Saidpur's cookware puts footprint in global market

Until the late 1970s, there was no aluminum factory in Nilphamari, despite growing demand for aluminium products in the region. The demand was being met with products from Bogura. Recognising the success in Bogura, a similar business started to flourish in the surrounding districts. 

Royal Relax Metal Industries, which is part of the Noah Group, was established in Saidpur, Nilphamari, in 1978 to manufacture aluminium products. Over 32 years, it evolved into the only export-oriented cookware industry in the northern region.

Today, Royal Relax Metal Industries exports its products to three countries, India, Bhutan and Nepal, with an annual turnover ranging from three to five lakh dollars. In the current month, the company plans to export products worth $22,000 to Bhutan.

The transformation of the company began in 2004 when it started manufacturing steel-made pressure cookers. Subsequently, it expanded its product range to include rice cookers, gas stoves, kettles, blenders, induction stoves and non-stick products. It began exporting its products in fiscal year 2010-11.

Located near the central bus terminal of Nilphamari, adjacent to the Saidpur-Rangpur Highway, Royal Relax Metal Industries was established on approximately three acres of land in 1978. The company produces a wide range of kitchen products, including pots, pans, ladles, cooking pots, non-stick fry pans, casseroles and woks.

The factory in Saidpur, which initially began operating in Bogura, has its origins in the Dupchanchia upazila of Bogura. Due to convenient transportation via rail and river routes, the first aluminium industry in the area was established in 1954. About 15 establishments gradually set up operations, including the factory owned by Raju Poddar, who is now a director of Royal Relax Metal Industries. The family's connections in Saidpur grew as one of Raju's sisters got married there. Saidpur has always been a commercially significant area due to its good rail and road connectivity. In the 1970s, members of Raju's family recognised the extensive demand for aluminium products in the region and established an aluminium factory near the Saidpur Bus Terminal.

The company is currently run by directors Raju Poddar and Gokul Kumar Poddar, with Puja Devi Poddar, wife of Gokul Kumar Poddar, as the owner. Initially, foreign technicians were brought in to operate the factory machinery and train local technicians. However, local technicians now manage the machinery with expertise.

Royal Relax Metal Industries imports various raw materials, including aluminium circles, PTFE coatings, fittings, polishing materials, polishing buffs, SS circles, SS fittings, and electric rice cooker parts from India, China, and Malaysia. These raw materials are used to manufacture high-quality products.

Due to its strategic location, Saidpur plays a crucial role in the factory's operations, serving a vast market area that covers Rangpur and Dinajpur. The factory employs around 300 workers, with 40% of them being women, and 5 to 7 disabled workers.

Putul Rani, one of the employees in the factory, used to work as a tailor before but now works as a laborer in the factory. Putul, who lives in the neighbouring area of Taraganj in Saidpur, is married to Pratap, who works at a garment factory in Taraganj due to walking disabilities. Putul cannot engage in other jobs due to her foot problems. She mentioned that there are no issues regarding the working environment or payment in the factory. Working in Royal Relax Metal Industries brings her peace.

Another worker, Monira Khatoon, can handle a wide range of tasks related to iron production. She has been working at Royal Relax Metal Industries for the past 10 years. According to her, she can perform any task related to the production of electric goods there. Her income supports her family, and the factory produces excellent quality products.

Raju Poddar explained that previously, Bangladesh used to rely heavily on imports for various kitchen items, including rice cookers, pressure cookers and blenders. However, now only 1% of these items are imported, as many local companies are manufacturing these products, he said. Some of them even export their products to Europe, Raju said, adding this has become a significant source of income for the country.

This establishment promotes products with the "Made in Bangladesh" label to increase the country's pride. Raju said the company is now utilising 25% of its capability and so there is scope for its expansion.

Some challenges

Despite its growth and potential the company faces various challenges like non-availability of uninterrupted power supply and harassment by VAT and tax officials, Raju said. 

"We pay Tk10 crore to Tk12 crore in VAT to the government each year. Besides, we pay taxes amounting to at least Tk2.5 crore per annum. Despite that, some unscrupulous tax officials harass us in order to pocket some money illegally. Due to the harassment, many businessmen are considering closing their factories," he said.

Price hikes in fuel, load shedding, and other issues have also affected market competition. However, the gas pipeline has now reached Nilphamari. To enhance the local industry, gas connections need to be provided for factories based on priority. This will help the country gain an upper hand in product exports.

Akhtar Hossain Swapan, a director of the Nilphamari Chamber of Commerce and Industry, emphasizes the importance of developing Chilahati, an upazila of the district bordering India, into a full-fledged port for trade and commerce. This will improve connectivity with India. Additionally, converting Saidpur airport into an international airport will facilitate product exports and further transform the region into a significant industrial hub, providing employment to thousands of people.