Absence of monitoring authority holding back 'Made in Bangladesh' elevator goal
In an interview with The Business Standard, Managing Director of Eltech Engineering Kamal Hassan discusses how and why he entered the elevator industry, the current state of the market, what is holding back the industry from becoming self-reliant, and the market’s future potential
![Sketch: TBS](https://www.tbsnews.net/sites/default/files/styles/big_2/public/images/2024/07/14/kamal_hassan.png)
Eltech has been in the elevator business since 2001. What inspired you to get into this business this early on, when elevators and escalators were not so common in the country?
Well, it was a vision, you may say. Since graduating in EEE from BUET, I dreamed of being an employer instead of being an employee. Though I started my career in the electronic industry, I observed a new trend in a sector previously not that prominent — construction and real estate development industry in the early 90s to cater to the accommodation needs of people entering the capital city.
This trend started increasing demand for elevators. Incidentally, around that time, I got a breakthrough to work in an globally reputed elevator company overseas.
After a few years, on my return home, I found the elevator industry in good shape and realised there is still scope to contribute and participate as a player in this sector. Also, this business warrants involvement of quality products, competent installation and a quality maintenance team; these requirements strongly attracted me to this sector. This is a business where one needs to deal with people from all walks of life, which also fascinated me.
Well, here is the end result: I have been in the industry for the last 23 years!
In which building did you install your first elevator?
Our first elevator was supplied a few years before we started dealing with Shanghai Mitsubishi elevators; a building in Dhanmondi Road 8 bought the first European elevator from Eltech. Our first commercial elevator was installed in a building in Sat Masjid Road, Dhanmondi.
After Eltech started collaborating with Shanghai Mitsubishi Elevator Co Ltd, the first elevator was installed in a high-end residential project in Banani in the year 2005.
Do you only sell elevators from Shanghai Mitsubishi Elevator Co? What sets these elevators apart from other brands in the market?
Shanghai Mitsubishi Elevator is our premium brand operating in the top-tier market segment. Shanghai Mitsubishi is a joint-venture company of Mitsubishi Elevators, Japan. Their strength is in-house manufacturing of all key components like motor, controller, motor drive, automatic rescue device, door operators, door mechanism, etc. which ensures better quality control and quality assurance of their elevators. Also, Mitsubishi's ownership and participation has directly contributed in targeting and attaining the highest quality standard.
The factory has incorporated the most modern and efficient manufacturing equipment and machinery from around the world. This is the single largest elevator manufacturing plant, having a production of over 125,000 units per year.
This company and brand is the most dominant player in China, which is the biggest elevator market in the world. It maintained the number one elevator supplier spot in China for over 15 years. The combined Japanese technology and Chinese technical competency has given Shanghai
Mitsubishi elevators a clear advantage over other elevators in the range.
For other vertical transportation challenges where there are different constraints and difficulties, we have a company called TECHEDGE Limited that provides specialised products with engineering solutions. TECHEDGE has associations with some competent companies in Europe and China.
Majority of the elevator demand in Bangladesh is met through imports. What do you think must be done to reduce the import dependency and move towards local assembling and manufacturing?
For local assembling and manufacturing, we must have government regulations and set standards so that quality and safety of elevators can be ensured. A few companies have come forward with 'Made in Bangladesh' tags mostly to take tax advantages and other incentives. In reality, these are just glorified workshops doing metal sheet fabrications to make elevator cabins, door panels, brackets etc.
The major and key components like the elevator hoist machine, door operator, controller and motor drives, etc are still being imported by them. Question is, can we tag this type of mixed supplies as manufacturing and claim these to be 'Made in Bangladesh'? Another important question is:
What manufacturing and safety standards are being adopted by them as we are yet to have approved manufacturing standards?
As we can see, even to produce and market bottled water, drinks or packaged snacks like crackers etc, we need to have authorisation and approval from BSTI. Whereas a highly technical product with loads of safety concerns like elevators are being assembled or manufactured and marketed without proper authorisation and certification.
Definitely, local manufacturing of elevators should be encouraged to release pressure on foreign currency and to create employment for more people. But that needs to be done after acquiring proper production and technical competency and after having proper regulatory and certification authority.
What are the biggest challenges currently facing the elevator industry?
The challenges are manifold.
First and foremost, we do not have a well defined regulatory and monitoring authority for this sector who shall set standards, inspect for safety and issue certificates for regular use of elevators by the public. Due to this, there exists chaos in the sector and many incompetent people or business houses have entered the industry.
The second challenge is more related to operational hindrances as duty, tax, VAT structures are frequently adjusted which affects the business directly. Also, the recent drastic devaluation of Taka against USD and import complications due to shortage of foreign currencies have made business operations a bit difficult.
What are some of your most iconic elevator installations?
Iconic elevator installations require iconic projects like high-rise buildings where express high-speed, big capacity double-deck, etc. special design elevators can be installed. Good thing is that the field for such projects is being created lately as about 40-storied mid-rise building construction has started in Dhaka. We already have a recently declared commercial hub in Tejgaon, where mid-rise constructions are being permitted.
The commercial district of Purbachal and Jalshiri shall have skyscrapers (height 150m and above) in the near future. We definitely shall see iconic elevators of very high speed and extraordinary features in the coming days, and invariably, we shall have our fair share in that segment as well.
As of today, Eltech Engineering's most iconic project can be considered the highest-speed elevators installed in Bangladesh. Renaissance, Gulshan Dhaka has three unit 4.0 mps speed Shanghai Mitsubishi elevators. Also, 37 storied Trade Intercontinental Tower by Innstar in Tejgaon has eight units of 3.5 mps speed Shanghai Mitsubishi elevators.
In terms of most elevators in a single project, Eltech has supplied 56 unit Shanghai Mitsubishi brand MRL elevators to the Rupayan City project. Eltech has also supplied elevators to many important infrastructures like Summit Meghnaghat Power Plant, Unique Meghnaghat Power Plant, Payra Thermal Power Plant, National Data Centre of High-tech Park, etc.