The Light Engineering Sector (LES) has been recognized as an important sector of Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. With a view to promote the light engineering sector of the country, Ministry of Commerce has formed a Council on March 04, 2004 entitled Light Engineering Product Business Promotion Council (LEPBPC) with the partnership of public and private sector. The honorable secretary, Ministry of Commerce is the ex-officio Chairman of the Council, while Vice Chairman of Export Promotion Bureau (EPB) is the 1st Vice Chairman and President, Bangladesh Engineering Industry Owner’s Association (BEIOA) is the 2nd Vice Chairman of the 25-members Council. The other government offices and member/associations related to LES is the member of the council.

The Light Engineering Sector (LES) is recognized as the mother industry of all other industries as they supply the basic elements of an industry, like capital machinery, spare parts and accessories with high potentiality to export in international market. Beside these, LES are now producing various kinds of import substitute products and services mostly for the domestic market. With the multifaceted backdrop of LES, few of the products of it are currently exported in different countries with immense global competition. The growth and diversification of light engineering products largely depends on the policy support, public-private jointly initiative for institutional and financial support, availability of technical and business information, innovation and sustainable development of technology and related products, capacity development of industries, research and development facilities and removal of other barriers relating to the engineering sector.

In the present context of globalization, the Ministry of Commerce has taken initiative as a part of the development and diversification strategy to support LES with the objective to increase industrial base and volume of foreign trade. The light engineering industries play a vital role in the socio-economic development of the Bangladesh. This sector is not only producing import substitute goods but also facilitating employment opportunities for the country.

The Light Engineering Sector (LES) has been recognized as an important sector of Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. Light Engineering Industries (LEIs) has been sprouted in the late eighties and the sector saw tremendous growth since 1985. During late eighties, Government initiated ‘Dholaikhal Subcontracting Project’ under which public sector enterprises were advised to procure such products from local light engineering workshop. According to the estimate, there are about 40,000 light engineering workshops/enterprises operating all over the country in which around 0.8 million semi-skilled, skilled and technically educated people and innovative entrepreneurs are actively engaged. Most of the light engineering workshops are micro and small, self financed and employing about 05 (five) persons and managed by the owners. A recent study on light engineering industries by IFC-SEDF estimates that annual turnover is US$ 1600 million of which Import substitute products is around US$ 200 million.

LEIs are supplying the basic elements of an industry, like capital machinery, spare parts and accessories with high potential to export in international market. Beside these, LEIs are now also producing various kinds of import substitute products and services mostly for the domestic market. The products of light engineering sectors are: automobile spares, railway engine & rail line spares, bicycle & cycle rickshaw, Iron chain, machine tools, jute & textile machines and spares, chemical industry machines and spares, sugar and food industry machines & spares, engineering & metal industry machines and spares, marine and ship industry spares, agricultural machines, accessories and spares, plastic and related product machines and spares, electrical goods and accessories, etc.

Prior light engineering sector did not receive policy support to ensure their sustainable growth and development. Problems accumulated in these industries hindering the desired pace of growth and diversification of products. Time has come to treat the light engineering industries as on of the important potential sector having comparative/competitive advantage over other sectors. It is believed that the growth and diversification of light engineering products largely depends on the policy support, public-private joint initiative for institutional and financial support, availability of technical and business information, innovation and sustainable development of technology and related products, capacity development of industries, research and development facilities and removal of other barriers relating to the engineering sector.

In the present context of globalization, the Ministry of Commerce has taken initiative as a part of the development and diversification strategy to support LES with the objective to increase industrial base and volume of foreign trade. The light engineering industries play a vital role in the socio-economic development of the Bangladesh. This sector is not only producing import substitute goods but also facilitating employment opportunities for the country.

