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Department of Marketing

MBA [Evening] Program


Fall 2018
Internship Report
On

“Supply Chain of Brick Industry In


Bangladesh”

Submitted to:

Prof. Dr. Nasrin Akter


Dept. of Marketing, Faculty of Business (FBS)
University of Dhaka
Submitted By:
Ahmed Ali Foyez
ID - 417 35 034
Date of Submission: April 10, 2019
Letter of Transmittal
April 10th, 2019

Dr. Nasrin Akter

Professor,

Department of Marketing,

Faculty of Business Studies (FBS),

University of Dhaka

Subject: Submission of Thesis Report entitled “Supply Chain of Brick Industry In


Bangladesh”

Respected Ma’am,

It is a great pleasure for me to present the internship report on entitled “Supply Chain of
Brick Industry In Bangladesh” which is assigned to me. I believe that the knowledge, I
have gathered during the time span in the preparation of this report, will help me a lot to the
analysis present scenario of brick making industry in Bangladesh.

As I have prepared this report without any prior professional experience and by following
some articles, it is possible that there may have been some inadequacy. Your sympathetic
consideration is needed for any unintentional error in the paper. I am requesting you to be
kind enough to accept my report and oblige thereby.

Sincerely Yours,

Ahmed Ali Foyez

ID: 417 35 034

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Declaration

I, Ahmed Ali Foyez, hereby declare that the report titled, “Supply Chain of Brick Industry

In Bangladesh” is uniquely prepared by me as a requirement of the internship program under

the experienced supervision of Prof. Dr. Nasrin Akter.

I also declare that the report is prepared only for my academic requirements. This report has

not been submitted to any other places before. I also assure that this report has never been

submitted to any other universities.

Ahmed Ali Foyez

ID: 417 35 034

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Certificate of Supervisor

This is to certify that Ahmed Ali Foyez, a student of MBA (Evening) Program, ID-

41735034, successfully completed his internship report entitled “Supply Chain of Brick

Industry In Bangladesh”, under my supervision.

He has done his duty according to my supervision and guidance. He has tried his best to

complete this report successfully. I this this program will help him to build up his career in

future. I wish him success and prosperity.

Prof. Dr. Nasrin Akter

Dept. of Marketing,

Faculty of Business (FBS),

University of Dhaka

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Executive Summary

Bricks are a vital material for the construction process in Bangladesh. With the rapid

development of the economy, the construction of infrastructure has also increased. However,

the brick making industry is still using traditional technology although there are many

modern processes available. This report focuses on presenting an overview of supply chain of

this industry. In this report, brief description has been made on what types of brick kilns are

available in this country, and their advantages and disadvantages. A number of issues related

to supply chain of this industry and their potential solutions are also identified. Findings of

this report is compared with the footsteps of other countries in order to come up with possible

solutions of the problems encountered. An initiative by the government, public, and private

sector related to this industry to implement the strategic implications mentioned in this report

can come up with prosperous future toward contributing to the economy of Bangladesh.

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Table of Contents
Chapter-1: Introduction.......................................................................................... 1
1.2: Objectives..................................................................................................... 2
1.3: Methodology................................................................................................ 2
1.3.1: Design.................................................................................................... 2
1.3.2: Data Collection...................................................................................... 2
Chapter-2: Literature Review.................................................................................. 3
2.1: History of Brick Making................................................................................. 4
2.2: Brick Usage by Different Countries................................................................5
2.3: Brick Advantages and its Negative Impact on Environment...........................6
2.3.1: Advantages............................................................................................. 6
2.3.2: Negative Impacts on Environment..........................................................7
2.4: The production Process................................................................................. 8
Chapter – 3: Overview of Brick kiln Industry in Bangladesh.....................................9
3.1: Small Scale Operation................................................................................. 10
3.2: Regulations................................................................................................. 10
3.3: Types of Brick Kilns in Bangladesh...............................................................11
3.4: The Supply chain of Brick Kilns....................................................................13
3.4.1: Resource Collection..............................................................................13
3.4.2: Production Stage..................................................................................14
3.4.3: Storage and Distribution.......................................................................15
Chapter-4: Findings............................................................................................... 17
4.1: Problems.................................................................................................... 17
4.2: Barriers to Energy Efficiency in the BMI.......................................................19
4.3: Brick Making Industry in Foreign Countries.................................................20
Chapter 5: Implications and Conclusion.................................................................21
Scope for Future Studies.................................................................................... 22
Conclusion............................................................................................................ 23
Bibliography......................................................................................................... 24
Chapter-1: Introduction

