Light Engineering Product Business Promotion Council (LEPBPC)
About LEPBPC:
Light Engineering Sector (LES) has been recognized as an important sector in Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. With a view to promoting the country’s Light Engineering Sector; Ministry of Commerce has formed a Council on March 04, 2004 entitled "Light Engineering Product Business Promotion Council" (LEPBPC) with the partnership of both public and private sectors. The Hon’ble Secretary, Ministry of Commerce, is the ex-officio Chairman of the Council, while Vice Chairman of Export Promotion Bureau (EPB) is the 1st Vice Chairman and President, Bangladesh Engineering Industry Owners’ Association (BEIOA) is the 2nd Vice Chairman of the 25-member Council. The other government offices and member/associations related to LES are the member of the council.
Key Information:
The Light Engineering Sector (LES) is recognized as the mother industry of all other industries as they supply the basic elements of an industry, like capital machinery, spare parts and accessories with high potentiality to export in international market. Beside these, LES are now producing various kinds of import substitute products and services mostly for the domestic market. With the multifaceted backdrop of LES, few of the products of it are currently exported in different countries with immense global competition. The growth and diversification of light engineering products largely depends on the policy support, public-private jointly initiative for institutional and financial support, availability of technical and business information, innovation and sustainable development of technology and related products, capacity development of industries, research and development facilities and removal of other barriers relating to the engineering sector.
In the present context of globalization, the Ministry of Commerce has taken initiative as a part of the development and diversification strategy to support LES with the objective to increase industrial base and volume of foreign trade. The light engineering industries play a vital role in the socio-economic development of the Bangladesh.
Sector Profile in Bangladesh
Light Engineering Sector in Bangladesh:
Light Engineering Industries (LEI) Sector constitutes a significant segment of the economy of Bangladesh in terms of their contribution to employment, output, value addition and exports. LE occupies a unique position in the economy of Bangladesh. It plays a vital role in the socio-economic development of the country. The growth of the economy for alleviation of poverty and improvement of the well being of the people crucially depends on the development of the LEIs. Light Engineering enterprises are scattered throughout Bangladesh, which implies employment generation is also widespread. LES provides employment to 10 Lac semi-skilled, skilled and technically educated people and innovative entrepreneurs are actively engaged in 60,000 micro enterprises and 20,000 Small and Medium Enterprises, with a total investment of about USD 20 billion. The manufacturing sector contributes to 20% percent of the total GDP of Bangladesh and out of this LES contributes to about 2 percent of the GDP. The average annual turnover of the sector now stands at Tk. 200 billion.
LEIs are supplying the basic elements of an industry, like capital machinery, spare parts and accessories with high potential to export in international market. Beside these, LEIs are now also producing various kinds of import substitute products and services mostly for the domestic market. The products of light engineering sectors are: automobile spares, railway engine & rail line spares, bicycle & cycle rickshaw, Iron chain, machine tools, jute & textile machines and spares, chemical industry machines and spares, sugar and food industry machines & spares, engineering & metal industry machines and spares, marine and ship industry spares, agricultural machines, accessories and spares, plastic and related product machines and spares, electrical goods and accessories, etc.
Current Status of Light Engineering Sector in Bangladesh:
The Light Engineering Sector (LES) that draws the least attention of the policymakers has emerged as a potential cost cutting sector by producing at least 50% percent substitutes of imported items in the country. This important sub-sector is now providing critical support to industrial, agricultural and construction sectors by manufacturing a wide range of spare parts, castings, moulds and dices, oil and gas pipeline fittings and light machinery, as well as repairing those. Sector players claim that electrical goods like switch, socket, light shed, channel, cables and electrical fans, generator, which are manufactured by the LES are now meeting 48% to 52% of the country's demands, which was earlier met through import. Export growth was estimated at 30%. The light engineering sector as 'the mother of all sectors,' because it provides backup support to cement, paper, jute, textile, sugar, food processing, railway, shipping, garments capital machineries by repairing and maintaining those. A recent study conducted by International Finance Corporation (IFC) in partnership with UK Department for International Development and Norwegian government shows that LES has in its employment 6,00,000 people involved in 50,000 micro enterprises and 10,000 Small and Medium Enterprises.
Aims & Objectives
Aims & Objectives of the Council:
The light engineering products primarily to meet the domestic demand as import substitute and then for export market as well if appropriate guidance and supports could be provided to the industry. This needs special attention to the capacity building activities of supply side constraints in respect of improving human resources, acquiring appropriate technology, information about markets, products and technology, attaining quality and standards, policy advocacy, etc.
