Monday, November 19, 2012 BANGLADESH - The Worldfolio · part of the Indian subcontinent under ... the world and the United States is the number one importer of Bangladeshi products

Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

BANGLADESHLand of

opportunity

Monday, November 19, 2012See this re

port at world

folio.co.

uk

Our World

Bangladesh, less thana quarter of the sizeof Texas, is the heartof South Asia. Oncepart of the Indian

subcontinent under British ruleand then cut from India thusbecoming East Pakistan in1947, the People’s Republic ofBangladesh finally became anindependent nation in 1972 af-ter a bitter conflict over theright to use the Bengali lan-guage and the right to governthemselves democratically.

Since independence, thefighting spirit of the people haslived on, and despite their strug-gle with natural calamities andpolitical unrest, they have de-fied the odds and battled on tobecome a land of opportunity.

The now vibrant economyof Bangladesh (which hasgrown between 5% and 6% peryear since 1996) still remains awidely open market, but witha young population of approx-imately 160 million and itsstrategic position at the core ofSouth Asia, nobody can denythat this small country looksset for rapid development.

The Bangladeshi people aresome of the most hospitable inthe world, always welcomingwith a ready smile and happyto help. It is that nature whichmakes them excellent businesspartners and is propellingBangladesh into the limelightas the next destination for for-eign direct investment in a va-riety of sectors, as well as forjoint ventures that are provingto be exceedingly lucrative.

“When it comes to brand-ing, I think our new entrepre-neurs have a very goodopportunity now, particularlywhen it comes to working with

other large companies and ma-jor importers around theworld,” stresses Akramul Qad-er, Bangladeshi Ambassador tothe U.S.

Indeed, ‘Made in Bangla-desh’ is a label – not only for itswell-known ready-made gar-ments but also for pharmaceu-ticals and bone china, forexample – that is rapidly be-coming more commonplace.Currently Bangladeshi garmentmanufacturers are second on-ly to China in their offerings tothe world and the United Statesis the number one importer ofBangladeshi products.

According to AmbassadorQader, Bangladesh exported$4.23 billion worth of goods in2010-2011, despite the lack ofa free trade agreement – some-thing he would like to changein the future. “We had to paysomething like $657 million inpenalties, which is way too high

if you compare it to other coun-tries. If we were allowed dutyfree and quota free exports ofgoods, particularly garments,we could divert this to impor-tant areas including women’sempowerment,” he remarks.

Aside from partnering withlocal entrepreneurs, U.S. in-

vestors will find plenty ofplans and projects in need offoreign know-how and fund-ing. Once completed, thesewill only add to Bangladesh’sgrowing potential as a re-gional economic power andboost social development.

“I think the potential here iseasy to recognize and investorswill continue to come and in-vest in Bangladesh,” says Min-ister of Finance Abul MaalAbdul Muhith. “Billions of dol-lars need to be invested in pow-er, roads, highways andobviously in railways. So, we’reappealing for higher foreign

investment and higher foreignassistance. I must say we are re-ceiving strong responses frominvestors.”

With the eighth-largest population in the world,Bangladesh is certainly a coun-try to be considered on theglobal economic stage. It is al-so making waves regionally interms of social progress. Al-though Bangladesh is a pre-dominantly Muslim nation, itstands out as an internationalexample for many countries interms of women’s empower-ment. Both the current PrimeMinister, Sheikh Hasina, andthe leader of the oppositionparty, Khaleda Zia, are women,as is the Minister of ForeignAffairs, Dr. Dipu Moni.

A country which has beenrecognized by Goldman Sachsin the world’s list of "N-11", or next eleveneconomies, which has provid-ed the UN with more peace-keepers than any other, andwhich strides forth tacklingchallenges and exceeding ex-pectations – Bangladesh has aprivate sector made up of out-standing entrepreneurs whoare making the future brightfor their people.

These ‘Best of Bangladesh’are recognizing opportunitiesand creating world-class cor-porations. Their examples ofwhat can be done inBangladesh show that the skyis the limit.

One of the most densely populated countries on the planet, Bangladesh is revving up to become an important economic player

“WE ARE A MUSLIM COUNTRY, BUTOUR PEOPLE ARE VERY TOLERANTAND WE DO NOT HAVE PROBLEMSLIKE IN OTHER COUNTRIES WHEN ITCOMES TO RELIGIOUS FREEDOM.”

AKRAMUL QADER, Bangladeshi Ambassador to the U.S.

This supplement to USA TODAY was produced by United World Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 20 7409 3106 – [email protected] – www.unitedworld-usa.com

EDITOR IN CHIEF: ALBERTO LEANDRO LLARYORA

AA UUNNIITTEEDDWWOORRLLDDSSUUPPPPLLEEMMEENNTTPPRROODDUUCCEEDD BBYY::

Sophia Shepodd-Bhuiyan,Sofia Catoni and Thomas Hill

BANGLADESH USAT pp1-4.qxd 8/11/12 20:41 Página 1


Distributed by USA TODAYMonday, November 19, 20122 BANGLADESH

Born on the 25th of September, 1926 in Pab-na, Samson H. Chowdhury went on to studyat both Harvard University and Dhaka Uni-versity in Bangladesh (also known at thattime as ‘The Oxford of the East’). Uponcompletion of his studies he returned toPabna in 1952 and started his first entre-preneurial venture – a pharmacy. This ledto his first success in business and he wenton to begin the Square Group of Compa-nies with three friends.

A devout Christian, Samson served asvice president of the Baptist World Alliancefrom 1985 to 1990. Additionally, Mr. Chowd-hury served in other global Baptist organi-zations, including on the BWA GeneralCouncil, the Executive Committee, the Bap-tist World Aid Committee, the Promotionand Development Committee, and theMemorial Committee. Mr. Chowdhury wasalso elected president of the BangladeshBaptist Church Fellowship (BBCF) a dozentimes, and was honorary general secretaryfor 14 years, between 1956 and 1969. Hewas a president of both the National ChurchCouncil of Bangladesh and the NationalEvangelical Alliance.

But it wasn’t his religious beliefs which tookup the majority of his attention. His busi-ness acumen, and immense contribution tothe development of Bangladesh made himincredibly popular with the people and hiscontemporaries alike. He was of course rec-ognized for his achievements on several oc-casions, being awarded accolades such asBusiness Executive of the Year by the Amer-ican Chamber of Commerce in Bangladeshin 1998, Best Entrepreneur of the Countryfor the year 2000–2001 by the Daily Starand DHL Worldwide Express, Special Con-tribution in the country’s industrial andcommercial sectors for the year 2003 by theMercantile Bank Award, For Uncompro-mising Business Ethics, Honesty & Trans-parency of the year 2005 by the Banker’sForum Award. He was also the recipient ofCIP (Commercially Important Person in In-dustry) 2009-2010 status by the governmentof the People’s Republic of Bangladesh.

It was through his dynamic leadership thatSquare Group is one of Bangladesh’s leadingconglomerates with a turnover of more than$600 million, and Square has recognized, likemany others, the enormous potential of ready-made garment manufacturing in Bangladesh.

It was in 1997 that Square (famous fortheir pharmaceutical production) enteredthe textile sector with its manufacturing ofcotton yarn. Under Square’s unique and in-spiring atmosphere, this new venture soonrose to the top of the local textile industryand today it has one of the most sophisticatedvertically integrated set-ups.

In 2002 after approximately half a decadeproducing quality textiles for export-ori-ented garment manufacturers around theworld, Square Group embarked on their fi-nal stage of vertical integration through theestablishment of Square Fashions Ltd.

Using the highest standard of internationaltechnology and expertise, Square FashionsLtd. is producing quality apparel. Utilizingthe cotton yarn – which is the company’s su-perior product – Square decided to completetheir mission to be a one-stop-shop for theinternational buyer and incorporate the man-ufacturing of a range of apparels.

In Loving Memory ofSamson H. Chowdhury,

one of the greatestentrepreneurs the world

has ever known

It’s high time that Bangladeshis recognized as an upscale,quality high-street manufac-turing hub rather than a low-priced apparel manufacturer.

Located in CEPZ, PacificJeans Ltd. is one of the country’sleading ready-made garment(RMG) exporters and a pio-neering premium jeans manu-facturer in Bangladesh. Thiscompany is one of the first-

movers to get into the high-endmarket and uphold Bangladeshas a high-street fashion manu-facturing hub. Pacific Jeans Ltd.has been awarded five consec-utive national export trophiesby Bangladesh’s government.

“We are capable of accom-modating the needs of the top-tier international premiumbrands. In fact, upmarket re-tailers are already sourcing from

Bangladesh,” says Nasir Uddin,Chairman of Pacific Jeans.

He adds: “Made in Bangladeshis a symbol of quality and effi-ciency. Pacific Jeans Ltd. has ex-perienced a robust learningcurve in apparel manufacturingover the past several decadeswith a continuous focus on ef-ficiency and value addition with-out compromising the quality.Our relentless effort to attain ef-ficiency and our strong drive toachieve excellence have con-tributed enormously to ourreaching a new height and rep-resenting our country as an at-tractive sourcing destination ofpremium apparels.

