Little known group aims to leapfrog top food players

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Jasim Uddin Haroon
Little known Nurjahan Group has built the country's largest edible oil refinery and invested Tk 2.00 billion in canned oil and processed spices to cement its position in fast growing branded food sector, officials said Sunday.
The Chittagong-based Tk 12 billion group imported 120,000 tonnes of edible oil last year, making it the second largest refiner in the country after City Group. But the company only sells its oil in bulk quantity in the wholesale market.
Company director Tipu Sultan said their focus is now to emulate City's success in brand building, amid a double digit growth of branded food products in the country.
"We have invested Tk 2.00 billion to build a 1000-tonnes-a-day capacity edible oil refinery. And we're investing another Tk 2.00 billion in canned oil, spices and bottled water - all to be sold under Nurjahan brand name," he said.
Nurjahan's refinery at Fouzdarhat will be the biggest in the country once it goes into production after Eid-ul-Fitr, Sultan said, adding only City Group has a refinery with similar capacity.
"We want to be a big player in branded food items. City is the biggest both in bulk and branded oil market. But we think we can catch them very soon," he said.
Dhaka-based City Group is the country's largest edible oil refiner with a market share of more than 30 per cent. Its Teer brand makes up more than 50 per cent of the branded edible oil, flour and mustard oil.
Bankers said Nurjahan - set up only in 2001-has emerged as the country's one of the fastest growing groups, with last year's turnover crossing Tk12,00 billion.
Originally it was a trading company, importing edible oil, rice, wheat, sugar and spices. But in the last two years, it has outshone top edible refiners such as Chittagong-based TK, Elias Brothers and Mostofa Group and Sonargaon-based Meghna Group.
Company general manager Mizanur Rahman said the group would start marketing its branded food items from November.
"Branded food items are the future. Already City and TK have built up their respective brands through aggressive marketing. We will also be aggressive," Rahman said.
Last year, the country refined 1.2 million tonnes of edible oil, most of which was sold in bulk form in barrels. But in major cities consumer prefer canned oil, making it the fastest growing food item in the country.
Sultan said the company would also diversify into cement, steel and chemicals.
Last year it bid the highest Tk1.11 billion for the state-owned Chittagong Chemical Complex at Sitakundu. But the Privatisation Commission cancelled the bidding process without clarifying.