Bangladeshi agro brand expands abroad with local sourcing

At Carrefour Dubai, the largest hypermarket in the UAE – one of the wealthiest countries in the Middle East – it was observed that "PRAN" was prominently written in Bangla on a juice packet.

PRAN's logo also appears on a wide range of products, including sauces, flattened rice, spices, noodles, chocolate, biscuits, frozen fish, oil, honey, coconut water, and bottled water.

Ashish Kumar, a sales staff member at the superstore, told The Business Standard that a large portion of the food products sold at Carrefour comes from PRAN Group of Bangladesh.

"We have about 150 PRAN products in our stores. These items are available in over 80 Carrefour stores across the United Arab Emirates. Along with Bangladeshis, expatriates from India, Sri Lanka, and Pakistan also purchase these products," he added.

He also mentioned that many local buyers are now purchasing these products as well.

Mizanur Rahman, executive director (Export) at PRAN-RFL Group, told TBS, "PRAN has received an overwhelming response by catering to the tastes of local consumers. This is why we've expanded beyond products exported solely from Bangladesh. Based on consumer demand, we source products from local and subcontinental countries, package them, and market them accordingly. As a result, PRAN is recognised as a subcontinental brand outside of Bangladesh."

Citing an example, he said, "Pakistani flour is very popular and easily available in Dubai, so we source it from Pakistan. Since the export of rice from Bangladesh is prohibited, we procure it from another country. We also source frozen fish from Arab nations and neighbouring countries."

PRAN's products are available in major chain stores such as Carrefour, Nesto, Lulu, and Daily Mall, as well as in a large number of general stores across Dubai. In Ajman, PRAN operates a massive 94 lakh square-foot warehouse with rows of vehicles. According to PRAN officials, their products are stored here after contract manufacturing at Imaging World's local factory. They also maintain a warehouse in Dubai.

Officials at PRAN-RFL Group in Bangladesh say PRAN products are available in nearly all major stores across the UAE, including in Dubai, Abu Dhabi, and Sharjah. Over the past year, PRAN has sold approximately $265 million (equivalent to around Tk3,000 crore) worth of products in the oil-rich.

PRAN has established a strong presence in the UAE in less than two decades, having begun exporting to the region in 2007. Initially focused on Dubai, the company now operates around 400 covered vans, supplying products across the entire UAE. More than 1,000 workers are involved in the import and distribution of products in the country. Additionally, PRAN has several large-scale packaging and warehouse facilities, spanning millions of square feet in both Dubai and Ajman.

In addition to exporting from Bangladesh, PRAN sources and packages products from neighbouring regions, including the UAE, and sells them under its brand name.

Kamruzzaman Kamal, director (Marketing) at PRAN-RFL, told TBS, "PRAN has a presence in more than 145 countries, including the UAE. Initially, our business was entirely export-dependent, but that has changed. Now, we supply products to local consumers through manufacturing and packaging within their respective countries."

"Currently, we engage in contract manufacturing in countries such as India, Malaysia, Thailand, Vietnam, and Indonesia. We have transformed PRAN into a local brand by involving the people of these countries in production and marketing," he added.

Five factories in India

In cities like Kolkata, Guwahati, Shillong, and Agartala in India, PRAN Group's products from Bangladesh – including chanachur, chocolates, drinks, chips, and biscuits – are widely available in almost all retail stores. PRAN products are also found in various other states, including Delhi, Punjab, Gujarat, and Bihar, where Indians are involved in production and marketing.

According to PRAN officials, their products are currently available in 28 states across India, with annual sales of around $60 million (equivalent to Tk700-750 crore). Most of these products are now sourced, packaged, and manufactured locally in India.

PRAN initially began exporting products from its Bangladeshi factories to India in 1997, but today, local sourcing has become the core of its business strategy in the country.

Kamruzzaman Kamal said, "Our strategy is to engage the local population in each country or region by integrating them into our team. This helps transform our products into their own. In India, our local team creates commercials in Indian and Nepali languages, airing them on TV, which has made our products regional brands. Gradually, we've started producing products using locally sourced ingredients, involving locals through contract farming."

In an interview with TBS, PRAN-RFL Group Chairman Ahsan Khan shared, "We emphasise local sourcing for sustainable business. Our goal is to establish factories where wheat and rice production is abundant."

He explained, "At present, we have five factories in India, with strong positions in Northeast India, Kolkata, and Siliguri, and we're also manufacturing in Bangalore. Our vision is to establish a PRAN presence in every state of India."

Additionally, Ahsan Khan mentioned that PRAN has contractual manufacturing arrangements in Nepal and plans to set up a factory in Saudi Arabia later this year. The company is also considering establishing a juice factory in Nigeria.

Local manufacturing to avoid non-tariff barriers

In some countries, non-tariff barriers are imposed to promote domestic trade, and restrictions on marketing foreign products often hamper business expansion. To overcome these challenges, PRAN began establishing partnerships with local companies in various countries.

Kamruzzaman Kamal explained, "We initiated efforts to involve locals in business expansion in 2010, targeting Asian markets such as India, Pakistan, Nepal, Bhutan, Sri Lanka, and the Philippines. PRAN first collaborated with trading partners in these countries, ensuring smoother trade and greater acceptance of our products in local markets."

He added, "We then began contract manufacturing with local companies, producing PRAN-branded products in their factories. This not only helped eliminate non-tariff barriers but also significantly boosted business growth."

What started as a contract manufacturing initiative in India has now expanded to at least 10 countries.

PRAN-RFL is a leading company in Bangladesh's processed food industry and consistently holds the top position in export of these products.

PRAN first entered the export market in 1997, shipping goods to France, where the initial target consumers were primarily expatriate Bangladeshis.

Today, PRAN exports to 147 countries worldwide. In the fiscal 2023-24, the company exported products worth approximately $377 million.