When Al-Hajj Habibur Rahman established H.A. Timbers Industries Limited on the banks of Buriganga in 1963, his vision was rooted in the idea of fostering “collective development” among every businessman in the wood industry. In the steady hands of Habibur Rahman, H.A. Timber Industries Limited took shape and became one of the prominent timber businesses in Farashganj, which was then Dhaka’s biggest timber hub. The resonance of his (Habibur Rahman’s) vision continues to reverberate even today, nearly 60 years later, through the voices of HATIL’s next generation of leaders. The concept of collective development is echoed in the words of Mushfiqur Rahman, Assistant Director at HATIL Complex Ltd. During an interview with UNB, Mushfiqur shared insights into his role within the company and how his journey began with HATIL. Moreover, he shed light on both the company’s vision and his personal aspirations for the country’s leading furniture brand. “We aim to enhance the backward linkage of Bangladesh’s furniture industry. Presently, the backward linkage in Bangladesh’s furniture industry is considerably weak. For instance, a major portion of our raw materials is imported from China. This scenario isn’t unique to HATIL; it’s a prevalent situation across various industry players as well,” he told UNB. Read more: Inside HATIL’s manufacturing philosophy Regarding the founding chairman’s commitment to collective development, HATIL’s company secretary, in a previous interview, had said, “Habibur Rahman was a leader who always thought of everyone, not just about himself. His vision was ‘us’ not ‘me’. He believed in collective development.” PRIMARY FOCUS ON MEETING CUSTOMERS’ NEEDS: MUSHFIQUR RAHMAN Mushfiqur started working at HATIL in October 2020 after graduating from the University of Sydney. Despite diverse job experiences in Australia, notably in marketing and sales roles, he lacked exposure to the furniture industry. His stint at Harvey Norman provided his first encounter with this sector. Upon returning to Bangladesh, he joined HATIL as a management trainee. During this period, he underwent intensive month-long training across all departments and contributed significantly to a joint venture with Nolte Group as an Operations Lead for two years. Transitioning to the HATIL factory in 2023, he initially worked with the plywood section and now focuses on the interior team within the production department, having prior experience with the bentwood team. Read more: Commitment towards sustainability at the heart of HATIL: Company Secretary Md. Rezaul Karim

To understand any company’s astronomical rise in any industry, it’s imperative to understand the story of the said company.  The story of HATIL, the country’s leading furniture brand, started at a small timber shop in Dhaka’s Farashganj, by the bank of the Buriganga River, almost 60 years ago.   In the firm hands of Alhaj Habibur Rahman, H.A. Timber Industries Limited took shape and became one of the prominent timber businesses in Farashganj, which was then Dhaka’s biggest timber hub.  Over the next 32 years, before HATIL’s formal beginning in 1989, H.A. Timber Industries Limited positioned itself as a key player in the country’s timber industry.  “He was a visionary man with a great reputation,” HATIL’s Company Secretary Md. Rezaul Karim ndc said about the founding chairman.

