PRAN Foods Ltd

PRAN: Pride of Bangladesh in Agro-processing Sector

Pooja Thakkar PRAN has blossomed into a leading Food and Beverage Brand in Bangladesh under the inspiring leadership of a former Army General

The third floor of PRAN-RFL Center the !orporate head"uarters of PRAN-RFL Group is a beehive of a!tivity all day #ith employees brainstorming ideas for innovative food produ!ts and !olourful pa!$aging #hi!h enti!e !ustomers at a glan!e% Bright designs fill the !omputer s!reens% The latest food produ!t being designed is noodles -- a ne# item among more than &'' PRAN(s food produ!ts% VISION OF MAJOR GENERAL AMJAD KHAN CHOWDHURY, THE SOUL OF PRAN: Ten years ago the )ntermediate Te!hnology *evelopment Group an NG+ promoting food pro!essing as an in!ome generating a!tivity for poor people held a training !ourse and as a venue used the garage of a retired army ,a-or General% .o inspired #as the ,a-or that he set up a food pro!essing business selling sna!$ foods no# $no#n as Pran Foods #hi!h is one of the biggest Companies in Bangladesh today #ith a turnover in the millions of dollars% The ,a-or General #as none other than ,r% Am-ad /han Cho#dhury #ho is no# the ,anaging *ire!tor and Chief 01e!utive +ffi!er of PRAN-RFL Group% PRAN stands for Programme for Rural Advan!ement Nationally and has be!ome Bangladesh(s largest gro#er and pro!essor of fruits and vegetables% For ,r% Cho#dhury no# a leading businessman the beginning #as far from smooth% 2e tried his lu!$ in different se!tors ranging from real estate to manufa!turing of foundry items after retiring from Bangladesh Army in 3453% But none of them paid him the best yields% This did not dis!ourage ,r% Cho#dhury to start a ne# business% 6) observed that there #as a huge gap bet#een supply and demand in agro-pro!essing business in Bangladesh% .o ) de!ided to start the entrepreneurial -ourney in agro-pro!essing business 7 said ,r% Cho#dhury% )n 3458 ,r% Cho#dhury leased si1 a!res of land in Narsingdhi east of *ha$a to serve farmers and mar$et its Farm produ!e% )nitially the !ompany !ultivated papaya banana pineapple% But ,r% Cho#dhury soon reali9ed that a good harvest often did not mean a fair pri!e due to gluts in the mar$et% .o he set up his o#n agro-pro!essing plant in Narsingdhi #ith a !anning : bottling line% 2e began #ith sli!ed pineapples in !anned form and gradually !ame out #ith mango drin$s -ams and -ellies #ith a plan to !ater to both domesti! and foreign !onsumers% To learn the business of preservation and pro!essing ,r% Cho#dhury travelled to Thailand Tai#an )ndia Pa$istan and the ;.% <That #as the turning point in my life < said the inspiring businessman #ho bet on Bangladesh=s !omparative advantage in tropi!al !limate fertile soil and ample sunshine% A small idea in agro-pro!essing business has made ,r% Cho#dhury an employer of more than >' ''' people dire!tly and ?@ ''' farmers !ountry#ide% Born on November 3@ 34@' in Natore ,r% Cho#dhury studied at .t Gregory=s .!hool in +ld *ha$a% After his se!ondary edu!ation he -oined the Pa$istan Army% 2e is best des!ribed as an entrepreneur and a hands-on manager% Blending the ob-e!tives of a!hieving so!ial values together #ith pe!uniary advantage and !reating -obs in Bangladesh(s impoverished rural environment through finan!ially profitable enterprises

is his mission in life% +n Aune &8 &'33 ,r% Cho#dhury #on the Business Person of the Bear a#ard by 2*L : the *aily .tar C the largest !ir!ulated 0nglish dailies in the !ountry and has also been ele!ted as the President of ,etropolitan Chamber of Commer!e and )ndustry *ha$a D,CC)E #hi!his one of the oldest leading and prestigious organi9ation of the !ountry% ESTA LISHMENT OF PRAN PRAN #as established in 3458 to !reate #ealth by adding value to farm produ!e and generate employment and in!ome in rural areas% 6.till no# farmers are the prin!ipal benefi!iaries of our group 7 says ,r% /amal /amru99aman *ire!tor ,ar$eting at Pran Foods% PRAN is one of the leading food and beverage produ!ers in Bangladesh% The !ompany produ!es a #ide range of produ!ts #hi!h !an be !ategori9ed into si1 broad !ategoriesF

