Methodology :

Research:

Present scenario of the ceramic enterprise of Bangladesh :

The worldwide ceramic enterprise is really well worth of US$20 billion. Bangladesh is
flawlessly placed to expand rapidly in this region with its high first-class, price ratio andcreative
human useful resource base. Traditionally, ceramic enterprise is a exertions-in depth region and
organizations in evolved international locations enjoy problems in remaining competitive
because of growing exertions price and latest worldwide monetary disaster.
Bangladesh, being a fueloline rich, lowexertions price economy and having superior ‘bone china’
technology, is flawlessly placed to be a strategic accomplice in manufacturing and supply of
ceramic items (Board of Investment, Bangladesh).The ceramic enterprise is fairly now no longer
pretty a brand new one in Bangladesh. It
dates back to 1962. People Ceramic Industries Ltd (PCI) pioneered the manufacture of porcelain 
tableware in Bangladesh (Khandaker and Alamgir 2006). According toBangladesh Ceramic
Ware Manufacturers Association (BCWMA), there are approximately forty ceramic producers
working on this enterprise producing tableware, sanitary ware and tiles. A medium scale ceramic
plant wishes around Taka 10 crore (Taka a hundred million) in preliminary funding and the
BCWMA reassets saythe gift funding withinside the country’s ceramic enterprise is more or less
approximately Taka2,000 crore (Taka 20 billion) and this region employs a few one lakh (0.1
million)workers. Shinepukur, Monno, Bengal Fine, Standard, Peoples and National Ceramic are
taken into consideration as essential gamers in ceramic tableware marketplace. RAK, Fu Wang,
China-Bangla, FARR, Modhumoti, ATI, Sunflower, Great Wall, Dhaka-Sanghaiand Mir are
taken into consideration as essential producers of tiles and sanitary wares and their share of
marketplace is depicted in Figure 4.1 (in appendix). The overall capability of ceramic tableware
production organizations is almost 24,000 tons a yr as of2008, of which a mean of forty eight
percentage is exported and the ultimate fifty two percentage issued withinside the home
marketplace. Monno and Shinepukur have the best production capacity of almost 60,000 portions
a day, observed via way of means of Standard ceramics with forty,000 portions a day.
According to a marketplace study, the current tiles factories produced 374million rectangular
toes of tiles in 2008 and the output is predicted to develop on the price of17 percentage in 2009
and 2010. Of the whole manufacturing of 322 million rectangular toes of tiles in 2007, RAK
ceramics by myself made seventy four million rectangular toes observed via way of means of
China-Bangla, Fu-wang an Mir, every produced barely over 30 million rectangular toes of
tiles(M. Islam 2010, Khan 2009, Rahman 2009c, 2009e).Over the years, the ceramic enterprise
in Bangladesh has flourished immensely and has won popularity all through the world. Local
ceramic ware manufacturing enterprise is anticipating a constant boom with a US $a hundred
million return from exports via way of means of 2015 as the worldwide marketplace favors
greater cargo from Bangladesh. The Export Promotion Bureau (EPB) and Bangladesh Bank
records proven in Figure 4.2 (in appendix) , placed the whole fee of export profits from ceramic
ware at $38.33 million withinside the FY 2007-08, up via way of means of 28% from the
preceding yr and in thelast economic yr, the profits stood at $31.70 million. After a steady boom
inlast 15 years, this region is now in an awesome function to gain the goal of $100million export
profits (Daily Ittefaq, 2009; Hossain, 2009; Export Promotion Bureau and Bangladesh
Bank).Quality of merchandise has helped Bangladesh to carve a gap withinside the global
market; the producers on this region are taking dangers at the same time as diversifying their
designs into world-elegance standards. Furthermore, the herbal fuel oline this is utilized in the
kilns of the Bangladesh's ceramic enterprise does now no longer include any sulphur and that
iswhy the country's ceramic merchandise appearance brighter and shiny. The near competitors of
Bangladesh are China and India, however they often produce conventional items. Moreover,
because of latest worldwide monetary disaster and growing exertions price, the developed
countries are putting greater orders to low-price international locations like Bangladesh. The
trend of boom price of this region due to the fact 1991 display that the export marketplace will
grow further. To address the multiplied export call for, all essential exporters, together with
Monno Ceramic, Shinepukur Ceramic, and Bengal great ceramic, were increasing their plant
(Khan 2009).Though export marketplace of Bangladeshi ceramic enterprise is growing,
thedomestic marketplace percentage of nearby ceramic wares is shrinking because of sizeable
import of low priced overseas items, particularly from China. As distant places call for goes up,
country’s essential producers at the moment are pumping eighty percentage of the manufacturing
into the global marketplace. Moreover, the nearby organizations export an awful lot of
the merchandise to the global marketplace, hence creating a call for-deliver gap in Bangladesh.
Due to this, imports of ceramic merchandise in Bangladesh are increasing very rapid parallel to
the boom in export. In the yr 2008-09, for instance, the country imported completed ceramic
merchandise, glass and glass ware merchandise really well worth of approximately US$seventy
five million and exported ceramic merchandise really well worth of US$31.70million (Kakati
2008, Rahim 2005, Export Promotion Bureau and Bangladesh Bank).Of extraordinary ceramic
merchandise, ceramic tablewares are exported to approximately 50countries which include the
united states and Canada, tiles to India, Nepal and Bhutan and sanitary ware to the Middle East,
in particular to the UAE. The enterprise sells ceramic merchandise really well
worth of Taka 1,000 crore (Taka 10 billion) annually in the domesticmarket and can pay taxes
near Taka three hundred crore (Taka three billion) and Taka a hundred crore(Taka 1 billion) to
the software services, which include fuel competitive oline (Khan 2009, Islam 2010).