Thus the prime objective of forming the Council is to promote the sector to achieve competency in the local and global context as well as to help the industry building capacities in the field of human resources and acquiring technologies. The specific objectives of the Council are:
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- To promote and facilitate export of light engineering products and services;
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- To encourage and assist in balanced development of light engineering product and services;
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- To set up a common facility center for testing, training, standardization and certification of light engineering products and services;
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- To create positive attitude among policy planners, decision makers and stakeholders regarding the light engineering sector;
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- To promote and disseminate useful knowledge on light engineering product and services in particular, so as to enhance the contribution of these to the growth and development of the national economy; and
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- To develop linkage with different Institutions/Enterprises involved in promoting participation, both national and international and to help in the development of human resources required by the light engineering industries.
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Bridge Overview
An abridged overview of Bangladesh Light Engineering Product Sector:
- Light Engineering Sector (LES) have emerged as the cornerstone of development providing the platform for industrial growth, enhancement of trade and economic prosperity.
- The light engineering industries have potency to play a significant role in technological and economical development along with a vast scope of employment generation.
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- The Government of Bangladesh has declared light engineering sector as one of the most priority sector in the export policy 2021-2024.
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- Light Engineering Sector is classified as a sub-sector of Small & Medium Enterprises (SMEs). An estimate shows that there are about 60,000 light engineering industries in the country.
- Most of the industries are located at Dhaka, Chattogram, Narayangong, Bogura, Gazipur, Kishoreganj, Jashore, Saidpur and other location of the country.
- According to the estimate around 10 million technically educated and skilled people and innovative entrepreneurs are actively engaged with the sector.
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- In Bangladesh, all over 90% percent of light engineering industries are serving the local needs of the people. There are strong backward and forward linkages between the light engineering industries and other sector (such as agriculture, automobile, and transportation) of the economy in Bangladesh.
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- There are about 1,200 light engineering industries presently enlisted in Bangladesh Small & Cottage Industries Corporation (BSCIC) who are supplying various type of products (such as spare parts, equipment, capital machinery) under sub contacting scheme.
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- The product types of light engineering sector are: Automobile Spare parts, Railway engine & Rail line spare parts, Bicycle, Rickshaw, Machine tools, Jute & Textiles machines and spare parts, Chemical industries machines and spare parts, Sugar and food industries machines & spare parts, Engineering & metal industries spare parts, Ship industries spare parts, Agricultural machines accessories and spare parts.
- The light engineering industries of Bangladesh is currently producing a total 4,000 types of quality machinery, spares and accessories.
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- The consumer of light engineering products and services are both the public and private sector. Major public sector consumers are: Sugar and Food Industries Corporation, Bangladesh Chemical Industries Corporation, Bangladesh Railway, BRTA, BRTC, BIWTA, BIWTC, Port Authority, WASA, T&T, PDB, Public Health Engineering, Civil Aviation, Bangladesh Biman. The private sector is also the major consumer of the light engineering products.
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- A number of potential export quality light engineering products are going to foreign market on direct and subcontracting means. These are spare parts of Paper & Cement mills, Bicycle, Fancy light fitting, Construction equipment, Battery, Voltage stabilizer, Iron chain, Cast iron article, Carbon rod, Automobile spares, Electronics items, and Stainless steel wares.
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Executive Committee
Executive Committee members are as follows:
There is an Executive Committee of the Council to run the affairs of the Council. The Executive Committee of the Council consists of the following 18 members:
Chairman : Honourable Secretary, Ministry of Commerce (MoC)
1st Vice Chairman : Vice Chairman, Export Promotion Bureau (EPB)
2nd Vice Chairman : Prescient, Bangladesh Engineering Industry Owners’ Associations (BEIOA)
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4.
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One (1) Member representing the Ministry of Foreign Affairs not below the rank of Director General to be nominated by the Ministry of Foreign Affairs;
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5.
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One (1) Member representing the Ministry of Industries not below the rank of Joint Secretary to be nominated by the Ministry of Industries;
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6.
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One (1) member representing the BITAC not below the rank of Director to be nominated by BITAC;
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7.
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Joint Sectary (Export), Ministry of Commerce;
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8.
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One (1) member (Professor) of Bangladesh Industries of Appropriate Technology, Bangladesh University of Engineering & Technology, Dhaka;
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9.
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One (1) member of from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI);
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10.
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One (1) member of Bangladesh Small & Cottage Industries Corporation (BSCIC) of the rank of Director to nominated by BSCIC;
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11.
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One (1) member of BMTF (Not below the rank of General Manager) to nominated by BMTF;
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12.
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Five members from BEIOA to be nominated by the Executive Committee of BEIOA;
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13.
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One (1) member from BEMMA to be nominated by the Executive Committee Bangladesh Bank (not below the rank of General Manager);
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14.
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One (1) member from BAAMA to be nominated by the Executive Committee of BAAMA;
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15.
