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Business in Bangladesh

Jute Industry in Bangladesh | History, Problems, and Prospects

Known as the ‘Golden Fibre’, Jute was one of the major cash crops of Bangladesh. During British rule and then the Pakistan period, the production of jute and related goods was the single largest industry in this region. Even after the emergence of Bangladesh as an independent state; jute was the main contributor to foreign exchange earnings for more than a decade. The widespread use of alternative products like plastic and hemp has reduced the demand for jute. And, still, it is one of the most important export items in this country.

Jute Industry in Bangladesh Before 1971

Bengal is producing Jute since ancient times. People of Bangle was using these to make rope and clothes by local handloom weavers. The land and climate of Bangladesh are very suitable for jute cultivation. Thus, the quality of jute in this country is better than other jute producing countries in the world. The first jute mill of East Bengal — Bawa Jute Mills Limited; and the second — Victory Jute Products Limited was established in 1951 in Narayanganj; under private management as per the demand of the local market. In the same year, Bangle builds Adamjee Jute Mills the largest jute mill in Asia with financial support from the Pakistan Industrial Development Corporation.

Later, by 1960, the number of mills was increasing to 14 and there were 77 jute mills by 1970. The jute industry than had 170 thousand people working. In that year, Bagel earned 77 crores of rupees exporting jute goods to 120 countries and East Bengal became the largest exporter of jute goods in the world.

Jute Industry After 1971

After the independence of Bangladesh, the West Pakistani owners almost closed all the jute mills or abandoned. The government ordered the Bangladesh Jute Board to take over those mills. In 1972, a total of 67 jute mills were nationalized and placed under the Bangladesh Jute Mills Corporation (BJMC). Thus, BJMC was responsible for controlling the price, purchase, and sale of jute in the country as well as the financial and decision-making tasks of the jute industry. But due to mismanagement and corruption, all the jute mills were suffering from operational problems. In 1973, the government established the Jute Division under the Ministry of Finance. Later it turned into the Ministry of Jute.

Privatization of Jute Mills 1981-1982

The number of jute mills under BJMC was increased to 82 by 1981. Though the financial crisis, devaluation of taka, increased price of raw jute — affected the industry badly. Due to a decline in exports and financial losses, the government started to denationalize the jute mills. After 1982, out of a total of 82 jute mills, the government denationalized 35 jute mills, withdrew Capital of 8 mills, and merged 1 jute mill (Banani) with Mymensingh Jute Mills. The government also formed Bangladesh Jute Mills Association (BJMA) to represent the privatized jute mills in 1982.

Since 1993, a number of state-owned jute mills have been closed/sold/consolidated at various times under the World Bank’s Jute Sector Reform Program. In 2002, the government shut down Adamjee Jute Mills – the largest jute mill in the country, due to a severe financial crisis. Although the number of privately owned jute mills has increased during this period.

Problems of Jute Industry in Bangladesh

At present, there are about 200 jute mills in the private sector. Janata Jute Mills Ltd. and Akij Jute Mills Ltd. are the two largest private jute mills in this country. All the jute mills of Bangladesh are mainly spread into three regions — Dhaka, Chittagong, and Khulna.

Jute industry in Bangladesh has been facing various problems over the years:

  • Increase in production costs but the decline in export prices.
  • Decreased production efficiency as the machinery became older.
  • Irresistible and widespread corruption.
  • Absenteeism and issues with labor unions.
  • Accumulation of huge operational losses due to mismanagement.

In July 2020, the government of Bangladesh has announced to shut down all 25 state-owned jute mills due to huge amounts of recurring losses year after year. From 2010 to 2019, the Government has given about 7.5 billion takas to BJMC but it has not been able to turn profits. The corporation has been experiencing losses every year since 1980 with the exception of the 2010-11 fiscal year. Although a number of private jute mills have made substantial profits.

Prospects of Jute Industry in Bangladesh

About 4 million farmers cultivated Over 8 lakh hectares of jute and jute crops are in Bangladesh. According to BJMC, government jute mills used to buy an average of 13 lakh bales of jute a year. Around 50-55 lakh bales of produced jute are used in private sector jute mills. According to Export Promotion Bureau (EPB), every year an average of 20 lakh bales of raw jute exported till 2012-13; but now it has come down to 7-8 lakh bales. However, exports of jute-products have increased significantly.