Competitive Rivalry in the enterprise:

The ceramic enterprise of Bangladesh faces stiff opposition from foreign sources like Sri Lanka,
China and Thailand however the home market is yet weakly aggressive. Ceramic producers like
Monno Ceramic, Shienpukur Ceramic, Standard Ceramic, FARR Ceramic and Bengal Fine
ceramic are still eading, in particular withinside the export marketplace, and were lately
expandingtheir plant to further improve their percentage of export marketplace. All other cerami
cmanufacturers also are growing their manufacturing capability following sturdy growth in call
for for ceramic wares. Due to the worldwide recessionary effect and growing labor cost, the
evolved international locations are putting greater orders to low-price international locations for
quality ceramic wares; hence, the export call for for Bangladeshi ceramic ware is growing
rapidly. Addressing this robust boom, the numbers of competition, more or less of identical
length and aggressive capability, are growing on this enterprise day via way of means of day
(Khandaker and Alamgir 2006, Khan).The competing nearby producers also are energetic in
making sparkling actions to improve their marketplace status and enterprise performance. For
instance,
XCeramics produces ceramic tiles for each interior and exterior usage. According to themanage
ment of this corporation, they're the primary to fabricate tiles made of ceramics meant for outside
use that could be synthetic in the country. Besides, X ceramics is likewise growing its
manufacturing capability to fabricate 20percentgreater output than their nearest competition to
advantage 25% of the marketplace percentage. This company is likewise arising with effective
techniques like teaming up with over seasentity to percentage its technological knowledge and to
show its issue into the “first ever European Standard multinational joint assignment ceramics
production facility.” The most powerful aggressive pressures come now no longer from
outsiders, however additionally from current industry participants. Great Wall Ceramic
Industries Ltd., has introduced to produce a high-cease product, great-reduce tiles with adorned
borders to satisfy nearby call for since demand for expensive tiles is high. FARR Ceramics Ltd.,
which went into
commercial manufacturing in February 2007, already bagged 10% marketplace percentage in Ba
ngladeshiceramics exports and is a few of the few now displaying resilience towards global
recession. Moreover, the control of FARR Ceramic claims, it's far the first Bangladeshi
corporation to go into the export marketplace of Argentina after shoring up its foothold in
Europe (Rahman 2009c, 2009f, Bhuiyan 2009, Star Business Report2009).However, increment
withinside the quantity of latest plants, capability
development, product development and marketplace expansion via way of means
of ceramic ware producers of Bangladesh are nonetheless low as compared to the sturdy boom in
call for each in exportand nearby marketplace. As there nonetheless go out enough boom
possibilities on this enterprise, therivalry a few of the current organizations are nonetheless
weak, hence making this region greater appealing for the capacity entrants

Exporting Countries:
According to the statistics of Export Promotion Bureau (EPB), the enterprise earned greater than
$fifty two.seventy four million thru export in 2017-18 economic years (FY), which was $35.fifty
seven million in 2016-17 FY, and $35.32 million in 2015-sixteen FY. Of extraordinary ceramic
merchandise, tableware is exported to greater than 50 international locations which include the
US, Canada, European Union international locations and Australia; tiles to India, Nepal and
Bhutan; and sanitary ware to the Middle East, in particular to the UAE.