“The biggest competitive ad-vantage of Bangladesh is thatwe offer the best price, qualityand capacity in Asia. We arenot only offering low labor costsas our competitive advantage;our efficiency, productivity andcapacity are our greateststrengths in generating growthand taking the market sharefrom our competitors in the ap-parel sector.”

Pacific Jeans Ltd. has got awell-equipped research and de-velopment center to generate in-novation in joint collaborationwith the design teams of the in-ternational brands who are thetrendsetters of the fashion world.The practice of research and de-velopment of upcoming trendshas turned the company into anultimate fashion solution insti-tution rather than a mere ap-parel manufacturer.

Mr. Uddin always puts em-phasis on the standard of work-ing conditions for the company’s24,000 employees. “We are prac-ticing ethical social and laborstandards, as compliance hasbecome a key factor for survivalin this industry. If there is nocompliance, there is no busi-ness. We confidently state thatour state-of-the-art productionfacilities, strong adherence toregulations, and product qual-ity are comparable to those inChina or Turkey.

“We have light, airy and hi-tech facilities which are work-er-friendly and environmentallysound. We are educating theworkers with proper training togenerate a pool of skilled hu-man resource in the industry.

“To validate our corporateenvironment commitment wepurify the waste water at a veryefficient effluent treatmentplant. We are continuously in-vesting in hi-tech, energy-sav-ing, machinery.”

Pacific Jeans Foundation isthe CSR wing of the companywhich has already establishedtwo primary schools and twohigh schools to provide educa-tion for the unprivileged. It al-so provides free medicaltreatment, medicines and schol-arships to unprivileged children.

‘Made in Bangladesh’ stands for quality and efficiency Bangladesh has alreadybeen positioned as a majorattractive garments exporterand has successfullysurvived the global financialdownturn. The future of theapparel sector looks evenbrighter as apparel buyersare increasingly looking tosource more fromBangladesh

“WE ARE CAPABLE OFACCOMMODATING THE NEEDS OF THE TOP-TIERINTERNATIONALPREMIUMBRANDS.”

NASIR UDDIN, Chairman of Pacific Jeans

If Bangladesh’s ready-madegarment (RMG) sector everhad a cheap connotation tiedto it, it is well on its way out,thanks to the efforts of high-quality manufacturers such asMohammadi Group (MG).

“It’s time for Bangladesh tore-brand itself as a producer ofhigher value added items,” saysthe group’s Chairman, AnnisulHuq, adding that the entre-preneurs of the RMG sectorhave risen above the challengesof natural disasters and laborissues to sustain growth in thesector. “Nothing deters ourspirit. The resilience comesfrom our need to survive andcompete in today’s world withexcellence,” he says.

MG was initially establishedin 1986 by four friends whoscraped together just enoughcapital, with 52 people work-ing a two-line factory in theLalbagh area of Dhaka. “Wehad no cash to invest, so I bor-rowed money from my father’spension account, my friendspawned their wives’ jewelryand a cousin decided to funda portion,” recalls Mr. Huq.

In the mid-90s, the four part-ners split the business, eachsetting up their own garment

manufacturing companies. Mr.Huq went into business withhis wife Rubana, who servesas MG’s Managing Director.Their son, Navid, runs thesweater division.

From these humble originsnearly 30 years ago, the grouphas expanded into a 26-linebusiness that produces month-ly 750,00 pieces of ready-madewoven garments, 300,000sweaters, and 250,000 piecesof lingerie. The group’s port-

folio of international cus-tomers includes some of themost recognized names inEurope and the U.S.

Not only is Mr. Huq at thehelm of a thriving company,he is also a prominent figurein the business community,having served as President ofthe Bangladesh GarmentManufacturers ExportersAssociation (BGMEA),President of the SAARCChamber of Commerce andIndustry (SCCI), andPresident of the Federationof Bangladesh Chambers ofCommerce and Industry(FBCCI).

“Leading all these organi-zations helped me gain a bet-ter vision of a global businessscene and my roles enabledme to look beyond just mycompany,” he says.

Mr. Huq’s vision has led himto look beyond the RMG sec-tor and to diversify into IT,power, media and real estate.He even plans to enter agri-culture soon.

His firm Technovista is oneof the largest software and ITservices companies inBangladesh, and has gone in-to partnership with a Danishcompany to open BoardingVista Ltd, an IT and DTP ser-vice solution provider. In theenergy sector, MG co-ownstwo 110MW power plantswith Desh Energy. In other ar-eas, MG Properties Ltd. fo-cuses on providing one-stopservices – all the way throughto interior design.

Business aside, the group isalso concerned with the hu-man aspect. MG’s Sharaf ’erPathshala School provides freeeducation to the factory work-ers’ children. “My goal is toreplicate this initiative in all ofour factories and to cajole afew of our colleagues to setup a similar school in theirmanufacturing units, as well,”says Mr. Huq.

Beyond a familybusinessMohammadi Group, one of the leading garment manufacturers in Bangladeshtoday, has broadened its base to include various other lines of business

Mohammadi Group’s customers include Zara, H&M, Esprit, Sears, Wal-Mart and Target

ANNISUL HUQ, Chairman of Mohammadi Group

BANGLADESH USAT pp1-4.qxd 8/11/12 17:33 Page 2


Distributed by USA TODAY Monday, November 19, 2012 3BANGLADESH

BEXIMCO’s activities span awide scope of sectors. Althoughits main focus lies in textiles,pharmaceuticals, ceramics, realestate, construction, marinefoods, and trading, the con-glomerate is also involved avia-tion, hospitality, financial servicesand various other business lines.

PPrroovviiddeerr ooff ffiinnee mmaatteerriiaallss ffoorr tthheewwoorrlldd’’ss lleeaaddiinngg ccllootthhiinngg bbrraannddss

BEXIMCO covers one ofSouth Asia’s largest vertically in-tegrated textile and garmentcompanies. The Textile divisionis a fully integrated manufac-turer of cotton and polyesterblended garments for men,women and children, both fordomestic and export markets.

BEXIMCO Textile (Bextex)encompasses the full range oftextile manufacturing operationsstarting from spinning to finish-ing garments. It is the goldengoose of BEXIMCO Group. Al-though Bextex was set up in 1984,it didn’t begin production until1990. Two years later, it was list-ed on the Dhaka Stock Exchange.

Located inside the BEXIM-CO industrial park, Bextex sup-plies 44 million garments tointernational buyers every year.

A Bextex factory worker earns$110 a month on average, high-er than Bangladesh’s minimumwage, which is $43.

The group plans to expandthe textiles business through ca-pacity additions. Post-expansion,the annual capacity of knit fab-ric is expected to increase to 80million pounds from 11 millionpounds currently, and the an-nual capacity of apparel knits isexpected to reach 145 millionpieces from 20 million pieces.

The group’s global clients areblue chip brands likeZara, one of theworld’s largest inter-national fashion companies, and Cal-vin Klein, a globallyleading fashion designand marketing studio,among others.

EExxppoorrtteerr ooff pphhaarrmmaacceeuuttii--ccaallss ttoo 4455 ccoouunnttrriieess

BEXIMCO is also the largestexporter of pharmaceuticals inBangladesh with a presence in 45countries. The Pharmaceuticalsdivision manufactures and sellsgeneric pharmaceutical formu-lation products, active pharma-ceutical ingredients (API) andintravenous (IV) fluids. BeximcoPharma’s product portfolio in-

cludes a variety of therapeutic ar-eas, such as analgesics, antibiotics,cardiovascular, central nervoussystem, dermatology, gastroen-terology, and respiratory. It alsohas contract manufacturingagreements with global phar-maceutical firms.

The groupplans to expand manu-

facturing capacities in valueadded products such as inhalers,eye drops and sprays. Targetedglobal expansion areas includethe Middle East, the EuropeanUnion, Latin America, USA,Australia, and New Zealand.

Beximco Pharma is the largestmanufacturer of metered doseinhalers and the only companyin Asia from whom GSK has

outsourced manufacturing of itsmajor brand Ventolin.

TThhee llaarrggeesstt cceerraammiiccss eexxppoorrtteerr iinnBBaannggllaaddeesshh

BEXIMCO’s ceramics divi-sion, Shinepukur CeramicsLtd., was established in 1997and is the largest ceramicsexporter in Bangladesh.

The company produces15 metric tons (MT) perday of high qualityporcelain and 3MT perday of bone chinatableware; however,

the group plans to ex-pand bone china capacity

by 4.5MT per day. The manu-facturing facilities are equippedwith state-of-the-art testing andquality control laboratory fa-cilities, decal and carton pack-aging plants, a modeling unitand a gas based captive powerplant, and the best effluent dis-charge mechanisms.

For the upper echelons of theglobal tabletop industry,Shinepukur produces world-class bone china, using only topquality raw materials, sourced

by highly reputed suppliersfrom all corners of the globe.These are meticulouslycrafted and trans-formed into exquis-ite bone chinatabletop, mirror-ing a uniqueblend of eye-c a t c h i n gshapes, en-v i a b l etranslucen-cy, durability,all of it with alead andc a d m i -um-freeglaze.

