Bicycle industry shows promise as export earnings grow

Bangladesh’s bicycle industry, an emerging export sector, has huge potential in the global market as export earnings are growing by around 9 per cent per year.  

As of 2016, Bangladesh had a market share of 11 per cent in the bicycle industry in the European Union (EU) countries and the country is the third largest exporter, Bangladesh Bicycle Merchants Assembling and Importers Association president Mizanur Rahman told The Independent.

During the first eight months (July–February) of the 2017–18 fiscal year, Bangladesh earned nearly USD 57 million by exporting bicycles, especially to the EU market. During the same period in the 2016–17 financial year, the earnings totalled USD 52.54 million. The growth rate is approximately 9 per cent compared to the previous year.

Bangladeshi bicycles are exported to 18 countries, including the UK, the Netherlands, Germany, Italy, Greece, Ireland, Belgium, Denmark, Australia and Portugal.    

Industry people and analysts have said the country has the capacity to earn nearly Tk. 1,000–1,500 crore from bicycle exports within a couple of years, if the import duty on cycle raw materials is reduced.

Rahman said the growth rate of bicycle use in the domestic market has been 30–40 per cent in recent years.      

Rahman added: “Bangladesh cannot produce all types of parts needed for manufacturing a complete bicycle. The country has to import parts and raw materials to produce a bicycle.”

Citing an example, he said raw materials like frame, tyre, rim and spoke are all manufactured locally. Derailleur gears, known as cycle’s gears, are imported.

He said the industry has been facing challenges like higher import duty on cycle components, infrastructure problems and a dearth of foreign investment. Besides, an investment-friendly atmosphere for local investors must be ensured for accelerating growth in the industry.

“Bangladesh has good prospects in bicycle exports. The congestion in ports and the delay in delivery of parts during air shipment are big barriers for the sector. These problems need be addressed as soon as possible,” he added.

“Meghna Group first began exporting bicycles. Now, there are 20 companies that are engaged in bicycle manufacturing, targeting both the exports and local markets,” said Habibul Islam Jahid, importer and owner of ‘Cycle Heaven’.  

Habibul Islam also said, “The use of bicycles has been increasing rapidly in Bangladesh because of traffic snarls in the capital city and increased awareness about healthy lifestyles.”

Talking to The Independent, Kamruzzaman Kamal, director of marketing of Pran-RFL Group, said, “We started producing bicycles named ‘RFL Duranta’ in 2014. Now, we export ‘Duranta’ to countries such as the UK, the Netherlands, Canada and other European countries.”            

Replying to a question, he said, “We’ve built a manufacturing plant at Habiganj district in Sylhet division, where approximately 100,000 lakh cycles are being produced annually.”

The price varies from Tk. 4,000 to Tk. 70,000, depending on the models, he said.     

According to the data of Export Promotion Bureau (EPB), during the first eight months (July–February) of the 2017–18 financial year, the UK imported the highest number of bicycles worth USD 28.88 million, while Germany imported bicycles worth USD 10.08 million, followed by Denmark (USD 4.05 million), India (USD 4.14 million) and Belgium (USD 3.29 million).

EA

Bicycle industry shows promise as export earnings grow

Bangladeshs bicycle industry, an emerging export sector, has huge potential in the global market as export earnings are growing by around 9 per cent per year. As of 2016, Bangladesh had a market share of 11 per cent in the bicycle industry in the European Union (EU) countries and the country is the third largest exporter, Bangladesh Bicycle Merchants Assembling and Importers Association president Mizanur Rahman told The Independent. During the first eight months (JulyFebruary) of the 201718 fiscal year, Bangladesh earned nearly USD 57 million by exporting bicycles, especially to the EU market. During the same period in the 201617 financial year, the earnings totalled USD 52.54 million. The growth rate is approximately 9 per cent compared to the previous year. Bangladeshi bicycles are exported to 18 countries, including the UK, the Netherlands, Germany, Italy, Greece, Ireland, Belgium, Denmark, Australia and Portugal. Industry people and analysts have said the country has the capacity to earn nearly Tk. 1,0001,500 crore from bicycle exports within a couple of years, if the import duty on cycle raw materials is reduced. Rahman said the growth rate of bicycle use in the domestic market has been 3040 per cent in recent years. Rahman added: Bangladesh cannot produce all types of parts needed for manufacturing a complete bicycle. The country has to import parts and raw materials to produce a bicycle. Citing an example, he said raw materials like frame, tyre, rim and spoke are all manufactured locally. Derailleur gears, known as cycles gears, are imported. He said the industry has been facing challenges like higher import duty on cycle components, infrastructure problems and a dearth of foreign investment. Besides, an investment-friendly atmosphere for local investors must be ensured for accelerating growth in the industry. Bangladesh has good prospects in bicycle exports. The congestion in ports and the delay in delivery of parts during air shipment are big barriers for the sector. These problems need be addressed as soon as possible, he added. Meghna Group first began exporting bicycles. Now, there are 20 companies that are engaged in bicycle manufacturing, targeting both the exports and local markets, said Habibul Islam Jahid, importer and owner of Cycle Heaven. Habibul Islam also said, The use of bicycles has been increasing rapidly in Bangladesh because of traffic snarls in the capital city and increased awareness about healthy lifestyles. Talking to The Independent, Kamruzzaman Kamal, director of marketing of Pran-RFL Group, said, We started producing bicycles named RFL Duranta in 2014. Now, we export Duranta to countries such as the UK, the Netherlands, Canada and other European countries. Replying to a question, he said, Weve built a manufacturing plant at Habiganj district in Sylhet division, where approximately 100,000 lakh cycles are being produced annually. The price varies from Tk. 4,000 to Tk. 70,000, depending on the models, he said. According to the data of Export Promotion Bureau (EPB), during the first eight months (JulyFebruary) of the 201718 financial year, the UK imported the highest number of bicycles worth USD 28.88 million, while Germany imported bicycles worth USD 10.08 million, followed by Denmark (USD 4.05 million), India (USD 4.14 million) and Belgium (USD 3.29 million). EA