesh. The major aspects of threats of the leather goods manufacturing firms as identified in the survey (as opined by the firms) are as follows: Table 7.12: Threats for the Footwear Industry Threats Disruption of Electricity

Percent of Total Firms

Lack of Trained Labour

64%

External Competition

62%

74%

60%

Hartals, strike, and other disturbances Environment consciousness in Importing Countries

58%

Environment consciousne ss

Hartals, strike etc

External Competition

Lack of Trained Labour

80 60 40 20 0 Disruption of Electricity

% of Total Firms

Threats: Leather Goods

Major Aspects

Figure: 7.12 Threats of the Leather Goods Manufacturers Other than inadequate supply of electricity, leather goods manufacturing firms face lack of trained labour force to be employed. Growing external competition and environment consciousness in the importing countries may affect the hundred percent export-oriented leather goods sector of the country in near future.

Production Stages Production Stages in Leather Processing Industry

Wet Blue Raw/wet salted Hides & Skins (Sorted & Trimmed)

Crust

Finished

Wet blue Leather

Crust Leather (Natural /dyed)

Splitting

Sorting

Raw/Salted Weighing Samming Washing & Soaking (in drum/ paddle/pit)

Liming (In drum/ /paddle/pit)

Shaving

Shaved weighing

Buffing & Dedusting Impregnation & Drying

Neutralization

Hydraulic Pressing

Retaining/ Dyeing

Rebuffing & Dedusting

Fleshing

Scudding Fat liquoring (in drum) Pelt Weighing

Color Coating (By pad/spray Roller coater)

Setting Drying Deliming (in drum)

Drying (Vacuum/ Tunnel/Natural) Ironing/Embossing

Bating (in drum)

Conditioning (By sawdust/ water) Color Coating (By Sprayer & drying)

Pickling (in drum)

Staking Plating/Glazing Toggle Drying

Tanning (in drum) Trimming

Wet Blue

Crust

Finished

Production Stages in Footwear and Leather Goods Industries

Footwear

Leather Goods

Designing

Pattern Making Designing of Footwear

Pattern Making of Leather Goods

Cutting

1. Selection of Leather/Materials 2. Cutting 3. Splitting 4. Skiving

Closing Finishing Total Finishing Work

1. 2. 3. 4. 5.

Closing

Embossing/ Printing Adhesive Folding Strap cutting Stitching

Finishing Total Finishing Work

Footwear

1. Embossing/ Printing 2. Adhesive 3. Folding 4. Strap cutting 5. Stitching

Leather Goods

Description of the various Stages of Leather Processing: Wet-Blue Section: Name operation Curing/ Preservation Soaking

Liming Unhairing

Washing liming Fleshing

Deliming

Bating

of Objectives

Generic names of Chemicals Required chemicals

Dehydration Restore Moisture original condition

to Soaking Preservatives / Enzymes

and Removing the hair and Liming Auxiliaries opening up of fibre structure for tannage

after Cleaning for fleshing and start delime by thorough washing Removing fat and surplus flesh to give a Cleaner surface for better penetration of the subsequent chemicals Replacing strong alkali, Deliming agents Reducing Swelling

Producing a smooth, clean Bating Agents grain by enzyme action,

Sodium sulfide, sodium hydroxide, sodium tetra sulfide Decaltal types, formic acid, bi sulfite solution, sodium bi sulfite. Sodium sulfide, Sodium hydrosulfide. Hydrated lime powder (calcium hydroxide). Seldom slaked lime (lime paste). Sodium chlorite

Hydrochloric acid, Sulfuric acid, Formic acid, acetic acid, Lactic acid, Boric acid, Ammonium chloride, Sodium meta by sulphate Enzymes, wood flour as carrier substance,

removing proteins Pickling

unwanted

Prepaing pelt for chrome Pickling Agents tanning by acidification

ammonium salts, neutral salts as buffering and deliming agents Formic Acid

Name of Objectives Generic names of Chemicals Required operation chemicals Chrome Tanning Making Leather resistant to Tanning Agents Chrome Tanning Agents, purification, Increasing (chromium(III) salt, ca. Thermal Stability 25 % Cr2O3, ca. 33 % basicity), Aluminium tanning agent( ca. 16 % Al2O3, ca. 50 % basicity.) Combination of Al and Cr ( Ca. 14 % Al2O3, ca. 3.0 % Cr2O3; ca. 20 % basicity.) Other agents: Chromium (acelate, Sulphate, chloride) potassium dichromate etc. Sammying To remove the unbound water so that the hide can be split or shaved with an even or consistent moisture content Splitting To reduce thickness and separate splitting part Shaving The final adjustment for thickness Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF Crust Section: Name of Objectives Generic names of Chemicals Required operation chemicals Neutralization Preparing Tanned leather Neutralizing Agents Sodium Carbonate, Borax for retannage Sodium Bicarbonate, Ammonium Bicarbonate, Sodium (Sulphite, Thiosulphate, acetate, formate), Calcium Formate etc. Retanning Using suitable chemicals Retanning Agents Phenol, Nepthalane, Bfor the final product Napthole, Aromatic Ether requirement Dyeing To impart requisite colour Dyes on leather Fat liquoring To soften the leather Fat Liquoring Untreated oils, fats and Agents waxes Emulsified oils and fats Chlorinated oils and fats Sulfonated oils, fats and fatty alcohols, Oxidation products of oils and fats Name operation Setting Out

of Objectives

Drying Conditioning Staking/Vibration Toggle Drying

Removing wrinkles as much as possible and mechanically held water before drying Removal of water without damaging Leather quality Controlled addition of moisture Soften by separating the fibres Complete the drying under

Generic names of Chemicals Required chemicals

streching condition Removal of irregular edges, damaged portion

Trimming Finishing Section:

Name of operation Sorting

Objectives To examine Quality and select different grades for end products Up gradation of lower grade leather through shaping/ buffing of grain surface Producing the finished film Providing suitable base for better adhesion and makes the leather surface smooth, uniform and impermeable Covering the major proportion of the film thickness and getting skewed between ground and top layer, Sealing from both sides by impermeable ground and top layer Providing required degree of gloss, feel handle and final appearance of the finished leather Providing smooth or embossed/ printed surface with ironing/ plating Mechanically softenning of the semifinised leather Examine quality and allocate each finished piece of grade

Buffing Finishing a.

Ground Coat

Season Coat

Top Coat

Pressing Milling Final Gradation Measuring Source: Leather Sector Census Study, LSBPC, 2005 & Pocket Handbook of Leather Technology, 2004, BASF LEATHER CHEMICALS & ACCESSORIES (Data Collected from Secondary Survey) Chemicals and Accessories: Leather Sector

A number of chemicals are used in the leather processing, footwear manufacturing and leather goods manufacturing units most of which are foreign chemicals. In terms of value, above 87 percent chemicals used by the leather sector firms are of foreign origin. Above 95percent (of the total value) of the chemicals used in the productions of crust and finished leather are foreign. Over 70percent (of the total value) of the chemicals used by the footwear manufacturing are foreign made. Data collected from the secondary sources show that leather goods manufacturing units depend mainly on local chemicals (Table *.2). Table 9.1: Yearly value of Chemicals used by the Leather Sector Firms (by sources)

Wet-Blue

Local Value in Tk.000 20,685

Foreign Value in Tk.000 63,938

Total, Value in Tk.000 84,623

Crust Leather

2322

116720

119042

Finished Leather

1679

44791

46469

Footwear

12660

42609

55269

Leather Goods

1636

1654

Total

38982

268076

307058

Production type

Source: Leather Sector Census Study, LSBPC, 2005 Table 9.2: Distribution of Chemicals used by the firms of the Leather Sector (%) Total Value

Production type

Local Value

Foreign Value

Wet-Blue

24.44

75.56

100

Crust Leather

1.95

98.05

100

Finished Leather

3.61

96.39

100

Footwear

29.70

70.30

100

Leather Goods

90.0

10.0

100

Total

19.20

80.80

100

Table 9.3: Yearly Value of Accessories used by the Footwear and Leather Goods Manufacturing Units (by sources) Local Types of Production Footwear

Value Tk.000 73961

Leather Goods

237

Foreign in Value Total 80.76

27.40

Total 74198 80.30 Source: Leather Sector Census Study, LSBPC, 2005

of Value Tk.000 17616

Total in Value% of Total 19.24

628

72.60

18244

19.70

91577

Value% of Total 100

865 92442

100 100

Value in Tk.000

Most accessories used by the footwear and leather goods manufacturing enterprises are locally made. As a whole, about 20 percent of the accessories used in the production of footwear and leather goods are foreign made. About 81 percent (of the total value) accessories used by the footwear-manufacturing units are local accessories. Chemicals: Leather Processing Leather Processing: Wet-Blue Secondary data show that over 75 percent (of total value) of the chemicals used for the production of wet-blue by the tanneries are foreign-made. There are chemicals that are supplied by both local and foreign sources like sodium chloride, sodium carbonate, ammonium sulphate, sulphuric Acid, Bating Agent etc. However, some chemicals like enzymatic soaking agent, sodium formate, masking agent etc. are exclusively supplied from external sources (Table 9.4). In 2003, major suppliers of the chemicals were Germany, China, Italy and UK . Table 9.4: Yearly Value of Chemicals used for the Production of Wet-Blue Local Name of Chemicals

Foreign

Sodium chloride

1630.84

(Value Tk.000) 13,642

Soaking Agent

72.835

2,770

17.8

1,021

90.135

3,791

Enzymatic Soaking Agent

15.54

2,359

15.54

2,359

Sodium Sulphide

228.65

4,880

228.65

4,880

Lime Auxiliaries

16.8

690

72.015

6,509

87.715

7,199

Bactericide

13.825

482

13.825

482

Ammonium Chloride

46.745

1,149

47.745

1,149

Sodium Carbonate

0.55

161

44.17

984

44.72

1,145

Oxalic Acid

14.18

658

14.18

658

Sodium Formate

48.23

1,387

48.23

1,387

Magnesium Oxide Ammonium Sulphate/Dolomite Bating Agent

27.915

3,926

27.915

3,926

138

1,518

18.86

534

156.86

2,053

13.13

181

53.59

3,343

62.02

3,524

Sulphuric Acid

74.46

1,342

8.41

301

82.87

1,643

Formic Acid

5.77

168

73.55

4,123

78.55

4,291

Basic Chrome powder

2.1

512.92

24,572

513.02

24,661

Sodium Bicarbonate

0.65

54.12

1,789

54.77

1,799

Masking Agent

6.96

1,129

6.96

1,129

Preservative

0.125

113

6.96

4,706

6.79

4,819

1274.47

63,938

3202.38

84,623

Quantity (MT)