LLeeaaddeerrsshhiipp iinn aa vvaarriieettyy ooffddiivveerrssiiffiieedd aaccttiivviittiieess

BEXIMCO is one of the lead-ing real estate developers inBangladesh with a large, high-quality land bank in and aroundDhaka. For years, it has been anindustrial leader and innovativeconstruction firm, exclusivelyserving the needs of the con-struction industry in a world ofrapidly changing technology.

The company also has a pres-ence across the value chain fromculturing, processing, packaging,and selling marine food products.BEXIMCO has over 1,000 acresof land with best-in-class infra-structure in this segment, andplans to enter the deep-sea fish-ing business and value added pro-duction, including ready-to-eatand ready-to-cook products.

The group capitalizes on its in-dustry knowledge and identifiesmarket opportunities in activelytraded commodities.

SSeettttiinngg wwoorrlldd--ccllaassss ssttaannddaarrddssiinn bbrrooaaddccaassttiinngg

The group is a leadingprovider of banking and gener-al-purpose software and highspeed Internet services inBangladesh. It has a high qual-ity customer base supported bylong-term contracts and ser-vices over 750 bank branches inBangladesh.

BEXIMCO also owns Inde-pendent Television, a 24-hourBangla news channel that pre-sents a full spectrum of newsand analysis to its viewers. It isone of the first in Bangladeshthat transmits in MPEG 4 com-pression format and is HD ready.It also has a tapeless workflowand all housed in a purpose-built facility. BEXIMCO in-vested $10 million into the ITVproject, which is today the mosttechnologically advanced elec-tronic platform in Bangladesh.

BEXIMCO’s newspaper, TheIndependent, is a leading Eng-lish language daily in Bangladeshand the only newspaper to haveall 32 color pages. Its weeklysupplements include Young andIndependent, Faith, The Week-end Independent Magazine andDhaka Live (daily).

A broad array of exportablebusiness and industrial activ-ities have transformed BEX-IMCO into one of Bangladesh’smost global brands, while atthe same time, making it oneof the country’s most impor-tant contributors to social andeconomic development.

BEXIMCO: taking Bangladesh to the worldGlobalization has now be-come a new world order andvirtually influences every-thing. Developing countrieslike Bangladesh with vulner-able geopolitical locationsand weak economies are nowlooking at globalization tostrengthen their economy tofight any perceived threats.From the moment Bangla-desh won its independence,if not before, BEXIMCO –the largest private sectorgroup in the country today –has been one of the most im-portant and influential pio-neers in the privateindustries.

The conglomerate wasfounded by two brothers,Ahmed Sohail Fasiur Rah-man and Ahmed Salman Fa-zlur Rahman, in the 1970s.The two brothers have takentheir business from a smalljute mill to a conglomerateof over 21 companies. Whatmakes BEXIMCO even moreimpressive is that it com-menced operations whenBangladesh was embroiled inthe middle of a war for inde-pendence against Pakistan.Today, Director Shayan Rah-man represents the secondgeneration of leadership ashe takes BEXIMCO into the21st century and turns thecompany into one ofBangladesh’s most exemplaryambassadors to the world.

BEXIMCO as a conglom-

erate has been serving the ba-sic human needs over thedecades, with operations andinvestments across a widerange of industries.

BEXIMCO not only sellsits products and services inthe domestic Bangladeshmarket but also in interna-tional markets. The companyis the largest employer in theprivate sector in Bangladeshand employs over 48,000 peo-ple worldwide.

The BEXIMCO name hasnow become one of the mostrecognized brands inBangladesh. They havefour publicly traded and17 privately held com-panies. The publiclytraded companies areBangladesh Export Im-port Company Ltd.,Beximco Pharmaceuti-cals Ltd., ShinepukurCeramics Ltd. and Bex-imco Synthetics Ltd.,which together have acombined market capi-talization of approxi-mately $675 million. Thetotal revenues of the groupwere of $834 million in 2010.

BEXIMCO boasts state-of-the-art manufacturing plantslocated in the vicinity of Dha-ka, which provide the groupwith a highly cost effectivemanufacturing base. A ma-jority of its plants are in theBEXIMCO Industrial Park,a vertically integrated self-

contained facility. This facil-ity provides ready access tocaptive power generation,water purification, liquidnitrogen, wastewatertreatment and other keyinfrastructure.

The group’s globalclients include some of

the world’s most wellknown brands includ-

ing BT, BASF,

Chevron, Calvin Klein, H&M,JCPenney, Macy ’s, Zara,UNICEF, Royal Doulton, andVilleroy & Boch.

AAcchhiieevveemmeennttss

Since the company launchedits own brand in 1983, BEX-IMCO Pharma has remainedone of the fastest growingpharmaceutical companies inthe country. It witnessed par-ticularly phenomenal growthduring the 1980s and 90s ow-ing to its outstanding prod-uct quality and acceptabilityamong doctors. With its rangeof innovative products andprofessional services to themedical community, thecompany built its uniquebrand positioning as "trendsetter" in the Bangladeshpharmaceutical industry.

The company led the in-dustry to diversify into active pharmaceutical in-

gredients (API) in the ear-ly 90s, and explored the

immense opportunities inoverseas markets for locallymanufactured medicines. To-day, BEXIMCO Pharma is oneof the largest exporters ofpharmaceuticals in the coun-try and it has received Na-tional Export Trophy “Gold”for a record three times for itsoutstanding achievement inexport. BEXIMCO Pharmastill remains the only compa-ny in Bangladesh to receive

regulatory approvals fromANVISA (Brazil), Australia’sTherapeutic Goods Admin-istration (TGA), and GulfCentral Committee for DrugRegistration (for GCC mem-ber states) for its manufac-turing facilities.

Approvals from UKMHRA, EMEA and USFDAare in process for its Oral Sol-id Dosage and Metered DoseInhaler facilities. The com-pany has the unique distinc-tion of being the onlyBangladeshi company to belisted on AIM of LondonStock Exchange.

Shinepukur Ceramics wascertified ISO 9001:2000 inAugust 2001, which was lat-er upgraded to its 2008 ver-sion and has been certified asthe most environmentally-friendly tableware plant in thesub-continent. Regular envi-ronment protection practiceshave been set up in line withEIA Reports and World Bankguidelines for international-ly accepted standards. Thecompany has become the topceramic tableware exporterfrom Bangladesh between2004 and 2010.

Each group company ismanaged by an independent,professional team with sig-nificant depth of experience.Management teams have es-tablished a clear strategic planthat will further strengthenthe overall platform.

Bangladesh Export Import Company Limited (BEXIMCO) is a group that has transformed from primarily a merchandise trading company into a leading diversifiedgroup with strong market position in industry sectors that account for nearly 75% of Bangladesh’s GDP

BEXIMCO’s products are well accepted in the Western world and the groupoperates through show rooms in different locations around the globe

Made in BangladeshBEXIMCO’s myriad activities have been instrumental in Bangladesh’s socio-economic development and as the company’s motto says, they are “taking Bangladesh to the world”

SHAYAN F. RAHMAN,Director of BEXIMCO




The pharmaceutical industryin Bangladesh has the poten-tial to be enormous. Currently,the half dozen accreditedmanufacturers export some$50-60 million worth, but ifand when the government’sregulatory body expedites theaccreditation procedure, anadditional 20 or so compa-nies could also add to thecountry’s export bill, possiblyboosting it up to $20 billion,according to Abdul Muktadir,Managing Director of InceptaPharma-ceuticals Ltd.

Established just 12 yearsago, Incepta PharmaceuticalsLtd. is already Bangladesh’ssecond largest company, andamong the country’s top fivemanufacturing companies,it is the fastest growing.Having undergone thelengthy registration process,Incepta is a leading exporterof a wide variety of pharma-ceutical products.

Mr. Muktadir putsIncepta’s rapid growth downto its diversification. “We arediversifying in all facets ofhealth care. We started pro-ducing vaccines and then westarted producing bio-simi-lar products. We are also get-ting into hormonal products,which are very highly potentdrugs. Our factory is proba-bly the world’s largest facto-ry producing hormones. Ithas a capacity of producingaround 20 billion tablets ayear,” he says.

To put this into perspec-tive, he says that any Chinesefactory producing 5-6 bil-lion tablets a year is consid-ered a big factory. Yet notonly are Incepta’s vaccine,hormone and biotechnolo-gy facilities large, they arealso world-class. “If youstepped into our factory, youwould not be able to differ-entiate between our factoryand a U.S. factory. Probablyour Taksim factory is one ofthe best in the world,” claimsthe Managing Director.

Incepta specializes in val-ue-added high-technologydosage forms and prides it-self on its state-of-the-art re-search and development lab,which enables the companyto continuously launch newand innovative products –always a step ahead of thecompetition – to fulfil un-met demand in the medicalcommunity. Coupling so-phisticated technology andhighly skilled, dedicated pro-fessionals with heavy invest-ment in R&D, Incepta hasalready launched more than334 generics with a total of639 presentations. As manyas 124 of the generics werenew to Bangladesh at thetime of launch.

