P.P. Sack Thesis_ee

Chapter 1

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INTRODUCTION

Increased production and expansion of trade is one of the main means of local resource

generation. Employment opportunities can be created in a heavily populated country like

Bangladesh with the promotion of commerce by strengthening industrial infrastructure,

proper industrial development and finally enhancing export. This employment will pave

the way for increased savings and investment, ensure capital flow, solve unemployment

problems and eradicate poverty. In the past, jute sector was the major foreign exchange

earner contributing more than 80 percent of the total foreign exchange of the country.

But the share of jute sector towards foreign exchange earning started to decline due to

the inroad of various synthetic substitutes and artificial fibers. Regarding the evolving

issue special initiatives were taken by the concerned authorities at that time. But

subsequently, it was evident that the nationalization attempt did not really help improve

the performance of the jute industries. Rather, their performance marked continuous

deterioration and bound them to discontinue their production. As a result market

opportunity for synthetic fibers was inevitable and its entrance as raw material to the

sack manufacturing industry was just a matter of time. Therefore, gani sacks, which were

once made only from jute, were fully taken by the polypropylene woven sack

manufacturing industry with the commencement of their production. It was the story of

early nineties when Miracle Industry Ltd, the first pioneer in Polypropylene woven sack

manufacturing industries incorporated as a joint venture Public Limited Company, with

Bangladesh Government though its largest corporation, Bangladesh Chemical Industries

Corporation (BCIC) to setup their industrial infrastructure. The commercial production

was started from 1996. After then the Polypropylene woven sack industries in

Bangladesh gradually started to flourish. The cheap price of its products and their

demand in the secondary sack market has made it one of the major industrial

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developments of the country. It is set mostly up by private entrepreneurs, borrowing its

idea, setup machinery and raw materials from various foreign sources. In this regard

several policies of the government have provided a better atmosphere to develop the

sector. But a probe into its expansion raises several points that show some flaws, which

will ultimately hinder its progress and objective. This report tries to opine those invisible

flaws by examining the history, present state and activities of Polypropylene industries in

Bangladesh with some suggestions to overcome these problems.

Objective of the Research Project

The main objective of the study is to provide a descriptive look on the polypropylene

woven sack industries in Bangladesh that has been accomplished by the researcher

through anticipated and opportunistic courses of action.

More specifically the objectives are:

Reasons behind the development of the Polypropylene Sack Industries

Present market scenario of Polypropylene Woven Sack Industries

An overview of the market Demand and supply situation

A look at the Industries/Manufacturers/Others who are the potential buyers of

Polypropylene Woven Sack

Understanding the quality of manufactured Polypropylene Woven Sacks in the

industries of Bangladesh and the additional measures that can be taken to make

it fully eco-friendly

Activity performed by the reuse/recycle market of Polypropylene Woven Sacks

Finally, existing policies of the government regarding export of Polypropylene

woven sack and expansion of the infrastructure of these industries

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Benefits from the Research Project

The primary benefit of the research paper is to give a picture of the state of

Polypropylene Woven Sack Industries in Bangladesh. The study also tries to present a

statistic on Polypropylene Sack Industries in terms of number of industries, cost,

Locations and raw materials used. The main benefits, which are intended to earn by this

research paper, are to make an overall assessment of the Polypropylene Woven Sack

quality regarding its environmental parameters and to suggest further courses of action,

which can make this sack environmentally sound. Findings from the survey not only

demonstrate the rapid growth of Polypropylene Sack Industries in Bangladesh but also

try to suggest essential initiatives required from environmental perspectives to make the

sack photo chemically and biologically degradable.

Structure of the Report

Chapter One: Introduction

Chapter Two: Methodology

Chapter Three: Fundamentals of Polymer Physics and Its Manufacturing

Chemistry

Chapter Four: Present Market Scenario of Polypropylene Woven Sack in

Bangladesh

Chapter Five: Possibility of setting up High Quality PP Sack Plant

Chapter Six: Truly Green Sack for Sustainable Earth

Chapter Seven: Worldwide/Foreign Market Demand of Polypropylene Woven

Sack

Chapter Eight: Conclusion & Recommendation

Bibliography

Annex

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Chapter Two: Methodology

Sources of Data

Majority of the data used in this report is primary data. Primary Data for this report has

been collected through extensive market survey, physical observation, informal

interviews and factory visit. The area coverage of the survey was Dhaka, Munshiganj,

Naraynganj and some districts from North Bengal. Secondary data, collected mostly from

articles found in the Internet, has also been used to enrich the findings of the report.

Sampling Technique & Sample Scope

The sampling model used here is “Purposive Sampling”. The target was to cover the

major companies engaged in the following business areas:

Woven Plastic Sack Producers

Cement Producers, who either produce or purchase sacks for own

consumption

Flour Producers, who either produce or purchase sacks for own

consumption

Animal Food Producers, who either produce or purchase sacks for own

consumption

Fertilizer producers, who either produce or purchase sacks for own

consumption

As the sample size was very limited, this approach was deemed to produce the best

result as it could cover the majority of the market dimensions.

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Data Processing and Analysis

Collected information was processed with the aid of excel software. Detailed analysis is

incorporated in the report, also with a suggested course of action for both:

(1) Woven Sack Production Machinery, and

(2) Polypropylene woven Sack

Table 2.1:Sample Size Covered in the Survey

Figure 2.1:Ploting of sample size covered in the survey

Source: BMG BD

Source: BMG BD

Category No. Of Companies

Interviewed

PP Sack Producers

Woven Plastic Sack producers 09

PP Sack Users/Buyers

Cement Producers, either

produce or purchase for own

consumption.

14

Animal Feed Producers, either

producing or purchasing for

own consumption.

08

Flour Producers, producing or

purchasing for own

consumption

02

Total 33

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Limitations

The major limitations of this research project were:

1) Limited time for data collection and analysis

2) Due to the time and resource constraint, the survey area included only the

city areas of Dhaka, Naraynganj, Munshiganj and two districts from North

Bengal

3) Due to the above mentioned constraints, only a limited number of sample

companies could be covered in the field survey

4) Majority of the target companies emphasized on confidentiality and were not

much inclined to give information

5) The information in regard to some specific market dimensions is “perceived

information” as per the interviewees, which are not hard facts

6) Secondary data related to polypropylene woven sack industries are very few.

Not many quantitative studies have been carried out

7) Finally the major limitations, which hindered my primary data collection

process, were lack of fund and slow bureaucratic process during the

arrangement of factory visit

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Chapter Three: Fundamentals of Polymer Physics and Its Manufacturing Chemistry

Polymer science addresses the chemistry and physics of large, chain-like molecules. As

with the molecules themselves, this technical pursuit is diverse and complicated. The

following discussion provides an introduction to the Physics and Manufacturing

Chemistry of synthetic organic polymers for those with some knowledge of basic

science.

What is Polymer?

The term “polymer” is derived from the Greek “poly”, meaning “many”, and “mer”,

meaning “parts” — thus polymers are substances made of “many parts”. In most cases

the parts are small molecules, which react together hundreds, or thousands, or millions

of times. A molecule used in producing a polymer is a “monomer” — mono is Greek for

single, thus a monomer is a “single part”. A polymer made entirely from molecules of

one monomer is referred to as a “homopolymer”. Chains that contain two or more

different repeating monomers are “copolymers”.

