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Motorbike industry expanding as manufacturing cost reduced

Business Report
 
Manufacturing of motorbikes in the country is set to grow faster with the reduction in import duty under the ongoing fiscal 2016-17 on import of motorbike parts to assemble in the country.
The government has reduced the duty by up to 20 percent to allow the cost of buying and it has in turn increased sales to a large extent. Local assembling and sales have already jumped to two lakhs unit in 2016 and sales may grow up to 2.8 lakhs in 2017, as the industry sources said. 
Business sources said bank and financial institutions should give low cost loans to buyers who are mainly younger people in business and office goers. Moreover the industry should grow more backward linkage industry around the main assembling plans to bring the sector booming at a faster rate. 
Eight firms, including Japan’s Honda and Suzuki and India’s Bajaj, TVS and Hero, are set to establish facilities to manufacture motorcycles in Bangladesh after the duty benefits.
The development comes after the National Board of Revenue at the start of the fiscal year offered 20 percent duty rebate on import of motorcycles in completely knocked down (CKD) format for firms that want to sign up as progressive manufacturers.
As progressive manufacturers, the firms would require two years to build the parts locally from the third year onwards they can manufacture some of the components locally.
In response, Bangladesh Honda Private Ltd (BHL), Speedoz, Uttara Motor Corporation, Menoka Motors, TVS Auto Bangladesh, Aftab Automobiles, Rancon Motorbikes and Niloy Motors applied for permission to the industries ministry for the privilege.
After getting the scope to import motorcycles in CKD form at reduced duty, most of the firms have cut the prices of bikes in the last two months. The price cut has also buoyed demand and contributed to the expansion of the overall market; nearly two lakh units were sold in 2016, according to industry insiders.
TVS has already passed on the benefits of reduced duty to customers. The firms that got the benefit have cut prices by 10-18 percent depending on models. The joint venture between Japan’s Honda Motor and Bangladesh Steel & Engineering Corporation is producing the most popular 100-110cc bike, which now costs Tk 1 lakh to Tk 1.20 lakh, down from Tk 1.20 lakh to Tk 1.42 lakh.
Demand has risen as cost fallen. The overall market size has expanded, the industry insiders said. 
They said the overall motorcycle market will increase to nearly 2.8 lakh units at the end of 2017.
But they said the rise in demand will substantially grow if banks and leasing firms start financing buyers for purchase of the two-wheelers. Citing example of India, Pakistan, Sri Lanka and Vietnam they said banks and leasing companies propelled the expansion of motorcycle market by offering financing.
Without the expansion of the market to five lakh units a year, backward linkage industry for manufacturing spare parts and other components will not be viable, Chairman of Uttara Motors Matiur Rahman said. They are local assembler and sole distributor of Bajaj Auto n Bangladesh. 
Uttara Motors is taking preparations to start manufacturing of motorcycles, he said 
Industry insiders said a medium term policy will give idea to investors about the government’s vision for the sector. It may be at least for a period of five year, he said. 
He also urged the NBR to impose import duty on basic raw materials at 1 percent and semi-finished and finished components at 5-10 percent so that local assembling plants can reduce the prices of bikes to attract buyers and expand the market.

