Newsweek report
Excellence and ethics sustain Bangladesh's top business house Transcom
In its latest issue, the renowned US magazine Newsweek has highlighted various aspects of Bangladesh's economic growth. It said, "The country's rapidly expanding industrial and consumer bases are the driving force behind the growth, and they will continue to play a pivotal role in the future."
Referring to the World Bank data, it said that in Bangladesh, the contribution of the manufacturing sector to the GDP had tripled over the past decade, from USD 18.6 billion in 2010 to USD 57.3 billion in 2020. Annual household spending rose from USD 258 billion to USD 582 billion in the same period.
"And for leading domestic conglomerates, this is only the beginning," wrote Newsweek, highlighting the contribution of Bangladesh's top business houses to the economy. Along with Transcom Group, it also mentioned Concord Group, United Group, Hosaf Group, Envoy Group and others.
In describing the Transcom Group, the magazine said, "Excellence and ethics sustain Bangladesh's top business house Transcom."
It went on to say that Transcom was "active across a broad spectrum of economic sectors, including healthcare, fast-moving consumer goods, food and beverage, media, electronics, logistics, and distribution." Transcom Group CEO Simeen Rahman attributed the group's success to its core values of ethics, quality, trust and sustainable business.
Simeen Rahman said, "A milestone that encapsulates who we are as a group was when in 2012, our founder-chairman Latifur Rahman, was given the Oslo Business for Peace Award which is the most celebrated recognition in the global business community, for ethically building this conglomerate while also creating value for society. This is where our strength comes from and this is the legacy our chairman has left us. Along with these values, we have a clear direction of being formidable players in every industry and, of course, quality must never be compromised."
These values and its competence in the field have made Transcom a great favourite among international brands wanting presence in Bangladesh. The Newsweek article highlights the example PepsiCo, saying, "In 2000 Transcom took over the Pepsi beverages franchise in Bangladesh, taking control of managing and manufacturing of PepsiCo's Bangladesh business at which time Pepsi had a limited presence in the country. Under Transcom's ownership, Pepsi became the dominant beverage business in Bangladesh, with the largest single market share." Transcom became Pepsi's International Bottler of the Year in 2009 and 2016.
Transom's international partnership today ranges across from of the top brands in the world including Whirlpool, L'Oreal, Frito-Lays, KFC, Pizza Hut, Abbot, Mars and more.
"Pharmaceuticals are another strength, after which the group acquired the multinational SmithKline & French's Bangladesh operations in 1990, renaming the company Eskayef Pharmaceuticals Ltd," the Newsweek article continued. The group is also a dedicated distributor for Novo Nordisk, a major multinational pharmaceutical company, since 2008. In 2012 Eskayef began manufacturing life-saving insulin vials for the firm and in 2017 signed an agreement with Novo Nordisk to manufacture its cutting edge penfill insulin, becoming the first company in the world to do so as a manufacturing partner for Novo Nordisk.
Simeen Rahman said, "Eskayef has received all the necessary international regulatory approvals from the most stringent bodies in the world, such as the US FDA, UK MHRA, European Medicines Agency, Brazil Anvisa, TGA Australia, South Africa SAHPRA to name a few. " She said Eskayef maintained international standards and implemented best global practices.
The magazine went on to say that business diversification and top-quality manufacturing have helped the group expand its presence beyond Bangladesh, and Transcom, through Eskayef, now has presence in 67 countries.
"It is the largest media house in the country, and once again, it is doing business the right way: Transcom's media arm is entirely independent editorially, a rarity for the region," Newsweek elaborated.
Newsweek quotes Simeen Rahman who has a simple explanation for Transcom's success: "We believe the most important asset of Transcom Group is its people, so we are always investing in talent."
The company has a significant role in creating employment in the country. It has around 20,000 people working in the group. Revenues remained robust, despite the pandemic, having grown to over USD 1 billion.
"During the pandemic, we had a clear mission to stand by humanity," said Simeen Rahman, "Eskayef launched the first generic in the world for the three most effective anti-viral drugs shortly after emergency approvals by the global regulatory authorities."
Beyond industry and manufacturing, the group also has an established presence in media, and owns two newspapers, Prothom Alo founded in 1998 and The Daily Star in 1991. "It is the largest media house in the country, and once again, it is doing business the right way: Transcom's media arm is entirely independent editorially, a rarity for the region," Newsweek elaborated.
The Transcom CEO sees digital development and artificial intelligence as crucial components to the group's future business strategy. She says, "In our media business, for example, we're seeing that the readership is shifting from print to digital, and we're investing in technology."
As she looks to the future, writes Newsweek, Simeen Rahman has three key objectives for the business: to achieve exponential growth in its existing industries, expand Transcom further globally through Eskayef Pharmaceuticals, and focus on technology and the next big growth areas. And, she adds, Transcom's core values will provide the guiding light for the next growth phase.