Bangladesh is one of the fastest growing economies in the world and this growth has lead to

rapid development all over the country. Most of this development is structural work which is

highly dependent on fired clay bricks. There are more than 5000 brick kilns all over the

country (BUET, 2007). Most of these kilns use old technology such as BTK and FCK which

is highly energy intensive and cause severe pollution. Prior to 2004, most kilns in

Bangladesh, about 95%, were based on the 150 year old Bull’s Trench kiln (BTK)

technology. Most of these kilns since have been converted to Fixed Chimney Kilns or FCK.

However, FCK technology is still not much better for the environment. These old technology

causes most energy to be wasted because of improper firing methods which increases the cost

of production as well as pollute the air. The World Bank forecasts around 8% growth in

construction industry in coming years. This growth has to be supported by the Brick making

industry because of lack of other building materials such as stones. The rules and regulations

in this industry is not enforced properly. Latest reports suggest that nearly 2000 brick kilns

did not obtain clearance from DoE (The Daily Star, 2019). The Ministry of Environment,

Forest, and Climate change recently reported that 58% of the total pollution in Dhaka city is

caused by brick kilns (Dhaka Tribune, 2019). So it is high time that the industry is

revolutionized with modern technology. The FCK can be replaced with modern technologies

such as improved zig-zag kilns (IZK), Vertical Shaft Brick Kiln (VSBK), Hoffman kilns, and

Hybrid Hoffman Kilns (HHK). IZK is already being implemented by a joint project of UNDP

and DoE, Bangladesh since it is the most cost effective option for the kiln owners.

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1.2: Objectives

The objective of this study is to find:

 To understand types of brick kilns in Bangladesh

 To identify the advantages and disadvantages of different technology

 To explore the existing environment of the supply chain process

 The problems in the industry

 The paths other countries are following

 The potential solutions to the problems

1.3: Methodology

1.3.1: Design

This is a case study research. The study is focused on presenting the overall scenario of the

industry as well as identifying the problems. A number of recommendations are given in light

of the findings.

1.3.2: Data Collection

 Primary Source: The majority primary data has been collected using the internet.

Some data has been collected through direct and open interviews of industry relevant

personnel. A good portion of the data has been collected through direct observation.

 Secondary Source: All the secondary data was collected from the internet, published

journals, and research reports.

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Chapter-2: Literature Review

Saha, Rupayan & Rahman, Musfiqur. (2013), found in their study that the brick kilns in

Bangladesh cause a large portion of air pollution with the use of sub-standard century old

technology. A large number of kilns are illegal and use firewood for the burning process.

Bangladesh being the best country for investments in South Asia has lead to rapid

development that has increased the demand for bricks. The authors suggested the use of

modern technology can make this industry more efficient and less polluting at the same time.

The study focused on the joint project of United Nations Development Program and

Department of Environment, Bangladesh that is working to introduce green technology in

this sector. [ CITATION Rup13 \l 1033 ]

Rajonee & Uddin (2018), studied the impact of brick kilns on quality of soil nearby the kilns.

They evaluated the soil quality in the southern part of Bangladesh and found that the soil of

agricultural lands nearby increases the pH level of the lands. The pH level decreases with the

increase of distance from the kilns. They concluded that the kilns not only pollute the air, but

also decrease the quality of soil by reducing moisture and organic carbon content which is not

ideal for growth of plant life. [ CITATION Anj18 \l 1033 ]

Shreshtha & Thygerson (2019), worked closely with Better Brick Nepal (BBN), a concern of

Global Fairness Initiative, to identify the level of air pollution that laborers in brick kilns are

exposed to. Since most workers live in temporary housings nearby the kiln, they are more

likely to experience highest pollution. The study concluded that the fire technicians who live

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closer to the kiln are exposed to highest level of pollution followed by the production laborers

who live a bit far away from the kiln. [ CITATION Shi19 \l 1033 ]

Larsen (2016), recommended immediate actions to change the brick kilns nearby Dhaka city

in order to reduce the air pollution. The author identified nearly 1000 kilns around Dhaka city

that contribute to more than PM2.5 of air pollution during their 6 months of operating period.