Aui!e *rin$s Culinary produ!ts Confe!tionery *airy .na!$s

The Company has been !ontra!t farming in ri!e pulses and tomatoes% They have been very su!!essful in produ!ing aromati! ri!e #hi!h has !aptured a good mar$et overseas% Pran Food(s !ontra!t gro#ers !ultivate the !hoi!est fruits and vegetables #hi!h are pro!essed in their modern and hygieni! fa!tories to highest "uality : international standards% The Company has the distin!tion of a!hieving prestigious !ertifi!ate li$e ).+ 4''3F&''' and being the largest e1porter of pro!essed agro produ!ts to more than GG !ountries #ith the !omplian!e of 2ALAL : 2ACCP% PRAN FOODS! CURRENT PROJECTS The Company is planning to set up food pro!essing plants in Tamil Nadu Tripura and +rissa% )t is in advan!ed stages in setting up the Tripura agro pro!essing plant #ith an investment of ;.H 8 million% Lately Pran Foods is fo!using on its *airy business% 6Currently #e are very strong player in Aui!es drin$s .na!$s Culinary : Confe!tionery% *airy industry is one of the best suited se!tors for the generation of employment and thus ameliorating poverty in rural areas of Bangladesh providing -obs to the #hole family in!luding men #omen : !hildren ali$e% )t is a most profitable o!!upation too as no part of the bovine is #asted live or dead 7 said ,r% /amru99aman%

PRAN is a dominant player in the lo!al mar$et but its a!hievements have been more spe!ta!ular in the international mar$et pla!e% 6Ie #ill be fo!using more on e1port mar$ets in days to !ome 7 added ,r% /amru99aman% ,r% Cho#dhury ho#ever has plans to retire from the group and hand over the ste#ardship to his sons on!e the *airy be!omes a mar$et leader% PRAN"# STRENGTHS PRAN is a Con!eptF a #ay to fight poverty and hunger in Bangladesh in the shortest possible of time through employment generation% PRAN has made signifi!ant investments in agro pro!essing% The Company aims at !reating demands for farms produ!e #hi!h #ill !reate -obs in rural areas and preventing urban migration%

Pro$%&' (%a)*'+, PRAN is the first and only food pro!essing !ompany in Bangladesh to earn the prestigious distin!tion ).+ 4''3 !ertifi!ate% This supreme !ertifi!ation ensures that PRAN produ!ts rea!h the !onsumer maintaining the height level of "uality% C%#'o-.r Sa'*#/a&'*o0,Good Juality Produ!ts of international standard !onforming to lo!al tastes health : hygieni! standards% Affordable pri!es #ithin the rea!h of target !onsumers% PRAN Food Produ!ts areavailable every#here all the time% Good management% .$illful and trained employees% Good promotional a!tivities

PRAN"# SINCERITY AND HAPPY CUSTOMERS PRAN is the largest food !ompany in Bangladesh : intends to be the number one in Asian !ountries% 6To get there #e are trying to add value in every thing #e do% Putting e1treme fo!us on innovation : upgrading of our management to !ope up #ith the !hanging !ir!umstan!es : gro#% Ie are also putting spe!ial fo!us on e1port mar$ets and getting organi9ed in ma-or mar$ets understanding the lo!al needs 7 said ,r% /amru99aman% Though situated in Bangladesh PRAN GR+;P has to $eep a !lose loo$ at the so!ial and !ultural !hanges of other !ountries sin!e the Company(s !ustomers are based a!ross the globe% The Company uses the same business and management strategy nationally and internationally and e1ports all its produ!ts under the same brand name% 0!onomi! environment is the most important of all that the organi9ation has to deal #ith% As it is an e1port type organi9ation Pran Foods has to monitor the e!onomi! situations of Bangladesh and the other !ountries #here it e1ports its produ!ts% )t ta$es !are of elements li$e inflation rate gross domesti! produ!t unemployment rate value of lo!al !urren!y against foreign !urren!y et!% The Company believes that e1port of foods and agri!ultural items are bright hope of light for Bangladesh(s e!onomy%

.in!e PRAN(s Food produ!ts are #idely available and highly affordable they have large produ!tion base and effe!tive distribution !hannels% Company has appointed .ales for!e all over the Country% 0a!h department has their o#n de!ision ma$ing po#er at the most lo#er level% .o their organi9ation stru!ture is highly de!entrali9ed% The Company identifies needs and #ants of the target mar$et and delivers the desired produ!ts better than its !ompetitors% They al#ays try to redu!e produ!tion and distribution !osts so that they !an offer produ!ts at affordable pri!es% PRAN AND ITS PEOPLE PRAN re!ruits through out the year% )t randomly uses )nternet for advertising press national and international press media the va!an!ies for all departments #hi!h helps them to attra!t people from all over the !ountry%

Leaders are positive role models not K*o-as-)-say( authority figures% The organi9ation(s belief system is reinfor!ed through fre"uently shared storied myths and legends% ,anagers stay visible and personally involved in all areas through a!tive informal !ommuni!ation% Personal values are dis!ussed openly not buried% 0mphasis is on internal gro#th not mergers% 2ead"uarters staff is $ept smallL talent is pushed out to the field% Personnel are driven to get obsessed to a!hieve Customer .atisfa!tion%

GOOD TIMES AHEAD Today PRAN has be!ome themost #ell $no#n name among the millions of people in Bangladesh and abroad% ,r% Cho#dhury said he had a dream that the produ!e of Bangladesh=s poor farmers #ould one day be relished on the dining tables of the families spread a!ross the #orld% <That dream has been fulfilled < he said% <Ihether it is !hinigura ri!e spi!es mango drin$s or sna!$s the =,ade in Bangladesh= label is li$e the flag of Bangladesh and it is going tomore than GG !ountries in the #orld% ) feel very proud of it% Good days are ahead 7 he happily remar$s%