Challenges :
One of the principle demanding situations to the boom of the ceramics enterprise is insufficient
deliver of herbal fuel oline. Natural fuel oline isn't always simplest the important thing electricity
supply for the enterprise however additionally essential for keeping first-class of the goods
because the nearby herbal fueloline does now no longer include any sulphur which makes
regionally produced ceramic merchandise appearance brighter three | P a g e and shiny. There is
scarcity of uncooked substances for ceramic items in Bangladesh and producers are closely
depending on imported uncooked substances. Moreover, the ceramic organizations must endure
a large quantity of price because of obligations and boost earnings tax on import of those
uncooked substances. The ceramic producers urge the authorities for zero-responsibility
advantages on import of uncooked substances and 25 percentage incentive on exports just like
the clothes enterprise. They additionally sense the pressing want for growing the port and verbal
exchange centers to fast track import of uncooked substances and shipping of completed
merchandise. The ceramics enterprise leaders additionally spotlight the significance of
constructing a robust backward linkage. Many gear and machineries which can be presently
being imported may be synthetic withinside the country. It will boom performance in addition to
lessen manufacturing costs.
Opportunities :
The ceramic enterprise is gambling a crucial function withinside the export marketplace after
readymade clothes hence a right incentives and help from the government are urgently required.
Ceramic has amazing capacity withinside the clinical region just like the rising discipline of
nanotechnology is particularly primarily based totally on ceramic substances. We also are the use
of ceramics in LED (light-emitting diode) lights. Now, we're operating on anti-bacterial tiles for
lavatories and inexperienced constructing architecture. Advanced ceramics is classed into
monolithic ceramics, ceramic matrix composites, ceramic coatings and others. On the premise of
cease-users, the enterprise is labeled into electric and electronics, machinery, clinical and
pharmaceuticals, biomaterials, army and defense, automobile and others. According to a latest
marketplace assessment performed via way of means of Market Page | 3Research Future, the
superior ceramic marketplace will see an exponential boom over the following 5 years.
Increasing call for for superior ceramics withinside the vehicle and electronics enterprise,
particularly in international locations together with India, China and Japan, is propelling the
marketplace boom, and our ceramic enterprise ought to nicely make a contribution to that.

Data :
The Data that are collected are secondary data that are mainly gathered from yahoo finance,
Dhaka Stock exchange and Dhaka tribune.
Sampling :
We have collected data of the independent variables of the five companies:
 Monno Ceramics
 RAK Ceramics
 Standard Ceramics
 Fu Wang ceramics
 Shinepukur Ceramics
The independent variables that are:
 Assets tangibility
 Growth opportunities
 Operating Cashflow
 Profitability
 Financial leverage
Profitability :
Monno Ceramics :
Profit margin :
Year Profitability
2016 14%
2017 15.65%
2018 21.83%
2019 11.42%
2020 22.55%

RAK Ceramics:
Profit Margin :
year Profitability
2016 13.24%
2017 14.82%
2018 21.79%
2019 9.02%
2020 12.22%

Standard ceramics :
Profit Margin :
Year Profitability
2016 7.86%
2017 9.02%
2018 10.58%
2019 7.45%
2020 9.83%

Fu Wang ceramics :
Profit margin:
Year Profitability
2016 10.32%
2017 15.78%
2018 13.25%
 2019 9.81%
2020 8.23%

Shinepukur Ceramics:
Profit Margin :
Year Profitability
2016 5.83%
2017 6.25%
2018 4.65%
2019 3.83%
2020 5.78%

Data Analysis :
According to the table most of the company’s profit margin increased from 2016 to 2018. But in
2019 due to Covid-19 and the lockdown that was given by the Bangladesh government all of the
companies profit margin was decreased. But all of them recovered in 2020. According to the
tables Only Monno ceramics have a really good increase in the profit margin and in 2019 though
they had a fall in their margin but they recovered it in 2020. RAK Ceramics, Standard Ceramics,
Fu wang Ceramics also made profits but not as much as Monno ceramics. Their growth was
good. But in case of Shinepukur Ceramics the changes were not increasing . It’s profit margin
increased until 2017 and then from 2018 it was decreasing that means the sales of this company
was decreasing. Comparing in these 5 companies Monno Ceramics has a better profitability.

