Some light engineering businesses have become very successful ventures despite many obstacles such as lack of policy support from the government and financial institutions and the shortage of skilled manpower.
'I have started the business of manufacturing spare parts with an initial capital of Tk 50,000 after completing my secondary education in 1986,' the proprietor of the Progoti Engineering, Saiful Islam, told New Age.
He had continued the factory with three small machines and four workers till 2003.
In the meantime, he completed his higher secondary education from Kazi Nazrul College, earned his BA degree from Jagannath University and received training from the Bangladesh Institute of Technical Assistance Centre, Bangladesh University of Engineering and Technology and Chennai in India, Saiful said at his fatory on Tipu Sultan Road in Dhaka.
In 2005, Saiful brought three machines from abroad.
Now 70 skilled and semi-skilled workers work in the factory that has a yearly turnover of about Tk 8 crore, he said.
He said that he was planning to set up a new factory at Meghna Ghat in Narayanganj.
Saiful said that most of the light engineering intiatives did not flourish for lack of access to finance, locally produced technology and lack of knowledge.
Bank loans are not enough for such entrepreneurs to do business, he said. 'They need personal capital too.'
The entrepreneurs should properly maintain ledger books as well as balance sheets so that the banks can consider providing them with a loan, he said.
Raju Ahmed started his business, Raju Engineering, with two workers and one lathe machine after his father's death. It was 1982 and he was a student of Class IX.
After five years, he reinvested Tk 1 lakh of the profit in the business.
In the meantime, he received training in Taiwan, Korea and China.
The factory now manufactures spare parts of textile machinery. Spinning mills now buy parts from the Raju Engineering instead of importing them from China or Taiwan.
Now 30 persons are employed in the factory and its yearly turnover is about Tk 3 crore.
A major problem for the sector and the workers is lack of proper training in terms of manufacturing and supply chain management, Raju told New Age.
Workers at the Raju Engineering receive wages ranging from Tk 2,500 to Tk 50,000 a month depending the level of their skills and experience.
Some factories also employ foreign technicians, mostly Indians, who operate and maintain hi-tech machines and draw at least Tk 1,00,000 in salary a month.
Asked about the key to his success, Raju, said that the had shared the workload as well as meals, sorrow and happiness with the workers.
M Bachu Mia, managing director of the Dider Engineering, said that lack of access to capital for setting up factories, absence of appropriate local training for entrepreneurs and workers and collateral-free loans hindered the growth of the sector.
The entrepreneurs should improve their skills, understand new technology and take care of their accounts properly, he said.
Source : New Age
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