Unicef representatives, Bershka country head visit Beximco Industrial Park

Sheldon Yett, Unicef representative to Bangladesh; Elisa Cortes Gil, chief of resource at Unicef and Serafin Girbes Royo, country head of Bershka visited Beximco Industrial Park.  Syed Naved Husain, Beximco Group Director & CEO took them to show all the units of Beximco's Vertical Leeds Green Certified Industrial Park and they took great interest in Beximco initiatives on value addition and innovation using technology, education and R&D as key drivers.

They were also very keen to be updated on Beximco's initiatives on sustainability including collaboration with Recovertex (A global leader in recycling Post Production Consumer Waste) and other recycling initiatives taken by Beximco, state-of-the-art effluent treatment plant along with RO systems for re-cycling water, the most advanced technology based the world largest sustainable washing plant under one roof and Beximco's automated garment manufacturing factories.

Sheldon Yett was overwhelmed by the wide range of value-added fabrics and apparel produced by one company at one location and the widespread use of digitalization across the campus and 3D modeling linked with key customers, reads a press release. They have visited the Beximco-recover recycling plant which is a global producer of recycled cotton fiber and fiber blends, it turns textile waste into low-impact, high-quality recycled fiber. Sheldon Yett was also overwhelmed by Beximco's important steps toward solving Bangladesh´s textile waste problem and establishing a closed-loop industry.

They have also visited Shinepukur Ceramics which produces fine porcelain and high-end bone-China to customers including Royal Doulton, Royal Albert and others.

Singapore keen to invest more in Bangladesh’s energy sector

Singapore has shown its keen interest to increase investment in different sectors, including energy and infrastructure development, said prime minister’s private industry and investment adviser Salman F Rahman. ‘Though Singapore is a small country, it has many successful projects, including airport, railway. The country has expressed its keenness to increase investment in energy, especially renewable energy. It also expressed eagerness to explore new areas of cooperation,’ he said.

The PM’s adviser said this while talking to reporters after meeting with singaporean transportation minister and minister in charge of trade relations S Iswaran at Bangladesh Investment Development Authority building in the city. The Singaporean minister is currently visiting Bangladesh on the occasion of the golden jubilee of the establishment of diplomatic ties between two friendly nations.

The Southeast Asian island nation is also interested in Bangladesh’s various high skilled areas including digital connectivity and services, technology transfer and looks forward to harnessing the possibilities to raise it to the next level. Salman informed that during the meeting, they have discussed various bilateral issues, including investment in Bay Terminal and signing Free Trade Agreement between the two friendly nations.

‘Signing FTA between Bangladesh and Singapore is essential for increase trade between the two friendly nations. Bangladesh and Singapore have already inked a memorandum of cooperation with an emphasis on development in 16 sectors,’ he mentioned. During the meeting, Salman urged Singaporean entrepreneurs to make larger investments in Bangladesh’s economic zones. ‘Bangladesh is establishing 100 special economic zones across the country. I have invited the entrepreneurs of Singapore to invest in those economic zones,’ he added.

The Singaporean minister applauded the sustained economic growth of Bangladesh under the visionary leadership of prime minister Sheikh Hasina and stressed the importance of further deepening and widening the economic relations between the two countries. He said that Singapore was keen on working in the areas of infrastructure development, energy sector, data mining and various high skilled areas such as digital connectivity and services, technology transfer for further enhancement of bilateral relations.

Beximco Ltd finalised a €32.5 million expansion plan

Bangladeshi conglomerate Beximco Ltd has finalised a €32.5 million expansion plan for its Knit Fabric Facility.

ING Bank and Germany's ECA-Euler Hermes are funding the project which is expected to fosters the expansion and upgrading of its vertically integrated Textile Manufacturing Plant.

The loan agreement was signed by Anil Kumar Maheshwari, COO, on behalf of Beximco Ltd and Lukas Strauch, director and B Ponsioen, MD on behalf of ING Bank.

This milestone that furthered Beximco's international presence, actualised the import of advanced German and other textile equipment through a German exporter; sourcing competitive equipment financing from ING Bank, with an insurance-backed cover from Germany's Export Credit Agency (ECA).

The deal has aggregated 38 equipment suppliers in a single export contract through their international strategic financial advisor – M/s Blend Financial Services Ltd.

