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Foam industry firming up
JAGARAN CHAKMA
The market for polyurethane foam is growing in Bangladesh as the material is being increasingly used for making upholstered furniture as well as packaging and insulation, according to industry insiders.
For example, the automotive industry is contributing to the increased use as many car seats and door panels now incorporate foam fillings, they said.
As such, around 200 companies have entered the polyurethane foam industry over the past 30 years.
Besides, big companies like EuroAsia, Pran-RFL, Swan, Karmo, Bengal, Apex, Expo Group, Akhter, HomeTex, Hatil, and Classical Home have already established a firm grip on the market.
Pran-RFL Group entered the market in 2016 under the brand name “Comfy”.
The company produces several polyurethane foam products of varying density that have different uses.
These include soft and supper soft foam for mattresses and pillows, rigid foam for fridge insulation, flexible foam for footwear, and high-density foam for car accessories such as seats and panelling.
Kamruzzaman Kamal, director of marketing at Pran-RFL Group, said his company has grabbed about 15 percent of the market for foam products over the past seven years.
According to him, they have invested at least Tk 100 crore so far only for the manufacturing segment.
Kamal believes the business has potential for more branded companies to enter as demand has been increasing by about 10 percent annually for the past three decades.
Echoing the same, Shubhrajit Sarker, head of corporate at Euroasia, said the market for foam products is currently worth around Tk 360 crore annually.
Having entered the foam making business in 2015, Euroasia has grabbed a substantial share of the market since then by delivering quality products and after-sales service.
“By virtue of our quality and commitment, Euroasia has won the minds of customers as an authentic brand in Bangladesh,” Sarker added.
Referring to their market analysis, he said the overall demand for foam is worth Tk 30 crore per month.
Besides, the sector has so far created at least 1.5 lakh opportunities for direct and indirect employment.
But other than making furniture and footwear, foam is also used for packaging and insulation.
“So, the growth of e-commerce and subsequent rise in shipping of fragile products has further boosted the demand for foam packaging materials,” he said.
Furthermore, the construction industry in Bangladesh has witnessed a surge in foam usage for thermal insulation purposes, Hossain added.
Ali Hossain, general manager of Swan Foam, a leading foam manufacturer, said they have been in the business for more than 30 years and never compromised on quality.
According to him, there is no market data regarding the foam segment even though the material’s usage has been increasing in making furniture and other purposes.
Foam usage was once furniture centric but now, it is used in cars, fridges, footwear and more.
Also, the demand in rural areas has increased in line with the peoples’ growing purchasing power.
And while around 200 companies are currently involved with the business as it requires little investment, the quality of products made by most manufacturers is considerably limited, he added.
Selim H Rahman, chairman and managing director of Hatil, said they set up a foam production unit as a backward linkage industry so that they can ensure good quality materials in their furniture products.
However, this means that none of the foam produced at their unit is sold in the market.
According to him, the usage of foam is multidimensional, so the market is growing in line with the country’s economy.
Also, different sectors develop silently when a country’s economy develops like that of Bangladesh, which is not understood by the common people, Rahman added.
Quazi Anwarul Haque, proprietor of M/S RR Enterprise in the Baitul Mukarram area, said the foam making sector is unorganised as the market is still dominated by informal traders.