THE OPPORTUNITIES AND BARRIERS OF BICYCLE EXPORT FROM BANGLADESH: A STUDY ON M & U CYCLES LTD, MEGHNA GROUP

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The cycle industry, M & U Cycles Ltd is a sister concern of Meghna group was established in 1982 in Gazipur, Dhaka. At Present 600 nos. or above worker works in this M & U Cycles industry. In The Last year from this M & U Cycles industry total 1, 30,000 Pcs bicycle assembled/produced and exported to different countries.The Product of Bicycle which exports from Bangladesh has great opportunities to earn foreign exchanges i.e. foreign currency can be used to develop this country. Now a Days, as per we know the total annual turnover of M & U Cycles Ltd only from export 30 million USD per year .Thats why this is great opportunities by exporting bicycle from Bangladesh.While my study for preparing this internship report it seems to me that particular sector (Bicycles) is very much facing the financial problem. The loan interest rate is too high for the sector to accomplish export processing, and also that sector is very much depended on import of raw materials. It seems to me that M & U Cycles Ltd, is always try to get their sustainable growth in the competitive market. In very recent time the government of Bangladesh has taken some significant decision to face the situation of economic recession. The governments takes a package of Tk 25000-30000 crore in order to priorities protection of the export oriented industries, agricultural growth, employment generation and social security to offset the negative effects of the global economic crisis. They also recommended creation of an export stabilization fund, retention and skill development for returning migrant workers, infrastructure development and simplification and streamliner of rules and procedures to help entrepreneur. According to IMF gradation, Bangladesh ranked as the 48th largest economy in the world in 2008. The economy has grown at the rate of 6.7%. The Bicycles industry sector must be played a very significant role there. In spite of economical recession of the world as well as in the country, M & U Cycles Ltd is one of the participators of earning foreign currency in Bangladesh. In the package are also measures like adoption of effective steps to provide necessary scope and facilities to workers and employees to perform social responsibility by management to fulfill compliance with standards set by the foreign buyers, reducing import dependence through ensuring supply of quality local raw materials in production of Bicycle exports.