Company Secretary of HATIL, Md. Rezaul Karim ndc, has affirmed that the renowned furniture brand is firmly dedicated to working towards its sustainability commitment to the environment. “When we talk about a sustainable industry, there are some criteria to ascertain whether the company or the industry is sustainable.  The first criterion is environmental sustainability, which includes practices like sustainable sourcing, recycling and reusing of waste,” Md. Rezaul Karim ndc, told UNB during an exclusive interview. During the interview, the HATIL Company Secretary shared his deep admiration for the nation’s foremost furniture brand, shed light on the brand’s path to sustainability, and a glimpse into its sustainable practices. One of the most notable sustainable practices at HATIL revolves around the sourcing of one of its most vital raw materials: wood. “HATIL is committed to sustainability in terms of sourcing raw materials from overseas. For example, we don’t use local timber to manufacture our furniture as quality wood is not available. Initially, we used to source oak wood from Forest Stewardship Council (FSC) certified forests in Canada. Now, we source FSC-certified Beech wood from Germany and pine wood from Spain. Our use of FSC-certified wood aligns with our commitment to environmental preservation,” Md. Rezaul Karim ndc, said.  At the same time, HATIL is reducing deforestation in Bangladesh where forests are below minimum standards. A product being certified by the Forest Stewardship Council means it meets the “gold standard” of ethical production. An FSC-certified forest, from where HATIL sources its wood, means that the forest is being managed in a way that preserves biodiversity and benefits the lives of local people and workers, while ensuring economic viability, according to the Forest Stewardship Council website.  Read more: HATIL’s ‘slim is smart’ has global appeal: Marketing Director Moshiur Rahman ‘REDUCE WASTE, MAXIMIZE PRODUCTIVITY’ One of HATIL’s key strategies to achieve maximum efficiency is embodied by the motto: “Reduce waste, maximize productivity.” But how does HATIL do that? “Well, if we want to reduce waste, we need to introduce better technologies, in other words, better machinery which would, in turn, enhance our overall productivity. The process also included recycling and reusing the waste,” the HATIL company secretary said. He also provided some insights into HATIL’s recycling and reuse policy to reduce waste.  “For example, we have installed a Coral Anti-pollution System to collect dust in HATIL. We collect dust from every piece of machinery. Then we recycle it and turn it into briquettes. We use the briquettes as fuel for our Thermo fluid heater,” he said, adding, “This is one of the examples of how we recycle our waste and reuse it in HATIL.” HATIL also recycles and uses wood offcuts to manufacture particle boards, he added.  Karim stressed the need to cease actions that harm the environment. “This holds true for the furniture industry as well. We must ensure that we are not contributing to deforestation in any manner, and we should strive to minimize our wood usage as much as possible,” he added. Read more: Commitment to quality behind HATIL’s success: Director Mahfuzur Rahman

Introducing robotics and automation to HATIL’s manufacturing process was one of the most significant transformations since the furniture brand’s inception, according to HATIL’s Director Shafiqur Rahman. “There was a time when a carpenter would be responsible for a specific product. If the carpenter was unwell or absent for personal reasons, the operation for that product would come to a halt,” he said. “Now, if someone is unwell or on a personal leave, another person can finish the work with the help of automation at HATIL, making the process smoother and eliminating extra costs and delays,” Shafiqur Rahman told UNB during an exclusive interview. HATIL employs a variety of advanced machines and automation to craft their furniture pieces at the factory. The use of technology ensures consistent design and size for every piece, which can be challenging to achieve with manual labor. HATIL, Bangladesh's top furniture brand, is renowned for its quality and consistency, which has been crucial to the brand's enduring success. Shafiqur Rahman attributes this success to the brand's innovative approach, which incorporated advanced machinery and robotics into its production over the past decade. “Previously, there was no plan in place to ensure an efficient manufacturing process,” Shafiqur said. “Often, it was seen that all parts for production were ready, but an important material was missing, causing the entire production process to come to a halt which, in turn, would add to the manufacturing cost.” “Now, due to our streamlined operations, there is no backlog for any product,” he said. Shafiqur came to be a part of his family’s decade-long wooden furniture business as an “intern.” "Even though I formally joined HATIL's production unit in 2004, my association with the wood industry began well before that," he recalled. Read more: HATIL’s ‘slim is smart’ has global appeal: Marketing Director Moshiur Rahman

