Singer's new plant to reduce reliance on imports, boost profitability

Singer Bangladesh has started commercial operation of its new home appliance manufacturing plant, aimed at strengthening its position in the fast growing market.

The Bangladesh Economic Zones Authority (BEZA) on Monday approved the operation of the plant at Araihazar in Narayangonj, according to a stock exchange filing on Tuesday.

Spanning 135,000 square meters, the new plant will be manufacturing refrigerators, television sets, washing machines, air conditioners and other major appliances for the local market.

"By producing over 90 per cent of its products locally, the new plant will cater to the Bangladeshi market while positioning Bangladesh as a regional hub for consumer durables in the medium to long term," said the company in a statement.

Currently, Singer has a manufacturing unit at Hemayetpur in Savar, producing 52 per cent of its products locally. The Savar unit will be shut down, with the new plant becoming fully operational.

The initial annual capacity of the plant is 1.5 million units of refrigerators, television sets, washing machines, air conditioners and other major appliances, which is expected to strengthen Singer's position in the market.

The increase in local production is likely to improve Singer's profitability margins, said EBL Securities in a recent analysis, adding that the company would also avail of tax exemptions for local production.

Singer Bangladesh is one of the largest retailers of consumer durables in Bangladesh, with 463 retail stores across the country, alongside more than a thousand dealer shops.

Singer, which began its journey in 1979 with sewing machines and eventually turned into the largest household name for home appliances and television sets in the country, fell behind in the race with local competitors in the 2010s. The emerging popularity of locally-made products brought Waltor at the forefront of the refrigerator and television markets.

Turkish company Beko acquired Singer's 57 per cent stake in 2019. Since then, Beko invested $146 million in Singer Bangladesh, including in this "state-of-the-art" home appliance facility.

The new facility will not only boost Singer's manufacturing capacity but also strengthen its market share, said Fatih Kemal Ebiçlio?lu, president of Consumer Durables Group at Koç Holding, in a statement while inaugurating the plant.

Arçelik is the parent company of Beko and the flagship company of Koç Holding.

"Over the past 10 years, Beko has invested nearly $600 million across the region with Bangladesh emerging as one of the most investment-friendly and promising markets," said Mr Kemal.

South Asia plays a pivotal role in the global growth strategy with its strategic location, young and energetic workforce, and rapid urbanization.

"We have introduced Beko's global expertise to improve the consumer durables industry and enhance the lives of Bangladeshi people.

"We believe that it [Singer] will serve as a benchmark for others exploring opportunities in this vibrant region," said Mr Kemal.

M H M Fairoz, managing director and CEO of Singer Bangladesh, said, "With a vision to establish Singer Bangladesh as one of the leading brands in the country, we are leveraging our global expertise to contribute to the growth of the consumer durables industry and improve the lives of the Bangladeshi people."

The plant will develop a robust local supplier ecosystem, significantly reducing dependence on imports in the sector. "Plans are also underway to export products to neighboring countries in South Asia, further solidifying Singer's role in the regional market," added Mr Fairoz.

Financial Performance

Singer Bangladesh suffered a loss of Tk 490 million in 2024, owing to a substantial increase in finance costs.

Despite the losses, the board declared a 10 per cent cash dividend for 2024, down from 35 per cent for the year before.

However, Singer posted an impressive 615 per cent growth in profit to Tk 522 million in 2023, as the company managed to offset some of the costs by increasing product prices.

Currently, Singer is competing with Walton, with a 12 per cent market share in the refrigerator market and 11 per cent in that of television.

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