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“To Study the Current Market Scenario and the Future Prospect of Leather Chemical Industry of Bangladesh”

Internship Report

Submitted To:

MR. AZMAL HOSSAIN

Executive Director
ACI Trading Limited.

Submitted By:

Mohammad Tawhid Reaz

Internee,
ACI Trading Limited.

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A D V A N C E D C H E M I C A L I N D U S T R I S L I M I T E D
245, Tejgaon Industries Area,
Dhaka- 1208.

Date: 25 June, 2006.

June 24, 2006

Mr. Golam Mohammed Chowdhury
Chairman
Internship & Placement Office
Institute of Business Administration
University of Dhaka
Dhaka-1000

Dear Sir:

Subject: Internship Report on
“To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh”.

It is my pleasure to present this Report on “To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh” as a requirement for completing my Masters in Business Administration with concentration in Marketing. The report presents my findings and analyses on the Leather chemical industry of Bangladesh and the project I worked on for the last 10 weeks in ACI Trading Limited.

I am grateful to you and my supervisors; Mr. Mustaque Ahmed, Assistant Professor, IBA and Dr. Azmal Hussain, Executive Director, ACI Trading Limited, for giving me the opportunity to carry out this report.

With kind regards

Sincerely yours,

Mohammad Tawhid Reaz
Roll 037
Batch 38
MBA Program
Institute of Business Administration
University of Dhaka

Acknowledgement

In preparing this report for ACI Trading Limited, I Have received commendable support from all the employees of Leather division of ACI Trading Limited.

I am very much grateful to my organizational supervisor Mr. Azmal Hossain, Executive Director, ACI Trading Limited, to give the opportunity to work on such a challenging project. He has given me all kind official support to complete the report perfectly.

I like to thank Mr. Saiful Azam Kashem, Senior Technical Sales Officer, Mr. Munirul Islam, Technical Sales Officer and Mr. Abul Khayer of ACI trading limited for helping me in every aspect for the completion of the report.

I am very much indebted to my supervisor Mr. Mustaque Ahmed, Assistant Professor, IBA, University of Dhaka for giving me direction at different times to prepare this report. It is his guided supervision that resulted in successful completion and timely submission of the report.

I am thankful to my friend Mr. Fahim bin Asmat, Program Assistant, Leather Sector Business Promotion Council (LSBPC) to let me study their valuable research reports and guide me with his expert opinion.

I also like to thank all the librarians of various libraries to let me utilize their library facilities, all the experts, members of different leather and tanners associations, and all the other interviewees to help me with their resourceful contribution. (N.T: Name of the main interviewees and the organization visited for completing this report is given in Appendix)

June 25, 2006

Mr. Azmal Hossain
Executive Director
ACI Trading Limited

Dear Sir:

Subject: Internship Report on
“To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh”.

It is my pleasure to present this Report on “To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh” as a requirement for completing my Masters in Business Administration (MBA) program with concentration in Marketing. The report presents my findings and analyses on the Leather chemical industry of Bangladesh and the project I worked on for the last 10 weeks in ACI Trading Limited.

I am grateful to you for your organizational co-operation as an organizational supervisor and to my supervisor; Mr. Mustaque Ahmed, Associate Professor, IBA and Prof. Golam Mohammed Chowdhury, Chairman, Placement & Internship Program, Institute of Business Administration for giving me the opportunity to carry out this report.

With kind regards

Sincerely yours,

Mohammad Tawhid Reaz
Roll 037
Batch 38
MBA Program
Institute of Business Administration
University of Dhaka

TABLE OF CONTENTS

| |Pg. |
| | |
|Executive Summary |1 |
| | | |
| | |CHAPTER ONE |3 |
| | | |
|1. |Introduction |3 |
|1.1. |Origin of the Report |3 |
|1.2. |Objective |3 |
|1.2.1 |Broad OBJECTIVE |3 |
|1.2.2 |Specific Objectives |3 |
|1.3 |Scope of the research |4 |
|1.4 |Methodology |4 |
|1.5 |Limitations |5 |
| | | |
| | |CHAPTER TWO |6 |
| | | |
|2. |About The organization |6 |
|2.1. |Company profile at a glance |6 |
|2.1.1 |strategic business units |6 |
|2.1.2 |subsidiaries |6 |
|2.1.3 |executive management |7 |
|2.1.4 |financials (year ending dec, 2004) |7 |
|2.2 |background |8 |
|2.3 |company mission |8 |
|2.4 |company vision |8 |
|2.5 |values |9 |
|2.6 |distribution network |9 |
|2.7 |business units |10 |
|2.7.1 |aci pharmaceuticals |10 |
|2.7.2 |aci crop care and public health division |10 |
|2.7.3 |aci consumer brands |10 |
|2.8 |manufacturing standards |11 |
|2.9 |diversification into new industries |11 |
|2.10 |aci formulation limited |12 |
|2.11 |quality policy |12 |
|2.12 |business performance and growth scenario of aci limited |13 |
|2.13 |aci tarding limited |15 |
| | | |
|2.13.1 |organogram- business management |16 |
|2.13.2 |organogram- business support functions |16 |
|2.13.3 |organogram of aci trading limited (focusing leather chemical division) |17 |
|2.13.4 |mission |18 |
|2.13.5 |strategic objective |18 |
|2.13.6 |indent sales growth from 2002-2005 & budget 2006 |18 |
|2.13.7 |ex-stock sales growth from 2002-2005 & budget 2006 |19 |
|2.13.8 |profit & loss budget 2006 |20 |
|2.13.9 |swot analysis of aci trading limited |21 |
|2.13.10 |business strategy |21 |
|2.13.11 |key differentiating factors that attracts customers |22 |
|2.13.12 |products, customers & supplier base up to 2005 |22 |
|2.13.13 |major development through initiative in 2005 |23 |
|2.13.14 |initiative to be taken in 2006 |23 |
| | | |
| | | |
| | | |
| | |CHAPTER THREE |24 |
| | | |
|3. |leather industry of bangladesh |24 |
| | | |
|3.0 |leather industry background |24 |
|3.0.1 |the leather industry in bangladesh |24 |
|3.0.2 |the beginning of the tannery |24 |
|3.0.3 |post liberation period |25 |
|3.0.4 |present condition |25 |
| | | |
| | |CHAPTER FOUR |27 |
| | | |
|4. |Production |27 |
| | | |
|4.0 |leather sector in the economy of bangladesh |27 |
| | | |
| | |CHAPTER FIVE |31 |
| | | |
|5 |leather export |31 |
| | | |
| | | |
|5.1 |Leather export performation of Bangladesh |31 |
|5.2 |Sales & exports of leather sector enterprise/firms |34 |
|5.2.1 |Sales & exports: leather processing |35 |
|5.2.2 |Sales & exports: footwear |36 |
|5.2.3 |Sales & exports: leather goods |36 |
| | | |
| | |CHAPTER SIX |39 |
| | | |
|6 |Raw materials |39 |
| | | |
|6.1 |Raw materials used by the leather firms |40 |
|6.2 |Raw materials: leather processing |40 |
|6.2.1 |Raw materials for wet blue |40 |
|6.2.2 |Raw materials for crust |41 |
|6.2.3 |Raw materials for finished leather |43 |
|6.2.4 |Raw materials: footwear |43 |
|6.2.5 |Raw materials: leather goods |44 |
|6.3 |Availability of Raw materials in Bangladesh |45 |
| | | |
| | |CHAPTER SEVEN |46 |
| | | |
|7 |Swot analysis |46 |
| | | |
|7.1 |Strengths |46 |
|7.1.1 |Strengths of the firms: Leather Processing |46 |
|7.1.2 |Strengths of the firms: Leather footwear |47 |
|7.1.3 |Strengths of the firms: Leather goods |48 |
| | | |
|7.2 |Weaknesses |50 |
|7.2.1 |Weaknesses of the firms: Leather Processing |50 |
|7.2.2 |Weaknesses of the firms: Leather footwear |51 |
|7.2.3 |Weaknesses of the firms: Leather goods |52 |
| | | |
|7.3 |Opportunities |53 |
|7.3.1 |Opportunities of the firms: Leather Processing |53 |
|7.3.2 |Opportunities of the firms: Leather footwear |54 |
|7.3.3 |Opportunities of the firms: Leather goods |55 |
| | | |
| | | |
|7.4 |Threats |56 |
|7.4.1 |Threats of the firms: Leather Processing |56 |
|7.4.2 |Threats of the firms: Leather footwear |57 |
|7.4.3 |Threats of the firms: Leather goods |59 |
| | | |
| | |CHAPTER EIGHT |60 |
| | | |
|8 |Production Stages |60 |
| | | |
|8.1 |Production Stages in leather processing industry |60 |
|8.2 |Production Stages in leather goods & footwear industry |61 |
|8.3 |description of the various stages of leather processing |62 |
|8.3.1 |wet blue section |62 |
|8.3.2 |crust section |63 |
|8.3.3 |finishing section |64 |
| | | |
| | |CHAPTER NINE |65 |
| | | |
|9.0 |Leather Chemicals & Accessories |65 |
| | (Data collected from Primary survey) | |
| | | |
|9.1 |chemicals & accessiories: leather Sector |66 |
|9.1.1 |Chemicals: Leather Processing: Wet-Blue |66 |
|9.1.2 |Leather processing: Crust Leather |68 |
|9.1.3 |Leather processing: Finished Leather |69 |
|9.2 |chemical and accesiories : footwear |70 |
|9.3 |chemical and accesiories : leather goods |72 |
| | | |
| | | |
| | |CHAPTER TEN |73 |
| | | |
|10.0 |major players of the leather chemical industry |73 |
| | (Data collected from Primary survey) | |
| | | |
|10.1 |Market share of major beam house chemical suppliers |73 |
| |(Wet Blue) | |
|10.1.1 |Total quantity wise market share (Wet Blue) |76 |
|10.2 |Market share of chemical suppliers (wet blue to crust) |77 |
|10.2.1 |Total quantity wise market share (crust) |79 |
| | | |
| | | |
| | | |
| | | |
|10.3 |Market share of chemical suppliers (crust to finish) |80 |
|10.3.1 |Total quantity wise market share (Finishing) |80 |
| | | |
| | | |
| | |CHAPTER ELEVEN |81 |
| | | |
|11 |findings and recommendations |81 |
| | | |
|11.1 |problems of aci trading and stahl inleather chemical marketing |83 |
| | | |
| |appendix A1 |85 |
| |appendix A2 |91 |
| |appendix A3 |92 |
| |appendix A4 |95 |
| |appendix A5 |96 |
| |appendix A6 |98 |
| |appendix A7 |107 |
| |appendix b |111 |
| |appendix c1 |113 |
| |appendix c2 |117 |
| | | |
| |references |118 |
| | | |

Executive Summary

The history of the leather sector and tannery industry in Bangladesh started when R.P Saha set up first tannery in Narayanganj back in 1940. It was later shifted to Hazaribagh area of Dhaka, which turned into a location that now accommodates a large number of tannery units of the whole country. At present, the leather sector of Bangladesh has 220 processing units located at different parts of the country (mainly in Hazaribagh, Dhaka). But only 28 tanneries are in operation, among them 20 are operating in crust section and 8 are in finishing section.

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. Bangladesh currently produces about 20.0 million sq. meters of leather and leather goods per year. 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. According to Leather Sector Census Study,2005 total production of wet blue leather in 2003 was 3,50,60,000 square feet, crust leather 6,61,72,000 square feet, finished leather 13,48,20,000 feet, whereas 1,67,66,000 pairs of leather footwear were produced in 2003 and 766000 pieces of leather goods were produced in 2003. In 2004, 247 million square feet raw hides were available for the leather industry, among which cow and buffalo hides were 184 million square feet and goat and sheep skin were 6 million sq.ft. According to a report published by FAO in 2003 the numbers of bovine animals in Bangladesh were 2,48,30,000 in 2002; the number of sheep and lambs were 11,43,000 and there were 3,44,00,000 goats and kids in Bangladesh.

Bangladesh has exported leather and leather goods worth 220.93 Mn. US$ in 2004-2005, whereas it has exported 211.41 Mn. US$ valued leather and leather goods in 2003-04. The export target for 2005-06 is 235 Mn.US$ in which the export performance achieved in July2005-November2005 was 96.21Mn. US$. Total export of Bangladesh in 2004-05 was 8654.52Mn. US$, so the contribution of the leather sector export to the total export was 2.55% in 2004-05. The main exporting countries are Hong Kong, Italy, Japan, Vietnam, Republic of Korea, Taiwan etc.

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, Kushtia, 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. 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. 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.

There are hundreds of importers, merchants and suppliers are supplying chemicals required for the whole leather industry. The processing of raw hides to finished leather mainly classified into three different stages 1) Wet Blue, 2) Crust and 3) Finishing section.

In 2003, 3202MT (worth 8,46,23,000Tk) leather chemical used for wet blue leather stage in Bangladesh. In which 1956MT (worth 2,06,85,000Tk) was local made and 1274MT (worth 6,39,38,000Tk) was imported. In the same year 901MT (worth 119041000Tk) chemical used in crust stage, in which 885MT was foreign supply and 16MT was local supply. On the other hand 130 MT (worth taka 46468000) chemical used for finishing section, in which 120MT collected from outside and 10MT was collected from local sources.

The major chemical suppliers are Germany, Holland, UK, Italy, and India. Recently local merchants are also importing from China, Singapore etc.

In addition of finding out the whole scenario of the leather sector of Bangladesh, this study mainly focused to identify the major chemical suppliers in the different stages of leather processing. To find out the main chemicals required in various stages of finished leather production was also the prime consideration of this study. The market share contributed by the suppliers in various stages was the main finding of this report. Along with primary and secondary survey, in depth interview and Expert opinions have been taken for the final modification and recommendation of the whole research. Why the big suppliers are loosing their market and why small and new suppliers are doing well and getting the market acceptability has also been discussed in this research material.