Comment

Business Report
 
Manufacturing of motorbikes in the country is set to grow faster with the reduction in import duty under the ongoing fiscal 2016-17 on import of motorbike parts to assemble in the country.
The government has reduced the duty by up to 20 percent to allow the cost of buying and it has in turn increased sales to a large extent. Local assembling and sales have already jumped to two lakhs unit in 2016 and sales may grow up to 2.8 lakhs in 2017, as the industry sources said. 
Business sources said bank and financial institutions should give low cost loans to buyers who are mainly younger people in business and office goers. Moreover the industry should grow more backward linkage industry around the main assembling plans to bring the sector booming at a faster rate. 
Eight firms, including Japan’s Honda and Suzuki and India’s Bajaj, TVS and Hero, are set to establish facilities to manufacture motorcycles in Bangladesh after the duty benefits.
The development comes after the National Board of Revenue at the start of the fiscal year offered 20 percent duty rebate on import of motorcycles in completely knocked down (CKD) format for firms that want to sign up as progressive manufacturers.
As progressive manufacturers, the firms would require two years to build the parts locally from the third year onwards they can manufacture some of the components locally.
In response, Bangladesh Honda Private Ltd (BHL), Speedoz, Uttara Motor Corporation, Menoka Motors, TVS Auto Bangladesh, Aftab Automobiles, Rancon Motorbikes and Niloy Motors applied for permission to the industries ministry for the privilege.
After getting the scope to import motorcycles in CKD form at reduced duty, most of the firms have cut the prices of bikes in the last two months. The price cut has also buoyed demand and contributed to the expansion of the overall market; nearly two lakh units were sold in 2016, according to industry insiders.
TVS has already passed on the benefits of reduced duty to customers. The firms that got the benefit have cut prices by 10-18 percent depending on models. The joint venture between Japan’s Honda Motor and Bangladesh Steel & Engineering Corporation is producing the most popular 100-110cc bike, which now costs Tk 1 lakh to Tk 1.20 lakh, down from Tk 1.20 lakh to Tk 1.42 lakh.
Demand has risen as cost fallen. The overall market size has expanded, the industry insiders said. 
They said the overall motorcycle market will increase to nearly 2.8 lakh units at the end of 2017.
But they said the rise in demand will substantially grow if banks and leasing firms start financing buyers for purchase of the two-wheelers. Citing example of India, Pakistan, Sri Lanka and Vietnam they said banks and leasing companies propelled the expansion of motorcycle market by offering financing.
Without the expansion of the market to five lakh units a year, backward linkage industry for manufacturing spare parts and other components will not be viable, Chairman of Uttara Motors Matiur Rahman said. They are local assembler and sole distributor of Bajaj Auto n Bangladesh. 
Uttara Motors is taking preparations to start manufacturing of motorcycles, he said 
Industry insiders said a medium term policy will give idea to investors about the government’s vision for the sector. It may be at least for a period of five year, he said. 
He also urged the NBR to impose import duty on basic raw materials at 1 percent and semi-finished and finished components at 5-10 percent so that local assembling plants can reduce the prices of bikes to attract buyers and expand the market.

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Bangladesh Bank, Shahjalal Islami Bank signed refinancing deal

Business Report
 
A participatory agreement has been signed between Bangladesh Bank and Shahjalal Islami Bank Limited on “Urban Building Safety Project” assisted by Japan International Co-operation Agency (JICA) on February 13 at Jahangir Alam Conference Hall, Bangladesh Bank, Head office, Dhaka. 
Governor of Bangladesh Bank Mr. Fazle Kabir was present on the occasion. Managing Director of Shahjalal Islami Bank Ltd. (SJIBL) Mr. Farman R Chowdhury and General Manager of SME&SP Division of Bangladesh Bank Mr. Swapan Kumar Roy signed the agreement for the two organizations.
Under this agreement Shahjalal Islami Bank will get fund from the refinancing fund of Bangladesh Bank on long term basis. After getting the fund the bank will be able to finance reconstruction of RMG buildings, their relocation and other fire safety measures.
Deputy Governor of Bangladesh Bank Mr. S. K. Sur Chowdhury, Chief Representative of Japan International Co-operation Agency (JICA) Takatoshi Nishikata, High officials of Bangladesh Bank and EVP and Head of Corporate Division of Shahjalal Islami Bank Mr. Md. Monzurul Alam Chowdhury were also present in the agreement signing ceremony, said a press release.

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Business Report
 
A participatory agreement has been signed between Bangladesh Bank and Shahjalal Islami Bank Limited on “Urban Building Safety Project” assisted by Japan International Co-operation Agency (JICA) on February 13 at Jahangir Alam Conference Hall, Bangladesh Bank, Head office, Dhaka. 
Governor of Bangladesh Bank Mr. Fazle Kabir was present on the occasion. Managing Director of Shahjalal Islami Bank Ltd. (SJIBL) Mr. Farman R Chowdhury and General Manager of SME&SP Division of Bangladesh Bank Mr. Swapan Kumar Roy signed the agreement for the two organizations.
Under this agreement Shahjalal Islami Bank will get fund from the refinancing fund of Bangladesh Bank on long term basis. After getting the fund the bank will be able to finance reconstruction of RMG buildings, their relocation and other fire safety measures.
Deputy Governor of Bangladesh Bank Mr. S. K. Sur Chowdhury, Chief Representative of Japan International Co-operation Agency (JICA) Takatoshi Nishikata, High officials of Bangladesh Bank and EVP and Head of Corporate Division of Shahjalal Islami Bank Mr. Md. Monzurul Alam Chowdhury were also present in the agreement signing ceremony, said a press release.

