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6. Sarkar Metal
Stories
November 2, 2025

SMART project driving growth through eco-friendly innovation in light engineering sector

In Bangladesh, the light engineering sector plays a vital role in the national economy, but it also faces significant challenges. Many of its microenterprises operate with outdated, resource-intensive technologies that contribute to environmental pollution and limit profitability. The story of Sarkar Metal & Engineering, a small foundry in Bogura, highlights a path of transformation that addresses these issues through Resource-efficient and Cleaner Production (RECP) practices, proving that environmental responsibility can lead to economic viability. It is a testament to how targeted support and strategic partnerships can transform an entire industry, one enterprise at a time.

Founded in 2015 by Md Shihab Uddin Sarkar, the company initially used a coal-powered foundry to produce parts for large industrial clients like RFL. While the business started with promise, by 2020 it faced a crisis. The market for its primary product, tube-wells, had collapsed, and soaring electricity costs, which had doubled from BDT 5 to 10 per unit, made the business model unsustainable. Faced with the risk of closure, Sarkar’s once-promising venture stood on the edge of survival for a substantial period of time.

In 2024, Sarkar attended a workshop on RECP technology organized by Gram Unnayan Karma (GUK) under the Sustainable Microenterprise and Resilient Transformation (SMART) project. The workshop presented a new perspective: that cost reduction and environmental protection could go hand in hand. Inspired and determined, Sarkar decided to reinvent his business.

PFI panel helps reduce the loss of electricity in the workshop
Workers running the newly-installed induction furnace

With support from the SMART project, Sarkar received hands-on training in RECP practices, e-commerce marketing, and environmental certification. Backed by a BDT 10 lakh Common Service loan from GUK and a grant for an automated induction furnace, he made a strategic move. He replaced his polluting coal-based foundry with automated induction technology.

This was more than an upgrade, a fundamental shift. The change resulted in reduction of production costs, a significant improvement in product quality, and a near-zero reduction in waste generation. Beyond the technology, Sarkar implemented modern waste management practices and planted over 1,200 timber and fruit trees on his property. He also focused on his employees’ well-being, providing safety equipment and occupational health training. As Sarkar himself reflected, “This wasn’t just an upgrade—it was a complete transformation. Production costs fell by 20-30%, product quality soared, and waste generation dropped to nearly zero. My foundry became not just a workplace, but a model of safe, sustainable, and climate-resilient industry.”

The transition from a coal-powered cupola furnace to an automated induction furnace offers a clear set of benefits. A cupola furnace produces a raw material waste of about 10% and emits approximately 550 kg of CO2 per ton of material produced. In contrast, an induction furnace reduces raw material waste to about 5% and has no direct emissions. While the cupola furnace is limited to producing cast iron and requires 250 KWh of electricity plus 100 kg of coal per ton, the induction furnace is more versatile, capable of processing steel, cast iron, aluminum, copper, and brass. It requires 1000 KWh of electricity per ton, but eliminates the need for coal and its associated costs and pollution.

Infographics: Cupola vs Induction furnace

The success of Sarkar Metal & Engineering is part of a larger, coordinated effort. According to A. K. M. Mahfuzur Rahman, Deputy General Manager of the Bangladesh Small and Cottage Industries Corporation (BSCIC) in Bogura, the government has long been working to address key challenges in green manufacturing. Rahman notes that these include “a significant lack of awareness among entrepreneurs about sustainable practices, insufficient legal frameworks and enforcement mechanisms, limited technical knowledge regarding clean production methods, inadequate financial capacity among microenterprises to invest in green technologies, and poor coordination between various government agencies and development partners.”

He believes the SMART project’s collaborative approach has aligned well with national goals. “Working hand-in-hand with BSCIC, the project has initiated comprehensive activities to sensitize light engineering entrepreneurs through strategic observation of national and international environmental days, targeted awareness campaigns, and regular stakeholder meetings. This approach has proven highly effective in bridging the gap between policy intentions and ground-level implementation.” Rahman adds that he is particularly impressed by how the project “ensures both work-friendly environments and green growth through targeted support mechanisms.”

