Earning from bicycle export rises by 58 pc

Kazi Zahidul Hasan

Despite the on going global recession earnings from the country’s bicycle export rose by more than 58 per cent in the first nine months of current fiscal year.
Bangladesh’s bicycle export is growing fast as European buyers are looking for non-traditional countries like Bangladesh for import of the light engineering item at cheaper prices, said industry insiders.

Local bicycle manufacturers fetched US$ 61.84 million from export of bicycle in the July-March in fiscal 2008-09 over the same period of last fiscal, according to the Export Promotion Bureau (EPB).

Bangladesh exported $39.01 million worth of bicycles at the same period in 2007-08 and total earning from the sector was 64.28 in that fiscal. The value addition is about 20-25 per cent after spending foreign exchange on imports of raw materials.

Meanwhile, local exporters fetched US$ 52.74 million from export of bicycle in the first eight months (July-February) in the current fiscal year over the same period of last fiscal, said the EPB statistics.

“Demand for local bicycles in the European Union (EU) markets is now on the rise due to mainly price competitiveness,” said Halim Khan, executive director of Meghna Group, The company is the pioneer in bicycle manufacturing.

He said China, the world’s main bicycle exporting country, is now converting its industries into high-end products and this is helping Bangladesh’s bicycles industry.

“At least four thousand bicycle industries in China are on the verge of closure due to price high steel price, creating more opportunities for the local exporters,” he added.

“Besides, the global bicycle manufacturing leader China is not at all encouraging investment in such light engineering venture like bicycles in the country,” Khan added.

He also said the growth rate in the third quarter of the current fiscal could be more as some developed nations are at present passing through in recession.

Khan said the UK is the main potential buyer for local bicycle manufacturers, where Bangladesh has been exporting major quantity of the export.”

“Low cost labour and availability of latest technology helped Bangladesh compete with regional non-traditional countries, including Thailand, Vietnam, by manufacturing fashionable bicycles,” he added.

Industry insiders said Bangladeshi manufacturers have been exporting around 0.5 million of bicycles per annum in the global market, mainly to the EU.

They said Bangladesh has been exporting mid-range bicycles in the global market, average price is ranging between $ 80- $ 85 per unit.

According to industry sources, some 15 local companies, employing over 3000 workers, are manufacturing and assembling sport bicycles for export.

Currently, they said world’s some of the leading companies, including Raleigh, PCM and Motor and Sports of the UK and Aldi of Holland, Bachtenkirch Interbike of Germany, M&F De Scheemaeker and Formula Cycling of Belgium are importing bicycles from Bangladesh.

Bangladesh manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes. Industry insiders said the country can export around 2.0 million pieces of bicycles a year.

According to industry sources, some 15 local companies, employing over 3,000 workers, are manufacturing and assembling bicycles for export.

Bangladesh manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes. Industry insiders said the country can export around 2.0 million pieces of bicycles a year.