Electro Mart: Setting the standard for quality, affordability, and energy efficiency

Electro Mart has been manufacturing various electronic products including refrigerators, freezers and air conditioners of global brands including Konka and Gree with the "Made in Bangladesh" label for decades. Their dominant position in the market reflects the company's commitment to quality and affordability.

In a recent interview with The Business Standard, Nurul Afsar, deputy managing director of Electro Mart, shed light on the company's investment plans, product offerings, state-of-the-art technology, and the exceptional after-sales services provided to customers.

The discussion highlighted Electro Mart's dedication to delivering innovative and reliable products, as well as their focus on ensuring customer satisfaction.

How big is the electronics market in the country? What is your position?

The electronics products market in the country is estimated to be worth Tk22,000 crore-Tk25,000 crore, experiencing an annual growth rate of 10%-15%. Our market position varies across different product categories.

For instance, Gree dominates the market for air conditioners, capturing the majority of the market demand. Konka, on the other hand, holds approximately 10%-15% of the refrigerator and freezer products market. Additionally, we supply approximately 5%-10% of the market demand for other home appliances.

Which products have helped you the most to obtain a good position in the market?

We hold a strong market position for a range of products including Konka refrigerators and freezers, Konka LED TVs, Konka washing machines, Konka ceiling fans, and Gree air conditioners. Our reputation for delivering high-quality Konka refrigerators and freezers, as well as Gree air conditioners, has earned the trust of our customers.

Electro Mart has turned foreign brands into Bangladeshi brands. How did it happen?

In 1980, Mohammed Nurun Newaz Selim, the current chairman of the Electro Mart family, began his venture in Chattogram with a small office. Initially, he engaged in wholesaling electronics products imported from Hong Kong and Singapore. However, as the business grew, he expanded the wholesale operations nationwide to include products from Japan, Korea, China, Hong Kong, and Singapore.

With an initial investment of a few lakhs taka, he embarked on the trading business. Through his capable leadership and the collaborative efforts of his three brothers – Md Nurul Amin, Mohammad Nurussafa Majumder, and Md Nurul Afsar – the Electro Mart Group has flourished into a large electronics manufacturing industrial company. Today, the company employs approximately 7,000 people.

It was under this company that the renowned Konka fridges and Gree air conditioners were introduced to Bangladesh in 1998, marking the beginning of their journey in the country.

The decision to manufacture the products of these renowned brands in Bangladesh stemmed from the trust that customers had developed in their world-class quality offerings at affordable prices. As a result, we were able to proudly showcase the "Made in Bangladesh" signature on these two globally acclaimed brands.

You have set up various manufacturing units in Bangladesh. Tell us about the investment and its purpose?

The government's policy support has played a pivotal role in facilitating the establishment of our manufacturing factories. As a less developed country, the government of Bangladesh has consistently provided duty-tax exemptions in various sectors since its independence.

These initiatives aim to achieve a balance in international trade and transactions, foster the growth of business organisations, preserve foreign currency reserves, stimulate export markets, promote the utilisation of domestic products among the people, and enhance the country's branding internationally.

Building upon these efforts, over the past two years, various sectors with immense potential, including refrigerators, freezers, air conditioners, computers, motorcycles, cars, and mobile phone sets, have been developed and established as self-reliant and export-oriented industries.

In order to facilitate the growth of these sectors, special duty and tax concessions have been implemented for the import of raw materials and local production on an annual or term basis.

Inspired by the government's policy support, we made the transition from a trading business to manufacturing industries. With the government's favourable tariff facilities, investments worth around Tk5,000 crore have been made in the country in these sectors over the past few years. This has facilitated the introduction of advanced production technology into the country, leading to the creation of numerous employment opportunities for hundreds of thousands of people.

What kind of products do Bangladeshi customers prefer? What are their preferred price ranges?

Consumers of Bangladeshi electronics products are very interested in purchasing international standard products at affordable prices. With the touch of technology, people now get information about any product at their fingertips. As a result, it is now very easy for them to check the price and quality of the products. Every product marketed by us is of international standards and quality. Also, since all these products are produced in the country, it is possible to provide them to the customers at an affordable price.