Polymerization

Polymerization is the process of joining together a large number of small molecules to

make a smaller number of very large molecules. The reactants (i.e. the small molecules

from which the polymer is constructed) are called Monomers and products of the

polymerization process are called Polymers. There are significant differences between

the chemical and physical properties of polymers and those of the monomers from which

they are made. This polymerization process can occur by two different mechanisms: by

addition polymerization and condensation polymerization

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http://www.ucc.ie/academic/chem/dolchem/html/dict/polymers.html#CondensationPolymerisation

http://www.ucc.ie/academic/chem/dolchem/html/dict/polymers.html#AdditionPolymerisation

http://www.ucc.ie/academic/chem/dolchem/html/dict/000p2.html#Polymer

http://www.ucc.ie/academic/chem/dolchem/html/dict/000m1.html#Monomer

Addition Polymerization

Addition polymerization is the joining together of two or more simple molecules, called

Monomers, to form a new compound of the same empirical formula, called a polymer,

which has a very high molecular weight.

The addition polymerization process can only occur when the monomer molecule is

unsaturated (i.e. contain double bonds or triple bonds). Thus, addition polymerization is

characteristic of ethene and the other ethenes.

The polymers formed by addition polymerization are thermoplastic. These include

Polypropylene and Polystyrene.

Condensation polymerization

This may be defined as the process in which the monomer molecules of different

compounds combine with the loss of some simple molecules, like water or HCl.

Polyesters and nylon are formed by this process.

Isotactic

Isotactic is a term used to describe physical properties of polymer.In this phenomenon

chains are defined as having substituent groups aligned in one direction. This enables

them to line up close to each other, creating crystalline areas and resulting in highly rigid

polymers.

Finally isotactic polymers refer to those polymers formed by branched monomers that

have the characteristic of having all the branch groups on the same side of the polymeric

chain. The monomers are all oriented in the same way. If we represent a monomer by

AB then an isotactic polymer is AB-AB-AB-AB-AB-etc.

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http://www.answers.com/topic/monomer

http://www.answers.com/topic/polymer

http://www.ucc.ie/academic/chem/dolchem/html/dict/000m1.html#Monomer

Opaque

Not clear, not transmitting or reflecting light or radiant energy. No light passes through

specimen. Some thick specimens, which appear to be opaque, may be seen to be

translucent (when light passes through the specimen, but objects cannot be seen

through it

) Or even transparent on thin edges when held in front of bright light.

Semicrystalline

Semicrystalline polymers constitute the largest group of commercially useful polymers.

These polymers exists as viscous liquids at temperatures above the melting point of the

crystals. Upon cooling, crystals nucleate and grow to fill the available volume. The

reason these materials are called "semicrystalline" is that some fraction of the polymer

remains un-crystallized, or, amorphous when the polymer is cooled to room temperature.

The amorphous polymer becomes trapped between the growing crystals. As a result of

the highly entangled nature of the polymer chains, the movement of the amorphous

polymer becomes restricted.

Oxo-Biodegradation

Ordinary Polypropylenes because of their molecular make-up are not inherently

biodegradable even though its molecular structure is simply composed of organic carbon

and hydrogen. Polypropylene is relatively large molecule so it is too large to be ingested

by microbes. With the use of Prodegradant Additives, Polypropylene’s life cycle can be

controlled by accelerating the natural oxidative process to fracture these large carbon

chains into small ingestible fragments of organic carbon.

These additives lie dormant in the manufactured resin until exposed to sufficient UV light,

heat or mechanical stress, any one or combination of which will trigger the process.Once

triggered it cannot be stopped; and depending on the available oxygen and microbial

activity, the process will continue in air or soil.

The only by-products from the process are CO2, H2O and biomass – there are no

harmful residues. So Oxo-Biodegradation is a two steps process in which the polymer

resin first disintegrate in to parts and oxidize by the influence of light and oxygen then

these small fragments are ingested by microorganism like fungi, bacteria.

.

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http://www.wordwebonline.com/en/LIGHT

http://www.wordwebonline.com/en/REFLECTING

http://www.wordwebonline.com/en/TRANSMITTING

http://www.wordwebonline.com/en/CLEAR

What is Polypropylene?

Polypropylene is a raw material used in manufacturing polypropylene woven sacks for

packaging cement, fertilizers, poultry feeds, wheat, rice, sugar and pulses, etc.

Polypropylene granules that are a by-product of petroleum, is the main constituent

needed to manufacture polypropylene woven sack. Other elements used to manufacture

this sack are calcium carbonate and color granules. Polypropylene is basically semi-

crystalline, white and semi-opaque element, which is usually predominantly isotactic.

Polypropylene has well chemical but poor UV resistance. As it has been said earlier

polypropylene is a product of Petroleum, created hundreds of millions of years ago when

organic matter such as plankton was compressed and trapped in huge carbon reservoirs

as petroleum. Petroleum, a naturally occurring mixture that is obtained from wells (crude

oil), is a complex mixture of hydrocarbons. Hydrocarbons are crude oil’s fundamental

base consisting of about 85-90% carbon and 9-15% hydrogen. In addition, a various

amount of oxygen and sulfur, and minute amounts of nitrogen, metals and other

elements are also included in its composition. Carbon, present in the crude oil is

characteristically organic. Organic carbon is different from carbon metal in that its origin

is primarily organic plant tissues like any organic material in our environment, it is the

primary food source for the tens of thousands of different microorganisms (bacteria and

fungi) that survive and thrive in our air, soil and water. Like paper that is made from

another organic material – cellulose, polypropylene is made from the hydrogen and the

“organic” carbon in petroleum, and like paper, polypropylene can also be made

biodegradable.

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Picture 3.1:Polypropylene granules

Chapter Four: Present Market Scenario of Polypropylene Woven Sack in Bangladesh

Machinery Used in Manufacturing Polypropylene Woven Sack

The categories of users are as follows:

Category-1: Woven Plastic Sack Producers who sell to external parties

Category-2: Companies that produce Woven Plastic Sack for their own

consumption

Nine companies that fall under Category 1 (sack producers only) were interviewed. In

general, the interviewees responded/replied well on the topics like Yearly Production

Capacity, Unit Selling Price (Tk.) per bag, Bag Size/ Weight, etc. They also disclosed the

Manufacturer Company/ Brand of the Plant that they are currently using, and the country

of origin of this machinery. The response was very limited when it came to cost aspects

of the business. None of the respondents agreed to provide the Plant Setting Cost.

Regarding ‘Raw Material Cost per Bag’, the respondents gave an idea on the

“percentage of costs” associated with raw materials for bag production, but did not give

any specific figures.

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From the survey, it was found out that these producers are predominantly using

machinery imported from China. The reason for the popularity of China is the mix of

price-quality they offer, with more emphasis on price, rather than quality. The price of

Chinese machinery is substantially low compared to other brands. The price of Indian

machinery is also low, and one of the companies interviewed is using Indian machinery.

It was observed that, while making the machinery purchase decision, companies tend to

focus on the price aspect more, rather than the quality. From the quality perspective they

are well acquainted to brands like “Starlinger” which is renowned worldwide. The

interviewees commented that they understand the motto -High Quality, High Price- and

also know the fact that raw material costs are low in case of such brands but due to the

price sensitivity interviewees fear that it would be a bit difficult for Starlinger or others, to

sell their machinery at the beginning, in Bangladesh, because of the price sensitivity of

the market.

