Foreign Investements in Bangladesh

[Naveedm.rahman]

Which is a shame.Heres some good news though

High wave of Chinese investment in 3-5 yrs
Ambassador Li tells The Daily Star

Thursday, September 27, 2012
Staff Correspondent

There will be a "high wave" of Chinese investment in Bangladesh in the next three to five years, said Chinese Ambassador to Bangladesh Li Jun yesterday.

Rising labour costs and economic restructuring in China were forcing businesses to relocate to other countries, including Bangladesh, he said.

"Bangladesh has many advantages, especially in human resources. So, it is a very lucrative place for such relocation," said the ambassador at a views exchange meeting at The Daily Star office.

Mahfuz Anam, editor and publisher of the English daily, moderated the discussion.

Li said bilateral trade between the two countries was growing steadily and that whichever parties came to power (the Awami League or the BNP), relations between Dhaka and Beijing would not be affected.

The ambassador said China had rendered zero tariff treatment to 4,762 products from Bangladesh and 32 other least developed countries from July 2010. The number of products for duty-free export would be raised to over 7,000, beginning from the next year.

In addition, China was keen to invest here to encourage exports from Bangladesh, said Li.

According to him, Chinese investments in Bangladesh have been growing and at least 100 companies have so far come here since he arrived in Dhaka in February this year.

Li said China had sought land from the government for a special economic zone meant for Chinese companies.

"We're in talks. We've got some active responses from Bangladesh on the economic zone."

Trade balance between the two countries is heavily tilted in favour of China, according to government statistics.

Bangladesh's export to China was $320 million in fiscal 2011-12, but import was an overwhelming $5.9 billion.

"Why do I promote Chinese investments here?" questioned the top Chinese diplomat at one stage of the discussion.

"We don't want to export to the US or Europe from here. We'll be exporting to China in a bid to have a positive impact on the trade balance," said Li.

He also talked about the deep sea port that Bangladesh has been trying to build with the help of foreign aid, including China's.

The Chittagong port and a would-be deep sea port could be very useful in developing links between Bangladesh and the South East and North Asian countries.

Li also shed light on Bangladesh-Myanmar relations, which according to him were making progress. About Saarc (the South Asian Association for Regional Cooperation), the Chinese ambassador said the regional cooperation could be much stronger than it was at present.

He talked on national, regional and international issues.

It may be noted that this year is very vital for the Chinese as there will be a shift of power to the next generation at the upcoming 18th National Congress.

Li disapproved of United States strategy in dealing with the Asia-Pacific region.

"The US should give focus on peace and economic development rather than militarisation in the Asia-Pacific region," said the Chinese diplomat.

He also spoke of the escalating confrontation between China and Japan over the Diaoyu Islands, known as Senkaku in Japan. Li said the islands belonged to Taiwan, not Japan.

About China-India relations, the diplomat said border issues were separate from the trade and commerce which were exponentially growing between the two Asian economic powers.

Zhang Lei, chief of the political section of the Chinese Embassy in Dhaka, accompanied his boss at the discussion

[mirzazeehan]

Its excellent to see that LG,Samsung,and many japanese,chinese companies are willing to invest in bangadesh in a big way.The government should spare no effort to bring in these investors and give em special economic zones or EPZs.

I am hopeful that bangladesh will be able to enter the next level of manufacturing and export products like electronics,ships alongside garments within a decade or two

[Naveedm.rahman]

If we can ensure energy security and get over other infrastructural shortcomings then investments wouldnt be hard to get.

But the big problem really is the procurement of space for EPZs or any industrial zones and parks.

We all have our fingers crossed.

[Naveedm.rahman]

Soon, 'Nitol-Tata' shoes, cycles in Bangladesh
Shine Jacob
Kolkata Oct 06, 2012

The Tata Group’s agreement with one of the largest conglomerates in Bangladesh, the Nitol Niloy group, to make footwear and bicycles is likely to bear fruit soon.

Abdul Matlub Ahmed, chairman of the Bangladeshi company, said the brand name ‘Nitol-Tata’ was under consideration for both the products. The shoes would be the first to hit the markets, within six months.

Tata International, part of the Tata Group, and Nitol Niloy had signed a memorandum of understanding in April 2010 to manufacture shoes and bicycles in Bangladesh.
“For shoes, the investment will cross $15 million and the first phase of investment for cycles would be $10 million,” Ahmed said. The 2010 deal was for Tata to export the shoes to Europe and possibly to India. Though the final share allocation and joint venture agreement is yet to be done, “Nitol Niloy is likely to hold the majority shares:, said Matlub Ahmed. The Tata Group did not respond to queries from Business Standard.