Chapter-One

Introduction

1.1. Origin of the Report

This internship report was prepared as a compulsory requirement for the MBA degree. From the program office of the Institute of Business Administration (IBA), I was placed as an intern in ACI trading limited. The project is titled “To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh”. The project was assigned to me by my supervisor at ACI Trading Limited, Mr. Azmal Hossain, Executive Director of ACI Trading Limited. It was overseen by my faculty advisor Mr. Mustaque Ahmed, Associate Professor, Institute of Business Administration, University of Dhaka.

1.2. Objective

1.2.1 Broad Objective

To understand the current market situation and the future business prospect of the leather chemical industry of Bangladesh from the viewpoint of ACI Trading limited.

1.2.2 Specific Objectives

To achieve the broad objective the following specific objectives are required to be achieved.

1. Identify the major market players of leather chemicals (especially in value addition section). 2. To analyze the ins and outs of the tannery industry of Bangladesh. 3. To compare the marketing strategies of all the major chemical suppliers in Bangladesh and to find which marketing strategy the clients prefer. 4. To find out the proper marketing strategy for ACI Trading limited to increase their market share in crust and finishing section.

1.3. Scope of the Research

This report is basically a requirement of ACI trading limited to understand the details of tannery industry in Bangladesh. ACI trading limited is the agent of Stahl (Holland), a well renowned chemical supplier in the world. From the ACI’s point of view, they want to know their competitors and how they are marketing in Bangladesh.

To know the major leather chemical market players in Bangladesh, the tannery factories and their leather technologists are the main focus of this research. All the organized bodies related to leather sector such as Bangladesh Chemical Importers and Merchants Association, Bangladesh Tanners Association, Bangladesh Finished Leather, Leather goods and Footwear Exporters Association, Bangladesh Leather Manufacturers Association, Bangladesh Leather Importers Association are the major considerations of this research.

Leather Sector Business Promotion Council (LSBPC) was the prime source of all research papers necessary for this study.

1.4. Methodology

To find out the major leather chemical market players in Bangladesh, I basically separated the respondents in three different divisions 1) Leather Technologists and employees of various tanneries, 2) Members of chemical importers and merchants association and 3) The leather chemical retailers or whole sellers.

In depth interview of the first two respondent divisions have been scrupulously scrutinized. Both formal question answer session and informal discussions were the part of this research. Primary interviews of the third respondent sections have been made, which was a questionnaire based interview. Convenient sampling method was applied for selecting the interviewees.

All the findings have been verified by numerous experts, leather technologists, and well renowned leather chemical merchants of Bangladesh.

Although, there are not enough secondary materials available in Bangladesh, Leather Sector Business Promotion Council (LSBPC) of Bangladesh has been repeatedly visited and they helped me by providing all their necessary secondary materials.

1.7. Limitations

1. The main problem in dealing with leather sector is that, there are not enough secondary research materials and published information available in Bangladesh.

2. All the associations other than Bangladesh Finished Leather, Leather goods and Footwear Exporters Association are not well organized to give the exact information; most of them even don’t have their internal annual reports.

3. Since the whole leather sector of Bangladesh is shrinking day by day, the researchers are not focusing this sector well enough comparing to the booming sectors of Bangladesh like RMG.

Chapter-Two

About The Organization

2.1 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 :

2.1.1 Strategic Business Units: • Pharmaceuticals • Consumer Brands • Agribusiness- a) Crop Care and Public Health b) Animal Health
2.1.2 Subsidiaries: • ACI Trading Limited • ACI Formulation Limited • Apex Leather crafts Limited • ACI Salt Limited

2.1.3 Executive Management:

• Mr. M Anis-Us-Dowla Chairman • Dr. Arif-Dowla Managing Director • Mr. M Mohibuz Zaman Chief Operating Officer, Pharmaceuticals. • Dr. F H Ansarey Executive Director, Agribusiness. • Mr. Azmal Hossain Executive Director, Trade. • Mr. Syed Alamgir Executive Director, Consumer Brands. • Mr. Muallem A Choudhury Executive Director, Finance & Planning. • Mr. Towfiqur Rahman General Manager, Operation. • Mr. Priyatosh Datta General Manager, Quality Assurance. • Ms. Sheema Abed Rahman General Manager, Corporate Service. • Mr. Pradip Kar. Chowdhury Financial Controller

2.1.4 Financials (Year Ending December 2004):

▪ Authorized Capital: Taka 500 Million. ▪ Paid-Up Capital: Taka 161.70 Million. ▪ Sales: Taka 2,558 Million. ▪ Numbers of Employees: 2161

2.2 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.

2.3 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.

2.4 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.

2.5 Values: • Quality • Customer Focus • Fairness • Transparency • Continuous Improvement

2.6 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.

2.7 Business Units:

2.7.1 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.
2.7.2 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.

2.7.3 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.

2.8 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.

2.9 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.

2.10 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.

2.11Quality 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.
2.12Business Performance and Growth Scenario of ACI Limited: [pic] Figure No: 2.1

[pic] Figure No: 2.2
[pic] Figure No: 2.3
2.13 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

2.13.1 Organogram – Business Management

[pic]

Figure No: 2.4

2.13.2 Organogram – Business Support Functions

[pic]

Figure No: 2.5

2.13.3 Organ gram of ACI Trading Limited (Focusing Leather Chemical Division)
[pic]

Figure 2.6

2.13.4 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.

2.13.5 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.

2.13.6 Indent Sales Growth from 2002-2005 & Budget 2006

|Growth % |
|2003 |31.77 |
|2004 |57.08 |
|2005 |8.31 |
|2006 |20.61 |

|Reason for variance |UCB Film not contributed although budgeted in ’05 |
|05 |Allocation & price constraint of ExxonMobil Plastics for 3 months |
| |Scares of Foreign Exchange & restriction on L/C by Central Bank |
|Assumption for Bud’06|Increase customer & product base |
| |New initiative for aggressive growth |

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

|Reason for variance’05|Less ExxonMobil Plastics sales due to strategic import |
| |Stahl sales was behind due to recession in Leather Industry |
|Assumption for Bud’06 |To increase ExxonMobil Plastics sales with calculative risk |
| |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 |

2.13.8 Profit and Loss Budget 2006

2.13.9 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

2.13.10 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

2.13.11 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

2.13.12 Products, Customers & Supplier Base Up to 2005

| |Chemical |Textile |Leather |Total |
|Total Product |60 |35 |70 |165 |
|base | | | | |
|Total customer |70 |36 |60 |166 |
|Total supplier |29 |4 |2 |35 |

2.13.13 Major Development through initiative in 2005

1) Re-start of Ex-stock sales of ExxonMobil Plastics 2) Increased customer & Product base through trials for Textile Auxiliaries 3) Introduction of C&TP from Stahl India 4) Appointed a Retailer for Stahl Leather Chemical sales 5) Irregularities caused by Sales Manager, Leather (Mr Mizan) mostly adjusted with customer satisfaction 6) Sourcing PET from China 7) Sourcing API from India & China 8) Measurable & Comparable items Software development 9) Weekly sales Meeting with all SBU with EDT 10) Study on Textile Auxiliaries Market through Internee

Projects/Suppliers looked for

1) H2O2 2) Paints 3) Bulb & Tube Lights 4) Dry Cell Battery 5) Adhesive Tapes 6) Lady Napkin

2.13.14 Initiative to be taken in 2006

1. Value Addition – Textile Auxiliaries 2. ICI Paints India (J.V.) 3. Value Addition for Beam House Chemicals for leather 4. More trials of Text. & Leather Chemicals to increase customer & Product base 5. Dyes & Optical Brightener sourcing – India, China 6. Introduction more Traders for Textile Aux. credit sales 7. Recruit sales person for Chemical & Textile division 8. Implementation of Program for Measurable & Comparable items related to sales performance 9. Engage two Internee for Chemical & Leather Market Study 10. Interaction with knowledgeable & experienced persons from Faculties and Trade 11. Aggressive Plan to become a big Trading House by 2008

Chapter-Three

Leather Industry of Bangladesh

3.0 Leather Industry Background

3.0.1The 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.

3.0.2 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.

3.0.3 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.

3.0.4 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) - 194 units
Dhaka (Dhamrai/Savar) - 3 ”
Gazipur (Kaliakoir) - 1 ”
Jessore (Noapara) - 1 ”
Chittagong - 18 ”
Jamalpur - 1 ”
Rangpur - 1 ”
Khulna - 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.

Chapter-Four

Production

4.0 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 |Unit (Million Sq. Meter) |
|1993-94 |14.60 |
|1994-95 |15.00 |
|1995-96 |15.90 |
|1996-97 |11.95 |
|1997-98 |12.12 |
|1998-99 |16.21 |
|1999-2000 |18.31 |
|2000-2001 |19.91 |
|2001-2002 |17.30 |
|2003 |22.85* |
|2004 |20.78** |

Source: 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)
|Year |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

|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 the Organization |Annual Production (SFT/Month) |Product |
|Apex Tannery |1700,000 |Crust, Printed Bag, Semi Aniline, C\G Glaze Kid |
|Bay Tannery |600,000 |Crust, Resin Coat, Semi Aniline C\G, Lining, Brush Off,|
|SAF Industries |600,000 |Crust, Semi Aniline C\G, Glaze Mild, Lining, |
|Bata Shoe co (BD) ltd |400,000 |C/G, Box Sandle, Semi Aniline, Creasy Horse, Lining |
|Bengal Leather Complex |500,000 |Polishable Finish, Crust, Semi Aniline, |
|Dhaka Hide & Skins |1400,000 |Crust, Milled Bag, Repolisable, S/A |
|H&H /H.B Tannery |500,000 |Crust, Glaze Kid, C/G, Resin Goat, 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;

Source: Magazine, Dhaka International Leather Fair 2005

|Table 4.6: Number of Animal Population in Bangladesh (thousand head) |
|Types |

Chapter-Five

Leather Export

5.01 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$) |% Increase or Decrease |
|July 1999- June2000 |246.89 |- |
|July 2000- June2001 |290.68 |+17.76% |
|July 2001- June2002 |252.49 |-13.13% |
|July 2002- June2003 |229.72 |-9.01% |
|July 2003- June2004 |211.41 |-7.97% |
|July 2004- June2005 |220.93 |+4.50% |
|Export Target for |235.00 | |
|July 2005- June2006 | | |
|Export Performance for July 2004-Nov 2005 |84.37 |- |
|Export Performance for July 2005-Nov 2006 |96.21 |+14.03% |

Source: Export Promotion Bureau of Bangladesh.

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Table 5.2: Percentage of the Leather Export to the Total export of Bangladesh:

(Value in million dollar)
|Year |Total Export |Leather, Leather |Leather, Leather |
| | |Footwear and Leather Goods export |Footwear and Leather Goods as % of |
| | | |Total Export |
|1998-99 |5312.86 |219.39 |4.39 |
|1999-2000 |5752.20 |246.89 |4.30 |
|2000-2001 |6467.30 |290.68 |4.50 |
|2001-2002 |5986.09 |252.49 |4.22 |
|2002-2003 |- |229.72 |- |
|2003-2004 |7602.99 |211.41 |2.78 |
|2004-2005 |8654.52 |220.93 |2.55 |
|2005-2006 |10159.20* |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 |Country |Export |
|Australia |279 |Indonesia |153 |Singapore |137 |
|Austria |2 |Italy |29791 |S. Africa |243 |
|Belgium |65 |Japan |10723 |Spain |5701 |
|Benin |21 |Korea DPR. |39 |Sri Lanka |11 |
|Brazil |745 |Korea Rep. |20151 |Taiwan |7953 |
|Cambodia |426 |Local Sale |540 |Thailand |742 |
|Canada |35 |Mexico |1123 |Turkey |8 |
|China |6049 |Myanmar |21 |U.A.E |23 |
|Czech Rep. |5 |Netherlands |634 |U.K |1059 |
|East Timor |13 |Norway |37 |U.S.A |645 |
|El Salvador |50 |Oman |10 |Ukraine |69 |
|Finland |1 |Pakistan |62 |Uruguay |575 |
|France |753 |Philippines |166 |Venezuela |40 |
|Germany |189 |Poland |3767 |Vietnam |8681 |
|Greece |26 |Portugal |51 | | |
|Hong Kong |54584 |Qatar |6 | | |
|Hungary |4 |Samoa |5 | | |
|Total |158621 |

Source: Foreign Trade Statistics of Bangladesh, 2001-2002

Table 5.4: Export of Leather, Leather Footwear and Leather Goods

Million US$
|Year |Leather |Leather Footwear |Leather Goods |Total |
| |Export |% of Total |Export |% of Total |Export |% of Total | |
|1998-1999 |168.25 |76.69% |46.55 |21.22% |4.59 |2.09% |219.39 |
|1999-2000 |195.05 |79.00% |48.26 |19.55% |3.58 |1.45% |246.89 |
|2000-2001 |253.93 |87.36% |33.63 |11.57% |3.12 |1.07% |290.68 |
|2001-2002 |207.33 |82.1% |41.29 |16.4% |3.87 |1.5% |252.49 |
|2002-2003 |191.23 |83.2% |35.06 |15.3% |3.43 |1.5% |229.72 |
|2003-2004 |211.41 |79.50% |50.86 |19.13% |3.64 |1.37% |265.91 |

Bangladesh Export Promotion Bureau

5.02 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 firms’ 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 |0 |437389 |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 |0 |100 |100 |
|Total |23.01 |76.99 |100 |
|Source: Leather Sector Census Study, LSBPC, 2005 |

5.2.1 Sales and Exports: Leather Processing

Leather processing firms’ 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 January-December 2003).