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BRAC Bank supports UCEP Institute of Science and Technology 

Business Report
 
BRAC Bank Limited has partnered with UCEP Institute of Science and Technology (UIST) that offers financial contribution for development of  technical education at affordable cost. 
The partnership will be used to establish an E-Library for the students of the polytechnic institute at Mirpur, Dhaka. Mr. Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, handed over the contribution to Mr. A Q Siddiqui, Chairperson, UCEP Board of Governors, at a program.
The programme held at BRAC Bank Head Office. Mr. Zaki Hasan, Chief Executive Officer, UCEP Bangladesh, and senior officials were present.
UIST Dhaka is the first polytechnic institute of UCEP Bangladesh to provide quality higher technical education to the youth of the country. Started in 2015, UIST currently provides diploma degree in Mechanical, Civil and Electrical Technology. 
As a value-based bank, BRAC Bank invests in CSR programs that have lasting and long term impact on people and society.

Comment

Business Report
 
BRAC Bank Limited has partnered with UCEP Institute of Science and Technology (UIST) that offers financial contribution for development of  technical education at affordable cost. 
The partnership will be used to establish an E-Library for the students of the polytechnic institute at Mirpur, Dhaka. Mr. Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, handed over the contribution to Mr. A Q Siddiqui, Chairperson, UCEP Board of Governors, at a program.
The programme held at BRAC Bank Head Office. Mr. Zaki Hasan, Chief Executive Officer, UCEP Bangladesh, and senior officials were present.
UIST Dhaka is the first polytechnic institute of UCEP Bangladesh to provide quality higher technical education to the youth of the country. Started in 2015, UIST currently provides diploma degree in Mechanical, Civil and Electrical Technology. 
As a value-based bank, BRAC Bank invests in CSR programs that have lasting and long term impact on people and society.

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Participatory democracy for participatory economy

Holiday Report
 
Nobel Laureate Professor Muhammad Yunus at a three Day National Women’s Parliament held last week in Amaravati, India said financial service is like oxygen of economic life of people. 
Bottom half of people, particularly women at bottom level do not have access to this oxygen. That is why their economic life remains extremely weak. This oxygen remains for exclusive use of the wealthy privileged. 
He said participatory democracy will not materialize without participatory economy.  Organized by Andhra Pradesh (AP) Legislative Assembly, with the theme of ‘Empowering Women — Strengthening Democracy’ over 12000 young women from all over India participated in the conference. 
Professor Yunus said, ‘Ensuring participatory democracy is a fundamental goal. But we all should remember that participatory democracy is not feasible without participatory economy.   
Economy that we have in the world today is certainly not a participatory economy. Bottom half of the population hardly has any share in it. One percent of population of the world owns 99 percent of the global wealth. That does not sound very participatory.”
Nobel Laureate and spiritual leader Dalai Lama, Union Ministers M Venkaiah Naidu and P Ashok Gajapati Raju, AP Chief Minister N Chandrababu Naidu, Puducherry Lieutenant Governor Kiran Bedi, Gandhian Ela Bhatt, Speaker of Bangladesh Parliament Shirin Sharmin Chaudhury, actress Manisha Koirala and many other dignitaries attended the inaugural event of the conference.
The vision of NWP is to enable and encourage social, political and economic empowerment of women in all strata of the society. One of the objectives of NWP is to generate new ideas, concepts, theories and ideologies for women empowerment.
Earlier Professor Yunus shared his personal experience in battling poverty in Bangladesh and abroad at a packed auditorium at the Indian Institute of Management-Bangalore (IIMB). He told students and faculty members that all human beings are entrepreneurs. They are not born to work for someone else.
He suggested that IIMB may start a ‘social MBA’ program to facilitate tackling social problems. He also talked at St Joseph Institute of Management (SJIM), Bangalore on Social business model as a toll to solve human problem. 

