UNIVERSITY OF CREATIVE TECHNOLOGY

CHITTAGONG

Report on
Bengal Plastics Ltd.

25 November, 2020
 UNIVERSITY OF CREATIVE TECHNOLOGY CHITTAGONG

Student Name: Singdho Saha Moon

Student ID: 170621004

Course Name: Bangladesh Studies

Course ID: GED-1101

Semester: Autumn

Submitted To: Sakera Begum

Submission Date: November 25, 2020

Assignment Details

Industry Type: Small Scale

Industry: Plastic Industry

Company: Bengal Plastic Ltd.

 Executive Summary

This report is submitted in partial fulfillment for the course Bangladesh Studies (Course ID:

GED-1101) under School of Arts and Social Sciences of University of Creative Technology

Chittagong. This report was done to have a deeper understanding of the plastic industry of

Bangladesh and the marketing mix of Bengal Plastics Ltd.

The report goes through a brief introduction to the plastic industry in chapter 1. Chapter 2

introduces the concerned company which is Bengal Plastics Ltd. This chapter goes through the

history, mission-vision and the achievements of Bengal Plastics Ltd. Chapter 3 discusses the 4

Ps of marketing mix (product, price, place and promotion) of Bengal Plastics Ltd. Chapter 4

discusses the challenges and problems faced by the plastic industry and Chapter 5 follows it by

discussing the potentiality of the industry.

This report also acknowledges its limitations. Due to ongoing pandemic, it wasn’t possible to

visit the factory and get information from a primary source. The information used in this report

are from secondary sources and writer’s understanding of the subject matter. Due to lack of

information, listing the price of all the products wasn’t possible either.

i
 Letter of Transmittal

November 25, 2020.

Sakera Begum,
Lecturer,
Marketing,
University of Creative Technology, Chittagong.

Subject: Submission of report on Industry of Bangladesh

Dear Madam,

I would like to report the submission, as you have requested and gave us the permission to

work on, of the report on Industry of Bangladesh. This report is an important part of this course,

and I have tried our best to work on it carefully and sincerely so that I can create an informative

report.

From this report we can get a remarkable experience that may prove to be useful in the future.

I thank you for all the support that made this report a success and managed in accordance with

our common goal.

Sincerely yours,
Singdho Saha Moon.

ii
 Acknowledgement

The final outcome of this project required a lot of guidance and assistance from many people.

Whatever I have done is only because of such guidance and assistance. I thank the School of

Arts and Social Sciences of University of Creative Technology Chittagong for giving me the

opportunity to do this project and providing me with all the support and guidance I needed to

complete the project.

I am sincerely grateful to my respective faculty Ms. Sakera Begum, Lecturer of Marketing in

the University of Creative Technology Chittagong. I express deep and sincere gratitude to her

whose guidance, encouragement, suggestion and constructive criticism have contributed

immensely to this project.

To all family members, relatives, friends and everyone who shared their support either morally

or physically, thank you.

Sincerely,
Singdho Saha Moon.

iii
 Table of Contents

Executive Summary .................................................................................................................... i

Letter of Transmittal ..................................................................................................................ii

Acknowledgement ................................................................................................................... iii

Table of Contents ...................................................................................................................... iv

Chapter 1: Introduction .............................................................................................................. 1

1.1 Overview of Plastic Industry in Bangladesh .................................................................... 2

1.2 Milestones of Plastic Industry in Bangladesh .................................................................. 3

Chapter 2: Company Overview ................................................................................................. 4

2.1 Company Details .............................................................................................................. 4

2.2 Mission and Vision .......................................................................................................... 5

2.3 Achievements ................................................................................................................... 5

Chapter 3: Marketing Mix ......................................................................................................... 6

3.1 Framework of Marketing Mix ......................................................................................... 6

3.2 Marketing Mix of Bengal Plastics Ltd. ............................................................................ 7

3.2.1 Product ...................................................................................................................... 7

3.2.2 Price ........................................................................................................................ 21

3.2.3 Place ........................................................................................................................ 23