The author suggested three modern technologies that can be implemented to tackle the

problems. The author also identified that Improve Zigzag Kiln is the most suitable technology

that can be implemented to convert current Fixed Chimney Kilns which would reduce

pollution significantly while not causing major financial burden on the owners. [ CITATION

Bjo16 \l 1033 ]

Sarraf, Croitoru, & Li (2011), studied the problems in brick making industry in Bangladesh.

The study found that the seasonal brick kilns are responsible for nearly 40% of total emission

during the five month operating period. The authors focused on Fixed Chimney Kilns which

are majority in Bangladesh. The article details the alternative methods and technologies of

brick making that can replace the FCK. The authors have also identified many social issues

such as child labor, workers’ health risks and safety concerns that arise from the use of out-

dated technology. It is recommended that the older kilns are replaced with modern methods

such as IZK, VSBK, HHK. [ CITATION Mar11 \l 1033 ]

2.1: History of Brick Making

The use of bricks goes back to 7000BC which is suggested by the evidence discovered in

southern Turkey. These were mud bricks made in warm climate and sundried for hardening.

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Ancient Egypt bricks were made from a mixture of mud and straw. Around 3500BC, fired

bricks were invented which is continued till today with minor changes in the process. The

Romans used to make their bricks in spring season and store them for almost 2 years for

hardening. They introduced the process of making fire bricks in mobile kilns. Roman bricks

came in different shapes like oval, square, rectangular etc. The fall of Roman Empire lead to

vanishing of brick making for a while although it continued in some parts of Italy. During

12th century, fire bricks became popular all over modern day Europe. Even in South America,

sun dried bricks were widely used in 15th century. In 19th century, American cities like New

York, Boston were developed using brick construction. [ CITATION Bri19 \l 1033 ]

2.2: Brick Usage by Different Countries

Country Production % No. Billion P.A.


China 66.67% 1000
India 13.33% 200
Pakistan 3.00% 45
Vietnam 1.67% 25
Bangladesh 1.13% 17
Nepal 0.40% 6
Rest of Asia 0.47% 7
Total Asia 86.67% 1300
USA 0.53% 8
UK 0.37% 4
Australia 0.13% 2
Rest of World 12.40% 186
Total Rest of World 13.33% 200
Total World Production 100.00% 1500

Source : AAETI – Anil Agarwal Environment Training Institute 2012 [ CITATION AAE12 \l 1033 ]

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2.3: Brick Advantages and its Negative Impact on Environment

Brick is a solid unit of building having standard size and weight. Its history traces back

thousand years (almost 7500 BCE) (Jamal, H., 2017). Bricks have been Manufactures since

ancient times (Barkirer, 1981). They were Fundamental Building Materials in Mesopotamian,

Egyptian and Roman periods (Fernandes et al., 2010).

2.3.1: Advantages

Building a house exclusively of bricks can be costly, but it is a sensible investment that pays

off. Houses made entirely off bricks costs less in the long run. Houses or walls made of

bricks provides many advantages mentioned bellow-

Durability:

A building or a wall made of bricks does not wane easily as quickly as woods and other

materials. It also reduces the risk of cracks. As a matter of fact, they are highly durable and

more secure; especially in the time of natural calamities like- earthquake, tornados etc.

Energy Efficient:

A building made of bricks creates pleasant indoor climate. The natural density and thermal

insulating qualities of clay help adjust building temperature as they store heat and cool air. As

a matter of fact, these houses need less energy for heating and cooling, respectively during

winter and summer. Such houses absorb humidity and efficiently support heating system.

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Cost Effective:

Because of the reasons mentioned above under subheadings –energy efficient and durability,

a house made of bricks costs less in the long run. Along with these, a brick made house also

reduces the cost of heating or cooling the houses with weather change.

Creative and Stylish:

The natural earthy color of brick provides a long lasting color contrast and a rich impression

to any type of building and structure. The natural texture of brick brings out a more

traditional and sophisticated look that is helpful to style any contemporary home.

Healthy Home:

Brick walls help absorb humidity and are organic. This combination reduces the risk of dust

mites and mildews; which means a healthy house.

Sources: Austral Brick (2017)

2.3.2: Negative Impacts on Environment

Barren Land:

Bricks are generally made of the top-soils extracted from land. And every time top-soil is dug

out of a piece of land, the land becomes barren for at least 3 years.

Air Pollution:

As bricks are fired on high temperature, the kilns cause huge amount of black-smoke every

day. Brick kilns (brick burning) contribute to Greenhouse Gas absorption, which causes

ecosystem damage.

