Tasnimul Hasan Ruhi

Mr. Shahjahan Mazumder is the founder of Everest Toys Industries Limited and the president of the Bangladesh Toy Merchants, Manufacturers and Importers Association (BTMMIA). He has been working in the toy industry since 1978 and has worked throughout his life for the development of the toy industry in Bangladesh. Team MBR was in a conversation with Mr. Shahjahan Mazumder and was fortunate enough to receive his take on the toy industry in Bangladesh.

Tasnimul Hasan Ruhi: During the period July 2021-April 2022, toy exports accounted for 29% of total plastic exports. Also, toy exports have experienced a cumulative average growth rate of 24%. What are the factors, in your opinion, contributing to this phenomenal growth in the toy industry?

Shahjahan Mazumder: The heart and soul effort of this sector’s young entrepreneurs is a significant contributor to the industry’s success. Their ambitions are in line with, if not ahead of, those of overseas toy producers. These young minds are sometimes working for 18 straight hours in their factory. I can mention several toy manufacturing entities that started their businesses from scratch. Most of them started with a mere capital of around BDT 5 lakh. However, now these businesses are worth crores. They achieved tremendous success owing to the large margins when they first started out, but this is no longer sustainable due to rising market rivalry.

Tasnimul Hasan Ruhi: Educational toys are becoming more popular among parents as an alternative to more conventional playthings. How are toy manufacturers planning to grab the growing opportunities in this niche?

Shahjahan Mazumder: Most toy manufacturers look up to China, as they are the global leader in this sector. In the last few years, we have seen China shift its focus toward educational toys. However, it is more convenient for us to produce educational toys that are cheap and durable so that parents can easily replace or fix those without breaking the bank. Unfortunately, we have not been able to visit China recently to study their market physically due to the increased exchange rate and overall price of products in the Chinese market. However, we are planning to capture this niche, as adapting to consumer preferences will help us make the industry sustainable.

Tasnimul Hasan Ruhi: Manufacturing toys generate plastic waste, and burning them releases toxic gases. Would you kindly share the measures taken in the production process that address these sustainability concerns?

Shahjahan Mazumder: Yes, it is true that plastic is detrimental to the environment and our mother planet. Considering this fact, we try to use plastic toys made from top-grade plastic granules, so they inherently produce fewer toxins. Also, we are more focused on recycling plastic, which is more cost-effective and environmentally friendly. Then again, the big factories have specialised production methods to reduce the amount of these toxic gases, which the small factories are unable to do. In collaboration with the government, we are trying to establish a separate toy manufacturing and sales zone that will be able to mitigate all these risks.

Tasnimul Hasan Ruhi: Toys made in Bangladesh have already made their way to both Europe and North America. What actions should exporters of toys take to ensure they maintain their competitive edge in those markets?

Shahjahan Mazumder: I have been working with toys since 1978, and now my life revolves around this industry. I have seen other developed countries making strides in this sector because they consider it an important contributor to their economies. I have received proposals from China and Hong Kong to establish their production plants in Bangladesh due to the availability of cheap labour. But to implement their investment plan, we need to first address the issue of the bureaucratic maze that deters investors from Bangladesh. Generally, to export toys to European countries, two safety certifications are required. They are EN 71 and ICTI. The machines and facility layouts in our country are not ISO certified. So, producing export-quality toys is still a distant dream for the majority of the industry participants. I am not personally connected with toy exporters from Bangladesh. But I can say that they are joint ventures with companies from Hong Kong, Vietnam, and other countries. They already have a foreign customer base, which the local toy producers lack.

Tasnimul Hasan Ruhi: The pandemic has caused a significant amount of damage to the toy sector. What methods have you put in place so that you may continue to make a profit in this sector?

Shahjahan Mazumder: The pandemic has taught us many things that have helped us turn around and make a profit after those painstakingly dull months. The producers had no capital to buy raw materials, let alone pay the rent for production facilities and utilities. It has made many suppliers and producers leave the sector, which has put a dent in the industry. Now that things are back to normal, we’re putting more effort into adapting to the changing market and using technology like e-commerce websites and social media to get more attention.

Tasnimul Hasan Ruhi: 90% of the local demand for toys is being met by local manufacturers. Would you kindly share the roadblocks that the industry is facing to meet the entire demand?

Shahjahan Mazumder: One of the major roadblocks is the lack of skilled workers in our country. In countries like China and Taiwan, there are specialised training centres to train the workers in the toy sector, which our country lacks. In this regard, the government should invest in the training of workers in this sector so that they can return and contribute to the improvement of the sector.

Tasnimul Hasan Ruhi: A drop in sales has been observed due to inflationary pressure and the US dollar crisis, causing an interruption in imports of raw materials. How are toy manufacturers planning to address this issue?

Shahjahan Mazumder: As you know, inflation has been decreasing slowly but surely since it peaked in August 2022. We, the toy manufacturers, are purchasing raw materials at inflated prices, though in less quantity than before. But we have trust in our economy that the inflation will reduce further, returning to the previous state, making it easy for us to take this sector to new heights.

Tasnimul Hasan Ruhi: You are the founder of Everest Toys, and you are serving as the president of the Bangladesh Toy Merchants, Manufacturers, and Importers Association, both of which have given you a wealth of knowledge in this sector over the years. Throughout all these years, what difficulties have you encountered that are specific to this industry?

Shahjahan Mazumder: The environment can make or break an industry. As elders, we are responsible for creating a better environment so that our successors can take over the industry and make it flourish more than before. We are expecting that the government will consider the toy manufacturing industry as another priority industry, like the ready-made garment industry. I have been working in this industry for so long, and I have seen it grow over the years. If there had been a separate industrial zone for toys, which requires direct government initiative, this growth could have been accelerated. I hope the new minds will be able to bring about the change we could not and make toys one of the largest export sectors in Bangladesh.