Malik Mohammed Sayeed
CEO
Square Toiletries Ltd.

The Daily Star (TDS): Could you provide an overview of your company's current position and performance in the cosmetics and toiletries sector?

Malik Mohammed Sayeed (MMS): Square Toiletries Limited has been a leading FMCG company in Bangladesh since 1994. Over the years, we have earned the trust of millions of Bangladeshi consumers through consistent quality and a strong commitment to our customers. Our broad range of products spans hygiene, hair care, skin care, baby care, and home care. In many of these categories, we lead the market with some of the country's most popular brands, such as Meril, Senora, Jui, and Maya.

TDS: How would you assess the current position and performance of local brands?

MMS: Globally, local companies are giving international brands tough competition. No one understands the needs of local consumers better than domestic manufacturers. For example, Senora proudly pioneered menstrual hygiene practices in Bangladesh, while Sepnil touched millions of lives during COVID-19.

Bangladeshi brands have evolved significantly over the years. They are now competing neck-and-neck with international brands, and we see this reflected in the market. In recent years, local brands have contributed over 40% to the FMCG market. We are leading in many categories such as hygiene, sugar substitutes, and baby care, and are highly competitive in others. Additionally, there are categories with immense potential for local brands. For instance, the growing preference for authentic natural products is being met by homegrown brands like MAYA.

TDS: What are the major challenges or barriers limiting the growth and expansion of the local cosmetics industry?

MMS: Per capita toiletries consumption in Bangladesh remains very low compared to neighbouring economies, which presents a huge opportunity for local brands. However, some significant barriers must be addressed.

One major challenge is our high dependency on imported raw materials. Currently, over 90% of raw materials are sourced from abroad. In an economy where the dollar's value has appreciated by around 50% over the last 3–4 years, this has created serious profitability issues. To counter this, we are increasingly sourcing and extracting quality local raw materials, particularly herbs, and infusing them into our product portfolio.

TDS: What are your company's current strategic priorities and future growth plans in the cosmetics sector?

MMS: Square Toiletries has achieved double-digit growth over the past few years, making strong business progress. Through effective product innovation and consistent quality, we are experiencing remarkable growth and traction in the soap, detergent, and hair oil markets. Moving forward, we plan to expand our product portfolio by infusing more natural ingredients, responding to the growing consumer demand for such products.

TDS: What policy changes or government support are needed to drive further industry growth?

MMS: To accelerate industry growth, targeted policy support is essential. Customs duties on certain bulk items used in the production of essential products like soaps, hair oils, and aerosols should be reduced. For example, reducing customs duty on soap noodles from 25% to 5% would make these products more affordable for 99% of Bangladeshis, especially those at the grassroots. Similar reductions should be considered for raw materials like RBD coconut oil and pressurised cans.