Pran yesterday said to have entered into a contract with the Procter & Gamble (P&G) to manufacture and supply razors for the American multinational consumer goods corporation.
The facility to produce "Gillette Guard Razor Blades" was virtually inaugurated yesterday, said Pran in a press statement.
"It sends a very strong signal not only to other US companies but all over the world. That is because of P&G's size, reputation and position as a successful global company," said Salman F Rahman, the prime minister's private industry and investment adviser.
Advance Personal Care, a sister concern of Pran, will operate the manufacturing facility at Habiganj. Annually it targets to make around 75 lakh razors.
Pran will not market the P&G's products which it would be making, said the statement.
This is yet another step by Pran to manufacture products under contract arrangements as part of its business expansion drive.
One of the major business entities operating in diversified areas, namely processed foods and plastics, Pran-RFL Group manufactures a host of products in food and non-food categories in its facilities.
These range from juice, beverage, yogurt drink, biscuit, puffed rice and noodles to confectionery items. It also makes products for Coca-Cola, Del Monte Foods, Dollarama, Engel Foreign Food, Sherwood Food Distributors and Global Food Trade, said Pran.
Pran said it was engaged in contract manufacturing to earn foreign currency, generate employment and gain experience by working with multinational companies.
Another aim is to make complete use of its production capacity.
The new manufacturing facility to make razors will go into operation this month.
"We are proud to be P&G's partner in manufacturing superior products for Bangladeshi consumers," said Ahsan Khan Chowdhury, chairman and chief executive of Pran-RFL Group which has a yearly turnover of over Tk 14,000 crore.
Madhusudan Gopalan, chief executive of P&G South Asia, said the arrangement would enable it to serve its consumers further.
"It also builds on our commitment to invest in Bangladesh which will contribute towards advancing the country's social and economic development by creating employment and partnering opportunities," he said.
US Ambassador to Bangladesh Earl R Millar termed the day vital as the P&G joined with other US firms to tap into the potential of Bangladesh as a major manufacturing base.
Md Sirazul Islam, executive chairman of Bangladesh Investment Development Authority, hoped for jobs to be created for youths through the initiative.