Deshbandhu invests Tk800cr to expand business

To expand its business, Deshbandhu Group has made new investments of around Tk800 crore during the pandemic even as the entire economy underwent a difficult time.

The Dhaka-based conglomerate invested Tk200 crore in Deshbandhu Food and Beverage, Tk230 crore in Deshbandhu Packaging, Tk250 crore in Southeast Sweaters and GM Apparels, and Tk120 crore in other entities of the group.

At present, Deshbandhu Group has everything, such as sugar mill, cement factory, fertiliser factory, shopping mall, shipping, textile mill, readymade garment factory, beverage, captive power plant, housing, logistics and media.

In March this year, the group also declared a plan of raising $250 million (more than Tk2,100 crore) from international investors through a Sukuk bond as the conglomerate looks to expand its business and repay its local debts.

Deshbandhu Polymer Limited, another entity of the group, plans to raise Tk500 crore by issuing a Sukuk bond for repaying loans and business expansion.

Currently, the group's annual turnover amounts to more than Tk2,800 crore; it employs around 15,000 people.

The new investments are expected to create around 5,000 fresh jobs, according to the conglomerate.

Brigadier General Md Zakir Hossain (retd), director of the group, said Deshbandhu had kept all factories running during the pandemic.

He said that with a daily production capacity of around 800 tonnes, Deshbandhu Sugar Mills is fulfilling around 30% of local demand.

But it has become more challenging due to an increase in raw sugar prices and freight charges, added Md Zakir Hossain.

He said that on the other hand, Deshbandhu Food and Beverage Ltd has become popular within a short time at home and abroad. Mineral water has especially been able to create a huge demand across the country.

Mohammad Maruf Hossain, general manager at Deshbandhu Food and Beverage, said Deshbandhu Food and Beverage Ltd has around 11% market share in the country's beverage industry. It will reach 25% after the installation of new machinery by 2022, he added.

"At present, we are producing 24,000 bottles of beverage per hour. An additional 45,000 bottles will be produced every hour after the completion of the new project," said Mohammad Maruf Hossain.

"We are exporting beverage products to different counties, such as Thailand, Sri Lanka, Malaysia, Greece and the United Arab Emirates."  

In 1989, Deshbandhu Group began its journey through importing and trading fertiliser. Since then, it has steadily been going forward for the last 32 years.