Go1' a))o2# .34or',*-4or' 'ra$. 2*'h h%'a0 'hr%! )a0$ 4or'#

The government has allo#ed e1port import business #ith Bhutan through Gobra$ura /oraitoli and Na$ugao land ports #ith a vie# to utilising business opportunities bet#een the t#o !ountries a high offi!ial of National Board of Revenue DNBRE said% NBR in an offi!ial order on February 33 last announ!ed the de!ision to open the ports for both #ay trade% Lo!al e1porters e1pressed their mi1ed rea!tions to the possible benefits of the latest de!ision of the government% .ome e1porters said Bangladesh #ould not be benefited mu!h from the de!ision if the government fails to get duty free a!!ess of beverage and food items from the Bhutanese government% A!!ording to them Bangladesh=s ma-or e1portable items to Bhutan are fruit -ui!e and some other !rispy food items% But from Auly &'3& Bhutan imposed up to fifty per !ent duties on the items for #hi!h e1port earning of the !ountry from Bhutan drasti!ally dropped in the !urrent finan!ial year DFB-3&-3>E% A!!ording to data available #ith 01port Promotion Bureau D0PBE Bangladesh has e1ported goods #orth only ;.H3%'G million in Auly-February period of FB3&-3> against e1port #orth H4%3> million a year ago DFB-3&-3>E% <+ur e1port to Bhutan had in!reased gradually till Aune &'3& but after imposition of ta1es on fruit -ui!e in Auly last by Bhutan e1port of the goods to the !ountry fell drasti!ally < ,ar$eting *ire!tor of Pran RFL Group /amru99aman $amal told the F0 .unday% Pran RFL Group is the main e1porter of Bangladeshi goods to Bhutan a!!ording to 0PB data% <)f the government fails to get duty free a!!ess of all its goods to Bhutan then import #ould ultimately in!rease and lo!al mar$et #ould be flooded #ith Bhutanese produ!ts < /amal added% +n the other hand apparel e1porters hailed the government de!ision% They said that due to the #idening of s!ope of both #ay trade apparel e1port of the !ountry #ould in!rease signifi!antly% <Readymade garment DR,GE e1porters spe!ially small and medium #ould be benefited from the de!ision as there is huge demand of !heap Bangladeshi R,G items in Bhutan < first vi!e-president of BG,0A .iddi"ul )slam told the F0% 2o#ever an 0PB high offi!ial said Bhutan=s e1ports to Bangladesh are more than imports as far as balan!e of trade is !on!erned% <This is a!tually driven by more demand for spe!ifi! goods%<

The volume of trade bet#een Bhutan and Bangladesh in &'33-&'3& #as around ;.* &&%' million% Bhutan e1ported goods #orth about H34%' million #hile Bangladesh e1ported only around H>%@& million to Bhutan during the year% <Trade bet#een the t#o !ountries is rather negligible and heavily tilted to#ards Bhutan so #e have to !on!entrate on getting duty free a!!ess of our main produ!ts to Bhutan after #idening the s!ope of trade < he said% Bhutan and Bangladesh=s e1portMimport !urrently ta$es pla!e through only t#o LC stationsL all the goods pass through the )ndian states of Assam and ,eghalaya% Bhutan imports items li$e fruit -ui!e garments pharma!euti!als toilet soap melamine et!% from Bangladesh #hile e1ports are mainly fresh fruits minerals paper boards and spi!es%

Processed food exports rise 41pc

Agro-pro!essed food e1ports rose @3%'@ per!ent to H&5%33 million in the Auly-Aanuary period of the !urrent fis!al year &''5 ba!$ed by !ompetitive pri!es and up mar$et buyers= shift to ethni! sna!$s as re!ession s"uee9es po!$ets of the !onsumers in the #estern e!onomies% 01panded mar$et !overage of some food pro!essors also helped maintain their e1port gro#th e1porters said% <Pri!e is the main fa!tor% ,any supermar$et buyers are shifting from e1pensive food items to !heaper foods as their in!ome shrin$s amid re!ession < said ,0 *o#la managing dire!tor for 0urasia Food DBdE Ltd% <A se!tion of !onsumers #ho preferred shopping at supermar$ets is no# sho#ing interests to our produ!ts be!ause #e offer lo#er pri!es < said the ,* for 0urasia that e1ports su!h ethni! foods as fro9en parata singara dal puri and vegetables mainly to the ;/ mar$et%