|Table5.7 : Annual Volume of Sales and Exports by the Leather Processing Firms |
|(in 000 sqf.) |
|Product |Local Sales |Total |Total |Total Sales Volume |
|Category | |Local Sales |Exports |in sf. |
| |Direct |Through Agent | | | |
|Wet Blue |35060 |0 |35060 |0 |35060 |
|Crust |5281 |3400 |8681 |57491 |66172 |
|Finished |4814 |0 |4814 |130006 |134820 |
|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 |Total |Total |Total Sales Volume |
| | |Local Sales |Exports |(in |
| | | | |Tk. 000) |
| |Direct |Through Agent | | | |
|Wet Blue |1959300 |0 |1959300 |0 |1959300 |
|Crust |318850 |220000 |538850 |4141826 |4680676 |
|Finished |349450 |0 |349450 |11440528 |11789978 |
|Total |2627600 |220000 |2847600 |15622354 |18429954 |
|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 |Total |Total Sales value |
| | |Local Sales |Exports | |
| |Direct |Through Agent | | | |
|Wet Blue |100.0 |0 |100.0 |0 |100 |
|Crust |6.81 |4.70 |11.51 |88.49 |100 |
|Finished |4.58 |0 |2.96 |97.04 |100 |
|Total |18.36 |1.54 |15.42 |84.58 |100 |
|Note: Data for the period Jan.-Dec.2003. |
|Source: Leather Sector Census Study, LSBPC, 2005 |

5.2.2 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 |Total |Total |Total Sales |
| | |Local Sales |Exports | |
| |Direct |Through Agent| | | |
|Volume (pair) |8435500 |0 |8435500 |8309750 |16745250 |
|Value in Tk.’000 |2456349 |0 |2456349 |1682140 |4138489 |
|Note: Data for the period Jan.-Dec.2003. |

|Table5.11: Annual Sales and Exports by the Leather Footwear Firms (%) |
| |Local Sales |Total |Total |Total Sales |
| | |Local Sales |Exports | |
| |Direct |Through Agent | | | |
|Volume (pair) |50.38 |0 |50.38 |49.62 |100 |
|Value in Tk.’000 |63.39 |0 |59.35 |40.65 |100 |
|Source: Leather Sector Census Study, LSBPC, 2005 |

5.2.3 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 |Total |Total |Total Sales |
| | |Local Sales |Exports | |
| |Direct |Through Agent | | | |
|Volume (pcs) |0 |0 |0 |764100 |764100 |
|Value in Tk.’000 |0 |0 |0 |437389 |437389 |
|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 `000’ US$)

| |2002-2003 |2003-2004 |
|Countries | | |
| |Value |% of Total |Value |% of Total |
|Hongkong |69039 |36.10 |72026 |34.06 |
|Italy |38621 |20.20 |43601 |20.62 |
|Koria Rep. |13736 |7.18 |19779 |9.36 |
|Japan |15029 |7.86 |15188 |7.18 |
|Taiwan |11556 |6.04 |11850 |5.61 |
|Vietnam |4928 |2.58 |11500 |5.44 |
|Spain |6821 |3.57 |9709 |4.59 |
|China |5932 |3.10 |7655 |3.62 |
|Mexico |2027 |1.06 |2160 |1.02 |
|UK |1507 |0.79 |1228 |0.58 |
|France |1779 |0.93 |1106 |0.52 |
|USA |983 |0.51 |631 |0.30 |
|Germany |818 |0.43 |549 |0.26 |
|Others |18450 |9.65 |14430 |6.84 |
|Total |191226 |100.00 |211412 |100.00 |

Source: EPB Export Statistics

Table 5.14: Company wise Export of Leather Goods & Footwear from Bangladesh
(Export Period: 01/01/2005 ~ 24/11/2005)

|Name of the Company |Value in US$ |
|Legacy Footwear Ltd. |5508573.5 |
|Jennys Shoes Ltd. |3775499.81 |
|Picard Bangladesh Ltd. |3130611.97 |
|Leatherex Footwear Ltd. |1631819.61 |
|H.N Shoes Ltd. |1054264.91 |
|Cosmic Jute & Leather Ind. Ltd. |884406.75 |
|Shampan Shoes Ltd. |771231.60 |
|Savar Ind. Pvt. Ltd. |507352.22 |
|Bangladesh Export Ltd. |432373.06 |
|Landmark Footwear Ltd. |221137.63 |
|Vannara Corporation Ltd. |219053.3 |
|RMM Leather Ind. Ltd. |164923.28 |
|Apex Leather Craft Fashion |149779.03 |
|Bani Footex |131864.3 |
|Bay Footwear |131660 |
|Advanced Ind. Management Co. Ltd. |103890.61 |
|Malim BD. Co. Ltd. |85356.65 |
|MAMC |84174.50 |
|Surma Leather & Footwear Ind. Ltd. |74735.5 |
|Sonali Ansh Ind. Ltd. |68737.68 |
|Apex Footwear Ltd. |63310 |
|Legacy Footwear Ltd. |61119.88 |
|Hara Leather |46843 |
|Rexus Leather Club |40270 |
|Crown Leather Products Ltd. |29219 |
|Creative Products |27365 |
|Anowara Leather |14520 |
|Tropical Shoes Ltd. |7560 |

Source: Leather goods & Manufacturers & Exporters Association of Bangladesh.

Chapter-Six

Raw Materials

6.1 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 |1146399 |38236 |1184635 |
| |etc. | | | |
|Leather Goods |Finished & lining leather |90466 |0 |90466 |

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 |100 |0 |100 |

Source: Leather Sector Census Study, LSBPC, 2005

6.2 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.

6.2.1 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 |
|Hide and Skin |Local |Foreign |Total |
| |Quantity |Value in Tk.000 |Quantity |Value in Tk.000| |Total Value |
| |(000pcs) | |(pcs) | |Quantity |Tk.000 |
| | | | | |(000pcs) | |
|Cow |856 |1074032 |0 |0 |856 |1074032 |
|Buffalo |107 |88835 |0 |0 |107 |88835 |
|Goat |1035 |97495 |0 |0 |1035 |97495 |
|Sheep |115 |12034 |0 |0 |115 |12034 |
|Cow/Buffalo head |41 |3866 |0 |0 |41 |3866 |
|Camel |0 |0 |4 |5040 |4 |5040 |
|Total |2154 |1276262 |4 |5040 |2158 |1281302 |

Source: Leather Sector Census Study, LSBPC, 2005

|Table 6.4 : Yearly Raw Materials used for Producing Wet Blue (%) |
|Raw materials for Wet |Local Value |Foreign Value |Total Value |
|blue |(%) |(%) |(%) |
|Cow |100 |0 |100 |
|Buffalo |100 |0 |100 |
|Goat |100 |0 |100 |
|Sheep |100 |0 |100 |
|Cow/Buffalo head |100 |0 |100 |
|Camel |0 |100 |100 |
|Total |99.60 |0.40 |100 |

Source: Leather Sector Census Study, LSBPC, 2005

6.2.2 Raw Materials for Crust

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) was imported from South Africa, Australia, and Brazil .

|Table 6.5 : Yearly Raw Materials used for Producing Crust Leather |
|Raw materials |Local |Foreign |Total |
|for crust | | | |
| |Quantity |Value in Tk.000|Quantity |Value in Tk.000 |Quantity |Total Value |
| |(000sqf) | |(000 sqf) | |(000sqf) |Tk.000 |
|Cow |23358 |1524583 |530 |33300 |23888 |1557884 |

|
|Buffalo |11210 |447936 |0 |0 |11210 |444480 |

|
|Goat |11016 |603330 |0 |0 |11016 |603330 |

|
|Sheep |1848 |161580 |0 |0 |1848 |161580 |

|
|Others |240 |19200 |0 |0 |240 |19200 |

|
|Camel |0 |0 |100 |8000 |100 |8000 |

|
|Total |47672 |2756629 |630 |41300 |48302 |2786474 |

|Source: Leather Sector Census Study, LSBPC, 2005

|Table 6.6: Yearly Raw Materials used for Producing Crust (%) |
|Raw materials for crust |Local Value |Foreign Value |Total Value |
| |(%) |(%) |(%) |
|Cow |97.86 |2.14 |100 |
|Buffalo |100 |0 |100 |
|Goat |100 |0 |100 |
|Sheep |100 |0 |100 |
|Others |100 |0 |100 |
|Camel |0 |100 |100 |
|Total |98.52 |1.48 |100 |

6.2.3 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 |
|Raw materials for |Local |Foreign |Total |
|finished | | | |
| |Quantity |Value in Tk.000 |Quantity |Value in Tk.000|Quantity |Total Value |
| |(000sqf) | |(000 sqf) | |(000sqf) |Tk.000 |
|Cow Crust |55488 |4396440 |400 |34000 |55888 |4396840 |

|
|Buffalo Crust |8822 |494124 |0 |0 |8822 |494124 |

|
|Goat Crust |23019 |1979055 |0 |0 |23019 |1979055 |

|
|Sheep Crust |5412 |558900 |0 |0 |5412 |558900 |

|
|Total |92741 |7428519 |400 |34000 |93141 |7462519 |

|Source: Leather Sector Census Study, LSBPC, 2005

|Table 6.8 : Yearly Raw Materials used for Finished Leather (%) |
|Raw materials for |Local Value |Foreign Value |Total Value |
|finished |(%) |(%) |(%) |
| Cow Crust |99.23 |0.77 |100 |
| Buffalo Crust |100 |100 |100 |
| Goat Crust |100 |100 |100 |
| Sheep Crust |100 |0 |100 |
| Total |99.55 |0.45 |100 |

6.2.4 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 |
|Name of raw materials for |Local |Foreign |Total |
|footwear | | | |
| |Quantity sqf. 000 |Value in Tk. |Quantity |Value |Total quantity |Total value Tk. |
| | |000 |sqf. 000 |in Tk. 000 | |000 |
|Finished Leather |9932 |823434 |225 |25350 |10157 |848784 |
|Lining Leather |2944 |134023 |506 |8960 |3450 |142983 |
|Artificial Sole |1806 |155317 |855 |3266 |2661 |158583 |
|In-sole Leather |639 |33063 |45 |660 |684 |33723 |
|Others |7 |562 |0 |0 |7 |562 |
|Total |15328 |1146399 |1631 |38236 |16959 |1184635 |

|Table6.10 : Raw Materials used for Footwear (%) |
|Raw materials for Footwear |Local Value |Foreign Value |Total Value |
| |(%) |(%) |(%) |
|Finished Leather |97.01 |2.99 |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 |0 |100 |
|Total |96.77 |3.23 |100 |

Source: Leather Sector Census Study, LSBPC, 2005

6.2.5 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 |
|Raw materials for |Local |Foreign |Total |
|crust | | | |
| |Quantity |Value in Tk.000 |Quantity |Value in |Quantity |Total Value |
| |(000sqf) | |(000 sqf) |Tk.000 |(000sqf) |Tk.000 |
|Finished Leather |1365 |87366 |0 |0 |1365 |87366 |
|Lining Leather |50 |3100 |0 |0 |50 |3100 |
|Total |1415 |90466 |0 |0 |1415 |90466 |

Source: Leather Sector Census Study, LSBPC, 2005

6.3 Availability of raw material in Bangladesh

Table 6.12
| |Total Number (Head) |Hides & Skins (piece) |Hides & Skins (Sq.ft) |
|Cow/Buffalo/Calf |24.31 million |5.31 million |116.00 million |
|Goat/Sheep |32.70 million |19.70 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 |Chittagong |Rajshahi |Khulna |Total |
|Cow/Buffalo/Calf |13,78,700 |12,60,500 |15,90,800 |10,72,700 |53,02,700 |
|Goat/Sheep |39,40,000 |43,37,000 |55,16,000 |59,07,000 |1,97,00,000 |

Source: 1. Bureau of Statistics 2. Livestock Census 3. ITC 4. FAO

Chapter-Seven

SWOT Analysis

7.1 Strengths

7.1.1 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% |

[pic]
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).

7.1.2 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% |

[pic]
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.

7.1.3 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% |

[pic]

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.

7.2 Weaknesses

7.2.1 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% |

[pic]
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.

7.2.2 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% |

[pic] 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.

7.2.3 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% |
| | |

[pic] 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.

7.3 Opportunities

7.3.1 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% |

[pic]

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.

7.3.2 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 |Percent of Total Firms |
|Stable Global Demand |60% |
|Conducive Industrial Policy |58% |
|Favourable Business Environment |57% |
|Cheap Supply of Labour |51% |
|Duty Free Access in Major Markets |51% |

[pic] 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.

7.3.3 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 |Percent of Total Firms |
|Conducive Industrial Policy |66% |
|Favourable Business Environment |60% |
|Cheap Supply of Labour |58% |
|Stable Global Demand |58% |
|Duty Free Access in Major Markets |51% |

[pic]
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.

7.4 Threats

7.4.1 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 |Percent of Total Firms |
|Disruption of Electricity |74% |
|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% |

[pic] 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.

7.4.2 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 |Percent of Total Firms |
|Disruption of Electricity |74% |
|Hartals, strike, and other disturbances |68% |
|External Competition |68% |
|Environment consciousness in Importing Countries |60% |
|Shortage of Water Supply |58% |

[pic]
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.

7.4.3 Threats to the Firms: Leather Goods

In line with the leather processing and footwear sectors, ‘disruption of electricity’ 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 |Percent of Total Firms |
|Disruption of Electricity |74% |
|Lack of Trained Labour |64% |
|External Competition |62% |
| |60% |
|Hartals, strike, and other disturbances | |
|Environment consciousness in Importing Countries |58% |

[pic]
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.

