TK Group to invest Tk 6,600cr in Bangabandhu Shilpa Nagar

Samuda Food Products, a subsidiary of TK Group, is set to make a fresh investment of Tk 6,600 crore in the consumer goods and chemical sectors.

Samuda had initially planned to invest Tk 1,744.80 crore but the investment increased as the group got financing assurance from foreign banks.

Samuda has already started work to set up a factory on a 60-acre plot at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram.

"We will set up six factories at the BSMSN in phases for the consumer goods, including food processing, and chemical sectors," said Mohammad Mustafa Haider, managing director of Samuda Food Products.

According to the managing director, they will set up a sugar refinery, seed crushing facility, precast pile, geo tex manufacturing, caustic soda and export-oriented hydrogen peroxide plant.    

Each of the sugar refinery and the seed crushing mill will have a production capacity of about 3,000 tonnes per day, Haider said.

"Basically, we are going to invest in these sectors to grab the increasing demand," he said adding TK will invest Tk 6,600 crore  to set up the factories in phases in the next four-five years.

Haider went on to say that 70 per cent of the total investment will be financed by foreign banks while the remaining 30 per cent will come from equity.

"We already spoke with the financers and they have given us the green signal," he said.

Regarding the investment's potential, Haider said as an investor, he is always hopeful for success in these projects.

"Our target is to produce quality goods to win the consumer's minds. Besides, most manufacturing units are located outside Chattogram, giving us a good opportunity to occupy the regional market," Haider said.

"It would be cost-effective for us considering the geographical location and the presence of a strong distribution channel," he added.

The regional market in question is expected to grow in the days to come, keeping pace with the spiralling purchasing capacity of consumers in the port city.  

Meanwhile, Samuda has started construction of the new units, which are expected to go into operation by 2024.

The company hopes to create around 10,000 opportunities for both direct and indirect employment at these factories.

Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority, said his organisation is working regularly with various training institutes to build the necessary skilled manpower for the huge industrial city.

"There is a continuous struggle going on in the BSMSN to make the impossible possible," he said.

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 fats, steel, board, paper, textile, packaging and containers, tea plantation, ship building, consumer products, trading shares and securities.