The partnership behind the SMART project involves the World Bank, Palli Karma-Sahayak Foundation (PKSF), and GUK. Dr Md Mahbub Alam, Senior Director at GUK, describes this collaboration as pivotal. “The partnership with the World Bank, PKSF, and Gram Unnayan Karma (GUK) has been crucial in driving success by combining international expertise, national policies, and grassroots networks. The World Bank and PKSF provided technical guidance and ensured an effective financial mechanism, and GUK delivered community-level support. This multi-tiered model enabled comprehensive assistance ranging from awareness and training to sustainable financing reaching entrepreneurs previously excluded from traditional development programs.”

A K M Mahfuzur Rahman, DGM and District Head, BSCIC, Bogura
Md Shihab Uddin Sarkar, Owner, Sarkar Metal & Engineering

Dr Alam highlights the sustainability of RECP practices. “The outstanding economic benefits we have achieved including impressive cost reductions of 20-30% and exceptional product quality improvements create powerful momentum for widespread adoption. The dynamic peer-to-peer learning networks, exemplified by inspiring success stories like Sarkar’s foundry transformation, are generating an unstoppable wave of knowledge sharing and continuous innovation.”

Sarkar’s transformation has made his business a local leader in green industrial practices. He now shares his knowledge with other foundry owners, promoting eco-friendly methods. His vision continues to grow, as he plans to add a heat treatment plant, a metal testing lab, and a solar energy system.

GUK is working to provide financial and technical support to 1,000 microenterprises in Bagura and Naogaon districts under the ‘Promoting Sustainable Growth in Machinery and Equipment Sub-Sector through RECP Practices’ sub-project of the SMART project. With support from the government of Bangladesh and the World Bank, PKSF is implementing the SMART project across the country to support around 80,000 microenterprises in Agriculture, Manufacturing and Processing, and Service sectors within 2028. The main objective of the project is to increase resource-efficient and resilient green growth of microenterprises.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
6 Reuse of wastewater and water efficiency
Stories
October 28, 2025

From brick kilns to concrete blocks: The green transition of Orange Concrete Block Factory

The contribution of construction sector in a country’s economic growth is undeniable. Traditionally the sector is mostly reliant on the use of bricks produced in large brick kilns that consume fertile topsoil and responsible for significant carbon emissions since it burns a lot of fossil fuel including wood and coal. This practice harms agricultural land and public health on a significant scale. The story of Md Asad Hossain Orange, an entrepreneur from Thakurgaon, provides a clear example of how strategic intervention can lead to a more sustainable and profitable business model, proving that economic development and environmental sustainability can be mutually reinforcing.

For years, Orange managed his family’s two traditional brick kilns, which provided a steady income but came at a high environmental cost. His business consumed approximately 900,000 kg of fertile topsoil and emitted 2,885 tons of CO₂ annually from coal burning. The environmental damage was significant, leading to farmer protests and the degradation of farmland. On a business level, the traditional process resulted in a low-quality product, with about 40% of bricks cracking during firing. The government also took initiatives to reduce the use of bricks, considering its negative impact on environment. Thus, he was excluded from government tenders that required eco-friendly materials, limiting his market opportunities. His primary goal was to continue his family’s business profitably while also reducing its environmental harm and becoming eligible for government contracts. He knew the negative impact of the brick kilns but could not help continuing, since he had no other options.

Orange's factory is equiped with state of the art automatic block making machinge
A power factor improvement (PFI) panel is installed to reduce system loss and, thereby, energy cost

In September 2024, the ESDO SMART team visited Orange’s brick kilns and introduced him to the concept of making eco-friendly concrete blocks. This demonstration was a turning point. Realizing the extent of his business’s negative impact on the environment and immense opportunity of concrete blocks, he was motivated to join the project and transform his operations.