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Jeopardize Human Health:

Exposure to this range of pollution can cause sub-human living for people either working or

living close to kilns. It has been historically proven that workers working in kilns suffer from

respiratory diseases like- asthma, chronic bronchitis, lung cancer.

Sources: ESNR (2016), Dhaka Tribune (2019)

2.4: The production Process

The production process begins with mixing of clay with water. The process is called

“Pugging”. The mixed clay is then molded into bricks by wooden molds and then dried under

the sun for at least 2-4 days depending on the sunlight. The dried bricks are loaded into the

kiln chamber in a specific manner which allows air to navigate between them. The bricks are

then fired for 18-24 hours depending on the climate and the fuel. The fired bricks stay in the

kiln for a few days to cool down. Then the bricks are unloaded from the kiln and stored near

the kiln. In traditional kilns all of these processes are done by manual labor. However,

modern kilns range from semi to full automatic. Semi-automatic kilns, which are most cost

efficient, mold the bricks with automated machines and dry them using the heat of the kilns

instead of the sun. [ CITATION Mar11 \l 1033 ]

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Chapter – 3: Overview of Brick kiln Industry in

Bangladesh

Brick making is indispensable for Bangladesh’s economy. Though not formally recognized as

an industry, brick-making is a significant economic activity in Bangladesh. [ CITATION Min10 \l

1033 ]. The country‘s overwhelming dependence on bricks is due to its lack of stones in any

sizable quantity or other alternative building materials at comparable cost. The following

table summarizes the main characteristics of the brick sector in Bangladesh

Parameter Value
Estimated total number of coal-fired kilns 5,000

Number of natural gas fired kilns 20

Annual brick production 17.2 billion

Value of output TK83 billion (US$1.2 billion)*


Contribution to GDP ~1%

Coal consumption 3.5 million tons

Value of imported coal TK22.6 billion (US$322 million)

Firewood consumption 1.9 million tons

Emissions CO2 9.8 million tons


Clay consumption 45 million tons

Total employment (incl. supply of clay and coal, 1 million people


transport of bricks)

Growth rate of the construction industry (1995-2005) 5.6%

Estimated future growth rate of the brick sector over 2-3%


the next ten years

Sources: BUET (2007), World Bank (2011)

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3.1: Small Scale Operation

Brick kilns in Bangladesh are mostly informal and small-scale operations. More than 90

percent of brick kiln owners are small-scale operators. Most FCKs are individually owned,

with each owner possessing one kiln only. Multiple ownership of one kiln and multiple kilns

under the same ownership are rare. In a few cases, established business houses own brick

kilns that are part of a portfolio of industrial establishments. The kiln owners are organized as

the Bangladesh Brick Manufacturers Owners Association (BBMOA). This association is

expected to support actions perceived as beneficial to the interest of its members; thus, it

must be involved in any reform concerning the brick sector.

3.2: Regulations

Regulating the brick sector has improved considerably; however, enforcement is still needed.

The Government of Bangladesh (GOB) has demonstrated serious commitment to regulating

the brick industry through a series of measures:

 1989. The Brick Burning (Regulation) Act of 1989, Bangladesh‘s first brick-making

law, banned the use of firewood for brick manufacturing and introduced licensing for brick

kilns.

 2001. The 1989 Act was amended to regulate the location of brick kilns. The new

provision required that brick kilns not be set up within 3 km of the upazilla or district center,

municipal areas, residential areas, gardens, and the government‘s reserve forests. Despite this

amendment, the location requirements have not been enforced, and use of firewood still

continues on a limited scale.

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 October 2002. The GOB introduced a rule that made the use of 120-ft chimneys for

brick kilns compulsory. This requirement was successfully enforced, especially in the vicinity

of urban areas, and most Bull‘s Trench Kilns (BTKs) were upgraded to FCK technology.

 March 2007. The GOB issued notification that environmental clearance certificates

would not be renewed if the owners did not shift to alternative fuel and improved

technologies by 2010. However, this regulation has not been implemented since little on-the-

ground activity occurred to facilitate the switch.

 July 2010. A new notification was issued banning FCK operation three years from

this date.

3.3: Types of Brick Kilns in Bangladesh

In order to understand the current condition of brick kilns in Bangladesh, we have to know

what types of kilns already exist in this industry, and their advantages and disadvantages.

