Monno Ceramic plans to set up distribution networks in the Middle East, India
Monno Ceramic, a pioneering ceramic tableware manufacturer in the country, was founded 40 years ago. As the oldest company in the industry, its Head of Business Development, Khandaker Fayez Ahmed, discussed his experiences, the current business landscape, and future prospects in an interview with The Business Standard
Can you tell us about the current state of the ceramic tableware industry in Bangladesh?
Over the past decade, the ceramic tableware industry has experienced significant growth across multiple dimensions. Domestically, it has seen an average annual growth of 20-30%, while export markets have grown by 30-40% in the last three years. In terms of the overall ceramic industry, production capacity has increased by approximately 200% over the past five years.
Ceramic tableware is no longer just crockery; it is now regarded as a high-value lifestyle product. It plays a significant role in various aspects of lifestyle, including dining, home décor, occasional gifts, wedding gifts, corporate branding, hospitality, daily activities, and other important areas.
Bangladesh is now recognised globally as a producer of high-quality tableware ceramics, with our quality surpassing that of neighbouring countries like India and Sri Lanka.
What is Monno Ceramic's position in the tableware ceramic industry, and how do you maintain your competitive edge in this field?
Monno is undoubtedly the leading brand in the ceramic tableware industry and has been a prominent household name since 1984. Our market demand and brand recognition are unmatched by any competitor.
We stay ahead by consistently being one step forward. Using the highest quality raw materials, Monno ensures the supreme quality of its tableware products. Our products are contemporary yet timeless, crafted by world-class tableware designers from around the globe.
Through collaborations with international designers, Monno launches new collections every season, maintaining its lead. Additionally, extensive marketing strategies, robust distribution channels, and luxury flagship stores are key factors in Monno's continued success over its competition.
Another key factor in attracting affluent customers is the shopping experience. Monno offers a boutique shopping experience for tableware and homeware, a first-of-its-kind in the country.
Monno's modern technology and innovative designs provide a competitive edge, establishing the company as a strong contender in the ceramic tableware industry.
What have been the most significant achievements in Monno Ceramic's 40-year journey?
Monno Ceramic was the first company to export ceramic tableware from Bangladesh in 1986. We pioneered an entire industrial sector that now earns approximately $50 million annually for our country and employs over 25,000 workers.
We have won the "National Export Trophy" for ceramic tableware exports a record 12 times, the highest number of export trophies in this sector.
In recognition of Monno's four decades of heritage and pristine brand image, Superbrands has officially awarded Monno Ceramic the title of "Best Tableware Ceramic Brand in Bangladesh" for the second consecutive year.
We take pride in supplying our products as the "official souvenir" of the president of Bangladesh. Monno Ceramic has achieved a lasting legacy, with our broken ceramic plates being used to create a beautiful mural of our Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, and our Prime Minister, Sheikh Hasina, located at the Jajira Point along the Padma Bridge.
Among our achievements, none are more significant than the trust placed in Monno Ceramic by global brands.
What about the export potential of this industry?
Currently, tableware ceramic products are exported to over 50 countries, making it the seventh largest export item from Bangladesh. Projections indicate that it is poised to become the third-largest export item within the next five years.
The US-China trade tensions and the growing demand from Europe have significantly contributed to the export growth. The global market for ceramic products is expected to reach $408 billion by 2025.
The demand for high-quality ceramic tableware has surged in the global market, with Bangladesh consistently emerging as one of the premier sourcing destinations for renowned brands worldwide.
It is a source of pride for us that for the past 25-30 years, all the prominent global brands such as Williams-Sonoma, Pottery Barn, Fiskars, Rosenthal, Royal Doulton, Wedgwood, Marks & Spencer, Crate & Barrel, H&M, Denby, Rosendahl, Porsgrund, and others have been sourcing their tableware ceramic products from Bangladesh.
Is export affected by the gas crisis?
Currently, all tableware ceramic factories are facing significant challenges due to interrupted gas supply through the pipeline. Some factories are operating at only 60-70% of their production capacity due to this gas crisis.
As we are aware, uninterrupted gas supply is crucial in this industry for ensuring the quality of products. This is particularly critical during the glaze firing process, where achieving the desired whiteness of the product is essential.
In Bangladesh, all factories are engaged in OEM (Original Equipment Manufacturing) for other global brands. To maintain both quality standards and delivery timelines, uninterrupted gas supply is imperative.
In export markets, buyers often place orders for specific seasons or occasions, sometimes even developing designs tailored to those seasons. If we fail to meet delivery timelines, it results in significant losses. Orders may get cancelled, and we risk losing the trust of buyers, potentially leading them to shift orders to other countries.
Including CNG as an alternative is not a viable solution, as it would raise production costs, making us less competitive in the global market.
We consistently raise these issues with various government bodies through our Ceramic Association, urging them to take necessary actions.
What steps were implemented to decrease gas consumption?
In an era where consumers are increasingly conscious of environmental issues and the ecological footprint of their purchases, Monno Ceramic is committed to offering the most environmentally friendly products possible to its customers.
Since 2019, we have replaced all our old kilns with brand-new ones, resulting in a 45% reduction in our natural gas consumption. What used to take 26 hours to fire now only requires 6 hours.
Furthermore, we are actively striving to achieve zero waste status. All broken ceramic products are recycled and transformed into refractory bricks.
By 2026, we plan to install a state-of-the-art Effluent Treatment Plant (ETP) to ensure that all clay in our wastewater is fully extracted and recycled into our production process.
Additionally, we are collaborating with the state-owned Infrastructure Development Company Limited (IDCOL) to establish a 2 MW solar power plant on our factory roof, further offsetting our carbon footprint.
The next generation of consumers will be most drawn to eco-friendly, recycled, and sustainable products.
What types of assistance are required to enhance export market capacity?
Our primary request to the government is to guarantee an uninterrupted gas supply. Additionally, given our complete reliance on imported raw materials, we propose that the government provide concessions on import duties for the export industry.
What is the long-term vision, and how has it evolved over time?
Monno Ceramic envisions itself as a global brand, aiming to establish its own branded portfolio of tableware worldwide. Within the next five years, we plan to set up our distribution networks in the Middle East and India.
The recent launch of our flagship stores in Banani and Uttara in the capital revealed a growing demand for premium tableware and a unique shopping experience within our country. Consequently, we are currently in the process of opening franchise stores across the nation.
Moreover, recognising the significant demand for Monno's products among Bengali diasporas in the USA, UK, Canada, and Australia, we are gearing up to commence international shipping of our goods in the near future.