Chapter-Eight

Production Stages

8.1 Production Stages in Leather Processing Industry

8.2 Production Stages in Footwear and Leather Goods Industries

8.3 Description of the various Stages of Leather Processing:

8.3.1Wet-Blue Section:

|Name of operation |Objectives |Generic names of chemicals |Chemicals Required |
|Curing/ Preservation |Dehydration | | |
|Soaking |Restore Moisture to original condition |Soaking Preservatives |Sodium sulfide, sodium hydroxide, sodium |
| | |/ Enzymes |tetra sulfide Decaltal types, formic acid,|
| | | |bi sulfite solution, sodium bi sulfite. |
|Liming and Unhairing |Removing the hair and opening up of fibre |Liming Auxiliaries |Sodium sulfide, Sodium hydrosulfide. |
| |structure for tannage | |Hydrated lime powder (calcium hydroxide). |
| | | |Seldom slaked lime (lime paste). Sodium |
| | | |chlorite |
|Washing after liming |Cleaning for fleshing and start delime by | | |
| |thorough washing | | |
|Fleshing |Removing fat and surplus flesh to give a | | |
| |Cleaner surface for better penetration of | | |
| |the subsequent chemicals | | |
|Deliming |Replacing strong alkali, Reducing Swelling|Deliming agents |Hydrochloric acid, Sulfuric acid, Formic |
| | | |acid, acetic acid, Lactic acid, Boric |
| | | |acid, Ammonium chloride, Sodium meta by |
| | | |sulphate |
|Bating |Producing a smooth, clean grain by enzyme |Bating Agents |Enzymes, wood flour as carrier substance, |
| |action, removing unwanted proteins | |ammonium salts, |
| | | |neutral salts as buffering and deliming |
| | | |agents |
|Pickling |Prepaing pelt for chrome tanning by |Pickling Agents |Formic Acid |
| |acidification | | |

|Name of operation |Objectives |Generic names of chemicals |Chemicals Required |
|Chrome Tanning |Making Leather resistant to purification, |Tanning Agents |Chrome Tanning Agents, (chromium(III) |
| |Increasing Thermal Stability | |salt, ca. |
| | | |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

8.3.2 Crust Section:

|Name of operation |Objectives |Generic names of chemicals |Chemicals Required |
|Neutralization |Preparing Tanned leather for retannage |Neutralizing Agents |Sodium Carbonate, Borax |
| | | |Sodium Bicarbonate, Ammonium Bicarbonate, |
| | | |Sodium (Sulphite, Thiosulphate, acetate, |
| | | |formate), Calcium Formate etc. |
|Retanning |Using suitable chemicals for the final |Retanning Agents |Phenol, Nepthalane, B- Napthole, Aromatic |
| |product requirement | |Ether |
|Dyeing |To impart requisite colour on leather |Dyes | |
|Fat liquoring |To soften the leather |Fat Liquoring Agents |Untreated oils, fats and waxes Emulsified |
| | | |oils and fats Chlorinated oils and fats |
| | | |Sulfonated oils, fats and fatty alcohols, |
| | | |Oxidation products of oils and fats |

|Name of operation |Objectives |Generic names of chemicals |Chemicals Required |
|Setting Out |Removing wrinkles as much as possible and | | |
| |mechanically held water before drying | | |
|Drying |Removal of water without damaging Leather | | |
| |quality | | |
|Conditioning |Controlled addition of moisture | | |
|Staking/Vibration |Soften by separating the fibres | | |
|Toggle Drying |Complete the drying under streching | | |
| |condition | | |
|Trimming |Removal of irregular edges, damaged | | |
| |portion | | |

8.3.3 Finishing Section:

|Name of operation |Objectives |
|Sorting |To examine Quality and select different grades for end products |
|Buffing |Up gradation of lower grade leather through shaping/ buffing of grain |
| |surface |
|Finishing |Producing the finished film |
|a. |Ground Coat |Providing suitable base for better adhesion and makes the leather surface |
| | |smooth, uniform and impermeable |
|b. |Season Coat |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 |
|c. |Top Coat |Providing required degree of gloss, feel handle and final appearance of the |
| | |finished leather |
|Pressing |Providing smooth or embossed/ printed surface with ironing/ plating |
|Milling |Mechanically softenning of the semifinised leather |
|Final Gradation |Examine quality and allocate each finished piece of grade |
|Measuring | |

Source: Leather Sector Census Study, LSBPC, 2005
& Pocket Handbook of Leather Technology, 2004, BASF

Chapter-Nine

LEATHER CHEMICALS & ACCESSORIES

(Data Collected from Secondary Survey)

9.0 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) |
|Production type |Local |Foreign |Total, Value |
| |Value in Tk.000 |Value in Tk.000 |in Tk.000 |
|Wet-Blue |20,685 |63,938 |84,623 |
|Crust Leather |2322 |116720 |119042 |
|Finished Leather |1679 |44791 |46469 |
|Footwear |12660 |42609 |55269 |
|Leather Goods |1636 |18 |1654 |
|Total |38982 |268076 |307058 |

Source: Leather Sector Census Study, LSBPC, 2005

|Table 9.2: Distribution of Chemicals used by the firms of the Leather Sector (%) |
|Production type |Local Value |Foreign Value |Total 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) |
|Types of Production |Local |Foreign | |
| | | |Total |
| |Value in Tk.000 |Value % of Total|Value in Tk.000 |Value% |Value in Tk.000 |Value% |
| | | | |of Total | |of Total |
|Footwear |73961 |80.76 |17616 |19.24 |91577 |100 |
|Leather Goods |237 |27.40 |628 |72.60 | | |
| | | | | |865 |100 |
|Total |74198 |80.30 |18244 |19.70 |92442 |100 |

Source: Leather Sector Census Study, LSBPC, 2005

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.

9.1 Chemicals: Leather Processing

9.1.1 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

|Name of Chemicals |Local |Foreign |Total |
| |Quantity (MT) |(Value in Tk.000) |Quantity (MT) |(Value in Tk.000) |Quantity (MT) |(Value in Tk.000) |
|Sodium chloride |1630.84 |13,642 |4 |86 |1634.84 |13,728 |
|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 |1 |- |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 |- |- |27.915 |3,926 |27.915 |3,926 |
|Ammonium Sulphate/Dolomite |138 |1,518 |18.86 |534 |156.86 |2,053 |
|Bating Agent |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 |89 |512.92 |24,572 |513.02 |24,661 |
|Sodium Bicarbonate |0.65 |11 |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 |
|Total |1956.26 |20,685 |1274.47 |63,938 |3202.38 |84,623 |

Source: Leather Sector Census Study, LSBPC, 2005

9.1.2 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
|Name of Chemicals |Local |Foreign |Total |
| |Quantity (MT) |(Value in Tk.000) |Quantity (MT) |(Value in Tk.000) |Quantity (MT) |(Value in Tk.000) |
|Basic Chroming Sulphate |- |0 |79.46 |3564 |79.46 |3564 |
|Sodium Formate |0.75 |21 |47 |1233 |47.75 |1254 |
|Na-EDTA |1 |94 |2.36 |217 |3.36 |311 |
|Acrylic syntan |2 |176 |83.28 |9022 |85.28 |9198 |
|Phenolic syntan |- |0 |57.50 |7891 |57.50 |7890 |
|Melamine /Urea syntan |2 |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 |1 |51 |58.54 |31667 |59.54 |3217 |
|Dye Auxiliaries |- |0 |12.69 |2559 |12.69 |2559 |
|Preservative |0.13 |113 |5.1 |3633 |5.23 |3745 |
|Aldhyde Tannin |- |0 |3.68 |956 |3.68 |956 |
|Total |16.07 |2322 |885.86 |116720 |901.84 |119041 |

Source: Leather Sector Census Study, LSBPC, 2005

9.1.3 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 |37 |10.33 |3296 |11.08 |3334 |
|Butadyne binder |0.8 |40 |1.75 |495 |2.55 |535 |
|Protein Binder |0.8 |50 |14.83 |3867 |15.63 |3917 |
|Wax emulsion |0.3 |81 |7.97 |3081 |8.27 |3162 |
|Penetretor |0.17 |15 |14.34 |3958 |14.51 |3973 |
|Nitrocellulose binder |4.16 |1172 |13.29 |4712 |17.45 |5884 |
|Poly Eurathane binder |0.75 |52 |14.70 |4778 |15.46 |4830 |
|Dye liquid |0.1 |100 |8.67 |7312 |8.77 |7412 |
|Filler |0.35 |20 |4.13 |1222 |4.49 |1242 |
|Pigments |1.4 |60 |12.54 |3083 |13.94 |3143 |
|Acetic Acid |0.05 |2 |2.47 |170 |2.52 |172 |
|Matting Agent |0.13 |17 |3.69 |1498 |3.81 |1515 |
|Film Modifier |0.05 |20 |4.08 |3906 |4.14 |3926 |
|Pull-up Wax |- |0 |2.44 |949 |2.44 |949 |
|Pullup oils |- |0 |4.02 |1450 |4.02 |1450 |
|Cross linkers |0.02 |10 |0.355 |900 |.37 |910 |
|Solvent |- |0 |0.35 |105 |.35 |105 |
|Formal dehyde |- |0 |0.05 |3 |.05 |3 |
|Total |9.83 |1678 |120 |44790 |129.83 |46468 |

Source: Leather Sector Census Study, LSBPC, 2005

9.2 Chemicals and Accessories: Footwear

Table 9.6: Annual Chemical used for the production of Footwear
| |Local |Foreign |Total |
|Name of Chemicals |Quantity in Kg |Value in Tk |Quantity in Kg |Value in Tk |Quantity in Kg |Value in Tk |
|Aqua Solar |0 |0 |2.5 |6250 |2.5 |6250 |
|Aciton |0 |0 |130 |26000 |130 |26000 |
|Batal Acid |10 |1500 |0 |0 |10 |1500 |
|Belco |37 |9300 |0 | |37 |9300 |
|EMK |10 |100 |85 |25500 |95 |25600 |
|Gail Goods |0 |0 |3 |6300 |3 |6300 |
|Glace |0 |0 |1009 |402520 |1009 |402520 |
|Hardner |0 |0 |790 |723000 |790 |723000 |
|Lacker |20 |3000 |0 |0 |20 |3000 |
|Ligar |0 |0 |9 |1440 |9 |1440 |
|Liquid Spray |0 |0 |25 |11750 |25 |11750 |
|Latex |0 |0 |2600 |260000 |2600 |260000 |
|MEK |0 |0 |630 |78900 |630 |78900 |
|Oxalic |0 |0 |600 |27000 |600 |27000 |
|Polishing Cream |22 |6600 |60 |17400 |82 |24000 |
|Powder Dice |0 |0 |500 |18000 |500 |18000 |
|Pasting |19505 |1462500 |0 |0 |19505 |1462500 |
|Primer |0 |0 |1760 |607000 |1760 |607000 |
|Pigment |10 |2000 |0 |0 |10 |2000 |
|Spray |0 |0 |48 |17700 |48 |17700 |
|Solution |19500 |1365000 |5000 |400000 |24500 |1765000 |
|Shining |0 |0 |1800 |2160000 |1800 |2160000 |
|Split |0 |0 |40 |1200 |40 |1200 |
|Solvent Laker |20 |2100 |15 |3000 |35 |5100 |
|Season |15 |1500 |0 |0 |15 |1500 |
|Sufar |25 |1500 |0 |0 |25 |1500 |
|Thinner |0 |0 |3570 |286700 |3570 |286700 |
|Tolbin |0 |0 |1550 |131250 |1550 |131250 |
|Adhesive |0 |0 |7200 |1008000 |7200 |1008000 |
|Ecosolar |0 |0 |4.5 |6850 |4.5 |6850 |
|Cleansing Agent |0 |0 |20 |700 |20 |700 |
|Zinc acid |25 |2500 |0 |0 |25 |2500 |
|Staric Acid |25 |1500 |0 |0 |25 |1500 |
|Antioxident |25 |1250 |0 |0 |25 |1250 |
|MBT |25 |1205 |0 |0 |25 |1205 |
|TBT |25 |1250 |0 |0 |25 |1250 |
|Total |39299 |2862805 |27451 |6226460 |66750 |9089265 |

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 | |
| | | |Total |
|Buckles |248 |7087 |7335 |
|Belt |1313 |1248 |2561 |
|Button |7903 |475 |8378 |
|Catel |11 |201 |212 |
|Catel tap |0 |1799 |1799 |
|Daco |0 |1640 |1640 |
|Eyelet |0 |128 |128 |
|Others |70356 |386 |70742 |
|Total |79831 |12964 |92795 |

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.

9.3 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 |18 |1648 |
|Lacker |2 |0 |2 |
|TBT |4 |0 |4 |
|Total |1636 |18 |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 |24 |175.5 |
|Button |15 |0 |15 |
|Others |7 |4 |11 |
|Total |237 |628 |865 |

Source: Leather Sector Census Study, LSBPC, 2005

Chapter-Ten

Major Players of the Leather Chemical Industry

(Data Collected from Primary Survey)

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

1. Soaking Agent: 550-600MT /Year Price: 100-120Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |ACI, Bangladesh |50% |
|2. |BASF, Germany |30% |
|3. |Others |20% |

Source: Primary survey

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

2. Soaking Enzyme: 300MT /Year Price: 150-190Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |TFL, Germany |25% |
|2. |BASF, Germany |20% |
|3. |Buckman, Singapore |15% |
|4. |TH Bohme |15% |
|5. |Schill & Seilacher, Germany |5% |
|6. |Scitan, Italy |5% |
|7. |Others |15% |

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

3. Liming Auxiliaries: 750-900MT /Year Price: 65-120Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |TFL, Germany |25% |
|2. |BASF, Germany |20% |
|3. |Buckman, Singapore |10% |
|4. |Seicie, Italy |10% |
|5. |Schill & Seilacher, Germany |5% |
|6. |Others |30% |

Source: Primary survey
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. |Supplier |Market Share |
|1. |Local |75% |
|2. |China, Thiland |25% |

Product Name: (Delimer-AR), Neochemica;

5. Bating Agents: 500-600MT /Year Price: 60-100Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |Clariant, UK |35% |
|2. |TFL, Germany |20% |
|3. |Buckman, Singapore |15% |
|4. |BASF, Germany |10% |
|6. |Rock Chem |5% |
|7. |Others |15% |

Source: Primary survey
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 Price: 15Tk. Per kg. Formic Acid Price: Salt (NaCl) Price: 10Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |Local |55% |
|2. |Clariant, U.K |10% |
|3. |BASF, Germany |10% |
|4. |Kemira |5% |
|5. |Others |20% |

Source: Primary survey
7. Tanning Agents: 6000-8000MT /Year Price: 50-150Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |BASF, Germany |30% |
|2. |Bayer, Germany |30% |
|3. |American Chemical Co. |15% |
|4. |Sulchome, Italy |10% |
|5. |Others |15% |