Total 1956.26 20,685 Source: Leather Sector Census Study, LSBPC, 2005

Total

(Value in Quantity (MT) Tk.000) 86 1634.84

(Value Tk.000) 13,728

Quantity (MT)

Leather Processing: Crust Leather As the survey data show over 98 percent of the chemicals used for the production of crust leather (from wet-blue) are foreign made. Other than a few chemicals like basic chroming sulphat, phenolic syntan etc. generally chemicals have both local and foreign suppliers. However, very

insignificant volumes of local chemicals are used as compared to the foreign chemicals. Foreign chemicals used are mainly made in Germany, UK, Holland, and Italy . Table 9.5: Yearly Value of Chemicals used for the Production of Crust Leather Local Foreign Name of Chemicals Quantity (MT) (Value in Tk.000) Quantity (MT)

(Value in Tk.000) Quantity (MT)

(Value in Tk.000)

Basic Chroming Sulphate

79.46

3564

79.46

3564

Sodium Formate

0.75

1233

47.75

1254

Na-EDTA

2.36

217

3.36

311

Acrylic syntan

176

83.28

9022

85.28

9198

Phenolic syntan

57.50

7891

57.50

7890

Melamine /Urea syntan

212

72.16

8601

74.16

8813

Replacement syntan

1.8

225

82.97

9222

84.77

9447

Vegetable extracts

2.5

188

130.89

8742

133.39

8930

Dyestuffs

1.4

770

54.22

31506

55.52

32275

Fat Liquors

3.5

473

196

26408

199.5

26880

Formic Acid/Acetic acid

58.54

31667

59.54

3217

Dye Auxiliaries

12.69

2559

12.69

2559

Preservative

0.13

113

5.1

3633

5.23

3745

Aldhyde Tannin

3.68

956

3.68

956

Total

16.07

2322

885.86

116720

901.84

119041

Total

Source: Leather Sector Census Study, LSBPC, 2005 Leather Processing: Finished Leather Over 95 percent (of the total value) of the chemicals used in the production of finished leather (from crust) are foreign-made. Except for a few, almost all chemicals have domestic suppliers, however, uses of local-made chemicals are very limited. Most of the chemicals used to produce finished leather are made mainly in Germany, Italy, UK, and Holland. Table 9.6: Yearly Value of Chemicals used for the Production of Finished Leather Name of Chemicals

Local

Foreign

Total

Quantity (MT)

(Value in Tk.000)

Quantity (MT)

(Value in Tk.000) Quantity (MT)

(Value in Tk.000)

Acrylic binder

0.75

10.33

3296

11.08

3334

Butadyne binder

0.8

1.75

495

2.55

535

Protein Binder

0.8

14.83

3867

15.63

3917

Wax emulsion

0.3

7.97

3081

8.27

3162

Penetretor

0.17

14.34

3958

14.51

3973

Nitrocellulose binder

4.16

1172

13.29

4712

17.45

5884

Poly Eurathane binder

0.75

14.70

4778

15.46

4830

Dye liquid

0.1

100

8.67

7312

8.77

7412

Filler

0.35

4.13

1222

4.49

1242

Pigments

1.4

12.54

3083

13.94

3143

Acetic Acid

0.05

2.47

170

2.52

172

Matting Agent

0.13

3.69

1498

3.81

1515

Film Modifier

0.05

4.08

3906

4.14

3926

Pull-up Wax

2.44

949

2.44

949

Pullup oils

4.02

1450

4.02

1450

Cross linkers

0.02

0.355

900

.37

910

Solvent

0.35

105

.35

105

Formal dehyde

0.05

.05

Total

9.83

1678

120

44790

129.83

46468

Source: Leather Local

Foreign

Total

Name of ChemicalsQuantity in Kg Value in Tk Quantity in Kg Value in Tk Quantity in Kg Value in Tk Aqua Solar Aciton Batal Acid Belco EMK Gail Goods Glace Hardner Lacker Ligar Liquid Spray Latex MEK Oxalic Polishing Cream Powder Dice Pasting Primer Pigment Spray Solution Shining Split Solvent Laker Season Sufar Thinner Tolbin Adhesive Ecosolar Cleansing Agent Zinc acid Staric Acid Antioxident MBT TBT Total

0 0 10 37 10 0 0 0 20 0 0 0 0 0 22 0 19505 0 10 0 19500 0 0 20 15 25 0 0 0 0 0 25 25 25 25 25 39299

0 0 1500 9300 100 0 0 0 3000 0 0 0 0 0 6600 0 1462500 0 2000 0 1365000 0 0 2100 1500 1500 0 0 0 0 0 2500 1500 1250 1205 1250 2862805

2.5 130 0 0 85 3 1009 790 0 9 25 2600 630 600 60 500 0 1760 0 48 5000 1800 40 15 0 0 3570 1550 7200 4.5 20 0 0 0 0 0 27451

6250 26000 0 25500 6300 402520 723000 0 1440 11750 260000 78900 27000 17400 18000 0 607000 0 17700 400000 2160000 1200 3000 0 0 286700 131250 1008000 6850 700 0 0 0 0 0 6226460

2.5 130 10 37 95 3 1009 790 20 9 25 2600 630 600 82 500 19505 1760 10 48 24500 1800 40 35 15 25 3570 1550 7200 4.5 20 25 25 25 25 25 66750

6250 26000 1500 9300 25600 6300 402520 723000 3000 1440 11750 260000 78900 27000 24000 18000 1462500 607000 2000 17700 1765000 2160000 1200 5100 1500 1500 286700 131250 1008000 6850 700 2500 1500 1250 1205 1250 9089265

Sector Census Study, LSBPC, 2005 Chemicals and Accessories: Footwear Table 9.6: Annual Chemical used for the production of Footwear Both domestic and foreign made chemicals are used in the production of footwear. Adhesive constitute the main head of chemical. Some chemicals like batal acid, belco, lacker, pasting, sufar are exclusively supplied by the local sources, and some chemicals used like aqua solar, aciton, thinner, tolbon etc. are of foreign origin. About 70 percent of the total chemicals used (of the total value) are foreign made. Most of the foreign chemicals are made in UK, India, Taiwan, Malaysia and Germany. A number of accessories like bukless, belt, button, catel, deco, eyelet etc. are used by the footwear manufacturing firms to produce footwear. About 80 percent (of the total value) of the accessories used by the footwear-manufacturing units are locally made. A few accessories like deco, catel tap, and eyelet used by the footwear firms are exclusively foreign made. Most of the foreign accessories are made in Korea, Hong Kong, India, Taiwan and Italy. Table 9.8: Yearly Value of Accessories used for the Production of Footwear (Value in Tk.000) Name of accessories

Local

Foreign

Buckles

248

7087

Total 7335

Belt

1313

1248

2561

Button

7903

475

8378

Catel

201

212

Catel tap

1799

Daco

1640

Eyelet

128

Others

70356

386

70742

12964

92795

Total 79831 Source: Leather Sector Census Study, LSBPC, 2005

Packaging and labeling materials like paper board box, tracing paper, poly bag, carton etc. are collected from local and as well as foreign sources. About 50 percent of the packaging and labeling materials used by the footwear firms are of foreign origin. China, Italy, and Korea were the main suppliers of the packaging and labeling materials for footwear industry in 2003. Chemicals and Accessories: Leather Goods About 90 percent of the chemicals (of the total value) used by the leather goods manufacturing units are locally made (Table 9.9). Accessories used by the leather goods manufacturing units include bukless, belt etc. Over 70 percent of the expenses on accessories of the leather goods manufacturing units are on foreign made accessories. Hong-Kong was the main supplier of the foreign made accessories for the leather goods firms in 2003. Packaging and labeling materials used by the leather goods manufacturing units are locally made. Table 9.9: Yearly Value of Chemicals used in the Leather Goods Manufacturing Units Chemicals

Local

Foreign

Total

Adhesive

1630

1648

Lacker

TBT

Total

1636

1654

Table 9.10: Yearly Value of Accessories used in the Leather Goods Manufacturing Units (value in Tk.000) Accessories

Local

Foreign

Total

Bukless

63.5

600

663.5

Belt

151.5

175.5

Button

Others

628

865

Total 237 Source: Leather Sector Census Study, LSBPC, 2005 Chapter-Ten Major Players of the Leather Chemical Industry (Data Collected from Primary Survey)

Market Share of Major Beam House Chemical Suppliers (Wet Blue) 1.

Soaking Agent: 550-600MT /Year #SL. 1. 2. 3.

Supplier ACI, Bangladesh BASF, Germany Others Source: Primary survey

Price: 100-120Tk Per Kg. Market Share 50% 30% 20%

Product Name: Lissapol, ACI; Lisapen-PA-WB, BASF 2.

Soaking Enzyme: 300MT /Year #SL. 1. 2. 3. 4. 5. 6. 7.

Supplier TFL, Germany BASF, Germany Buckman, Singapore TH Bohme Schill & Seilacher, Germany Scitan, Italy Others Source: Primary survey

Price: 150-190Tk Per Kg. Market Share 25% 20% 15% 15% 5% 5% 15%

Product Name: (Pellvit C, Pellvit DPH), TFL; (Basozym-S20), BASF; (Busan-40L), Buckman; (Vinkol A), Schill & Seilacher; 3.

Liming Auxiliaries: 750-900MT /Year #SL. 1. 2. 3. 4. 5. 6.

