Singer secures 35-acre land in Araihazar for manufacturing complex

TBS Report

02 June 2022, 19:10

Last modification: 02 June 2022, 21:37

Chief Executive Officer and Managing Director of SINGER Bangladesh Limited MHM Fairoz and Bangladesh Special Economic Zone (BSEZ) Managing Director Taro Kawachi exchanging documents after signing an agreement under which SINGER Bangladesh will invest Tk680 crore to construct its new complex of manufacturing on an area of ​​35 acres of land at BSEZ in Narayanganj. Photo: courtesy

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Chief Executive Officer and Managing Director of SINGER Bangladesh Limited MHM Fairoz and Bangladesh Special Economic Zone (BSEZ) Managing Director Taro Kawachi exchanging documents after signing an agreement under which SINGER Bangladesh will invest Tk680 crore to construct its new complex of manufacturing on an area of ​​35 acres of land at BSEZ in Narayanganj. Photo: courtesy

Singer Bangladesh Ltd has signed an agreement with Bangladesh Special Economic Zone at Araihazar in Narayanganj to lease 35 acres of land to establish its new manufacturing complex.

Two months ago, the multinational electronics and home appliance retail chain announced Tk 680 crore in new investments to increase its manufacturing capacity.

Singer’s investment aims to reinvigorate the century-old brand in the booming local market.

The investment will be financed from internal sources and by borrowing from foreign and local banks.

The proposed manufacturing facilities will meet growing local demand with a competitive price and also help in the growth of the business, the listed company said in its disclosure.

On March 31, a senior company official told The Business Standard that it plans to build its third facility and the big news could be the ultimate solution for electronics and appliance manufacturing and assembly.

The new plant will draw on technology from Singer’s new Istanbul-based holding company, Arçelik, a world leader in white goods and cooling products.

Arçelik, which acquired 57% of Singer Bangladesh shares for $75 million in March 2019, showcases all of its global values, expertise and cutting-edge technologies to harness the best of the Singer brand, which has been on this earth for 117 years. .

Since the acquisition three years ago, Singer has already made technology investments of about Tk 80 crore and launched new technology refrigerators.

Can Dincer, commercial director at Arçelik Global and also director of Singer Bangladesh, told TBS in an interview in early March: “We are already investing in Singer and we have other plans for investment in facilities, production, product range, marketing and communication.”

“You will see how we add value to quality and R&D [research and development] aspects of products, very modern technology and production process in Bangladesh. This is our promise to consumers in Bangladesh: we are ready to contribute our best resources,” he added.

Singer, which started with sewing machines and eventually became the biggest household name for appliances and televisions in the country, lost momentum in the race in the 2010s, while the big wave of localization has makes Walton the largest player in the refrigerator and television market.

According to a report by UCB Asset Management last year, Singer competes with Walton as the second-largest brand with a market share of 12% in refrigerators and 11% in televisions, against the gigantic market shares of 72 % and 27% of Walton in both categories. respectively.

With a 13% market share, Singer lags behind General and Gree only in air conditioners and with an 18% market share, it is trying to catch up with Samsung in the washing machine market.

After achieving an annualized growth of 14% in the second half of the last decade, Bangladesh’s market for televisions, refrigerators, air conditioners, washing machines and kitchen appliances has reached around $2.5 billion, according to the report. UCB AMC.

With 100% of the population under electric coverage, rising per capita income and changing lifestyles have helped analysts expect the market to grow at an annualized rate of 17% to reach 10 billion. dollars by 2030.

Largely winning over the local market, Walton has become an exporter to dozens of countries, including Western markets, and the company is now pursuing its dream of being a leading global brand.

In his interview, Can Dincer of Arçelik said his company sees Bangladesh as a strategic hub in the region for exports.

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