3.2.4 Promotion................................................................................................................ 25

Chapter 4: Challenges and Problems of the Industry............................................................... 26

Chapter 5: Potentiality of the Industry ..................................................................................... 27

Chapter 6: Conclusion.............................................................................................................. 28

Bibliography ............................................................................................................................ 29

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 Table of Figures

Figure 1: Overview ................................................................................................................... 2

Figure 2: Milestones ................................................................................................................. 3
Figure 3: Mission and Vision .................................................................................................... 5
Figure 4: Achievements ............................................................................................................ 5
Figure 5: Distribution Model of Bengal Plastics ..................................................................... 23

Picture 1: Different Types of Arm Chair ................................................................................... 7

Picture 2: Different Types of Armless Chair ............................................................................. 8
Picture 3: Office Chair ............................................................................................................... 8
Picture 4: Different Types of Waiting Chair.............................................................................. 9
Picture 5: Different Types of Stool ............................................................................................ 9
Picture 6: Different Types of Table ......................................................................................... 10
Picture 7: Different Type of Wardrobe .................................................................................... 11
Picture 8: Different Types of Kids Furniture ........................................................................... 12
Picture 9: Different Types of Bathware ................................................................................... 13
Picture 10: Different Types of Food Box ................................................................................ 14
Picture 11: Different Types of Home Organizer...................................................................... 15
Picture 12: Different Types of Kitchenware ............................................................................ 16
Picture 13: Different Types of Tableware ............................................................................... 17
Picture 14: Different Types of Kids Ware ............................................................................... 18
Picture 15: Different Types of Industrial Organizer ................................................................ 19
Picture 16: Different Types of Products for Institution ........................................................... 20
Picture 17: Personal Protective Equipment.............................................................................. 20
Picture 18: Garment Hangers ................................................................................................... 20

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 Chapter 1

Introduction

Plastic is used a general term for a wide range of synthetic or semi-synthetic materials that are

used for their durability, strength, light-weight, ability to isolate heat and electricity, cheapness

and resistance to corrosion. From the use of natural materials (e.g., shellac), the development

of plastic has evolved to the use of materials that are chemically modified (e.g., rubber,

nitrocellulose, collagen, galalite) and finally to complete synthetic molecules (e.g., bakelite,

epoxy, Polyvinyl chloride). [1]

Plastic is an unavoidable part of our daily lives. Every household in Bangladesh has some sort

of appliances that are made of plastic. Now, to general eyes, it might seem like that the plastic

industry has been long present given how common they are in our lives. Interestingly, the

existence of plastic industry is actually relatively new compared to our textile or leather

industries. In the 1960’s, plastic industry was established as a very small industry in

Bangladesh (then known as East Pakistan). The industry started experiencing its massive

growth in the early 1990’s and now has become one of the most dominant industries in our

economy. The key point behind this huge growth of plastic industry of Bangladesh was the

introduction of free market in 1990’s. This huge growth of this industry resulted in a multiplier

effect on multiple important sectors of our economy which ultimately led the government to

give priority to this industry. The growth and innovation of plastic industry has led to a ripple

effect of innovation in many products and technologies in other sectors of the economy like

packaging, textile, healthcare, construction, electronics, energy generation, automotive. But,

still the consumption of plastic per capital in our country (5 kilograms) is lower than global

average (80 kilograms).

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1.1 Overview of Plastic Industry in Bangladesh

Companies
• 5000 Industries
• 3,500 Small
• 1480 Medium
• 20 Large

Jobs
• 1.2 Million direct and indrect Jobs

Turnover
• Nearly 20 Billion BDT only in local market

Export
• 300 Manufacturers export
• Worth 53.64 Million USD

Raw Materials
• 750,000 tonnes composed of imported plymers and local recycled
plastic waste

Growth
• Three fold the present market size up to 2.5 mill, tonnes, with a
turnover of USD 4 billion by 2021

Figure 1: Overview [1]

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1.2 Milestones of Plastic Industry in Bangladesh

