Shiny Days for Fibreglass
Top official of Alliance Fibre Glass shares his plans with Amreen Ahmed Bari
Mr. Shahed Ahmed
From an invitation to an event, to by-the-by talks on social business, two minds came together to conceive the idea of a joint venture to produce fibreglass products in Bangladesh -- a dissemination of the concept of social business.
"There is so much demand in Bangladesh that setting up 10 industries in 10 years is no big deal. You make it, and people want to buy it," says Shahed Ahmed, managing director of Alliance Fibre Glass and Artificial Marble and Granite Company.
In Bahrain early this year, Ahmed met Muhammad Yunus, chairman of Grameen Telecom Trust, who was invited to inaugurate a Family Bank branch. The bank was built following the model of Grameen Bank in Bangladesh, and the low-income Bahrainis, like fishermen, farmers and women, who make cottage industry products, would receive loans at subsidised rates.
"Yunus gave a speech where he said that the world is heading towards bad days instead of better days because of climate change, credit crunch and various other reasons. And one of the solutions he proposed was to do social business, where people like us, who were more fortunate than others, can invest in an industry instead of giving charity a single time," says Ahmed.
He quoted Yunus as saying: "And this will sustain by itself and continue to make money and continue to help the needy for as long as the venture is there."
Yunus encouraged all to set up industries that would help minimise poverty, he said in an interview with The Daily Star in Dhaka on Wednesday.
"After dinner, we sat for a cup of tea, when I was introduced to Yunus as an expert in fibreglass. Yunus immediately showed interest and said he imported fibreglass gas tanks from China to store biogas."
"I suggested that I can make the fibreglass tanks in Bangladesh and I can train the Bangladeshi people to make these in the country. It would be an import substitute," says Ahmed. He has 35 years of experience in fibreglass business.
Yunus invited Ahmed to Bangladesh and after a couple of meetings later, Grameen Telecom Trust and IES Alliance of Bahrain signed a memorandum of understanding on June 1 to set up a joint-venture fibreglass company in Bangladesh.
"Usually in Bangladesh, there is no follow-up or enthusiasm about starting a new venture. But this time, things fell into place quite fast," Ahmed says.
"Then I read his book, and understand the idea that he is trying to sell. I figured that it was workable and even more convinced."
He says normally rich people just donate to charity. "I could give $10,000 this year, but the charity will come back the next year for more. But with this type of social business, you make a factory that makes profit and you don't take the profit yourself but you reinvest in another factory."
In social business, investors get back their investment amount only, but he says that in his case, he does not need the money back now as he has other running business in Bahrain. He will use the returns to expand operations.
"Before, I donated cash. Now, I will teach Bangladesh a new skill. That is of fibreglass."
The proposed company, Grameen Fibreglass, which will be set up at the Grameen Social Business Industrial Park in Kashimpur, Gazipur, is expected to begin operations by October this year.
The company will initially produce fibreglass biogas tanks, which are much better as there is no wastage of gas. Usually, in tanks made of concrete and cement, there is a 20 percent loss of gas because of the porous nature of concrete and cement.
"Grameen Shakti itself will be our customer and we also plan to sell the tanks in the local market and export to the US and countries in the Middle East," the business investor living in Bahrain says.
"I am eventually also going to make artificial marble and granite that is the need of the day, especially in the garments industry, restaurants, banks and for use as domestic kitchen tops."
Artificial marble made of resin will replace the stainless steel basins in kitchens, he says. "I will provide the items at reasonable prices in Bangladesh."
In garment factories, workers need to work on smooth surfaces while cutting the cloth. They usually work on steel or wooden tables but the marble top will change that, Ahmed says.
"If the surface is not smooth, the cloth may get a scratch or tear that leads to wastage. But with a table top made of marble, no damage will be done. And the best part about this top is that the more you use it, the smoother is becomes. It becomes like silk to touch."
On initial investment, "I don't want to disclose the amount of investment at this moment, as, frankly speaking, the taxation structure in Bangladesh is very vague. Until I get to know all those, I want to say that I will invest as much as required."
In future, he also plans to make air spoilers -- a piece of fibreglass with an aero-dynamic shape that is fitted in front of trucks and pushes air back and the truck takes 10-15 percent less fuel to go forward.
The company will make two types of corrugated sheets as well. One will be translucent to make the roofs of factories and greenhouses. The second type will be thicker and fire resistant, rustproof, coloured, will carry a warranty of 50 years, and can be used to make warehouses, hangers and industrial units.
"We are also going to make one of the biggest water storage tanks in the world -- 25 meters in diameters and 10 meters high. The acid resistant tank can be used to store fuel, chemicals, sewage, and also have a mechanism to store rainwater during the monsoons."
In future, the IES Alliance boss says, the company will expand to produce the internal and external parts of trains by hand lay-up. The process does not require a huge investment and women can do this work sitting in their homes. They will come and collect the required raw materials and mould and once they make it, they will bring it back to the centre, Ahmed adds.
Grameen Fibreglass will initially hire 40 people. Ahmed will bring fibreglass experts from Bahrain, who are also Bangladeshi expatriates, to train the workers here.
One of them with 20 years of experience in Bahrain's fibreglass industry has already joined as the plant manager.
The manager has helped assemble a fibreglass tank imported from China for Grameen Shakti. The tank is now being used to store biogas, which will distribute gas via pipes to households to cook food, he says.
The joint venture will produce fibreglass tanks to promote biogas use, pipes to improve sanitation, building materials to help the overall infrastructure of Bangladesh by transferring the latest technology and creating employment opportunity.
"The prospect clicked for both of us. Yunus' involvement has given me immense national and international exposure and support. And the best part is that we will be using this to help the poor and the needy and better the lives of the people in Bangladesh."
amreenbari@thedailystar.net
http://www.thedailystar.net/newDesign/news-details.php?nid=145253