Supplier TFL, Germany BASF, Germany Buckman, Singapore Seicie, Italy Schill & Seilacher, Germany Others Source: Primary survey

Price: 65-120Tk Per Kg. Market Share 25% 20% 10% 10% 5% 30%

Product Name: (Erhavit-MB), TFL; (Mollescal AGN, Mollescal LS), BASF; (Buspers 77432), Buckman; (Saical-FC), Seicie; 4.

Deliming Agents: 1000MT /Year

Price: 8-15Tk Per Kg.

Chemicals: Sodium Meta Bi-Sulphate, Ammonium Sulphate, Ammonium Chloride #SL. 1. 2.

Supplier Local China, Thiland

Market Share 75% 25%

Product Name: (Delimer-AR), Neochemica; 5.

Bating Agents: 500-600MT /Year #SL. 1. 2. 3. 4. 6. 7.

Supplier Clariant, UK TFL, Germany Buckman, Singapore BASF, Germany Rock Chem Others Source: Primary survey

Price: 60-100Tk Per Kg. Market Share 35% 20% 15% 10% 5% 15%

Product Name: (Oropon-G, Oropon-ANZ, Vulal-K), TFL; (Basozym-C10), BASF; (Bate-PBW1), Buckman; ( Z.H Bate) ZH chemical; 6.

Pickling Agents: 1500-1700MT /Year

Chemicals: Sulphuric Acid Formic Acid Salt (NaCl) #SL. 1. 2. 3. 4. 5.

Price: 15Tk. Per kg. Price: Price: 10Tk Per Kg.

Supplier Local Clariant, U.K BASF, Germany Kemira Others Source: Primary survey

Tanning Agents: 6000-8000MT /Year #SL. 1. 2. 3. 4. 5.

Supplier BASF, Germany Bayer, Germany American Chemical Co. Sulchome, Italy Others Source: Primary survey Product Name: (Chromosol-B), Bayer; (Chromitan-B), BASF; (Chromix-B33), American Chemical Co.; 8.

Preservatives: 100-120MT /Year #SL. 1. 2. 3. 4. 5.

Supplier Buckman, Singapore Bayer, Germany Chemicolor/ Yorkeshire ATC, France Others

Product Name: (Prevental-Z), Bayer; (Busan-30L), Buckman;

Market Share 55% 10% 10% 5% 20%

Price: 50-150Tk Per Kg. Market Share 30% 30% 15% 10% 15%

Price: 750-850Tk Per Kg. Market Share 40% 30% 10% 5% 15%

(Tolcide-2230), Chemicolor/Yorkeshire; 9.

Basifying Agents: 500-700MT /Year #SL. 1. 2. 3. 4. 5.

Supplier BASF, Germany TFL, Germany Clariant, U.K Clowan Others Source: Primary survey Product Name: (Neosym-MGO), Clowan; (Chromitan-B), BASF; (Chromino-FB), TFL; (Tanbase), Clariant;

Price: 110-120Tk Per Kg. Market Share 30% 10% 10% 10% 50%

Total Quantity wise Market Share (Wet Blue) Sl. No. 1 2 3 4 5 6 7

Name of the Suppliers BASF, Germany Clariant, UK Bayer, Germany American Chemical Co. TFL, Germany Buckman, Singapore Others

Approximate Market Share (%) 25% 22% 20% 8% 5% 5% 15%

Market Share of Chemical Suppliers (Wet Blue) BASF, Germany Buckman 5%

Others 15%

Clariant, UK BASF 25%

TFL, 5% American Chemical Co. 8%

Clariant 22% Bayer 20%

Bayer, Germany American Chemical Co. TFL, Germany Buckman, Singapore Others

Figure 10.1: Market Share of Chemical Suppliers (Wet Blue To Crust) 1.

Neutralizing Agents: 500MT /Year #SL. 1. 2. 3. 4. 5.

Supplier BASF, Germany TFL, Germany Clariant, UK Buckman, Singapore Others

Price: 90-160Tk Per Kg. Market Share 25% 25% 20% 10% 20%

Product Name: (Butan 7810), Buckman; (Tamol GA, NNOL), BASF; (Sellasol NG), TFL; (BS3), Smith & Zones; (Probal-PRA), Clariant; (PAKS), Bayer; 2.

Retanning Agents: 3000-4000MT /Year

Price: 115-180Tk Per Kg.

#SL. 1. 2. 3.

Supplier BASF, Germany Bayer, Germany Others

Market Share 50% 30% 20%

Product Name: (Basyntan-AM, Basyntan- DLE, Syntan-DLE, Relugan), BASF; (Tanizon-OS, Ratingan- R7), Bayer; 3. Dyes: 1000MT /Year Price: 300-1200Tk Per Kg. #SL. 1. 2. 3. 4. 5.

Supplier Clariant, UK BASF, Germany Guama Stahl, Holland Others

Market Share 40% 30%

Product Name: (Beige-L), BASF; (Black-PNT), Guama/Chika; (Brown-574), Croda; 4.

Dyeings Auxiliaries: 250-350MT /Year #SL. 1. 2. 3. 4. 5.

Supplier Clariant, UK BASF, Germany TFL, Germany Hodgeson Others

Price: 70-350Tk Per Kg. Market Share 20% 20% 10% 10% 40%

Source: Primary survey Product Name: (Tamol AW), BASF; (Neosyn-N), Clarient; (Compound DLS), Hodgeson; 5.

Fatliquors: 1800-2000MT /Year #SL. 1. 2. 3. 4. 5. 6.

Supplier Smith & Zones TFL, Germany BASF, Germany Clariant, UK Zshimmer & Schwarz Others

Price: 70-350Tk Per Kg. Market Share 30% 20% 10% 10% 5% 25%

Source: Primary survey Product Name: (Lypoderm), BASF; (Chromopol, Choripol), TFL; (Derminol, Dermalix), Clariant; (Eureka-172), Atlas; (SLP), Yorkeshire; (Coralon), Stahl; Total Quantity wise Market Share (Crust) Sl. No. 1 2 3 4 5

Name of the Suppliers BASF, Germany Clariant, UK Bayer, Germany TFL, Germany Others

Source: Primary survey

Approximate Market Share (%) 33% 20% 17% 10% 17%

Market Share of Chemical Suppliers (Crust) Others 20%

BASF 33%

BASF Clariant Bayer TFL Others

TFL 10% Clariant 20%

Bayer 17% Figure10.2

10.3 Market Share of Chemical Suppliers (Crust To Finished Leather) Name of the products: Coating Agents (Top Coats, Base Coats); Binders; Cross linkers; Colloidal Fillers, Wax Fillers, Penetrator, Acrylic Resins; Pigments; Dyes; Thinners etc; Quantity:

Total:

550-600 MT/Year,

Note That: Although the result obtained from the secondary data shows the annual requirements of leather-finishing chemicals is 1550MT but from the primary survey it has been confirmed that annual finishing chemical consumption is 550-600MT. Sl. No.

Name of the Suppliers

1 2 3 4 5 6 7 8 9

ALPA, Italy BASF, Germany Stahl, Holland Clariant, UK TFL, Germany Finice(Italy) Horiyana Chemicals Buckman, Singapore Others(Indian & Italian)

Approximate Market Share (%) in Finishing 25% 20% 18% 10% 5% 5% 5% 2% 10%

Market Share of Finishing Chemical Suppliers Horiyana Chemicals 5%

Buckman 2%

Finice 5%

ALPA BASF

Others 10%

Stahl Clariant

ALPA TFL 25% Finice

TFL 5%

Horiyana Chemicals

Clariant 10%

Stahl 18%

BASF 20%

Buckman Others

Figure 10.3 Findings and Recommendations As the whole tannery industry of Bangladesh is getting squeezed day-by-day, the negative impact of it is obviously affected the leather chemical market of Bangladesh. Since on this small industry more than fifty chemical merchants and organizations are operating, price; marketing policy; relationship marketing; technical support by the chemical suppliers; are scrupulously observed by the tanneries of Bangladesh. Ten years back BASF and some other big chemical suppliers led the leather chemical market single handedly and played monopoly game with their consumers. At that time they took high price from the buyers. But now there are numerous competitors available on the market. Now, buyers can choose their own sellers since they have their alternatives. In the description bellow I tried to find out some basic marketing factors of leather chemical industry. 1. Technical Support: The leather chemical marketing and selling requires reliable technical services. Suppliers can sell their product only then, when they can make it sure to the buyers that the chemical is really useful for fulfilling buyerâ&#x20AC;&#x2122;s special purpose. So, if you donâ&#x20AC;&#x2122;t have good and skilled technical sales person you are no way near in the competition.