Through the SMART project, Orange received comprehensive financial and technical support. He took a loan of BDT 800,000 from the project and was enrolled in residential, hands-on training sessions on resource-efficient block production for himself, his technicians, and masons. The training covered advanced technologies, fire safety, and occupational health standards. He also received guidance on proper production technique, business and product certification to meet market standards.

He started block production and faced some challenges. The machines run on electricity and the raw materials are not so cheap. So, the profit margin was not up to his expectation. The SMART project officials, introduced him with Resource-Efficient and Cleaner Production (RECP) practices. 

Orange implemented several RECP technologies and practices. He installed a Power Factor Improvement (PFI) system to reduce electricity consumption, built a Dyke Wall storage for raw materials to minimize air emissions, and created a wastewater recharge pit to reuse water instead of discharging it. These changes led to significant results: his electricity bills dropped by 30%, raw material waste was reduced by 15%, and 20,000 liters of water were reused monthly.

The workers reuse thousands of liters of water for curing the blocks
Fly ash from the rice mills is used in block production, an efficient use of waste materials

Most importantly, his transition to concrete blocks now saves over 4,300 tons of topsoil annually compared to traditional brick kilns.

Beyond the numbers, the impact has been personal and communal. Orange no longer feels the guilt of harming the environment. He notes that air quality has improved, and farmland has been restored, allowing his neighbors to resume farming, with one neighbor recently harvesting 40 mounds of rice. His workers now enjoy safer conditions and improved health.

The success of Orange’s business is a direct result of a strategic collaboration. As Engineer Nazmul Haque, Assistant Engineer at the Public Works Department (PWD) in Thakurgaon, notes, the SMART project created a breakthrough by combining World Bank financing with technical support for RECP. “The transition of Orange Concrete Block Factory alone now saves over 4,000 tons of topsoil every year, and this successful model is already being scaled up in several districts under the National Adaptation Plan 2050,” Haque stated.

The Executive Director of ESDO, highlighted the vision behind the project, “For years, Bangladesh’s construction sector relied on traditional brick kilns — consuming fertile topsoil, emitting carbon, and harming communities. This was not sustainable for our farmers, our workers, or our environment. Today, they are not just producing blocks, they are producing hope, resilience, and sustainability.” He stated that the World Bank provided strategic guidance and financing, while PKSF ensured accountability and strong coordination. This synergy allowed ESDO to effectively channel resources to entrepreneurs, empowering them to adopt new technologies and access markets.

Engineer Nazmul Haque, Public Works Department
Micro-entrepreneur Md Asad Hossain Orange

The SMART project has shown that addressing a pressing challenge like balancing urbanization with climate resilience is possible through an integrated approach. The project’s success is driven by its combination of training, technology adoption, and market linkages. By providing policy support, financial access, and technical guidance, it has reduced the barriers for entrepreneurs to adopt green business models.

Orange now aims to scale up his eco-friendly block production and expand into wider markets. He plans to continue adopting innovative RECP practices to strengthen the sustainability of his business. The project’s results, visible in Orange’s transformation, suggest that with sustained support, these eco-friendly practices can move from a pilot to the new standard for Bangladesh’s construction sector.

ESDO is working to provide financial and technical support to 1,200 microenterprises in eight districts in the northern region. However, two other Partner Organizations supporting a total of 600 block-producing microenterprises through similar sub-projects of the SMART project in the southern parts of the country. With support from the government of Bangladesh and the World Bank, PKSF is implementing the SMART project across the country to support around 80,000 microenterprises in Agriculture, Manufacturing and Processing, and Service sectors during within 2028. The main objective of the project is to increase resource-efficient and resilient green growth of microenterprises.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
_DSC9435
Stories
September 7, 2025

Smart solutions for big savings and cleaner production in dairy farming

The sky over Rasulpur village in Bhola district was a canvas of soft, cotton-like clouds, a gentle reminder of the recent rain. The path to Sajeda Khatun’s tin-shed home was muddy, but the journey revealed a story of transformation. We walked down the road to meet Sajeda Khatun. At 42, she is a dedicated dairy farmer and a member of SMART project’s Cattle and Buffalo sub-sector, and has turned challenges into triumphs with strategic support from the project.