HATIL’s “Slim is Smart” slogan has global appeal, according to Moshiur Rahman, the furniture brand’s director of marketing.  “At our showrooms abroad, we see that customers like our designs and are interested in them,” he said. “Those who are looking for furniture like IKEA but of slightly better quality and are willing to pay a bit more, prefer HATIL furniture over IKEA's.” Over a span of 26 years, while being an integral part of HATIL, Director of Sales and Marketing Moshiur Rahman has been witness to some of the most pivotal transformations that the nation's foremost furniture brand has undergone. During an exclusive interview with United News of Bangladesh (UNB), Director Moshiur shared his personal journey, HATIL’s sales and marketing strategies that have propelled it to become the nation's top furniture brand, and future prospects, among other topics. ‘Didn’t want to take business as a career’ Before stepping into the realm of HATIL in 1997, Director Moshiur Rahman had some different plans in mind. Despite being one of the five sons of the visionary businessman late Al-Hajj Habibur Rahman, the founder of H.A. Timber Industries Ltd, Moshiur didn't initially aspire to follow in his father's footsteps. “I completed my bachelor's and master's degrees in English literature,” he said.  “I wanted to study English literature and become a teacher, and I also wanted to write,” he added.  Despite his involvement with the country's leading furniture brand, Moshiur continued to pursue his desired path up to a certain point. “I have done some writing, including books of poetry and novels. At some point, I also worked as a teacher at a university (for a few months),” he told UNB.  From ‘for those who could afford’ to ‘for everyone’ As part of the country’s leading furniture brand, Moshiur has been a witness to all the significant transformations in HATIL's business, sales, and marketing strategies over the past 26 years.  “Initially, our strategy was to make furniture not for everyone but for those who could afford the very best. However, our strategy has changed now. We are now targeting not only the affluent but also the middle-class,” he said. For Moshiur Rahman, trade fairs have been the most pivotal part of HATIL’s marketing strategy since 1995 — the first time HATIL participated in a trade fair.  “Participating in trade fairs was a significant part of our marketing strategy because these trade fairs used to provide us with some breakthroughs. We used to experience a significant boost in sales during each fair,” he said.  Read more: Commitment to quality behind HATIL’s success: Director Mahfuzur Rahman “After each fair, we would supply the products showcased for the next one or two months.” These fairs have assisted HATIL in shaping their strategy, enabling them to offer the same product model at various price points, ranging from high-end to more affordable, depending on the materials used in manufacturing these products. “We introduced a unique sofa design for HATIL at the 1997 trade fair. We named this model ‘Mela 97’ and it received around 100 orders,” Moshiur Rahman recalled. “We offered the same model at different price points based on the type of wood we used to manufacture it.”   “This is when we started thinking about how to offer our products at a more reasonable price,” he added.  ‘Slim is smart’ at the center of HATIL’s success Like many other brands in the furniture industry, HATIL's furniture designs differed significantly from the ones we see today. “Our furniture designs were not as modern as they are now; we used to follow more traditional designs,” Moshiur said, referring to the slim and minimalistic design which is at the center of the brand’s success. “People nowadays prefer slim-designed furniture because urban apartments are becoming smaller in size,” he said. 

It was his father’s letter to his then Malibagh address in July 1993 that marked the beginning of Mahfuzur Rahman – one of the five brothers who own and operate HATIL Complex Limited – at the helm of H. A. Timber Industries Ltd. H. A. Timber Industries Ltd – a small timber shop on the bank of the Buriganga River – was founded by the late Al-Hajj Habibur Rahman in 1963, at 2/1 Ultinganj Lane in Old Dhaka’s Farashganj area. Despite being a part of a family with a three-decade-long involvement in the wooden furniture business, Mahfuzur Rahman chose a distinctly unconventional path for his career in the beginning. After completing his graduation from Dhaka College, Mahfuzur Rahman started his own monthly publication called “Computers and Electronics” with his friends in September, 1991. Two years into his publication business, Rahman got a letter from his father, urging him to join H.A. Timber Industries Ltd. as an Executive Director. In August 1993, he joined the family business with a salary of Tk 4,000 per month, Rahman recalled – now managing director at H.A. Timber Industries Limited. During an exclusive interview with UNB, Rahman shared how HATIL became the furniture giant it is today. Rahman