• Small products (e.g., toys, bangles and photo frame) were made using hand
1960's made mold

• Automatic machines were installed to manufacture household utensils such

1970's as plastic jugs and plate

• Film blowing machines to manufacture plastic bags

1980's

• Plastic accessories especially hangers for exportable garments

1990's

• Molded plastic chairs and tables. Water tank made by rotation molding.
Locally developed machines (shredder, Extruder, Pelletizer) for recycling
2000's plastic waste

• CNC machines are imported by Bangladesh to manufacture the mold locally

2010

Figure 2: Milestones [1]

(Please Turn Over)

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 Chapter 2

Company Overview

2.1 Company Details

Bengal Plastics is one of the largest garment hanger manufacturers in the region. They are

capable of producing more than 2 million pieces of plastic garment hangers every day. They

are an ISO 9001:2008 for quality management systems (QMS) and ISO 14001:2004 for

environmental management systems (EMS) certified company. Bengal Plastics is the licensee

manufacturer of Mainetti- the largest hanger manufacturing company in the world with more

than 50 distribution centers in over 28 countries.

The company started its journey back in 1969 with single hand operated plastic injection

molding machine in a rented premise in the old Dhaka by Morshed Alam. After independence,

in 1978, the company started manufacturing household utensils such as plastic Jug, plate and

other plastic domestic wares. The company became official and registered as Bengal Plastic

Industries Ltd. in 1981. In 1991, Plastic Apparel Hangers in Bangladesh was established by the

Bengal Group of Industries (parent company of Bengal Plastics) for 100% export-oriented

garment industries for exporting to the U.S.A and the EU. In the year of 1999, the company

became the largest plastic processing plant in Bangladesh with 72 Injection Molding Machines

with a capacity from 250 tons to 1600 tons consuming more than 250 tons of raw materials

each day. In the same year, it initiated an expansion plan of US $5 million for installing the

single largest production facility with 36 units of Injection Molding Machines, 4 film extruder

machines, a set of printing and converting machines for manufacturing garment hangers, poly

bags, packaging tapes, and strapping bands. The company received its ISO 9001:2000

certification for quality management system and ISO 14001 certification for environmental

system in 2002. [2]

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2.2 Mission and Vision

Mission Vision

To be the best company in our

To strive continuously to
industry and it is our policy to
exceed customers'
deliver total quality goods and
expectations for achieving
services to all of our
unlimited excellence by
customers. We accomplish
providing greater value to our
this by adopting a set of
customers than our
quality policy throughout the
competitors.
organization.

Figure 3: Mission and Vision [2]

2.3 Achievements

2008 • Received DHL-Daily Star Award

• Received DHL-Daily Star Award in the year 2008 as the best

2008
enterprise in the country.

2009 • Received ‘National Export Trophy’ (Gold) for 2007-2008.

Figure 4: Achievements [2]

5|Page
 Chapter 3

Marketing Mix

3.1 Framework of Marketing Mix

E. Jerome McCarthy created the Marketing Mix centered around 4 Ps in 1960. Since then, it

has been one of the most common and widely used tool by organizations and marketers to

determine the offerings of a product or an organization. The 4 Ps of the marketing mix are as

follows:

I. Product: Product refers to the physical item that is being sold. The product must fulfill

the needs that make the consumer buy the product with an optimal level of performance.

Additional attributes like packaging, features, ease-of-use, after sales support are also

important. While consumer usually makes a purchase because of the product, these

aforementioned attributes can influence a consumer in many ways.

II. Price: Price refers to the price that a consumer pays for the product. The costs of raw

materials, production, segment targeted, ability of the market to pay, supply - demand

and a host of other direct and indirect factors

III. Place: Place usually refers to the point of sale and how the products should reach the

product. In every industry, putting the products in right front of the consumer and

making the buying process is the main aim of a good distribution or 'place' strategy.

IV. Promotion: Promotion is set of activities undertaken by an organization to make sure

that the market is aware of the products. Everything from advertising to holding events

can be a part of a promotion strategy.