The jute industry has played an important role in the national economy at different times despite facing several problems. The jute sector contributes 0.26 percent to GDP and 1.4 percent to agriculture GDP. In the 2017-18 fiscal year, Bangladesh earned the US $1.02 billion from this sector. Though in the fiscal year 2018-19, the export earnings were US $816.3 million. Again, Export earnings from jute and jute products increased by 8.10 percent to the US $882.35 million in the fiscal year 2019-20. Even in the corona-epidemic, the jute sector has demonstrated positive growth compared to other export sectors throughout the fiscal.

Present Situation of Jute Industry in Bangladesh

At present Bangladesh is the second-largest producer of jute, (India being the first). But Bangladesh produces the finest quality jute fiber. Globally jute is now one of the most important natural fibers because of being biodegradable and compostable. So as an eco-friendly natural product, the potential of jute and jute goods is increasing day by day. Traditionally the jute grown in this country is used to make hessian fabric, jute carpets, sacks, ropes, and twines. Due to increasing global demand, Bangladeshi manufacturers and exporters are now focusing on diversified jute products. Also, the government’s ban on production, sale, and use of polythene in 2002 and making it mandatory to pack rice, sugar, wheat, and fertilizers in jute bags in 2010 by the government, have encouraged producers to expand the sector of jute-goods.

Common Jute Products

Jute is used to make a variety of goods. Like a canvas, hessian and sacking cloth, tarpaulin, serum cloth, tapestries, tobacco sheets, boxes, papers, handicrafts, decorations, carpets, shopping bags, sports, and travel bags, beach bags, soft luggage, outdoor furniture, wall hangings, table lamps, toys, etc. Several private companies are making garments and shoes using jute. In 2018, scientists of BJMC developed a biodegrade plastic bag, called ‘Sonali Bag’ using jute fiber. Today Bangladeshi jute is also used in western countries. Like car industry, paper, and pumps, insulation industry, geo-textile, footwear; aircraft, computer body manufacturing, electronics, marine, and sports industries. Recently, jute leaves are being used to make organic green tea which is exported to Germany.

Jute — once a vibrant industry, has lost much of its shine today.  Still the sector provides direct & indirect employment to about 5 million people. Many private jute mills are making profits with lower production capacity than government mills by diversifying their products. According to several market research, the global market of jute bags alone will be US $3.1 billion by 2024. Since the world’s best jute is produced in Bangladesh, it is possible to go a long way with the joint venture of public and private initiators.

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Business in Bangladesh

Top 10 hotel brands/chains in Bangladesh

The hotel sector in Bangladesh is very popular in the world. There are many hotels in Bangladesh but a few of them are quite famous. Because they give their best service. Therefore, hotels have now become one of the brands, and they are known as the top hotels in Bangladesh. Most of the hotels are located in Dhaka, Sylhet, Chittagong, Cox’s Bazar and those hotels are doing good business. Hotels are not just made to stay. Many of these are events, wedding parties, and political events. There are also many branding product stores. So, the top branding hotel in Bangladesh is described below.

1. Four Points by Sheraton Dhaka, Gulshan

It is a multinational hotel brand run by Marriott International that targets business travelers and small conferences. It was founded in 1995 and has hotels worldwide. In Bangladesh, it is known as Four Points Sheraton Dhaka, Gulshan. It is located in the heart of Dhaka city. This hotel is convenient for many foreign embassies and high commissions, and they are a few steps away from premium shopping and dining. That is why the hotel provides the best service to tourists. Many tourists and businessmen come to Bangladesh every year. Therefore, Hotel Sheraton is always active to welcome them.

Contact:
6/A North Avenue Commercial Area, Dhaka 1212
Phone: 09609-444555

2. Amari Dhaka

Amari Dhaka is the top second hotel in Bangladesh. People know it as Amari Dhaka Hotel. They always provide good service to their customers. For example, 134 soundproofed rooms offer free Wi-Fi, free wired internet, and 24-hour room service. Amari Dhaka VIP provides good facilities to the person. They also organize various events.