Before joining the SMART project, Sajeda faced daily struggles in managing her 14 cattle, including 8 milch cows that produced around 60 liters of milk daily. She needed 360-370 kg of fodder, but a significant 30-40 kg went to waste each day because she had to manually chop it. Her reliance on purchasing expensive concentrated feed from the local market further squeezed her profits. The process was labor-intensive, costly, and inefficient.

Recognizing her potential and need for sustainable practices, the SMART project provided Sajeda with a BDT 1 lakh loan and a small grant. This crucial assistance enabled her to adopt two key Resource-Efficient and Cleaner Production (RECP) practices: self-processing feed using a multifunctional feed processing machine and waste disposal pit. She invested in a modern feed processing machine and installed a waste disposal pit.

The impact was immediate and profound. “I used to buy over 360 kg of fodder every day, and more than 40 kg was wasted because I had to cut it by hand,” Sajeda explained, her voice now filled with relief. “Now, with the processing machine, there’s virtually no waste. Plus, I don’t have to buy concentrated feed anymore; I make it myself, saving about BDT 15 per kg!”

This simple yet effective change drastically reduced her daily fodder use to about 330 kg, with minimal wastage. By crushing her own concentrate feed, she saves BDT 10-15 per unit. These savings, coupled with reduced labor and time, have significantly boosted her farm’s profitability and given her more time to manage her household, which includes her husband, two sons, and one daughter.

Sajeda’s farm now stands as a model of efficiency. Her ability to produce most of her feed on-site has made her less vulnerable to market price fluctuations. In an inspiring display of entrepreneurial spirit, she also offers fodder chopping and feed grinding services to other farmers in Rasulpur, generating additional income and strengthening community ties.

Looking ahead, Sajeda Khatun is filled with aspirations. She hopes to expand her herd of milch cows and invest in advanced dairy machinery, such as milking machines, to further enhance her farm’s productivity. Her journey from a struggling farmer to a successful, environmentally conscious entrepreneur highlights the transformative power of targeted interventions and the resilience of individuals like Sajeda, who are building a greener, more prosperous future for themselves and their community.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
3
Stories
April 30, 2025

Jharna’s farm: A unique example of cleaner production

Jharna Akter (46), a dedicated entrepreneur from Kabutar Khola village in Srinagar, Munshiganj district, has proven that even the toughest obstacles can be overcome with the right approach and technology. Despite her long experience in cattle rearing, she faced severe social discontent and harsh reality due to poor waste (cow dung) management on her farm. With support from PKSF’s Sustainable Microenterprise and Resilient Transformation (SMART) project, Jharna has transformed her farm into a clean, profitable, and socially acceptable model.

Today, Jharna’s farm houses 12 cows, producing about 60 liters of milk daily, which serves as the main source of income for her family. Previously, she used to store cow dung beside the farm, causing the pond next to it to overflow into neighboring paddy fields. Located by the roadside, her farm’s waste created unbearable stench and environmental pollution. Eventually, complaints from neighbors and an order from the local union council chairman forced Jharna to consider shutting down her farm.

In this critical situation, a new opportunity emerged when she connected with the officials of the SMART project, implemented in the field by Resource Integration Center (RIC), a PKSF Partner Organization. Through them, she learned about the project’s Resource-Efficient and Cleaner Production (RECP) practices and how efficient resource use and improved waste management could make her farm sustainable and environmentally friendly.