On successful financial closure of this Euler Hermes backed transaction, Beximco's Group Director & CEO, Syed Naved Husain said, "This was a very distinctive transaction for us, and it has opened up various avenues for Beximco for its future expansion and growth plans and for the Bangladeshi Textile Industry as a whole towards international financing propelling its global presence to new heights."

Referencing the conglomerate's milestone, Vaibhavi Thakkar, co-founder, and CEO of Blend Financial Services Ltd said, "As a Co-founder & CEO of Blend, we are ecstatic to partner with Beximco in their growth journey that is committed to provide high quality products without compromising its sustainability goals and promoting Bangladesh on an international platform."

Blend is well positioned to provide be-spoke solutions by rallying through its network across all the stakeholders, basis the requirement of the company. In this landmark transaction, Blend has cemented its position as an "Environment Conscious Global Advisor" wherein we partner with our clientele by providing a solution that are aligned to its goals & strategy, she further said.

Beximco Pharmaceuticals COO Rabbur Reza speaks

Beximco Pharmaceuticals isn’t just manufacturing medicine, it’s transforming the collective health of Bangladesh : Rabbur Reza

 

“We’re one of the trailblazers,” COO Rabbur Reza tells to The CEO Magazine. “Bangladesh got its independence in 1971 and at that time, life expectancy was around 52 years and almost 80 per cent of medicines were either manufactured by multinationals or being imported into the country,” he says.

Since its inception in 1976, Beximco has changed all that and today the situation is vastly different. “Over the last four decades, life expectancy has increased to 72 years and we now produce almost 97 per cent of the total medicine made for the country. Additionally, we export to over 70 countries, including the highly regulated markets of the USA, Australia and Europe,” Rabbur explains.

“We are the first US FDA approved pharma company in Bangladesh, and now account for over 20 per cent of the country’s total export of pharmaceutical products. The Bangladesh pharma industry is now very vibrant and forward-looking, and Beximco Pharma has played a significant role in that.”

When Rabbur first joined Beximco Pharma in 1992, he says the company culture was already “excellent”. “It was run by professionals who had big aspirations about how they would like to make this company global because, you see, it originated from two multinationals so it had all the backbones of good quality manufacturing already,” Rabbur explains.

“During my time here, I’ve seen that transformation and we can now proudly say that Beximco has shown the industry how a small pharma company can transform into a bigger global generic pharmaceutical player.”

During my time here, I’ve seen that transformation and we can now proudly say that Beximco has shown the industry how a small pharma company can transform into a bigger global generic pharmaceutical player.

A self-proclaimed people person, Rabbur favours a leadership style that sees him seeking to constantly improve operations and staff experience, and be familiar with every facet of the business.

“I am passionate about what I do,” Rabbur smiles. “I aspire to be among the best and that really keeps me moving. I listen to our team and try to work with them, to sit with the managers and see how they’re doing things, understand their problems and their needs. I try to be a learner. I would say that I’m still learning.”

Rabbur has additional leadership roles of two subsidiaries Beximco has strategically acquired. He is Managing Director of Nuvista Pharma (formerly Organon Bangladesh) and CEO of Synovia Pharma (formerly Sanofi Bangladesh), which Beximco successfully acquired in 2018 and 2021 respectively.

Also integral to the success of the business is the cultivation of strong partnerships – something that Rabbur continues to prioritise. “In all aspects, we try to build a partnership rather than buying and selling a relationship,” he says.

“It’s true that you cannot do that with every organisation, but we have strong partnerships both on the supply side and at the front end, with those who are working with us for the multinational companies and all the leading generic companies or distributors.

Already well on their way to reaching their goal of becoming a key player in the global pharmaceutical arena, from here, Beximco Pharma will only continue to grow and “break new ground”, as Rabbur puts it.

“We are always about continuous improvement. We are enhancing health and wellbeing for people by supplying evaluated medicine and making it affordable,” he says. “We have a very strong focus on CSR activities, on healthcare education for the unprivileged and research in the areas of medical psychiatry.

“And, finally, we are showing the Bangladesh pharma industry how to become global and setting the bar high for generic medicines across the entire world.”

Beximco LPG, Jamuna Oil team up to widen autogas market

Beximco LPG Unit – 1 Ltd entered into an agreement with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, enabling Beximco LPG to setup LPG pumps and commence sales of autogas through the registered filling stations of Jamuna Oil Ltd. The signing ceremony took place at the Chattogram office of Jamuna Oil Company Ltd at Jamuna Bhaban, Agrabad C/A, Chottogram. This agreement will ensure rapid penetration of auto LPG for use in automobiles across Bangladesh.

