Rapid urbanisation, industrialisation and electrification in rural areas of Bangladesh has led to a boom in the country's electrical cable industry over the past few years.

Annual turnover in the sector stood at Tk 2,000 crore just a decade ago, when few local manufacturers were involved in making household and industrial cables.

However, annual turnover in the electrical cable industry has since reaced Tk 25,000 crore at present, registering 20 per cent growth year-on-year.

There are now more than 120 electrical cable manufacturers, of which 20 are big units, 35 are medium and the rest are small, that are capable of catering to the domestic demand.

Many of the big units are getting ready to export their cables after serving the local market as they manufacture products of international standard.

Some of these companies are already participating in international bidding as the quality of their cables are globally recognised.

Md Rafiqul Islam Rony, director of sales at BRB Cables Industries Ltd, said his company has grown a lot over the past few years thanks to growing demand in the sector.

BRB's annual turnover has crossed Tk 3,000 crore now with the company producing almost all kinds of cables, both for household and industrial purposes.

BRB produces high voltage, optical, submarine, extra high voltage and low voltage cables, Rony added.

He went on to say that their business was impacted by the severe fallouts of Covid-19 as the construction of residential and industrial structures slowed down in the pandemic years of 2021-22.

But business has since recovered with the improvement of the coronavirus situation with raw material imports from countries like Chile, Korea, Japan and Belgium having been restored, Rony added.

BRB, which controls nearly 50 per cent of the total market share, can produce electrical cables worth Tk 7,000 crore each year but much of this capacity remains unutilised.

The electrical cable businesses have a bright future in Bangladesh as domestic demand is rising everyday. However, some conditions in the implementation of government development projects are impeding the sector's growth.

If the government extends the required facilities and support, then the electrical cable industry could become a very big export sector as well, according to Rony.

For instance, if the nearly 37 percent duty being imposed on the the industry's raw material imports is lowered, there would be more investment and production for both the domestic and international markets, he said.

Imported electrical cables are being used in various mega projects of the government as per the conditions for their funding.

These projects include construction of the Matarbari Power Plant, a third terminal at the Hazrat Shahjalal International Airport, and numerous initiatives of the Bangladesh Power Development Board and Dhaka Electric Supply Company.

For example, Bangladesh will have to source the required electrical cables from Japanese companies for any project being financed by Japan as per conditions in the related agreement.

As such, foreign companies supply cables worth around Tk 2,500 crore every year even though local companies are capable of providing the same products.

Kamruzzaman Kamal, director of marketing at Pran-RFL Group, said rapid urbanisation, electrification and industrial growth in the country has created a good domestic market for electrical cables.

"We set up a factory with brand name Bizli at Habiganj in 2014 with the production capacity of 2,000 tonnes of electrical cables a month. We are producing all kinds of cables like fire retardant and also anti termite cables for underground use," he added.

Kamal, whose company has invested Tk 200 crore in the industry, then said the sector has a lot of potential considering its commendable growth so far.

He hopes the business will have a lot of export potential in the future as many companies are either expanding or pouring in fresh investments for setting up new plants to serve both the domestic and foreign markets.

Rabiul Alam, chairman of EnergyPac Power Generation, said a new factory under the company will start producting 200 tonnes of electrical cables each month from December this year.

Alam said his company is entering the market as the demand for electrical cables has been growing at a fast rate.

The government's aim for 100 percent electrification across the country has helped the domestic electrical cable market grow, he added.

However, there is uneven competition between local and international companies in the participation of international bidding for mega projects.

This is because local companies do not enjoy duty benefits against those contracts for supplying cables to the government while foreign companies do.

As a result, foreign companies can easily out bid local ones in the tender process.

So, the government should make an even competition for both domestic and international companies for a fair competition, Alam said.

Still though, the use of imported electrical cables has fallen significantly due to higher local production. As such, the percentage of imports being used is now only 15 percent for specialised purposes.

Ishtiaque Chowdhury, senior executive of brand marketing at RR Kabel, said some unscrupulous traders are damaging the sector's image as they sell non-branded low quality products in the name of good brands.

"We, in collaboration with law enforcing agencies, are trying to identify the traders who are involved in trading low-quality cables in this manner," he said, adding that both brands and customers are being cheated by such dishonest business practices.

Chowdhury also said that RR Kabel, which  produces 600 tonnes of cables per month and holds 10 per cent of the market share, is eligible to start exporting its products.

ABM Arshad Hossain, president of the Bangladesh Electrical Cables Manufacturers Association, said the industry has grown fast over the last five years because of the government's 100 per cent electrification initiative.

As a result, rural areas have eventually turned into a very big market for electrical cables apart from industrial units.

The industrial use of electrical cables has also been increasing at a fast pace not only for the rising number of industrial units, but also because of complexities in the nature of industries.

Previously, industries needed normal cables but now they need finer electrical cables due to a change in their nature, Hossain said.

In the household category, modern flats and apartments need more electrical cables compared to older buildings. Overall, consumption of electrical cables has increased in the country.

In addition, many local industries are expanding production while new investments are coming in big amounts to the country as the demand is increasing, he added.