Comment

Holiday Report
 
Nobel Laureate Professor Muhammad Yunus at a three Day National Women’s Parliament held last week in Amaravati, India said financial service is like oxygen of economic life of people. 
Bottom half of people, particularly women at bottom level do not have access to this oxygen. That is why their economic life remains extremely weak. This oxygen remains for exclusive use of the wealthy privileged. 
He said participatory democracy will not materialize without participatory economy.  Organized by Andhra Pradesh (AP) Legislative Assembly, with the theme of ‘Empowering Women — Strengthening Democracy’ over 12000 young women from all over India participated in the conference. 
Professor Yunus said, ‘Ensuring participatory democracy is a fundamental goal. But we all should remember that participatory democracy is not feasible without participatory economy.   
Economy that we have in the world today is certainly not a participatory economy. Bottom half of the population hardly has any share in it. One percent of population of the world owns 99 percent of the global wealth. That does not sound very participatory.”
Nobel Laureate and spiritual leader Dalai Lama, Union Ministers M Venkaiah Naidu and P Ashok Gajapati Raju, AP Chief Minister N Chandrababu Naidu, Puducherry Lieutenant Governor Kiran Bedi, Gandhian Ela Bhatt, Speaker of Bangladesh Parliament Shirin Sharmin Chaudhury, actress Manisha Koirala and many other dignitaries attended the inaugural event of the conference.
The vision of NWP is to enable and encourage social, political and economic empowerment of women in all strata of the society. One of the objectives of NWP is to generate new ideas, concepts, theories and ideologies for women empowerment.
Earlier Professor Yunus shared his personal experience in battling poverty in Bangladesh and abroad at a packed auditorium at the Indian Institute of Management-Bangalore (IIMB). He told students and faculty members that all human beings are entrepreneurs. They are not born to work for someone else.
He suggested that IIMB may start a ‘social MBA’ program to facilitate tackling social problems. He also talked at St Joseph Institute of Management (SJIM), Bangalore on Social business model as a toll to solve human problem. 

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EBL signs agreement with BB for long term funding

Business Report
 
Eastern Bank Ltd (EBL) signed a Participating Financial Institutions (PFI) Agreement with Bangladesh Bank under JICA assisted Urban Building Safety Project (UBSP), today, Feb 13 at the Bangladesh Bank office in the city.
Ali Reza Iftekhar Managing Director and CEO of EBL signed the Agreement on behalf of the Bank.  Fazle Kabir, Governor, S.K. Sur Chowdhury, Deputy Governor, Bangladesh Bank. 
Takatoshi Nishikata, Chief Representative at Dhaka JICA Office, Ahmed Shaheen, Deputy Managing Director of EBL were  present on the occasion. 
Under the Agreement, EBL will get PFI fund for long term basis for up to 15 years. The fund can be applied for development of Fire safety, Retrofitting, Rebuilding and Relocation of Garments factories.

Comment

Business Report
 
Eastern Bank Ltd (EBL) signed a Participating Financial Institutions (PFI) Agreement with Bangladesh Bank under JICA assisted Urban Building Safety Project (UBSP), today, Feb 13 at the Bangladesh Bank office in the city.
Ali Reza Iftekhar Managing Director and CEO of EBL signed the Agreement on behalf of the Bank.  Fazle Kabir, Governor, S.K. Sur Chowdhury, Deputy Governor, Bangladesh Bank. 
Takatoshi Nishikata, Chief Representative at Dhaka JICA Office, Ahmed Shaheen, Deputy Managing Director of EBL were  present on the occasion. 
Under the Agreement, EBL will get PFI fund for long term basis for up to 15 years. The fund can be applied for development of Fire safety, Retrofitting, Rebuilding and Relocation of Garments factories.

