Page 35 - IBT Full Pdf

Ceramics Industry
By Dipto Rano Mesbah
THE STAR OF
THE CERAMICS
INDUSTRY
Star Ceramics aims to take the
market head-on against foreign
competition with unique designs,
cutting-edge technology, and
strategic marketing solutions.
The ceramics industry is a rapidly growing
manufacturing sector in Bangladesh, making bold
strides in both the local and international market.
The local ceramics industry has evolved alongside
people’s lifestyles. With the consumer base
increasing every year, the ceramics industry has
grown significantly since its inception in the
1950s.
34
December 2021
CAPTURING COLOURS,
Star Ceramics understands that every
CULTURES, AND CLASS
person is different; that their lifestyles
are different. As a result, Star Ceramics is
working on a range of thematic designs
so that it can extend its products to
people of all ideologies and lifestyles.
With the help of a skilled creative team,
Star Ceramics has created more than 16
designs centered around festivals, events,
and lifestyle. For example, Lokoj is
themed around aristocracy and fashion
trends, and Deja vu represents geometric
shapes. It also offers Tropical to represent
the forest, Hollywood to represent glam,
as well as unique and aesthetic themes
such as Jade, Castle, Finery, Veneer, Troy,
Reva, and Eden.
The Sanitary Ware Division also offers a
variety of designs with several themes
such as Star Deluxe, Day by Day, Sara,
AN INFRASTRUCTURAL FACELIFT UNIQUE SIZES, POPULAR Iris, Pearl, Lily, and many more.
The ceramics industry, which consists of tableware, CHOICES the highly skilled design and laboratory
sanitary ware and tiles, is constantly growing and Star Ceramics plant entered the market on the 1st of teams are constantly testing new and
shaping the economy of our country. There was a time January, 2013. The key factors that led it to succeed innovative tiles and sanitary ware,
when people used to decorate their floors with mosaics. in such a very short time in this competitive market maintaining international standards, and
Over time, mosaic started being replaced with floor tiles, are its cutting-edge technology, the latest and as a result, the brand is constantly
which rapidly grew in popularity among the general advanced machinery, and the unique sizes and introducing new products in the market.
masses. Soon afterwards, people started decorating their designs of the tiles. In the industrial market, Star Star Ceramics is the only company in
washrooms and kitchen walls with wall-tiles. In our Ceramics is the pioneer of nanotechnology and digital Bangladesh which offers so many unique
country, most houses generally have tile flooring and print. It also pioneered the 20cm x 50cm , 33cm x designs.
painted walls. But now, people’s mindsets are changing 50cm , 50cm x 50cm, 60cm x 90cm and 60cm x Star Ceramics believes in continuous
along with their lifestyle. They are now leaning towards 120cm tiles. According to Bangladesh Ceramic innovation not only in the production,
tiles as the complete solution, both for flooring and their Manufacturers & Exporters Association (BCMEA), Star but also in technological advancement,
walls. Ceramics ranks 4th with a market share of 10.7%. In a development of new marketing
Sanitary ware is also expanding its footfall, especially in very short period of time, it has gained massive strategies, exploring new opportunities in
the marketing avenue, and formulating
rural areas. People living in rural areas are replacing their
market share and popularity, which is reflected in its
undeveloped latrines with Asian water closets. This is accolade as the 3rd Most Popular Ceramic Brand in new trade-based strategies. Through this
continuous innovation process, it has
also helping them achieve a higher social status and
the country, awarded by Bangladesh Brand Forum
giving them an increased perception of self-esteem. during the Best Brands Awards 2020. brought 0% EMI to the market. 0% EMI is
now authorized at more than 50 outlets
across the country, and the number will
increase in the future. Star Ceramics has
Star Ceramics is the new driving force in the ceramics 6 banks involved in this strategic
industry. With a firm understanding of the people’s
marketing to facilitate customers with 0%
desire for thematic tiles, the company has pioneered a EMI. 0% EMI was initiated with a specific
new style of flooring and wall tiles that exude a higher consumer market, particularly, those with
standard of living. With their cutting-edge 800 to 1200 sq. ft. houses. Customers are
manufacturing technology, and a highly skilled design able to avail 0% EMI up to 3 months,
team, Star Ceramics offers unique varieties and sizes which has been financially beneficial in
of tiles for a variety of purposes. While the turmoil of the face of the difficulties brought on by
the COVID-19 pandemic caused global logistical COVID-19. Through digital activities, the
disruptions, Star Ceramics’ strategic solutions ensured 0% EMI campaign has been able to
steady supply of raw materials, while offering generate over 12,000 leads since its
financial solutions to consumers. inception.