*o#la termed the latest trend of upmar$et !onsumers= shift to Bangladeshi fro9en sna!$s as an opportunity to !arve a ni!he in the 0uropean mainstream mar$et% <No# #e should try to ma$e them habituated to these foods < he said% Than$s to the e1porters= !ontinuous drive to e1plore mar$et that no# e1pands from the Gulf to Afri!an regions agro-e1port bas$et is no# filled #ith many diversified produ!ts su!h as potato fla$es soft drin$s spi!es and various dry and fro9en sna!$s% Bangladesh also e1ports pro!essed foods to Aapan North Ameri!a and Australia% <Ie are strengthening our mar$eting !apa!ity% Juality and !ompetitive pri!es !ontribute to su!h rise in e1ports < said Ra-u Ahmed general se!retary of Bangladesh Agro Pro!essors= Asso!iation% But some e1porters of dry sna!$s and spi!es said they no# feel the pin!h of a slo#do#n in e1ports to the mar$ets su!h as Canada and Aapan as the finan!ial !risis erodes the !onsumers= pur!hasing !apa!ity in those ri!h !ountries% 2o#ever overall e1ports in!reased although e1porters lagged far behind their targets% )n the Auly-Aanuary period of fis!al year &''5-'4 pro!essed food e1porters fet!hed H&5%33 million up from H34%4> million in the same period a year ago a!!ording to 01port Promotion Bureau% 01ports of pro!essed foods surged GG%&' per!ent to H@'%?8 million in FB&''G-'5 from H&&%4@ million a year ago% <Ie are re!eiving good responses from a number of mar$ets #here #e entered earlier% Ie have in!reased our sales volume and e1panded distribution net#or$ along #ith offering produ!ts at !ompetitive pri!es < said /amru99aman /amal e1e!utive dire!tor of mar$eting for Pran-RFL Group one of the leading e1porters% /amal said the !ompany is yet to feel the pin!h of re!ession as it e1ports produ!ts in!luding beverages and fruit drin$s mainly to the Gulf and Afri!an !ountries% <Till date #e are #ell off < he said% /hurshid Ahmad Farhad manager De1portE for ."uare Consumer Produ!ts that e1ports mainly spi!es and dry sna!$s said e1ports gre# !ompared to the previous year% 2e ho#ever e1pressed !on!erns that a!hieving e1port target might be tough this year on re!ession% <The !oming days may not be good < he said adding that devaluation of !urren!ies in e1port mar$ets against the ta$a #ill affe!t earnings%

Fro5.0 Foo$ E34or' /ro- a06)a$.#h

Fro9en foods are the se!ond largest e1port se!tor of the e!onomy% The massive natural resour!es available in Bangladesh ma$e this se!tor parti!ularly promising for investors loo$ing to supply in international as #ell as in domesti! mar$ets% The Publi! se!tor !orporation and the private organi9ations have setup about 3@5 numbers of shore based e1port oriented fish pro!essing plants at *ha$a Chittagong /hulna Aessore .at$hira Bagerhat Co1=s Ba9ar Chandpur /ishoregon- .yihet and Patua$hali% These plants produ!es Fresh Iater shell +n DFI.+E .er Iater shell +n D.I.+E Peeled and *eveined DP:*E Peeled and ;ndevined DP;*E shrimp produ!ts under the most hygieni! and sanitary !ondition under the supervision !ontrol and guidan!e of foreign trained handling : pro!essing e1perts% At all levels ;.F*A registrations and dire!tives of the 0uropean Communities !on!erning the produ!tion and e1portation of fro9en foods are stri!tly follo#ed%

Sector Highlights
Thriving in this se!tor are shrimp farming and fish produ!tion%

The government is promoting semi-intensive shrimp farming% .hrimp pro!essing and e1port industry is largely dominated by the small business se!tor% Government has developed initiatives of "uality assuran!e for fro9en foods in !ooperation #ith e1porters% 38N !ash in!entive offered to shrimp e1port amount%

Exportable Products
The private organi9ation and the publi! se!tor !orporation offer the follo#ing produ!ts for e1portF

Fro9en shrimp : pra#n Fro9en fish Fresh : !hilled fish Fro9en fillets : stea$s of fish shar$s shells s$ates : rays .har$ fins : fish ma#s .alted : dehydrated fish *ry fish Live !rabs : tortoises

Fish meals : !rushed Oalue added shrimp : fish produ!ts

Industry Outlook
This e1port oriented industry in!ludes the follo#ing sub-se!tors #hi!h are themselves promising investment opportunitiesF

2at!heries .ustainable a"ua!ulture te!hnology Feed meals plants Pro!essing unit for value-added produ!ts%

Key Information
No7 o/ /*#h 4ro&.##*06 4)a0'# P)a0'# )*&.0#.$ 8+ 'h. GO F*#h 4ro&.##*06 4)a0'# a44ro1.$ 8+ 'h. EU 9%a0'*'+ o/ /ro5.0 /oo$ .34or'.$ *0 :;;<,=; Shr*-4 .34or'.$ *0 :;;<,=; F*#h .34or'.$ *0 :;;<,=; Pro&.##*06 &a4a&*'+ *0 'h. 'o'a) 4)a0'# E34or' .ar0*06# /ro- #hr*-4 :;;<,=; E34or' .ar0*06# /ro- /*#h :;;<,=; No7 o/ #hr*-4 ha'&h.r+ Pro$%&'*o0 o/ #hr*-4 /r+ Shr*-4 &%)'%r.$ )a0$ U0%'*)*5.$ )a0$ /or #hr*-4 &%)'%r. 3@5 55 G@ 3&4%53 m produ!ts 3'5%5@ m lbs &'%4G m lbs > '' ''' m tons >@5%&5 m ;.H 54%3& m ;.H 3>' 3& '''-38 ''' m 3G' ''' he!tare 3'' ''' he!tare

