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

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

1
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

2
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 and Findings from the Survey
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

3
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.

4
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

Category No. Of Companies

Interviewed
PP Sack Producers
Woven Plastic Sack producers 09
PP Sack Users/Buyers
Cement Producers, either 14 Figure 2.1:Ploting of sample
produce or purchase for own size covered in the survey
consumption.
Animal Feed Producers, either 08
producing or purchasing for
own consumption.
Flour Producers, producing or 02
purchasing for own
consumption
Total 33

Source: BMG BD 2005

Cement Industry Animal Feed Industry
Flour Industry
Source: BMG BD 2005

5
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

6
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

7
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.

(Source: Britannica Student Encyclopedia. 2006)

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.

8
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.
(Source: Schoolscience.co.uk 2006)

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.
(Source: Ecosafe Biodegradable Plastic, Copyright ©2000-2006 Plastics Solutions
Canada Inc)

9
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. (Source: Schoolscience.co.uk 2006)

Picture 3.1:Polypropylene granules

10
Chapter Four: Present Market Scenario of Polypropylene
Woven Sack in Bangladesh and Findings from the Survey

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.

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

11
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.

12
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

Jayson
United Fibre Sino Bangla Miracle Group
Company GQ Industries Alliance Bag Hussian Shovan Woven
Industries Industries Industries Of
Name Ltd. Limited Bags Limited Bag Mfg. Co. Ltd.
Ltd. Ltd. Limited Compan
ies
PP, Paper and
PP Sack PP Sack PP Sack PP Sack PP Sack PP Sack PP Sack
Business Type also Shopping
Producer Producer Producer Producer Producer Producer Producer
Bags Producer
Bag Type
(AD*STAR& Standard Both Both Standard Both Standard Both Standard
Standard Sack)
Production cost
(not disclosed by the respondents)
per unit
Yearly
3,65,000 4,38,00,000 8,40,000 3,65,00,000 1,44,00,000 1,50,000 1,3500000 72,00000
Production
pcs pcs pcs pcs pcs kg Pcs pcs
Capacity
13 (Double 13-14 (Double 13-14 (Double ply)
13 (Double
Unit selling Ply) ply) 9.5 – 11 (Single
11 Ply) 11 12 13
price (Tk.) 10 (Single 9.5 – 11 Ply)
10 (Single Ply)
Ply) (Single Ply)
Bag Size 25/50, 22/44 25/50, 22/44 - W- 25; L- 50 19*29 &22*38 W- 25; L- 50 24/44
Bag Weight 100-110gm 100-110gm - 110-115 gm - 110-120 -
Raw Material 80% - 90%
80% - 90% 90% 80% - 90% 80% - 90% 9.00 tk 9-10 tk
Cost Per Bag
Korea, Korea,
China, India,
Raw Material Thailand, Thailand,
Saudi Arabia, China, India China, India China, India Australia China, India
Source Taiwan, & Taiwan,
Malaysia
India, China & India
Plant Setting
(not disclosed by the respondents)
Cost
Plant
Manufacturer GCL LOOM Yarn
Rising -
Company/ MACHINE Frang
Brand
Source: Sample survey BMG BD 2005

13
Table 4.1: Findings from the Survey, Polypropylene Woven Sack Producers (Continued)

Shovon Jayson
GQ United Fibre Sino Bangla Miracle Hussian
Company Alliance Bag Woven Group Of
Industries Industries Industries Industries Bags
Name Limited Bag Mfg. Companie
Ltd. Ltd. Ltd.* Limited Limited
Co. Ltd. s
Country Of
India (before:
origin, India Taiwan - Greece China Taiwan China
China)
Machinery
Man Power
150 - - - - -
Required
Interviewee
Comments on Competitive Competitive Competitive Good Competitive Competitive Good Competitiv
Starlinger market market market prospect market market Prospect e market
Machinery
Source: Sample survey BMG BD 2005

14
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

15
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

Price range of Bags

15.00
14.00
12.00 11.00
10.00
9.50
Taka

5.00

0.00
From To
Single ply 9.50 11.00
bags
Double ply 12.00 14.00
bags

Single ply bags Double ply bags

Source: BMG BD 2005

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.