Source: Primary survey
Product Name: (Chromosol-B), Bayer; (Chromitan-B), BASF; (Chromix-B33), American Chemical Co.;

8. Preservatives: 100-120MT /Year Price: 750-850Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |Buckman, Singapore |40% |
|2. |Bayer, Germany |30% |
|3. |Chemicolor/ Yorkeshire |10% |
|4. |ATC, France |5% |
|5. |Others |15% |

Product Name: (Prevental-Z), Bayer; (Busan-30L), Buckman; (Tolcide-2230), Chemicolor/Yorkeshire;
9. Basifying Agents: 500-700MT /Year Price: 110-120Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |BASF, Germany |30% |
|2. |TFL, Germany |10% |
|3. |Clariant, U.K |10% |
|4. |Clowan |10% |
|5. |Others |50% |

Source: Primary survey
Product Name: (Neosym-MGO), Clowan; (Chromitan-B), BASF; (Chromino-FB), TFL; (Tanbase), Clariant;
10.1.1 Total Quantity wise Market Share (Wet Blue)

|Sl. No. |Name of the Suppliers |Approximate Market Share (%) |
|1 |BASF, Germany |25% |
|2 |Clariant, UK |22% |
|3 |Bayer, Germany |20% |
|4 |American Chemical Co. |8% |
|5 |TFL, Germany |5% |
|6 |Buckman, Singapore |5% |
|7 |Others |15% |

[pic] Figure 10.1:

10.2 Market Share of Chemical Suppliers (Wet Blue To Crust)

1. Neutralizing Agents: 500MT /Year Price: 90-160Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |BASF, Germany |25% |
|2. |TFL, Germany |25% |
|3. |Clariant, UK |20% |
|4. |Buckman, Singapore |10% |
|5. |Others |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. |Supplier |Market Share |
|1. |BASF, Germany |50% |
|2. |Bayer, Germany |30% |
|3. |Others |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. |Supplier |Market Share |
|1. |Clariant, UK |40% |
|2. |BASF, Germany |- |
|3. |Guama |- |
|4. |Stahl, Holland |- |
|5. |Others |30% |

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

4. Dyeings Auxiliaries: 250-350MT /Year Price: 70-350Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |Clariant, UK |20% |
|2. |BASF, Germany |20% |
|3. |TFL, Germany |10% |
|4. |Hodgeson |10% |
|5. |Others |40% |

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

5. Fatliquors: 1800-2000MT /Year Price: 70-350Tk Per Kg.

|#SL. |Supplier |Market Share |
|1. |Smith & Zones |30% |
|2. |TFL, Germany |20% |
|3. |BASF, Germany |10% |
|4. |Clariant, UK |10% |
|5. |Zshimmer & Schwarz |5% |
|6. |Others |25% |

Source: Primary survey
Product Name: (Lypoderm), BASF; (Chromopol, Choripol), TFL; (Derminol, Dermalix), Clariant; (Eureka-172), Atlas; (SLP), Yorkeshire; (Coralon), Stahl;

10.2.1 Total Quantity wise Market Share (Crust)

|Sl. No. |Name of the Suppliers |Approximate Market Share (%) |
|1 |BASF, Germany |33% |
|2 |Clariant, UK |20% |
|3 |Bayer, Germany |17% |
|4 |TFL, Germany |10% |
|5 |Others |17% |

Source: Primary survey
[pic]
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 |Approximate Market Share (%) in |
| | |Finishing |
|1 |ALPA, Italy |25% |
|2 |BASF, Germany |20% |
|3 |Stahl, Holland |18% |
|4 |Clariant, UK |10% |
|5 |TFL, Germany |5% |
|6 |Finice(Italy) |5% |
|7 |Horiyana Chemicals |5% |
|8 |Buckman, Singapore |2% |
|9 |Others(Indian & Italian) |10% |

[pic]
Figure 10.3

Chapter Eleven

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 buyer’s special purpose. So, if you don’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

1. 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).

2. 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:

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

|SL |Name of the Firm |Address |Phone |Contact Person and Designation |
| |M/S Al Madina Tannery |55/2, Hazaribagh, Dhaka |8611579 |Alhaj Nur Mohammed |
| | | |019343789 |Managing Director |
| |M/S Amin Tannery Ltd. |60/1, Hazaribagh, Dhaka |8610475 |Mr. Abdul Kader |
| | | |0171561660 |Managing Director |
| |M/S Anowar Tannery (Pvt) Limited |104, Hazaribagh, Dhaka |9664078 |Mr. Md. Dil Jahan Bhuiyan |
| | | |506168 |Managing Director |
| |M/S Apex Tannery Ltd. |Off: 65-66 Motijheel C / A (2nd Floor) |9551203 |Mr. A.K.M Rahmatullah, Managing |
| | |Fact: 127 Hazaribagh, Dhaka |9560766 |Director |
| | | |9551117 | |
| | | |8625635-7 | |
| |M/S Awal Leather Complex |69, Hazaribagh, Dhaka |8626728 |Mr. M. A. Awal |
| | | |8118981 |Managing Director |
| |M/S Abul Khair Tannery |121/5, Sher-e-Bangla Road, Hazaribagh, Dhaka-1209 |8621787 |Hazi Md. Abul Khair |
| | | |0172126126 |Proprietor |
| |M/S Ayub Brothers Tannery Ltd. |143/1 Hazaribagh |866518 |Mr. Shahjahan |
| | |Dhaka | |Managing Director |
| |M/S Azmir Leather |116/E, Hazaribagh, Dhaka-1209 |8626925 |Mr. Md. Shahid Ullah |
| | | | |Proprietor |
| |M/S Aziz Tannery Ltd. |148/2, Hazaribagh, Dhaka-1209 | |Mr. Md. Asifur Rahman |
| | | | |Managing Director |
| |M/S Bangladesh Fine Leathers Processing Ltd. |Alta Plaza (3rd Flor) House # 1 |8124806 |Mr. Anam Haque |
| | |Road # 10, Dhanmondi, Dhaka |8626485 |Managing Director |
| |M/S Bata Shoe Company Bangladesh Limited |Tongi, Gazipur, (Dhaka) |9800501-5 |Mr. G Stricker |
| | | |9800513 |Managing Director |
| |M/S Bay Tanneries Ltd. |21, Hazaribagh, Dhaka |8611445 |Mr. Shamsur Rahman |
| | | |8611468 |Managing Director |
| | | |011855496 | |
| |M/S Bengal Leather Complex |147, Hazaribagh, Dhaka-1209 |8614077 |Mr. Md. Tipu Sultan |
| | | |8615977 |Managing Director |
| | | |0171538060 | |
| |M/S Bengal Peli Export Company |Hazaribagh |9122452 |Mr. Md. Anwar Hossain |
| | |Dhaka |500197 |Proprietor |
| |M/S Bikrampur Tannery Ltd. |180/2 Hazaribagh, Dhaka |9110690 |Mr. S.M. Habibur Rahman |
| | | | |Managing Director |
| |M/S Cresent Tannery Ltd. |143 Hazaribagh, Dhaka |9663659 |Mr. Md. Abdul Kader |
| | | | |Chairman |
| |M/S Dhaka Hides & Skins Ltd. |147, Hazaribagh, Dhaka |8611268 |Mr. M. A. Rashid Bhuiyan |
| | | |9669849 |Managing Director |
| |M/S Dhaka Tanneries Ltd. |124, Hazaribagh, Dhaka |8615179 |Mr. Md. NUrul Huda |
| | | |8613563 |Managing Director |
| |M/S Diamond Tannery Ltd. |73, Hazaribagh, Dhaka |0189216979 |Mr. Abdul Hakim |
| | | | |Managing Director |
| |M/S F. K. Leather Complex Ltd. |95/3A, Hazaribagh, Dhaka |502411 |Mr. Kutub Uddin |
| | | |506921 |Chairman |
| |M/S Green Arrow Tannery |135, Hazaribagh, Dhaka |503650 |Mr. Tofail Ahmed |
| | | |8614182 |Managing Director |
| |M/S Great Eastern Tannery (PVT) Ltd |42, New Paltan Lane, Azimpur, Dhaka-1205 |8626887 |Alhaj Mohd Idrish |
| | | |9666128 |Managing Director |
| |M/S H & H Leather Industries Ltd. |House # 69, Road # 8/A |9113776 |Mr. M. Nasir |
| | |Dhanmondi R/A, Dhaka |9111209 |Managing Director |
| | | |8111526 | |
| |M/S H. B. Tannery Ltd. |House # 69, Road # 8/A |8111526 |Mr. M. Fayaz |
| | |Dhanmondi R/A, Dhaka |9111209 |Director |
| |M/S H. R. C. Leather Complex |1. TC Bhaban, Kawran bazar |9128991-2 |Mr. Sayeed Hossain Chowdhury, |
| | |Dhaka | |Chairman |
| |M/S Haroon Leather Ltd. |18, Kamal Ataturk Avenue (16th Fl) |8824979 |Mr. Rizwan Haroon |
| | |Banani, C/A, Dhaka |8821024 |Managing Director |
| |M/S Helal Tannery |74, Hazaribagh, Dhaka |8616305 |Mr. Md. Belal Hossain |
| | | | |Proprietor |
| |M/S Helena Enterprise Ltd. No.2 |78, Hazaribagh, Dhaka-1209 |8631097 |Mr. Mohammad Mizan |
| | |59/60, Gazmohol, Hazaribagh, Dhaka-1209 (?) |9660754 | |
| | | |0171591647 | |
| |M/S Ibrahim Leathers |123/1 Hazaribagh, Dhaka |8625162 |Mr. Md. Ibrahim |
| | | | |Proprietor |
| |M/S International Tannery |Hazaribagh, Dhaka |504401 |Mr. Md. Fajlu Mia |
| | | |508863 |Proprietor |
| |M/S Jamila Tannery Ltd. |112, Hazaribagh, |508466 |Mr. Shaiqur Rahman |
| | |Dhaka |9112832 |Managing Director |
| |M/S Janata Tanning Industries Ltd. |180, Hazaribagh, Dhaka |8618556 |Mr. Abul Kashem |
| | | |8626727 |Managing Director |
| |M/S Javed Tannery |119, Sher-e-Bangla Road |8117674 |Mr. Tipu Sultan |
| | |Dhaka | |Proprietor |
| |M/S Kader Leather Complex |54/F Moneshwar, |8116424 |Mr. Abdul Kader |
| | |Hazaribagh, Dhaka | |Proprietor |
| |M/S Kalam Brothers Tannery Ltd. |109/2 Hazaribag, Dhaka |8626727 |Mr. Md. Abul Kalam Azad |
| | | |8618556 |Managing Director |
| | | |0171561646 | |
| |M/S Karim Leathers Ltd. |180, Hazaribagh, Dhaka |8616584 |Alhaj Rejaul Karim Ansari |
| | | |8611286 |Managing Director |
| | | |8611129 | |
| |M/S Kid Leather Ind. Ltd. |Off: 62/1, Purana Paltan, Dhaka |8612286 |Mr. Md. S.A.M.M. Nuruddin |
| | |Fact: 19 Sher-e-Bangla Road, Hazaribagh, Dhaka |9563453 |Managing Director |
| |M/S Leather Ind. of Bangladesh Ltd. |54/1 Sher-e-Bangla Road, |8610516 |Mr. Abdul Rahman Sales |
| | |Hazaribagh, Dhaka |8614242 |Managing Director |
| |M/S Lexco Limited |146, Hazaribagh, Dhaka |9669397 |Mr. M. A. Matten |
| | | |8626082 |Chairman |
| | | |8625147 |Mr. Harun Or-Rashid |
| | | | |Managing Director |
| |M/S Madina Tannery |114, Kobi Nazrul Islam Road |031-613916 |Mr. Abu Mohammad |
| | |Sadharghat, Chittagong |031-617605 |Managing Director |
| |M/S Manzur Industries Ltd. |Dhaka Chamber Building |9551117 |Mr. Quazi Anwarul Hoq (Tariq) |
| | |65-66, Motijheel C/A Dhaka |9566182-3 |Director |
| |M/S Millat Tannery |116/6, Hazaribagh, Dhaka |504865 |Mr. Md. Nurul Alam |
| | | |8611264 |Proprietor |
| |M/S Mitali Tannery |71/4 Gojmohol, Hazaribagh, Dhaka |8612917 |Mr. Mr. Hazi Abul Kashem |
| | | |9665916 |Proprietor |
| |M/S Mukti Tannery |141/2 Hazaribagh, Dhaka |8616586 |Mr. Osman Gani Bhuiyan |
| | | | |Managing Director |
| |M/S Mukta Tannery |34/C, Hazaribagh, Dhaka-1209 |9660674 |Mr. Sayed Md. Shidullah |
| | | | |Proprietor |
| |M/S Paramount Tanneries |181/2 Sher-e-Bangla Road, Hazaribagh, Dhaka |8626056 |Mr. Akbar Hossain |
| | | |0189220471 |Managing Director |
| |M/S Pioneer Tannery Ltd. |21, Hazaribagh, |8623428 |Mr. Ziaur Rahman |
| | |Dhaka | |Managing Director |
| |M/S Pragati Leather Complex |55/1 Hazaribagh, Dhaka |9663121 |Mr. Md. Asadullah |
| | | |8626485 |Managing Director |
| | | |0171524804 | |
| |M/S R. M. M International Ltd. |Suit # 601, Concord Tower |9345963-4 |Mr. Mohiuddin Ahmed Mahin |
| | |113 Kazi Nazrul Islam Avenue, Dhaka | |Managing Director |
| |M/S R/ K. Leather Complex |153/A, Hazaribagh, |011 867105 |Mr. Md. Nurul Amin Chowdhury |
| | |Dhaka | |Managing Director |
| |M/S Rana Leather Ind. Ltd. |70, Dilkusha C/A, Dhaka |9566025-6 |Mr. A. K. Shamsul Alamin |
| | |9, Hazaribagh Dhaka |9564509 |Managing Director |
| | | |508909 | |
| |M/S Reliance Tannery Ltd. |48/2/K, Moneshwar Road, Hazaribagh, Dhaka |8625119 |Mr. Md. Shajahan |
| | | |8627425 |Managing Director |
| | | |0171898832 | |
| |M/S Riff Leather Ltd. |4, CDA Noxious Industrial Area |031-670764 |Alhaj Abul Kalam |
| | |Kalurghat, Chittagong |031-671220 |Director |
| |M/S Roushan Tanneries |78, Hazaribagh |504696 |Mr. Amin Uddin Babul |
| | |Dhaka |801624 |Managing Director |
| |M/S Ruma Leather Ind. Ltd. |131, Hazaribagh, Dhaka |9664317 |Eng. M. Abu Taher |
| | | |8627144 |Managing Director |
| |M/S S & S Tannery |86/1, Hazaribagh |9662523 |Mr. Md. Abdur Rahim |
| | |Dhaka | |Proprietor |
| |M/S SAF Industries Ltd. |Akij Chember |9552287 |Mr. S. K. Momin Uddin |
| | |73, Dilkusha, C/A, Dhaka |9666142 |Managing Director |
| | | |9666151 | |
| |M/S Samata Leather Complex Ltd. |120, Sher-e-Bangla Road, Hazaribagh, Dhaka |8611102 |Mr. Mansur Ahmed |
| | | |8611372 |Chairman |
| | | |9662731 | |
| |M/S Samina Tannery Pvt. Ltd. |36/1 Kalunagar, Hazaribagh, |9660384 |Abdus Samad |
| | |Dhaka |8625266 |Managing Director |
| | | |011850698 | |
| |M/S Shadhin Tannery |Hazaribagh, |8616963 |Mr. Faruque Ahmed |
| | |Dhaka | |Managing Director |
| |M/S Shafiq Leather Corporation Ltd. |43/1, Sher-e-Bangla Road, Hazaribagh, Dhaka |8616111 |Mr. Sidul Islam Chowdhury |
| | | |9669385 |Managing Director |
| |M/S Shahjalal Leather Complex |20, Hazaribagh, |8619457 |Mr. Shahjalal Mazumder |
| | |Dhaka |502709 |Managing Director |
| |M/S Superior Leather Industry Ltd. |19, Sher-e-Bangla Road |8612268 |Mr. S. A. M. M. Nuruddin |
| | |Hazaribagh, Dhaka | |Managing Director |
| |M/S Taj Tannery Ltd. |148, Hazaribagh, |8610285 |Mr. Mujibur Rahman |
| | |Dhaka | |Managing Director |
| |M/S The Earth International Tannery |86/2 Sher-e-Bangla Road, |8618826 |Mr. Alhaj M. A. Satter Bhuiyan |
| | |Hazaribagh, Dhaka |506910 |Proprietor |
| |M/S Vulua Tannery Ltd. |109, Hazaribagh, |8611851 |Mr. M. A. Awal |
| | |Dhaka |8118981 |Managing Director |
| | | |011859031 | |
| |M/S Yousuf Brothers Tanneries Pvt. Ltd. |62, Hazaribagh, |8614749 |Mr. Mohammed Yousuf |
| | |Dhaka |8613083 |Managing Director |
| |M/S Yousuf Leather Corporation Ltd. |124/2, Hazaribagh, |8625162 |Hazi Mohammed Bashir |
| | |Dhaka |8614895 |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 |Contact Person and Designation |
| |M/S Alamin Brenton Leather Goods Limited |70, Dilkusha Commercial Area |9566025-6 |Mr. Jahangir Alamin |
| | |Dhaka |9564507 |Managing Director |
| |M/S Asian Leather Complex |143/1, Hazaribagh, Dhaka-1209 |9664322 |Mr. Md. Monir Hossain |
| | | | |Managing Director |
| |M/S Bangla Tan Leather Products |148/3, Hazaribagh, |503502 |Mr. Alhan M. A. Mateen |
| | |Dhaka |500905 |Chairman |
| |M/S Crown Leather Products Ltd. |Star Center (1st Floor) |9880799 |Mr. Serajul Islam |
| | |House # 2/A, Road #138, Gulshan-1 |8317259 |Managing Director |
| |M/S Crystal Corporation Ltd. |Shilpo Plot # 9, Block C, |325449 |Mr. Engr. A. S. M. Rafid |
| | |Tajmahal Road, Mohammadpur |244862 |Managing Director |
| |M/S Dhaka Leather Crafts |147, Hazaribagh |966470-07 |Mr. Joynal Abedin Bhuiyan |
| | |Dhaka |0171530159 |Proprietor |
| |M/S Fortuna Leather Craft |131, Hazaribagh |9664317 |Engr. M. Abu Taher |
| | |Dhaka |8627144 |Managing Director |
| |M/S Madina Leather Complex |117, Hazaribagh, Dhaka-1209 |9661157 |Mr. Bellal Hossain |
| | | | |Managing Director |
| |M/S Picard Bangladesh Ltd. |Sky Lark Point, Suite No. 9J1, 24/A, Bijoynagar, 175,|9354996-4 |Mr. Md. Saiful Islam |
| | |Syed Nazrul Islam Sarani, Dhaka |0171522170 |Managing Director |
| |M/S R. M. M International Ltd. |Suit # 601, Concord Tower |9345963-4 |Mr. Mohiuddin Ahmed |
| | |113 Kazi Nazrul Islam Avenue Dhaka | |Managing Director |
| |M/S Sonali Aansh Industries Ltd. |Lal Bhaban (1st Floor) |9556251 |Mr. Nurul Islam Patwari |
| | |18, Rajuk Avenue, Dhaka |8613132 |Managing Director |
| |M/S Spectra Leathergoods Ltd, |Namazi Chamber (1st Floor) |9565301 |Mr. Sohail Askar |
| | |16, Motijheel C/A, Dhaka |9564543 |Managing Director |
| |M/S Uttama Leather Production |Star Center (1st Floor), House # 2/1 |9880799 |Mrs. Shaikh Selina Islam |
| | |Road # 138, Gulshan-1, Dhaka |8825007 |Managing Director |

