Country’s businessmen are hopeful of setting up light engineering industries alongside the prospects of heavy industries with a view to expediting the process they call for quick finance and infrastructural supports. They argued that the Light Engineering Sector (LES) is a potential cost-cutting area, which already is producing at least 50 percent substitutes for imported items.
As Prime Minister Sheikh Hasina announced the Light Engineering as ‘Product of the Year’, industrialists are now hopeful that the government would support with proper policy to help boost the industry. Businessmen said the country is yet to move on the heavy industry. This Light Engineering industry will create an opportunity for the country to step forward in that direction.
According to concerned industry data, light engineering products are bicycles, motorcycles, automobiles, auto parts, electric and electronics, accumulator batteries, solar photovoltaic modules and toy accessories. The data showed, the important sub-sector is providing critical support to industrial, agricultural and construction sectors by manufacturing a wide range of spare parts, castings, moulds and dices, oil and gas pipeline fittings and light machinery, as well as repairing those.
The industry is now meeting 48-52 percent local demand by producing electrical goods like switch, socket, light shed, channel, cables and electrical fans, generator, and others, a demand earlier met through import. According to Bangladesh Engineering Industry Owners’ Association (BEIOA), such engineering factories are located in Gazipur, Kishorganj, Dhaka, Chattogram, Narayangonj, Bogra, and other places across the country. It is estimated that around 80 lakh technically educated and skilled people and innovative entrepreneurs are actively engaged in the sector. Bangladesh imported light-quality engineering products from India, Thailand, Japan, Singapore, Malaysia and China.
BEIOA president Abdur Razzak said, “As our PM has announced the sector as ‘Product of the Year’, now we are hopeful that this industry will change itself as well as lead the country towards a better development”. “If now we can have sufficient financial backup and proper policy support we will surely boost the industry. Besides, we also need technological upgrading, training programmes for skill development, and land availability”, he added.
The light engineering sector is 'the mother of all sectors providing backup support to cement, paper, jute, textile, sugar, food processing, railway, shipping, garments capital machineries by repairing and maintaining those. A recent study conducted by International Finance Corporation (IFC) in partnership with the UK Department for International Development and Norwegian government shows that LES has 50,000 micro enterprises and 10,000 Small and Medium Enterprises.
Another study conducted by Bangladesh University of Engineering and Technology, however, estimates that LES comprises of around 40,000 enterprises employing around 8,00,000 people. According to Bangladesh Investment Development Authority (BIDA) statistics, the industry’s annual turnover is $ 1600 million of which Import substitute products is around $ 200 million. Over 90 percent of light engineering industries are serving the local needs of the country.