Incepta currently exportsto 35 countries, and with theimminent opening up of theEuropean Union, this numberwill rise to 60. Nevertheless,Incepta does already export

certain products to the U.K.Mr. Muktadir explains: “Wehave special ties with someU.K.-based companies andone U.S.-based company.They would be selling ourproduct in America as well asthe U.K. and Europe. We haverecently made our first ship-ment to the U.K., which wasour own development.Incepta is the first companyfrom Bangladesh to start sell-ing its own product in theU.K. It’s a medicine for thetreatment of arthritis, so it isnot just a cheap over-the-counter product, but a pre-scription drug.

“This is what we are doingand will continue to do, soour export figure will go upvery fast and we will becomea major source for vaccine,bio-similar, biotechnologyproducts and also pharma-ceuticals, and it is all a front-row open market.”

Incepta is huge on healthSince its creation in 1999, Incepta Pharmaceuticals Ltd. has built a solidreputation for quality and reliability. Delivering quality healthcare throughoutBangladesh, the company is also a major exporter

ABDUL MUKTADIR, Managing Director of Incepta Pharmaceuticals Ltd.

Alliance’s diversified holdingsIf diversification is a positive factor for success,then Alliance Holding’s success is guaranteed.With businesses in an enormous range of sec-tors – including textiles and garments, knitsand dyeing, telecommunications, inland con-tainer depots, real estate and land develop-ment, soft drinks, livestock, petroleum, steeland pre-engineered steel buildings – there isn’tmuch that Alliance Holding isn’t involved in.

In fact, Managing Director Yasser Rizvisays that the group is looking into pharma-ceuticals, power generation, food industries,and river ports. The last one, which will becalled Summit Alliance River Terminals Ltd.,is actually already at “an advanced stage” in ajoint venture with Summit Group, withwhom Alliance operates Summit AlliancePort Ltd. and Oceans Containers Ltd.

“With these [two] companies combined,we handle 30% of all exports out ofBangladesh”, says Mr. Rizvi.

He attributes the group’s success in largepart to Bangladesh’s rapidly growing economyand the consequent wide berth for error.

“In a country like ours which is growing sorapidly, especially if you are diversified, youcan enter a sector and make a few mistakesand still do well. You can overshoot yourcapital budget by 10-20% and still make agood profit.”

“We are at such anexciting stage – everyminute must be uti-lized to take advan-tage of this growth,”he adds.

Hamid Fabrics top the RMG sector Mahin Group is one of the vertically integrat-ed leaders in the export of clothing and tex-tiles from Bangladesh. The company started in1985 with a ready-made garment manufac-turing unit named Mahin Apparels, along witha well-equipped washing unit. In 1996 thegroup resolved to plow back the earnings frommanufacturing into backward linkage indus-tries. Since then, investments continue in dye-ing, finishing and weaving facilities. Followingthis diversified business concept, the group isnow also engaged in insurance, IT and the ho-tel business.

Hamid Fabrics Ltd., the textile facilities ofthe group, runs the most sophisticated fully-automated technology, setting a nationwidebenchmark for solid dyed woven textiles witha capacity of 30 million yards per annum. Allfacilities are run by an experienced manage-

ment team comprising both local and foreignexpertise. “Only a handful of mills inBangladesh operate at this level, thus makingus one of the major players nationwide,” saysAbdullah Al Mahmud, an enthusiastic anddynamic young entrepreneur and the group’sManaging Director.

According to Mr. Mahmud, new yarn dye-ing facilities supported by a new weaving unitare being planned in response to demand.Hamid Fabrics also plans to set up a spinningmill so as to achieve fully integrated status.

“The total investment here will be about $40-50 million,” says the Managing Director. “Tex-tiles are our core business. We aim to expandover the next few years and be at the top of ourgame, being conservative yet aggressive at thesame time, always looking for new ideas andnew people.”

Fulfilling thenation’s potential Approximately 10 years ago,Dr. Arif Dowla, a PhD in mathfrom UCSD, returned to hisnative Bangladesh where hebelieved he could help con-tribute to his country ’s development. Applying math-ematical concepts to his man-agement style, he serves asManaging Director at Ad-vanced Chemical IndustriesLtd (ACI), an exemplary com-pany with successful foreignjoint ventures that was se-lected “Enterprise of the Year2011” by the Daily Star.

ACI operates 21 business-es in the fields of agriculture,food, consumer brand, phar-maceuticals and retail.

In agriculture, ACI has setup leading businesses inseeds, fertilizers, crop care,animal health, agriculturemotors, poultry, and watermanagement solutions. “Ourmotto is to generate wealthfor the farmer,” says Dr.Dowla. This is done, to a largeextent, through ACI’s retailchain business, which strives“to have the deepest supplychain and connect the farmer

to the consumer, cutting outintermediaries and offeringthe lowest prices to the con-sumer.”

ACI’s most well knownconsumer brand is Savlon an-tibacterial range and Aerosol

which comprises of a rangeof mosquito and insect re-pellents, while its pharma-ceutical business provides awide range of medicine andtechnology based products.In addition, the companyhosts nationwide clinicalmeetings, healthcare aware-ness programs and doctorsmeetings.

Lastly, ACI produces highquality and safe packagedcommodities (including salt,sugar, spices, flour and edi-ble oil) that contrast with thelarge unhygienic unpackagedmarket found throughoutBangladesh.

Anis Ud Dowla, ACI Chair-man, is proud of the qualitythat goes into every singleprocess. “We were the firstcompany in Bangladesh toadopt ISO 9001 Quality Man-agement Systems,” he says,adding, “When the produc-tion process uses the latesttechnology, best quality ma-chines and processes, and thebest raw material, we canproudly claim ‘Purity’ as ourbrand slogan. Purity pays.”

Award-winning company ACI introduces new products and business models toBangladesh while complying with strict environmental standards

ANIS UD DOWLA, Chairman of ACI

Soaring from strength to strength Habib Group stands true toits tagline ‘Serving the Na-tion to Build the Future’.They provide a wealth ofproducts and services rang-ing from fertilizers andpower to textiles and ap-parel to ship recycling, steeland cement, which furtherexpand and sustain domes-tic economic growth.

Founded in 1947 as a trad-ing company by late HabibUllah Meah, the HabibGroup’s success is also owedto its visionary managementteam and their speed in bothrealizing and developingBangladesh’s most abundantresource: manpower. Goinginto business an astounding65 years ago, the Ali familyhave brought pride to theirregion (Chittagong) andtheir country.

Habib Group now wel-

comes its newest compa-ny, Regent Airlines. Beingable to travel efficientlyand comfortably is crucialto the business environ-

ment of Bangladesh, andindeed the business devel-opment of Bangladesh.

Managing DirectorYasin Ali explains, “Forbusinesspeople, time, notmoney, is very important.You have to give themtrust and dependability,and that is what we arelooking to provide.”

The quality and popu-larity of the Regent do-mestic service isexemplary of the thrivingBangladesh economy, andMr. Ali reiterates, “Ourobjective is to be the mar-ket leader in point-to-point destinations.”

The company has al-ready taken extraordinarystrides in accomplishingits goal and plans to addjet planes to its fleet bythe end of the year.

YASIN ALI, Managing Director of Habib Group




One of the largest conglomeratesin the country, Partex Star Groupowns and successfully operates20 manufacturing, service andtrading concerns that contributeto Bangladesh’s industrializationand GDP growth by deliveringbest value to its customersthrough innovative products andservices. The group is continu-ously evolving, expanding itsbusiness and customer base, andcreating more job opportunities.Together with its customers andprofessional workforce, PartexStar Group contributes com-prehensively towards building aprosperous future for the nation.

From the hiring of people tothe selection of merchandise,negotiations with vendors to thedesigning of showrooms, andthe generation of the purchaseorder to the delivery to cus-tomers’ homes, the team atPartex Star Group is dedicated

to creating an enriched cus-tomer experience through a top-to-bottom focus on excellencein execution.

The group primarily dealswith areas including consumerdurables, doors, doorframes,furniture, and different typesof boards – particle board, ve-neer board, melamine-facedchipboard, plywood andPVC sheeting.

Partex Furniture producesa diversity of products maxi-mizing the use of timber-sub-stitutes as well as products ofsolid timber. Specially laminat-ed boards, stainless-steel acces-sories and high-grade plywoodoffering the best quality/cost sub-stitute for natural timber com-bine to create elegant productsfor custom-made, innovative,modern and stylish furniture.

The group is also involved infast-moving consumer goods

(FMCG) such as dairy products,cookies and spices, etc. Its sub-sidiary Danish Condensed MilkBd. Ltd. is the first condensedmilk producer in the countryand has held the leading positionin the local market since 1991.Presently, Danish CondensedMilk is being exported to Nepal,Bhutan and some parts of Indiain bulk, and its reach is expand-ing internationally.

Danish also offers a range ofspices under the brand Rani,which has gained widespreadpopularity as a convenient andsimple way of adding taste, tex-ture and flavor to meals.