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The table in the following page presents in detail the findings from the survey:

Table 4.1: Findings from the Survey, Polypropylene Woven Sack Producers

Company Name

GQ Industries Ltd.

United Fibre Industries Ltd.

Sino Bangla Industries Ltd.

Miracle Industries Limited

Alliance Bag Limited

Hussian Bags Limited

Shovan Woven Bag Mfg. Co. Ltd.

Jayson Group Of Companies

Business TypePP Sack Producer

PP Sack Producer

PP Sack Producer

PP Sack Producer

PP Sack Producer

PP Sack Producer

PP, Paper and also Shopping Bags Producer

PP Sack Producer

Bag Type(AD*STAR& Standard Sack)

Standard Both Both Standard Both Standard Both Standard

Production costper unit

(not disclosed by the respondents)

Yearly Production Capacity

3,65,000pcs

4,38,00,000pcs

8,40,000pcs

3,65,00,000pcs

1,44,00,000pcs

1,50,000kg

1,3500000Pcs

72,00000pcs

Unit selling price (Tk.)

1113 (Double Ply)10 (Single Ply)

13 (Double Ply)10 (Single Ply)

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13-14 (Double ply)9.5 – 11 (Single Ply)

12

13-14 (Double ply)9.5 – 11 (Single Ply)

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Bag Size 25/50, 22/44 25/50, 22/44 - W- 25; L- 50 19*29 &22*38 W- 25; L- 50 24/44Bag Weight 100-110gm 100-110gm - 110-115 gm - 110-120 -Raw Material Cost Per Bag

80% - 90% 90% 80% - 90% 80% - 90% 9.00 tk80% - 90%

9-10 tk

Raw Material Source

China, India, Saudi Arabia, Malaysia

China, India

Korea, Thailand, Taiwan, & India, China

China, India China, India Australia China, India

Korea, Thailand, Taiwan, & India

Plant Setting Cost

(not disclosed by the respondents)

Plant Manufacturer Company/ Brand

Rising -GCL LOOM MACHINE

Yarn Frang

Source: Sample survey BMG BD 2005

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Table 4.1: Findings from the Survey, Polypropylene Woven Sack Producers (Continued)

Company Name

GQ Industries Ltd.

United Fibre Industries Ltd.

Sino Bangla Industries Ltd.*

Miracle Industries Limited

Alliance Bag Limited

Hussian Bags Limited

Shovon Woven Bag Mfg. Co. Ltd.

Jayson Group Of Companies

Country Of origin, Machinery

India Taiwan -India (before: China)

Greece China Taiwan China

Man Power Required

150 - - - - -

Interviewee Comments on Starlinger Machinery

Competitive market

Competitive market

Competitive market

Good prospect

Competitive market

Competitive market

Good Prospect

Competitive market


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Scope and Area of Polypropylene Woven Sack

The users of Polypropylene Woven Sack were interviewed to find out the market

mechanism and demand of this item. The users of Polypropylene Woven Sack come from

many industries (like: Cement Producers, Animal Feed Producers, Flour Producers,

Fertilizer Producers, Sugar Mills, Rice Mills, Salt Producers, Tea Gardens, Cereals

Producers, Chemicals Industries, etc.). Of these different categories, PP Sack users of

the following three categories were covered in the survey:

Cement Producers

Animal Feed Producers

Flour Producers.

The approach was made in way to cover both of these following aspects:

What is the demand of Woven Bags, and how they are procuring it

Whether they are interested to set up own plant/unit to meet own demand

of sacks?

Among the companies interviewed, fourteen are engaged in Cement production, eight in

Animal Feed and two in Flour production. The interviewees generally stated that they

procure the woven bags from external sources like Shovon Woven Bag Mfg. Co. Ltd.,

Sino Bangla Industries Ltd., Miracle Industries Limited, etc. In general, they are not

interested to set up plants or manufacturing units to produce bags. A remark of one of

such interviewees was “We are here to produce cement, not bags”. They feel that their

expertise lies in the core business, and they do not want to deviate from the core

business area.

The first exception to this general approach is Shah Cement. Shah Cement has

established a P.P. woven sack plant for its own consumption, based on Starlinger

machineries (Austrian origin). The second exception in this collective approach is Premier

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Cement. They are very much interested to setup a 36 million capacity plant to

manufacture P.P. woven sack for their own consumption.

The prices of the bags used in the cement industry vary according to the types of bags.

For double ply bags, the price varies from 12 Tk. – 14 Tk per bag. For single ply bags,

prices vary from 9.50 Tk. to 11.00 Tk. The weight of bags is more or less constant, which

is 110 gm.

Figure 4.1:Comparision of Bags price

Source: BMG BD

The demand for bags in cement industry is high. These fourteen companies interviewed

alone stated a yearly demand of around 110 million bags per year. But, this demand for

bags comprises of both “paper bags” and “PP bags”. In the rainy seasons, the producers

have to use the PP Sacks. But, in other seasons, some producers prefer to use “paper

bags” instead of “PP bags”. The ratio of PP Bags to Paper Bags consumed in a year is

approximately 70:30.

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Now, to estimate the demand of PP bags in a year in the cement industries, we would

have to take 70% of the total demand (110 millions), which comes to around 77 Millions.

So, the yearly demand for PP bags of these companies interviewed is estimated to be 77

Millions.

The major suppliers of bags for cement industries are: Sinobangla, Simly Industries,

Shovon, S.Alam, and Maghna Group. Data could be obtained from only one Flour

Producer. Its yearly consumption of bags is 0.80 million. Bag weight is 110 gm, and price

is 13 tk. The supplier is Super Thai Plastic Ltd.

In case of Animal Feed Producers, the yearly demand of bags (of the 08 companies

interviewed) is around 9 million. Bag weight is 110 gm price varies from tk. 13.50 to tk.

15.50. The suppliers for these industries are: Alliance Bags Ltd., Miracle, Sinobangla,

Bengal Poly Bags, GQ Industries Ltd. Rails Agro, and Maghna Group.

Point to be noted that this demand of PP Bags discussed in this section represents the

demand of the thirty-three (33) bag users interviewed in this survey only. Also, note that

companies from three sectors (Cement producers, Animal Feed producers, and Flour

producers) were interviewed. Demand will also come from various other sectors (like

Fertilizer Producers, Sugar Mills, Rice Mills, Salt Producers, Tea Gardens, Cereals

Producers, Chemicals Industries, etc.).

As it was said earlier for polypropylene woven sack-manufacturing “Starlinger” is a well-

known brand to these producers. Starlinger has two type of woven sack. One is

AD*STAR (especially for cement) and another is Standard sack (for other materials).

Producers are already aware of the quality aspects of this brand and also the

environmental features, which is one of the main focuses of my study area. But none of

the manufacturers are interested or concerned about the environmental feature of this

sack. What they are interested about is the price and delivery of the sack. One of the

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interviewee said that if timeliness of delivery can be assured, and price is competitive,

these companies will prefer to buy AD*STAR bag to the other choices.

As per the interviewee comments, the Key Success Factors for a polypropylene woven

sack producer/supplier are as follows:

Timeliness of Delivery(very very important)

Quality of the Product (very important)

Price of the Product (very important)

Regarding the quality aspect, these potential buyers are already aware and are

convinced of the better position of AD*STAR bag in respect to its better position over any

local product. If delivery schedule can be maintained, and price is competitive, then, all

the respondents said that AD*STAR will gain a fantastic market share.