The Tata Group’s earlier investment plan for Bangladesh had included the setting up of a 2.4-million-tonne steel mill, a 1-mt fertiliser factory, a 1,000 Mw gas-fired and a 500 Mw coal-fired power plant. This plan for $3 billion of investment, was derailed in 2008.

As for the 2010 deal, the two groups had planned to produce 5,000 pairs of shoes a day in a manufacturing unit there.

Tata is a major presence in Africa’s bicycle market and this was considered a strategy to expand presence in Asia. TIL is into the manufacture and export of leather products. It has also marked a presence in the retail footwear and leather market, through the Tashi brand.

Both companies already have a strong business bonding, as a major thrust of the Bangladeshi firm’s business comes from the marketing of Tata vehicles in that country. It had begun assembling Tata Vehicles in Bangladesh as far back as 1991. And, for this year, it was targeting import of about 2,000 Nano cars.

Source:
Business Standard

[Naveedm.rahman]

IFC to invest $500m in Bangladesh this year

Rejaul Karim Byron, from Tokyo



The International Finance Corporation (IFC), a member of the World Bank Group, plans to invest over $500 million in Bangladesh this year in energy, banking and agriculture sectors, officials said yesterday.

Karin Finkelston, IFC's first vice president for the Asia Pacific, disclosed the plans during a meeting with Bangladesh Bank Governor Atiur Rahman at Imperial Hotel in Tokyo.

Rahman is now in the Japanese capital as part of a Bangladeshi delegation to attend the semi-annual meetings of the WB and International Monetary Fund.

On the sidelines of the meetings, the governor also attended a high-level discussion forum on "South Asia and the global economic crisis: can regional cooperation buffer volatility and enhance growth?".

World Bank Managing Director Mulyani Indrawati chaired the forum, which was attended by finance ministers and governors from South Asian countries.

Speaking at the event, Rahman said countries in South Asia are all on path of growth and poverty reduction, at varying paces and with varying patterns of inequalities in income and advancement opportunities for the poor.

Larger economies like India have been growing at sustained high rates aided by huge inflows of external investment, he said.

Among the smaller economies, Bangladesh has maintained somewhat slower but steady, stable growth with much lower levels of foreign investment inflows, he said.

"On many counts of social advancement indicators, smaller economies like Bangladesh and Sri Lanka have been faring better than their larger, faster growing neighbours, indicating that growth processes in these smaller economies have been more inclusive and equitable."

The governor said problems like inadequate physical infrastructure and income poverty in large segments of population bedevil most of the South Asian countries.

Financial markets in South Asia have proven ill-equipped in intermediating the region's foreign exchange reserves into investments needed in the region.

"This picture of South Asian growth makes a compelling case for regional cooperation and integration as the way forward towards faster, more inclusive growth, stability, and poverty reduction."

"There are lots to be gained from promotion of intraregional trade and investment by way of output, income and employment."

He said there have been numerous initiatives, bilaterally as well as multilaterally in the Saarc forum.

Despite numerous rounds of extensive dialogue and agenda setting, meaningful progress in concrete terms remained slow over the decades, he said.

"Greater trade integration and removal of tariffs will expand regional markets for our exports, compensating to some extent for demand weakness in advanced western economies. Key issue here is lowering non-tariff barriers to trade."

"Greater labour mobility within the region can help enhance output competitiveness in host countries while helping income growth in source countries. This will need major easing of visa restrictions."

On Wednesday, the governor also held a meeting with Takami Onodera, chief executive for the Asia and Oceania at the Bank of Tokyo Mitsubishi UFJ Ltd.

Rahman said Onodera has disclosed his bank's plans to open a branch in Bangladesh. The bank also wants to relocate its business from China to Bangladesh, the governor said, quoting Onodera.

News Source:
The Daily Star

[Naveedm.rahman]

Japanese companies cautious of Bangladesh investments over political uncertainties

By Radhika Seth
October 16, 2012

Politics is a dirty business and you never know when an enemy turns into an ally and which friend turns into a foe. A good number of companies from Japan are serious about investing in Bangladesh, however political uncertainty and regressive business barriers have dampened their spirit. Japanese Ambassador Shiro Sadoshima elaborates that the country has serious issues with energy supply.