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

|SL |Name of the Firm |Address |Phone |Contact Person and Designation |
| |M/S Amit Footwear Ltd. |Flat # 2/503 20, Eastern Tower |9804046 |Mr. Sukumar Chowdhury |
| | |20, New Eskaton Road, Dhaka |0171542895 |Managing Director |
| |M/S Apex Footwear Limited |Plot # 3DS, Road No. 113/A, |8828258 |Syed Manzur Elahi |
| | |Gulshan-2, Dhaka |8821591 |Chairman |
| |M/S Bata Shoe Company Bangladesh Limited |Tongi, Gazipur, (Dhaka) |9800501-5 |Mr. G Stricker |
| | | |9800513 |Managing Director |
| |M/S Bay Footwear Ltd. |21, Hazaribagh, Dhaka |9663966 |Mr. Shamsur Rahman |
| | | |9666994 |Managing Director |
| | | |8623428 | |
| |M/S B S Leather Complex |13, Moneshwar road, Hazaribagh, Dhaka-1205 |8615921 |Mr. Shohel Ahmed (Dilu) |
| | | |9619934 |Managing Director |
| |M/S Cosmopolitan Shoe Ind. Ltd |House#303, Road#19/B, New DOHS, Mohakhali, Dhaka |9261145 | |
| |M/S Comfort Footwear Ltd. |86, Laboratory Road (Gd. Floor) |8612415 |Mr. Moinul Ahsan |
| | |Dhaka |500516 |Managing Director |
| |M/S Continental Footwear Ind. Ltd. |240, New Elephant Road, Dhaka |861623 |Mr. Abul Kashem |
| | | |8612408 | |
| |M/S Desma Shoe Industries Ltd. |10, Kazi Nazrul Islam Avenud (2nd Fl) |8114053 |Mr. Kazi Shahed Hasan Ferdous, Managing|
| | |Kawran Bazar, Dhaka |8110782-3 |Director |
| |M/S Dhaka Footwear Ltd. |147, Hazaribagh, |9669849 |Mr. M. A. Rashid Bhuiyan |
| | |Dhaka |8611268 | |
| |M/S H. N. Shoe Limited |House # 69, Road # 8/A |9113776 |Mr. M. Nasir |
| | |Dhanmondi R/A, Dhaka |9111209 |Managing Director |
| | | |0171523223 |Mr. M. Amirullah |
| | | | |Executive Director |
| |M/S Inter Fashion Leathers & Footwear Ind. Ltd. |Room # 410, DCCI Building |9560591 |Mr. Farukh Ahmed |
| | |65-66 Motijheel C/A, Dhaka |9567986 |Managing Director |
| |M/S Jenny Shoes Ltd. |House # 06, Road # 68A |8826350 |Mr. M. Nasir Khan |
| | |Gulshan-2, Dhaka |8824885 |Managing Director |
| |M/S Lalmai Footwear Ltd. |Khan Mansion (5th Flor) |9567312 |Mr. Aminur Rashid |
| | |107, Motijheel C/A Area, Dhaka |9569458 |Managing Director |
| |M/S Landmark Footwear Ltd. |67, Lake Circus, (Dolphin Lane) |9338369 |A. K. M. Afzalur Rahman |
| | |Kolabagan, Dhaka |8312626 |Managing Director |
| |M/S Leatherex Footwear Industries Ltd. |House # 34/1 (Gr. Fl) Road # 10/A |8112543 |Mr. Mohammed Nazmul Hassan, Managing |
| | |Dhanmondi, Dhaka. | |Director |
| |M/S Legacy Footwear Ltd. |168/A, Green Road, Dhaka |404684 |Mrs. Shahnaz Sultana |
| | | |011858976 |Managing Director |
| |M/S Lexco Footwear Ltd. |146, Hazaribagh, Dhaka |9669397 |Mr. Harun-Or-Rashid |
| | | |503502 |Managing Director |
| |M/S Madina Shoe Ind. Ltd. |Baitul Hossain Building (Suite-1204), 27, Dilkusha |9564042 |Md. Shafizul Islam Khandaker Managing |
| | |C/A, Dhaka |9556208 |Director |
| | | |7169495 | |
| | | |0175013459 | |
| |M/S Malim Bangladesh Co. Ltd |290/1 Shonargaon Road |9803366 |Mr. Delwar Hossain |
| | |Dhaka |9803737 |Managing Director |
| |M/S Phulhar Footwear Ltd. |Meherba Plaza, |9570346-8 |Mr. Md. Ziaur Rahman |
| | |33 Topkhana Road, Dhaka | |Managing Director |
| |M/S Rever Side Leather & Footwear Ind. Pvt. Ltd. |2/1, R/K mission Road, |9563162 |Mr. Abu S. M. Baqibillah |
| | |Dhaka |9560147-9 |Executive Director |
| |M/S Rumana Shoe Industries Ltd. |45/B, Dilu Road, New Eskaton, Dhaka |8113648 |Mr. S M Abul Kashem |
| | | | |Managing Director |
| |M/S Savar Industry (Pvt) Ltd. |Savar EPZ Area |8311252 |Mr. Akihisa Osomura |
| | |Dhaka | |Managing Director |
| |M/S Shampan Shoes Ltd. |Rahman Chamber (5th Floor) |9563185 |Mr. Shamsuddin Ahmed |
| | |12-13 Motijheel C/A Dhaka |9565325 |Executive Director |
| |M/S Surma Leather & Footwear Ind. Ltd. |34, Bangabahdu Avenue (3rd Floor) |9557913 |Mr. Mahbubur Rahman Sikder |
| | |Dhaka-1000 |9558790 |Managing Director |
| |M/S S A Leather and Shoe Ind. Ltd. |Malliker Para, Sonargaon, Narayangonj |8616305 | |
| | | |0171378494 | |
| |Leather Plannets Limited (?) |House # 159, Road # 01, DOHS |9887422 |Mr. Harun Miah |
| | |Baridhara, Dhaka | |Managing Director |
| |M/S Brother Chemicals Ltd. (?) |9/1, Gozmohol, Hazaribagh |501622 |Mr. Md. Abul Kalam Azad |
| | |Dhaka |9551725 |Chairman |
| |M/S S. A. K. International Co. (?) |House # 296, Road # 04, DOHS |9883926 |Shakil Ahmed Khan |
| | |Baridhara, Dhaka |502030 |Proprietor |
| |M/S Tivoli Bangladesh Ltd. (?) |49, Gulshan S/A |9885362 |Mr. A. H. Mustafa Kamal |
| | |Gulshan – 1, Dhaka |8821153 |Managing Director |
| |M/S Velex Agences Ltd. (?) |62/1 Purana Paltan, |9563404 |Mr. S. A. M. M. Nuruddin |
| | |Motijheel C/A, Dhaka |9563453 |Managing Director |
| | |Fac: 121/5 Sher-e-Bangla Road, Hazaribagh-Dhaka | | |
| |M/S Nitol Export (?) |71, Mohakhali C/A, Nitol Centre, Dhaka-1212 |9887074-6 |Mr. Abdul Matlub Ahmad |
| | | |8855794 |Managing Director |
| | | |0189238109 | |

Appendix A-4

Members’ List of Leathergoods & Footwear Manufacturers’ and Exporters’ Association of Bangladesh (LFMEAB)