In the words of a respondent, “AD*STAR can be as successful as ECONO ball pens if

they can supply bags at a good price”.

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The table in the following page presents the findings from the survey in details.

Table 4.2: Findings from the Survey Polypropylene Woven Sack Consumer

Company NameBusiness Type

Yearly Demand (pcs)

Supplier Bag SizeBag Weight

Unit Price (Tk.)

Interviewee Comments (ADSTAR Bag)

Russel Industries Ltd.

Cement Producer

73,00,000Sino Bangla, Simly Industries, Shovon

25/50 115gm12.00 -14.00

Good Prospect

Elephant Brand Cement

Cement Producer

72,00,000Maghna Group, Sinobangla, Shovon

24/44 110gm 11.00 Good Prospect

Crown CementCement Producer

60,00,000 Maghna Group 25/50 110gm11.00 - 12.00

Good Prospect

Metropolitan Cement Ltd.

Cement Producer

15,00,000Maghna Group, Shovon

25/50 110gm12.00 - 13.00

Good Prospect

Heidelbergcement Bangladesh Ltd. (Scan Cement/Ruby Cement)

Cement Producer

2,92,00,000Maghna Group, Sinobangla, S.Alam, Shovon

22/4425/50

100gm160gm

9.50 - 13.00

Good Prospect

Nitol CementCement Producer

11,50,000Sinobangla, Maghna Group

L- 112W-60

110gm12.00 -14.00

Good Prospect

Niloy CementCement Producer

10,00,000Sinobangla, Maghna Group

L- 112W-60

110gm12.00 -14.00

Good Prospect

Lafarge CementCement Producer

Have not started production yet. Will start from September-2005. Estimated yearly demand (as per interviewee): 20 million pcs.

Good Prospect

Confiedence Cement Ltd.

Cement Producer

48,00,000 Local MarketL- 112W-60

160gm 13.00 Bad Prospect


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Table 4.2: Findings from the Survey Polypropylene Woven Sack Consumer (Continued)


Yearly Demand (pcs)


Unit Price (Tk.)


Olympic Cement Industries Ltd.

Cement Producer

72,00,000Shovon, Sinobangla, Seven Rings

L- 112W-60

160gm 13.00 Good Prospect

Premier CementCement Producer

1,08,00,000Shovon,GQ Industries Ltd.

L- 112W-60

160gm 13.00

Meghna Cement (Basundhara Group)

Contacted. Interviewee informed the researcher that he will come back with the answers, after approval oftop management. Follow-up done by researcher. Reply not received till date.

Unique Cement Industries Ltd.

Cement Producer

90,00,000 Magna GroupL- 112W-60


Shah Cement Industries Ltd.

Cement Producer

2,40,00,000Shah Cement Industries Ltd. (Sack Unit)

L- 112W-60


General Flour Mills Ltd.

Flour Producer

8,00,000 Super Thai Plastic Ltd.L- 112W-60


Nurani Flour Mills Ltd.

Contacted. Interviewee informed the researcher that he will come back with the answers after approval oftop management. Follow-up done by researcher. Reply not received till date.


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Table 4.2: Findings from the Survey, Polypropylene Woven Sacks Consumer (Continued)


Yearly Demand (pcs)


Unit Price (Tk.)


Kazi Farms Ltd.Animal Feed Producer

24,00,000Bangla Poly, Ab Oven Bag, Sun Yead

22/44 100gm 9.50 Good Prospect

Aftab Bahumukhi Farms Ltd.

Animal Feed Producer

24,00,000Alliance Bags ltd., Miracle, Sinbangla

L- 112W-60


Quality, Feed Ltd.


3,65,000 Alliance Bags Limited25/50 110gm 13.50

Good Prospect22/38

70-75gm

8.00

Mondal Agro Industries Ltd.


6,00,000Bengal Poly Bags, GQ Industries Ltd.

L- 112W-60


Lion Feeds Limited


12,00,000 Rails Agro 25/50 110gm12.00 - 13.00

Good Prospect

C.P.BangladeshAnimal Feed Producer

6,00,000 Local Market 25/50 110gm12.00 - 13.00

Good Prospect

Paragon GroupAnimal Feed Producer

10,00,000Maghna Group, Sinobangla, Miracle, Alliance Bags

24/44 110gm 15.50Good Prospect

20/33 85gm 11.20

Saudi Bangla Fish Feed Ltd.

Fish Feed Producer

8,00,000Maghna Group, Sinobangla, Miracle, Alliance Bags

24/44 110gm10.00 - 12.00

Good Prospect


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Raw Material Sources of PP Woven Sack

Picture 4.1: Interviewing of P.P. raw material whole-saler at Rudra road of Lalbagh(17 th

September 2006)

The raw materials of P.P. woven sacks mostly come from Saudi Arabia. Korea,

Singapore, Thailand, Taiwan, Australia, China & India are the other countries from

where supplies of the raw materials of P.P. woven also sack come to Bangladesh.

According to the demography and as one of our neighbor India is the nearest country

from where P.P. granules could be collected easily. But for the congestion in land-

ports and for other bureaucratic problem it is easier to bring raw material from

Singapore than India said by one of the interviewee who is an importer of P.P.

granules. Some manufacturing industries of P.P. woven sacks import P.P. granules

by their own self and other collect from the importer. Most of these importer’s shops

are located at Urdu Road (K.B. Rudra Road), Horonath Gosh Road of Lalbagh of old

Dhaka. Regarding the price aspect the importers don’t want to disclose much. One of

the interviewee said that one metric Ton of P.P. granule cost .12 million taka. Also

regarding the Duty aspect they are very much evasive. One of the importers told me

tentative percent of duty, which was 15% previously and now presently 13% imposed

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on P.P. granule import. P.P. raw materials are very much price sensitive. Its price

fluctuates all over the year. The price volatility of P.P. raw materials depends on

several conditions. Which are Organization of Petroleum Exporting Countries

(OPEC) output and supply, Terrorism, Weather/storms, War or any other unforeseen

geo-political factors that cause supply disruptions, Global demand particularly from

emerging nations, Dollar fluctuations, Refinery fires & funds buying etc.

Perceived Brand Value and Market Demand of High Quality

Machinery and Sacks

While assessing the present status of PP Woven Sack Industries in Bangladesh, I

have found that no standard machinery brand name is known to the users or persons

related to this sector. They are using machinery from various sources, but no one

was able to affirm the highest quality brand name available in this sector. So, after

lots of surveying, talking and searching I found that the highest-ranking brand that

provides the best quality machinery for this sector worldwide is “Starlinger” of Austria.

But surprisingly this brand is the least chosen one in Bangladesh.

1. Potential buyers of Polypropylene Woven Sack Manufacturing Machinery

Producers of Woven Bags:

The existing producers of woven bags already have a set up. The origin of machinery

used is predominantly China, because of the price advantage. None of the

interviewees expressed and plan of expansion or setting a new production line. So,

the possibility of new sales is very low in this segment. The option for replacement

machinery is also low, as, the potential customers perceive Starlinger as “High

Quality, High Value”, and the preference of the market is “Lower-priced Machinery”.

Users of Woven Bags:

As discussed earlier, the users of woven sack are not interested to set up plants/units

to produce bags. They feel that their expertise lies in the core business, and they are

unwilling to deviate from the core business areas.