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One (1) member from NASCIB to be nominated by the Executive Committee of NASCIB;
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16.
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One (1) member from BBPMEA to be nominated by the Executive Committee of BBPMEA;
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17.
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Five members (including two members from leading exporters of the LEI sector) from corporate members of the Council to be co-opted by the Executive Committee of the Council; and
18. One (1) member from ABMEAB to be nominated by the Executive Committee of ABMEAB
Member/Associations:
- Bangladesh Engineering Industry Owner's Association (BEIOA)
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- Bangladesh Electrical Merchandise Manufacturers Association (BEMMA)
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- National Association of Small and Cottage Industries of Bangladesh (NASCIB)
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- Accumulator Battery Manufacturers & Exporters Association of Bangladesh (ABMEAB)
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- Bangladesh Bi-Cycle & Parts Manufacturers and Exporters Association (BBPMEA)
Activities of LEPBPC
Competency Assessment:
A competency assessment survey on light engineering sector was completed by the LEPBPC with the cooperation of Institute of Appropriate Technology, BUET. The objective of the study was to make a competency assessment of various sub sector of light engineering sector and to identify the potential categories of industries and products that could be promoted for export. The report has suggested various matters to be considered for improvement of the light engineering sector of the country. The report would help in devising plans for implementing various programs to be considered for the improvement of the light engineering sector of the country. Major recommendations of the competency assessment report are:
- Light engineering sector is one of the important sectors for the economy of Bangladesh;
- A definite policy for light engineering sector should be prepared;
- Data Bank for the light engineering sector may be created;
- Light engineering industries required exposure to modern machines and technology;
- Entrepreneurial culture should be established so that there capability can be upgraded from the average level to excellent level;
- There should be arrangement for periodic/permanent exhibition of locally produced engineering produced in the country;
- Professional training courses should be organized for capacity building of the light engineering sector;
- Technological status of product/production technology should be upgraded from conventional to modern level as per market demand; and
- Awareness campaign on standardization and quality of the products should be made.
Capacity Building Training Workshop:
LEPBPC has organized several training workshop in association with IAT, BUET, BITAC and other member/associations all over in Bangladesh. Objectives of the training workshops were to develop managerial, technical and operational capacity of human resource working in the industry. The training workshop are to develop awareness for integration of modern tools, instruments & machinery and technologies, to improve product quality of the light engineering industries, and to enhance capability of the LEIs with respect to material processing by introducing appropriate technology. The capacity building issue of the light engineering industries has been addressed by the LEPBPC through organizing training workshop. There are different modules organized under the training workshops were covered in the program on need based for the sector.
The module related Training Workshops are:
capacity building of light engineering industries are:
- productivity management in light engineering industries;
- Productivity Management and Quality Control in Engineering Industries;
- Productivity Management and Quality Control of Electrical Products;
- Marketing Management of Light Engineering Products in local and International Markets;
- Heat Treatment and quality assurance system;
- Advance Technology Management & CNC System;
- Light Engineering Product Diversification;
- Foundry Development & Management;
- Effective Value Chain Management in LE Firms;
- Improve Efficiency in SME Marketing;
- Welding for light engineering workshop;
- Technology Up-gradation in Light Engineering Sector;
- Special Emphasis to CNC Machines;
- Standards and Compliances of Les;
- Banking Procedure for Small Business Finance;
- Rules & Procedures of Tax, VAT, Turnover, Income Tax and H. S. Code;
- Effective value chain management in LE firms in local and International Market;
- Rules & Procedures of VAT, Turnover, Tax benefits for cottage industries;
- Procedures to Registration, Trade Mark, Design & Patent related to Electrical sector; and
- Strategic management of technology in Light Engineering sector with special emphasis
Seminar:
LEPBPC, and member/associations have jointly organized seminar program of Light Engineering Products from FY 2005 to 2023. Participant from member/associations and financial institutions were attended and discussed various issues of international trade of light engineering products. Participants from industry, associations, FBCCI, DCCI, Bank/financial institutions, media were attended in the seminar. Various aspects of international trade of light engineering products were discussed in the seminar. The entrepreneurs sought Government policy support to resolve.
The following issues were highlighted and discussed on the need basis of light engineering sector in the seminars are:
- International trade of light engineering products;
- Problems and prospects of export of light engineering products;
- Access to Finance - Roadmap for the light engineering sector;
- Increase Productivity & Revenue by Simplifying VAT Rules;
- Electrical Industry, Its problem, solution and prospect;
- Productivity Improvement Through Maintaining Proper Quality Management in Light Engineering sector;
- Access to Market Information and Technology up gradation for SMEs in LES; and
- Contribution of Light Engineering Sector in Achieving Sustainable Development goal by 2030
Publication:
Light Engineering Product Business Promotion Council (LEPBPC) has published "Sales Kit" as a promotional tool of light engineering product and industries. The sales kit is useful for the entrepreneurs and investors to have basic information about the sector.
