The light engineering sector is playing an important role to employment generation and Poverty alleviation through indigenous technology. A large number of SME entrepreneurs of Bangladesh have been producing various import substitute Light Engineering products. There are a lot of reasons to do better in this sector. Some of these are: skilled man power, competitive labour cost, English speaking population managerial excellence to deliver quality goods on time, indigenous availability of raw materials, large domestic market, etc.

The product lines of this sector (LES) are quite large and diversified. Machinery and spare parts produced by the entrepreneurs of the sector are supplied to various mills and factories such as jute, cotton, sugar, paper, textile, garments, fertilizer, tea plantation & processing industries, ferry, railways, power plants, construction sector, transport, pharmaceuticals, etc.

Day to day technological progress, adaptation of innovative concept & technical expertise are the continuous process of activities in upholding a firm pledge to reach a sustainable position to meet the challenge in the world market and the environment of globalization.

Some key features of the industry:

Around 40,000 Light Engineering Industries are operating all over the country, which engaged in production and manufacturing of highly value added engineering goods and services with the value of annual turn over more than TK. 5000 crore. In recognizing this fact, the government has declared this sector as a thrust sector in its Industry Policy –2005; 

In the Export Policy-2007, the sector has been attached as one of the Highest Priority Sector and 10% cash incentive is granted for the export of light engineering products.

Around 6 lakh people are directly involved with the light engineering sector; The Ministry of Commerce has established Light Engineering Product Business Promotion Council and SME Foundation has attached the industry as Booster Sector;

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Light Engineering Products 

Agricultural Machinery & Spares   

Motor launch & Marine Transport Spares

Textile Machinery & Spares

Jute Machinery & Spares   

Tea plant Machinery & Spares

Construction Machinery & Spares

Bread, Biscuit and Food Processing Machinery & Spares

Metal Furniture

Paper and Pulp Machinery & Spares

Mold & Dies         

 Components & Spares of Gas Transmission & Distribution

Printing & Packaging Machinery & Spares

Poultry Machinery & Spares

 Kitchen Wear & Bathroom Fittings 

 Metal Product & Hard Ware

LP Gas Cylinder & Fire Extinguisher 

Pharmaceutical Machinery & Spares                

Light engineering industry has two segments of market i.e. local market and export market. In the local demand, there is a secular growth around 50% per annum.

Bangladeshi light engineering industry has stepped their presence in export market. The major products include iron sheet, G.I. pipe, cast iron articles, aluminum household articles, iron chain, SS ware, machineries, diesel engine, motor parts, bicycle, light fittings, dry cell battery. In the year 2008-09 export of engineering products was US $300 million.

Competitiveness

Bangladesh has certain number of unique factors facilitating its competitiveness in the context of free market economy.

Availability of low-cost manpower;

Availability of raw materials through easy import;

Higher value addition for applying home grown technology and skills;

Lower utilities cost for government subsidy; 

Identified as thrust sector in The Industrial Policy (2005) and Highest Priority Sector in Export Policy (2006-09);

Agreement on WTO/TRIPs allows the entrepreneurs to easily copy of modern technology;

Enjoying GSP facility in EU & USA;

10% cash incentive for light engineering products;

Industry friendly tax and duty structure;

Development of some good institutes for promotion of light engineering sector LEPBPC, SME Cell and SME foundation;

Gradually picking up of LEP export;

Strong government, local financial institutions and development partners interest.

We are trying to build up a Sustainable Industrial Growth & Development to facilitating our light Engineering Industry Attain Global Competitiveness.

We are inviting all to Bangladesh.

Visit our industry to invest or import.

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