2. Price: Price has always been a huge factor in leather chemical industry. Big suppliers are getting away from the good notice of their clients because of their high price comparing to their Chinese and Indian counter products. Freight cost, taxes, currency exchange rate have always played a big factor for the ultimate price of the chemical. Most of the Chinese and Indian products are proved to be less costly than most of the well-known German, Dutch and English chemicals. 3. Relationship Marketing: Since the whole leather chemical market is very narrow, each and every one knows one another very well. But then again one has to maintain a very good relationship with the buyers. Most of the buyers want to purchase their chemicals on credit basis. So, you have no option but to sell your product on credit. Since, chemical selling requires post purchase technical support, one has to make it sure their chemical is doing better than competitors one in each and every aspect. Discount can be offered for buying bulk amount. Most of the buyers are facing difficulties in getting loan from the bank to purchase their raw materials. A supplier can also make a link with the banks to give loan to the tanneries for buying chemicals form them. 4. Lead Time: Some times buyers have to buy a bulk amount of chemicals for their production. In most of the cases suppliers are not able to supply beyond a certain amount of chemicals, then they require importing chemicals from the manufacturing agents. Lead-time plays a big role in that particular case. If a supplier cannot maintain its declared time of supply, obviously the buyers will be dissatisfied. 5. Quality: No matter in which way you have sold your chemical to the buyers you have to make it sure that you are selling a quality product. You have to remember that it is not the one time selling policy you want to follow. Only, the good quality product can ensure long term selling policy. 11.1 Problems of ACI Trading and Stahl in Leather Chemical Marketing Price: Most of the Stahl products are costlier than their competitor’s counter products. Although Stahl has very good brand image in Finishing chemical section but high price is one of the factor for which Stahl is loosing market towards the Indian and Chinese products. Even in some cases their chemicals are costlier than BASF, ALPA and TFL’s chemicals. Actually, Stahl has to wait for their shipment from Holland. Fluctuations of Euro play an important part to fluctuate the price of the chemicals. ALPA (The market leader in finishing Leather chemical section) arranges shipment from two sources, one is India and another one is Italy. ALPA gives emphasize to the customers choice from where they want to get the shipment. In case of shipment from India, ALPA offers lower price in US Dollar. The other benefit, they can avoid the risk of frequent Euro fluctuation. Not only ALPA but also other competitors are practicing this strategy as well (BASF India, TFL Sri Lanka, BUCK MAN Singapore, etc). Organizational Hierarchy of ACI Trading Ltd and insufficient technical person in the leather chemical division: ACI Trading Limited is one the subsidiaries of Advanced Chemical Industries (ACI), Bangladesh Limited. The Company is mainly involved in marketing and sales of various Industrial Chemicals, Petrochemicals, Plastics, Pharmaceuticals, Leather and Shoe finish, Textile Dyes and Auxiliaries through Indent sales. It has four business divisions such as Chemicals, Textile, Leather and Water Pumps. To render technical service ACI Trading has two separate technical application laboratories for textile and leather businesses.In the Leather chemical division there are only two persons working, a) Senior Technical Sales Officer, b) Technical Sales officer. There was a manager in this division, but after his death this position is vacant now. The hierarchy of Leather Chemical Division: Executive Director ACI Trading Limited Manager, Leather (Vacant) Senior Technical Sales officer

Technical Sales officer With the vacation of the mangers post, both the sales officers have to report directly to the Executive Director. Insufficient personnel in the leather chemical division and vertical hierarchy seem to be a noticeable problem for ACI Trading Ltd. ALPA, the market leader in leather finishing, has eight technologists working for Bangladesh market (Three Bangladeshi Technical persons, two Indian technologists, three Technologists from ALPA, Italy). In comparison to that Stahl has only two technical sales officers of Bangladesh and one Pakistani technologist. Training of these technical personnel is very necessary. ALPA, Italy arranged regular training for agent technologist and train up on latest development that helps to promote Chemicals to tanneries. Stahl and ACI should arrange training on regular basis. Job placement is another key strategy taken by the market leader ALPA. They appointed technicians from India and occupied most of the finishing units in Bangladesh. These technologists are working as shadow technologists of ALPA and at the same time Tannery management also pleased for that and finally ALPA gets good business. Appendix A-1 Members’ List of Bangladesh Finished Leather, Leather goods and Footwear Exporters’ Association (BFLLFEA) Category: Tannery

Name of the Firm

Address

Phone

M/S Al Madina Tannery

55/2, Hazaribagh, Dhaka

M/S Amin Tannery Ltd.

60/1, Hazaribagh, Dhaka

8611579 019343789 8610475 0171561660 9664078 506168

M/S Anowar Tannery (Pvt) 104, Hazaribagh, Dhaka Limited Off: 65-66 Motijheel C / A (2nd Floor) Fact: 127 Hazaribagh, Dhaka

M/S Apex Tannery Ltd.

9551203 9560766 9551117 8625635-7 M/S Awal Leather Complex 69, Hazaribagh, Dhaka 8626728 8118981 M/S Abul Khair Tannery 121/5, Sher-e-Bangla Road, Hazaribagh, 8621787 Dhaka-1209 0172126126 M/S Ayub Brothers Tannery 143/1 Hazaribagh 866518 Ltd. Dhaka M/S Azmir Leather 116/E, Hazaribagh, Dhaka-1209 8626925 M/S Aziz Tannery Ltd.

148/2, Hazaribagh, Dhaka-1209

M/S Bangladesh Fine Leathers Processing Ltd. M/S Bata Shoe Company Bangladesh Limited M/S Bay Tanneries Ltd.

Alta Plaza (3rd Flor) House # 1 Road # 10, Dhanmondi, Dhaka Tongi, Gazipur, (Dhaka) 21, Hazaribagh, Dhaka

M/S Bengal Leather Complex 147, Hazaribagh, Dhaka-1209 M/S Bengal Company

Peli

Export Hazaribagh Dhaka

8124806 8626485 9800501-5 9800513 8611445 8611468 011855496 8614077 8615977 0171538060 9122452 500197

M/S Bikrampur Tannery Ltd.

180/2 Hazaribagh, Dhaka

9110690

M/S Cresent Tannery Ltd.

143 Hazaribagh, Dhaka

9663659

M/S Dhaka Hides & Skins Ltd.

147, Hazaribagh, Dhaka

8611268 9669849

M/S Dhaka Tanneries Ltd.

124, Hazaribagh, Dhaka

M/S Diamond Tannery Ltd.

73, Hazaribagh, Dhaka

8615179 8613563 0189216979

M/S F. K. Leather Complex 95/3A, Hazaribagh, Dhaka Ltd. M/S Green Arrow Tannery 135, Hazaribagh, Dhaka

502411 506921 503650 8614182 M/S Great Eastern Tannery 42, New Paltan Lane, Azimpur, Dhaka- 8626887 (PVT) Ltd 1205 9666128 M/S H & H Leather Industries House # 69, Road # 8/A 9113776 Ltd. Dhanmondi R/A, Dhaka 9111209 8111526 M/S H. B. Tannery Ltd. House # 69, Road # 8/A 8111526 Dhanmondi R/A, Dhaka 9111209 M/S H. R. C. Leather Complex 1. TC Bhaban, Kawran bazar 9128991-2 Dhaka M/S Haroon Leather Ltd. 18, Kamal Ataturk Avenue (16th Fl) 8824979 Banani, C/A, Dhaka 8821024 M/S Helal Tannery 74, Hazaribagh, Dhaka 8616305 M/S Helena Enterprise Ltd. 78, Hazaribagh, Dhaka-1209 8631097 No.2 59/60, Gazmohol, Hazaribagh, Dhaka- 9660754 1209 (?) 0171591647 M/S Ibrahim Leathers 123/1 Hazaribagh, Dhaka 8625162

Contact Person and Designation Alhaj Nur Mohammed Managing Director Mr. Abdul Kader Managing Director Mr. Md. Dil Jahan Bhuiyan Managing Director Mr. A.K.M Rahmatullah, Managing Director Mr. M. A. Awal Managing Director Hazi Md. Abul Khair Proprietor Mr. Shahjahan Managing Director Mr. Md. Shahid Ullah Proprietor Mr. Md. Asifur Rahman Managing Director Mr. Anam Haque Managing Director Mr. G Stricker Managing Director Mr. Shamsur Rahman Managing Director Mr. Md. Tipu Sultan Managing Director Mr. Md. Anwar Hossain Proprietor Mr. S.M. Habibur Rahman Managing Director Mr. Md. Abdul Kader Chairman Mr. M. A. Rashid Bhuiyan Managing Director Mr. Md. NUrul Huda Managing Director Mr. Abdul Hakim Managing Director Mr. Kutub Uddin Chairman Mr. Tofail Ahmed Managing Director Alhaj Mohd Idrish Managing Director Mr. M. Nasir Managing Director Mr. M. Fayaz Director Mr. Sayeed Hossain Chowdhury, Chairman Mr. Rizwan Haroon Managing Director Mr. Md. Belal Hossain Proprietor Mr. Mohammad Mizan Mr. Md. Ibrahim Proprietor

M/S International Tannery

Hazaribagh, Dhaka

M/S Jamila Tannery Ltd.

112, Hazaribagh, Dhaka M/S Janata Tanning Industries 180, Hazaribagh, Dhaka Ltd. M/S Javed Tannery 119, Sher-e-Bangla Road Dhaka M/S Kader Leather Complex 54/F Moneshwar, Hazaribagh, Dhaka M/S Kalam Brothers Tannery 109/2 Hazaribag, Dhaka Ltd. M/S Karim Leathers Ltd. M/S Kid Leather Ind. Ltd. M/S Leather Bangladesh Ltd.

Ind.

180, Hazaribagh, Dhaka Off: 62/1, Purana Paltan, Dhaka Fact: 19 Sher-e-Bangla Hazaribagh, Dhaka of 54/1 Sher-e-Bangla Road, Hazaribagh, Dhaka

504401 508863 508466 9112832 8618556 8626727 8117674 8116424 8626727 8618556 0171561646 8616584 8611286 8611129 8612286 Road, 9563453 8610516 8614242

M/S Lexco Limited

146, Hazaribagh, Dhaka

9669397 8626082 8625147

M/S Madina Tannery

114, Kobi Nazrul Islam Road Sadharghat, Chittagong Dhaka Chamber Building 65-66, Motijheel C/A Dhaka

031-613916 031-617605 9551117 9566182-3

M/S Millat Tannery

116/6, Hazaribagh, Dhaka

M/S Mitali Tannery

71/4 Gojmohol, Hazaribagh, Dhaka

504865 8611264 8612917 9665916

M/S Mukti Tannery

141/2 Hazaribagh, Dhaka

8616586

M/S Mukta Tannery

34/C, Hazaribagh, Dhaka-1209

9660674

M/S Manzur Industries Ltd.

M/S Paramount Tanneries

181/2 Sher-e-Bangla Road, Hazaribagh, 8626056 Dhaka 0189220471 M/S Pioneer Tannery Ltd. 21, Hazaribagh, 8623428 Dhaka M/S Pragati Leather 55/1 Hazaribagh, Dhaka 9663121 Complex 8626485 0171524804 M/S R. M. M International Ltd. Suit # 601, Concord Tower 9345963-4 113 Kazi Nazrul Islam Avenue, Dhaka M/S R/ K. Leather Complex

153/A, Hazaribagh, Dhaka

M/S Rana Leather Ind. Ltd.