16
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

17
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”. (Source: Survey of this Research)

18
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

Yearly Unit
Business Bag Interviewee Comments
Company Name Demand Supplier Bag Size Price
Type Weight (ADSTAR Bag)
(pcs) (Tk.)

Russel Industries Cement Sino Bangla, Simly 12.00

73,00,000 25/50 115gm Good Prospect
Ltd. Producer Industries, Shovon -14.00
Elephant Brand Cement Maghna Group,
72,00,000 24/44 110gm 11.00 Good Prospect
Cement Producer Sinobangla, Shovon
Cement 11.00 -
Crown Cement 60,00,000 Maghna Group 25/50 110gm Good Prospect
Producer 12.00
Metropolitan Cement Maghna Group, 12.00 -
15,00,000 25/50 110gm Good Prospect
Cement Ltd. Producer Shovon 13.00
Heidelbergceme
nt Bangladesh Maghna Group,
Cement 22/44 100gm 9.50 -
Ltd. (Scan 2,92,00,000 Sinobangla, S.Alam, Good Prospect
Producer 25/50 160gm 13.00
Cement/Ruby Shovon
Cement)
Cement Sinobangla, Maghna L- 112 12.00
Nitol Cement 11,50,000 110gm Good Prospect
Producer Group W-60 -14.00
Cement Sinobangla, Maghna L- 112 12.00
Niloy Cement 10,00,000 110gm Good Prospect
Producer Group W-60 -14.00
Cement Have not started production yet. Will start from September-2005.
Lafarge Cement Good Prospect
Producer Estimated yearly demand (as per interviewee): 20 million pcs.
Confiedence Cement L- 112
48,00,000 Local Market 160gm 13.00 Bad Prospect
Cement Ltd. Producer W-60
Source: Sample survey BMG BD 2005

19
Table 4.2: Findings from the Survey Polypropylene Woven Sack Consumer (Continued)

Yearly Unit Interviewee

Business Bag
Company Name Demand Supplier Bag Size Price Comments
Type Weight
(pcs) (Tk.) (ADSTAR Bag)

Olympic Cement Cement Shovon, Sinobangla, L- 112

72,00,000 160gm 13.00 Good Prospect
Industries Ltd. Producer Seven Rings W-60
Cement Shovon,GQ Industries L- 112
Premier Cement 1,08,00,000 160gm 13.00
Producer Ltd. W-60
Meghna Cement
Contacted. Interviewee informed the researcher that he will come back with the answers, after approval of
(Basundhara
top management. Follow-up done by researcher. Reply not received till date.
Group)
Unique Cement Cement L- 112
90,00,000 Magna Group 160gm 13.00 Good Prospect
Industries Ltd. Producer W-60
Shah Cement
Shah Cement Cement L- 112
2,40,00,000 Industries Ltd. (Sack 160gm 13.00 Good Prospect
Industries Ltd. Producer W-60
Unit)

General Flour Flour L- 112

8,00,000 Super Thai Plastic Ltd. 110gm 13.00 Good Prospect
Mills Ltd. Producer W-60
Nurani Flour Contacted. Interviewee informed the researcher that he will come back with the answers after approval of
Mills Ltd. top management. Follow-up done by researcher. Reply not received till date.

Source: Sample survey BMG BD 2005

20
Table 4.2: Findings from the Survey, Polypropylene Woven Sacks Consumer (Continued)

Yearly Unit Interviewee

Business Bag
Company Name Demand Supplier Bag Size Price Comments
Type Weight
(pcs) (Tk.) (ADSTAR Bag)