As per the agreement, Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk 0.50 per liter of LPG that is sold by Beximco LPG through their established auto LPG pumps. Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy and Mineral Resources earlier in 2016, said the release.

The agreement was signed by Md Gias Uddin Ansary, managing director, Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG. General Manager Md Masud Karim, deputy general managers Khasru Azad, Md Masudul Islam, Md Jasim Uddin, Abdus Sabur Khan, and assistant general manager Arshad Azgar Choudhuri, among others, attended the event on behalf of Jamuna Oil Company. Mehedi Hasan, general manager, sales and marketing, Tasnuva Choudhury head of business development and Abu Bokor Siddiqui regional sales manager, Chattogram, from Beximco LPG attended the event.

Speaking at the ceremony, Mehedi Hasan GM, sales and marketing, Beximco LPG, said, ‘This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country. Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle.’

Economy more stable now, says Salman Fazlur Rahman

Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman laid emphasis on diversification of export and reducing the import to stabilise the currency devaluating trend. "Bangladesh's economy is now more stable in any economic indicator. We have to diversify our export. The policy that makes RMG sector as successful, we just have to replicate the policy and initiate it to other sectors," he said.

The adviser said this while speaking at a business luncheon meeting called "Robi presents BMCCI Powerlunch" organised by Bangladesh-Malaysia Chamber of Commerc

e and Industry (BMCCI) at a city hotel. The topic of the meeting is "Anatomy of a Macroeconomic Crisis". Salman Fazlur Rahman said the Bangladesh Bank has taken initiatives to reduce imports at the right time. "When AL-backed government came to power, we have about four thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation," he added.

Malaysian High Commissioner in Dhaka Haznah Md Hashim attended the meeting as the guest of honour while Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin was present as special guest. Executive Director of the Policy Research Institute of Bangladesh Dr Ahsan H Monsur and Country Client and Market Lead of Pwc Bangladesh Mamun Rashid attended as discussants with Syed Almas Kabir, president of Bangladesh- Malaysia Chamber of Commerce and Industry, in the chair. Executive Director of the South Asian Network on Economic Modeling (Sanem) Dr Selim Raihan delivered the key note speech.

Green Sukuk al Istisna’a will give 5.8 per cent return

Beximco Green Sukuk al Istisna’a will give 5.8 per cent or Tk 174 crore as return to its sukukholders for the first six months of the first year (December 23, 2021 to June 22, 2022).

The trustee Investment Corporation of Bangladesh made the decision at a trustee committee meeting. The 5.8 per cent return would be payable on face value of sukuk Tk 100 each. Earlier on July 8, 2021, the BSEC gave approval to BEXIMCO for issuing Tk 3,000 crore Shariah-compliant green Sukuk and the sukuk made debut on January 13 this year.

Beximco Green Sukuk al Istisna’a is issued by Beximco Green-Sukuk Trust as an asset backed Shariah compliant security and the proceeds received from the subscription will be utilised for solar projects of Teesta Solar Ltd and Korotoa Solar Ltd. The tenure of the green Sukuk is five years or 60 months from the issuance date.

The face value of each Sukuk is Tk 100 and the minimum subscription is Tk 5,000 or 50 green Sukuk. The rate of return of the Sukuk is 9 per cent in addition to margin. The margin will be 10 per cent of the difference between base rate (9 per cent) and annual dividend rate declared by BEXIMCO Limited.

The profit of Beximco’s Sukuk will be paid on a semi-annual basis.

Smart Bangladesh on the way

After realising a “Digital Bangladesh”, The government is now working to establish a “Smart Bangladesh”, said the private industry and investment adviser to the prime minister.

The government has various plans to successfully engage in the challenges of the Fourth Industrial Revolution, said Salman F Rahman, private industry and investment adviser to the prime minister."First, we have to learn the coding languages to work with robotics, artificial intelligence, and quantum mechanics. For this reason, we have taken initiatives to teach the primary school students the concepts of coding, which will help them to become skilled programmers in future," said Salman F Rahman in a meeting he attended while visiting the Samsung Research and Development Institute Bangladesh (SRBD) in Dhaka.

"The government has undertaken various programmes under the direction of Prime Minister Sheikh Hasina to take the young generation forward in the information technology sector. We have already realised a 'Digital Bangladesh'. We are now moving towards the establishment of 'Smart Bangladesh'. South Korea has always supported us in these regards," said the adviser to the prime minister.