Beginning of a new chapter: After joining the SMART project, the sub-project officials facilitated a solution by arranging for Md Mobarak Hossain, a local organic fertilizer producer, to purchase the dung from Jharna’s farm. Jharna shared, “The dung that almost forced me to shut down my farm is now being sold for money — something I never imagined. I learned from the project officials that Mobarak Hossain produces organic fertilizer commercially and sells it both locally and nationally.”

Inspired by this new income opportunity, Jharna decided to venture into organic fertilizer production herself. She took a loan of BDT four lakh from the Partner Organization under the SMART project. With project support, she established a biogas plant, a waste pit, and a vermicompost unit on her farm. She now uses biogas for cooking, and waste management is no longer an issue.

Additionally, she installed transparent sheets on the roof to reduce electricity costs, introduced net ventilation to improve indoor air quality, and fitted nozzles and foggers to ensure moderate water usage. These measures have significantly reduced the wastage of electricity, water, and fodder, while lowering environmental pollution. Consequently, her farm has maintained business growth while preserving environmental sustainability.

Taste of success: These interventions have not only reduced operational costs but also significantly boosted Jharna’s income. With further support from the SMART project, the health of her livestock has improved through regular balanced feeding, timely vaccinations, and deworming.

Seeing her success, other farmers in the area are now eager to adopt RECP practices, reinforcing the potential for a cleaner, more sustainable agricultural sector. Jharna proudly says, “The dung that almost closed my farm is now my source of income!”

Jharna Akter’s journey is more than just the transformation of a farm — it stands as a testament to how the right support and awareness can turn challenges into opportunities. Today, her farm shines as a model of clean and sustainable production.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
poultry-nipple-drinker-swiiflo (17)
Stories
January 29, 2025

Enhancing water use efficiency in poultry production

|| Md Jafar Eqbal, Senior Program Manager (Livestock), SMART project, PKSF||

In 2024, the global chicken population exceeded 34 billion, surpassing the human population of approximately 8 billion by over four times. Bangladesh ranks 13th among the world’s top poultry producers, with 312 million chickens, as per World Stat 2024. This immense poultry production places significant pressure on natural resources, such as water, energy, and materials, and brings forth environmental challenges like waste, wastewater, and air pollution.

The SMART project, implemented by PKSF, focuses on improving environmental sustainability within Bangladesh’s microenterprise sector, with poultry identified as a priority subsector. Among the six targeted environmental indicators under the SMART project, water use and wastewater management are key areas of intervention. Enhancing water use efficiency in poultry production is critical for the welfare and productivity of birds and ensuring the sustainability of poultry microenterprises.

Strategies to improve water efficiency

Optimized Cleaning Practices

  • Scrape yards to remove dirt before washing.
  • Use high-pressure washing systems to reduce water use.
  • Separate wastewater collection, storage, and application systems.
  • Introduce recycling systems to reuse water.

Efficient Drinking Water Management

  • Conduct regular maintenance of water systems.
  • Use appropriately dimensioned drinker installations.
  • Install suitable nozzles and valves.
  • Optimize feed formulation to reduce water intake and nutrient excretion.
  • Incorporate nutritional technologies like amino acids and enzymes to improve animal performance.

Water quality and disease prevention

Ensuring clean drinking water is critical for poultry health. Contaminated water can transmit diseases such as Salmonella and E. coli, resulting in significant economic losses and potential public health concerns. Regular water quality checks and appropriate treatment are essential to prevent disease outbreaks and maintain flock health.

In poultry production, a single contaminated water source can affect thousands of birds, emphasizing the need for robust water management practices. Farmers can prevent diseases and reduce costs by ensuring water quality, ultimately increasing profitability and sustainability.

The role of SMART project

The SMART project continues to promote innovative practices such as automatic drinking systems and optimized cleaning techniques to enhance water use efficiency in the poultry sector. By integrating sustainable water management practices, the initiative contributes to the resilience and growth of Bangladesh’s poultry microenterprises, ensuring environmental and economic benefits.