Animal
Bangla Poly, Ab Oven
Kazi Farms Ltd. Feed 24,00,000 22/44 100gm 9.50 Good Prospect
Bag, Sun Yead
Producer
Animal
Aftab Bahumukhi Alliance Bags ltd., L- 112
Feed 24,00,000 110gm 13.50 Good Prospect
Farms Ltd. Miracle, Sinbangla W-60
Producer
Animal 25/50 110gm 13.50
Quality, Feed
Feed 3,65,000 Alliance Bags Limited 70- Good Prospect
Ltd. 22/38 8.00
Producer 75gm
Animal
Mondal Agro Bengal Poly Bags, GQ L- 112
Feed 6,00,000 110gm 13.00 Good Prospect
Industries Ltd. Industries Ltd. W-60
Producer
Animal
Lion Feeds 12.00 -
Feed 12,00,000 Rails Agro 25/50 110gm Good Prospect
Limited 13.00
Producer
Animal
12.00 -
C.P.Bangladesh Feed 6,00,000 Local Market 25/50 110gm Good Prospect
13.00
Producer
Animal Maghna Group, 24/44 110gm 15.50
Paragon Group Feed 10,00,000 Sinobangla, Miracle, Good Prospect
Producer Alliance Bags 20/33 85gm 11.20
Maghna Group,
Saudi Bangla Fish Feed 10.00 -
8,00,000 Sinobangla, Miracle, 24/44 110gm Good Prospect
Fish Feed Ltd. Producer 12.00
Alliance Bags
Source: Sample survey BMG BD 2005

21
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

22
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. (Source:Multi
Commodity Exchange, India, 2006)

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.

23
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

(Source: Survey of this Research)

24
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.

Recyclable
The 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.

25
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.

(Source: Business Management BD, Local agent of Starlinger)

26
Experience of PP Woven Sack Factory Visit

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

27
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)

28
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)

29
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.

30
Reuse/Recycle of Polypropylene Woven Sacks

Polypropylene Woven Sack

Manufacturing Industry

Primary Consumer of Resin/Yarn Left As

Polypropylene Woven Sack Byproducts

Purchased By
Collection Of Used
Scavenger From
Polypropylene Woven Sack
Polypropylene Woven
By Hawkers
Sack Curb-Market

Hawkers Sell To The Whole-Saler Of PP

Whole-Salers Woven Sack

Reshaping/Remaking PP Small Plastic Industry

Woven Sack By The Involved In
Whole-Saler Manufacturing Mug/Jar

Use Of Reshaped PP
Woven Sack By The
Secondary User

Often Collected by
Garbage Scavenger And
Garbage Graveyard
Sold To

Figure 4.2: Flow diagram of Reuse\Recycle of Polypropylene Woven Sacks

31
Findings

 While performing this research work my first intention was to explain why the
polypropylene woven sack industries are expanding with high pace and the
conceivable reason that I found behind this is the deteriorating state of jute
industry and its product through out the worldwide market. The substitute
product that replaced jute fiber is synthetic fiber whose impact ensured a
strong market for its products in Bangladesh.
 The expansion of Polypropylene Woven Sack Industries have not been
confined in/around the cities rather it has been expanded through out the
country even at thana level towns like Phulbari Dinajpur.
 As far as the factory setup is concerned it is found that although the
infrastructure of larger factories is almost satisfactory, there are strong
reasons to believe that factory/industrial establishment codes have not been
maintained properly in most large/small industries.
 It has been noticed that there is no such monitoring authority that will certify
the polypropylene granules that are used as raw material in these industries
are cent percent polypropylene and biodegradable.
 So there are strong reasons to believe that the industries are not using fully
polypropylene granule as raw material for their product.
 As a result it is observed that environmental assessment especially for
industries scattered in small towns is very difficult.
 During factory visit it was found that most of the labors, supervisors and even
assistant engineers engaged direct production are not that much aware of the
environmental perspective of their manufactured p.p. products.
 Above all it is found that related fiscal policies regarding this industry is very
hard to get due to incoherent bureaucratic system of Bangladesh.

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. (Source: Business Management BD, Local agent
of Starlinger)

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.m

For 36 million: 99 m x 42 m = 4138 sq.m

C) PRODUCTION COST PER BAG:

For 24 million: USD 0.15 – 0.16

For 36 million: USD 0.14 - 0.15

D) MANPOWER REQUIRED:

For 24 million: 102

For 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.
(Source: Business Management BD, Local agent of Starlinger)

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.
(Source: Antioxidants center-Basics on degradation, Copyright © 2005 SpecialChem
S.A.)