During the visit, Salman F Rahman expressed his satisfaction upon learning that the young Bangladeshi engineers are working efficiently at the SRBD and thanked the South Korean government and Samsung for the facility. The research centre authorities said young Bangladeshi engineers are also working with a reputation in foreign countries after gaining experience at the centre.

The prime minister's investment adviser called on the South Korean Ambassador to Bangladesh Lee Jang-Keun to help create job opportunities for more young people at the SRBD. At that time, Lee Jang-Keun said the research centre was set up in Bangladesh, like in 14 other countries, on the initiative of the Samsung Group and with the support of the South Korean government. The South Korean ambassador also expressed satisfaction regarding the work of the Bangladeshi researchers employed at the centre. He said with the continuation of good relations with Bangladesh, more Korean companies will come forward to invest in this country and Bangladeshi workers will get job opportunities at their companies.

Salman F Rahman says every industry will be treated like export-oriented factories

Prime Minister's Private Industry and Investment Adviser Salman F Rahman addressed the workshop titled Promoting Occupational Health & Safety for Improving Productivity, jointly organised by FBCCI and ILO at FBCCI as the chief guest and said that the government aims to secure all the industries like export-oriented industries which are producing goods for local market.

The FBCCI has setup a safety council to ensure the professional safety of the industry. The council is working on the basis of national OHS profile and national OHS policy, FBCCI senior vice president informed. 

In his speech, Prime Minister's Private Industry and Investment Adviser  said that "In this connection, the national committee has already inspected 5,200 factories, and the rest of the factories will also be brought under inspection,". He added that many owners were reluctant to start reforms in the garment sector. But now this sector is getting the benefits of decent working environment. In the same way, the pharmaceutical industry of the country has also gained worldwide reputation due to its quality factories.

Gorge Faller, ILO's technical adviser, called for the successful implementation of government policies to make the sector safer. He commented that if the workplace is safe, it is beneficial for both the employer and the worker. He expects Bangladesh should work for the safe and sound workplace so that the world would recognize the "Made in Bangladesh" goods represents safety. Speaking as the special guest, Secretary for Labour and Employment Md Ehsan-E- Elahi said that safety, quality and production are interrelated in the industry. "As the working environment of the factory improves, so does the productivity of the workers and quality of the goods manufactured," he added. The secretary said that the government is working to make Bangladesh free from child labour by 2025.

Beximco Green-Sukuk Al Istisna coming

Twenty banks have subscribed to more than 74% of the private placement amount of Tk2,250 crore of the Beximco Green-Sukuk Al Istisna – the first-ever asset-backed security by a private sector entity in Bangladesh, according to the Dhaka Stock Exchange (DSE). The investments have come from 14-15 December. The rest of the amount has come from brokerage firms, insurance companies, asset management companies, and other corporates.

According to a stockbroker, banks have injected the fresh amount into the Sukuk bond as the central bank has eased the policy for such investment. Due to the Sukuk subscription, the share market fell into a liquidity crisis and that is why indices of both stock exchanges witnessed volatile sessions in the last couple of weeks.


On 27 September this year, the Bangladesh Bank extended till 31 December 2028 the tenure of the capital market special fund for investment in green Sukuk bonds to finance renewable energy, which will not be counted towards a banks' capital market investment limits. On 23 June this year, Beximco Limited secured approval from the Bangladesh Securities and Exchange Commission (BSEC) to launch its Tk3,000 crore Sukuk bond for a five-year tenure. The rest of the amount has come from underwriters and public subscriptions. But Beximco Limited's existing shareholders subscribed only Tk2 crore in the bond.

The Sukuk would be a green one as the company would spend the money on eco-friendly infrastructures. Beximco Limited would expand its textile unit alongside implementing two solar power projects under its power division with the Sukuk money. The Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are jointly working as issue managers.

The base rate of the Sukuk was set at 9%, which means investors would be getting a 9% secured annual return. The margin was set at 10% of the difference between the base rate and the annual dividend that Beximco will pay in a specific year.

The margin would be added to the base rate if Beximco's dividend for the specific year surpasses the base rate. If the dividend is lower than the base rate, there would be no negative margin. Investors can gradually convert their Sukuk to Beximco shares over its five-year tenure, but they can only convert a maximum of 20% of the total in a year. Unexercised options to convert in a year can be exercised in the following year as well, along with the current year's option.