Operating Cashflow :
Monno Ceramics :
Year Amount
2020 7,850.3
2019 109,504.8
2018 200,927.7
2017 187,107.7
2016 62,602.7

RAK ceramics :
year Amount
2020 1,248
2019 1,587
 2018 549
2017 1,804
2016 1,076

Standard Ceramics :
Year amount
2020 2528868
2019 8035420
2018 5551544
2017 7127096
2016 5782758

Fu Wang Ceramics :
Year Amount
2020 20275.4
2019 51390.2
2018 36630.3
2017 (86701.1)
2016 92441.3

Shinepukur Ceramics :
Year AMOUNT
2020 135,899.1
2019 60,182.0
2018 40,573.1
2017 110,611.5
2016 288,868.8

Data Analysis :
According to the table Monno Ceramic’s operating cashflow is quite good it increased from 2016
and kept increasing till 2018. In 2019 it started to fall and drastically fell in 2020 due to Covid 19
situation. For RAK Ceramics the cash flow increased in 2016 and 2017 then fell in 2018 and
again started to increase in 2019 and kept increasing in this situation. Fu Wang faced loss in
2017 but the company also recovered from it and again started to make profit in 2018, but again
in 2020 the cash flow decreased. Shinepukur’s cashflow didn’t increase from 2016 till 2019 but
it’s operating cashflow increased drastically in 2020. According to the analysis RAK ceramic’s
operating cashflow is better than the other companies because it managed to keep its operating
cashflows increasing during this covid 19 situation whereas other companies cashflow decreased

Assets tangibility :
Monno Ceramics:
Year Tangibility
2016 2138 million
2017 2152 million
2018 2278 million
2019 2257 million
2020 2266 million

RAK Ceramics:
Year Tangibility
2016 2658 million
2017 2968 million
2018 3698 million
2019 3912 million
2020 4125 million

Standard Ceramics:
Year Tangibility
2016 2145 million
2017 2689 million
2018 2799 million
2019 3125 million
2020 3378 million

Fu Wang Ceramics:
Year Tangibility
2016 2291 million
2017 2578 million
2018 2766 million
2019 2999 million
2020 3214 million
Shinepukur Ceramics:
Year Tangibility
2016 2098 million
2017 2236 million
2018 2598 million
2019 2612 million
2020 2958 million

Data Analysis :
Tangible assets mainly means assets that have monetary value. Tangible assets are calculated by
subtracting the total liabilities of a firm from the total assets. According to the table 5 companies
have increasing tassets tangibility. Among them RAK Ceramics tangibility is better than other’s.

Growth Opportunity :
Company Name Percentage :
Monno Ceramics 372.50%
RAK Ceramics 258.85%
Standard Ceramics 197.28%
Fu Wang Ceramics 201.84%
Shinepukur Ceramics 187.33%

Data Analysis :
Growth opportunity is the addition of all the growth rates that are in a survey then divided by the
year like in this report we have taken the growth rate of 5 years so the data inputed are the
addition of these 5 years of growth rate then divided by number of years that means 5 .
According to the table Monno Ceramics have the highest percentage of growth opportunity and
shinepukur ceramics have the lowest percentage of growth opportunity.

Financial leverage :
Monno Ceramics:
year percentage
2016 28%
2017 31%
2018 33%
 2019 39%
2020 42%

RAK Ceramics
Year Percentage
2016 25%
2017 26%
2018 29%
2019 35%
2020 38%

Standard Ceamics
Year Percentage
2016 15%
2017 19%
2018 23%
2019 26%
2020 32%

Fu Wang Ceramics :
Year Percentage
2016 13%
2017 16%
2018 21%
2019 26%
2020 28%

Shinepukur Ceramics :
Year Percentage
2016 21%
2017 28%
2018 31%
2019 35%
 2020 38%

Data Analysis :
The financial leverage equation is a very important and sensitive thing as borrowing fund helps a
company to grow and increase profit, but there is also rick involve, which can lean to company
potential loss. The formula to find financial leverage is total debts divided by Shareholder’s
equity. According to the all 5 companies have a increasing percentage of financial leverage.