Light Engineering Industries (LEI) Sector constitutes a significant segment of the economy of Bangladesh in terms of their contribution to employment, output, value addition and exports. LE occupies a unique position in the economy of Bangladesh. It plays a vital role in the socio-economic development of the country. The growth of the economy for alleviation of poverty and improvement of the well being of the people crucially depends on the development of the LEIs. Light Engineering enterprises are scattered throughout Bangladesh, which implies employment generation is also widespread. LES provides employment to 10 Lac semi-skilled, skilled and technically educated people and innovative entrepreneurs are actively engaged in 60,000 micro enterprises and 20,000 Small and Medium Enterprises, with a total investment of about USD 20 billion. Analysis shows that these small & medium scale industries have made substantial contribution to Gross Domestic Product (GDP) during the last few decades and created appreciable employment opportunities. The manufacturing sector contributes to 20 percent of the total GDP of Bangladesh and out of this LES contributes to about 2 percent of the GDP. The average annual turnover of the sector now stands at Tk. 200 billion.

The Light Engineering Sector (LES) has been recognized as the mother of all other industries as it supplies basic elements, such as capital machinery, spare parts and accessories to all industries with high potential to export. Currently about 15,000 types of different items are being manufactured for local industry. However, most of these industries are still largely dependent on imports for machineries and spare parts, Die and Moulds etc. LES in Bangladesh has the potential to produce Light engineering products currently imported by the major industries in the country. LES now produces various types of import substitute products and services mostly for the local market. With the multifaceted backdrop of LES, some of its products are currently exported in different countries amidst immense global competition. Products exported include spare parts of paper and cement mills, bicycle, fancy light fitting, construction equipment, battery, voltage stabilizer, iron chain, cast iron articles, carbon rod, automobile spares, electrical goods, and stainless steel ware.

LES has also emerged as a potential cost saving sector by producing at least 50% substitutes of imported items in the country. LES is now also providing critical support to industrial, agriculture and construction sectors by manufacturing and repairing a wide range of spare parts, castings, moulds and dies, oil and gas pipeline fittings and light machinery. The players in the sector claim that electrical goods like switch, socket, electrical fans and generator etc., which are manufactured by firms in the LES, are now meeting 48% to 52% of the country’s demands, which was earlier met through import. Export growth is estimated at 30% of LES. 

With a view to promoting the country’s Light Engineering Sector; Ministry of Commerce has formed a Council on March 04, 2004 entitled "Light Engineering Product Business Promotion Council" (LEPBPC) with the partnership of both public and private sectors. The Hon’ble Secretary, Ministry of Commerce, is the ex-officio Chairman of the Council, while Vice Chairman of Export Promotion Bureau (EPB) is the 1 st Vice Chairman and President, Bangladesh Engineering Industry Owners’ Association (BEIOA) is the 2 nd Vice Chairman of the 25-member Council. The other government offices and members/associations related to LES are the member of the council.

The prime objective of forming the Council is to promote the sector to achieve competency in the local and global context as well as to help the industry building capacities in the field of human resources and acquiring technologies. The specific objectives of the Council are:

1. To promote and facilitate export of light engineering products and services;
2. To encourage and assist in balanced development of light engineering product and services;
3. To set up a common facility center for testing, training, standardization and certification of light engineering products and services;
4. To create positive attitude among policy planners, decision makers and stakeholders regarding the light engineering sector;
5. To promote and disseminate useful knowledge on light engineering product and services in particular, so as to enhance the contribution of these to the growth and development of the national economy; and
6. To develop linkage with different Institutions/Enterprises involved in promoting participation, both national and international and to help in the development of human resources required by the light engineering industries.

Since its inception LEPBPC is closely working with members/associations to design need based program for the sector and implement in cooperation with industry associations. LEPBPC has been working actively with four sector based industry associations namely, Bangladesh Engineering Industry Owners’ Association (BEIOA), Bangladesh Electrical Merchandise Manufacturers Association (BEMMA), National Association of Small and Cottage Industries of Bangladesh (NASCIB), and Accumulator Battery Manufacturers & Exporters Association of Bangladesh (ABMEAB).