Bangladesh’s infrastructure constraints also act as a deterrent and although they have a huge potential to grow, the investors are shying away. If it were just politics, then convincing investors would have been easy, but since Bangladesh is home to unpredictable political violence, things can turn ugly and detrimental towards investors.

Surprisingly, The number of Japanese companies basing their operations in Bangladesh has risen sharply over the past few years. Last year in September there around 113 companies, now the number has risen to 135. Big manufacturers like Honda are thinking of setting up an assembling plant a manufacturing plant is also on the cards. Even medical equipment manufacturer Nipro, will be investing in the country. Two other big food companies and a construction material company are planning their foray. Rising labor costs elsewhere makes Bangladesh a lucrative place to go and set up the manufacturing unit. However if the political fickleness subsides, then we can see a bigger round of investment than it already is receiving.


News Source:
japandailypress

[Naveedm.rahman]

Venky’s to build aquafeed plant in Bangladesh


The Venkateshwara Hatcheries (VH) group has diversified into feed for fish and cattle, and has invested $6.4 million to set up a new aqua feed plant in Bangladesh.

“We are diversifying into aqua feed and are setting up a 3,500 tonnes plant to make floating aqua feed in Bangladesh,” Venkatesh Rao, Managing Director of VH, said.

The project which is in collaboration with the Sterling University and being executed by Group company Uttara Foods and Feeds Pvt Ltd (UFFPL) will go on stream in January. Plans are also afoot to make vaccines and mineral mix for fish, he said.

Rao observed that the opportunity was huge in Bangladesh and added that the scope in coastal states of India like Andhra Pradesh and Tamil Nadu was being ascertained.

News Source:
allaboutfeed.net

[Naveedm.rahman]

Bangladesh receives relatively high FDI: Unctad report

By Mizan Rahman
Dhaka

Bangladesh received ‘relatively high’ foreign direct investment (FDI) in the first half of 2012 when the global investment inflows declined by 8.%, a Unctad report said.
The “Global Investment Trend Monitor” of the United Nations’ Conference on Trade and Development (Unctad), released on October 23, shows about $430mn FDI inflow to Bangladesh in the first six month of 2012, which was only 2.04% lower than the investment in 2011.
The rate of FDI fall in Bangladesh was much lower than the regional falling trend. South Asia during this period suffered 40.1% decline when the investment inflow fell by 42.8% to India.
In the first half of 2012, global FDI inflows reached $668bn, a decline of $61bn or 8% compared with the same period of 2011, as the economic recovery suffered new setbacks in the second quarter of 2012.
The $61bn fall was mainly caused by a decline of $37bn in inflows to the United States and a $23bn fall in inflows to BRIC countries -Brazil, Russian Federation, India and China.
The declines were caused by steep falls in both greenfield investment projects (40%) and cross-border M&A (merger and accusation) transactions (60%), which are also visible in the reduced importance of the equity component of FDI inflows.
Developing countries for the first time absorbed half of global FDI inflows due to the steep fall in flows to the United States and a moderate decline in flows to the EU.

News Source:
Gulf Times

[Naveedm.rahman]

FDI grows higher


Sun, Nov 11th, 2012
Abdur Rahim Harmachi
Chief Economics Correspondent

Statistics show Bangladesh is attracting increasing foreign direct investment (FDI) much more than any previous time, even though the Finance Minister recently expressed his disappointment at foreign funds.

According to the last information available, Bangladesh lured in over $317 million in FDI (net) only in the first two months of the current 2012-13 fiscal (July-August) which is 36 percent higher than the FDI received at the same time last year.

It had received over $233 million between July and August in the last fiscal.

According to a Bangladesh Bank statement, the total FDI in the 2011-12 fiscal was $995 million – the highest ever foreign direct investment in one fiscal year.

Finance Minister Abul Maal Abdul Muhith on Thursday had expressed disappointment at the investment situation. "Our investment has not increased, there is no FDI. Why? Our resources are little, there are so many obstacles, little bribes…"

He also expressed despair at the FDI on Saturday at a seminar organised by the Dhaka Chamber of Commerce and Industry in the capital.

Bangladesh Institute of Development Studies (BIDS) Research Director Zaid Bakht, however, thinks the current FDI rate is good, even though he admitted the amount was less than what was needed.