6|Page
3.2 Marketing Mix of Bengal Plastics Ltd.

3.2.1 Product

Everything from housewares to garment hangers, Bengal Plastics provide a wide category of

products. The products are designed and developed based on the customer need and their

priorities regarding price and quality. To do so, Bengal Plastics always do adequate market

research and collect feedback from both consumers and suppliers. The list of products from

Bengal Plastic are listed below:

I. Household Products:

a. Furniture:

I. Arm Chair (Nababi, Imperial, Comfort, Commode, Devine, Royal, Sultani)

Picture 1: Different Types of Arm Chair

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II. Armless Chair (Aristocrate, Classic, Deco, Design)

Picture 2: Different Types of Armless Chair

III. Office Chair (Classroom, Deluxe, Excel, Royal, Popular)

Picture 3: Office Chair

8|Page
IV. Waiting Chair (Deluxe/Sim Couple, Deluxe/Sim/Reluxe/Smart Group)

Picture 4: Different Types of Waiting Chair

V. Stool (Magic, baby, High/Medium Net, Kitchen)

Picture 5: Different Types of Stool

9|Page
VI. Table (Center Table Print/Net Print, Classic, Deluxe, Joint, Multipurpose, Oval,

Rectangular, Round, Slide, Rectangular, Tea, Square)

Picture 6: Different Types of Table

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VII. Wardrobe (Flossy Wardrobe Four/Five Drawer, Elegant Artistry/Flora/Beauty

Four/Five Drawer)

Picture 7: Different Type of Wardrobe

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VIII. Kids Furniture (Baby Chair/Reading Table)

Picture 8: Different Types of Kids Furniture

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b. Houseware

I. Bathware (High Commode, Star Stool, Baby Bath Tub, Bucket, Mug, Tab, Potty,

Soap Case, Water Pot)

Picture 9: Different Types of Bathware

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II. Food Box (Air Tight/Foodie Food Box, Everyday/ Flapper Lunch Box, Storage Jar)

Picture 10: Different Types of Food Box

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III. Home Organizer (Hanger, Organizer Box & Basket, Rack, Waste bin and Dustpan)

Picture 11: Different Types of Home Organizer

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IV. Kitchenware (Chopping Board, Bowl, Kitchen Rack & Basket, Spice Box and Jar,

Washing Bowl)

Picture 12: Different Types of Kitchenware

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V. Tableware (Food cover, Jug, Bowl, Mug, Plate, Tray, Bottle)

Picture 13: Different Types of Tableware

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c. Kids Ware (Bathware, Kids Glass, Kids Water Bottle, Stationaries, Tiffin Box)

Picture 14: Different Types of Kids Ware

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II. Industrial Organizer

Picture 15: Different Types of Industrial Organizer

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III. Institute (Plastic Chair, Bench with Shelf, Table)

Picture 16: Different Types of Products for Institution

IV. Personal Protective Equipment

Picture 17: Personal Protective Equipment

V. Garment Hangers

Picture 18: Garment Hangers

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3.2.2 Price

Bengal Plastic focuses on three key factors while pricing a product. The first one is the cost of

the product which is the main factor in any case. The other factors are the target consumer and

the pricing of the competitors. These two factors go hand in hand as consumers usually like

cheaper products as the competitors offer almost the same quality in terms of products. Bengal

Plastic deals with it by making their manufacturing process efficient and having a good supply

chain. The base price of every single product is the same across every region to ensure no

geographical cannibalization of the product happens. The pricing for the products of Bengal

Plastic are as follows*:

Product Price (BDT)

Arm (High Back) Chair 410

Arm (Medium Back) Chair 380

Armless Chair 330

Waiting Chair (Smart Double Group) 8700

Waiting Chair (Smart Group) 5500

Waiting Chair (Deluxe) 7500

Waiting Chair (Slim group) 6000

Stool 100

Stool (Short Leg) 80

Table (Center Table Net print) 1125

Table (Multipurpose) 2160

Table (Rectangular Decorator) 3645

Table (Oval) 2700-3600

Wardrobe (Flossy/Elegant Four Drawer) 7380

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*Products under the same category (with difference in colors or other attributes)
with the same pricing is listed once. Due to the lack of pricing on the official
website, prices of all of the products of the company couldn’t be listed here.
Wardrobe (Flossy/Elegant Five Drawer) 8550