70, Dilkusha C/A, Dhaka 9, Hazaribagh Dhaka

M/S Reliance Tannery Ltd. M/S Riff Leather Ltd. M/S Roushan Tanneries

9566025-6 9564509 508909 48/2/K, Moneshwar Road, Hazaribagh, 8625119 Dhaka 8627425 0171898832 4, CDA Noxious Industrial Area 031-670764 Kalurghat, Chittagong 031-671220 78, Hazaribagh 504696 Dhaka 801624

M/S Ruma Leather Ind. Ltd.

131, Hazaribagh, Dhaka

M/S S & S Tannery

86/1, Hazaribagh Dhaka Akij Chember 73, Dilkusha, C/A, Dhaka

M/S SAF Industries Ltd.

011 867105

9664317 8627144 9662523

9552287 9666142 9666151 M/S Samata Leather Complex 120, Sher-e-Bangla Road, Hazaribagh, 8611102

Mr. Md. Fajlu Mia Proprietor Mr. Shaiqur Rahman Managing Director Mr. Abul Kashem Managing Director Mr. Tipu Sultan Proprietor Mr. Abdul Kader Proprietor Mr. Md. Abul Kalam Azad Managing Director Alhaj Rejaul Karim Ansari Managing Director Mr. Md. S.A.M.M. Nuruddin Managing Director Mr. Abdul Rahman Sales Managing Director Mr. M. A. Matten Chairman Mr. Harun Or-Rashid Managing Director Mr. Abu Mohammad Managing Director Mr. Quazi Anwarul Hoq (Tariq) Director Mr. Md. Nurul Alam Proprietor Mr. Mr. Hazi Abul Kashem Proprietor Mr. Osman Gani Bhuiyan Managing Director Mr. Sayed Md. Shidullah Proprietor Mr. Akbar Hossain Managing Director Mr. Ziaur Rahman Managing Director Mr. Md. Asadullah Managing Director Mr. Mohiuddin Ahmed Mahin Managing Director Mr. Md. Nurul Amin Chowdhury Managing Director Mr. A. K. Shamsul Alamin Managing Director Mr. Md. Shajahan Managing Director Alhaj Abul Kalam Director Mr. Amin Uddin Babul Managing Director Eng. M. Abu Taher Managing Director Mr. Md. Abdur Rahim Proprietor Mr. S. K. Momin Uddin Managing Director Mr. Mansur Ahmed

Ltd.

Dhaka

M/S Samina Tannery Pvt. Ltd.

36/1 Kalunagar, Hazaribagh, Dhaka

M/S Shadhin Tannery M/S Shafiq Corporation Ltd. M/S Shahjalal Complex

8611372 9662731 9660384 8625266 011850698 8616963

Hazaribagh, Dhaka Leather 43/1, Sher-e-Bangla Road, Hazaribagh, 8616111 Dhaka 9669385

Leather 20, Hazaribagh, Dhaka

8619457 502709

M/S Superior Leather Industry 19, Sher-e-Bangla Road Ltd. Hazaribagh, Dhaka

8612268

M/S Taj Tannery Ltd.

148, Hazaribagh, Dhaka M/S The Earth International 86/2 Sher-e-Bangla Road, Tannery Hazaribagh, Dhaka

8610285

M/S Vulua Tannery Ltd.

8611851 8118981 011859031 8614749 8613083

M/S Yousuf Tanneries Pvt. Ltd. M/S Yousuf Corporation Ltd.

109, Hazaribagh, Dhaka

Brothers 62, Hazaribagh, Dhaka Leather 124/2, Hazaribagh, Dhaka

8618826 506910

8625162 8614895

Chairman Abdus Samad Managing Director Mr. Faruque Ahmed Managing Director Mr. Sidul Islam Chowdhury Managing Director Mr. Shahjalal Mazumder Managing Director Mr. S. A. M. M. Nuruddin Managing Director Mr. Mujibur Rahman Managing Director Mr. Alhaj M. A. Satter Bhuiyan Proprietor Mr. M. A. Awal Managing Director Mr. Mohammed Yousuf Managing Director Hazi Mohammed Bashir Managing Director

Appendix A-2 Members’ List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Category: Leathergoods SL

Name of the Firm

Address

Phone

M/S Alamin Brenton Leather 70, Dilkusha Commercial Area Goods Limited Dhaka M/S Asian Leather Complex 143/1, Hazaribagh, Dhaka-1209

9566025-6 9564507 9664322

M/S Bangla Tan Leather Products

148/3, Hazaribagh, Dhaka

503502 500905

M/S Crown Leather Products Ltd.

Star Center (1st Floor) House # 2/A, Road #138, Gulshan-1 Shilpo Plot # 9, Block C, Tajmahal Road, Mohammadpur

9880799 8317259

M/S Dhaka Leather Crafts

147, Hazaribagh Dhaka

966470-07 0171530159

M/S Fortuna Leather Craft

131, Hazaribagh Dhaka 117, Hazaribagh, Dhaka-1209

9664317 8627144 9661157

Sky Lark Point, Suite No. 9J1, 24/A, Bijoynagar, 175, Syed Nazrul Islam Sarani, Dhaka Suit # 601, Concord Tower 113 Kazi Nazrul Islam Avenue Dhaka Lal Bhaban (1st Floor) 18, Rajuk Avenue, Dhaka

9354996-4 0171522170

M/S Crystal Corporation Ltd.

M/S Madina Leather Complex M/S Picard Bangladesh Ltd. M/S R. M. M International Ltd. M/S Sonali Aansh Industries Ltd. M/S Spectra Leathergoods Ltd, M/S Uttama Leather Production

325449 244862

Contact Person and Designation Mr. Jahangir Alamin Managing Director Mr. Md. Monir Hossain Managing Director Mr. Alhan M. A. Mateen Chairman Mr. Serajul Islam Managing Director Mr. Engr. A. S. M. Rafid Managing Director Mr. Joynal Abedin Bhuiyan Proprietor Engr. M. Abu Taher Managing Director Mr. Bellal Hossain Managing Director Mr. Md. Saiful Islam Managing Director

9345963-4

Mr. Mohiuddin Ahmed Managing Director

9556251 8613132

Mr. Nurul Islam Patwari Managing Director Mr. Sohail Askar Managing Director Mrs. Shaikh Selina Islam Managing Director

Namazi Chamber (1st Floor) 9565301 16, Motijheel C/A, Dhaka 9564543 Star Center (1st Floor), House # 9880799 2/1 8825007 Road # 138, Gulshan-1, Dhaka

Appendix A-3 Members’ List of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA)

Category: Footwear SL

Name of the Firm M/S Amit Footwear Ltd. M/S Apex Footwear Limited M/S Bata Shoe Company Bangladesh Limited M/S Bay Footwear Ltd. M/S B S Leather Complex M/S Cosmopolitan Shoe Ind. Ltd M/S Comfort Footwear Ltd. M/S Continental Footwear Ind. Ltd. M/S Desma Shoe Industries Ltd. M/S Dhaka Footwear Ltd. M/S H. N. Shoe Limited

M/S Inter Fashion Footwear Ind. Ltd. M/S Jenny Shoes Ltd.

Contact Person and Designation Flat # 2/503 20, Eastern Tower 9804046 Mr. Sukumar Chowdhury 20, New Eskaton Road, Dhaka 0171542895 Managing Director Plot # 3DS, Road No. 113/A, 8828258 Syed Manzur Elahi Gulshan-2, Dhaka 8821591 Chairman Tongi, Gazipur, (Dhaka) 9800501-5 Mr. G Stricker 9800513 Managing Director 21, Hazaribagh, Dhaka 9663966 Mr. Shamsur Rahman 9666994 Managing Director 8623428 13, Moneshwar road, Hazaribagh, 8615921 Mr. Shohel Ahmed Dhaka-1205 9619934 (Dilu) Managing Director House#303, Road#19/B, New 9261145 DOHS, Mohakhali, Dhaka 86, Laboratory Road (Gd. Floor) 8612415 Mr. Moinul Ahsan Dhaka 500516 Managing Director 240, New Elephant Road, Dhaka 861623 Mr. Abul Kashem 8612408 10, Kazi Nazrul Islam Avenud (2nd 8114053 Mr. Kazi Shahed Hasan Fl) 8110782-3 Ferdous, Managing Kawran Bazar, Dhaka Director 147, Hazaribagh, 9669849 Mr. M. A. Rashid Dhaka 8611268 Bhuiyan House # 69, Road # 8/A 9113776 Mr. M. Nasir Dhanmondi R/A, Dhaka 9111209 Managing Director 0171523223 Mr. M. Amirullah Executive Director Room # 410, DCCI Building 9560591 Mr. Farukh Ahmed 65-66 Motijheel C/A, Dhaka 9567986 Managing Director House # 06, Road # 68A 8826350 Mr. M. Nasir Khan Gulshan-2, Dhaka 8824885 Managing Director th Khan Mansion (5 Flor) 9567312 Mr. Aminur Rashid 107, Motijheel C/A Area, Dhaka 9569458 Managing Director 67, Lake Circus, (Dolphin Lane) 9338369 A. K. M. Afzalur Kolabagan, Dhaka 8312626 Rahman Managing Director House # 34/1 (Gr. Fl) Road # 10/A 8112543 Mr. Mohammed Nazmul Dhanmondi, Dhaka. Hassan, Managing Director 168/A, Green Road, Dhaka 404684 Mrs. Shahnaz Sultana 011858976 Managing Director 146, Hazaribagh, Dhaka 9669397 Mr. Harun-Or-Rashid 503502 Managing Director Baitul Hossain Building (Suite- 9564042 Md. Shafizul Islam 1204), 27, Dilkusha C/A, Dhaka 9556208 Khandaker Managing 7169495 Director 0175013459 290/1 Shonargaon Road 9803366 Mr. Delwar Hossain Dhaka 9803737 Managing Director Meherba Plaza, 9570346-8 Mr. Md. Ziaur Rahman 33 Topkhana Road, Dhaka Managing Director 2/1, R/K mission Road, 9563162 Mr. Abu S. M. Baqibillah Dhaka 9560147-9 Executive Director 45/B, Dilu Road, New Eskaton, 8113648 Mr. S M Abul Kashem Dhaka Managing Director Savar EPZ Area 8311252 Mr. Akihisa Osomura Dhaka Managing Director th Rahman Chamber (5 Floor) 9563185 Mr. Shamsuddin Ahmed 12-13 Motijheel C/A Dhaka 9565325 Executive Director rd 34, Bangabahdu Avenue (3 9557913 Mr. Mahbubur Rahman Floor) 9558790 Sikder Dhaka-1000 Managing Director Malliker Para, Sonargaon, 8616305 Narayangonj 0171378494 House # 159, Road # 01, DOHS 9887422 Mr. Harun Miah Baridhara, Dhaka Managing Director 9/1, Gozmohol, Hazaribagh 501622 Mr. Md. Abul Kalam Dhaka 9551725 Azad Chairman Address

Leathers

M/S Lalmai Footwear Ltd. M/S Landmark Footwear Ltd. M/S Leatherex Footwear Industries Ltd. M/S Legacy Footwear Ltd. M/S Lexco Footwear Ltd. M/S Madina Shoe Ind. Ltd.