Bakht on Sunday told bdnews24.com that $1 billion FDI is really small if compared to Vietnam and India.

"But we have no reason to discount this investment when we are in the middle of various problems including political unrest, gas-power shortages, and battered roads."

Currently, energy and telecom sectors are wooing most of the FDI. The cement sector is also getting some investments.

Bakht emphasised ensuring political stability to increase foreign investments. "Investment -friendly environment must be ensured first to increase investment. The government's policies and assistance will have to be in favour of investment."

The Finance Minister on Nov 8 had blamed Nobel laureate Muhammad Yunus' 'propaganda campaign' against Bangladesh in the international arena for not receiving expected foreign investments.

Asked whether that issue was actually influencing the FDI, Bakht declined comment.

Yunus has already refuted the minister's remarks. On the other hand, Muhith on Saturday also released a statement clarifying his remarks.

In the statement, he said that official assistance of different donor countries and agencies have increased massively in the last three years, but they were not keen to invest directly in Bangladesh.

News Source:
bdnews24.com

[mirzazeehan]

BoI receives record $1.78b FDI proposals in Nov
Published : Monday, 10 December 2012
Shafiqul Islam Jibon

The Board of Investment (BoI) received FDI (foreign direct investment) proposals worth more than US$ 1.78 billion in November, the highest ever in a single month exposure of its history, sources said.

The BoI officials have expressed satisfaction over their performance to register and provide prompt certification of foreign investments in Bangladesh.

Last month at least 14 projects of various reputed companies around the globe were registered with the BoI for investment of a total $ 1.7861 billion ($ 1786.104 million) in Bangladesh.

Though the BoI has no available data to register FDI for July 2012, it has registered FDI proposals worth $ 18.736 million, $ 343.1019 million and $ 53.778 million in August, September and October 2012 respectively.

"BoI cannot make any prediction about the actual investment inflows after providing certification of registration for investments in Bangladesh; but we are happy with the proposed foreign investments for November intake, as we have received proposals for over $ 1.78 billion in a single month," Executive Council Member of the BoI Nabhash Chandra Mandal told the FE Sunday.

"We can also mention that the proposed investment in November has reflected a positive and firm interest of the foreign investors for Bangladesh," Mr Mandal, who is also the official concerned for the FDI, said.

According to the 2012 World Investment Report (WIR) of the UNCTAD, Bangladesh received FDI worth $ 1.13 billion ($ 1136.38 million) in 2011, the highest in its history, showing a 24.42 per cent rise compared to the FDI received in 2010.

Bangladesh had received FDI worth $ 910 million in 2010. The FDI inflows in 2008 were worth $ 1.08 billion as it was also the second highest in history.

Among the countries South Korea, Singapore, UAE, UK, USA, Japan, Malaysia, Norway, KSA and the Netherlands now remain at the BoI's chart with the highest FDI in Bangladesh.

Some other countries such as China, Germany, India, Hong Kong, Sri Lanka and investors of the existing countries are showing interest for fresh investments in Bangladesh.

Source:http://www.thefinancialexpress-bd.co...85MF8xNTI2NzM=

[Naveedm.rahman]

UBiFrance willing to invest in BD SMEs

French Trade Commissioner meets CCIFB members

Published : Friday, 14 December 2012
FE report

French trade promotion agency - UBiFrance - is looking for penetration of French business at small and medium enterprise (SME) sector in Bangladesh through the France Bangladesh Chamber of Commerce and Industry (CCIFB), its members and other entrepreneurs.
UBiFrance, under the Ministry of Economics and Finance, wants to expand French business in renewable energy, textile machinery, infrastructure development and some other technology-based sectors.
French Trade Commissioner for India Pierre Lignot said these at a discussion with the CCIFB members and business entrepreneurs in the city Wednesday during his two-day visit to Bangladesh.
CCIFB vice-president and Totalgaz Bangladesh managing director Kazi Samiur Rahman presided over the meeting.
Among others, French Ambassador in Bangladesh, trade commissioner Eric Blanc, Rahimafrooz managing director (MD) Niaz Rahim, ACI Limited MD Anis Ud Dowla, Technoheaven MD H N Karim, CCIFB director Rifat Rashid, and representatives of Square Pharmaceuticals, CMA-CGM BD and Sanofi-Aventis were also present in the programme.
The local entrepreneurs sought French investment in different high-tech sectors, where there would be transfer of technology to the country.
Lignot said, "We've planned to expand French business in Bangladesh along with the existing large-scale investments of the French companies. We hope the new penetration would contribute to development of technology and infrastructure."
There are a lot of opportunities in Bangladesh. There would be a new dimension of French investment in Bangladesh by strengthening bilateral relationship between the countries in trade and business, he added.
Niaz Rahim said various investment opportunities still remain in the renewable energy sector of Bangladesh.
Anis Ud Dowla said there are scopes for developing poultry and animal vaccines in Bangladesh, and foreign companies can invest here.
In the programme participants of the representing pharmaceuticals companies focused on growth of local pharma market, and export performance of Bangladeshi drugs in the international regulatory market.

