Bangladesh is emerging as one of the major textile clothing products exporting nations. The demand for textile chemicals (dyes and auxiliaries) in the country has increased sharply in the recent years. Low worker wages and easy raw material availability are some of the prime factors driving the country’s textile industry as well as other allied industries such as textile chemicals to reach its destination.
The Dyestuff sector is one of the important segments of the chemical industry in Bangladesh, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts for the largest consumption of dyestuffs at nearly 70%. Also there are so many chemicals are used in different industrial areas at present stage. The textile wet processing industry is a chemicals based industry. Different types of chemicals are needed in the processing of different types of textile materials. So chemicals play a vital role in textile industry. More textiles than ever are now manufactured and used, and chemicals are added for an ever increasing number of purposes. And these chemicals do indeed offer certain benefits. They can, for example, make the manufacturing processes easier and endow the final products with a specific function or a particular desirable appearance. These textiles may, for example, be greenhouse fabrics that reflect the sunlight; flameproof furniture fabrics, durable airbags for vehicles, color-coordinated bath towels, hard-wearing sweaters or work wear that effectively withstands moisture and dirt. Without chemicals it would almost be impossible to produce modern textiles. There are number of companies or suppliers supply the chemicals in the Bangladesh, Some of their Bangladeshi suppliers and some of their foreigner companies. So there is a vast market demand in textile chemicals. As Bangladesh has experienced the total export volume of RMG in 2013-14 fiscal year about USD 24.5 billion and has set up a target to increase the export volume almost double to existing by 2021, as an integrate part of “vision 2021”. It has a new slogan: “$50 billion by 2021”, and now the time to reduce trade deficit and to increase retention money which can be emulated by supporting through backward linkage and thus manufacturing textile chemicals. Perspective Plan of Bangladesh 2010-2021 has emphasized the need for gearing industrialization to achieve the macroeconomic performance target of 8% growth target by 2015 and 10% growth by 2021. The overarching goal for the country’s industrialization, as the document of Perspective plan noted, is to enhance the industrial contribution to GDP to 40% over the next decade, with a share of 30% for the manufacturing sector. This market research report offers a perspective on the actual market situation, trends and future outlook for chemical in Bangladesh. The study provides essential market information for decision-makers for the related business personnel including.
-To gain an in-depth understanding of textile chemicals market in Bangladesh.
-To identify the ongoing trends and anticipated growth in the coming years.
-Prospect and challenges of chemicals industries in Bangladesh.
The information contained in this report is based on both primary and secondary sources. Primary research included interviews with textile chemicals suppliers and industry
experts. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and proprietary databases, bank reports, and different company websites. The main data source would be secondary data base of BBS, Bangladesh Planning Commission, and Bangladesh bank, EPB, UN, World Bank and IMF and other country’s data from their website as well as from some companies of Bangladesh. In spite of the limitations of data of BBS, we have relied heavily on BBS. We have used data of Economic Census of BBS to cover entire textile chemical industry sector. There is no uniformity of definition of different size of chemical market in between the regulatory agencies. We have taken the definition of BBS for analysis. It is a research analysis of empirical based works that helps in forecasting for Bangladesh chemical industry market a lot.
Segments of Chemicals Industry :The industry includes a wide variety of products from commodity chemicals to research driven specialized products. On a broader base, the industries can be divided into three categories, namely basic, Dyes manufacturing and other auxiliaries manufacturing. The main industries under each head are as follows:
Basic Chemicals Industries:
In Bangladesh belong to mainly Chlor-Alkali Plant & its Chlorinated product and Hydrogen peroxide plant. Main products are being produced from these basic chemicals Industries are Caustic Soda (NaOH), Chlorine (Cl2), Hydrochloric Acid (HCl), Sodium Hypochlorite (NaOCl), Stable Bleaching Powder (SBP), Chlorinated Paraffin Wax (CPW) and Hydrogen Peroxide (H2O2). Some companies, as for instance Samuda, ASM chemical, Dysin Chem Ltd etc., are presently manufacturing some basic chemicals.
Dyes Manufacturing Industries :
At present, it is difficult to specify the name of dye manufacturing companies who are providing dyes complying world class buyer standard. We are doing our business by importing directly or through indenters.
Below chart contains some names and contact details of renowned indentors and agents of multinational companies doing business in Bangladesh.
Auxiliaries Manufacturing Industries:
Many companies are nowadays manufacturing textiles auxiliaries like wetting agent, sequestering agent, detergent, polyamide softeners, silicon softeners, anti-back staining agent, different fixing agents etc. DYSIN-CHEM LTD., is the pioneer of textile chemical manufacturing, mostly for pretreatment, for dyeing, for finishing, and for garments printing.