Category: Leathergoods

|SL |Name of the Firm |Address |Phone |Contact Person and Designation |
| |M/S Apex Leathercraft Fashion & Accessories Ltd. |House#296, Road#4, DOHS Baridhara, Dhaka Cantonment, |9883926 |Mr. Shakil Ahmed Khan |
| | |Dhaka-1206 |0171592979 |Managing Director |
| |M/S Aurora |10/1, Iqbal Road, Mohammadpur, Dhaka-1207 |8117696 |Mr. Md. Shahidul Huq |
| | | |0189257031 |Managing Partner |
| |M/S Cosmic Jute & Leather Industries Ltd. |561, Pakuria, Bhadhalodi, Uttara, Dhaka-1230 |8916806 |Mr. Md. Shaheen Ahmed |
| | | |0189357570 |Managing Director |
| |M/S Crown Leather Products Ltd. |179, East Kafrul, Dhaka Cantonment |9872149 |Mr. Serajul Islam |
| | |Dhaka-1206 |0189803083 |Managing Director |
| |M/S Jass Leather Industries Ltd. |89, Motijheel C/A (3rd Floor) |9559979 |Mr. Jainal Abedin Raton |
| | |Suit No. 62, Dhaka |0171458649 |Managing Director |
| |M/S Koninoor Leather Products Ltd. |Amanullah Complex |9566402 |Mr. Hossain A. Sikder |
| | |87, Islampur Road, Dhaka |9566396 |Managing Director |
| | | |0171523675 | |
| |M/S Picard Bangladesh Ltd. |Sky Lark Point, Suit no 9J1 |9354993-4 |Mr. Md. Saiful Islam |
| | |24/A, Bijoynagar, Dhaka |0171522170 |Managing Director |
| |M/S Sonali Aansh Industries Ltd. |Lal Bhaban (1st Floor), 18 Rajuk Avenue |9556251 |Mr. Nurul Islam Patwari |
| | |Dhaka |9563322 |Managing Director |
| | | |0171536721 | |
| |M/S Universal Leather Products |Erectors House (9th Floor) |9880102-5 |Mr. M. Naser Rahman (MP) |
| | |18, Kamal Ataturk Avenue, Banani C/A, Dhaka-1213 | |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 |Contact Person and Designation |
| |M/S Amit Footwear Ltd. |House # 30, Road # 6, Sector 3 |9804046 |Mr. Sukumer Chowdhury |
| | |Uttara Model Town, Dhaka-1230 | |Managing Director |
| |M/S Apex Footwear Ltd. |Celebration Point,1st Floor, Plot # 3,5 |8828258 |Mr. Syed Nasim Manzur |
| | |Road # 113A, Gulshan-2, Dhaka |8620300 |Managing Director |
| | | |0171531722 | |
| |M/S Bay Footwear Ltd. |21, Hazaribagh, Dhaka-1209 |8611468 |Mr. Ziaur Rahman |
| | | |8612335 |Managing Director |
| | | |0171560794 | |
| |M/S H. N. Shoes Ltd. |House # 69, Road # 8/A |8111526 |Mr. M. Nasir |
| | |Dhanmondi R/A, Dhaka |9111209 |Managing Director |
| |M/S Jenny Shoes Ltd. |Jennys House, House # 6, Road # 68/A |8826350 |Mr. Nasir Khan |
| | |Gulshan-2, Dhaka-1212 |8824885 |Managing Director |
| | | |0171535117 | |
| |M/S Lalmai Footwear Ltd. |Khan Mansion (5th Floor) |9567312 |Mr. Aminur Rashid |
| | |107, Motijheel C/A, Dhaka |9569458 |Managing Director |
| | | |0171538012 | |
| |M/S Landmark Footwear Ltd. |64, Bijoy Nagar (3rd Floor) |9338369 |Mr A. K. M. Afzalur Rahman |
| | |Kakrail, Dhaka-1000 |8312626 |Managing Director |
| |M/S Leatherex Footwear Ind. Ltd. |House # 34/A, Road # 10/A |8112543 |Mr. Nazmul Hasan Hohil |
| | |Dhanmondi R/A. Dhaka |9129192 |Managing Director |
| | | |0189227559 | |
| |M/S Legacy Footwear Ltd. |64, Bijoynagar, |8319663 |Mr. Kazi Rafi Ahmed |
| | |Kakrail, Dhaka | |Managing Director |
| |M/S Madina Shoe Industries Ltd. |Suit # 1204, Baitul Hossain Building |9667745 |Mr. Md. Shafiqul Islam |
| | |27, Dilkusha C/A, Dhaka-1000 |9556208 |Managing Director |
| | | |7169495 | |
| | | |0175013459 | |
| |M/S Surma Leather & Footwear Ind. Ltd. |Corner Court, 29 Toynbee Circular Road |9557913 |Engr. Mr. Sultan A. Sikder |
| | |Motijheel C/A, Dhaka |9558790 |Director |
| |M/S Tropical Shoes Ind. Ltd. |A. R. Tower (3rd Floor) |8815142 |Mr. M. Anisur Razzaque |
| | |24, Kamal Ataturk Avenue, Banani, Dhaka-1213 |8815144 |Managing Director. |
| |Bangladesh Export Ltd. |24, Kamal Ataturk Avenue, |8815142 |Mr. M. Anisur Razzaque |
| | |Banani, Dhaka |8815144 |Managing Director. |
| | | |0171538338 | |

Appendix A-6

Members’ 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 |
| |M/S. Chowdhury Leather & Co |95/7.Gazmahal, Hazaribagh. |9660754 |Md. Harun Chowdhury |
| | |Dhaka- 1209 |8631097 | |
| | | |0171526220 | |
| |M/S. Helena Enterprise |95/7.Gazmahal. Hazaribagh. |9660754 |Md. Mizanur Rahman |
| | |Dhaka- 1209. | | |
| |M/S. R M Leather |95/7.Gazmahal. Hazaribagh. |9660754 |Md. Monir Hossion |
| | |Dhaka- 1209. | | |
| |M/S M B Tannery Ltd |44/1, Sher-e- Bangla Road |8614663 |Md Mozaffar Rahman |
| | |Hazaribagh. Dhaka- 1209. | | |
| |M/S Pubali Tannery |44. Sher-e- Bangla Road |9660508 |Md. Mozibur Rahman |
| | |Hazaribagh. Dhaka- 1209. | | |
| |M/S Abul Khair Tannery |125/1. Sher-e- Bangla Road |8621787 |Hazi Md. Abul Khair |
| | |Hazaribagh. Dhaka- 1209. | | |
| |M/S. Nur Trading Corporation |119. Hazaribagh. Dhaka- 1209. |8631554 |Md. Abdul Awal |
| |M/S. Forhed Leather Corporation |99. Hazaribagh. Dhaka- 1209. |9662836 |Md. Abdul Hai |
| |M/S. Noakshli Tannery |107. Hazaribagh. Dhaka- 1209. |8628867 |Mukbul Ahmed |
| |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. |9662836 |Md. Amir Hussain |
| | |Hazaribagh. Dhaka- 1209. | | |
| |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- 1209. |8624082 |Md. Katub Uddion |
| |M/S. F F M Leather Complex |94/1. Hazaribagh, Dhaka- 1209. |9660509 |Md. Sha Alam |
| |M/S. Rahman Oversize |44. Sher-e- Bangla Rd. Hazaribagh, Dhaka – 1209. |8614663 |Md. Fazrul Rahman |
| |M/S. Rahman Enterprise |39. Zigztola. Hazaribagh. Dhaka- 1209 | |Md. Azizur Rahman |
| |M/S. Sonali Haide |44/1, Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. |9660508 |Md. Mahabubur Rahman |
| |M/S. Bearied Leather Complex |45/1. Sher-e- Bangla Rd, Hazaribagh, Dhaka- 1209. |8610543 |Md. Akbar Hossain |
| |M/S. Shodesh Tannery |116/D, Hazaribagh, Dhaka- 1209. |502264 |Md. Shohied Ullah |
| |M/S. Urmi Trade International |136/2, Hazaribagh, Dhaka- 1209. |8620535 |Md. Abul Kaham |
| |M/S. Zia Leather Complex |1310, Auture Dupo, Chittagong. |31- 682645 |Md. Abu Musa |
| |M/S. Gulshan Tannery |90, Hazaribagh, Dhaka- 1209. | |Md. Salim Ahmed |
| |M/S. Great Strean Tannery |48, Sher-e- Bangla Rd | | |
| | |Hazaribagh, Dhaka- 1209. | | |
| |M/S. Chinaze Tannery Pvt Ltd |50, Sher-e- Bangla Rd |8626492 |Al hazi Kazi Abdul Kadir |
| | |Hazaribagh, Dhaka- 1209. | | |
| |M/S. Yousuf Leather Corporation |124/2, Sher-e- Bangla Rd |8129864 |Hazi Md. Bashir |
| | |Hazaribagh, Dhaka- 1209. | | |
| |M/S. Shatee Leather |136/5, Hazaribagh |8612109 |Md. Abul Kalam |
| | |Dhaka- 1209. | | |
| |M/S. Feni Tannery Pvt Ltd |113, Hazaribagh |8628529 |Md. Golam Rabbani |
| | |Dhaka- 1209. | | |
| |M/S. Kasim Tannery |110, Hazaribagh, Dhaka- 1209. | |Md. Abul kasam |
| |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 |95, Gozmohal, Hazaribagh |9662840 |Md. Shamsul Huda |
| | |Dhaka- 1209. | | |
| |M/S. Razibe Leather Complex |95/4, Gozmohal, Hazaribagh |9662840 |Md. Shamsul Huda |
| | |Dhaka- 1209. | | |
| |M/S. Son Light Tannery |122, Hazaribagh, Dhaka- 1209. | |Hossain Ahmed |
| |M/S. Karsaj Tannery |92, Gozmohal, Hazaribagh |8625078 |Md. Hanif |
| | |Dhaka- 1209. | | |
| |M/S. Chanpur Tannery |93, Hazaribagh, Dhaka- 1209. | |Md. Sarij Miha |
| |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 |Md. Shaidul Hoque Master |
| |M/S. Lieen Enterprise |100, Hazaribagh, Dhaka- 1209. |8616975 |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. Manik& Sohaj Brotgers Tannery |79/A, Hazaribagh, Dhaka- 1209. |8628867 |Mukbul Ahmed |
| |M/S. Anjuman Trading Corporation |79, Hazaribagh, Dhaka- 1209. | |Md. Hanif |
| |M/S. Morshed Brothers Tannery |83/A, Hazaribagh, Dhaka- 1209. |9662533 |Md. Nur Nabi |
| |M/S. International Tannery |83, Hazaribagh, Dhaka- 1209. | |Md. Fazlu Miha |
| |M/S. Mizan & Suman Tannery |89/1, Hazaribagh, Dhaka- 1209. |8611204 |Md. Hossain |
| |M/S. Mamtaj Tannery |84, Hazaribagh, Dhaka- 1209. | |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. |8118204 |Sala uddion |
| |M/S. Metto Tannery |67/2, Hazaribagh, Dhaka- 1209. | |Jamal Ahmed |
| |M/S. Golden Leather Industries |65/2, Hazaribagh, Dhaka- 1209. | |Md. Amir Hossain |
| |M/S. Islamia Tannery |65, Hazaribagh, Dhaka- 1209. | |M SB Sala Ahmed |
| |M/S. Shahi Tannery |68, Hazaribagh, Dhaka- 1209. | |Md. Samsul Islam |
| |M/S. Sodor Tannery |60, Hazaribagh, Dhaka- 1209. |8625230 |Md. Torea Ullah |
| |M/S. Hazi Mazharul Hoq Ltd |79/1, Water Workers Rd | |Md. Gopran |
| | |Posta, Dhaka- 1209. | | |
| |M/S. Sumon Tanney |57/2, Hazaribagh, Dhaka- 1209. | |Hazi Md. Shajahan |
| |M/S. Lakhi Tannery |68, Hazaribagh, Dhaka-1209. | |Md. Shajahan |
| |M/S. A B S Tannery |42, Hazaribagh, Dhaka- 1209. | |Md. Abu Bakker Siddque |
| |M/S. East Asia Tannery Ltd |12/2, Sher-e- Bangla Rd |8625268 |Md. Bajlur Rahman |
| | |Hazaribagh, Dhaka – 1209. | | |
| |M/S. Phoenix Leather Complex |180/C, Sher-e- Bangla Rd |8625268 |Md. Bajlur Rahman |
| | |Hazaribagh, Dhaka – 1209. | | |
| |M/S. Arafat Leather Complex |6/1, Sher-e- Bangla Rd |017- 524925 |Hafaz Md. Mozzamal Hoq |
| | |Hazaribagh, Dhaka – 1209. | | |
| |M/S. Marson Tannery |45/1, Hazaribagh, Dhaka- 1209. | |Md. Estak Ahmed |
| |M/S. Ashan Habibe & Brother |123/3 Sher-e- Bangla Rd | |Md. Akterurzzaman |
| | |Hazaribagh, Dhaka –1209. | | |
| |M/S. Mamun Tannery |91, Hazaribagh, Dhaka- 1209. |9661733 |Md. Mosaraf Hossain |
| |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. |9118857 |Md. Humayan Kabir |
| |M/S. Latif Leather Complex |83/1, Hazaribagh |8612098 |Md. Hamidul Islam |
| | |Dhaka – 1209. | | |
| |M/S. J R Leather Export |42/10. Sonatongho , Hazaribagh | |Jamala Khatun |
| | |Dhaka- 1209. | | |
| |M/S. Hossain Brothers Tannery |68/1, Hazaribagh, Dhaka- 1209 |8613770, 0175 042959 |Hossain Ahmed Bhuiyan |
| |M/S. Kalu Leather Corporation |43, Sher- E Bangla Road |9667075 |Mahabub Alam |
| | |Hazaribagh, Dhaka- 1209 | | |
| |M/S. Aziz Tannery |148/2, Hazaribagh, Dhaka- 1209 | |Samsur Rahman |
| |M/S. Globe Tannery Ltd. |118, Sher-e- Bangla Road | |M A Bari |
| | |Hazaribagh, Dhaka- 1209 | | |
| |M/S. S & S Tannery |Hazaribagh, Dhaka-1209 | |Md. Abdur Rahim |
| |M/S. J A Leather |61, Hazaribagh, Dhaka-1209 | |Md. Abdul Ajij |
| |M/S. Johir Trading Industries |121/4, Sher-e- Bangla Rd | |Md. Johir |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. H S Tannery |47, Sher-e- Bangla Rd | |Hafez Ahmad |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Chowdhury & Co. |121/A, Sher-e- Bangla Rd | |Md. Hasan Chowdhury |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Jakir Hossain Tannery |120/1, Sher-e- Bangla Rd | |Md. Shekantor Hossain |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M.S. Zoobli Tannery |70, Hazaribagh, Dhaka-1209 | |Nurul Haque |
| |M/S. Leather Complex Pvt. Ltd. |11, Kalu Nagar, Hazaribagh, Dhaka-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 |30, Monesshore Road, Hazaribagh, Dhaka-1209 | |Hazi Md. Ali |
| |M/S. New Kajol Tannery |30/A Monesshore Road, Hazaribagh, Dhaka-1209 | |Sala Uddin Ahmed |
| |M/S. Muslim Tannery |30, Monesshore Road, Hazaribagh, Dhaka-1209 | |Hazi Somsher Ali |
| |M/S. Milon Tannery |58, Hazaribagh, Dhaka-1209 | |Zohir Ahmad |
| |M/S. Moon Tannery |105/1, Hazaribagh, Dhaka-1209 | |Md. Abul Kashem |
| |M/S T-Para Tannery |49, Sher-e- Bangla Rd | |Md. Aminul Islam Babul |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Kalam & Brothers Tannery |120/2, Hazaribagh, Dhaka – 1209 | |Md. Abul Kalam |
| |M/S. Mohin Tannery |59/1, Hazaribagh, Dhaka-1209 | |Abdul Odud Mia |
| |Ms. United Tannery Ltd. |139, Hazaribagh, Dhaka-1209 | |Md. Sala Uddin Chowdhury |
| |M/S. M S Tannery |121/3, Sher-e- Bangla Rd | |Md. Ruhul Amin |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Abul Bashar Tannery |135/B, Sher-e- Bangla Rd | |Md. Abul Bashar |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Dhaka Nagar Tannery |98, Hazaribagh, Dhaka-1209 | |Abul Hossain |
| |M/S. Jasim Tannery |30/3, Sher-e- Bangla Rd | |Sala Uddin |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. M I Tannery |122, Hazaribagh, Dhaka-1209 | |Hazi Ismail Hossain |
| |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 | |Md. Sasuddin Munshi |
| | |Hazaribagh, Dhaka – 1209 | | |
| |MS. Mukta Tannery |24/C, Kalunagar, Hazaribagh, Dhaka-1209 | |Sayed Md. Shahidullah |
| |Prominent Tannery Ltd. |25, Prominent Avenue, 3, PC Culture, Mohammadpur, | |Major Monjur Kader (Retd) M.P |
| | |Dhaka-1207 | | |
| |M/S. Sayful Leather |121/2, Sher-e- Bangla Rd | |Hazi Md. Sofi |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Miraz Leather Complex |13/1, Hazaribagh, Dhaka-1209 | |Md. Monir Hossain |
| |The Noakhali Tannery |Dotter Hat, Miazdi Court, Noakhali | |Md. Moazzem Hossain |
| |M/S. Ismail Leather Corporation |121/B, Sher-e- Bangla Rd | |Md. Ismail |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Prince Tannery |135, Sher-e- Bangla Rd | |Md. Zahangir Hossain |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. Al-Hera Leather Industries Ltd. |79, Water Works Road, Posta, Dhaka | |Hafez Muzahidul Haque |
| |M/S. Dincum Shoes Ltd. |House# 14, No.1 PC Culture Road, Mohammadpur, Dhaka-1207 | |Hasan Showrozit |
| |Hi-tech Leather Complex Ltd. (Shohid Tannery) |111, Hazaribagh, Dhaka-1209 | |Md. Mozaffar Hossain |
| |M/S. Luna Tannery |66, Hazaribagh, Dhaka-1209 | |Hazi Monir Uddin Ahmad |
| |Chrome-veg tannery Ltd. |115, Hazaribagh, Dhaka-1209 | |Md. Salim |
| |M/S. Rubi Leather Complex |71/4, Gozomohol, Hazaribagh, Dhaka-1209 | |Md. Shahjahan Bhuiyan |
| |M/S. Salam Leather Corporation |71/4/C, Gozomohol, Hazaribagh, Dhaka-1209 | |Hazi Md. Abul Bashar |
| |M/S. Atique Leather Complex |54/2, Hazaribagh, Dhaka-1209 | |Hossain Ahmed Bhuiyan |
| |M/S. Greenwage Tannery |133/3, Hazaribagh, Dhaka-1209 | |Md. Shirah-ud-doullah Bahar |
| |Hena Leather |44/1, Sher-e- Bangla Rd | |Md. Mozibur Rahman |
| | |Hazaribagh, Dhaka – 1209 | |44/1, |
| |M/S. Rabeya Khatun Tannery |49/3, Sher-e- Bangla Rd | |Md. Zamadul Haque |
| | |Hazaribagh, Dhaka – 1209 | | |
| |M/S. H L Enterprise |38, Sonatongor, Hazaribagh, Dhaka – 1209 | |Md. Abul Hashem |
| |M/S. Dil Bahar Tannery |116/B, Hazaribagh, Dhaka-1209 | |Md. Mostoffa Mia |
| |M/S. S A Leather |44/C, Sher-e- Bangla Rd | |Md. Mozaffar Rahman |
| | |Hazaribagh, Dhaka – 1209 | | |
| |R A N Leather |44/B, Sher-e- Bangla Rd | |Md. Masukur Rahman |
| | |Hazaribagh, Dhaka – 1209 | | |