Polymers are remarkable materials that are used in millions of single use applications
for consumer, commercial, agricultural and industrial applications. Its volume is

36
increasing gradually worldwide. So the issues of the "wasteful use of diminishing
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.
(Source: Ecosafe Biodegradable Plastic, Copyright ©2000-2006 Plastics Solutions
Canada Inc)

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.

(Source: Ecosafe Biodegradable Plastic, Copyright ©2000-2006 Plastics Solutions

Canada Inc)

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.
(Source: Ecosafe Biodegradable Plastic, Copyright ©2000-2006 Plastics Solutions
Canada Inc)

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 4.7
France 1.6 3.1 2.7 2.4 3.6 3.9
Germany 1.2 2.8 3.0 2.7 2.1 2.6
Italy 0.4 1.7 2.5 6.1 4.7 4.9
Netherlands 2.7 6.3 9.4 3.4 3.1 3.5
United Kingdom 0.6 1.5 3.1 4.4 4.7 5.0
Others 0.8 1.5 3.0 6.0 6.9 8.0
Total 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 3.5
France 1.6 1.4 0.5 0.4 0.3 0.25
Germany 1.1 0.4 0.9 0.6 0.5 0.35
Italy 0.5 0.4 0.2 0.4 0.6 0.45
Netherlands 1.6 1.3 3.6 2.8 2.9 1.8
United Kingdom -- 1.2 0.2 1.0 1.1 1.2
Others 3.5 5.8 5.8 3.8 2.8 2.6
Total W. Europe 12.4 14.7 18.4 12.9 12.1 10.15

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

Import Trends

35
Belgium
30
France
25
Germany
20 Italy
Thousand Tons
15 Netherlands
10 United Kingdom
5 Others
Total W. Europe
0
1975 1980 1985 1998 1999 2001
Years

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

Figure 7.2:Western European Export trend in Polypropylene Woven Sacks

Export Trends

20
18 Belgium
16
France
14
Germany
12
Italy
Thousand Tons 10
8 Netherlands
6 United Kingdom
4 Others
2 Total W. Europe
0
1975 1980 1985 1998 1999 2001
Years

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

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

40
 Net Import Trends

25
Belgium
20 France
Germany
15
Italy
Thousand Tons
Netherlands
10
United Kingdom
5 Others
Total W. Europe
0
1975 1980 1985 1998 1999 2001
Years

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

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

1998 India

China

16% Indonesia

38%
13% Turkey

Philippines

10% Vietnam
6% 8% 9%
Manufactured by own or Imported
from other countries

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

Figure7.5:Import analysis on year 1999 of Polypropylene Woven Sacks in EU countries

1999 India

China

Indone sia
15%
9% Turkey
42%

Philippine s
12%
7% 7% 8% Vie tnam

Manufacture d by own or Importe d

from other countrie s

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

Figure7.6:Import analysis on year 2001 of Polypropylene Woven Sacks in EU countries

42
 2001
India

China

Indonesia
17%
37% 10% Turkey

Philippines
13%
8% 7% 8%
Vie tnam

Manufacture d by own or Importe d

from othe r countrie s

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

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

700
600
500
400
Million Tons Total Sacks in Million
300
PP Woven Sacks in Million
200 Jute Sacks in Million
100
0
1975 1980 1985 1986 1998 1999 2001
Years

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

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

100
90
80 Market Share of PP Woven Sacks %
70
60
Percentage 50 Market Share of Jute Sacks %
40
30 Market Share of Total Sacks %
20
10
0
1975 1985 1998 2001
Years

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

45
Chapter Eight: Conclusion and Recommendation
From the above detail discussion, we can come to this conclusion that polypropylene
sacks have become an essential part of cement, fertilizer, agro, wheat, rice etc
business fields and its demand is increasing day by day in huge quantity. Although
due to its organic composition these sacks, as wastage, are biodegradable, its
degradable process is going to create a tremendous ecological problem for
Bangladesh in near future if Oxo-biodegradation formula is not adopted during the
manufacturing time of polypropylene woven sack. Oxo-biodegradation for
polypropylene sacks, as opined, can easily be achieved by using the additives e.g.
TDPA during its manufacturing process. So we have to ensure the availability of
these kinds of additives and its use. If it is done then our manufactured polypropylene
woven sacks will not only be more eco-friendly but it also will achieve its status as an
exportable good since there is immense opportunity of exporting it to foreign market.