A CONQUEROR AMIDST A CRISIS
While the ceramic industry is a growing manufacturing
industry in Bangladesh, it continues to face numerous
challenges in the way of its growth, namely inconsistent gas
supply, an over-reliance on imported raw materials, and rising
fuel price and freight charges.
The inconsistent gas supply has not only affected the ceramics
industry, but also those factories across various industries
that rely heavily on gas. Some factories need to draw gas lines
over large distances in order to meet demands, and as a
result, whenever there is a leakage or low pressure, they have
to temporarily shut down all operations. Star Ceramics has
overcome this challenge as its factory is situated in the
Habiganj District, near a gas field. As a result, it does not
have to encounter inconsistent gas supply, and is able to
operate its factory 365 days a year.
Another challenge that the ceramic industry faces is the huge
tariff placed on imported raw materials. Due to the continuous
increase in the price of raw materials, the company has had to
increase the price of its tiles by an average of BDT 3 per
square feet.
The other challenge has been most evident during COVID-19,
when both fuel prices and freight charges
increased. Star Ceramics receives
shipments via sea but due to COVID-19,
sea freight operations slowed down from
15-day shipments to 2 to 3 months. Star
Ceramics responded by opting for air
freights even though it incurs a higher
cost. Despite the rising cost of fuel price
and freight charges, Star Ceramics bore the
cost in consideration of its customers. Till
now, Star Ceramics has not raised prices
due to increased fuel price and freight
charges, but due to inevitable constraints,
the entire ceramics industry will be bound
to raise prices, sooner or later.
FIGHTING FOREIGN
FORCES
There was a time when customers used to
look for foreign tiles and sanitary ware.
There were only a few domestic companies
in the market back then. Over time,
domestic products have grown, at one
point capturing 80% of the market share.
Now, the business is growing at an
average rate of 20% per year.
Recently, the Government of Bangladesh
cut tariffs on imported tiles by 1 USD per
square meter resulting in a price reduction
of foreign products by 12 BDT per sq. ft.
This again creates a challenge for the local
companies as it helps to reduce cost for the
importers of foreign tiles.
Today, tiles and sanitary ware of
international quality are being produced
and marketed both in Bangladesh and in
other countries. Star Ceramics has nanotechnology, di
print, and mirror polish technology in its factory. I
produces the largest sized tiles in the market, with
of 60cm x 120cm and 60cm x 90cm. Additionally, it als
produces unique sizes such as 30cm x 50cm, 30cm x 60c
among others. As a result, Star Ceramics has a large
of production and stock capability which can easily m
consumer demands.
RECOVERING FROM COVID
The entire ceramics market lost its momentum during t
COVID-19 pandemic and became inactive. Almost all
construction projects came to a halt, and as a result
consumer demand decreased accordingly. With the decli
COVID-19 cases in the third quarter this year, the ce
market is gradually returning to its old form. There
a return to the previous momentum. Previously, Star C
had exported products to countries like India and Bhu
however, in the last 2 years it has not exported any
due to the pandemic. Between 2014-2019, the business
grown by 40 percent and Star Ceramics has been able t
achieve an annual sales milestone of around BDT 550 c
However, after COVID-19 was declared a pandemic, the
momentum has created a challenge not of growth, but o
survival.