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) |AIM Associate/ Imaco |124 Dhaka Tannery Market, Hazaribagh |
| |Chairman (BCIMA) | | |
| |Md. Mohsin Bhuiyan |Latex Tradelink |20, Sher-e-Bangla road, Hazaribagh |
| |Md. Khasrul Alam |M/s Tanvir & Co |130 KohinoorTannery market, Hazaribagh |
| |Md Mokhlesur Rahman | |28, Sonatongar, Zikatola, Dhaka |
| |Md. Morshed Haider |Haider Traders |28, Sonatongar, Zikatola, Dhaka |
| |Md. Bulbul Aiub |B.N.C |3/6, Sonatongar, Zikatola, Dhaka |
| |Md. Tofail Ahmed |T.A Trading |130 KohinoorTannery market, Hazaribagh |
| |Md. Habibur Rahman |Rupsi Traders |124 Dhaka Tannery Market, Hazaribagh |
| |Hazi Rabiullah |Taj Chemical |124 Dhaka Tannery Market, Hazaribagh |
| |Md. Altaf Hossain |A.H Enterprise |99 Hazaribagh Dhaka |
| |Mazakat Harun Manik |Chemitan Limited |124 Dhaka Tannery Market, Hazaribagh |
| |General Secretary (BCIMA) | | |
| |Md. Azizul Haque Hawladar |Romo Enterprise |99 Hazaribagh Dhaka |
| |Maksudur Rahman Shopon |Gonipur Agency |87, Sher-e-Bangla road, Zikatola |
| |Mostofa Akter Hossain |Fair International |86, Sher-e-Bangla road, Zikatola |
| |Md. Abul Hossain |Labony Traders |124 Dhaka Tannery Market, Hazaribagh |
| |Abdur Rouf Sabuj |Chemirex International |20, Sher-e-Bangla road, Zikatola |
| |T.M Manjur Hossain |Mahai Trading |146 Hazaribagh Dhaka |
| |Md. Iunus Khan | |165 Agrabad Chittagong |
| |Abu Musa | |27 kalurghat Chittagong |
| |Md. Mijanur Rahman | |130 Agrabad Chittagong |
| |Md. Amanullah | |115, Sher-e-Bangla road, Khulna |
| |Md. KhodaBoks | |23 Farajipara, Dalmil Road, Khulna |
| |Sirajul Islam | |24/2 Azimpur, Dhaka |
| |Abul Khayer Bhuiyan | |58, Terribazar, Chittagong |
| |Md Aiub Ali | |155, Dewanhat, Chittagong |
| |Md. Alauddin Hawladar | |Bibir Pukurpar, Barisal |
| |Md. Habibur Rahman Babul | |Alokanda, Barisal |
| |Md. Sayedul Islam | |49, Station Road, Dinajpur |
| |Azmal Hossain Bhoje | |Talukdar Guest House, Syedpur, Nilphamari |
| |Md. Zahangir Hossain | |6/1 Armanitola, Dhaka |
| |Md. Ainul Haque | |10/2 Armanitola, Dhaka |
| |Rafiqul Islam Badal | |23 TantiBazar Dhaka |
| |Md. Faruq Hossain | |23 TantiBazar Dhaka |
| |Iliasur Rahman Badal |M/s Ilias & Brothers |10 Chalk MughalTuli, Dhaka |
| |Samsul Alam | |20 Sena Kalyan Bhaban, Motijheel, Dhaka |
| |Md. Aworangojeb | |53 Motijheel, Dhaka |
| |Shamim Iqbal | |67 Motijheel, Dhaka |
| |Shahnewaj Khan | |Borobazar Ananda Mahol, Mymensing |
| |Md. Sadequr Rahman | |10 Station Road, Mymensing |
| |Md. Selim Reja | |Babubazar, Jessore |
| |Jafar Ahmed | |Myzdi Court, Noakhali |
| |Abul Kalam Azad | |26, Bangshal Road, Dhaka |
| |Abdur Rouf Mollah | |31 Nyabazar Market, Dhaka |
| |Abdur Razzak Bishwas | |35 Urdu Road Dhaka |
| |Hazi Bulbul Ahmed | |35 Urdu Road Dhaka |
| |Md. Lutfur Rahman | |14/15 Ispahani Building, Motijheel, Dhaka |
| |Md. Delwar Kader | |6 Motijheel, Dhaka |
| |Md. Shakawat Hossain | | |
| |Amar Saha |Trade Exchange |20, Sher-e-Bangla road, Zikatola |
| |Abdus Sattar | |130 KohinoorTannery market, Hazaribagh |
| |Monjurul Haque Niru |M.A Corporation |9, Dewan monjil, Sonatongar, Dhaka |
| |Md. Dulal | | |
| |Md. Fazlul Mukit |Progressive Leather & Footwear Co. |20, Sher-e-Bangla road, Hazaribagh |
| |Md. Zakir Hossain | | |
| |Md. Shafiqul Islam | | |
| |Md. Tarikul Islam (Mukul) |R.M International |124 Dhaka Tannery Market, Hazaribagh |
| |Khondaker Ahad Ahmed |Organo MultiTrade Int’l |H: 7, R: 4, Dhanmondi, Dhaka |
| |Abul Kalam Azad |A.T.L |143/A Hazaribagh |
| |Md. Nurul Anwar |Exim Trade Int’l |950/B Yakub Building, Khatunganj, Chittagong |
| |Md. Faruk Hossain | |1/5 Mizan Tower, Kalyanpur, Dhaka |
| |Md. Rafiqul Islam Babul |M/s Link Int’l |20, Sher-e-Bangla road, Hazaribagh |
| |Hazi Md. Abdus Salam |B.S Trading Co. |143/A Hazaribagh, Dhaka |
| |Rawsan Uz Zaman | | |
| |T.M Delwar Hossain |Bangladesh Leather Syndicates |13 Sahjahan Tannery Block, Hazaribagh |
| |T.M Belayet Hossain | |96/4 Monesshar road, Zikatola |
| |S.M Kamrujjaman | |124/B Hazaribagh, Dhaka |
| |Sirajul Islam |SF Trading |130 KohinoorTannery market, Hazaribagh |
| |Md. Tarek Hossain |All Leather Trade |48, Sher-e-Bangla road, Hazaribagh |
| |Hazi Md. Yusuf |M/s Lipi Leather |115 Hazaribagh |
| |A.K Moniruzzaman |Romisa Int’l |124 Hazaribagh, Dhaka |
| |Moklesur Rahman Patwari |Milon Enterprise |124 Hazaribagh, Dhaka |
| |Abul Kalam Azad |Imon Trading Corp. |15/F Zikatola |
| |Md. Siddikur Rahman |Buckman Laboratories |15/F Zikatola |
| |Khaza Ahmed |Asia Trading Corp. |20 Sahjahan Tannery Block, Hazaribagh |

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Managing Director

Executive
Director,
Pharma

Executive
Director,
Agro

Executive
Director,
Consumer

Executive
Director,
Trade

Executive
Director,
Operation

Managing
Director

General
Manager,
Corporate

Financial
Controller

General
Manager,
Distributor

Commercial
Manager

Audit
Manager

Dr Arif Dowla
Managing Director

Azmal Hossain
Executive Director (Trading)

A Khayer
Coordination Officer

Textile Division

Leather Chemical Division

Chemical Division

M S Dastidar
Asst. Manger, Commercial

Saiful Azam Kashem
Sr. Technical Sales Oficer

Munirul Islam
Technical Sales Oficer

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247 Mio Sq.Ft

Total:

63 Mio Sq.ft

Goat & Sheep

184 Mio Sq.Ft.

Cow & Buffalo

Table4.5: Availability of Raw Materials

Finished

Crust Leather
(Natural /dyed)

Sorting

Buffing &
Dedusting

Impregnation
&
Drying

Hydraulic Pressing

Rebuffing & Dedusting

Color Coating (By pad/spray Roller coater)

Drying

Ironing/Embossing

Color Coating (By Sprayer & drying)

Plating/Glazing

Finished

Crust

Wet blue Leather

Splitting

Shaving

Shaved weighing

Neutralization

Retaining/
Dyeing

Fat liquoring
(in drum)

Setting

Drying (Vacuum/ Tunnel/Natural)

Conditioning (By sawdust/ water)

Staking

Toggle Drying

Trimming

Crust

Samming

Wet Blue

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

Raw/Salted
Weighing

Washing &
Soaking (in drum/ paddle/pit) Liming (In drum/
/paddle/pit)

Fleshing

Pelt Weighing

Deliming
(in drum)

Bating (in drum)

Pickling (in drum)

Tanning (in drum)

Wet Blue

Scudding

Cutting

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

Closing

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

Closing

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

Footwear

Leather Goods

Designing

Pattern Making of Leather Goods

Designing

Pattern Making
Designing of Footwear

Cutting

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

Finishing

Total Finishing Work

Finishing

Total Finishing Work

Leather Goods

Footwear

Executive Director
ACI Trading Limited

Manager, Leather (Vacant)

Technical Sales officer

Senior Technical Sales officer