Marketing of caustic soda in Garment/textile industries

Abstract

This document covers overview of caustic soda market in Bangladesh, Capacity in Bangladesh, shares in global and regional markets, caustic soda manufacturers, caustic soda demand in Bangladesh, demand structure, consumption, Bangladesh demand shares in regional market and in global market, caustic soda trade in Bangladesh, annual prices, future trends in caustic soda market, general market forecast, caustic soda output forecast, caustic soda consumption forecast, product definition, pricing analysis, customer analysis etc. The objective of this executive summary is to summarize the main findings of the document. However, since it is impossible to reflect all its complexities in a short summary, only the main text in its entirety should be used. The garment/garment/textile industry is one of the longest and most complicated industrial chains in manufacturing industry. It is a fragmented and heterogeneous sector dominated by SMEs, with a demand mainly driven by three main end-uses: clothing, home furnishing and industrial use. The industry has played an important role in Bangladesh’s economic for a long time. Country garment/garment/textile industry in Bangladesh accountants for 45% of all industrial employment and contributes 5% to the total national income. This is a chemicals based industry. There are different types of chemicals needed in the process of different types of garment/textile processing steps. So chemicals play a vital role in garment/textile industry specially wet processing factory. Like garment/textile, pharmaceutical sector has a great future. The pharmaceutical sector is widely regarded as a “hi-tech” industry, is a most developed among the manufacturing in the Bangladesh. Roughly 250 companies are operating in the market. So there are various types of chemicals used in this sector. Also there are so many chemicals are used in different industrial areas at present stage. 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 garment/textiles, leather, paper, plastics, printing inks and foodstuffs. The garment/textile industry accounts for the largest consumption of dyestuffs at nearly 70%. Caustic soda market in Bangladesh witnessed strong growth over the past few years, owing to rising demand for chemical in several end user industries such as, paper, garment/textile, detergent, aluminium, etc., which is driving demand for caustic soda in Bangladesh. Moreover, expanding garment/textile, I paper and metallurgical applications are further expected to propel Bangladesh. The market dynamics section of the report elaborates the factors that are driving the market as well as the challenges inhibiting growth. The research study also includes insights of the key market trends, a detailed analysis of the changing competitive landscape, and revenue forecasts for each segment and sub-segment. In addition, report also provides customers analysis including current suppliers, procurement prices & quantity being purchased annually. According to “Bangladesh Caustic Soda Market Study”, report studies the market size and share of various segments and sub-segments of caustic soda market in Bangladesh. In the study, the market has been categorized into six broader applications that include Garment/textiles, Pulp & Paper, Alumina, Organics, Inorganics, Soaps & Detergents, wherein Garment/textiles is the dominating as well as fastest growing application of Caustic Soda. Two distinct scenarios for the future emerge, based on how effectively the industry leverages its strengths and manages challenges. In the base case scenario, with current initiatives of industry & government, the Bangladesh chemical industry could grow at 11% by 2017. However, the industry could aspire to grow much more and its growth potential is limited only by its aspirations. In such an optimistic scenario, high end–use demand based on increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector of the chemical industry could lead to an overall growth rate of over 15% p.a. This has a potential for further upside in the future considering Bangladesh’s increasing competitiveness in manufacturing. The draft manufacturing policy recently approved by the Cabinet targets increasing the share of manufacturing in GDP to at least 25% by 2025 (from current 16%). Caustic soda demand in Bangladesh is currently estimated at 80,000 tonnes/year, so we can only meet 25% of that demand currently. Unlike most other countries, where caustic soda is mainly used in the pulp and paper, alumina and detergents sectors, in Bangladesh the garment/textiles segment is the biggest consumer.Bangladesh has a fast-growing garment/textiles sector, so demand for caustic soda is bound to increase rapidly.