.our!eF Bangladesh Fro9en Foods 01porters Asso!iation DBFF0AE

Gro th in !"port of Processed #ish

.hrimp is the se!ond largest sour!e of e1port from Bangladesh #hi!h earned as mu!h as @>G%@' million ;. dollar in the year &''4-3'% Commer!ial !ulture of shrimp in!reased rapidly in the !oastal belt of Bangladesh and it #ent through several stages of transformation% *uring the last ten years Bangladesh has earned international !redibility by responding to the food-safety and "uality re"uirements of its destinations mostly the ;nited .tates and the 0uropean ;nion !ountries% Continuous investment has enabled the se!tor to progress in the teeth of !ompetition from other !ountries%

Bear &''?-'G &''G-'5 &''5-'4 &''4-3'

Produ!t item .hrimp and fish .hrimp and fish .hrimp and fish .hrimp and fish

Juantity Dm lbsE 33&%38 333%>8 33G%>3 3&4%53

;.H DmE 838%&& 8>@%'G @8@%8> @>G%@'

.our!eF Bangladesh Fro9en Foods 01porters Asso!iation DBFF0AE There are 3'8 ''' galda farms mostly lo!ated in the /hulna area although this method of !ultivation is spred ading rapidly in other parts of Bangladesh% ;nli$e bra!$ish #ater !ultivation of bagda Dbla!$ tiger shrimp Penaeus monodonE fresh#ater galda !ultivation is not restri!ted to the !oastal regions and is e1panding at a rate of 3'C&' per !ent per annum%

Industry Situation
Follo#ing a period of strong investment in te!hnology pro!esses and regulation the fro9en foods se!tor has flourished and earned itself an e1!ellent reputation #ith trading partners% 01porters have earned !redibility and trust#orthiness in the global mar$et and are !ommitted to maintaining a !ompetitive advantage in produ!t "uality% Continuing investment in te!hnology mar$eting and "uality remain at the forefront of the industries= strategy to meet the !hallenges of international trade in pri!e "uality time and servi!e% .our!eF Bangladesh 01port Promotion Bureau

a06)a$.#h: E34or' o/ 4ro&.##.$ /oo$

Bangladeshi manufa!turers a!!ording to a re!ent ne#spaper reportL have been ma$ing strides in strengthening and e1panding their position in the multibillion dollar global mar$et of pro!essed food items #ith their e1port pro!eeds posting a 334 per !ent rise in the first fis!al year% The annual earning from e1port of more than H?' million in the !urrent fis!al year may !ross H3'' million mar$ in the ne1t fis!al year as Agri!ultural ,ar$eting Company Limited- that leads in e1porting pro!essed food-alone is targeting to earn H>' million by &''4 against its earning H3' million in &''?% Agro-pro!essed foods in!luding bis!uits !andies -am--ellies and fruit -ui!e had gro#n by 334 per !ent in the &''?-'G fis!al year to H&> million% Ihatever is the figure no# in earnings by e1porting pro!essed food itemsL the a!hievement in getting positive response is remar$able #ith the e1pe!tation of e1panding the e1port base in the days to !ome as

one e1porter #as "uoted to have said% At present the A,CL that mar$ets its produ!ts under =Pran= brand a!!ounts for more than 8' per !ent of the !ountry=s total e1port pro!eeds from agro-pro!essed foods% .ome other !ompanies also have be!ome serious in e1ploring e1port mar$ets and Bangladesh=s 01port Promotion Bureau senses that many of them #ill eventually be!ome bul$ e1porters #ithin a year or t#o% +nly 38 of the !ountry=s &'' modern agro-pro!essing units have seriously e1plored the e1port mar$ets% Long-term vision and effe!tive mar$eting efforts are essential for ne# !ompanies to gain spa!e in e1port destinations% )t is en!ouraging to mention that e1porters here have found a highly potential mar$et in Afri!a #ith the taste !hoi!e and !onsumption of the people there !omplementary to the business% )ndia too #ould be a very potential mar$et if tariff and para-tariff barriers are not there% La!$ of advan!ed and attra!tive pa!$aging fa!ility and high freight !osts are the fa!tors that affe!t the !ompetitiveness of Bangladeshi e1porters and for!e them to lag behind their !ounterparts of )ndia Pa$istan China ,alaysia and Thailand% To !ite an e1ample spe!ifi!ally it #as pointed out that #hile an )ndian e1porter needs H8'' to ship a !ontainer of food items for a Bangladeshi e1porter the !ost is H38''% *espite gro#ing demands in the e1port mar$et in re!ent years the 01port Promotion Bureau=s list of agro-pro!essed foods does not in!lude fro9en beef mutton !hi!$en and mustard oil and e1!ludes agri!ultural produ!es li$e fresh fruits vegetables spi!es betel nut refined and edible oil though the !ountry earned H55 million by e1porting these items in the !urrent finan!ial year% Fro9en shrimps and fish that a!!ount for the se!ond largest !hun$ of the e1port earning pie after apparels earned H83& million in the last fis!al year% 01porters here from our !ountry are a!tive and innovative and !an go ahead #ith their ventures provided pea!e stability and tran"uillity prevail in the !ountry% .our!eF ittefa"%!om

