Deshbandhu invests Tk 800cr to expand in export markets
Deshbandhu Group invested around Tk 800 crore in the last one year despite the business uncertainty caused by the coronavirus pandemic as it looks to expand its footprint in the overseas markets.
At a time when many companies put a halt to their investment plans, Deshbandhu continued to invest in its food, beverage, packaging, garment, and other entities.
Of the Tk 800 crore, around Tk 200 crore was invested in its food and beverage concern. Export-oriented Deshbandhu Packaging received an investment of Tk 230 crore, the sweaters and apparel concerns Tk 250 crore, and other concerns around Tk 120 crore.
“We want to serve the people and Bangladesh, so we continued to invest even in tough times,” said Md Zakir Hossain, a director of the group.
“We want to strengthen our footprint,” he told reporters during a media tour to a factory of Deshbandhu in Narsingdi last month.
Deshbandhu is one of the largest conglomerates in Bangladesh. It is engaged in the manufacturing and marketing of sugar, food, beverage and cement, and also has business concerns in the textile, real estate, shipping, hospitality, media, and healthcare sectors.
The annual turnover was Tk 2,400 crore in the last financial year.
Deshbandhu has an 11 per cent market share in the country’s beverage industry, according to Mohammad Maruf Hossain, general manager of Deshbandhu Food and Beverage.
“It will reach 25 per cent by 2022 after the installation of new machinery,” he said, adding that the installation had almost been completed.
The new equipment will double the production capacity of Deshbandhu Food and Beverage, which can produce 24,000 bottles of beverage per hour now, Hossain added.
At present, the company exports beverage items to several countries, including India, Thailand, Malaysia, and the United Arab Emirates.
“We have plans to export to the northeastern states of India massively because it is a potential market for us,” Hossain added.
The group’s packaging concern is entirely export-oriented and its product has huge demand in overseas markets.
“The concern is growing at a healthy clip, so we have gone for the investment,” said Shafiul Azam Talukder, export in charge of Deshbandhu Packaging.
In March, Deshbandhu Group announced it would raise $250 million, or Tk 2,100 crore, from international investors by issuing a sukuk, an Islamic financial certificate, as the conglomerate looks to expand its business and repay local debts.
The group will invest part of the fund to establish a factory in Sirajganj to produce polyester chips and polyester staple fibres, which will be exported to European and American markets.
In October, Deshbandhu Polymer, a listed concern of the group, decided to raise Tk 500 crore through the issuance of a sukuk in Bangladesh.