Through innovative practices and proper water management, poultry farmers can significantly improve resource efficiency and reduce environmental impacts while ensuring sustainable and profitable operations.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
6 Footwear CS Center
Stories
November 3, 2024

How Shared Facilities Act as Catalyst for Sustainable Growth in Microenterprises

In the dynamic landscape of Bangladesh’s economy, microenterprises play a crucial role. Despite their potential, these small-scale enterprises often face significant barriers in accessing advanced technologies and sustainable practices. Shared facilities in Common Service centers, however, present an innovative solution to this challenge, enabling effective transfer of appropriate technologies and fostering sustainable development.

Addressing technology-access barriers

One of the primary obstacles microenterprises encounter is the lack of access to modern machineries and advanced technologies due to financial constraints. Shared facilities alleviate this issue by providing common access to high-cost equipment and technologies that individual micro-entrepreneurs might not afford independently. For instance, in the Bhairab shoe manufacturing cluster, a Footwear Common Service Center established under the Sustainable Enterprise Project (SEP) helped MEs to access high-cost technologies like Shoe Master software, Laser Cutting, Beam Cutting, Pearl Setting machines. Additionally, recycling units established under the under the Common Service facility enabled local businesses to recycle about 700 tonnes of footwear waste annually, transforming waste management practices and promoting sustainability.

Enhancing technical capacities and overcoming knowledge barriers

Shared facilities do more than just providing access to equipment; they serve as hubs for technical training and capacity building. By offering training on Resource-Efficient and Cleaner Production (RECP) practices, these facilities help micro-entrepreneurs adopt environment-friendly methods. In Bhairab, training programs conducted in the Footwear Common Service Center of POPI has educated workers on modern technologies and health hazards associated with their activities and the importance of using protective equipment, significantly improving workplace safety and productivity. It also provides centralized access to market information, networking opportunities, and ongoing support, bridging gaps between market accessibility and knowledge. The regular meetings and workshops held at these facilities ensure that micro-entrepreneurs stay updated on market trends, technological advancements, and best practices, empowering them to make informed decisions and enhance their competitive edge.

The footwear common service center provides state of the art technology support for the microenterprises of Bhairab
Micro-entrepreneurs can have computerized and customed design from the common service center at an affordable cost

Fostering innovation and collaboration

Shared facilities encourage collaboration among micro-entrepreneurs, leading to the exchange of ideas and fostering innovation. When multiple businesses operate within the same space, they can share experiences, solve problems collectively, and develop innovative solutions tailored to their specific needs. This collaborative environment is essential for the continuous improvement of products and processes, driving the overall growth of the microenterprise sector.

Economies of scale and market access

By centralizing resources, shared facilities help microenterprises achieve economies of scale. This collective approach reduces the per-unit cost of production and increases efficiency, making it easier for small businesses to compete in larger markets. Additionally, shared facilities can help micro-entrepreneurs obtain necessary certifications and meet quality standards required by formal buyers, thereby expanding their market reach both nationally and internationally.

Environmental and economic sustainability

The adoption of shared facilities also aligns with the principles of a circular economy, promoting both environmental and economic sustainability. For example, recycling units in Bhairab not only manage waste efficiently but also create new revenue streams through the production of recycled products. This dual benefit of environmental conservation and economic gain underscores the importance of shared facilities in fostering sustainable development.

Shared facilities play a pivotal role in transferring appropriate technologies among microenterprises in Bangladesh. By providing access to advanced machinery, fostering technical skills, encouraging collaboration, and supporting sustainable practices, these facilities enable small businesses to overcome significant barriers and thrive in a competitive market. The success seen in clusters like Bhairab’s shoe-manufacturing sector illustrates the transformative potential of shared facilities, highlighting their importance in driving sustainable economic growth and environmental stewardship. As Bangladesh continues to develop its microenterprise sector, expanding and enhancing shared facilities will be crucial to ensuring long-term sustainability and prosperity.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)