Export tiles to Italy: 20 factories running where there were 41, and no profit per tile now
Export tile-making began in Kalaroa, Satkhira in 2003 and many factories followed, but falling exports and shortages of labour and clay have left fewer than half running. A GI registration process is under way and owners are pinning hope on it.
In Murarikati Palpara, Kalaroa, Satkhira, clay-tile making was once a major industry. According to Prothom Alo, an Italian businessman's interest around 2002 gave the work momentum; commercial production began in early 2003 and the first export to Italy went out that year. Tiles later went to Germany, the UAE, Malaysia, South Africa and the United Kingdom. There were once 41 factories in Kalaroa, 14 in Tujalpur alone; now 20 are running, three in Tujalpur. The closures were due to falling exports, shortages of labour and clay, and rising production cost. Before 2022 a tile sold for Tk 10 earned Tk 2 to 4 profit; that profit is gone now. One factory owner says falling exports and higher shipping rates have caused the crisis. From another owner's factory 13 containers once went to France, and the buyer asked for 200 more, but it did not go ahead because of business problems. About 25 percent of raw tiles are wasted at various stages. A woman worker is paid Tk 6.75 per tile, Tk 675 for 100 a day. A GI registration application was filed on 16 July 2024, and owners hope the business will recover once it is registered.
Lessons
- 1.Dependence on one foreign buyer or market is dangerous; when exports fall, a whole cluster of factories can close.
- 2.When clay, labour and freight costs rise, profit per tile falls to zero; price with each cost line counted.
- 3.Work stops in the rains and up to 25 percent is wasted; build both into the margin.
We published this with the person's permission, without revealing who they are.
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