News Source:
The Financial Express

[Naveedm.rahman]

Italian financier eager to give long-term credit to private entrepreneurs in BD

Published : Thursday, 13 December 2012
Shafiqul Islam Jibon

An Italian financial institution--International World Investment Loans (IIWL) is eager to extend long- term credit to the private entrepreneurs in Bangladesh.
In a recent meeting held in Dhaka with the senior officials of the Board of Investment (BoI) a business delegate of the IIWL proposed to facilitate long- term credit in Bangladesh, BoI sources said.
"Some reputed foreign financial institutions, including the IIWL, have shown keen interest to extend private sector credit as our local businesses have emerged in recent years," a senior official of the BoI told the FE Wednesday.
The seven- member delegation of IIWL, based in Parma, Italy, during its visit to Dhaka last week met with the BoI officials about their financing plan in Bangladesh.
The IIWL is operating at world level, to fund, collaborate with state-owned and state-controlled companies, but it also funds private companies and individual entrepreneurs, to invest in employment-generating activities.
It was established in the early '70s from a century-old family business.
Now the company can provide loans to the both private and public sector through various long -term projects like hospitals, waterways, motorways, toll roads, houses for civil use, any kind of building, deforestation and afforestation activities, schools and masonry works for the army.
However, the financing for states or state-owned and state-controlled companies cannot be guaranteed with the CD (Certificate of Deposit), it requires International Promissory Notes of small denomination, signed by the government or by someone on its behalf, and endorsed by the central bank of the same country, according to website of IIWL.
It can finance and build the projects by paying the entire amount of money of the project.
While talking to the FE on Wednesday the Executive Council Member of the BoI Mr. Nabhash Chandra Mandal said, "We have welcomed the Italian financer as we assured them of providing all necessary supports."
It is also a good sign for the country that some reputed foreign banks and financial institutions are coming forward for project financing in Bangladesh. That is why a good number of private companies have received a significant amount of foreign loans in recent months, he added.
During last six months (June, 2012 -- November, 2012), the BoI scrutiny committee for approval of foreign loans and suppliers' credits has approved about $1.09 billion for, at least, 31 private companies in the country.
The highest rate of interest for most foreign loans is set at an average of three months' LIBOR rate (London inter-bank official rate) + 4 per cent, that is within 5.0 per cent.
According to the latest policy of the BoI, private companies can now take recourse to foreign loans or suppliers' credits from the overseas institutions.
Private companies are not required to obtain any prior approval from the BoI for availing such credit if rate of interest is LIBOR +4 per cent.
The down payment, if required, in cases with suppliers' credit, should not exceed 10 per cent of the credit amount and repayment period should not be less than seven years.

[jason.kazi]

Koica to provide $ 12.8m to set up institute for nurses

The Korea International Cooperation Agency (Koica) will provide US$ 12.8 million to Bangladesh to establish a National Institute of Advanced Practice Nurses, reports UNB.
A Record of Discussions (RD) in this regard was signed between Koica and the Economic Relations Division (ERD) on Sunday at the ERD conference room.
During Prime Minister Sheikh Hasina's visit to Korea in May 2010, the Korean and Bangladesh governments jointly initiated the project.
Resident Representative of Koica Bangladesh office Kim Bok-Hee, joint secretary of ERD Mohammed Asif-uz-Zaman and joint chief of the Health and Family Welfare Ministry Niru Shamsun Nahar singed the deal on behalf of their respective organisations.
Under the agreement, Koica will support the national initiative of Bangladesh to enhance the teaching capacity of nurse-teachers in Bangladesh by establishing the National Institute for Master's Degree Programmes in nursing in order to increase health services for people by producing quality nurses.
In addition to setting up of training centre and hostel facilities, Koica will also provide necessary educational equipment and furniture, dispatch Korean experts for technical guidance, and develop modules, said a press release.
According to the agreement, Koica will also invite 58 Bangladeshi nurse-teachers, including three nurses for PhD courses in Korea, in order to receive training on modern nursing education systems.
The project will establish a Community Based Nursing Center at Mugdapara Hospital.
This five-year project will be jointly implemented by Koica and the Directorate of Nursing Services (DNS).