So, the prospect of Starlinger or such machinery in Bangladesh can be anticipated as

“very slow” in the beginning.

25

2.Potential buyers of Woven Sack

As mentioned earlier, AD*STAR bag is a known item to the Cement/Flour/Animal

Feed producers of Bangladesh. All of these are potential buyer of the AD*STAR Bag.

If timeliness of delivery can be assured, and price is competitive, these companies

will prefer to buy AD*STAR bag to the other choices. It may be worth mentioning

here that Scan Cement / Ruby Cement was also very interested in the AD*STAR bag

and they also want to meet the environmental compliances before manufacturing this

sack.

The fourteen companies interviewed alone are consuming around 77 million bags.

One point worth noting is, that cement companies are consuming app. 91% of these

120 million bags (around 110 millions). So, from the present state analysis it could be

said that the cement industries are the major market for this polypropylene woven

sack.

All of the interviewees hold AD*STAR Bag in high respect, and they are anticipating

very good market for AD*STAR Bag in Bangladesh after considering its qualitative

and environmental parameters. Even, while discussing with Lafarge, it was

mentioned that Lafarge India can also be a potential client of an AD*STAR Bag

producer of Bangladesh, if the price/quality/schedule combination can be met by the

producer. Lafarge Bangladesh will promote it to Lafarge India if they are satisfied with

the local producer.

A more comprehensive picture of total market demand and expected market share of

Polypropylene Woven Sack can be drawn after the completion of the countrywide

survey.

There are potential buyers in various other areas of business. It was not possible to

cover the other potential sectors due to the limitations. The potential sectors that can

be addressed for woven PP sacks are as follows:

Fertilizer

Sugar

Rice

Salt

Tea

Cereals

Chemicals

26

Why High Standard Sack Like “AD*STAR”?

From Environment Point of View

Ultravioletly Degradable

The sack is made from polypropylene, which is broken down by UV when exposed to

sun for a long time.

Chemically Inert

Polypropylene is non-toxic. That means it is not harmful for soil and water when in

contact during use or when dumped after use.

No Adhesive

The sack is the only industrial sack where the patches are fixed by a patented hot

welding process. So there is no toxic glue used during the production of the sack.

No Broken Sacks

The high strength of the sack avoids breakage and spillage. So there is no pollution

caused by lost filling goods and broken sacks.

No Reproduction

No breakage means also that there is no need to reproduce and replace lost goods

and sacks. The environmental harm caused by this reproduction process can be

avoided.

RecyclableThe sack is made of nearly 100% polypropylene and can be remade into granulate

after emptying. It is also suitable for "intrusion" - the revolutionary recycling technique

for processing mixed household-grade plastic waste into quality molded products.

Energy recovering

A product made of plastic contains a very high-energy value. So in many countries

plastic waste is used to replace primary fuel in the industry. Especially in the cement

industry this already saves up to 30% of oil and coal.

Long life Product

The high strength of the sack makes it suitable for different applications after the first

use. In some countries this kind of sack is also sold on markets as a second hand

bag.

27

Save Raw Materials

The low weight of the sack - about 80g compared to a sack of plastic film or paper

with a weight of more than 180g and the same characteristics - save a high quantity

of raw material.

From Handling Point of View

Fully automatic filling

The AD*STAR sack is suitable for all manual and automatic sack placing and filling

units. The characteristics of the sack can be adjusted to special demands if

necessary. Also the valve can be produced to be suitable for an automatic valve

sealing process after filling.

Stacking and storage

Having the same Shape as sacks of other materials, the AD*STAR sack teams up

perfectly with palletising or truck loading equipment, whether manual or fully

automatic. The brick-shaped filled sacks require a minimum of storage space, and

their high strength allows stacking up to the roof.

Transport to end consumers

Rough handling, high humidity or rain, which result in high breakage rates with other

sacks, are managed well with the AD*STAR sack. Its high strength and water

resistance minimize the number of lost sacks. Protected in an AD*STAR sack your

goods will reach the end consumer in perfect condition.

From financial Point of View

The price of an AD*STAR sack is very competitive to a comparable paper or plastic film sack. This is because of special characteristic:

The strength of the polypropylene woven structure allows light sack weight

Low process cost is obtained with specially developed machinery

The stability of the AD*STAR sack virtually eliminates costs related to sack

breakage: replacement of lost filling goods and sacks as well as cleaning

costs. All together this means a huge amount of money saved by using

AD*STAR sacks.

28

Experience of PP Woven Sack Factory Visit

Picture 4.2:Interviewing Shah Cement Industries P.P. woven sack Unit Incharge (20th

September 2006)

Visiting of the manufacturing industries of Polypropylene woven sack was a great

and professional experience for me as it was a part of my research work. For the

arrangement of Factory visit I had to wait a long time, because the authority of the

factory were so much reluctant to give permission of Factory visit as orthodox

procedure was maintained for seeking permission from them. At last when I got the

permission of Factory visit it was a great relief for me. It was 20th September of 2006

when I was first scheduled by Shah Cement Industry authority for visiting their

Factory. Shah cement Industry is a Unit of Abul Khair Group and they are one of the

manufacturing Factory of P.P. woven sacks that are producing sacks for their own

consumption. It is located at Mukterpur of Munshiganj District. Their manufacturing

Industry of sacks are adjacent to the cement Industry premises. The plant manager

(Sack Unit) helped me a lot to understand the Production Line of Sack Unit. The

production Line of Sack Unit is completed by the combination of several machineries-

Tape/Yarn Line (Starex), Loom/Wearing machine, Lamination machine, Printing

29

machine, AD Convertex Machine (for finished sack), Roll slitting/Cutting machine and

finally Hydraulic machine. All of these machineries are from Starlinger (Austria). This

manufacturing plant is maintaining a higher quality regarding their internal

environment and also from product quality perspective. Other two sites, which have

been visited, are located at Hosni Dalan of Lalbag of old Dhaka and at Phulbari

Thana of Dinajpur District. The site of Hosni Dalan is a small factory involved in the

production of small P.P. woven sacks. It was an anonymous factory. The woven sack

industry of Phulbari of Dinajpur district is a newly established industry, which hasn’t,

completed its test production yet. The establishment of P.P. woven sack industries in

Phulbari suggests that the number of industries of P.P. woven sack is increasing and

from Industry location perspective it is decentralizing because of its prevailing

demand in the market of Bangladesh.

Manufacturing Process & Quality Found by Factory Visit

Picture 4.3:Visiting of Shah Cement Industry woven sack unit with the Unit Incharge (20 th

September 2006)

30

The present states of P.P. woven sack produced in Bangladesh are not up to the

level from the quality and degradable perspective. Two or three industries are

maintaining optimum quality level but not the parameters regarding biodegradability.

Among the raw materials, Calcium Carbonate is especially used in these industries in

producing P.P. woven sacks, to disintegrate the sacks in the course of time. After

finishing its second hand market use when the sack is disposed as discarded

commodities it will take another bunch of years to disintegrate it as parts. As it has

been said earlier, P.P. woven sacks disintegrate through Photo degradation process,

which starts when the sacks are exposed to UV light for a prolonged time. But the

mineralization of these disintegration parts takes another decade or more, which

make it partially degradable. In the next section of my report I have tried to suggest

one of the useful way by which P.P. woven sack Industries could find a new way to

green Bangladesh by greening their product.