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MTB organizes BAMLCO Conference-2017

Business Report
 
Mutual Trust Bank Limited (MTB) organized the Branch Anti- Money Laundering Compliance Officers’ (BAMLCO) Conference-2017 on Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) on February 11.
Held at BRAC-CDM, Khagan, Savar, General Manager of Bangladesh Financial Intelligence Unit (BFIU Mr Debaprosad Debnath attended the program as chief Guest. A B M Zahurul Huda, Deputy General Manager, Md. Khairul Anam, Joint Director of BFIU, MTB Additional Managing Director & Chief Operating Officer (COO), Md. Hashem Chowdhury, Deputy Managing Directors, Syed Rafiqul Haq and Goutam Prosad Das, Chief Anti Money Laundering Compliance Officer, Swapan Kumar Biswas, BAMLCOs of all MTB Branches, attended the conference. 
Officials MTB Securities Ltd. and MTB Capital Ltd., Heads of different departments/divisions along with other senior officials of MTB were also present. 
The objective of the conference was to protect the crime and combat its surge. It aims at refreshing the knowledge of BAMLCOs and make officers aware of the new guidelines, circulars of the Central Bank and MTB’s strategy to face the challenges ahead in terms of AML & CFT. 
At the end of the conference, all MTB officials vowed to fight Money Laundering (ML) and Terrorist Financing (TF) by all means, said a press release.

Comment

Business Report
 
Mutual Trust Bank Limited (MTB) organized the Branch Anti- Money Laundering Compliance Officers’ (BAMLCO) Conference-2017 on Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) on February 11.
Held at BRAC-CDM, Khagan, Savar, General Manager of Bangladesh Financial Intelligence Unit (BFIU Mr Debaprosad Debnath attended the program as chief Guest. A B M Zahurul Huda, Deputy General Manager, Md. Khairul Anam, Joint Director of BFIU, MTB Additional Managing Director & Chief Operating Officer (COO), Md. Hashem Chowdhury, Deputy Managing Directors, Syed Rafiqul Haq and Goutam Prosad Das, Chief Anti Money Laundering Compliance Officer, Swapan Kumar Biswas, BAMLCOs of all MTB Branches, attended the conference. 
Officials MTB Securities Ltd. and MTB Capital Ltd., Heads of different departments/divisions along with other senior officials of MTB were also present. 
The objective of the conference was to protect the crime and combat its surge. It aims at refreshing the knowledge of BAMLCOs and make officers aware of the new guidelines, circulars of the Central Bank and MTB’s strategy to face the challenges ahead in terms of AML & CFT. 
At the end of the conference, all MTB officials vowed to fight Money Laundering (ML) and Terrorist Financing (TF) by all means, said a press release.

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BIPD organized Workshop on “Insurance & Risk Management”

Business Report
 
Bangladesh Institute for Professional Development (BIPD) organized a three days Workshop on “Insurance & Risk Management” at BIPD Auditorium, Topkhana Road, Dhaka from 13-15 February 2017. 
The workshop was inaugurates by Kazi Md. Mortuza Ali ACII, Director General, BIPD. Experts on Banking and Insurance presented papers in this workshop. 
The sessions were conducted by distinguished personalities like Mr. ABM NurulHaque, Mr. Md. Abdus Salam, Ms. Shamshad Begum, Mr.Ehsanul Haque, FCII, Mr.Abdul Kadir and Mr. Khalid Saifullah Bakshi. Senior Executives of different Bank and Insurance Companies participated in the workshop.

Comment

Business Report
 
Bangladesh Institute for Professional Development (BIPD) organized a three days Workshop on “Insurance & Risk Management” at BIPD Auditorium, Topkhana Road, Dhaka from 13-15 February 2017. 
The workshop was inaugurates by Kazi Md. Mortuza Ali ACII, Director General, BIPD. Experts on Banking and Insurance presented papers in this workshop. 
The sessions were conducted by distinguished personalities like Mr. ABM NurulHaque, Mr. Md. Abdus Salam, Ms. Shamshad Begum, Mr.Ehsanul Haque, FCII, Mr.Abdul Kadir and Mr. Khalid Saifullah Bakshi. Senior Executives of different Bank and Insurance Companies participated in the workshop.

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