M/S Malim Bangladesh Co. Ltd M/S Phulhar Footwear Ltd. M/S Rever Side Leather & Footwear Ind. Pvt. Ltd. M/S Rumana Shoe Industries Ltd. M/S Savar Industry (Pvt) Ltd. M/S Shampan Shoes Ltd. M/S Surma Leather & Footwear Ind. Ltd. M/S S A Leather and Shoe Ind. Ltd. Leather Plannets Limited (?) M/S Brother Chemicals Ltd. (?)

Phone

M/S S. A. K. International Co. (?) M/S Tivoli Bangladesh Ltd. (?) M/S Velex Agences Ltd. (?)

M/S Nitol Export (?)

House # 296, Road # 04, DOHS Baridhara, Dhaka 49, Gulshan S/A Gulshan – 1, Dhaka 62/1 Purana Paltan, Motijheel C/A, Dhaka Fac: 121/5 Sher-e-Bangla Road, Hazaribagh-Dhaka 71, Mohakhali C/A, Nitol Centre, Dhaka-1212

9883926 502030 9885362 8821153 9563404 9563453

Shakil Ahmed Khan Proprietor Mr. A. H. Mustafa Kamal Managing Director Mr. S. A. M. M. Nuruddin Managing Director

9887074-6 Mr. Abdul Matlub 8855794 Ahmad 0189238109 Managing Director

Appendix A-4 Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB) Category: Leathergoods SL

Name of the Firm

Address

Phone

M/S Apex Leathercraft Fashion & House#296, Road#4, DOHS Accessories Ltd. Baridhara, Dhaka Cantonment, Dhaka-1206 M/S Aurora 10/1, Iqbal Road, Mohammadpur, Dhaka-1207

9883926 017159297 9 8117696 018925703 1 M/S Cosmic Jute & Leather 561, Pakuria, Bhadhalodi, Uttara, 8916806 Industries Ltd. Dhaka-1230 018935757 0 M/S Crown Leather Products Ltd. 179, East Kafrul, Dhaka Cantonment 9872149 Dhaka-1206 018980308 3 M/S Jass Leather Industries Ltd. 89, Motijheel C/A (3rd Floor) 9559979 Suit No. 62, Dhaka 017145864 9

Mr. Md. Shahidul Huq Managing Partner Mr. Md. Shaheen Ahmed Managing Director Mr. Serajul Islam Managing Director Mr. Jainal Abedin Raton Managing Director

M/S Koninoor Leather Products Amanullah Complex Ltd. 87, Islampur Road, Dhaka

Mr. Hossain A. Sikder Managing Director

M/S Picard Bangladesh Ltd.

Mr. Md. Saiful Islam Managing Director

M/S Sonali Aansh Industries Ltd.

M/S Universal Leather Products

9566402 9566396 017152367 5 Sky Lark Point, Suit no 9J1 9354993-4 24/A, Bijoynagar, Dhaka 017152217 0 Lal Bhaban (1st Floor), 18 Rajuk 9556251 Avenue 9563322 Dhaka 017153672 1 Erectors House (9th Floor) 9880102-5 18, Kamal Ataturk Avenue, Banani C/A, Dhaka-1213

Contact Person and Designation Mr. Shakil Ahmed Khan Managing Director

Mr. Nurul Islam Patwari Managing Director Mr. M. Naser Rahman (MP) Managing Director

Appendix A-5 Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB) Category: Footwear SL

Name of the Firm

Address

Phone

M/S Amit Footwear Ltd.

House # 30, Road # 6, Sector 3 Uttara Model Town, Dhaka-1230 Celebration Point,1st Floor, Plot # 3,5 Road # 113A, Gulshan-2, Dhaka

9804046

M/S Apex Footwear Ltd.

M/S Bay Footwear Ltd.

M/S H. N. Shoes Ltd. M/S Jenny Shoes Ltd.

8828258 8620300 017153172 2 21, Hazaribagh, Dhaka-1209 8611468 8612335 017156079 4 House # 69, Road # 8/A 8111526 Dhanmondi R/A, Dhaka 9111209 Jennys House, House # 6, Road # 8826350 68/A 8824885

Contact Person and Designation Mr. Sukumer Chowdhury Managing Director Mr. Syed Nasim Manzur Managing Director Mr. Ziaur Rahman Managing Director Mr. M. Nasir Managing Director Mr. Nasir Khan Managing Director

Gulshan-2, Dhaka-1212 M/S Lalmai Footwear Ltd.

Khan Mansion (5th Floor) 107, Motijheel C/A, Dhaka

M/S Landmark Footwear Ltd.

64, Bijoy Nagar (3rd Floor) Kakrail, Dhaka-1000

M/S Leatherex Footwear Ind. Ltd.

House # 34/A, Road # 10/A Dhanmondi R/A. Dhaka

M/S Legacy Footwear Ltd.

64, Bijoynagar, Kakrail, Dhaka Suit # 1204, Baitul Hossain Building 27, Dilkusha C/A, Dhaka-1000

M/S Madina Shoe Industries Ltd.

017153511 7 9567312 9569458 017153801 2 9338369 8312626 8112543 9129192 018922755 9 8319663

9667745 9556208 7169495 017501345 9 M/S Surma Leather & Footwear Corner Court, 29 Toynbee Circular 9557913 Ind. Ltd. Road 9558790 Motijheel C/A, Dhaka M/S Tropical Shoes Ind. Ltd. A. R. Tower (3rd Floor) 8815142 24, Kamal Ataturk Avenue, Banani, 8815144 Dhaka-1213 Bangladesh Export Ltd. 24, Kamal Ataturk Avenue, 8815142 Banani, Dhaka 8815144 017153833 8

Mr. Aminur Rashid Managing Director Mr A. K. M. Afzalur Rahman Managing Director Mr. Nazmul Hasan Hohil Managing Director Mr. Kazi Rafi Ahmed Managing Director Mr. Md. Shafiqul Islam Managing Director

Engr. Mr. Sultan A. Sikder Director Mr. M. Anisur Razzaque Managing Director. Mr. M. Anisur Razzaque Managing Director.

Appendix A-6 Membersâ&#x20AC;&#x2122; List of Bangladesh Tanners Association (BTA) Category: Tannery SL

Tannery/ Organization

Address

Phone

Contact Person

M/S. Taj Tannery

148. Hazaribagh. Dhaka- 1209.

8610285

Md. Mizanur Rahman

9660754 8631097 0171526220 9660754

Md. Harun Chowdhury

9660754

Md. Monir Hossion

8614663

Md Mozaffar Rahman

9660508

Md. Mozibur Rahman

8621787

Hazi Md. Abul Khair

8631554

Md. Abdul Awal

9662836

Md. Abdul Hai

8628867

Mukbul Ahmed

M/S. Chowdhury Leather 95/7.Gazmahal, Hazaribagh. & Co Dhaka- 1209 M/S. Helena Enterprise

95/7.Gazmahal. Hazaribagh. Dhaka- 1209. M/S. R M Leather 95/7.Gazmahal. Hazaribagh. Dhaka- 1209. M/S M B Tannery Ltd 44/1, Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. M/S Pubali Tannery 44. Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. M/S Abul Khair Tannery 125/1. Sher-e- Bangla Road Hazaribagh. Dhaka- 1209. M/S. Nur Trading 119. Hazaribagh. Dhaka- 1209. Corporation M/S. Forhed Leather 99. Hazaribagh. Dhaka- 1209. Corporation M/S. Noakshli Tannery 107. Hazaribagh. Dhaka- 1209.

Md. Mizanur Rahman

M/S. Shadhin Tannery

101. Hazaribagh. Dhaka- 1209.

8614354

Farque Ahmed

M/S. Mamun Trades

91. Hazaribagh. Dhaka. 1209.

9661733

Md. Moharaf Hossain

M/S. H N Brothers

41/23/15. Zigatola, New Rd. Hazaribagh. Dhaka- 1209.

9662836

Md. Amir Hussain

M/S. Eusuf Tannery Ltd

135/2. Hazaribagh, Dhaka- 1209.

018- 244985

Md. Bashir Ullah

M/S. Majdhi Tannery

136/3. Hazaribagh, Dhaka- 1209.

8626492

Md. Hossain

M/S. Kohinoor Tannery Ltd

130. Hazaribagh, Dhaka- 1209.

9669001

Md. Humiyan Kabir

M/S. Bangla Ten Leather

148/3. Hazaribagh, Dhaka- 1209.

9125651

Md. Masum

M/S. F K Leather

95. Gazmohal, Hazaribagh, Dhaka- 8624082 1209.

Md. Katub Uddion

M/S. F F M Leather 94/1. Hazaribagh, Dhaka- 1209. 9660509 Complex M/S. Rahman Oversize 44. Sher-e- Bangla Rd. Hazaribagh, 8614663 Dhaka â&#x20AC;&#x201C; 1209.