IFC Helps PRAN Increase Processed Foods Availability in Banglades ! Create "obs
# a$a! Banglades ! April 1%! &'1&IFC, a member of the World Bank roup, is pro!idin" a #$% million loan to &atore '"ro, a subsidiary of food processin" "roup P('&, to expand production capacity, create $,)** rural +obs and inte"rate small farmers into retail supply chains, P('&-s latest expansion is in response to an increase in demand for packa"ed food products from both domestic and export markets, IFC-s continued support to the "roup helps increase the a!ailability of affordable, .uality food products, /hile ensurin" that farmers are able to sell their products at a fair price, 0he pro+ect /ill source fruits, !e"etables and other inputs directly from o!er $,1** small farmers, positi!ely impactin" their li!elihoods,

eneral 'm+ad Cho/dhury, Founder and Chief Executi!e 2fficer of P('& roup, said, 3IFC has once a"ain responded proacti!ely to our re.uest for lon"4term financin", 0he current pro+ect /ill add momentum to our exports, /hile ensurin" stable income for local farmers, increasin" rural employment, and promotin" small businesses in our distribution channel,5 0his loan /ill be IFC-s third to P('& roup, Pre!ious IFC in!estments included a #$% million loan in 6**7 to help increase production capacity in snacks, be!era"es, rice, dairy products and +uice, ' second loan of #1 million in 6*$$ helped the company expand its local dairy procurement and processin" capability, /hich helped increase the incomes of about $1,*** Ban"ladeshi dairy farmers, 3In addition to pro!idin" a lon"4term loan, IFC-s ad!isory support to P('& /ill allo/ it to compete better "lobally as it looks to expand its presence in forei"n markets,5 said 8ipul Prakash, IFC 9irector of :anufacturin", '"ribusiness and ;er!ices in 'sia, 30his is the first financin" supported by the Pri!ate ;ector Windo/ of the lobal '"ricultural Food ;ecurity Pro"ram,5

Pra0 'o 8%*)$ /*r#' /or.*60 4)a0' *0 I0$*a

Pran one of Bangladesh=s leading pro!essed-food and beverage !ompanies is to build its first foreign fa!tory in )ndia ta$ing advantage of the !ountry=s re!ent de!ision to lift its ban on Bangladeshi investment% The plant #ill be built in the north-eastern )ndian state of Tripura% )t #ill initially produ!e -elly and drin$s and is e1pe!ted to !ome into operation by &''4 #ith an annual turnover of around T$3'' !rore% )t #ill supply the mar$ets of northeast )ndia -- Assam Nagaland Tripura ,eghalaya ,anipur ,i9oram and Aruna!hal Pradesh -- $no#n as =.even .isters= said a senior offi!ial of Pran 01ports Ltd% Last year )ndia lifted its ban on dire!t investment from Bangladesh and said it #ould #el!ome investment from its neighbour% The move #as seen as a pre!ondition for *ha$a to !onsider the large-s!ale investment plans of )ndian !ompanies su!h as Tata in Bangladesh% The plant #ill initially produ!e -elly and drin$s #hi!h have already #on popularity in those areas said Paramuddin 2ossain senior manager D01portE of Pran-RFL Group% The !ompany !hose Tripura due to its !loseness to Bangladesh% 6Ie #ill be able to transport ra# materials for our produ!ts from Bangladesh to Tripura very easily due to the easy !ommuni!ations 7 said Paramuddin% 2e said there is similarity in lifestyle !ulture and e!onomy bet#een the people of Bangladesh and these areas of )ndia adding that this is one of the main reasons to !hoose Tripura%

Negotiations have been going on bet#een the parties !on!erned about a!"uiring land for the pro-e!t% )ndia #ill allo!ate a 3'-a!re industrial plot for the purpose% The )ndian government has also assured Pran of ban$ing ele!tri!ity and other infrastru!ture fa!ilities% )nitially Pran #ill employ nearly &'' people in!luding Bangladeshi and )ndian nationals% Pran e1ports its agro-pro!essed foods and drin$s to nearly G' !ountries in!luding ;.A ;/ .#eden Cyprus Australia ,alaysia )taly Germany .outh /orea and some ,iddle 0ast 0ast and Iest Afri!an !ountries% The ne#s of the ne# plant #as announ!ed at an =01port .ales Conferen!e &''5= of Pran 01ports Ltd held yesterday in *ha$a% *eputy ,anaging *ire!tor of Pran-RFL Group Ahsan /han Choudhury and other senior offi!ials #ere present at the !onferen!e% ,L *ebnath president of Tripura Chamber of Commer!e and )ndustries also spo$e at the !onferen!e attended by hundreds of importers and dealers from different states of )ndia and Nepal% Ahsan e1pressed his !on!erns over different types of tariff and non-tariff barriers that the )ndian government is imposing on the e1port of Bangladeshi food produ!ts to )ndian mar$ets% 2e urged the government to help the business !ommunity solve those problems through bilateral dis!ussions%