is one of the directors at HATIL Complex Ltd., one of the top furniture brands in Bangladesh, established by his father late Al-Hajj Habibur Rahman in 1989. Bangladesh’s furniture industry has seen rapid growth over the past few decades, which is expected to continue in the coming years. According to Statista, revenue in the furniture market in Bangladesh was US$ 2 billion in 2023. The global furniture market size was valued at $ 541.52 billion in 2023 as per ‘Fortune Business Insights’ data. The furniture market in Bangladesh is further expected to grow annually by 9.71 percent (CAGR 2023-2028). HATIL Complex Ltd., now the top exporting furniture brand in Bangladesh, is a leader in driving that growth in the industry. During his interview with UNB, Mahfuzur Rahman shed light on HATIL’s past, present and future as well as the challenges it is facing due to the ongoing crises around the world. Rahman attributed HATIL’s success to his brother Selim H. Rahman’s leadership, the hard work of his four brothers, and HATIL’s commitment to not compromise on its product quality. H. A. Timber Industries Ltd. installed 1st Seasoning plant in the private sector in 1988 with a motto to make available seasoned timber for furniture, doors and door frames. When asked about the rationale for choosing “Slim is Smart” as the company’s slogan, Mahfuzur Rahman said: “Consumer preferences are changing over time. When people from this generation go to the market to purchase furniture for their apartments with limited space, they look for products that are both compact and affordable. Taking their preferences into account, HATIL employed the ‘Slim is Smart’ strategy.” It is worth noting that the furniture industry in Bangladesh can be divided into two types: branded and non-branded. Currently, non-branded industries dominate 65 percent of the country’s furniture market. For Mahfuzur Rahman, the non-branded or traditional furniture industry is currently a threat to the branded furniture market. “As a brand, when we do business, we have to pay taxes to the government, which the non-branded ones may or may not pay. For a product sale worth Tk 100, we have to incur a cost of Tk 47 that includes VAT, income taxes, among others.” “The government can earn huge tax revenue if the traditional furniture market can be brought under the tax regime,” he said. What is HATIL doing to get ready for the inevitable in light of the country’s impending LDC graduation and analysts’ calls for diversifying the economy, particularly its exports? Mahfuzur Rahman responded: “To prepare for the changes in the local furniture market, we are replacing our machinery with automated machines from Germany to keep up with the changing nature of the market.” HATIL currently sources its major raw materials from various countries around the world. For wood, HATIL uses FSC (Forest Stewardship Council) certified beech-sawn timber and red oak, which are imported from Germany and Canada. For hardware or furniture accessories such as handles, locks and keys, hinges, screws, latches etc., HATIL goes to China. HATIL Complex Ltd. has to pay import duty for all these products (16 - 31 percent for wood and 60-90 percent for hardware), which, according to Rahman, is one of the biggest challenges the company faces right now and will continue to face in the future. On the trend of using automation in production, Mahfuzur Rahman said, “With the change of time, we also have to change our way of thinking. That is why we are focusing on research and development and recruiting qualified manpower in those places.” Among the two most tumultuous events in the last 4-5 years – Covid-19 pandemic and Russia’s war in Ukraine – the latter has had the most profound impact on the furniture industry, according to Rahman. “We went into lockdown in March 2020 due to the pandemic. In that case, even though our manufacturing and revenue generation had completely shut down, we paid the salaries and bonuses of our employees on time and even gave them increments. Then, in September of that year, we turned around. In 2021, we were in a slightly better position after overcoming the effects of the pandemic. “However, in 2022, we were confronted with a dire situation due to the supply chain disruption, inflation, and dollar crisis caused by the Russia-Ukraine war. And I personally think this crisis will persist until at least June-July next year,” he said. During the interview, Mahfuzur Rahman talked about H.A. Timbers Industries Ltd. For him, holding onto this timber business, which has lost its past glory, is more about holding onto his family’s heritage than about business. Apart from his involvement with HATIL Complex Ltd, Mahfuzur Rahman is involved with numerous other organisations. He is the president of the Dhaka College HSC '89 Foundation. The organisation is involved in several health programmes. They also provided financial support to many lower-income people during the Covid-19 pandemic. Currently, they are considering establishing a vocational institute for health in Manikganj’s Singair Upazila. Mahfuzur Rahman is a member of the trustee board of Bhola Children’s Special School Bangladesh. He is also an associate member of the Dhaka University Club and a lifetime member of Farashganj Sporting Club (Farashganj SC) and Madaripur Legal Aid Association (MLAA). Rahman is also a goodwill ambassador of Bijoyphool, an initiative aiming to make the youths aware of the struggles during the Liberation War of Bang. Read more: Bangladeshi furniture industry needs reforms to reach its full potential: HATIL Chairman Selim H. Rahman

