Bangladesh’s cable manufacturing sector is experiencing a significant contraction, with the market shrinking by approximately 25% over the past two years amid declining public infrastructure spending, a slowdown in the housing sector, and rising borrowing costs. Industry insiders estimate the market value has dropped from more than Tk12,000 crore in 2022 to between Tk8,000 and Tk9,000 crore, forcing several factories to cease operations and leaving many workers unpaid.
More than 30% of demand relies on government projects, which have seen a decline of 50-60% over the last two years, according to Md Rafiqul Islam Rony, director (marketing) of BBR Cable Industries. Concurrently, demand from the housing sector has fallen by 30-35%. Despite rising production costs, manufacturers have been unable to raise prices, further squeezing margins.
The industry had previously shown strong growth, expanding from an estimated Tk2,000 crore in 2008 to over Tk12,000 crore by 2022, driven by electrification, industrialization, and public investment. However, recent economic headwinds have reversed this trend. Raju Ahmed, Head of Business at Walton Cables, highlighted that the industry’s dependence on imported raw materials such as copper and aluminum, combined with slower sales and higher financing costs, has created substantial working capital challenges.
Several companies have been severely impacted. Paradise Cables, once a dominant player supplying about 40% of domestic demand and exporting to 24 countries, halted production in December 2024. Managing Director Mobarak Hossain cited loan defaults, difficulties securing letters of credit, and increased competition as contributing factors. Workers at Paradise Cables have reportedly been unpaid for 25 to 30 months, while AB Bank has moved to auction the factory over approximately Tk200 crore in outstanding dues. BBS Cables also reported a net loss of Tk86 crore in fiscal year 2025, a stark reversal from its Tk145 crore profit in 2019, with company officials attributing the downturn to lower orders, lost government contracts, import challenges, and rising financing costs.
Industry representatives point to high bank interest rates ranging from 12% to 16%, depreciation of the Bangladeshi taka against the US dollar, and restricted access to letters of credit as additional pressures. Other firms such as Partex Cables, Citizen Cables, Golden Cables, and Sun Cables have similarly faced financial difficulties and operational disruptions.
The shrinking market has intensified competition, favoring larger companies with stronger financial positions and broader distribution networks. BRB Cable Industries maintains a leading market share exceeding 30% and employs over 10,000 people. RN Paul, Managing Director of RFL, noted that smaller manufacturers struggle to maintain quality and secure necessary financing, while larger conglomerates are expanding. For example, Bizil Cables, part of the PRAN-RFL Group, now commands about 30% of the power-cable market and 25% of the domestic-cable segment following significant investments in new production facilities.
Other developments include Walton’s entry into cable manufacturing in 2019, initially to support its appliance business, with subsequent expansion into exports and product quality enhancement. The AkijBashir Group announced a Tk300 crore investment plan in January 2026 to produce a range of cables, aiming to create around 500 jobs.
Walton Cables’ Raju Ahmed anticipates continued market pressure for one to two more years, but sees potential recovery aligned with the resumption of infrastructure projects and a shift toward underground and medium-voltage power transmission. However, concerns remain that further capacity additions may exacerbate overcapacity and price competition.
Bangladesh continues to rely heavily on imports for specialized and medium-voltage cables, meeting only about 20% of medium-voltage demand through local production. Industry sources estimate imports account for 30-35% of domestic consumption. Average duties on imported raw materials stand at approximately 40%, with finished cables subject to about 45%, though rates vary.
Another challenge stems from low-priced, non-branded cables, which comprise a market segment valued at over Tk1,000 crore, raising concerns about standards and safety. Md Anisur Rahman, president of the Bangladesh Electrical Cables Manufacturers Association, emphasized the difficulty in controlling unauthorized production and imports, noting that many consumers opt for cheaper products without verifying compliance with technical specifications.