B (tan i)poses ig d(ty on Banglades i agro*based ite)s

Aasim ;ddin

Fruit -ui!e of different brands are seen at a shop in a !ity mar$et% The photo #as snapped on Tuesday% Bhutan has imposed abnormally high duty on imports of agro-pro!essed produ!ts from Bangladesh% P Ne# Age photo

Bhutan has imposed abnormally high duty on imports of agro-pro!essed produ!ts from Bangladesh Kviolating( the bilateral trade agreement bet#een the t#o !ountries e1porters and !ommer!e ministry offi!ials said% Bangladeshi agro-pro!essed produ!ts have been fa!ing severe obstru!tion to enter into Bhutanese mar$et due to high duty !ausing signifi!ant loss for Bangladeshi e1porters they said% The produ!ts are supposed to get duty-free a!!ess to the Bhutanese mar$et under a Bilateral Trade Agreement bet#een the t#o !ountries !ommer!e ministry offi!ials said%

The produ!ts fa!ing high duty barrier in e1port to Bhutan are mainly different $inds of -ui!es energy drin$s !hips dry food su!h as bis!uits and other agro-pro!essed food items e1porters said% KThe Bhutan government has imposed up to 5' per !ent duty in!luding >' per !ent valueadded ta1 on the Bangladeshi agro-pro!essed produ!ts ( said /amru99aman /amal dire!tor of mar$eting of PRAN-RFL Group% Bangladeshi !ompanies are not able to !ompete #ith other !ountries in e1porting those produ!ts in the fa!e of su!h high duty he said% 2e said that the PRAN-RFL Group #hi!h mainly e1ports different $inds of fruits -ui!e to Bhutan has been losing around T$ 3%8 !rore every month% Commer!e ministry offi!ials said that the ministry has already e1pressed its ob-e!tion to the de!ision of the Bhutanese government and re"uested them to #ithdra# the imposed duty% A!!ording to the s!hedule B of the bilateral trade agreement a total of 4' Bangladeshi produ!ts are supposed to get duty-free a!!ess to the Bhutanese mar$et% The Bhutan government is getting the !han!e to impose high duty on those produ!ts as the !ountry !ould not issue any ga9ette notifi!ation on s!hedule B under the agreement% After getting the !omplaints from the e1porters the ministry sent a letter to Bhutan government through Bangladesh embassy to issue a ga9ette notifi!ation stating about the duty-free a!!ess of 4' Bangladeshi produ!ts to their mar$et said a !ommer!e ministry offi!ial% Bangladesh embassy informed that the Bhutanese government has agreed to issue the notifi!ation he said% 0arlier in April &'3& Bhutan had imposed a ban on import of a number of items in!luding agri!ultural produ!ts from Bangladesh and some other !ountries e1!ept )ndia% Later the government of Bhutan #ithdre# the ban but has gradually in!reased duty #hi!h !urrently stood at 5' per !ent% 01porters said that the de!ision of imposing high duty might have been ta$en due to the pressure of e1porters from some benefi!iary !ountries mainly )ndia to stop e1ports of Bangladeshi produ!ts to Bhutan% Bangladesh Agro-Pro!essors Asso!iation general se!retary Ra-u Ahmed told Ne# Age that around 3' !ompanies e1port agri!ultural produ!ts #orth H3'-3& la$h every year% 2o#ever !urrently a total of 35 Bhutanese produ!ts in!luding all $inds of fruits stone drin$s and some other agri!ultural produ!ts are getting duty-free a!!ess into Bangladesh% The !ompanies are PRAN-RFL ."uare Consumer produ!ts Ltd A$i- Group Abul /hair Group AC,0 AC) Bombey .#eets R,P ,anufa!turers Ltd and Prome Agro-Foods Ltd Ra-u said% A!!ording to 01port Promotion Bureau Bangladesh(s e1port earnings from Bhutan #as H 43 >3 >?& la$h in &'33-&'3& fis!al year% The ma-or e1port items from Bangladesh to Bhutan in!lude ready-made garments pharma!euti!als melamine toilet soap dry food fruit -ui!e energy drin$s and mineral #ater%