Reuse/Recycle of PP Woven Sack

Picture 4.4:Whole-saler shop of used polypropylene woven sack at Khaer-Patti of Nitaiganj of

Narayanganj (20th September 2006)

31

The Reuse/Recycle of Polypropylene woven sack starts from its source with the

selling of the yarn or resin of polypropylene which is leftover during the final shape

producing of the sacks, by manufacturing industries to the scavenger of curb-market

site of P.P. woven sacks. The scavengers sell it to the small buyers of the reuse

market, who finally send it to its final destination- small plastic factories engaged in

the manufacturing of jar, mug etc. Another part of the reuse process, which is the

major one, is performed by the small operators of these reuse-markets relatively all

over the country. They accomplish their job by collecting sacks from various

industries that are the primary user of these sacks, for example cement industries,

flour industries located in various parts (districts) of the country. The district based

retailer then supply those sacks to the whole-salers of the secondary market. The

whole-salers then purchase at rate of 9 to 10.5 taka per piece (highest price) or 2.5 to

5 taka per piece (lowest price) based on sack’s quality. These whole-saler markets

are mostly located in the divisional districts. Among them Chittagong, Dhaka and

Naraynganj are the biggest markets of Bangladesh which are involved in the reusing

of polypropylene woven sacks. In Dhaka these markets are located in Panghat,

Soaryghat, Imamganj, Maulobibazar of old Dhaka and also a big recycling market is

located at Tongi. The Khaer-Patti of Nitaiganj of Narayanganj is another big reuse-

market of P.P. woven sacks. About seventy to eighty retailer-shops are positioned in

this place. For its demographic importance Nitaiganj of Naraynganj has gained more

popularity as a recycle-market of Polypropylene woven sack. Moreover the majority

of the cement industries that are the key users of these P.P. woven sacks are located

close to Naraynganj at East Mukterpur of Munshiganj district from where the highest

supply of these sacks come. Last of all, the Kalur-ghat of Chittagong district is

another famous recycle market of P.P. woven sacks, which collect most of its supply

from the fertilizer industries.

32

Chapter Five: Possibility of Setting up High Quality PP Sack Plant

As can be seen from the survey results, the respondents showed keen interest in the

“finished goods”, i.e.: AD*STAR Bag. On the other hand, demand for Starlinger

Woven Plastic Sack Manufacturing Machinery is very low, due to the “price factor”. In

this scenario, a business plan can be made to capitalize on the perceived demand of

AD*STAR Bags. The mechanism can be setting up an AD*STAR bag production

facility by an independent third party, with the technical assistance from Starlinger. If

a 24-million capacity production plant is established, it is a high probability that at

least 20 million bags out of 24 million can be sold in the first year.

To recap, the Key Success Factors for a woven plastic sack producer/supplier are:

Timeliness of Delivery

Quality of the Product

Price of the Product

To be successful, the AD*STAR producer Must have excellent performance in regard

to these three aspects.

Commercial Models which can be followed

With the progression of time and expansion of businesses, the focus from ‘Direct

Payment’ has shifted to various other modes of payments like deferred payments,

cost sharing, joint ventures, etc.

From the responses of the interviewees, two commercial models have been identified

by the researcher, which are preferred by the potential buyers. These two models

are:

(1) Deferred Payment

(2) Joint Venture.

1. Deferred Payment:

In this model, the buyer will take a plant setup from Starlinger. A certain percentage

of the total price of the machinery will be paid to Starlinger up front. The rest of the

amount will be paid in installment over a time period of 2-3 years.

33

2. Joint Venture:

This method is proposed and preferred predominantly by the users of the PP bags,

like, cement producers, etc. Let us take a cement producer as the local counterpart

of Starlinger as an example to elaborate this model.

In this model, Starlinger would set up the plant in the premises of the cement (etc.)

producer. Then, the cement producer would buy the PP sacks produced in this

factory and the sale proceeds of these bags will go to Starlinger.

In this model, the cement producer will provide the necessary space (land, building,

etc.) for plant setup. The cement producer will provide the labor workforce and

operational costs will also be bearded by him. The overall management of the plant

will be the responsibility of Starlinger. Starlinger will also provide the “Technical

persons” and “Technical Resources” necessary to run the plant.

The reason for their (cement producers, etc.) preferring this model is that they are not

too well versed on running a PP Sack production line. Their competencies lie in their

core business, and they do not want to deviate from that. Now, if Starlinger is

responsible for the overall management of the PP Sack producing plant, they will be

comfortable that the plant is run by the right people with the right capabilities are

responsible for operating the plant.

Project Cost:

A) For 24 million bags per year: 5.4 million Euros (Approximate)For 36 million bags per year: 6.8 million Euros

B) SPACE REQUIRED:

For 24 million: 90 m x 42 m = 3780 sq.mFor 36 million: 99 m x 42 m = 4138 sq.m

C) PRODUCTION COST PER BAG:

For 24 million: USD 0.15 – 0.16For 36 million: USD 0.14 - 0.15

D) MANPOWER REQUIRED:

For 24 million: 102For 36 million: 120

34

E) POWER CONSUMPTION:

For 24 million: 620 KW For 36 million: 660 KW

F) Sack Dimensions (Maximum)

Sack length: 430 to 910 mm.

Sack width: 350 to 600mm.Bottom width: 80 to 160mm.

Government Policy Regarding Polypropylene Woven Sack

There is not much to say about the Government Policy regarding P.P. sack and its

Industries. The government has considerably brought down the customs duty in the

last few years. The duty was imposed fifteen percent previously on polypropylene

granule import. Now it is thirteen percent. Government has totally banned the import

of polypropylene woven sack from out side of the country to promote local

manufacturing and also export of this sack. There are some Fiscal policies those are

under consideration of the government, which hasn’t been disclosed by the

concerning authority.

35

Chapter Six: Truly Green Sack for Sustainable Earth

Most woven sacks are manufactured by process involving chain polymerization,

polyaddition, or polycondensation reactions. These processes are generally

controlled to produce individual polymer molecules with defined

Molecular weight (or molecular weight distribution)

Degree of branching, and

Composition

Once the initial product of these processes is exposed to further shear stress, heat,

light, air, water, radiation or mechanical loading, chemical reactions start in the

polymer, which have the net result of changing the chemical composition and the

molecular weight of the polymer. These reactions, in turn, lead to a change in the

physical and optical properties of the polymer.

In practice, any change of the polymer properties relative to the initial, desirable

properties is called degradation. In this sense, "degradation" is a generic term for

any number of reactions, which are possible in a polymer.

Exposure to sunlight and some artificial lights can have adverse effects on the useful

life of polymer products. UV radiation can break down the chemical bonds in a

polymer. This process is called photodegradation and ultimately causes cracking,

chalking, color changes and the loss of physical properties. Photodegradation

generally involves sunlight; thermal oxidation takes place in parallel with

photooxidation.

Photodegradation differs from thermal oxidation in that it can be started by absorption

of UV light. Most pure polymers are theoretically incapable of absorbing UV light

directly. Trace amounts of other compounds within the polymer, such as degradation

products or catalyst residues, impurities can however absorb UV light. For this

reason, P.P. woven sack can also absorb UV light, which helps it to degrade by

performing Photodegradation.

