RFL expands Bizli Cables product line with new medium-voltage cable
The trial production of the cable has already begun at a newly constructed factory
RFL Group, widely known as Pran-RFL Group, one of the leading business conglomerates in the country, has introduced a new product category — medium-voltage power cable — to its popular cable brand Bizli Cables.
The trial production of the cable has already begun at a newly constructed factory.
According to company officials, the medium-voltage cable market in the country is expanding but it is mostly import-dependent. The new product aims to reduce that dependency and meet the growing demand for medium-voltage cable as the government has initiated the installation of underground power cables across the country.
The group's concern, Rangpur Metal Industries Limited, which started its journey in 2013, runs the cable business under the brand name Bizli Cables.
Keep updated, follow The Business Standard's Google news channel
To produce medium-voltage power cables, Rangpur Metal has set up a fourth factory in its Habiganj Industrial Park establishment with a fresh investment of Tk60 crore. The new plant has a production capacity of 4,000 tonnes annually and has created employment opportunities for 200 people.
RFL has so far invested around Tk220 crore in building four factories in the Habiganj region, where ten types of cables, including power cables, communication cables, enamel wire, copper strips, optical fibre, and fire resistance cables are produced.
RN Paul, managing director of RFL, said, "The government has decided to transmit electricity, using underground or medium-voltage cables instead of overhead conductors. As a result, there will be considerable demand for cables for transmission of power throughout the country."
Currently, the size of the medium-voltage cable market approximates Tk1,000 crore. Some companies, including BRB Cables, BBS Cables and Partex Cables, are producing medium-voltage cables.
RN Paul said these companies account for 20% of overall consumption and the remaining 80% is imported. "To reduce impost dependency, we have enhanced our production capacity. Our factories are equipped with cutting-edge technology-based machinery so that we can produce any type of cable as per customer demand," he said.
"We have set up the new factory to boost production capacity with a view to capturing the market of the medium-voltage cable segment. The government can also save foreign currency by using locally made cables, Paul added.
The managing director also said the annual growth of Bizli Cables is about 25%, and its annual production capacity is around 26,400 tonnes. Of this, about 15,000 tonnes are currently in use. Bizli Cables currently employs 1,000 people.
The electrical cable industry is expanding due to increased demand and production of power. The overall market for electrical cables in Bangladesh is currently around Tk12,000 crore. The figure was approximately Tk2,000 crore ten years ago. Annual growth is around 20%.
Around 40% of the cables used in the country are for domestic purposes, while 60% are used for institutional purposes. About 30-35% of the cables currently used in the country are imported.
BRB Cables is leading the Bangladesh market, followed by Bizli Cables and BBS Cables. Other companies in the sector include Partex Cables, SQ, Eastern Cables, Citizen Cables, Poly Cables, and Walton.
RN Paul said, "To grab market share, we are producing high-quality cables by ensuring 99.99% proof copper—the basic raw material for cables."
Besides, he said, the firm is also producing HDMI (High-Definition Multimedia Interface) and USB (Universal Serial Bus) cables. HDMI and USB cables are used for various purposes, including mobile chargers and data transfer.
Bizli started exporting cables in 2021. Currently, electrical cables are being exported to India. There are plans to export electrical cables to various countries in Africa and to Australia in future, said the managing director.
According to industry insiders, the biggest obstacle to the development of the cable industry in Bangladesh is the high tariff on raw materials. Almost 100% of the raw materials are imported.
Raw materials used in the cable industry include copper, aluminium, steel, resin, calcium, and stabilisers. Import duty on these raw materials is about 40% on average. On the other hand, the duty on imported cables is, on average, 45%. As a result, the local industry is not growing at the expected pace, they added.
Businesses have called for reducing duty on imports of raw materials to protect the local cable industry, while also calling for high duty to be imposed on imported cables.