Bucket (16L) 193

Bucket (18L) 220

Bucket (18L) 292

Mug (1L) 22

Mug (1.5L) 31

Soap Case 36

Food Box (Air Tight) 72-283

Food Box (Lunch Box) 58

Wall Hanger 108

Organizer Box 378-868

Fancy Storage Basket 990

Waste Bin 108

Face Shield 70

Eye Protective Goggles 150

(Please Turn Over)

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3.2.3 Place

Bengal Plastics uses a multichannel distribution system. A multichannel distribution means

that the company uses more than one channel to distribute the products. Bengal group uses

retailer and authorized dealer to sell their products. In addition to that, they use their direct

channel to reach to customers too. This multichannel model helps Bengal to reach every

geographical area in the country. The following model summarizes the distribution model of

Bengal Group:

Manufacturer
(Bengal)

Authorized
Retailer Direct Channel
Dealer

Brick and Online Shop

Mortar Shop

Consumer

Figure 5: Distribution Model of Bengal Plastics

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Bengal Plastics Ltd. follows the following process in terms of distribution:

I. The retailers buy products at a bulk amount from Bengal or from an authorized dealer.

The retail price is fixed by discussing with the retailers. Bengal uses retailer to reach

geographical places where they don’t have direct outlet or an authorized dealer.

II. The authorized dealers get the products directly from Bengal. Every authorized dealer

has a fixed depot where they get their products from. The priority of shipment of

products to dealers is based on the number of orders. The dealers have to go through a

number of formalities before becoming an ‘authorized’ dealer. The most important

formalities are:

• Making a security deposit to Bengal, two times of the deposit will be highest amount

of credit a dealer can get from Bengal

• Up – to – date trade license of the dealer

• Bank Solvency Certificate

III. Bengal Plastic Ltd. has their own outlets in major cities and a website from where

consumers can directly buy the products from.

(Please Turn Over)

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3.2.4 Promotion

Bengal Plastic Ltd. uses different types of promotion to both build its image corporate image

and product image. Building these two types of image requires completely different strategies

so Bengal Plastic takes the different factors in consideration and run the campaigns

accordingly.

Corporate Image:

• Use of safe raw materials and Providing the workers with adequate safety

• Effluent (waste) treatment plan

• Continuous improvement on manufacturing processes

• Complying with rules and regulations that are in place to protect the environment

Product Image: Product image is the place where the company follows the standard

promotional strategies. The goal of these strategies is to increase the image of product in

consumer eyes and pushing more consumer towards a purchase. Bengal uses personal selling,

direct marketing and different types of discounts.

• Personal Selling: This is mostly used for the retailers. The company provides training

and techniques to selected retailers so that they can convince consumers better. There

is another layer of personal selling where company sends executives to retailers and

dealers to convince them to keep more products or go into a deal with Bengal.

• Direct Marketing: Bengal Plastic uses TV, Newspaper, Social Media as mediums in

direct marketing. This is the most important form in terms of gaining new consumer

and stay in the minds of existing consumers.

• Discounts: This strategy is used to both attain new and retain old consumers. The

company provides discounts based on the competitive situation and other regular

events.

