Pharmaceuticals have become one of the fastest-growing industries in Bangladesh. This sector not only meets the country’s medical needs but also exports high-quality medicines across more than 150 countries. Establishing a Pharmaceuticals Manufacturing Unit in Bangladesh is one of the most profitable and sustainable business ventures today because of its strong local demand, export potential, and supportive government policies.
Overview of the Pharmaceutical Industry in Bangladesh
The Bangladeshi pharmaceutical industry has grown remarkably since the 1982 Drug Control Ordinance, which gave local companies an advantage over foreign competitors. Currently, local manufacturers produce over 98% of the total domestic demand, making Bangladesh nearly self-sufficient in medicine production.
Besides that, Bangladesh’s pharmaceutical exports are expanding rapidly, with shipments to Asia, Africa, the Middle East, and even Europe. Most important, the country enjoys TRIPS (Trade-Related Aspects of Intellectual Property Rights) exemption until 2033, allowing local producers to manufacture patented drugs without paying royalty fees—a huge competitive advantage.
Market Potential and Demand
The demand for pharmaceuticals is rising every year. The industry has maintained an average 15–20% annual growth rate, driven by increased healthcare awareness, hospital expansion, and population growth.
The domestic pharmaceutical market is worth over BDT 350 billion, while export earnings exceed BDT 25 billion annually. The sector directly employs more than 200,000 skilled and semi-skilled workers, contributing significantly to the national economy.
Key Reasons to Invest
- Strong Domestic Market: Bangladesh’s population of over 170 million provides a vast market for essential and generic medicines.
- Export Opportunities: Duty-free access to many developing and least-developed countries.
- Government Support: Tax holidays, reduced import duties on machinery, and export incentives.
- Skilled Workforce: Thousands of pharmacists and chemists graduate annually.
- Low Production Cost: Labor, utilities, and raw materials are affordable compared to neighboring countries.
Types of Pharmaceutical Products to Manufacture
| Category | Description | Examples |
|---|---|---|
| Tablets | Most common dosage form | Paracetamol, Metformin, Azithromycin |
| Capsules | Used for antibiotics, vitamins | Amoxicillin, Omeprazole |
| Syrups | Suitable for children and liquid formulations | Cough syrups, Iron supplements |
| Ointments & Creams | External application products | Antifungal creams, Pain relief gels |
| Injections | For hospital and clinical use | Ceftriaxone, Insulin |
| Herbal & Nutraceuticals | Growing demand in local and export markets | Multivitamins, Herbal tonics |
Location Selection
When selecting the project site, consider the following:
- Proximity to Dhaka or major industrial zones like Tongi, Savar, or Gazipur.
- Easy access to utilities (electricity, gas, water).
- Availability of skilled manpower.
- Good transportation facilities for raw material supply and product distribution.
Land and Building Requirements
| Particulars | Area (sft) | Estimated Cost (BDT) |
|---|---|---|
| Land (1 acre) | 43,560 | 60,000,000 |
| Factory Building (2-storied, RCC) | 20,000 | 40,000,000 |
| Administrative Office | 5,000 | 10,000,000 |
| Warehouse | 6,000 | 8,000,000 |
| Utility Section & Others | 3,000 | 5,000,000 |
| Total | — | 123,000,000 |
Machinery and Equipment
A modern pharmaceutical factory needs high-quality machinery for production, filling, labeling, and packaging.
| Machinery Description | Quantity | Estimated Cost (BDT) |
|---|---|---|
| Tablet Compression Machine | 2 | 15,000,000 |
| Capsule Filling Machine | 1 | 8,000,000 |
| Liquid Syrup Filling Line | 1 | 6,500,000 |
| Blister Packing Machine | 2 | 10,000,000 |
| Coating Machine | 1 | 4,000,000 |
| Granulation Equipment | 2 | 7,000,000 |
| Water Purification Plant | 1 | 5,500,000 |
| Air Handling & HVAC System | 1 | 12,000,000 |
| Quality Control Equipment | — | 6,000,000 |
| Utility Equipment (Boiler, Compressor, etc.) | — | 4,000,000 |
| Total Machinery Cost | — | 78,000,000 |
Production Capacity
| Product Type | Monthly Production | Annual Output |
|---|---|---|
| Tablets | 30 million pcs | 360 million pcs |
| Capsules | 10 million pcs | 120 million pcs |
| Syrups | 300,000 bottles | 3.6 million bottles |
| Ointments | 100,000 tubes | 1.2 million tubes |
The plant can operate for 300 working days per year, in two shifts.
Manpower Requirements
| Designation | No. of Persons | Average Monthly Salary (BDT) | Annual Cost (BDT) |
|---|---|---|---|
| General Manager | 1 | 150,000 | 1,800,000 |
| Production Manager | 1 | 100,000 | 1,200,000 |
| Quality Control Chemist | 2 | 80,000 | 1,920,000 |
| Pharmacist | 2 | 70,000 | 1,680,000 |
| Machine Operators | 6 | 35,000 | 2,520,000 |
| Helpers | 10 | 18,000 | 2,160,000 |
| Accountant & Admin Staff | 2 | 40,000 | 960,000 |
| Marketing & Sales Team | 5 | 45,000 | 2,700,000 |
| Security & Drivers | 4 | 20,000 | 960,000 |
| Total Annual Salary Cost | — | 15,900,000 |
Raw Materials and Packaging
Pharmaceutical production requires high-quality Active Pharmaceutical Ingredients (API) and excipients. APIs can be imported from China, India, or Europe, while local suppliers provide packaging materials.