With an annual growth rate of 19-20 percent, the furniture industry in Bangladesh has seen remarkable growth in recent years. According to the Export Promotion Bureau, the current size of the furniture industry in Bangladesh is worth Tk 25,000 crore. The success of Bangladeshi furniture extends beyond its borders, with thriving exports to foreign markets. Notably, there has been a remarkable 267 percent surge over the past decade, data from the Export Promotion Bureau showed. In the fiscal year 2011-2012, the country’s furniture exports totalled USD 27.14 million, which significantly surged to USD 76.41 million in the fiscal 2019-2020. Leading the drive towards this growth is HATIL Complex Ltd, currently the country’s leading furniture brand and also recognized to be a game-changer in the country’s furniture industry. HATIL traces its roots back to H.A. Timber Industries Ltd – a small timber shop on the bank of the Buriganga River – founded by the late Al-Hajj Habibur Rahman in 1963, at 2/1 Ultinganj Lane in Old Dhaka’s Farashganj area. Over the next 25 years, the only focus of this business was selling wood.  “Customers would come to our shops with a list of required items they were suggested by carpenters for their homes. Based on their requirements, we would cut the wood and sell them which the carpenters then would use to manufacture doors and everything else,” recalled Selim H. Rahman, the eldest son of Habibur Rahman. For Selim H. Rahman, currently the chairman and also the managing director at HATIL Complex Ltd, the whole business was “somewhat traditional” and “lacked innovation”. “It seemed to me that this whole business could actually be thought of and structured differently,” he said. His vision received a significant boost when, in 1988, his father made the decision to import a seasoning plant — a machine designed to extract excess moisture from freshly cut wood – from Italy. This seasoning plant was the first in Bangladesh owned by a private entity. “My father had two things in mind: first, if he could bring in this seasoning plant, it would greatly benefit the customers as it gives the opportunity to season wood in less time (maximum 30 days) because natural seasoning of wood takes one and half years and second, it would also help his business grow,” said Selim Rahman. His father’s decision to bring in the machine at a time when there was only one small seasoning plant in the whole country under the Bangladesh Forest Industries Development Corporation (BFIDC) “I had an idea since my father brought the seasoning plant: Could we actually think about manufacturing?” he recalled. Read: Malaysia's semi-government body keen to promote Malaysian timber, furniture in Bangladesh By the 1980s, the country’s furniture industry had already started flourishing.  Most of the household items were already available in the local market. “But things like doors and window frames needed for building a house were not readily available at stores,” Rahman said. “So, it occurred to me that we could think about this.” This visionary approach marks the inception of HATIL Complex Ltd, led by Selim H. Rahman, which initially focused on door manufacturing. Subsequently, as the demand for household furniture items increased, HATIL's product range expanded as well. After nearly 35 years since its inception, HATIL has indeed become a household name. According to its company profile, HATIL now has 75 outlets all across the country and 18 outlets overseas. In an exclusive interview with UNB, the furniture industry tycoon discussed various aspects of the thriving sector. When compared to the past, what is the current scenario of the local furniture industry? Selim H. Rahman: The furniture industry in Bangladesh has seen significant development over the years. By development, I mean there was a time when a substantial amount of imported foreign furniture was needed to meet customer demands. The quantity of these imports has now decreased as local manufacturers are able to fulfil those demands. The government played a significant role in this context. The government has encouraged the growth of the local furniture industry. Some policy support and opportunities have been provided by the government as well. What do you think are the major challenges this industry faces? Selim H. Rahman: The culture in our country is such that when an individual initiates a business based on a particular product or demand, it often encourages other entrepreneurs to enter the same sector. This dynamic is a key driver behind the growth of industries here in Bangladesh. This growth encompasses