Contact:
47, Road No 41, Gulshan-2, Dhaka City, Dhaka Division, Bangladesh 1212
Tel: +880 2 5505 9620

3. Best Western Plus Maple Leaf

The Best Western Plus Maple Leaf Hotel is located close to the train station and the great airport. The hotel is a 10-minute drive from the airport railway station and a 13-minute drive from Shahjalal Intl Airport (DAC). They have a 24-hour restaurant and room service. In the morning they serve a complimentary buffet breakfast. They also have Bhuvan SPA, high-speed Wi-Fi internet, rooftop BBQ restaurant. They communicate with their guests in three languages. Preferred, English, Arabic, and Hindi. So it is the third top hotel in Bangladesh.

Contact:
Best Western Plus Maple Leaf
Plot 1B, Road 1, Sector 1, Uttara Model Town, Dhaka 1230, Bangladesh.
Front Desk Hotline: +880-1966667677   Tel. : +880-2-48964855 
Fax: +880-2-8932835

4. Grand Sultan Tea Resort & Golf

Grand Sultan Tea Resort and Golf are located in Sylhet outside Dhaka. So, if the travelers want to visit Sylhet, they have to travel 4 hours from Dhaka. They will also be able to fly from Dhaka to Shahjalal International Airport. It is located at Srimangal in Sylhet. It is the only and five-star resort in the Sylhet region of Bangladesh. They have classified 135 rooms into 08 sections. They give their guests all five-star benefits. On the other hand, they arrange all kinds of meetings or events.

Contact:
Srimongal, Moulvibazar – 3210, Bangladesh.
For Reservation: +88 01730 793501 -4
For Corporate or Group Event: +88 01730 793555
Fax: +88 08626 73020

5. Hotel De Castle

Hotel de Fort Lee. Dhaka, a boutique hotel in Bangladesh. They started their hotel business in 1997. Their priority is to provide the best service to the guest. They provide 100% service to their guests during their stay at the hotel. They are working to establish world-class hospitality services. Because of this, they want international travelers to enjoy their leisure time well.

Contact:
Address: House 72, Block -B Road -21 Banani, Dhaka -1213 Bangladesh
Cell: +8801914392889
Email: info@hoteldecastlebd.com

6. Le Meridien Dhaka

Le Meridien Dhaka is a fully furnished Italian-designed hotel. They also decorate their 304 rooms in Italian design. The hotel was built in 2014. It is located in the vicinity of Banani. It is a 20-minute drive from the airport railway station. They give their guests all five-star benefits.

Contact:
79/A Commercial Area, Airport Rd., Nikunja 2, Khilkhet
Dhaka, 1229 Bangladesh
Phone: +880 963-8900089
Fax: +880 2-8900090
Sales fax: +880 2-8900090

7. Long Beach Hotel

Long Beach Hotel stands by very near to the beach. This hotel is situated at Cox’s Bazaar. From this hotel, every guest can see the longest amazing beach of 120 km in the world. They are also offering world-class facilities and exhilarating experiences to their guests. This hotel is a perfect choice for business, romance, and holiday travel.

Contact:
14 Kalatoli, Hotel-Motel Zone,
Cox’s Bazar, Bangladesh
Tel: +88 0341 51843-6, +88 09666772266
Reservation: +88 01730338907, +8801755660051
Email: sales@longbeachhotelbd.com

8. Pan Pacific Sonargaon Dhaka

Pan Pacific Sonargaon Dhaka is a hotel of Pan Pacific Hotels Group. It’s Headquarter is in Singapore. This hotel is located at the heart of the City Center. The hotel is fully controlled by its headquarters in Singapore. There are property companies with an outstanding portfolio of investment and development properties. Pan Pacific Hotels Group is working on developing about 50 hotels in 29 cities across the Asia Pacific, Europe, and North America. They are also managing their resorts in various proprietary ways.