Recommendation:

Now, after assessing, evaluating, and observing this particular industrial sector I think
there are some measures, which should be taken and promoted for the betterment of
this industry from environmental perspective.

 Concerned government authorities BSRC, BCIC, DOE and other related

environmental organizations should carry out more elaborative researches
and experiment regarding the utility of TDPA or similar additives.
 Massive awareness among industrial bodies, directly involved with
polypropylene product manufacturing units, should be raised about the
biological impact of p.p. products.
 In this regard environmentalist should come forward enthusiastically.
 Government should enforce new laws and steps to confirm the use of p.p.
granules mixing with these additives during manufacturing polypropylene
woven sacks.
 Proper coordination is required among the environmental legislative group,
p.p. woven sack industry owner and the retailer, whole-saler of p.p. woven
sack reuse/recycle market to promote the reuse/recycle of p.p. woven sack in
high extent, so the volume of discarded sacks could be reduced.

46
 Bangladesh is a 3rd world country. So considering our socio-economic state
an elaborative cost-feasibility analysis is required to use such additives like
TDPA in our manufactured p.p. woven sacks
 The government should encourage and assist private entrepreneurs to enter
into international market for export purpose.
 Clearance from the BSTI (Bangladesh Standard Testing Institution) could be
obtained to promote use of such additives like TDPA
 In this regard taxation, customs, import-export laws should be reconsidered
and amendmentted through mutual understanding.
 Government should come forward with incentives for setting up new P.P.
plants for polypropylene sacks.
 Strict result oriented actions should be take to abolish any other type of
woven sacks which are not environment friendly to realize the motto of
GREEN BANGLADESH.

47
Bibliography

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

Roy,
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ANNUAL REPORT 2002, Project Funded By The United States Agency For
International Development And The Ministry Of Agriculture Of The Government Of
Bangladesh
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Kalliala, E.M., and Nousiainen P. 1999. Life cycle assessment. Environmental Profile
of cotton and poly-ester cotton fabrics. AUTEX Research J. 1, 8-20 (5/6/2006)

Interview with Mr. Joynul Abedin, MIS Manager, Business Management (Local Agent
of Starlinger), House –1/10(A), Ground Floor, Block-D, Lalmatia, Dhaka-1207,
Bangladesh
(Conducted on 17th September 2006)

The Environmental Impact Of Fiber Crops in Industrial Applications by Jan E.G. van
Dam and Harriëtte L. Bos.
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(5/6/2006)
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pendixa.html (4/6/2006)

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Dec. 2005  
http://www.britannica.com/ebi/article-206797 (8/12/2005)

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Fiber Economics Bureau
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Goodfellow Cambridge Limited, Registered office: Units C1+C2, Spitfire Close,
Ermine Business Park, HUNTINGDON PE29 6WR,Registered in England no.
1188162,VAT registration GB 212 8527 79
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Application
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49
Annex

50
Questionnaire

 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

51
 Is the P.P. woven sack eco-friendly?
 Dose it degrade?
 What sort of degradation process P.P. woven sack performs?
 What are the positive features of P.P. woven sack from the environmental
perspective?
 Do you know the use of additives like Totally Degradable Polymer Additives
(TDPA) and its functions?

52
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)

53
Picture 4.7:Interior of Shah Cement Industries sack unit (20 th September 2006)

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

54
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)

55
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)

56
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)

57
Picture 4.15 Interviewing a Whole-saler of used P.P. woven sack at Imamganj of Lalbagh
(17th September 2006)

58