| Item | Source | Annual Cost (BDT) |
|---|---|---|
| Active Ingredients | Imported | 40,000,000 |
| Excipients | Local/Imported | 15,000,000 |
| Bottles, Blisters, Cartons | Local | 10,000,000 |
| Labels, Foils, Caps | Local | 6,000,000 |
| Total Raw Material Cost | — | 71,000,000 |
Utility and Overhead Costs
| Item | Monthly (BDT) | Annual (BDT) |
|---|---|---|
| Electricity & Gas | 400,000 | 4,800,000 |
| Water | 50,000 | 600,000 |
| Maintenance | 150,000 | 1,800,000 |
| Marketing & Distribution | 300,000 | 3,600,000 |
| Transportation | 200,000 | 2,400,000 |
| Administrative Expenses | 250,000 | 3,000,000 |
| Total Overhead Cost | — | 16,200,000 |
Total Project Cost Estimate
| Description | Amount (BDT) |
|---|---|
| Land & Building | 123,000,000 |
| Machinery & Equipment | 78,000,000 |
| Furniture & Fixtures | 5,000,000 |
| Vehicles | 4,000,000 |
| Pre-Operational Expenses | 3,000,000 |
| Working Capital (6 months) | 50,000,000 |
| Total Project Cost | 263,000,000 |
Financial Analysis
A. Estimated Annual Income
| Item | Amount (BDT) |
|---|---|
| Tablets | 150,000,000 |
| Capsules | 60,000,000 |
| Syrups | 50,000,000 |
| Ointments | 30,000,000 |
| Total Annual Sales Revenue | 290,000,000 |
B. Estimated Annual Operating Cost
| Description | Amount (BDT) |
|---|---|
| Raw Materials | 71,000,000 |
| Salaries & Wages | 15,900,000 |
| Utilities & Overhead | 16,200,000 |
| Maintenance & Depreciation | 10,000,000 |
| Total Operating Cost | 113,100,000 |
C. Estimated Profitability
| Particular | Amount (BDT) |
|---|---|
| Gross Profit | 176,900,000 |
| Administrative & Financial Cost | 25,000,000 |
| Net Profit Before Tax | 151,900,000 |
| Tax @ 20% | 30,380,000 |
| Net Profit After Tax | 121,520,000 |
Net Profit Margin: Approximately 42%
Payback Period: 2.5 to 3 years
Internal Rate of Return (IRR): 28–30%
Regulatory Approvals and Licensing
Before starting a pharmaceutical manufacturing project in Bangladesh, the following licenses and approvals are necessary:
- Drug Manufacturing License – from the Directorate General of Drug Administration (DGDA).
- Environmental Clearance Certificate – from the Department of Environment.
- Trade License – from local authority.
- Factory License – from the Department of Inspection for Factories and Establishments.
- Fire License – from the Fire Service and Civil Defense Department.
- VAT and TIN Registration.
- Import Registration Certificate (IRC) – for raw materials.
SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| Strong domestic demand | High setup cost |
| Skilled professionals | Limited local API production |
| Export potential | Complex regulatory compliance |
| Opportunities | Threats |
|---|---|
| TRIPS exemption till 2033 | Global competition |
| Increasing health awareness | Exchange rate fluctuation |
| Export incentives | Policy inconsistency |
Implementation Schedule
| Activity | Duration (Months) |
|---|---|
| Land Acquisition & Design | 2 |
| Civil Construction | 6 |
| Machinery Procurement | 3 |
| Installation & Testing | 2 |
| Recruitment & Training | 1 |
| Trial Production | 1 |
| Total Implementation Time | 12–14 months |
Environmental and Safety Considerations
Pharmaceutical manufacturing requires strict adherence to Good Manufacturing Practice (GMP) and environmental guidelines. Proper ventilation, air filtration, and waste management systems must be installed. Chemical waste should be treated through an Effluent Treatment Plant (ETP) before disposal.
Safety training for all employees is mandatory. Regular inspections ensure that no contamination or spillage harms the environment.
Marketing Strategy
- Domestic Market: Partner with hospitals, clinics, and pharmacies.
- Export Market: Target LDCs (Least Developed Countries) with competitive pricing.
- Branding: Emphasize product quality, GMP certification, and WHO compliance.
- Promotion: Use medical representatives, digital platforms, and medical journals.
Financial Summary
| Particulars | Value (BDT) |
|---|---|
| Total Investment | 263,000,000 |
| Annual Sales Revenue | 290,000,000 |
| Annual Operating Cost | 113,100,000 |
| Net Profit After Tax | 121,520,000 |
| Payback Period | 2.5–3 Years |
| ROI | 46% |
Call to Action
If you are planning to set up a Pharmaceutical Manufacturing Project in Bangladesh or abroad, you need a detailed bankable project profile that satisfies investors and financial institutions.
We, RAYHANS, specialize in preparing complete project profiles, financial feasibility reports, and investment documentation for both local entrepreneurs and foreign investors.
Our expert team designs every project with updated cost data, real market analysis, and financial ratios approved by Bangladeshi banks, BIDA, and international lenders.
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- Feasibility study with market and financial analysis
- Machinery sourcing and cost estimation
- Implementation planning and consultancy
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📧 Email: [email protected]
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