Meghna Group tops the billion-dollar club as BSRM returns

The Meghna Group of Industries (MGI) has topped the billion-dollar club in the export-import sector again. Besides, BSRM, a top company in the steel industry of the country, made a comeback to the club after a year. The controversial S Alam Group, which has been accused of looting money from the finance sector, failed to secure a position in the billion-dollar club this time. A total of eight industrial groups of the country were bracketed in the billion-dollar club in the export-import sector at the end of the 2023-24 fiscal.

This came up in an analysis of Prothom Alo of the data provided by the National Board of Revenue (NBR) on the export-import sector in the 2023-24 fiscal. The Meghna Group of Industries tops the ranking of the billion-dollar-conglomerates of the country. It is followed by the Abul Khair Group, City Group, Pran–RFL, BSRM Group, Square Group, TK Group and the Bashundhara Group respectively.

In the last fiscal, these eight conglomerates did business worth USD 12.23 billion together in the export-import centre. The amount was USD 13.66 in the 2022-23 fiscal. As such, the size of export-import has lessened by 10 per cent in the 2023-24 fiscal as compared to the previous fiscal.

Industrial raw materials, consumer products and capital equipment cover a major portion of the import products of these business groups. The list of export products includes food products, electronics, chemicals, readymade garments and knitwear. The big business conglomerates of the country struggled to import products due to the dollar crisis in the 2023-24 fiscal, which eventually caused a decline in the import. Therefore, many of the companies stressed on exports amid the dollar crunch. As a result, exports of many groups increased despite the decline in imports.

Billion dollar business in export and import means the annual transaction of these groups is greater than the size of export and import. The value added as a result of producing goods from raw materials manifolds the annual transaction of the companies.

Prothom Alo has prepared the list of the companies in billion-dollar clubs analysing two key sectors of foreign trade – export and import. The list has been made on the basis of the account on export and import of the mother companies of these business groups only. This analysis excluded their joint investments and the accounts of other companies outside the main group. Besides, the list excluded the foreign companies operating in the country.

The Meghna Group of Industries has been holding the top position among the business conglomerates for the last few years. The business group has been investing in new industries and importing raw materials to hold on to the top position. The group spent more than USD 2.61 billion (as per the official dollar exchange rate fixed by the customs) in the 2023-24 fiscal to import 7.2 million tonnes of raw materials and equipment.

The group imports raw materials, and capital equipment and their parts. The company exported products worth USD 17.47 billion. Of this, the company earned USD 81.7 million from exports and USD 93 million came from carrying products on ships. Overall, the group has transacted some USD 2.79 billion in export and import in the last fiscal. The company has paid some Tk 40.6 billion for import.

The Meghna Group of industry was founded by entrepreneur Mostafa Kamal around 47 years ago. ‘Fresh’ is the main brand of the group. Around 53,000 people work in this group. The business group has 50 factories in 22 sectors. The group also controls four private economic zones.

Speaking to Prothom Alo, Meghna Group chairman Mostafa Kamal said, “The prices of raw materials were low in the global market in the 2023-24 fiscal as compared to the past. Import also declined due to the fall in demand and restrictions imposed by the government.”

“However, we have been trying to increase the export of local products and services in the foreign market as well as the local market. Export is rising as a result of this,” the Meghna Group chairman added.

He feels there will be new investments once the existing situation and the prevailing business environment in the country improves. It will increase employment opportunities, he said.

The Abul Khair Group rose to the second place of the list toppling the City Group within a year. This group is the leader in the cement, rod and corrugated steel sheet industries. The group also has business in the sectors of tobacco, food products and tea. The leading business conglomerate spent more than USD 1.87 billion to import 9 million tonnes of raw materials and equipment. The company’s expenditure in the import sector rose as it raised its investment in the steel industry.

At the same, Abul Khair Group’s export doubled in the last fiscal to USD 43.5 million. Overall, the business group has transacted some USD 1.92 billion in export-import in the last fiscal. The business conglomerate has paid the government a total of Tk 33.96 billion.

Industry entrepreneur Abul Khair was the founder of Abul Khair Group. Abul Khair’s offspring took the group to the top, which started with a grocery shop in 1950.

City Group is in the third place of the billion-dollar club. The business group spent a total of USD 1.66 billion, including taxes, to import some 2.1 million tonnes of products. Some 95 per cent of this has been spent on importing raw materials for consumer products.

City Group exported products worth USD 10.08 million in the last fiscal. The export products include foods and edible oil. The overall transactions of this business group in the last fiscal stood at USD 1.67 billion in export and import.

The main business of this group is processing daily essentials and their marketing. Late business entrepreneur Fazlur Rahman founded the City Group in 1972. Fazlur Rahman passed away last year. Now the second generation is leading the group. The business conglomerate entered several new industries in the last two decades. The main brand of this group is Teer.

The Pran-RFL Group is in the fourth place of the list of billion-dollar companies. However, the Pran-RFL Group tops the list in terms of export once again.