Awareness Program:
LEPBPC has organized awareness program in association with member/associations with the objective to develop awareness among the stakeholders. The programs included Inaugural ceremony, Seminar on prospects and potency of light engineering sector, display of light engineering products and meet the press. Total numbers of engineering industries showcase their products and industries. The viewers in the display stall showed their keen interest about locally manufactured light engineering products. In the seminar there are lot of participants attended and shared their views and experience regarding the problems and challenges of light engineering sector.
Fair Participation National:
LEPBPC has organized international products fair in support and cooperation from LEPBPC in member/associations. The programs included inaugural ceremony, seminar on prospects and potency of light engineering sector, display of light engineering products and meet the press. Objective of the program was to show case the engineering products for the buyer and to create awareness about quality goods produced by the local manufactures through press and electronics media. Major products category was light fittings, cables, electrical accessories, generator, fan wires and spare parts of Machinery.
Besides display of products and capacity of local industries, a technical seminar was organized on prospects and potentials of electrical and engineering products of Bangladesh. A buyer-seller meet was also organized to appraise the potentials and existing customers about quality and diversification of the products. The manufacturers claimed that they were able to manufacture international standard and quality products with competitive price.
Overseas Technology Mission:
LEPBPC has organized trade and technology mission in support and cooperation from the member/associations. The objective of the mission was to explore the possibility and modality of transferring appropriate technology for light engineering sector of Bangladesh. The ultimate aim was to upgrade technological capabilities of our local industries through technology transfer, adaptation and dissemination. The mission also intended to develop business relationship with the counterpart of countries light engineering industry entrepreneurs.
Export Scenario of Light Engineering
Export Scenario of Light Engineering Product Sector:
Mn. US $
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Fiscal Year
Sector
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2013-14
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2014-15
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2015-16
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2016-17
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2017-18
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2018-19
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2019-20
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2020-21
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Export Performance
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Export Performance
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Export Performance
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Export Performance
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Export Performance
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Export Performance
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Export Performance
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Export Performance
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Light Engineering Product
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366.63
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447.04
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510.08
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688.84
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355.96
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341.3
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292.92
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529
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(a) Bicycle
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112.89
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126.06
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99.15
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82.46
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85.73
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84.24
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82.84
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130.89
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(b) Engineering Products
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63.06
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83.03
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174.80
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271.09
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147.48
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161.68
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151.19
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330.63
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(c) Electronics & Electrical Products
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190.68
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237.95
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236.13
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335.29
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122.75
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95.38
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58.89
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67.48
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Source: Export Promotion Bureau of Bangladesh (EPB)
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Light Engineering Product
Member/Associations related address of LEPBPC
1. Bangladesh Engineering Industry Owner's Association (BEIOA)
38, Tipu Sultan Road, Wari, Dhaka-1100
Phone: 47111161
Email: beioa2008@gmail.com
2. Bangladesh Electrical Merchandise Manufacturers Association (BEMMA)
6, B.C.C Road (1st Floor)
Nowabpur, Dhaka - 1203
Tel: 9562126
Email: bemmabd@gmail.com
3. National Association of Small and Cottage Industries of Bangladesh (NASCIB)
Mejbahuddin Plaza, (6th Floor)
91, New Circular Road, Mouchak, Dhaka-1217
Tel: 48322709
Fax: 48322709
Email: nascibbd@gmail.com
4. Bangladesh Automobile Assemblers & Manufacturers Association (BAAMA)
Runner Group Head Office (10th Floor)
138/1, Tejgaon Industrial Area
North Begunbari, Dhaka-1208
Fax: 8870171/8870164
Email: baama95@yahoo.com
5. Bangladesh Bi-Cycle & Parts Manufacturers and Exporters Association (BBPMEA)
187/188/B, Tejgaon Industrial Area, Dhaka
Tel: 8817611- 4
Fax: 9887674
Email: supal@meghnabangladesh.com
6. Accumulator Battery Manufacturers & Exporters Association of Bangladesh (ABMEAB)
13, Mohakhali C/A,
Dhaka-1212
Mob: 0171-4086326
Email: babma705@gmail.com
Contact:
Light Engineering Product Business Promotion Council (LEPBPC)
Ministry of Commerce, GoB
BFIDC Building (8th Floor)
73, Motijheel Commercial Area
Dhaka - 1000, Bangladesh
Tel: +880-(0)2-9514434, 9514435
Fax: +88-02-7117003
Email: lepbpcmoc@gmail.com
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