The industry is lagging a lot in terms of use of modern technology. However, there are almost

all kinds of brick kilns all over the country. There are 5 types of brick kilns in Bangladesh.

 Bull’s Trench kiln (BTK)

 Fixed Chimney kilns

 Zig-zag kilns

 Hoffman kilns

 Hybrid Hoffman kilns (HHK)

BTK & Fixed Chimney: BTK and Fixed chimney kilns use older technology. So these are

not environment friendly at all. These kilns use combination of low grade coal and wood in

order to produce bricks. The efficiency of energy extraction is also pretty low for these brick

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kilns. The only difference between these two is that BTK uses movable chimneys. Both of

these kilns emit harmful gases like carbon mono-oxide and carbon di-oxide since the exhaust

goes to the air unfiltered. Only 60% of total bricks produced come out as high quality Class-1

bricks. 30% comes out as Class two bricks. And the rest comes out as poor quality Class-3

bricks. According to recent reports there are nearly 2000 kilns that are still using this design.

BTK and FCK cause severe air pollution as the firing process is inefficient and un-burnt coal

mixes up with the smoke and pollutes the air.

Zig-zag kilns: In order to tackle the problems of BTK and fixed chimney kilns, zig-zag kilns

come into play. Zig-zag kilns have unique design that circulates the air within the kiln so that

most of the energy can be extracted from the coal burnt. The Zigzag kilns used in Bangladesh

are replications of similar Indian kilns developed by the Central Building Research Institute

(CBRI) in Roorkee, India during the 1970s. It also ensures even spread of heat throughout the

chamber. While BTK and Fixed chimney kilns use both coal and wood, zigzag kilns provide

the best quality of production with only coal. Zig-zag kilns also have a filtration system that

reduces harmful CO2 emission. All the smoke from the kilns is pulled by a fan and passes

through water-based filter that traps most of the harmful elements and emits cleaner smoke to

the air. The output from these kilns is better than BTK and fixed chimney kilns. More than

80-85% of the total production is high quality Class-1 bricks. The rest is medium quality

Class-2 bricks. So there is no production of low quality class 3 bricks. Since the energy

extraction in this type of kiln is more efficient, it takes less coal to produce bricks.

Hoffman Kilns: This is almost 150 year old technology invented by Friedrich Hoffman, a

German man. This type of kiln burns the bricks from chamber to chamber and ventilates the

exhaust through the next chamber of uncooked bricks so that they are preheated before the

fire reaches that chamber. By doing so, the exhaust is cooled down and the emission is

reduced. Since this process preheats the bricks, less fuel is needed to cook the bricks in that

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chamber. The burning also allows spreading the heat evenly throughout the chamber. So

Class-2 bricks are produced very less.

Hybrid Hoffman kiln: This is the modern technology of producing bricks. This kiln uses the

same principles of Hoffman kilns. However, the process can be modified depending on the

specific needs and requirements like weather condition, available fuel etc. HHK can use

many kind of fuel like gasoline, coal, natural gas etc. Traditional Hoffman kilns require the

bricks to be mostly dried out before they are loaded into the kilns. But in HHK, the cut bricks

are loaded into a drying oven that is powered by the exhaust gas of the kiln. This allows the

drying process to be faster and increase the overall production. Since there is no need of

sunlight to dry the bricks, this type of kilns can run throughout the year. Another benefit of

this type of kiln is that it can be easily modified to use different type of fuel.

3.4: The Supply chain of Brick Kilns

The supply chain of usual brick kilns runs in three stages. First stage is resources collection,

second stage is production, and third one is storage and distribution.

3.4.1: Resource Collection

There are two main resources for brick production, clay and coal and/or wood.

Clay: Depending on the area where the kiln is located, clay is collected from nearby sources.

Most kilns in Bangladesh are located near agricultural fields. So, the top soil of these

agricultural fields is the primary source of clay for most kilns. The clay collected from the

fields make a level of land go down. However, within 2 monsoons, the lands are filled to

previous condition. The collection is overseen by one or several contractors. The clay is

transported near the kiln by trucks and tractors with flat bed wagon.

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Coal: The coal is collected from importers since Bangladesh does not produce enough coal to

meet the demand. Most of the coal used in brick kilns is imported from India. However, when

the supply fluctuates, importers also source from other countries like China, Indonesia. The

importers supply the coal to the kilns using large trucks so that the cost of transport per ton of

coal remains as low as possible.

Wood: A large number of kilns also use wood along with coal in order to keep the cost low.

