Samuda Food Product and Samuda Chemical Complex, two sister concerns of the TK Group of Industries, will invest Tk 1,744.80 crore at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) to produce consumer goods and chemicals.
"We aim to attract the regional consumers of Chattogram with new products," said Mohammad Mustafa Haider, managing director of Samuda Food.
Initially, Tk 650 crore will be invested, which will hit Tk 1,744 crore or $205.28 million in the next three years, said Haider, also a director of TK Group.
The group yesterday signed an agreement with the Bangladesh Economic Zones Authority (Beza) to take 60 acres of land on lease inside the BSMSN to set up the new production units.
The fresh investment will be used to produce crude soybean oil, soybean cake, refined edible oil, caustic soda, chlorinated paraffin wax, hydrochloric acid, chlorine, sodium hypochlorite and hydrogen peroxide.
"We will be able to create around 1,560 jobs in the two units, the construction work of which will hopefully begin in next January."
The consumer goods unit will go into operation within the next one-and-a-half years and the chemical unit within two-and-a-half years, Haider said.
The market has surplus production of these two types of products as a number of manufacturers are already there in the business, he said.
"But most manufacturing units are situated outside of Chattogram, which creates a good scope for us to occupy the regional market. It would be cost-effective for us considering the geographical location and the presence of strong distribution channel."
The regional market will grow in the days to come, keeping pace with the spiralling purchasing capacity of consumers in the port city, he said.
The manufacturing units will be benefited with the logistics facilities, particularly the transport services available in the city, he noted.
Haider said they will mobilise funds from foreign banks and preliminary negotiation for financing the factories has been completed.
TK Group is one of the largest and diverse business conglomerates in Bangladesh with 43 active business units and more than 12,000 employees.
In the last four-and-a-half decades, the group has invested in edible oils and fats00, steel, board, paper, textile, packaging and containers, tea plantation, ship building, consumer products, trading shares and securities.
Beza encourages the food processors to ensure quality products for consumers, said Paban Chowdhury, executive chairman of Beza.
Investments in the country's economic zones are quite secured and are a result of Beza's hard work, he said.
Not only local companies, but also the foreign ones are investing in the food processing sector, Chowdhury added.
Beza has created a welcoming atmosphere for the investors in the economic zones and it is ready to help them to do business smoothly, he said.