Polymers are remarkable materials that are used in millions of single use applications

for consumer, commercial, agricultural and industrial applications. Its volume is

increasing gradually worldwide. So the issues of the "wasteful use of diminishing

36

resources" and, "Polymer material as an environmental pollutant" are becoming

stronger day by day. These issues are well documented in hundreds of studies and

articles. While "Reduce Reuse Recycle" programs will always be vital in the greening

of polymer stuffs, the fact is, most of the billions of pounds of polymer that are

produced each year end up as garbage in a landfill. Adding to the negative legacy,

Poly sacks actually entomb and preserve the naturally biodegradable refuse that

makes up more than 40% of all household garbage.

For polymer products to achieve the ultimate status as a material in complete

harmony with a naturally sustainable environment, the life cycle of polymer has to be

reengineered to end its life cycle as a "totally degradable" material.

Oxo-biodegradable Polypropylene Woven Sack

Some world-renowned scientists have focused on the development of additive

technologies that work with ordinary polypropylene resin in a two-step process that

accelerates oxidation and then biodegrades. This two-step process is commonly

referred to as “oxo-biodegradation”. As it has been said earlier, these woven sacks

are produced from oil-based resins, which could be modified by Totally Degradable

Polymer Additives (TDPA) developed by Environmental Products Inc (USA) to make

them fully biodegradable. This, Totally Degradable Polymer Additives (TDPA) or

prodegradant additives control Oxo-biodegradation process in a highly predictable

and manageable manner in all conditions whenever it finds a source of oxygen and

naturally occurring microorganisms (air, soil, landfill, compost, litter).

These Biodegradable Additives are engineered to degrade and totally split the P.P.

woven sacks in 90 to 120 days and 60% mineralize / biodegrade in a further 12 to 24

months when disposed of in a commercial compost facility and in subsequent soil

application.

The prodegradant additives, used in the Polypropylene Woven sacks, have been

extensively tested by the scientists for ecotoxicity. It has proved by them that there is

no harmful residues exist in these additives that could accumulate in the soil. The

Scientists have also undergone full-scale landfill and commercial compost trials. In

the compost trials, after sieving, compost that contained bags modified with these

37

same proprietary additives met the highest standard as fertilizer under the “Austrian

Compost Quality Seal”.

The good news for our environment is that with the use of degradable /

biodegradable additives, in addition to Reduce and Reuse – “Recycling” can take on

a whole new meaning as the “organic carbon” in modified P.P. woven sacks can be

safely returned to the natural bio-cycle in predictable and controllable timeframes.

Processability

The prodegradant additives, in pellet form, are added to polypropylene resins at the

start of the manufacturing process. There is no special equipment and few

adjustments necessary to conventional processing equipment. Output is not

compromised in any way. The prodegradant additives are easy to handle from a

materials handling point of view and storage practices are normal. Finished products

fit within reasonable economic models.

The Biodegradable Sack Solution

This Solution is committed to actively participate within a cross-industry coalition and

with environmental groups and legislators to find solutions that avoid the necessity of

punitive taxes and total bans on polymer materials based bags. It is my view that the

solution for synthetic woven sack as a pollutant must be dealt with it at the source

when it is made. It has to be affordable within reasonable business models.

The solution depicted here is to deal with the cause of the problem at the point it

enters our environment. “Bioinert” plastics can also be modified with prodegradant

additives such as woven sacks of polypropylene to speed oxidization and safely

return the carbon to the natural bio-cycle as a food source for microbes. This can be

achieved within predictable and controllable time frames, thereby helping to mitigate

the need to deal with the problems caused by accumulating Polymer materials as

litter.

38

Chapter Seven: Worldwide/Foreign Market Demand of Polypropylene Woven Sack

With the expansion of global trade and arrival of new commodities everyday, the

demand of PP Woven Sack is increasing day by day through out the world. Data

shows that the developed countries are meeting up this demand by importing it from

the Eastern Countries. The following tables will provide a clear conception of this

increasing demand:

Table 7.1 Western European Trade in Polypropylene Woven Sacks

1975 1980 1985 1998 1999 2001 (.........................…….……..Thousand Tons…….....…………………........)

Imports

Belgium 2.4 4.9 9.4 3.9 4.4 4.7France 1.6 3.1 2.7 2.4 3.6 3.9Germany 1.2 2.8 3.0 2.7 2.1 2.6Italy 0.4 1.7 2.5 6.1 4.7 4.9Netherlands 2.7 6.3 9.4 3.4 3.1 3.5United Kingdom 0.6 1.5 3.1 4.4 4.7 5.0Others 0.8 1.5 3.0 6.0 6.9 8.0Total W. Europe 9.7 21.8 33.1 28.9 29.6 32.6

Exports

Belgium 4.1 4.2 7.2 3.9 3.9 3.5France 1.6 1.4 0.5 0.4 0.3 0.25Germany 1.1 0.4 0.9 0.6 0.5 0.35Italy 0.5 0.4 0.2 0.4 0.6 0.45Netherlands 1.6 1.3 3.6 2.8 2.9 1.8United Kingdom -- 1.2 0.2 1.0 1.1 1.2Others 3.5 5.8 5.8 3.8 2.8 2.6Total W. Europe 12.4 14.7 18.4 12.9 12.1 10.15

Net ImportsBelgium (1.7) 0.7 2.2 -- 0.5 1.2France -- 1.7 2.2 2.0 3.3 3.65Germany 0.1 2.4 2.1 0.6 1.6 2.25Italy (0.1) 1.3 2.3 5.7 4.1 4.45Netherlands 1.1 5.0 5.8 0.6 0.2 1.7United Kingdom 0.6 0.3 2.9 3.4 3.6 3.8Others (2.7) (4.3) (2.8) 2.2 4.1 5.4Total W. Europe (2.7) 7.1 14.7 16.0 17.5 22.45

Source: Issue no. 18 of Addendum to the Polynews, March 2002 of the European Association for Textile Jute, Polypropylene and Polyolefin

39

Western European Trade in Polypropylene Woven Sacks

Figure 7.1:Western European Import trend in Polypropylene Woven Sacks


Figure 7.2:Western European Export trend in Polypropylene Woven Sacks


Figure 7.3:Western European Net Import trend in Polypropylene Woven Sacks

40


The above three charts provides data on imports, exports and net imports data of

polypropylene woven Sacks for 1975,1980,1985,1998,1999 and finally 2001.

Compared with 1998, the statistics show a 2 percent increase in imports, and a 6

percent decrease in exports in 1999. Net imports showed a 9 percent growth. Lastly

compared with 1999 the statistics show a 10 percent increase in imports, and a 16

percent decrease in export. Net imports showed a 28 percent growth. So the above

three charts make it apparent that demand of PP Woven Sack is increasing rapidly in

the West European countries.