Our Konka refrigerators and freezers stand out in the market due to their exceptional features and state-of-the-art technologies, setting them apart from other products in the same category. One of the key differentiators is the inclusion of blue-zone and vitamin fresh technology in our Konka fridges. This innovative feature helps preserve the freshness of stored food, ensuring that it remains as fresh as if it were just picked from the garden.

Additionally, our Konka fridges are equipped with active carbon deodorizer technology, which effectively deactivates bacteria. This advanced technology ensures that the taste and smell of the stored food in the refrigerator remain intact for an extended period, without any unwanted mixing of odours. As a result, each food item retains its distinct aroma and flavour, maintaining their individual characteristics.

In addition, Konka fridges have a unique technology known as the humidity controller in the vegetable box. This feature allows for precise control of humidity levels, ensuring that only the required amount of moisture enters the box to keep vegetables fresh for an extended period. By maintaining optimal humidity conditions, our fridge helps preserve the freshness and nutritional value of vegetables, allowing them to stay fresh for longer durations.

Furthermore, these refrigerators incorporate a European standard antifungal door gasket. This specialised gasket prevents the entry of external fungus and bacteria, providing a hygienic environment inside the fridge. This feature not only safeguards the stored food from contaminants but also minimises cooling loss.

Moreover, Konka refrigerators are equipped with phthalate-free gaskets, ensuring that no harmful germs are spread to the human body. Additionally, our refrigerators are designed with a five-D cooling system, an ESCR liner, and are silicone gel-free. These features, combined with the use of 100% food-grade and FDI certified materials, contribute to enhanced food quality and increased durability of the fridge.

The internal operation of the refrigerator can be easily controlled from outside through digital display technology and an electronic control system.

With the auto conversion technology in Konka deep freezers, the user can convert the deep freezer to a normal refrigerator at any time. In addition, by using super cool mode, a large amount of food can be iced in just 15 minutes keeping intact the quality of food.

Konka refrigerators are not only BSTI approved, but they also have a five-star energy savings rating. To ensure user convenience, special after-sales facilities are provided with every Konka refrigerator, guaranteeing effortless usage. We also offer a 10-year replacement warranty on compressors and a five-year warranty on other parts of refrigerators. Additionally, customers benefit from five years of free after-sales service, simplifying regular maintenance and servicing.

Nowadays, everyone wants to buy energy efficient products. What products do you have that fulfil this demand?

In today's market, consumers seek high-quality products with an affordable price. Electricity consumption is a crucial consideration when it comes to electronic appliances. Therefore, customers prioritise energy-efficient products. We take pride in being the sole company in Bangladesh that guarantees the most energy-efficient refrigerators, freezers, and air conditioners.

With the world's first boost inverter compressor, Gree air conditioners can save up to an impressive 70% in power consumption. Furthermore, our Konka, Haiko, and Gree brand fridges incorporate modern technology, digital displays, and inverter technology, making them highly energy-efficient, with savings of up to 71%. All Konka, Haiko, and Gree refrigerators are BSTI approved and carry a five-star energy savings rating.

Is the government's current policy strategy sufficient for the development of the electronics sector?

In the proposed budget for the fiscal year 2023-24, the government has demonstrated a commitment to promoting progressive production systems. This is evident through the continuation of tax and other benefits from the previous period, aimed at supporting the productive industries within the country. We appreciate the government's favourable policy towards the manufacturing of electronics products.

We kindly request the government to consider extending these policies for a period of 7-10 years. Consistency and longevity in government policies are essential for industries as they provide stability and attract foreign investors. Foreign investors often plan for the long term and having consistent policies in place will make the country an attractive investment destination. China serves as a remarkable example, as it has successfully attracted significant foreign investments in the past by offering consistent and long-term policies.

Due to various factors, foreign investors are considering moving their operations out of China, presenting an opportunity for Bangladesh. With the right policies in place, Bangladesh can attract these investors. Offering this facility until 2030 could potentially lead to significant investments in the sector.

European countries and China are currently facing challenges in facilitating these industries due to labour shortages. This situation puts us in a favourable position to seize this advantage and become an attractive destination for foreign investments in the manufacturing sector.