This industrial group imported products worth USD 1.09 billion in the last fiscal. The import products include import substitutes and raw material for export-oriented industries. The business group exported products worth USD 365.3 million outside the garments products last fiscal. The business conglomerate exported garment products worth USD 79.6 million. Pran-RFL Group transacted a total of USD 1.59 billion in total in the last fiscal.

Speaking to Prothom Alo, Pran-RFL Group chairman Ahsan Khan Chowdhury said, “We have been trying to diversify the export market and products. We have been investing in that. Besides, a number of multifaceted initiatives also played a role behind the rise in our exports. At the same time, we are producing the raw materials and intermediary raw materials of a number of products inside the country now. As a result, import declined.”

Ahsan Khan Chowdhury further said, “We have a lot of barriers and limitations. Nevertheless, if we can represent Bangladesh in a positive way in the global arena, then the world will accept us more positively.”

The BSRM Group has secured a place in the list of top eight business groups in export-import through running businesses in the steel industries alone. BSRM controls a large portion of the iron-rod market in the country.

The business group has imported products worth more than USD 1.12 billion in the last fiscal. Some 76 per cent of these import products are iron scraps, intermediary raw material for rods. The group has exported products worth USD 15.6 million at the same time. The business group is led by the third generations of its owners.

BSRM Group managing director (MD) Aameir Alihussain told Prothom Alo, “We have the scope to do further better in the infrastructural sector. We have continued investing in the production of steel products, the main ingredient of this sector.”

“However, if we want to rise from the prevailing stagnant phase in the infrastructural industries in a quick time, then we will have to increase economic activities in the sector. Otherwise, investments will fall and there will be less employment opportunities.”

The Square Group, a top business conglomerate of the country, now exports products in more than 100 countries. The business group has exported products to 102 countries over the last two fiscals.

The group has imported products worth USD 700 million. The list of import products includes medicine, cosmetics, raw materials for garment and knitwear, spices and capital equipment. The business conglomerate has exported products worth USD 370 million. Readymade garments cover a major portion of the group’s export product.

In all, the group has transacted some 1.07 billion in export-import last fiscal. The Square Group progressed two notches ahead and is placed sixth in the list of billion-dollar business conglomerates.

Samson H Chowdhury was the mastermind behind the foundation of Square Group which was established by four friends in 1958. After his death, his sons are leading one of the oldest industries of the country.

Speaking to Prothom Alo, Square Textile chairman and managing director of Square Pharma, Tapan Chowdhury said, “We are gradually losing our ability to compete in the global market amid the rise in the expenditure in running business in the country. Therefore, we are not being able to realise our full potential. If the government provides policy assistance so that production cost remains steady and we can remain ahead in terms of competitiveness, then we will be able to further expand our export and market for our products. At the same time, both employment opportunities and investments will increase. We are passing through a stagnant phase in terms of drawing investments due to abnormal rise of expenditures.”

The T K Group of Industries has imported products worth more than 1.02 billion. The products imported by this business group include raw materials for consumers’ product and steel industries, including steel sheets and corrugated tins.

The business group has exported products worth USD 8.3 million. The export products include food products, processed rawhide and different industrial by-products. Overall, the group has transacted a total of USD 1.03 billion in export-import.

The T K Group of Industries was founded by two brothers – Mohammed Abu Tayab and Mohammad Abul Kalam – over half a century ago. The first ever factory in many sectors in the country was launched by this group during the early periods of industrialisation in the country.

The Bashundhara Group is at the eighth place in the billion dollar club. The industrial group imported raw materials and equipment worth USD 1.01 billion.

The group imports cement, consumer products, papers and raw materials for the bitumen industries. It has recently launched coal and stone businesses also. The group imported products worth USD 11.6 million.

The export products include food items, tissue, papers and some other products. In all, the business group has transacted a total of USD 1.02 billion in the last fiscal.

The much discussed and controversial S Alam group mainly got a place in the list in the 2022-23 fiscal by importing consumer products worth USD 1.4 billion, which declined to USD 810 million in the 2023-24 fiscal. Most of the imported products are consumer products. Due to the fall in imports, the company failed to make it to the list in the 2023-24 fiscal.

The demand for all sorts of products from daily essentials to industrial products is rising gradually. Capitalising on that, these billion-dollar groups have set up import substitution factories. Their main power is the local market.

However, these groups are now concerned over the dollar crisis that has been prevailing for more than two years. So the business conglomerates have also focused on exports like the Pran-RFL or the Square Group. However, the size of export of these groups is still negligible as compared to their import. But the export size of these companies is rising gradually.

Asked about this, private research agency Centre for Policy Dialogue (CPD) honorary fellow Mostafizur Rahman told Prothom Alo, the entrepreneurs have set up import substitution factories depending on the growing local market. And using this experience they have attained export competitiveness through developing product quality. This has resulted in a decline in the import of readymade products, which is a good aspect of industrialisation. But we also have to ensure that the small and medium industries can flourish as well. Then, they too will grow into big industries someday.

* This report appeared on the print and online versions of Prothom Alo and has been rewritten in English by Ashish Basu