Although it is not legal to use wood in the kilns, the laws are not enforced properly in this

case. The wood is usually sourced from local suppliers.

3.4.2: Production Stage

Brick Molding and drying: The production stage starts with the mixing of clay. Most brick

kilns in Bangladesh use manual labor to shape the bricks. Then the cut bricks are laid in the

open field to be dried under the sun. Usually, the bricks can be dried within 3 days if the

sunlight reaches properly and the weather is favorable. This is the older technology of brick

production and it is highly dependent on sunlight. So the production can run only from late

autumn till last spring. The rain starts to come from the beginning of summer. So the

production has to stop until the monsoon ends. Usually these kilns run from mid-October to

mid-March. However, the modern kilns use the heat from within the kiln in order to dry the

bricks. This makes the process faster and provides better quality of bricks. Also this process

allows the production to run throughout the year. The Rain cannot affect the production since

all the process can run under a roof.

Coal and Wood processing: The coal and wood have to be processed a little bit in order to

make them usable in the kiln. The rocks of coal is broken into very small pieces or even

powdered depending on the type of kilns. The wood is cut into small pieces so that they can

be added in the fire easily.

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Loading: The dried bricks are carried from the fields using carts and loaded into the kiln.

The bricks are loaded by experienced workers since the bricks have to be set in a specific

way. Slight misalignments can cause and entire chamber full of bricks to crumble down

before they are burnt properly.

Burning: The burning process is handled by fire technicians. After loading the bricks into a

particular chamber, the fire technicians move the fire to that chamber from previous chamber.

The fuel is inserted into the chambers from top at specific intervals and specific amount.

Depending on the weather, the fuel required to maintain specific temperature can increase or

decrease. For example, light rain can cool down the fire significantly. So if it rains, the

specific chamber would require more coal and/or wood to keep burning properly.

Unloading: The unloading process is where the burnt bricks are removed from the kiln.

Usually this task is handled by contractors. This is also a delicate task like the loading

process. The bricks have to be removed from the chamber carefully in order to avoid

breaking them. After the fire moves a few chambers ahead, the bricks cool down and ready to

be removed.

3.4.3: Storage and Distribution

Storage: The unloaded bricks are stored according to their quality. Usually there are 3

Classes of quality of bricks. Class-1 is the highest quality of bricks that are burnt perfectly

and sold at highest price. Class-2 bricks are a little bit lower quality that Class-1 and are

usually priced 10-15% less than Class-1 bricks. Class-3 bricks are the lowest of quality. Only

the older types of kilns like BTK produce a portion of such low quality bricks. There is

another type of brick called “PICKET”. This type of bricks usually is a little bit deformed due

to exposure to too much heat. However, it possesses equal quality as a Class-1 brick. Since

these bricks are deformed, they are stored separately to be turned into concrete.

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Distribution: The bricks are sold either directly from the kiln or through agents at convenient

locations. Most producers sell their product directly to the customers. The bricks are

transported by mid-sized trucks to customers’ doorstep. The transport is usually arranged by

the seller and the transportation cost is charged separately from the price of bricks.

Importer Local Supplier Local Sources


Resource Collection

Coal Wood Clay

Clay Mixing and Molding


Coal Processing (Powder)
Wood Processing (Small pieces)

Drying Production

Loading into the kiln

Burning

Unloading

Storage Storage & Distribution

Distribution

Figure: Supply Chain of a brick kiln 16


3.5: Employment Scenario
Bangladesh Bureau of Statistics conducted a survey of manufacturing industry back in 2012

which was published in 2013. According to the survey, 430,000 people are involved directly

in brick making industry. More than 50,000 of this workforce are women. Of this workforce

more than 350,000 people are production workers and temporary laborers. Since the brick

making work lasts around 5-6 months, majority of the workforce is temporary. Each brick

kilns employees around 6-10 people permanently, including managers and laborers. The rest

are floating workforce. This industry also generates nearly 100 crores in indirect taxes

through the salaries and wages. [ CITATION BBS12 \l 1033 ]

Chapter-4: Findings
4.1: Problems

Outdated Technology: Outdated brick-production technology and seasonality of kiln

operations hinder brick-sector productivity. FCK technology is more than a century old. The

brick sector has largely grown by replication of existing kilns, with little variation in kiln

design or operation. Brick-making is a seasonal operation. Because kilns are often located in

low-lying areas that are flooded during the monsoon, the operational period averages about 5

months out of the year. Employment in brick kilns is therefore also seasonal, involving

migrant workers who receive low wages and perform hard physical labor under hazardous

conditions. As a result, annual production averages about 3–4 million bricks per enterprise

(BUET 2007).