A6ro,4ro&.##.$ /oo$ .34or'# k..4 %4 6ro2'h

*ha$aF 01port earnings from agro-pro!essed foods gre# GG per!ent to H@'%?8 million in fis!al &''G-'5 rising from H&&%4@ million a year ago buoyed mainly by a surge in the e1ports of dry foods ri!e fruit -ui!e and bis!uits% The e1porters= !ontinuous innovation of finding ne# e1portable produ!ts and their strong mar$eting efforts have enabled pro!essed foods to #in the hearts of Bangladeshis in the ,iddle 0ast 0urope and other parts of the #orld% <)t=s the result of all of our efforts% Ie really feel proud that #e are adding as high as G' per!ent value to various food items < said Am-ad /han Cho#dhury !hief e1e!utive of PRAN-RFL Group the !ountry=s leading e1porter of agro-pro!essed produ!ts% )ndustry people said Bangladesh=s agro-pro!essed food items are being e1ported in a bid to rea!h millions of e1patriates #or$ing in various !ountries mainly in the ,iddle 0ast% A!!ording to agro-pro!essors lo!ally pro!essed foods are also being sold in Australia and the ;. although .audi Arabia and other Gulf states #ith hundreds of Bangladeshi #or$ers are the largest mar$ets% Bangladeshi pro!essed foods are being e1ported to about G' !ountries in!luding some Afri!a nations although the earnings from that segment remains negligible !ompared to the !ountry=s total e1port in!ome of H3@ 33' million for &''G-'5% <Ie have a lot of room for progress < said Cho#dhury% <)n the past Bangladeshi e1patriates #ere our main !onsumers% But no# )ndian and Pa$istani people also li$e our produ!ts%< .tatisti!s by 01port Promotion Bureau sho# that Bangladesh=s dry foods su!h as puffed ri!e flattened ri!e and !hana!hur dominated half of the e1port bas$et for agro-pro!essed foods follo#ed by aromati! ri!e fruit -ui!e and spi!es% Last year e1port earnings from dry foods in!reased by more than double #hile earnings from bis!uits #ent up three-folds% Fruit -ui!e and ri!e e1ports also rose% )ndustry people said that a &' per!ent !ash in!entive offered by the government helped attain !onsistent gro#th% <Continuous innovative ideas of ethni! food produ!ts results in rapid gro#th% And it #ill !ontinue as long as Bangladeshi people !ontinue to go abroad < said ,0 *o#la managing dire!tor of another leading e1porter 0urasia Food Pro!essing DB*E% The ,* of 0urasia #hi!h e1ports mainly fro9en vegetables and sna!$s mainly to the ;/ ho#ever said many people are pro!essing foods in an unhygieni! manner #hi!h !ould hurt e1ports in future%

A senior offi!ial of ."uare Consumer Produ!ts that registered over ?' per!ent gro#th in the Aanuary-Aune period of &''5 said a !hange in the attitude of e1patriate Bangladeshis had helped e1ports gro#% ,o9ammel 2u" adviser of Bangladesh Agro-Pro!essors Asso!iation said improvement in areas su!h as pa!$aging and supply !hain is needed to ma$e lo!al produ!ts more !ompetitive% <Above all an internationally re!ognised testing laboratory is essential to boost e1ports < 2u" said%

Ca#h *0&.0'*1.# /or #o-. .34or' *'.-# 'o 6o

A number of items have been e1!luded from the list of those eligible to re!eiving !ash in!entives on e1port operations in the !urrent fis!al year DFB &'3&-3>E due to their having duty-free a!!ess and also for !utting do#n !urrent publi! e1penditures Bangladesh Ban$ DBBE offi!ials said% Four items -- bi!y!le poultry finished leather and !rust leather -- have been deleted from the list of !ash in!entive fa!ility for e1port operations this fis!al they added% )n the previous fis!al D&'33-3&E 34 e1port se!tors re!eived su!h a fa!ility% Among those finished leather produ!ts re!eived @%' per !ent !ash in!entive on e1port !rust leather >%' per !ent bi!y!le 38 per !ent and poultry items 38 per !ent% The !entral ban$=s Foreign 01!hange Poli!y *epartment issued a !ir!ular in line #ith the ,inistry of Finan!e=s de!ision on !ash subsidyMin!entives a!!ording to #hi!h a total of 34' e1port produ!ts from 38 se!tors #ould re!eive !ash subsidy this fis!al% A!!ording to the !ir!ular e1porters #ould re!eive !ash subsidy for the produ!ts against net repatriation of the F+B Dfreight on boardE pri!es from Auly 3 &'3& to Aune >' &'3>% The small and medium-s!ale te1tiles units #ill be provided 8%' per !ent additional fa!ility% Besides &%' per !ent in!entives #ill be given for ne# produ!ts and ne# mar$et e1pansion De1!ept to the ;.MCanadaMthe 0;E% Among others agri!ultural produ!ts and agro-pro!essed food items #ill get &' per !ent e1port subsidy% Cash in!entive for potato e1port has been set at &' per !ent%

The government #ill provide 3' per !ent e1port subsidy for light engineering se!tor &' per !ent for li"uid glu!ose e1ported from )sh#ardi 01port Pro!essing Qone and &' per !ent e1port subsidy for !ent per !ent =2alal= meat e1port% Besides !ash in!entive for e1port of leather produ!ts has been in!reased to 38 per !ent this fis!al from 3&%8' per !ent in the previous fis!al% ,ean#hile fears have no# arisen about #hether the items that have been dropped from the list of !ash in!entives #ould be able to a!hieve their respe!tive e1port targets% The government should !onsider revising its !ash in!entive programme for e1port of the four items for the sa$e of their positive e1port gro#th the !on!erned !ir!les suggested% <The euro9one is passing through a finan!ial !risis% The region is the main e1port mar$et for finished and !rust leather goods% )f the government e1!ludes finished and !rust leather items from the !ash in!entive list at this stage it #ill negatively impa!t the se!tor < ,d% Abdur Rashid Bhuiyan !hairman of the *ha$a 2ide and .$ins Ltd told the F0 Friday% Lo!al e1porters blamed non-availability of !ash in!entives loosing !ompetitiveness e1isting po#er and gas supply problems and the euro9one meltdo#n for their poor performan!e%