Most of the group’s compa-nies have achieved ISO andHACCP certification for qual-ity and for maintaining strin-gent quality in all phases ofproduction. The company’s dis-

tributors cover the market na-tionwide with Danish productssuch as milk powder and fruitjuice through its vast distribu-tion network.

With Bangladesh getting in-creasingly involved in thearena of world trade and com-merce, Partex Star Group em-phasizes the need to expand itsbase, add value to its productsand services, be more compet-itive, value driven and envi-ronmentally compliant. Thecompany is also looking to em-bark on improving HR proto-cols, be more technologicallysound, financially stronger andlogistically advanced.

The group’s Vice-ChairmanAziz Al Kaiser is one of a newgeneration of private-sector in-vestment wizards with a glob-al outlook and a profoundinterest in the nation’s art, cul-ture and sports. After returningto Bangladesh following hisgraduation in the U.K., he joinedPartex Group and his special

emphasis was on the group’sflagship company, Star ParticleBoard Mills Ltd. He launched anew genre of industrial unitsand added to the group’s reachwith more stakes in banking,insurance, shipping and the cap-ital market.

Family values, excellent aca-demic upbringing and child-hood exposure to industrialentrepreneurship are but a fewattributes that helped his col-league Aziz Al Mahmood,Managing Director of DanishCondensed Milk Bd. Ltd., be-come a key decision maker inthe Partex Star IndustrialEmpire. With his inherent qual-ity of leadership, based on astrong educational backgroundand pragmatic outlook, heplayed a vital role in the groupkeeping pace with advance-ments in information technol-ogy that revolutionized thetraditional methods of produc-tion, trading, export and inter-nal communication.

Connecting the dots of strengthsFrom furniture to dairy, the multifaceted Partex StarGroup’s products are in demand

The powerful Partex name

More than 50 years ago, Partexfounder and Chairman M.A.Hashem initially set out tomake his way in the businessworld as a tobacco trader withthe small amount of moneyhis recently widowed mothercould afford to give him.

With time his business grewand by 1971, when Bangladeshdeclared its independencefrom West Pakistan, his to-bacco warehouse inChowmuhoni was packed full,thereby placing him in an ex-cellent position to grow hisbusiness exponentially. Amove to Chittagong, the com-mercial capital of Bangladesh,brought greater success anda subsequent diversificationinto imports of various con-sumer items and building ma-terials – two muchsought-after groups of prod-ucts in the newly formed na-tion.

It was in Chittagong thatMr. Hashem founded M/SHashem Corporation Ltd. andquickly became known as atrading tycoon. However, thissharp-minded businessmanrealized that imports weremerely a temporary solutionto a permanent need and de-cided to make the switch tomanufacturing. He went onto pioneer several industriesof national importance in thenewly established Bangladesh.

By domestically producingthe same products his com-pany had been importing, hewould create the basis of asmall new business empirethat would bring greater val-ue to the Bangladeshi econo-my, more jobs for localworkers and greater self-suf-ficiency for the nation.

In the 1980s, Mr. Hashem

moved his business to Dhakaand purchased Star ParticleBoard Mills Ltd. from the gov-ernment on auction, which heturned into a profitable com-pany. Thus was born thePartex Group.

Mr. Hashem began settingup new industrial units anddiversified his business acrossmulti-dimensional sectorsboth at home and abroad.With other business col-leagues, he founded two new

banks – City Bank Ltd. andthe United Commercial BankLtd. – and Janata Insuranceand Phoenix Insurance.

Partex’s other companiesare market leaders in nearly allsectors, including food andbeverages, plastics, fabrics,yarn, cotton, sugar, paper, jute,shipping, furniture, real es-tate, media, education, ser-vices, and IT, among manyothers. It has been Mr.Hashem’s missionary zeal andunflinching commitment toquality, honesty, values, ethicsand service that have takenthe group to its presentheights.

Working in a competitiveenvironment of free marketeconomy, the Chairman hasplayed a pivotal role in pro-moting private sector entre-

preneurship with new innov-ative ideas and translatingthem into action. Congruentwith the MillenniumDevelopment Goals and guid-ed by Mr. Hashem’s vision,Partex is one of the largestconglomerates in Bangladeshtoday.

“Ours is a free market econ-omy. And the private sector asthe engine of growth plays akey role in establishing the ba-sic industrial base. We havebeen trying to play the roleand contribute to the makingof our GDP,” he says.

Having come from a mod-est background himself, Mr.Hashem has not forgotten hissocial responsibilities. He isclosely involved in various so-cial, religious, cultural, edu-cational, humanitarian andhealthcare related activities.For example, he has estab-lished a good number ofmosques, orphanages, clubsand philanthropic institutions.He is also the foundingPresident of NoakhaliDiabetic institution.

Together with some friendsand colleagues, Mr. Hashemestablished North-SouthUniversity, Bangladesh’s firstprivate university and cur-rently ranked number one inthe country. He also foundedM.A. Hashem Degree Collegein Noakhali.

Partex Holdings, along withPartex Star Group, are enor-mous yet still maintain thefamily-run appeal. Indeed, Mr.Hashem’s five sons have allproven their worth as heads ofdifferent subsidiaries in theholding and group: Rubel Azizis Chairman of City Bank Ltd.,Showkat Aziz Russel isManaging Director of PartexDenim, Aziz Al Kaiser is Vice-Chairman of Partex StarGroup, Aziz Al Mahmood isManaging Director of DanishCondensed Milk Bd. Ltd., andAziz Al Masud is Director ofPartex Group.

AZIZ AL KAISER, Vice-Chairman ofPartex Star Group

AZIZ AL MAHMOOD, Managing Directorof Danish Condensed Milk Bd. Ltd.

M.A. HASHEM, Chairman and founderof Partex Holdings

Established in 1959,Partex Holdings is today a leading conglomeratecomprising more than 20companies across diverseindustries

Bangladesh’s population of 160million and growing, coupledwith the country’s boomingeconomy are creating ever-increasing demands on thepower sector. That Bangladeshneeds more energy is clear, andof the various power compa-nies operating in the country,perhaps the greatest load of re-sponsibility rests with thebiggest one: Energypac.

“It is a very big challenge forthe country. When there is achallenge, there is an oppor-tunity. We have to address thisopportunity,” claims HumayunRashid, Managing Director ofEnergypac. “As a local compa-ny, we have a lot of experiencein terms of the culture, the wayof working, licensing and en-vironmental issues.”

Nevertheless, in order tomeet the rising demand,Energypac cannot do it alone.Mr. Rashid explains: “We needa lot of foreign investment forlarge power infrastructure pro-jects and in order to address en-vironmental issues. As a localcompany, we can address thesethings if we get foreign jointventures and internationalcompanies experienced inworking overseas. We canprovide our local support.”

The biggest local and for-eign names in the corporate,residential and commercialsectors rank amongEnergypac’s customers. Infact Energypac has alreadyprovided solutions foraround 300 companies inBangladesh – supporting avast range of sectors such asgarments and textiles, plas-

tics, pharmaceuticals,cold storage,

c o n s t r u c -

tion, cement and steel man-ufacturing.

The focus of Energypac isspread from power generationto power transmission and dis-tribution. Providing a widerange of products from sub-stations to transformers to cir-cuit breakers and control andrelay panels, Energypac pro-vides the best for the best, with24-hour customer support forimmediate response. The com-pany has been working withboth the public and private sec-tors to create an environmentof trust in providing efficientand reliable services in differentsectors, which has enabled it togrow an international presencein India, Nepal, Sudan, andYemen, among others.

Energypac understands thatthough power generation isnecessary there must be envi-ronmental awareness. “We arecommitted to environmentalissues. We always work on en-ergy efficient power plants. Weunderstand that energy effi-ciency means more profits. Youcan sell energy, and if you cansell more, you are earning moremoney for the company. We

design any power plants takingthis into account,” says the MD.

Keeping the motto “Energyworks wonder” in mind,Energypac is committed tobringing wonder into the livesof its customers with the mostadvanced technology and theleast power consumption. Thusit has also ventured into bring-ing energy saving and lightingsolutions by manufacturing andbringing international brandsto the local market.

Energypac is known for itsability to deliver. Although themajority of the company’s pro-jects are either turnkey or time-bound, in actuality it is itsplanning implementation thathas made it stand out over theyears. The company’s financialhealth has also ensured quali-ty services at an internationalstandard, while an impressiveteam and dynamic leadershiphave guaranteed success.

Mr. Rashid says thatEnergypac can be a key ally forany potential investor lookingto make a profit in Bangladesh.“If they consider Energypac tobe a local partner, we will makesure we add value. We willmake sure that the right tech-nology is being employed and

that foreign in-vestors’ make a

profit becausewe believe en-ergy workswonders.”

Energy works wonders With origins dating back 30 years, Energypac is today the largest powerengineering company in Bangladesh and unrivaled leader in the local market

“WE NEED A LOTOF FOREIGNINVESTMENT FORLARGE POWERINFRASTRUCTUREPROJECTS.”