Low Energy Efficiency: Most brick kilns have low energy efficiency and are highly

polluting. Most brick kilns in Bangladesh burn low-quality coal imported from India with a

high content of sulfur (about 5 percent) and clinker content. Dependence on this type of coal

17
is likely to continue in the foreseeable future. Owing to Bangladesh‘s current energy

shortage, the GOB decided not to provide natural gas for new brick kilns.

Most operating kilns consume about 18–22 tons of coal to produce 100,000 bricks (BUET

2007). Coal burning by kilns releases pollutants into the atmosphere, leading to harmful

effects on health (e.g., from PM) and agricultural yields (e.g., from NOx) and contributing to

global warming and climate change (e.g., from CO 2). Adopting such modern kilns as the

Improved Zigzag, VSBK or HHK would mitigate some of the above-mentioned impacts due

to their lower coal consumption (12–15 tons per 100,000 bricks) [ CITATION BUE07 \l 1033 ]

[ CITATION Wor11 \l 1033 ]

Impact on Agriculture: Brick kilns have a negative effect on agricultural productivity.

Almost invariably, good-quality topsoil from agricultural fields with high clay content is used

in Bangladesh‘s brick kilns. Depletion of topsoil with high organic content for brick-making

is a major concern for agricultural production. In addition, acid deposits from the sulfur

dioxide (SO2) and NOx emitted from the brick kilns negatively affect agricultural

productivity. [ CITATION Wor11 \l 1033 ]

Lack of Financial Strength: The weak financial situation of most kiln operators hinders the

adoption of modern technologies. Most kiln operators have a weak financial base, with

limited or no access to bank financing. Because brick-making is not formally recognized as

an industry, kiln owners cannot avail themselves of the concessional loan windows of

financial institutions for the SMEs. In addition, most kilns are established on rented lowlands

that cannot be used as collateral to access finance. As a result, only short-term working

capital financing is available to kiln owners. Lack of access to finance constrains the owners’

capacity to adopt improved technologies that would reduce pollution and increase energy

efficiency. Thus, for small operators, incremental, low-cost retrofit technology appears better

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suited for upgrading kilns. Lower-emission, higher-efficiency kilns (e.g., coal-based HHKs)

cost 10 times or more than the FCKs (World Bank 2011a). Moreover, these kilns operate

year-round on highlands above flood level; these are scarce and those near major cities are

very expensive. Because of these constraints, current FCK owners are unlikely to adopt the

HHK or other modern technologies unless flood-free land is made available to them at an

affordable cost. [ CITATION Wor11 \l 1033 ]

Severe Air Pollution: Brick kilns are responsible for severe air pollution in this country. The

environment minister recently quoted that the old technology FCK brick production is

responsible for nearly 58% of air pollution in Dhaka city. [ CITATION Dha19 \l 1033 ] On the

month of March, Greenpeace and Airvisual declared Dhaka as the second most polluted

capital city in the world. [ CITATION The191 \l 1033 ] Traditional kilns emit harmful gases and

particles in the air because of the poor burning process.

4.2: Barriers to Energy Efficiency in the BMI

The barriers that have contributed to the current state of the BMI and its inability to bring

about changes, particularly in the way energy is utilized in brick making operations includes:

 Lack of supporting regulations, fiscal incentives and standards to encourage more

energy-efficient practices and technologies. Except for some sporadic efforts to

regulate the industry, government has made little effort to establish effective boundary

limit emission standards;

 Little or no governmental activity to assist the brick industry to undertake

comprehensive programs to transform the industry and make it less polluting and

more profitable. Brick makers have been left to bring in changes on their own which

they have failed to do since they are locked into a vicious cycle of a low

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efficiency/low income trap. A few initiatives that have taken place in the past have

come from new entrants and not from traditional brick makers;

 Lack of knowledge and access to energy efficient technologies that can also lower

production costs at the same time. Comprehensive technology dissemination

programs that demonstrate the potential economic benefits of energy-efficient

technologies have yet to be carried out;

 Lack of access to liquidity to finance modernization of brick making operations. The

BMI are considered high-risk due to the seasonal, itinerant nature of their operations

and their lack of collateral;