Sources of imports of Polypropylene Woven Sacks into the EU countries

41

Figure7.4:Import analysis on year 1998 of Polypropylene Woven Sacks in EU countries





42


The Far East and India are still the main sources of supply of woven polypropylene

sacks. Since the last study, India has now replaced China as the largest source for

woven PP sacks. The above charts, illustrates the emergence of other Far East

countries such as Indonesia, Vietnam and the Philippines. In 1999, imports from

Indonesia and Vietnam increased by 20 and 16 percent respectively, whereas

imports from China fell by 30 percent. In 2001, import from Indonesia, Vietnam and

China increased by 8, 14, and 11 percent respectively. Reasons behind the increase

in import from China this time was the improvement of sack’s quality regarding

environmental parameters. The main reason for a decline in imports from China in

1999 was the imposition of an anti dumping duty of over 100 percent against a

conventional duty of 7.2 percent. Anti dumping duties were also imposed on imports

from India, Thailand and Indonesia but their levels were much lower compared to

those on China ranging from 4-58 percent. So, there is a good chance for

Bangladesh in the near future in PP Woven Sack exports if Bangladesh can maintain

the parameters from environmental quality perspective to avoid the imposition of an

anti dumping duty. As it has revealed from the above charts that most of the

countries that are exporting PP Woven Sack are from Asia. Where as being an Asian

country, Bangladesh’s initiatives regarding PP Woven Sack Export to overseas is not

43

that much impressive. So an in depth assessment is needed from the policy aspect

to overcome the prevailing situation.

Figure 7.7: Market shares Jute-vs-Polypropylene sacks in volume


Figure 7.8: Market shares Jute-vs-Polypropylene sacks in percentage

Source: Issue no. 18 of Addendum to the Polynews, March 2002 of the European Association for Textile Jute, Polypropylene and PolyolefinThe above charts have estimated for the total woven sacks market, the market

shares for Jute Sacks and PP Woven Sacks in the West European countries. The

Jute Sacks share has continued to decline and reached to approximately 15 percent

44

in 2001. Where as PP Woven Sacks share has continued to increase and reached to

approximately 80 percent in 2001.

Chapter Eight: Conclusion and Recommendation

From our previous discussions, we can draw the following conclusion:

45

Polypropylene Sacks are hugely in demand as they are used for packaging

cement, fertilizers, poultry feeds, wheat, rice, sugar and pulses, etc.

There is demand for Polypropylene sacks both locally and internationally

Polypropylene sacks are environment friendly because of the following features they have:

It is Ultraviolately Degradable

Production of Polypropylene sack is Energy recovering

It is a Long life Product

The low weight of the sack saves raw materials

It can be recycled

Furthermore Polypropylene sack can be made fully eco-friendly by adding Totally

Degradable Polymer Additives (TDPA) as well as to promote recycling process in full

instance.

Recommendation:

Now, in view of the above, it can be clearly recommended that Polypropylene sacks

could be used in all the industries that need woven sacks. Private entrepreneurs

should be encouraged to set up Polypropylene sack production facilities.

Polypropylene sacks at the same time deliver better performance and they could be

made fully eco-friendly. It should be perceived from another perspective that

Polypropylene Industry is becoming large industrial sector in Bangladesh

incorporating huge number of manpower and amount of investment. Yet, it is largely

directed to meet inland demand up while a sea of foreign market is waiting for

Bangladesh to step in. It is time to prepare this industry by assisting it by

incorporating Totally Degradable Polymer Additives (TDPA) to make its product more

eco-friendly to step in the western market like other Asian countries as far we can.

The outcome will surely be a new branch of earning foreign exchange like the

Garments sector, which will cover up the gap that we have had due to the declining

state of jute market. Moreover the government should come forward with incentives

for setting up these types of plants, and in the long run government can take policies

to abolish any other types of woven sack that are not environment friendly. To make

and sustain our GREEN BANGLADESH, this is the suggested course of action as

the logical way of progression.

Bibliography

46

1. Market Study of the Polypropylene Woven Bag Industry in Bangladesh-Joyjit

Deb Roy

2. http://www.fao.org/es/esc/common/ecg/

51423_en_Environment_Background.pdf

3. http://environment.nglf.gov.uk/faq.php

4. http://www.deh.gov.au/settlements/publications/waste/degradables/

biodegradable/appendixa.html

5. http://www.draft.biz/web/Environ.nsf/Pages/Environmental Facts

6. http://www.Goodfellow.com/script/web

7. http://www.britannica.com/ebi/article-206797

8. http://www.fibersource.com

9. http://www.polychemistery.com

10. http://www. Antioxidants Center - Basics on degradation.htm

11. http://www.starlinger.com

12. http://www.icis-subs.com/1132

47

http://www.britannica.com/ebi/article-206797

http://www.fao.org/es/esc/common/ecg/51423_en_Environment_Background.pdf

http://www.fao.org/es/esc/common/ecg/51423_en_Environment_Background.pdf

Annex

Questionnaire

48

When did the commercial production of Polypropylene Woven Sack started in

Bangladesh?

What were the reasons behind the development of this Industry?

What are the available polypropylene woven sack manufacturing machineries

(with the name of manufacturer and country of origin)?

Do industry owners have any preference on different brands? And why?

What is the profile of customers in terms of their need sets?

What could be the cost of plant establishment with respect to size of product

and sector?

What are places, where the industries are located?

Available list of P.P.Woven Bag Manufacturers in Bangladesh?

Estimated production capacity per day/month/year

Estimated cost of setting up plant

Estimated cost of machinery

Common sources of raw materials?

Cost of raw materials (per KG/MT)

Estimated manpower

Bag size, weight and price for different products such as cement, fertilizer,

animal food, sugar, flour, rice, salt, chemicals

How far the cost of P.P. granules fluctuates/MT during the price fluctuation in

the international market?

What is the present state of raw materials availability?

Has the Government taken any initiative regarding reduction of custom duty

on P.P. raw materials previously?

What are the present policies of the Government regarding P.P. Industries?

Is there any Reuse/Recycle Market of P.P. Woven Sack?

Who are the Operators of this Reuse/Recycle Market?

How they are performing this job?

Estimated present market demand

Projected market demand (Would be estimated through growth rate)

Estimated domestic production of P.P. bag in Bangladesh

Import of P.P. bag

Is the P.P. woven sack eco-friendly?

Dose it degrade?

What sort of degradation process P.P. woven sack performs?

49

What are the positive features of P.P. woven sack from the environmental

perspective?

50

Picture 4.5:Stacking of Standard P.P. woven sacks in sack unit of Shah Cement Industries (20th September 2006)

Picture 4.6:Stacking of AD*STAR P.P. woven sack in sack unit of Shah Cement Industries (20th September 2006)

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Picture 4.7:Interior of Shah Cement Industries sack unit (20th September 2006)

Picture 4.8:Workers working in the Shah Cement Industries woven sack unit (20 th September 2006)

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Picture 4.9:Stacking of used P.P. woven sack in a whole-saler shop at Khaer-Patti of Nitaiganj of Naryanganj (20th September 2006)

Picture 4.10:Interviewing of P.P. raw materials saler & woven sack producer at Hosni Dalan of Lalbagh (15th September 2006)

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Picture 4.11:Interviewing a retailer of used P.P. woven sack at Panghat of Lalbagh (17 th

September 2006)

Picture 4.12:Panghat of Lalbagh of Old Dhaka (17th September 2006)

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Picture 4.13:Whole-saler shop of used P.P. woven sack at Imamganj of Lalbagh of Old Dhaka (17th September 2006)

Picture 4.14:Visiting of a Whole-saler godown of used P.P. woven sack at Soaryghat of Lalbagh of Old Dhaka (17th September 2006)

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Picture 4.15 Interviewing a Whole-saler of used P.P. woven sack at Imamganj of Lalbagh (17th September 2006)

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P.P. Sack Thesis_ee

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Transcript of P.P. Sack Thesis_ee