HUMAYUN RASHID, Managing Director of Energypac




Green Delta InsuranceCompany Limited (GDIC)is one of the leading privatenon-life insurance compa-nies in Bangladesh, provid-ing an array of insurancesuch as fire, burglary, ma-rine and health.

GDIC was incorporatedin late 1985 as a public lim-ited company with a paid upcapital of only BDT 30 mil-lion ($366,500). After theprivatization of the insur-ance sector, Green Delta wasthe fifth company to be es-tablished, and it has gaineda reputation as one of themost respected companiesin the business.

Nasir A. Choudhury,Managing Director of GDIC,has played an important rolein the growth of the compa-ny thanks to his 54 years ofexperience in the insurancesector. Mr. Choudhury at-tended two different insur-ance courses for a total 14months in the U.K. and Ger-many, and upon completingthem was posted in PakistanInsurance Corporation’s Re-gional Office in Chittagong,which became theBangladesh Insurance Cor-poration after independence.

Success for GDIC beganfrom day one. It was the firstinsurance company to belaunched purely by profes-sionals and technocrats, andMr. Choudhury and his col-leagues’ first-hand experienceworking abroad got the com-pany off to a flying start. To-day the company has paid upcapital of BDT 510.3 million.

Despite the fact 2011 wasa turbulent and gloomy year

for the economy, capital mar-kets and the financial ser-vices industry, the insurancesector in the country hasmoved ahead. The top linecontinued to grow in 2011.“We are pleased with ourprogress and optimistic thatwe can accelerate the mo-mentum in our business. Wecan proudly confirm thatwith the right strategic guide-lines and timely executions ofthe plans, Green Delta In-surance Company has suc-cessfully overcome thehurdles during the year 2011,”says Mr. Choudhury.

In 2011, GDIC was onceagain the highest premiumcollector, and despite theworldwide recession GDICis still producing the num-bers. It reported 17.5% in-crease in gross premium toBDT 2,351.47 million, an in-vestment income of BDT131.80 million; profit aftertax is now BDT 134.01 mil-lion, an 11.9% growth in netpremium, fixed asset growthof 58.2% now standing atBDT 212.94 million, and anunderwriting profit growthby 24.5% standing at BDT124.17 million.

Green Delta’s success canbe attributed to its multiplestrategies concerned withlong-term success. Creatingvalue for its customers, in-vesting in and developing thetalent of its’ employees, com-mitting to ethical conduct,and assuming social re-sponsibility are just a few ofthe ways GDIC is focused onmaintaining a strong finan-cial stance, both for now andfor the future.

Long-term strategybest policy for GDICGreen Delta InsuranceCompany Ltd. has justcelebrated its 26th

anniversary, a testamentto its philosophy ofalways looking for long-term growth

“WE ARE PLEASEDWITH OURPROGRESS ANDOPTIMISTIC THATWE CANACCELERATE THEMOMENTUM INOUR BUSINESS.”

NASIR A. CHOUDHURY, Managing Director of GDIC

Named “The Strongest Bankin Bangladesh” by The AsianBanker in 2010, and the “BestBank in Bangladesh – 2012” byFinanceAsia, City Bank hasundergone an entire transfor-mation, starting in 2007, andhas adopted a whole new Vi-sion, Mission and Values.

Today, rather than a merebank, City Bank considers it-self a “financial supermarket”that offers its clients “enjoyableexperiences” instead of meretransactions. The three-yeartransformation project fo-cused on remodeling the busi-ness along a customer valuesegmented line through cen-tralizing the business process.This is in contrast to the tra-ditional decentralized, orbranch-based model. The newstructure allows City Bank tobetter tailor its services forspecific customer segments,such as corporate and invest-ment banking, retail andcards, SME, and treasury andmarket risks.

Consequently, customerservice and the qual-ity of product offerings arehigher thanever, evidencedby the bank’s re-sults in the last

few years. The net profit mar-gin for 2009–2011 has been26%, 25.3% and 18.7%, re-spectively. Given that this hastaken place during one of theworst financial crises theworld has seen, these mar-gins seem satisfactoryenough. In addition, net as-set value per share in 2011rose by 18.2% from 2010. CityBank is listed on both theDhaka and the Chittagongstock exchanges.

According toRubel Aziz, adynamic andyoung entrepre-neur and theChairman of City

Bank, the institution’s successis due in large part to its“strong ability in correctly un-derstanding the domesticcredit needs and culture, andresponding to it rapidlythrough a very tight due dili-gence process.”

The bank’s risk manage-ment policies have also playeda major role in maintainingliquidity at satisfactory levels– in spite of a national majorliquidity crunch in 2011 – andin putting capital adequacyratio (CAR) at a desired lev-el. From 11.15% in 2010, theCAR grew to 12.79% in2011, safely above the BaselII requirement of 10%.

City Bank holds theexclusive rights to

issue Ameri-can Expresscards in

B a n g l a d e s h .Launched in2009, City Bank

Amex CreditCards redefined

the country’s entirecredit card industryand converted thebank into the second

largest card issuer andthe largest point-of-salesacquirer of credit cards inthe market.

Local bank enjoys huge successCity Bank can safely say that although it’s not the biggest bank in Bangladesh, it is among the best

RUBEL AZIZ,Chairman of City Bank

The financial sector has come along way in the four decadessince Bangladesh gained its in-dependence, growing steadily inline with the economy.

Forty years ago, when thecountry’s banks were almost en-tirely state-owned, their creditand investment assets totaled amere $90 million or so. In to-day’s market-based sector, theamount is more than 650 timeshigher at $57 billion.

There are now many morebanks – almost 50, including fourstate-owned lenders, four spe-cialized development banks, and10 foreign banks, includingCitibank, HSBC, and StandardChartered – and licenses havebeen issued for nine new ones.

Decades of institutional andmarket reforms overseen byBangladesh Bank, the coun-

try’s central bank, have result-ed in a robust and stable fi-nancial system that weatheredthe financial storms of the EastAsian currency crisis of the mid1990s and the global financialcrisis of 2008-09 with no needfor bank bailouts.

The bank has overseen the in-troduction of global best prac-tice standards for capitaladequacy and liquidity. The 11%overall risk weighted capital baseof Bangladesh’s banks is above theinternational Basel II regulatoryrequirement, while non-per-forming loans as percentage oftotal assets are at single digit lev-

els, and liquidity stresses arisingfrom unduly high advance de-posit ratios in some banks lastyear have eased.

Stress test exercises have re-sulted in World Bank-IMF as-sessment of the financial sectoras resilient against moderate

shocks. Meanwhile prepara-tions are under way for the im-plementation of Basel IIIrequirements by the 2018 dead-line or earlier.

There is no complacency atBangladesh Bank, however, de-spite the reassuring overall view.Atiur Rahman, the Governor ofthe bank, says that as Bangladesh

The Governor of the central bank says the banks are resilient but more needs to be doneas Bangladesh integrates more fully with the global economy

Banking sector resilient, yet moreadvances towards its goal of be-coming a prospering advancednation fully integrated with theglobal economy there is a needfor further reform across everyaspect of the bank supervisorysystem – from the IT architec-ture to liquidity risk monitoring.

He insists the central bank iscommitted to putting in place aregime of “macroprudential su-pervision” and making the mostrelevant tools and practices avail-able as both the economy and thefinancial sector itself expand.

“Much of our growth-relat-ed new investments will have tobe attracted abroad, heighten-ing our financial sector’s expo-sure and vulnerabilities tomarket volatilities in the glob-al scene,” he says.

“In step with rising externalexposures, our financial sectorwill need to build up and bolsterresilience against shocks fromperennial volatilities and insta-bilities of the international mar-kets. Besides shocks of externalorigin, there are also the demandand supply shocks of domesticorigin to build up resilienceagainst, particularly as the mar-ket-based Taka interest and ex-change rates may move inadverse directions.”

Mr. Rahman says the central

bank intends to work furtherwith other regulatory authori-ties towards faster upgrading ofcorporate governance and dis-closure practices in the overallbusiness environment, both inthe financial and real sectors.

Strengthening Bangladesh

Bank’s supervisory oversight willcontinue to remain a high pri-ority, including specifically onrisk management, corporate gov-ernance, internal control, andinternal audit in banks.

Unusually, the central bankdoes not have full monitor-

DECADES OF INSTITUTIONAL ANDMARKET REFORMS OVERSEEN BY THECENTRAL BANK HAVE RESULTED IN AROBUST AND STABLE FINANCIAL SYSTEM




What is today one of Bangla-desh’s leading largest banks,Sonali Bank is the product of thenationalization and liquidationof three banks – National Bankof Pakistan, Premier Bank andBank of Bhwalpur – into one ful-ly state-owned institution in theearly 1970s, and the later trans-formation of this into a PLC in2007. With the recent corpora-tization, Sonali Bank was allowedmore autonomy to raise its com-petitiveness and efficiency.

The mission of Sonali Bank isto “extend a whole range of qual-ity products that support diver-gent needs of people aiming atenriching their lives, creatingvalue for the stakeholders andcontributing towards socio-eco-nomic development of the coun-try.” Sonali customers haveaccess to personal, SME and in-ternational banking, investmentbonds, foreign currency ac-counts, and deposit and creditschemes. The bank also extendsindustrial financing, rural andmicro credit.