Md. Sha Alam

M/S. Rahman Enterprise

Md. Azizur Rahman

39. Zigztola. Hazaribagh. Dhaka1209

M/S. Sonali Haide

Md. Fazrul Rahman

44/1, Sher-e- Bangla Rd, Hazaribagh, 9660508 Dhaka- 1209. M/S. Bearied Leather 45/1. Sher-e- Bangla Rd, Hazaribagh, 8610543 Complex Dhaka- 1209. M/S. Shodesh Tannery 116/D, Hazaribagh, Dhaka- 1209. 502264

Md. Mahabubur Rahman

M/S. Urmi Trade 136/2, Hazaribagh, Dhaka- 1209. International M/S. Zia Leather Complex 1310, Auture Dupo, Chittagong.

8620535

Md. Abul Kaham

31- 682645

Md. Abu Musa

M/S. Gulshan Tannery

90, Hazaribagh, Dhaka- 1209.

48, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209. M/S. Chinaze Tannery Pvt 50, Sher-e- Bangla Rd Ltd Hazaribagh, Dhaka- 1209.

Md. Akbar Hossain Md. Shohied Ullah

Md. Salim Ahmed

M/S. Great Strean Tannery

M/S. Yousuf Corporation

Leather 124/2, Sher-e- Bangla Rd Hazaribagh, Dhaka- 1209.

M/S. Shatee Leather

8626492

Al hazi Kadir

Kazi

Abdul

8129864

Hazi Md. Bashir

8612109

Md. Abul Kalam

8628529

Md. Golam Rabbani

M/S. Kasim Tannery

136/5, Hazaribagh Dhaka- 1209. 113, Hazaribagh Dhaka- 1209. 110, Hazaribagh, Dhaka- 1209.

M/S. Asia Tannery

137, Hazaribagh, Dhaka- 1209.

M/S. Nashet Tannery

138, Hazaribagh, Dhaka- 1209.

Md. Salim

M/S. Sonali Tannery

111/A, Hazaribagh, Dhaka- 1209.

Md. Babul Mia

M/S. Fanche Leather Enterprise M/S. Razibe Leather Complex M/S. Son Light Tannery

95, Gozmohal, Hazaribagh Dhaka- 1209. 95/4, Gozmohal, Hazaribagh Dhaka- 1209. 122, Hazaribagh, Dhaka- 1209.

9662840

Md. Shamsul Huda

9662840

Md. Shamsul Huda

M/S. Karsaj Tannery

8625078

M/S. Chanpur Tannery

92, Gozmohal, Hazaribagh Dhaka- 1209. 93, Hazaribagh, Dhaka- 1209.

M/S. Oversige Tannery

139, Hazaribagh, Dhaka- 1209.

Nasir Ullah

M/S. Capital Tannery

94, Hazaribagh, Dhaka- 1209.

Master Sayead Ullah

M/S. Naru Bhai Tannery

97, Hazaribagh, Dhaka- 1209.

Abu Kausar Jahangir

M/S. Comilla Tannery

98, Hazaribagh, Dhaka- 1209.

Md. Nur Nabi

M/S. Royel Tannery

100, Hazaribagh, Dhaka- 1209.

9228857

Md. Momin Ullah

M/S. Juliet Enterprise

81, Hazaribagh, Dhaka- 1209.

8614354

M/S. Lieen Enterprise

100, Hazaribagh, Dhaka- 1209.

8616975

Md. Shaidul Hoque Master Sha Emrean Photoeary

M/S. Ibrasim Tannery

105, Hazaribagh, Dhaka- 1209.

Md. Israfil

M/S. Shatter Tannery

105, Hazaribagh, Dhaka- 1209.

Ahdur Shatter

M/S. Mother Tannery

104, Hazaribagh, Dhaka- 1209.

S M Awlad Hossain

M/S. Feni Tannery Pvt Ltd

M/S. Manik& Brotgers Tannery M/S. Anjuman Corporation

Sohaj 79/A, Hazaribagh, Dhaka- 1209. Trading 79, Hazaribagh, Dhaka- 1209.

Md. Abul kasam

Hossain Ahmed Md. Hanif Md. Sarij Miha

8628867

Mukbul Ahmed Md. Hanif

M/S. Morshed Brothers 83/A, Hazaribagh, Dhaka- 1209. Tannery M/S. International Tannery 83, Hazaribagh, Dhaka- 1209.

9662533

M/S. Mizan & Suman 89/1, Hazaribagh, Dhaka- 1209. Tannery M/S. Mamtaj Tannery 84, Hazaribagh, Dhaka- 1209.

8611204

Md. Nur Nabi Md. Fazlu Miha Md. Hossain Md. Jalal Uddion

M/S. Jindhabad Tannery

84, Hazaribagh, Dhaka- 1209.

Md. Momin Ullah

M/S. Muzaheed Tannery

80, Hazaribagh, Dhaka- 1209.

Balal Hossain

M/S. Salam Tannery

75, Hazaribagh, Dhaka- 1209.

Md. Abdus Salam

M/S, Bhi Bhi Tannery

64, Hazaribagh, Dhaka- 1209.

Md. Shakanter

M/S. Jalal Tannery

117, Hazaribagh, Dhaka- 1209.

M/S. Metto Tannery

67/2, Hazaribagh, Dhaka- 1209.

8118204

Sala uddion Jamal Ahmed

M/S. Golden Leather 65/2, Hazaribagh, Dhaka- 1209. Industries M/S. Islamia Tannery 65, Hazaribagh, Dhaka- 1209.

Md. Amir Hossain

M/S. Shahi Tannery

68, Hazaribagh, Dhaka- 1209.

Md. Samsul Islam

M/S. Sodor Tannery

60, Hazaribagh, Dhaka- 1209.

M SB Sala Ahmed

8625230

Md. Torea Ullah

M/S. Hazi Mazharul Hoq 79/1, Water Workers Rd Ltd Posta, Dhaka- 1209. M/S. Sumon Tanney 57/2, Hazaribagh, Dhaka- 1209.

Md. Gopran

M/S. Lakhi Tannery

68, Hazaribagh, Dhaka-1209.

Md. Shajahan

M/S. A B S Tannery

42, Hazaribagh, Dhaka- 1209. 8625268

Md. Abu Bakker Siddque Md. Bajlur Rahman

8625268

Md. Bajlur Rahman

017- 524925

Hafaz Md. Mozzamal Hoq Md. Estak Ahmed Md. Akterurzzaman

9661733

Md. Mosaraf Hossain

M/S. East Asia Tannery Ltd

12/2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209. M/S. Phoenix Leather 180/C, Sher-e- Bangla Rd Complex Hazaribagh, Dhaka – 1209. M/S. Arafat Leather 6/1, Sher-e- Bangla Rd Complex Hazaribagh, Dhaka – 1209. M/S. Marson Tannery 45/1, Hazaribagh, Dhaka- 1209. M/S. Ashan Habibe & 123/3 Sher-e- Bangla Rd Brother Hazaribagh, Dhaka –1209. M/S. Mamun Tannery 91, Hazaribagh, Dhaka- 1209.

Hazi Md. Shajahan

M/S. Iland Tannery

122/A, Hazaribagh, Dhaka- 1209.

Md. Tajul Islam

M/S. Udion Corporation

124/1, Hazaribagh, Dhaka- 1209.

Md. Amanat Hossain

M/S. Reshni Complex

100/2, Hazaribagh, Dhaka- 1209.

M/S. Latif Leather Complex

83/1, Hazaribagh Dhaka – 1209. M/S. J R Leather Export 42/10. Sonatongho , Hazaribagh Dhaka- 1209. M/S. Hossain Brothers 68/1, Hazaribagh, Dhaka- 1209 Tannery M/S. Kalu Leather 43, Sher- E Bangla Road Corporation Hazaribagh, Dhaka- 1209

9118857

Md. Humayan Kabir

8612098

Md. Hamidul Islam Jamala Khatun

8613770, 0175 Hossain Ahmed Bhuiyan 042959 9667075 Mahabub Alam

M/S. Aziz Tannery

148/2, Hazaribagh, Dhaka- 1209

Samsur Rahman

M/S. Globe Tannery Ltd.

M A Bari

M/S. S & S Tannery

118, Sher-e- Bangla Road Hazaribagh, Dhaka- 1209 Hazaribagh, Dhaka-1209

M/S. J A Leather

61, Hazaribagh, Dhaka-1209

Md. Abdul Ajij

M/S. Johir Industries M/S. H S Tannery

Trading 121/4, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 47, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 M/S. Chowdhury & Co. 121/A, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209

Md. Abdur Rahim

Md. Johir Hafez Ahmad Md. Hasan Chowdhury

M/S. Jakir Hossain Tannery M.S. Zoobli Tannery

120/1, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 70, Hazaribagh, Dhaka-1209

Md. Shekantor Hossain Nurul Haque

M/S. Leather Complex Pvt. 11, Kalu Nagar, Hazaribagh, DhakaLtd. 1209

Md. Ibrahim

M/S. T Ahmed Tannery

87, Hazaribagh, Dhaka-1209

Ali Ahmed

M/S. Nabipur Tannery

141/A, Hazaribagh, Dhaka-1209

Md. Abdul Wahab

M/S. Nobarun Tannery

56, Hazaribagh, Dhaka-1209

Md. Iqbal Hossain

M/S. City Leather Tannery

Hazi Md. Ali

M/S. Milon Tannery

30, Monesshore Road, Hazaribagh, Dhaka-1209 30/A Monesshore Road, Hazaribagh, Dhaka-1209 30, Monesshore Road, Hazaribagh, Dhaka-1209 58, Hazaribagh, Dhaka-1209

M/S. Moon Tannery

105/1, Hazaribagh, Dhaka-1209

Md. Abul Kashem

M/S. New Kajol Tannery M/S. Muslim Tannery

M/S T-Para Tannery

Sala Uddin Ahmed Hazi Somsher Ali Zohir Ahmad

49, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 M/S. Kalam & Brothers 120/2, Hazaribagh, Dhaka – 1209 Tannery M/S. Mohin Tannery 59/1, Hazaribagh, Dhaka-1209

Md. Aminul Islam Babul

Ms. United Tannery Ltd.