Contact:
107 Kazi Nazrul Islam Avenue, Dhaka 1215, Bangladesh
Telephone+880 2 5502 8008
Emailenquiry.ppdac@panpacific.com

9. Rose View Hotel

Rose View Hotel is located in Sylhet. It has been made in hilly areas and Keane Bridge is a local landmark. There are some areas which are attractions to the guest include Dreamland and Adventure World. Also, this ideal hotel can hold for business and private gatherings for over one thousand people, with full meeting and event facilities. The hotel has 140 fully furnished deluxe and suite rooms and they provide all five-star facilities to their guests.

Contact:
Tel: ++88 (0821) 721835, 720492
Mob: ++8801972787878,01977200705
EMAIL: info@roseviewhotel.com /sales@roseviewhotel.com

10. Six Seasons Hotel

The Six Seasons Hotel salutes the city and stands tall. From where one can see Gulshan Lake and the park on one side. There are also breathtaking views of lamas all around. This magnificent hotel has grown to 15 floors. Its architecture is magnificent and full of mechanical talent and richness which has never been seen before. Six Seasons Dhaka is the top, safest hotel in Dhaka according to Trip Advisor rankings. This hotel is conveniently located in the diplomatic area of Gulshan II. They also offer car services upon prior request.

Contact:
Road 96, House 19, Gulshan 2, Dhaka
Mobile: +88 01955393291
E-mail: info@sixseasonshotel.com

Writer: MD.Afzal Hossain 

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Business in Bangladesh

Top 7 Well-known E-Commerce Company In Bangladesh

e commerce business in bangladesh

In Bangladesh, online shopping is getting more and more popular, people want to grab their products form hundreds of options. Consumers search for easier, trustworthy and applicable online shopping options where they can easily shop anytime as online shops are open 24/7. Big giants are attempting to grab the eCommerce market of Bangladesh like Alibaba already own daraz which was operating in Bangladesh for a few years.

Lets see what are the Top 7 E-Commerce Business in Bangladesh,

Rokomari.com

One of the most trusted and reliable e-commerce sites for books in Bangladesh, is rokomari.com. Since 2012, it has been operating and build their own home delivery system in Dhaka, Chittagong, and Rangpur. rokomari.com also sells electronics and accessories at very reasonable prices. They have great deals for books and other electronic products. You can purchase your products through cash on delivery, MasterCard, VISA card, Bkash, and DBBL as a payment system.

daraz.com.bd

Daraz BD, currently owned by Alibaba is one of the leading online shopping sites in Bangladesh. You can have almost everything here with a wide selection of electronics, fashion and home appliances. From 2015 March, Daraz started their journey to Bangladesh.  They catch a big portion of the market share selling products on discount offers, installment facilities. You can have your product on your desired pick up point as they are making a strong supply chain and warehouse facilities.

ajkerdeal.com

ajkerdeal.com has targeted the middle class with a wide range of daily necessary products. They have electronics, home appliances and food products. The products of ajkerdeal is very affordable everyone. They deliver their products theough cash on delivery, Bkash, DBBL, MasterCard, VISA card etc.

pickaboo.com

pickaboo.com is well known for the electronic devices. You can have almost any well known foreign brand’s electronic accessories at pickabook.com. From pickboo you will have brand warranty and 100% authentic products at very reasonable prices. They provide EMI too and have a very easy returnable policies for better customer experiences.

Bagdoom.com

Bagdoom.com is famous for its lifestyle products. They sell almost all kinds of life style products and they target the youth. Its previous name was akhoni.com. To become more specific and relatable to the youth they rebrand the site and the transformation is quite successful for the company.

othoba.com

othoba.com is an E-Commerce site which is more focused garbing the market of the accessories, daily groceries, and medical kits. It is doing business from November 2015. It is a sister concern of Pran-RFL group. Their advantage over other e-commerce site is lower delivery charges. The Pran-RFL company’s strong distribution system is working as a core pillar for the othoba.com.

PriyoShop.com

priyoshop.com is trust able and popular for clothing, footwear, jewelry, restaurants, health & beauty products. From 2013, priyoshop.com is raising. It has ensured all the necessary facilities for the consumers and racing to become one of the e-commerce market leader in Bangladesh.

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