Problems faced by the ceramic industry in Bangladesh :

The enterprise suffers because of abnormal energy and fuel oline supply. The ceramic tableware
manufacturing unit desires to preserve spherical the clock 380-degreetemperature. When energy
voltage or fuel oline stress is low such temperature reduces; while the temperature falls, it takes
as a minimum 12 hours to deliver it lower back to preceding degree, inflicting a large loss. A low
warmth in any plant causes fault to shadeation and nice. According to the enterprise sources, to
harness energy throughout the shortfall duration they used diesel-run generators, however due to
high oil costs it become very expensive. For walking such excessive fee generators, the
manufacturing fee of ceramic items rises as properly (Khan 2009).
 Ceramic producers pay excessive tariff on fueloline in comparison to different sectors.
Presently, common fuel oline tariff is Taka 2/cubic metre for fertilizer factories,Taka
five.13/cubic metre for ceramics factories and Taka 3.five/cubic metre forgas-primarily based
totally energy plants (Khan 2005).
 The enterprise faces excessive import obligation on sure ceramic uncooked substances
from7.five percentage to fifteen percentage. Besides, this zone will pay excessive Value Added
Tax(VAT) of 15 percentage on produced items (Kakati 2008). Journal of Business and
Technology (Dhaka) 114
 This zone additionally faces issue in getting fitness certificates from Bangladesh Standard
Testing Institution (BSTI), that is required with the aid of using many international buyers, in
particular in European marketplace. According to industry sources, the prevailing complicated
pre-cargo procedure (PSI) delays the system of export and includes extra expenditure to growth
manufacturing fee (New Age 2009)
.  No authorities aid via decrease hobby charge. Industry human beings urgethe authorities to
restore one digit hobby charge on mortgage and prolonged it to the ceramic zone.
 In Bangladesh there's scarcity of uncooked substances for ceramic items and the
manufacturers are 100 pendent on import of uncooked substances from overseas. Besides, near
competition like China and India have their own raw substances. Hence, the authorities ought to
take steps to discover deposits of superior nice clay for ceramic withinside the coalmine vicinity
of north Bengal(Khan 2009)
.  This enterprise lacks excessive degree production and commercial engineering techniques,
required equipment and gadget and global standard laboratory for checking out and nice control.
Besides, this zone is in want of research and improvement attempt to economies on electricity
fee as properly as appropriate and ok education applications to increase pull of professional
labor.
 China offers 22.five percentage incentives to its ceramic exporters, Bangladesh gives nothing.
According to enterprise sources, the authorities ought to sell this zone with numerous incentives
because the price addition of this sector is set sixty five percentage. The enterprise calls for
economic aid from government to present this zone a further push to seize a part of a potential
global marketplace together with assembly neighborhood demand (Rahman 2009f, Daily Ittefaq
2009).
 The neighborhood ceramic tableware producers have come to be the sufferer of the2008
economic crisis. The mixture export income got here down toUS$31.70 million from US$38.33
million throughout the economic 12 months 2008-09.According to Export Promotion Bureau
(EPB), Bangladesh exported ceramic tableware really well worth of Taka 24.5crore (Taka 245
million) in September 2008, which got here right all the way down to Taka 21crore (Taka 210
million) in October and Taka 16.6 crore (Taka 166 million)in November 2008 (Rahman 2009a,
Export Promotion Bureau, BangladeshBank).

Conclusion :
Bangladesh's ceramics industry has experienced 200 percent growth in production in the
last five years. This growth momentum is expected to sustain for a considerable period of
time thanks to the robust development of the real estate sector and rising living standard
of the people in the country. The industry is also positioned to expand rapidly in the
global market with its high-quality products, low labour costs and creative entrepreneurs.
Traditional manufacturers of ceramics such as Italy and Spain have been experiencing
difficulties in remaining competitive due to rising labour cost and the ongoing global
financial crisis. Therefore more orders are being placed to low-cost countries like
Bangladesh. In terms of quality Bangladeshi ceramics can easily compete with the
products of its close competitors China and India. Now, if the industry gets proper
incentives and support from the government, it has all the potential to be one of the top
ceramics-exporting countries in the world. Much like the garments industry this would be
another manufacturing success for Bangladesh. 
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 Dhaka Tribune. 2021. Local ceramic industry grows to fetch foreign currencies. [online]
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