Banking at Sonali is made easyand convenient thanks to its ex-tensive network. Spreadthroughout the country, nearly

1,200 branches – of which just342 are located in urban areas,with the remaining 854 in ruralzones – in addition to two-branches in India serve thou-sands of customers daily.

In the U.S., the bank is present

through its subsidiary SonaliExchange Co. Inc. (SECI).Incorporated as an internation-al money remitter in 1994, SECI has 10 offices in New York,New Jersey, Los Angeles, Atlanta,and Michigan. In England, SonaliBank (U.K.) Ltd. functions asboth remittance center and bankin London, Luton, Birmingham,

Manchester, and Bradford. The bank’s merchant banking

arm, Sonali Investment Limited,operates out of its four branch-es in Motijheel, Paltan, Uttaraand Mirpur.

Bangladesh is home to thefourth largest Muslim popula-tion in the world. To better sat-isfy local demands and moreaccurately tailor its products andservices to this audience, SonaliBank launched Islamic bankingin 2010, based entirely on Shariahlaw and spearheaded by a su-pervisory committee consistingof reputed Islamic scholars, econ-omists and bankers.

Sonali has made Islamic bank-ing available online and is bring-ing dynamism into the sector byleveraging the bank’s reputationand financial strength.

In 2011, Sonali underwent asurveillance rating as both a gov-ernment support entity bankand commercial bank. For theformer, it received AAA ratingfor long-term and ST-1 forshort-term – both the highestratings for the category. As acommercial bank, Sonali re-ceived A- and ST-2. Overall out-look is deemed stable.

Meeting a nation’sfinancial needsWith a global network of branches and subsidiaries and a broad array of productsand services, Sonali Bank Ltd. is creating value for the Bangladeshi banking sector

PRADIP KUMAR DUTTA, MD and CEO of Sonali Bank

Creating value through innovationIn the past two decades prod-uct innovation, state-of-the-art IT solutions and excellencein service proposition have be-come synonymous with East-ern Bank Limited (EBL), themost valuable financial brandin Bangladesh.

“We value our customersand our marketing conceptrevolves around a customer-centered ‘sense and response’philosophy. The job is not tofind the right customers forour products, but to find theright products for our cus-tomers. For us service excel-lence is not just customersatisfaction, but customer de-light,” says Ali Reza Iftekhar,Managing Director and CEO,

on EBL’s brand promise. He took over as CEO of EBL

when he was only 46. A vision-ary banker and a dynamicleader, Mr. Iftekhar trans-formed the size of the balancesheet of EBL in the space ofthree years (2007-09), from$492 million to $855 million.

“The success of EBL lies inits ‘customer first policy’ andthe ethos of ‘passion to per-form,” says Mr. Iftekhar andelaborates, “We are precise,confident and innovative. Thetrust people place in us isbased on our passion to per-form. We understand issues indepth. This is why we keepthings simple and clear. Ourbrand proposition defines the

way we do business. We atEBL believe in creating lastingvalue for our clientele, share-holders and employees, andabove all for the communitywe operate in. Our purpose isto sustain and ensure growthby simply making profit forpeople and not over them.”

A promoter of positivethinking Mr. Iftekhar says,“We are optimistic about thefuture. Throughout our 20-year history, our belief in re-sponsible leadership, ourdedication to our customersand our fortress balance sheethas carried us through thetoughest challenges. These arethe core values we maintainday after day.”

Despite being able to boastlush tropical jungles, abun-dant wildlife, pristine beach-es, fascinating culture andwelcoming and hospitablepeople – to date Bangladeshhas remained one of the Asia’sbest-kept secrets.

However, that is all aboutto change as the large coun-try that lies north of the Bayof Bengal and that spans over

55,600 square miles gears upto promote its vast array ofunspoiled natural and cul-tural highlights. With the de-velopment of a new wave ofeco lodges and high-end lux-ury resorts, Bangladesh is ontarget to become a top touristdestination particularly withtravelers seeking relaxationand adventure well off thebeaten track.

Water is an element that hascarved the land and moldedthe culture of the Bengal peo-ple for millennia with 360miles of coastline, countlessclear water lakes, cascadingwaterfalls and over 800 ser-pentine rivers – some of whichare home to numerous fishspecies including the rare freshwater dolphin.

One of Bangladesh’s mostfamous attractions is the Sun-darbans, a UNESCO Bios-phere Reserve designated inNovember 2001. The largestmangrove forest in the worldit, is located at the mouth ofthe Ganges and BrahmaputraRivers between India andBangladesh. Voted one of theseven natural wonders of Asia,its forest and waterways areone of the most biologicallyproductive of all naturalecosystems and support a widerange of fauna including anumber of species threatenedwith extinction such as thesingle largest population ofBengal tigers in the world.Wildlife Conservation Soci-ety (WCS) researchers also re-ported in early 2009 that nearly6,000 rare Irrawaddy dolphins– marine mammals that areclosely related to orcas, hadbeen discovered living in fresh-water regions of the Sundar-bans and the adjacent watersof the Bay of Bengal.

Huge on beauty and cultural heritage but small on tourism, Bangladesh is one of theworld’s most fascinating, exotic and pristine destinations

ing control over all the coun-try’s lenders. A “dual gover-nance” arrangement gives theFinance Ministry partial con-trol over supervision of thestate-run banks.

This can lead to a blurring ofresponsibility when things gowrong, as has been clearlydemonstrated in the case of oneof the country’s most recent andbiggest ever banking scandals, a$43 million scam involving astate-owned bank and the little-known Hallmark Group.

Mr. Rahman wants full su-pervision powers to rest with thecentral bank. He says, “Exemp-tion of state-owned banks fromsome of Bangladesh Bank’s su-pervisory empowerments of theBank Companies Act stands inthe way of effective supervisionof these banks. Unless this dif-ferential treatment is done awaywith, management weaknessesfrom insufficient accountabilityare likely to linger in the state-owned banks.”

The International Mone-tary Fund agrees, and says therelease of the $140 millionsecond tranche of its $1 bil-lion Extended Credit Facilityto Bangladesh is contingenton the government amend-ing the Bank Companies Actso that the state-run and spe-cialized banks come withinthe full supervisory controlof the central bank.

In terms of the economygenerally, Mr. Rahman believesthat amid the global slowdownBangladesh’s macroeconom-ic trends are broadly on coursetowards attainment of its goalof becoming a middle incomecountry.

According to the EconomistIntelligence Unit between July2011 and June 2012, Bangladeshenjoyed an estimated real GDPgrowth of 6.3%, a figure the EIUforecasts will be maintainedover the coming five years.

While Bangladesh’s econ-omy is supported mainly by

services and industry, nearlyhalf the population works inagriculture.

Abul Amaal Abdul Muhith,Minister of Finance, says thatagriculture needs more atten-tion, as does the issue of powergeneration. “I see the future ofBangladesh including large de-velopments in the rural areas…because they are occupyingmost of our land. Along withagricultural development, weneed to develop the power sec-tor. About 50% of the electrici-ty of our country is for ruralareas. The problem is not pow-er transmission, the problem ispower generation,” he highlights.

Mr. Muhith adds that foreigninvestment in Bangladesh hasbeen hindered in part due topower shortages, but that by in-creasing the use of coal (in ad-dition to natural gas, a resourcethe country has plenty of ), “Ihope we will be able to correctour electricity crisis very soon,”he concludes.

Dhaka’s skyline is proof of the country’s growing economy

The flagship carrierand source of prideBiman Airlines, renowned for safety and comfort, has grown alongside Bangladeshsince independence was won in 1971

Theundiscovered

paradise

Biman Bangladesh Airlines plansto open a new route to New

York’s JFK International Airport

Bangladesh is choc-full of beautiful historic monuments CCoonnttiinnuueedd oonn ppaaggee 88

reforms needed

Biman Bangladesh Airlinesprides itself on being an am-bassador to the world of busi-ness and recreational travelersalike. Despite difficult times inthe aviation industry due tothe global economic down-turn, Biman has managed to re-main strong in the face ofadversity – a feat achievedthanks to the resilient natureof all things Bangladeshi.

This year, Biman welcomesthe addition of fabulous brandnew carriers from their man-ufacturer of choice, Boeing.This ushers in a new era forthe Bangladeshi flagship ofcomfort and security. Bimanhas always considered flightsafety as its number one con-cern, which is why it is con-sidered a reliable and trustedairline within the internation-al aviation circuit.

As Biman enters its 41st yearin service to the people andbusinesses of Bangladesh, itplans to open new routes, in-

cluding a direct flight betweenDhaka and New York City. “Wewant traveling to Bangladeshto be as seamless as possible,”says Muhammad Zaikul Islam,CEO and Managing Directorof Biman. “Right now we’re op-erating direct flights from Lon-don to Dakar and once we startflights across the Atlantic, we’llhave the shortest route flyingfrom JFK with one stop atManchester.”