• Light Engineering Sector (LES) have emerged as the cornerstone of development providing the platform for industrial growth, enhancement of trade and economic prosperity. The light engineering industries have potency to play a significant role in technological and economical development along with a vast scope of employment generation.
• The Government of Bangladesh has declared light engineering sector as one of the most priority sector in the export policy 2009 – 2012.
• Light Engineering Sector is classified as a sub-sector of Small & Medium Enterprises (SMEs). An estimate shows that there are about 40,000 light engineering industries in the country. Most of the industries are located at Dhaka, Chittagong, Narayangong, Bogra, Gazipur, Kishorganj, and other location of the country. According to the estimate around 7 million technically educated and skilled people and innovative entrepreneurs are actively engaged with the sector.
• In Bangladesh, all over 90 percent of light engineering industries are serving the local needs of the people. There are strong backward and forward linkages between the light engineering industries and other sector (such as agriculture, automobile, and transportation) of the economy in Bangladesh.
• There are about 1,200 light engineering industries presently enlisted in Bangladesh Small & Cottage Industries Corporation (BSCIC) who are supplying various type of products (such as spare parts, equipment, capital machinery) under sub contacting scheme.
• The product types of light engineering sector are: Automobile spare parts, Railway engine & rail line spare parts, Bicycle & cycle rickshaw, Machine tools, Jute & Textiles machines and spare parts, Chemical industries machines and spare parts, Sugar and food industries machines & spare parts, Engineering & metal industries spare parts, Ship industries spare parts, Agricultural machines accessories and spare parts. The light engineering industries of Bangladesh is currently producing a total 3,815 types of quality machinery, spares and accessories.
• The consumer of light engineering products and services are both the public and private sector. Major public sector consumers are: Sugar and Food Industries Corporation, Bangladesh Chemical Industries Corporation, Bangladesh Railway, BRTA, BRTC, BIWTA, BIWTC, Port Authority, WASA, T&T, PDB, Public Health Engineering, Civil Aviation, Bangladesh Biman. The private sector is also the major consumer of the light engineering products.
• A number of potential export quality light engineering products are going to foreign market on direct and subcontracting means. These are spare parts of Paper & Cement mills, Bicycle, Fancy light fitting, Construction equipment, Battery, Voltage stabilizer, Iron chain, Cast iron article, Carbon rod, Automobile spares, Electronics items, and Stainless steel wares.
• The infrastructure facilities (such as electricity, gas, transportation, and telecommunication) and labor cost are comparatively lesser than other countries as such the sector shows high potentiality of growth and development.

A competency assessment survey on light engineering sector was completed by the LEPBPC with the cooperation of Institute of Appropriate Technology, BUET. The objective of the study was to make a competency assessment of various sub sector of light engineering sector and to identify the potential categories of industries and products that could be promoted for export. The report has suggested various matters to be considered for improvement of the light engineering sector of the country. The report would help in devising plans for implementing various programs to be considered for the improvement of the light engineering sector of the country. Major recommendations of the competency assessment report are:

• Light engineering sector is one of the important sectors for the economy of Bangladesh;
• A definite policy for light engineering sector should be prepared;
• Data Bank for the light engineering sector may be created;
• Light engineering industries required exposure to modern machines and technology;
• Entrepreneurial culture should be established so that there capability can be upgraded from the average level to excellent level;
• There should be arrangement for periodic/permanent exhibition of locally produced engineering produced in the country;
• Professional training courses should be organized for capacity building of the light engineering sector;
• Technological status of product/production technology should be upgraded from conventional to modern level as per market demand; and
• Awareness campaign on standardization and quality of the products should be made.

LEPBPC has organized several training workshop in association with IAT, BUET, BITAC and other member/associations all over in Bangladesh. Objectives of the training workshops were to develop managerial, technical and operational capacity of human resource working in the industry. The training workshop are to develop awareness for integration of modern tools, instruments & machinery and technologies, to improve product quality of the light engineering industries, and to enhance capability of the LEIs with respect to material processing by introducing appropriate technology. The capacity building issue of the light engineering industries has been addressed by the LEPBPC through organizing training workshop. There are different modules organized under the training workshops were covered in the program on need based for the sector.