various sectors within the industry. However, it's important to note that due to the lack of proper policy and regulations in place, some actors in the furniture market do not adhere to proper manufacturing methods and lack compliance with industry standards. On the other hand, compliant brands incur higher production costs due to adherence to regulations, including taxes and VAT imposed by the government, ultimately resulting in higher prices for consumers. Read: The most decisive platform for the Indian woodworking, furniture and mattress manufacturing Industry is set to create new benchmarks The need of the hour is to establish a structured system that benefits consumers and manufacturers. Developing guidelines for the industry is crucial. There is a lack of specific criteria or policies governing the furniture industry, leading to revenue loss for the government. Reforms could unlock the full potential of this industry. Furthermore, there is substantial employment potential for youths if provided with adequate training. Every household needs some amount of furniture, even if it is small, for living. As such, furniture is an essential item for human civilization. Bangladesh’s LDC graduation is scheduled for 2026. Experts are now talking about export diversification. How is the furniture industry preparing in this context? And what is HATIL doing in this regard? Selim H. Rahman: I’m not fully aware of all the opportunities, benefits and challenges we’ll face once we graduate from the group of LDCs as we are yet to be communicated regarding these matters from the authorities. However, what I understand is that we will need to compete with other actors in the global market to stay competitive in the future because the trade benefits and advantages we are getting at this moment will not be given to us post-LDC graduation. To stay competitive in the future, we will have to attain the required capability. To acquire that capability, we will need to work on the prerequisites. We haven't seen that preparation yet. One thing that plays a significant role behind the growth of industries is public-private partnerships. What kind of communication with the government is happening in the furniture industry regarding policy issues? Selim H. Rahman: There is some sort of communication happening in this regard. In many cases, there is a lack of qualified human resources needed for the growth of this industry. It is essential to pay attention to this aspect of our education curriculum. Many polytechnic institutes in our country do not prioritise the wood industry in their curriculum. Another challenge is the perception among young individuals when choosing careers. Carpentry is often considered more complex compared to working in the garment industry. Read more: Furniture Brands and Companies in Bangladesh: An Overview Due to these societal perspectives and various reasons, many institutes have stopped offering courses on these subjects. We have discussed these issues with the government. The academic curriculum related to the wood industry hasn't been upgraded compared to the past. We have worked together to upgrade these curricula. In conclusion, both the government and private initiatives are necessary in this context. Communication from both sides is crucial. Furthermore, for any industry to thrive, the government must offer essential policy support. If we look at the massive growth of the Ready-made Garment industry (RMG) today, it became possible due to the government's policy support in the 1980s. A comparable growth can also be realized by the furniture industry if the industry stakeholders receive crucial policy support, such as duty-free import of raw materials, among other measures. HATIL currently sources its raw materials from external suppliers. Given the ongoing global supply chain disruptions, initially triggered by the COVID-19 pandemic and further exacerbated by the Russia-Ukraine war, what strategies does HATIL have in place to navigate these challenges? Selim H. Rahman: HATIL does not use local wood for its furniture. We source it sustainably from overseas. Now, if that source is disrupted, it poses a challenge for us. It may force us to either halt our business or use locally available wood which is in direct contradiction of our commitment towards the environment. Another issue is that we import certain raw materials that are not available in the country or not produced here. If a supply chain crisis occurs, and we cannot import these raw materials, our business may face significant threats. Additionally, there are some materials that we used to source from outside but are now exploring local alternatives to reduce dependency on imports. While some things may not be feasible due to the lack of an industry for all products here, we always strive to find local alternatives wherever possible. We are focusing on research and development to discover local alternatives for such materials. Additionally, we are also exploring alternative international sources to diversify our import options in case of a major supply-chain disruptions.