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 Chapter 4

Challenges and Problems of the Industry

The plastic industry of Bangladesh, while experiencing a huge growth over the years, is still

plagued with some major issues. Among 5000 companies, 3500 of them are small-medium

sector (SMEs). Making SMEs competitive in the global market is more challenging than

making the large-scale ones. The large-scale plastic manufacturing companies are already in a

position to be globally competitive because of their technology, manufacturing process, quality

and cost reduction. There are two major issues in the plastic industry at this time and they are:

• Lack of Institutional Arrangements:

o There is no proper institution that trains and develops skilled manpower for the

plastic industry

o There is no local facilitates where tests can be conducted in order to maintain

and control quality

o There are no consultancy services available to help the companies when they

run into technical problems or problems regarding

o Lack of proper waste management

• Environmental Issues: Plastic production, in general views, is environmentally safe

because most of the time, waste and machine spares are used in recycling. The main

and biggest issues is the management of post-consumer plastic waste. In the late

1990’s, the littering of polyethylene bags led to such a catastrophic situation that, the

parliament banned the use of thin plastic bags in 2002. That led to a nation-wide

negative image of plastic which resulted in issues that hindered the export of raw

materials and plastic goods. Non-compliance of environmental standards by the

companies made the situation even worse. [3]

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 Chapter 5

Potentiality of the Industry

In the FY 2017-2018, plastic industry ranked 12th in terms of highest earning export sector with
[4]
a value of around 1 Billion USD. That alone paints a perfect picture of how far we have

come as a plastic manufacturing nation. This also makes us hopeful about the huge potentials

that the industry can achieve. The potentiality of the industry is as follows:

• Taking Entire Control of the Local Market: Our plastic industry has grown a lot, but

there are still some sectors (e.g., plastic toys) where the local companies can increase

market share. By doing these, every company (specially SMEs) will be able to learn

and become better at manufacturing because of the competition.

• Direct Export: By reducing cost and lead time and manufacturing at a larger scale, the

SMEs of plastic industry can easily become competitive enough to enter the export

market. With the already established reputation of our plastic products, the SMEs can

easily find their way into international market and make the export scenario way

healthier than it is now.

• Product and Market Diversification: By adding more products, companies can both

achieve a greater market share domestically and increase the export too. For example,

the plastic toy market in increasing day by day and had around USD 40 million of

export value in 2016. [5] If more established companies and SMEs focus on diversifying

their portfolio and maintains a harmonious relation with the opportunity and market

demand, this industry can become bigger and better.

• Recycling Industry: By increasing the existing recycling industry, we can cut down on

waste and become more efficient. This will give the companies a huge competitive

advantage.

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 Chapter 6

Conclusion

An opportunity to grab the entire local market with an excellent opportunity of export potential

makes the plastic industry immensely valuable. Moreover, the added benefit of exempted

import duty on raw material gives the plastic industry a huge possibility to grow even bigger.

By closing the holes in local market, the companies can learn to be better by achieving

competitive advantages which will help them prepare for the international market. If the

industry can eliminate the existing issues, the growth will be huge. According to USAID, the

industry, at its current state and growth rate, is expected to reach 7.3 Billion USD by the end

of 2023.[4] The industry can do much better just by improving and working the issues, which

we all hope for.

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 Bibliography

[1] Hasan, M. M. (2015, May). Plastic Manufacturing: Potential for High Growth. IDLC

Monthly Business Review , 11(5), 2. Retrieved November 15, 2020

[2] Bengal Group of Industries. (2020). History. Retrieved November 11, 2020, from Bengal

Group of Industries: https://www.bengalgroup.com/history.php

[3] Islam, M. S. (2011, December). Prospects And Challenges Of Plastic Industries In

Bangladesh. Journal of Chemical Engineering, ChE. 26(1), 19-20. Retrieved November

21, 2020, from https://www.banglajol.info/index.php/JCE/article/view/10176

[4] USAID/Bangladesh. (2019). Comprehensive Private Sector Assessment. USAID.

Retrieved November 22, 2020, from https://pdf.usaid.gov/pdf_docs/PA00TWMH.pdf

[5] Sumi, H. F., & Reaz, M. M. (2020). Building Competitive Sectors for Export

Diversification. International Finance Corporation. Retrieved November 23, 2020, from

https://www.ifc.org/wps/wcm/connect/01f1ec30-257e-47bc-ae62-

6a4d7b70e986/IFC_BCSED+REPORT+%28NEW%29_compressed.pdf?MOD=AJPE

RES&CVID=m-a6b6L

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