Source: News Today

[Naveedm.rahman]

Friday, January 18, 2013

Mitsubishi to make Mirage cars in Bangladesh

Plans to invest Tk 400cr

The Mitsubishi Mirage is now available in Bangladesh at a starting price of Tk 20 lakh. The five-seater is aimed at the middle class with a three-cylinder engine that could go 16km on one litre of petrol. The small family car is brought to Bangladesh by Rangs Ltd

Japan's Mitsubishi Motors Corporation plans to set up a manufacturing unit in Bangladesh to produce sedan cars for the local market.

The company will set up the unit under a public-private partnership (PPP), with an initial investment of Tk 400 crore, Masahiko Ueki, Mitsubishi's corporate general manager, said yesterday during his meeting with Industries Minister Dilip Barua.

The production of the car, Mirage Sedan, in Bangladesh will create employment and value addition, said Ueki, while adding that the price of the vehicle would not exceed Tk 15 lakh.

He also suggested the government reshuffle the duty structure, particularly on the imports of completely knocked-down cars (CKD).

“Now, the duty rates on the CKD and CBU [completely built unit] are the same,” Ueki said.

Barua said people's purchasing power is increasing because of the government's co-ordinated financial policy.

“As a result, car ownership is increasing. Bangladesh is now a lucrative market for the automobile industry.”

Romo Rouf Chowdhury, managing director of Rangs Ltd, the sole distributor of Mitsubishi vehicles in Bangladesh, was also present at the meeting.

Earlier on Wednesday, Rangs launched Mitsubishi's latest fuel-efficient, compact vehicle -- Mirage -- targeting the country's growing middle-class population.

Source:
The Daily Star

[hakz2007]

Making Bangladesh an attractive investment destination

Bangladesh has the potential to attract US$ 5.0 billion in foreign direct investment (FDI) a year, according to some studies. The country could have become one of the fastest growing FDI-recipient countries in South Asia if the had undertaken investment-friendly policies and made all necessary facilities available.

According to the latest World Investment Report (WIR) of the United Nations Conference on Trade and Development (UNCTAD), Bangladesh advanced some steps among the top 74 FDI-recipient countries across the world. The WIR said increased reinvestment and intra-company loans offered by existing foreign companies, including those in telecom, energy and financial sectors, helped boost FDI flow to Bangladesh during the past few years.

Read more

[jason.kazi]

India's Ujala maker sets up factory in Tongi
Jyothy Laboratories, Kallol Group invest Tk 7.5cr

Suman Saha
Jyothy Laboratories Ltd, an Indian fast-moving consumer goods company, is set to open its first subsidiary in Bangladesh in April.

The company has set up a factory in Tongi, in a joint venture with Bangladesh's Kallol Enterprises, to manufacture detergents and cloth whitening liquids.

The subsidiary is named Jyothy Kallol Bangladesh Ltd, Ghulam Mostafa, managing director of Kallol Group of Companies, told The Daily Star, while adding that the total investment has so far been Tk 7.5 crore.

The Mumbai-based company holds a 75 percent stake in the subsidiary, while the remaining by Kallol Enterprises.

Bangladesh has witnessed huge demand in washing powders and cloth whitening liquids in the last several years, due to the fast growing middle-income group.

“People in urban areas no longer want to wash clothes the traditional way -- they now use detergents and whitening liquids. We want to cater to this segment,” Mostafa said.

The new factory will initially manufacture Jyothy Labs' popular brands -- Ujala Washing Powder and Ujala Blue liquid -- for the domestic market.

Kallol Group has been the sole importer and distributor of Jyothy Labs' products in Bangladesh over the last 14 years.

Jyothy Labs also plans to roll out the recently-acquired brands of Henkel, a manufacturer of laundry and homecare products and toiletries.

Jyothy Labs currently exports to the neighbouring countries, Middle-East and Malaysia, which contributes to around 3 percent of its turnover.

Kallol Group, which started its journey in 1972, has its own manufacturing units for detergent powders and washing soaps.