The module related training workshops are: capacity building of light engineering industries, productivity management in light engineering industries, Productivity Management and Quality Control in Engineering Industries, Productivity Management and Quality Control of Electrical Products, Marketing Management of Light Engineering Products in local and International Markets, Heat Treatment and quality assurance system, Advance Technology Management & CNC System, Light Engineering Product Diversification, Foundry Development & Management, Effective Value Chain Management in LE Firms, Improve Efficiency in SME Marketing, Welding for light engineering workshop, Technology Up-gradation in Light Engineering Sector with Special Emphasis to CNC Machines, Standards and Compliances of LEs, Banking Procedure for Small Business Finance, Rules & Procedures of Tax, VAT, Turnover, Income Tax and H. S. Code, Effective value chain management in LE firms in local and International Market, Rules & Procedures of VAT, Turnover Tax, Tax benefits for cottage industries Income Tax & H.S. Code for Electrical sector, Rules & Procedures to Registration, Trade Mark, Design & Patent related to Electrical sector, Strategic management of technology in light engineering sector with special emphasis to advance machinery, and CNC system, and Small competitive business plan with modern technologies in LEs were implemented.

A total number technologists, entrepreneurs, owners, foremen, and managers from several engineering industries or other small industries of different districts of the country participated in the workshop.

LEPBPC, EPB and member/associations have jointly organized seminar program of Light Engineering Products from FY 2005 to 2012. Participant from member/associations and financial institutions were attended and discussed various issues of international trade of light engineering products. Participants from industry, associations, FBCCI, DCCI, bank/financial institutions, media were attended in the seminar. Various aspects of international trade of light engineering products were discussed in the seminar. Two major issues: (a) technological capacity and productivity; and (b) products quality and standards were identified as constraints of the industry. Industry association highlighted that access to finance and non availability of quality raw materials among others were the major constraints of the industry. The entrepreneurs sought government policy support to resolve the problems.

The following issues were highlighted and discussed on the need basis of light engineering sector in the seminars:

• International trade of light engineering products;
• Problems and prospects of export of light engineering products;
• Access to Finance – Roadmap for the light engineering sector;
• Increase Productivity & Revenue by Simplifying VAT Rules; and
• Electrical Industry, Its problem, solution and prospect.

Light Engineering Product Business Promotion Council (LEPBPC) has published “Sales Kit” as a promotional tool of light engineering product and industries. The sales kit is useful for the entrepreneurs and investors to have basic information about the sector.

LEPBPC has organized awareness program in association with Bangladesh Engineering Industry Owner’s association with the objective to develop awareness among the stakeholders. The programs included Inaugural ceremony, Seminar on prospects and potency of light engineering sector, display of light engineering products and meet the press. Total numbers of engineering industries showcase their products and industries. The viewers in the display stall showed their keen interest about locally manufactured light engineering products. In the seminar there are lot of participants attended and shared their views and experience regarding the problems and challenges of light engineering sector.

LEPBPC has organized international products fair in support and cooperation from LEPBPC in association. The programs included inaugural ceremony, seminar on prospects and potency of light engineering sector, display of light engineering products and meet the press. Objective of the program was to show case the engineering products for the buyer and to create awareness about quality goods produced by the local manufactures through press and electronics media. Major products category were light fittings, cables, electrical accessories, generator, fan wires and spare parts of Machinery.

Besides display of products and capacity of local industries, a technical seminar was organized on prospects and potentials of electrical and engineering products of Bangladesh. A buyer-seller meet was also organized to appraise the potentials and existing customers about quality and diversification of the products. The manufacturers claimed that they were able to manufacture international standard and quality products with competitive price.

LEPBPC has organized trade and technology mission in support and cooperation from the member/associations. The objective of the mission was to explore the possibility and modality of transferring appropriate technology for light engineering sector of Bangladesh. The ultimate aim was to upgrade technological capabilities of our local industries through technology transfer, adaptation and dissemination. The mission also intended to develop business relationship with the counterpart of countries light engineering industry entrepreneurs.