Bangladeshi fridge makers eye big market abroad

Infographics: TBS

At a time when Bangladesh urgently needs to diversify its export basket, the country's refrigerator makers, in the process of almost phasing out imports, are eyeing the big global market. 

The around $50 billion global refrigerator market is expected to grow at a 5.6% compound annual rate till 2028-29, while the Asia Pacific region is expected to outpace it with a 6.5% growth rate, according to Research and Markets. 

Already making up over 55% of the global refrigerator market, the region is expected to be the key growth centre due to the huge consumer base increasingly depending on refrigerated food, their analysts said. 

Bangladesh, depending on 20 apparel products for 84% of its export earnings, needs diversification, according to the Production Transformation Policy Review of Bangladesh report published by UNCTAD last year. 

The report named pharmaceuticals and electronics as the next big potential sectors. 

For future-readying the economy, UNCTAD suggested a gradual shift in the mindset of doing business, from a price-led competitiveness model to an innovation-driven one.

Refrigerators and various electronic appliances makers here seem to be well aligned with that notion.

Economist M Mashrur Reaz, chairman of Policy Exchange Bangladesh, said Vietnam raised their light manufacturing exports in two decades to $114 billion and the same success story can be replicated here, especially after the tremendous local manufacturing wave in the electronic appliances sector. 

Firms having knowhow, innovation and ambition can lead the way to a vast global market, he said, adding that a national sector competitiveness strategy is needed, which should include supportive policies, duty structure and foreign direct investment to help with market access. 

Homegrown Walton started refrigerator manufacturing in 2008 and started exporting some units at the beginning of the last decade. But there was no big leap until the company emerged to be a compressor maker in 2017. 

Meanwhile, occupying over 70% of the billion dollar refrigerator market at home, it excelled in technologies too through its gigantic research and development and production facilities. 

Walton fridges are being exported to over 40 Asian, African and European countries and the big boost came in 2020-21, when it entered the Indian market that now accounts 84% of the country's refrigerator export income. 

After rigorous market and product research, another brand, Vision by Pran-RFL Group, started exports later last year and already they have reached nearly a dozen markets. 

"While showcasing our technology, we found many foreign buyers loving our refrigerators among other appliances, they are ordering repeatedly," said Kamruzzaman Kamal, marketing director at Pran-RFL." 

"We are planning big and would expect supportive policies that help build the local capacity to phase out imports," he said, adding, "Duty structure matters a lot for competitiveness in the international markets." 

Nurul Afsar, deputy managing director of Electro Mart, which manufactures popular Konka and Gree branded electronic appliances, said his company is planning to go overseas next year. 

"Having deep studies of the Indian, Nepalese, Sri Lankan and several other markets, we have been in talks with buyers there and we are adapting our technology eyeing their markets and weather conditions for a successful endeavour abroad," he said. 

"It is really wonderful to see how Bangladesh turned into a refrigerator exporting country from a fully import-dependent one in a decade of local manufacturing," said Md Abu Tariq Zia Chowdhury, chief marketing officer of Orion Home Appliance. 

His company has built a large home appliances manufacturing factory in Mymensingh and eyes export markets for a stronger market footprint. 

Walton and its sub brand Marcel, Minister, Singer, Jamuna, Vision, Konka, My One, Eco, Orion, Samsung and a few other brands with their locally manufactured refrigerators now occupy over 90% of the country's billion dollar refrigerator market, selling around 3 million units annually. 

Walton's Deputy Chief Business officer for refrigerator Anisur Rahman Mollik said they have exported 1 lakh units till the last fiscal year. It is looking to export 3 lakh units in 2026. 

"There is a huge opportunity ahead beyond the borders as we are gaining a strong foothold every year in terms of quality, reliability and innovation," he added.