139, Hazaribagh, Dhaka-1209

M/S. M S Tannery

121/3, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 135/B, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 98, Hazaribagh, Dhaka-1209

Md. Sala Uddin Chowdhury Md. Ruhul Amin

M/S. Abul Bashar Tannery M/S. Dhaka Nagar Tannery M/S. Jasim Tannery

Md. Abul Kalam Abdul Odud Mia

Md. Abul Bashar Abul Hossain Sala Uddin

M/S. M I Tannery

30/3, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 122, Hazaribagh, Dhaka-1209

M/S. Komla Tannery

125/1, Hazaribagh, Dhaka-1209

Hazi Nurul Islam

M/S. Gokul Tannery

121, Hazaribagh, Dhaka-1209

Md. Mozammel Hossain

M/S. Bengal Peli Export Co.

94/1, Hazaribagh, Dhaka-1209

Md. Anwar Hossain

MS. Poiran Tannery

117/1, Hazaribagh, Dhaka-1209

Alhaj Md. Shofi Ullah

M/S. Alea Tannery

106, Hazaribagh, Dhaka-1209

Md. Nurul Huda

MS. Iqbal Brothers Tannery

135/C-2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 24/C, Kalunagar, Hazaribagh, Dhaka1209

Md. Sasuddin Munshi

MS. Mukta Tannery Prominent Tannery Ltd.

Hazi Ismail Hossain

Sayed Md. Shahidullah

25, Prominent Avenue, 3, PC Culture, Mohammadpur, Dhaka-1207 M/S. Sayful Leather 121/2, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 M/S. Miraz Leather 13/1, Hazaribagh, Dhaka-1209 Complex The Noakhali Tannery Dotter Hat, Miazdi Court, Noakhali

Major Monjur (Retd) M.P Hazi Md. Sofi

M/S. Ismail Leather 121/B, Sher-e- Bangla Rd Corporation Hazaribagh, Dhaka – 1209 M/S. Prince Tannery 135, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 M/S. Al-Hera Leather 79, Water Works Road, Posta, Dhaka Industries Ltd. M/S. Dincum Shoes Ltd. House# 14, No.1 PC Culture Road, Mohammadpur, Dhaka-1207 Hi-tech Leather Complex 111, Hazaribagh, Dhaka-1209 Ltd. (Shohid Tannery)

Md. Ismail

Kader

Md. Monir Hossain Md. Moazzem Hossain

Md. Zahangir Hossain Hafez Muzahidul Haque Hasan Showrozit Md. Mozaffar Hossain

M/S. Luna Tannery

66, Hazaribagh, Dhaka-1209

Chrome-veg tannery Ltd.

115, Hazaribagh, Dhaka-1209

Hazi Monir Ahmad Md. Salim

71/4, Gozomohol, Hazaribagh, Dhaka1209 Leather 71/4/C, Gozomohol, Hazaribagh, Dhaka-1209 Leather 54/2, Hazaribagh, Dhaka-1209

Uddin

M/S. Rubi Leather Complex

Md. Shahjahan Bhuiyan

M/S. Salam Corporation M/S. Atique Complex M/S. Greenwage Tannery

Hazi Md. Abul Bashar Hossain Ahmed Bhuiyan

133/3, Hazaribagh, Dhaka-1209

Md. Shirah-ud-doullah Bahar Md. Mozibur Rahman 44/1, Md. Zamadul Haque

Hena Leather

44/1, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 M/S. Rabeya Khatun 49/3, Sher-e- Bangla Rd Tannery Hazaribagh, Dhaka – 1209 M/S. H L Enterprise 38, Sonatongor, Hazaribagh, Dhaka – 1209 M/S. Dil Bahar Tannery 116/B, Hazaribagh, Dhaka-1209 M/S. S A Leather R A N Leather

Md. Abul Hashem Md. Mostoffa Mia

44/C, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209 44/B, Sher-e- Bangla Rd Hazaribagh, Dhaka – 1209

Md. Mozaffar Rahman Md. Masukur Rahman

Appendix A-7 Bangladesh Chemical Importers & Merchants Association 124, Hazaribagh, Dhaka-1209, Tel: 8622608 SL

Name of the Importer

Name of the Firm

Address

Md. Mizanur Rahman(Mesbah) Chairman (BCIMA) Md. Mohsin Bhuiyan Md. Khasrul Alam Md Mokhlesur Rahman Md. Morshed Haider Md. Bulbul Aiub Md. Tofail Ahmed Md. Habibur Rahman Hazi Rabiullah Md. Altaf Hossain Mazakat Harun Manik General Secretary (BCIMA) Md. Azizul Haque Hawladar Maksudur Rahman Shopon Mostofa Akter Hossain Md. Abul Hossain Abdur Rouf Sabuj T.M Manjur Hossain Md. Iunus Khan Abu Musa Md. Mijanur Rahman Md. Amanullah Md. KhodaBoks Sirajul Islam Abul Khayer Bhuiyan Md Aiub Ali Md. Alauddin Hawladar Md. Habibur Rahman Babul Md. Sayedul Islam Azmal Hossain Bhoje

AIM Associate/ Imaco

124 Dhaka Tannery Market, Hazaribagh

Latex Tradelink M/s Tanvir & Co

20, Sher-e-Bangla road, Hazaribagh 130 KohinoorTannery market, Hazaribagh 28, Sonatongar, Zikatola, Dhaka 28, Sonatongar, Zikatola, Dhaka 3/6, Sonatongar, Zikatola, Dhaka 130 KohinoorTannery market, Hazaribagh 124 Dhaka Tannery Market, Hazaribagh 124 Dhaka Tannery Market, Hazaribagh 99 Hazaribagh Dhaka 124 Dhaka Tannery Market, Hazaribagh

Md. Zahangir Hossain Md. Ainul Haque Rafiqul Islam Badal

Haider Traders B.N.C T.A Trading Rupsi Traders Taj Chemical A.H Enterprise Chemitan Limited Romo Enterprise Gonipur Agency Fair International Labony Traders Chemirex International Mahai Trading

99 Hazaribagh Dhaka 87, Sher-e-Bangla road, Zikatola 86, Sher-e-Bangla road, Zikatola 124 Dhaka Tannery Market, Hazaribagh 20, Sher-e-Bangla road, Zikatola 146 Hazaribagh Dhaka 165 Agrabad Chittagong 27 kalurghat Chittagong 130 Agrabad Chittagong 115, Sher-e-Bangla road, Khulna 23 Farajipara, Dalmil Road, Khulna 24/2 Azimpur, Dhaka 58, Terribazar, Chittagong 155, Dewanhat, Chittagong Bibir Pukurpar, Barisal Alokanda, Barisal 49, Station Road, Dinajpur Talukdar Guest House, Syedpur, Nilphamari 6/1 Armanitola, Dhaka 10/2 Armanitola, Dhaka 23 TantiBazar Dhaka

Md. Faruq Hossain Iliasur Rahman Badal Samsul Alam Md. Aworangojeb Shamim Iqbal Shahnewaj Khan Md. Sadequr Rahman Md. Selim Reja Jafar Ahmed Abul Kalam Azad Abdur Rouf Mollah Abdur Razzak Bishwas Hazi Bulbul Ahmed Md. Lutfur Rahman Md. Delwar Kader Md. Shakawat Hossain Amar Saha Abdus Sattar Monjurul Haque Niru Md. Dulal Md. Fazlul Mukit Md. Zakir Hossain Md. Shafiqul Islam Md. Tarikul Islam (Mukul) Khondaker Ahad Ahmed Abul Kalam Azad Md. Nurul Anwar Md. Faruk Hossain Md. Rafiqul Islam Babul Hazi Md. Abdus Salam Rawsan Uz Zaman T.M Delwar Hossain T.M Belayet Hossain S.M Kamrujjaman Sirajul Islam Md. Tarek Hossain Hazi Md. Yusuf A.K Moniruzzaman Moklesur Rahman Patwari Abul Kalam Azad Md. Siddikur Rahman Khaza Ahmed

23 TantiBazar Dhaka 10 Chalk MughalTuli, Dhaka 20 Sena Kalyan Bhaban, Motijheel, Dhaka 53 Motijheel, Dhaka 67 Motijheel, Dhaka Borobazar Ananda Mahol, Mymensing 10 Station Road, Mymensing Babubazar, Jessore Myzdi Court, Noakhali 26, Bangshal Road, Dhaka 31 Nyabazar Market, Dhaka 35 Urdu Road Dhaka 35 Urdu Road Dhaka 14/15 Ispahani Building, Motijheel, Dhaka 6 Motijheel, Dhaka

M/s Ilias & Brothers

Trade Exchange

20, Sher-e-Bangla road, Zikatola 130 KohinoorTannery market, Hazaribagh 9, Dewan monjil, Sonatongar, Dhaka

M.A Corporation Progressive Footwear Co.

Leather

R.M International Organo MultiTrade Int’l A.T.L Exim Trade Int’l

M/s Link Int’l B.S Trading Co. Bangladesh Syndicates

SF Trading All Leather Trade M/s Lipi Leather Romisa Int’l Milon Enterprise Imon Trading Corp. Buckman Laboratories Asia Trading Corp.

& 20, Sher-e-Bangla road, Hazaribagh

124 Dhaka Tannery Market, Hazaribagh H: 7, R: 4, Dhanmondi, Dhaka 143/A Hazaribagh 950/B Yakub Building, Khatunganj, Chittagong 1/5 Mizan Tower, Kalyanpur, Dhaka 20, Sher-e-Bangla road, Hazaribagh 143/A Hazaribagh, Dhaka

Leather 13 Sahjahan Tannery Block, Hazaribagh 96/4 Monesshar road, Zikatola 124/B Hazaribagh, Dhaka 130 KohinoorTannery market, Hazaribagh 48, Sher-e-Bangla road, Hazaribagh 115 Hazaribagh 124 Hazaribagh, Dhaka 124 Hazaribagh, Dhaka 15/F Zikatola 15/F Zikatola 20 Sahjahan Tannery Block, Hazaribagh