Global Scenario Studied:
Global chemical industry is estimated to be USD 3.5 trillion and considered one of the fastest growing sectors of the manufacturing industry. The base chemicals form the largest segment accounting for 45% of the total industry, followed by pharmaceuticals accounting for 27%, specialty chemicals attributing 22% followed by bio-technology and agro-chemicals at 5% and 1%, respectively. Of these specialties, chemicals are expected to grow at a faster pace in the next few years in comparison to their global counterparts.
Below are world`s top five textile chemical exporters (in USD Billion).
List of foreign Chemical Manufacturers Company other than Bangladesh
In case of chemical, Bangladesh is fully depends on foreign chemical companies. Every year Bangladesh import huge quantity of chemical from foreign companies. A large number of companies supply chemicals in Bangladesh. We highlighted only top companies, they export in Bangladesh.
Table 2: List of chemicals manufacturers companies in Bangladesh.
Kisco-kyunin synthetic corporation (Korea)
Global chemicals Co., ltd. (China)
Tian huiquan fine chemical co. ltd. (Korea)
Huntsman ( Singapore)
Chuan Hawlle Hubei Dyestuffs Co. ( China)
Modern Dyestuffs Company ( Thailand)
General View of Chemical Business in Other Countries :
Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the mass people, but, which are required in almost all walks of life. Over the last decade, the Indian chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. With investments in R&D, the industry is registering significant growth in the knowledge sector comprising of specialty chemicals, fine chemicals and pharmaceuticals.
The chemical and petrochemical sector in India presently constitutes 14 per cent of the industrial domestic activity. It should also be noted that investments in this sector are highly capital intensive with long gestation periods. The growth of petrochemicals and chemicals is projected at 12.6 per cent and 8 per cent respectively in the 11th five year plan. According to the United Nations Industrial Development Organization (UNIDO), in terms of value added at constant 2000 prices, the Indian chemical Industry is 6 th in the world and 3rd in Asia .
China, we find, now a days, is manufacturing a lion’s share of chemicals and exporting to Bangladesh. China started their textile business through processing textile material as initially they were not capable of chemical manufacturing. Now, they are shifting their business to manufacturing textile coloring materials, auxiliaries, basic chemicals as well as enzyme.
According to “China Textile Chemicals Market Forecast & Opportunities, 2019”, the textile chemicals market in China is projected to witness a CAGR of 9.7% during till 2019.
Results of the Study:
Results Perspective on Bangladesh:
Global Scenario on chemical industry shows that chemical business can be profitable for Bangladesh also if we give interest in this sector by manufacturing or importing through profitable means as a huge quantity is used here.
Below figure shows the Bangladeshi chemicals market 
Table 3: Market demand and comparative study of different basic chemical industries:
An example of a Bangladeshi Manufacturing Company:
Global Heavy Chemicals Ltd., (GHCL) a concern of OPSONIN GROUP was incorporated on the 19th of September 2000. In the beginning of 21st Century, GHCL starts its journey as the first private sector Chlor-Alkali Industry in Bangladesh. Significantly related to all the hopes and expectations of the new century, GHCL has energized the vision to open new horizon for industrial development in the country. GHCL is producing import substitute Industrial Chemicals like Caustic Soda, Hydrochloric Acid, Bleaching Powder, Chlorine, and Sodium Hypochlorite & Chlorinated Paraffin Wax (CPW). GHCL is also exporting Chlorine to India on regular basis.
Global Heavy Chemicals Limited (GHCL) is located on the southern part of Dhaka district in Hasnabad union under Keraigonj Thana on the south side of the river Buriganga. GHCL has setup its production unit on 11.00 acres of land with multiple buildings where almost 80% is covered area for different product buildings. The annual production capacity  is given in table 4
Savings of Costs: Example study of a Bangladeshi manufacturing company:
Here we draw some calculation that how can we save money avoiding import and using our locally manufacture products: This chart is based on for the factories which are not bonded, but cost is added at different stage-transportation cost, C&F charge etc., with a long lead time is given in table 5
Present situation of chemical manufacturing and importing in Bangladesh:
Many companies are now a day manufacturing textiles auxiliaries like wetting agent, sequestering agent, detergent, polyamide softeners, silicon softeners, anti-back staining agent, different fixing agents etc. DYSIN-CHEM LTD. is the pioneer of textile chemical manufacturing, mostly for pre treatment, for dyeing, for finishing, and for garments printing. Some companies exporting chemicals in Bangladesh were listed in table 6.
Present Situation of Textile Chemical in Bangladesh Dyestuff Sector :
The Dyestuff sector is one of the important segments of the chemical industry in Bangladesh, but we have not enough forward and backward linkages for various sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. In case of Textile dyestuffs, we import almost 95 % and most of these are from China, India, Thailand, Taiwan, korea, Sreelanka, USA, Germany, Italy, Spain, Singapore, Switzerland, Turkey. The textile industry accounts for the largest consumption of dyestuffs. After the emergence of the country in 1971, it has now emerged as very strong industry and a major foreign exchange earner through textile sector.