Biman also now reflects the‘the digital Bangladesh’ initia-tives by offering a flexible priceviewing system through itswebsite. This system, avail-able for international flights,makes inquiries into seat avail-ability and pricing much fasterand easier.

It is not only the business orleisure travelers who have ex-perienced the efficiency andstandards at Biman Bangla-desh; in fact it has become theairline of choice for dedicatedHaj pilgrims. Already, Biman

has flown some 45,000 Mus-lims to Jeddah so that theymight complete the journey oftheir spiritual life.

Government-owned, Bimanhas been an integral part of thecountry’s history. “We say thatBiman was one of the first in-stitutions started by the fatherof our nation, BangabandhuSheikh Mujibur Rahman, rightafter our liberation,” explainsMr. Zaikul. And though theairline remains small, it hasgood infrastructure, includinga training center where crew,pilots, ground engineers and allother staff are trained.

In the four decades that theairline has been operating, thecountry has been hit by tur-bulence in terms of political in-stability and natural disasters,and yet Biman remains an ex-ample of the quality of serviceBangladesh delivers and thehospitable nature of the peopleof this small but by no meansinsignificant country.


Theundiscovered

paradise



For travelers seeking beachparadise, Cox’s Bazar offers75 miles of golden sand coast-line, making it the longest un-interrupted swathe of beachin the world. Also nominatedone of the seven natural won-ders of Asia, its turquoise wa-ters are home to numeroussea animals including themighty blue whale; and herevisitors can see towering cliffs,colorful pagodas, Buddhisttemples, enjoy excellentseafood and even surf thecoast’s world class breakers.

There are also the jungle-clad hills, ravines and bamboocovered cliffs of the ChittagongHill tracts, home to the peopleof the Adivasis tribes and an-cient Buddhist monasteries.This is the setting for the stun-ning Lake Kaptai fringed byevergreen forests; and is thezone of Bangladesh’s peaks in-cluding Tahjindong, at 4,632feet, the highest mountain inthe country.

Bangladesh has been a ma-jor tea producer for hundredsof years and this has forgedthe development of thou-sands of hectares of teaplantations that drape therolling hills of the Sylhetregion. Srimangal isknown as the tea capital ofBangladesh and the slopesof the picturesque SurmaValley are crisscrossed withthe terraces of tea gar-

dens set amongst lush greentropical forests. The area hasover 150 tea gardens includ-ing three of the largest tea gar-dens in the world both in areaand production, spread over40,000 acres of verdantBangladeshi countryside.

A visit to the tea planta-tion in Sylhet is unforget-table. The gardens are relicsfrom the days of the BritishRaj and tea plantation man-agers still live in the colonialwhite timber bungalows thatstand on beautifully main-tained lawns. Life in the plan-tations has changed littleover the past two centuriesand the tea gardens make adelightful stop over for visi-tors who can enjoy the tran-quil surroundings whilesipping freshly picked tea.

But natural wonders are notall that Bangladesh has goingfor it. Tourists are beginningto catch onto Bengal cultur-alal wealth too, such as theeighth century Somapuri Vi-hara monastery at Paharpur.Formerly the biggest Buddhist

CCoonnttiinnuueedd ffrroomm ppaaggee 77

� CCHHIITTTTAAGGOONNGG HHIILLLL TTRRAACCTTSSA combination of densejungle, sprawling hills, andbeautiful bamboo-coveredcliffs, the Chittagong Hilltracts are decidedly unlikeanywhere else inBangladesh. Located southof Chittagong, the secondlargest city in the country,the hill tracts are inhabitedby Adivasis (tribal people)who dwell in bamboo hous-es with thatched roofs, andhave a wealth of ancienttraditions. Visiting Bud-dhist monasteries and aboat trip on the KaptaiLake are amongst the rangeof things to do.

� TTHHEE SSYYLLHHEETT DDIIVVIISSIIOONNThe gentle bumpy hills ofthe Sylhet division arecrowned by the gloriousand seemingly never-end-ing vibrant green teaplantations. A must see,Sylhet has 150 tea gardensspread over 40,000 acresof lush Bangladeshi coun-tryside. The stunning andromantic waterfall inMadhabkunda southeastof the city is also a re-freshing sight.

� TTHHEE SSUUNNDDAARRBBAANNSSThe largest mangrove for-est in the world withwildlife straight from thejungle book, the Sundar-bans National Park isdeeply ensconced in mag-ic and mystery. After ar-riving in Khulna, you canboard a luxury tour cruisewhich will take you deepinto the park – a birdwatcher’s paradise whereyou can relax and get lostwhilst realizing every ad-venturers’ dream of seeinga Royal Bengal Tigerroaming wild and in its habitat.

� CCOOXX’’SS BBAAZZAARR The longest un-cut beachin the world, Cox’s Bazarsituated in the southerntip of Bangladesh. Sit backand relax in the soft whitesand or take trips to near-by natural islands on fish-ing boats to see the hiddenbeaches bedecked withsurprising bright redcrabs. There is a range ofhotels available for thoseon any budget. Also rec-ommended is a trip to StMartin’s island at the mostsouthern point of thecountry where the watersare turquoise and the palmtrees reign supreme.

Bangladesh Tourism Board’s top recommendations

monastery south of theHimalaya it coverssome 11 hectares. It isamong the best knownBuddhist viharas in theIndian Subcontinent

and was designated aUNESCO World Her-itage Site in 1985.

The country alsoclaims another UN-ESCO World HeritageSite – the Lost Mosque

City of Bagerhat.Founded in the 15th

century by the Turk-

ish warrior, general UlughKhan Jahan, the city has beenlisted by Forbes Magazine asone of the top 15 lost cities ofthe world. It includes morethan 50 Islamic monumentsand the renowned Sixty PillarMosque constructed with 60pillars and 77 domes; as wellas the UNESCO protectedmausoleum of Khan Jahan.

As recently as 2004 scien-tists discovered an ancientcitadel in northern Narsing-di, 30 miles northeast of thecounty’s capital Dhaka. At

“BANGLADESH IS A TOURISM SPOT. IT ISSO GREEN. YET IT IS NOT JUST THE NATURETHAT MAKES IT SO BEAUTIFUL – IT IS ALSOTHE PEOPLE.” FARUK KHAN, Minister of Civil Aviation and Tourism

A new wave of high-end luxury resorts will contrastsharply with Bangladesh’s breathtaking

natural scenery and architectural treasures

2,450 years old it is one of theoldest monuments in the re-gion and is thought to haveformed the eastern limit ofancient Mauryan Empire.

Fortunately, recent govern-ments have acted with fore-sight to protect Bangladesh’snatural and cultural heritage;and the country is party tokey global environmentaltreaties on biodiversity, cli-mate change, endangeredspecies and hazardous waste.In 2002 Bangladesh took thebold step to ban the use, pro-duction and marketing ofpolyethylene shopping bags;and has also put in place strictcontrols to curb vehicular air pollution.

In addition, the countryhas put in place reforms toconserve its wetlands, gen-erate green electricity andkeep its rivers pollution free.The government has also setup 602,137 acres of nationalpark and protected zoneswhich make up 2% of thecountry’s total area. This in-cludes eight national parks,five conservation sites, sev-en wildlife sanctuaries andone game reserve.

It is hard to understand whysuch a natural paradise whichis also so rich in world-classarcheological sites has beenoverlooked by the globaltourist industry but FarukKahn, Bangladesh’s Ministerof Civil Aviation and Tourism,provides an explanation. Hebelieves that tourists havebeen slow to catch ontoBangladesh because of mis-conceptions about the coun-try as a flood zone as it is oftenonly catapulted into theworld’s media attention intimes of disaster. He says:

“When you talk about floods,it is not the same as it is inBrazil. We have three kindsof floods – low, medium andhigh. Bangladesh must have amedium flood every year inorder to replenish the topsoilfor our fertile land. We havefloods, but they are part ofthe monsoon cycle and keyto our agriculture. They arevery much not flash floodsthat come and destroy every-thing in Indonesia and Brazil.”

Mr. Kahn believes that thereis a huge opportunity for thesustainable development ofthe tourism industry given thecountry’s natural and cultur-al treasures, its stable econo-my and burgeoning homegrown middle class. Thecountry has seen growth ofmore than 6% a year over thelast decade.

The Minister explains thatthe combination of a stableeconomy in a country thatstill has huge room for devel-opment means that now is anexcellent time for investors totake a stake in Bangladesh’spotentially lucrative touristindustry. He says: “If we wantto attract tourists from dif-ferent parts of the world, wehave to develop communica-tions infrastructure and ac-commodation and transportinfrastructure, as well as en-tertainment. I think there isscope to develop this indus-try in my country, and if in-vestors invest in this sectorin Bangladesh, it will be prof-itable, and the country willdevelop. The sector will flour-ish and people will be able todiscover at last the wealth ofunspoiled natural and culturalheritage that Bangladesh hasto offer.”


Documents

Monday, November 19, 2012 BANGLADESH - The Worldfolio · part of the Indian subcontinent under ... the world and the United States is the number one importer of Bangladeshi products