It also represents upwards of 300 FMCG products and 18 international watch and writing instruments' brands and has an annual turnover of $50 million, according to the company's website.

Source: The Independent

[Naveedm.rahman]

Ceat forms JV with Bangladesh co; to invest $ 67 mn

MUMBAI, JAN 25


RPG Group’s tyre-making arm Ceat today announced formation of a joint venture company with the Bangladesh-based AK Khan & Company to set up a manufacturing facility in the neighbouring country.

The facility, which will come up at the investment of $67 million, is expected to be functional by December 2014, Ceat said in a statement.

The 110-tonnes per day facility will roll out tyres for trucks, LCVs and 2/3 wheelers for the Bangladeshi market.

The joint venture, in which Ceat will hold 70 per cent stake, is a part of the long-term strategy for both the partners to have a presence in the growing tyre market in Bangladesh, the release said.

“This strategic partnership will enable us establish a leadership presence in the large tyre market of Bangladesh,” Anant Goenka, Managing Director, Ceat said.

Under the agreement, Ceat will provide technical and business expertise and manage the JV operations, while AK Khan will bring in knowledge of Bangladesh market besides providing the strength of “goodwill and local presence”.

“The plant will earn valuable foreign exchange for the country by exporting approximately 20 per cent of its output to the region and rest of the world,” Salahuddin Kasem Khan, Managing Director, AK Khan & Company said.

News Source:
BusinessLine

[TariqHasan]

Originally Posted by Naveedm.rahman

Friday, January 18, 2013

Mitsubishi to make Mirage cars in Bangladesh

Plans to invest Tk 400cr

Source:
The Daily Star

I'm kinda tired of this news. This is the third time I've heard about it. First in early 2000, second time between 2007-8 and finally now.

[Naveedm.rahman]

April 21, 2013
Foreign Direct Investment Into Bangladesh Rose 10.1% From July Through February


DHAKA, Bangladesh--Foreign direct investment into Bangladesh rose 10.1% in the first eight months of the current fiscal year, China's state-run news agency Xinhua reported Bangladesh central bank data as showing Sunday.

Xinhua said the Bangladesh Bank data showed that from July through February, net foreign direct investment inflows reached $950 million, compared with $863 million in the same period in the 2011-2012 fiscal year. The Bangladesh fiscal year ends in June.

Net foreign direct investment inflows into the South Asian country in the 2011-12 fiscal year stood at about $1 billion, Xinhua reported.

Wall Street Journal

[TIslam]

The Weekly Holiday
Friday, April 26, 2013

Business Report

Japanese ambassador to Dhaka Mr Shiro Sadoshima last week wondered why Bangladesh leaders are destroying the country’s investment climate disclosing the news that most Japanese investors who wanted to make investment here are now turning their back due to prolonged political crisis.
He said he was frustrated at the spate of hartal and other violence which are scaring Japanese investors. He said was not however pessimist and hoped the leaderships here would find a solution to the problems through dialogue.
He said he wanted to see more Japanese investment missions coming here and making investment but the reality was the opposite.
The envoy said an important business delegation organized by Jetro comprising young businessmen and researchers from big Japanese companies like Sony, Rico, Mitsubishi (shipbuilding), Toyota and others came to Dhaka at the end of February.
When the delegation was in Chittagong there was a cocktail blast in front of their hotel, they got scared and flew back to Japan.
He said, many delegations from Japan including a senator in overseas development assistance committee had to cancel their scheduled visits to Dhaka in mid March due to hartals.
Shiro said one year ago when he came to Dhaka take up his assignment as ambassador, a number of Japanese companies showed their interest in doing business with this country, but due to recent political unrest, they have clearly lost the impetus.
Japan is number one bilateral donor for Bangladesh, he said, adding that he was not only deeply concerned about the present political situation having an adverse impact on the country’s socio-economic activities but is also extremely shocked to see violence taking the lives of innocent civilians,
causing injuries and damaging property like trains and vehicles.
He said hartal is not bad as a means of protest but it should be peaceful without violence and anger. Sadoshima reiterated that divergences of opinions should be bridged peacefully through dialogues among all the parties and groups concerned.
Stressing the need for dialogue among the political parties to settle the problems peacefully, he repeatedly said ‘Please, come together, sit and talk.’

http://www.weeklyholiday.net/Homepag...ate=0#Tid=4802