 Lack of capacity in terms of technical and business skills at the enterprise level to

bring in even small changes that could have made production more efficient and less

polluting;

 Limited experience of commercial lending institutions with SMEs and in particular,

brick SMEs. They lack interaction with and understanding of the brick industry;

4.3: Brick Making Industry in Foreign Countries

China is the largest producer of fired bricks in the world producing more than 800 billion

bricks every year. More than 90 % of all kilns in China are Hoffman kilns and the rest are

traditional kilns. For the firing process, Chinese brick makers use coal as it is the readily

available fuel in the country. There are more than one hundred thousand brick kilns all over

China and only a handful of those are modern kilns such as HHK. However the excessive use

of coal in brick production as well as other industry has lead to severe air pollution in China.

The country has been cutting the use of coal in such industry through adaptation of modern

technology and has achieved the target of reducing air pollution. [ CITATION Reu18 \l 1033 ]

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The European countries such as the UK, France, Germany use gas-fired kilns. The main fuel

is natural gas as the continent has easy access to this particular natural resource. The United

States and Canada also use natural gas to fire the bricks. Unlike the South Asian countries,

North America and Europe has strict environmental regulations that prevent brick makers to

use older crude technologies.

India is the second largest producer of fired bricks in the world with more than 250 billion

bricks produced each year. Around 70% of total bricks produced come from older fixed

chimney bull trench kilns (FCBTK) which is highly energy intensive and major polluter.

However, Indian government has launched an initiative to convert 30-35 thousand older kilns

into modern zig-zag kilns. Since zig-zag kilns use 20% less coal and burn cleaner than

traditional kilns, the government targets to reduce coal usage by 6 million tons and emission

of CO2 by 14 million tons. [ CITATION Dhe13 \l 1033 ]

Chapter 5: Implications and Conclusion

The brick making industry in Bangladesh is severely outdated. Most kilns are still using

century old technology even though modern technology is readily available and can be

implemented easily. In order to get this industry on the right track, following steps can be

taken.

 The regulations regarding brick making has to be enforced properly. Weak

enforcement of the law is allowed the older kilns such as BTK and FCK to exist.

Currently, the zig-zag kilns and modern kilns only get the clearance from DoE. Proper

enforcement of the law would force the BTK and FCK owners to convert their kilns

into modern technology.

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 Financing at minimum rates should be offered to the kiln owners. Most kiln owners in

Bangladesh run only single production facility. So they do not have the financial

strength to adopt modern technologies.

 Large scale awareness program should be implemented in order to educate the people

related to the industry. Such programs can educate them about the benefits of modern

technology of brick kilns such as lower cost, better quality products, and less

pollution.

 The process of production should be automated. A large portion of the production

process requires intense manual labor which is nearly inhumane. The molding and

drying process can be automated easily which would reduce manual labor as well as

dependence on sunlight.

Scope for Future Studies

From the information gathered for this report, we can identify a number of potential scopes

for future studies.

 A financial comparison study can be conducted in order to determine the cost and

benefits of adapting modern kilns. There is no proper research available that describes

a clear picture of the industry’s potential for better value. Such studies can help

financial institutions to properly evaluate the industry which could lead to easier

financing opportunity for the owners.

 The production yield in this industry differs according to the climate of the area of the

kiln. Further studies can be conducted in order to determine which type of kilns and

processes are best suitable for certain conditions. For example, the eastern part of

Bangladesh sees more rain during the monsoon and western part remains dry most of

the year. So different process can be identified according to the difference in climate.

22
 There is no data on how much efficiency can be achieved through automation in this

industry. Brick making in Bangladesh is highly labor intensive which is not very

efficient. Further research can reveal the potential level of efficiency and financial

benefits that can be achieved through automation.

Conclusion

As the progress of the economy of Bangladesh increases, the infrastructure development

work would increase as well. These development works would be very much dependent on

the brick making industry since there is no viable substitute introduced yet. The production of

bricks would increase in order to match the pace of development. However, this increase in

production cannot come at a cost of polluting the environment as well as the human cost. The

technology in this industry is very much outdated and needs to be addressed as soon as

possible. Brick kilns are already identified as a main culprit of air pollution in Dhaka which

still can be controlled. The authorities need to learn from the mistakes of China and India,

who are now paying the price of severe pollution. The use of old technology in this industry

has become a cancer which would not take long to affect other industries if necessary steps

are not taken in time.

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