50 years, 54 factories and Tk36,000cr annual turnover: The unstoppable rise of Mostafa Kamal

In 1976, a young Mostafa Kamal embarked on a modest entrepreneurial journey in Dhaka. Armed with just Tk650—most of which came from selling a piece of family land in Kanka Paita village, Chouddagram upazila of Cumilla—Kamal established Kamal Trading Company. 

But his bold move was met with scepticism, even from his father, who posed a simple yet piercing question: "Can you do business?"

By the time his father passed away on 29 December 1995, the answer to that question was clear. Kamal had already laid the foundation of what would become a corporate empire. In 1989, he launched a vegetable oil factory, and by 1993, he introduced a dairy and food products line under the now-popular brand name Fresh. 

"Today, Fresh is a household name, used by one in every two families in Bangladesh," Mostafa Kamal told The Business Standard in an interview at his sprawling office on Road 34 in Gulshan-1 on Sunday.

Kamal's drive to expand was relentless. Between 1989 and 2013, he established eight more factories under the Meghna Group of Industries (MGI) banner. But the turning point came in 2016 and 2017 when he secured licences to develop two private economic zones. 

This marked the beginning of an extraordinary phase of growth.

In a feat few could imagine, Kamal set up eight industrial units in 2018 and another nine in 2020. Today, MGI boasts 54 industrial units, employs over 50,000 people directly and generates an annual turnover of $3 billion (Tk36,000 crore)—a figure that surpasses the cost of the iconic Padma Bridge.

Despite his remarkable success, Kamal's journey was far from smooth. 

When he attempted to establish his first industrial unit, Meghna Vegetable Oil Mill, in 1989, he faced rejection from banks unwilling to provide loans. It was the SABINCO, a joint venture financial institution backed by the governments of Bangladesh and Saudi Arabia, that turned the tide. He fondly recalls the pivotal role played by Khorshed Alam, then-chairman of SABINCO, who later became governor of Bangladesh Bank.

Today, Kamal is one of the most sought-after clients for banks in Bangladesh. However, he reveals a preference for foreign banks, citing their lower interest rates and crucial support in managing foreign currency needs for his extensive import operations.

A risk-taker who turned crisis into opportunity

From the humble beginnings of Kamal Trading Company to the sprawling industrial powerhouse that is the Meghna Group of Industries, Mostafa Kamal's journey is a testament to resilience, vision and ambition. His ability to turn crises and obstacles into opportunities has not only transformed his fortunes but also made MGI a giant in Bangladesh's industrial sector.

For instance, during the Covid-19 pandemic, when most businesses were grappling with survival, Mostafa Kamal seized an opportunity. He purchased four ocean-going ships at a cost of $100 million, taking advantage of a slump in prices. 

Today, those ships are valued at $160 million—a clear evidence to his philosophy: "When there is a crisis, there is an opportunity."

"You've to have the courage to take the risk," Kamal reflects.

But Kamal's journey didn't stop there. His hunger for expansion remains unrelenting. In 2022, he secured a licence for his third economic zone, followed by a pre-qualification licence for a fourth zone the next year. 

Four major industrial units, worth a staggering $800 million (Tk9,600 crore), are already in the pipeline. Among them is a $400 million green steel mill, a project that has garnered a $100 million loan from the International Finance Corporation (IFC), marking the largest investment by IFC in a single private sector unit in Bangladesh.

Also, the pipeline includes a $200 million paper mill and a $200 million glass factory, both slated to begin production in early 2024. Kamal has already invested around Tk3,000 crore ($250 million) in civil work for these projects, largely financed by bank loans. 

However, delays in securing electricity and gas connections threaten to derail the timeline, underscoring the challenges of operating in Bangladesh's bureaucratic maze.

Eyeing the future

Despite the energy and logistical challenges, Kamal remains undeterred. He is planning major investments in a petrochemical plant and a board paper mill. Moreover, MGI is actively working towards sustainability, with significant investments in solar energy, waste management, green energy and recycling initiatives.

At the celebration of MGI's 50-year milestone on Sunday (5 January 2025), Kamal reaffirmed his commitment to creating a sustainable industrial empire.

How he continues to avoid loan default

In a country where loan defaulting is rampant, particularly during the 2009–2024 period under Sheikh Hasina's administration, Kamal stands apart. Over the past 15 years, he has established more than 40 industrial units without defaulting on his loans.

The only blemish on his record dates back to 1983-84, when delays caused by corrupt officials at Chittagong port rendered an imported consignment of palm oil unsuitable for consumption. Forced to sell the product at half its cost, Kamal became a defaulter—but not by his own doing.

Subsequent challenges—whether due to domestic crises in 1993-94 and 1998 or global turmoil in 2006-07—were met with determination. Kamal negotiated with banks to extend his credit limits and repayment timelines, always managing to repay in full. 

Even after incurring losses of over Tk2,000 crore due to the devaluation of the taka in 2022 and 2023, he avoided default by keeping these losses off the balance sheet and gradually recovering through operations.

Tireless leadership

Now 70, Kamal's work ethic remains unmatched. Every Friday, he visits his factories in Narayanganj and Cumilla, inspecting every corner and overseeing activities from morning to evening—a routine he has maintained for four decades, barring international trips.

This relentless drive has also been instilled in his four children—three daughters and one son—who, despite being educated in the West, have returned to carry forward their father's legacy.

As Kamal reflects on his extraordinary journey, his father's once-doubtful question— "Can you do business?"—has been answered in resounding fashion. The results speak not just for themselves, but for the enduring impact of a life dedicated to vision, resilience, and hard work.