Many Companies are manufacturing auxiliaries in Bangladesh, like Dysin-Chem Ltd, Texodyes Corporation, and BASF. They are mainly diluting or adding some properties. We are not completely capable of manufacturing. In Bangladesh, the chemical companies are now importing raw materials and diluting according to customer demand. Obviously that is positive sign for textile sector. In near future we are going to manufacture raw materials and final products.
Discussions of the Results :
It is assumed that Bangladesh is in a position exactly India before 50 years from now and china approximately 60 years from now. India has experienced much growth in textile manufacturing and china has become the largest economy in the world and its major portion of foreign earnings comes from textile chemicals. China, India, Japan, Sri Lanka, Thailand are now exporting their textile chemical to Bangladesh in huge quantity after meeting their household demand. Bangladesh has a golden opportunity to grab its own market and very large market outside of the country which are developing its textile business like Myanmar, Vietnam, Morisus, China, India, and Pakistan. We deserve the business as we have a lower rate of labor cost and talent. We can save our dollar by decreasing import and can reduce trade deficit with India and China accordingly. Here we have another opportunity to create many employment, and we hope in near future we will visit foreign country not as exporter rather importer.
Challenges of Textile Chemical Sector in Bangladesh: money, skilled person, technical
Presently the apparel export sector is multi-billion dollar manufacturing and export oriented industry in Bangladesh. The success of ready-made garment exports from the country over the last 30 years that has surpassed the most optimistic expectations. For continuation of this success backward linkage of textile apparel industry such as spinning, weaving, knitting and specially dyeing, printing and finishing should develop and proper orientation of these sectors. To properly operate of the dyeing, printing and finishing sector need proper chemical arrangement and distribution. But chemical sector is falling in some challenges.
Here are given some couple of challenges and solutions in chemical sectors:
First of all we need some entrepreneurs who are brave enough to run a chemical manufacturing plant.
Capital for machineries and infrastructure is precondition to set up chemical plant and here the Government will have to help the industrialists through sanctioning low interest rate loan.
Skilled manpower is prior condition of setting chemical manufacturing plant.
Power crisis is the hindrance for establishing this type of project and should be tackled by government.
More water treatment plant to be made by WASA at the different area of the country to increase liquid Cl2 consumption.
FeCl3 and PAC (Poly Aluminum Chloride) industry to be made to increase liquid Chlorine consumption.
Basic chemicals import should be stooped so that local production slow consumed chemicals like HCl, SBP, CPW plant will be running well.
We have to make central ETP at different industrial area and HCl consumption should be increase to balance Cl2 from Chlor-Alkali Plant.
Regeneration of resins of DM plant to be done by HCl instead of H2SO4.
Now Basic Chemicals plants are suspending due to natural gas permission from the government
Some chemical companies had demanded concessions during the recession period. These included reduction in Central Excise Duty from 14 per cent – 8 per cent, roll back of Import duty of 5 per cent on Naphtha, levy of crisis duty (10 per cent) on all chemicals, intermediates, dyes, pigments and pesticides, expeditious disposal of anti-dumping/Safeguard Measures, fiscal reliefs to SMEs and provision of low cost credit to them.
Prospects of Chemical Manufacturing in Bangladesh :
First of all, it is very optimistic for Bangladeshi entrepreneurs, that we have approximately 300 complied dye houses and many unlisted washing, dyeing and printing factories at all over the country especially in Dhaka, Gazipur, Narayangonj, Narshingdi, Manikganj, Mymensing, Sirajgonj, Pabna etc.,we have huge customers and consequently a vast market of chemical consumption every day. Bangladesh occupies labor force in very cheap rate comparatively with other countries and transportation cost also lower with available tools to shift raw or finished products from one place to another. Here, our workers and stuffs will have the opportunity to work in own country with taking it ahead and subsequently we will see the reduction of unemployment opportunity very soon. Overall our country will experience higher retention money by saving import and earn foreign currency through exporting after fulfilling their demand.
Bangladesh is going forward to emulate a standard of being Middle Income country by 2021 in an occasion of golden Jubilee of 50 years after its emergence. We have to focus on increasing retention money by reducing trade deficit with mainly china and India for survival. On the other hand GSP facility has been exempted by USA last year and Bangladesh has tried to regain this facility. EU sometimes threatens to withdraw the facility from Bangladesh in an excuse of labor security problem, trade union and for recently collapsed RANA Plaza. We will be kicked out of market and from competition if we fail to provide RMG with cheaper price with quality standard of world class buyers. Here the main concern is to reduce cost associated to exporting textiles and we can do this by manufacturing chemicals which will subsequently help us to retain market in a situation without GSP for Bangladesh in near future.
The Research Article credited to :
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