AHZ unveils Tk 30b investment in dairy, processed, pre-cooked food
Syful Islam | Monday, 4 April 2011
Syful Islam
Processed food firm, AHZ Agro Industries, unveiled a plan to invest 30 billion taka in dairy, food supplements and pre-cooked food to cash in on soaring demand of their products at home and abroad. The company, which markets 35 food products under Tatka brand, plans to invest Tk10 billion in dairy sector and the rest in food supplements, processed and pre-cooked food in the next five years, its officials told the FE. "We have already bought land and are talking to Rupali, Jamuna and Janata banks for syndicated loans for our investment. Our aim is to increase monthly sale to two billion taka by 2015," company CEO Anisur Rahman Mahmud said. Mahmud said the company took up the expansion drive after the successful launching of its products less than two years ago. Its monthly sale now hovers around 100 million taka, making it one of the top five players in the processed food sector. The company now sells consumers goods such as Chanachur, dal, several lines of candies, turmeric chutney, potato crackers, mango bar, lachha semai, wafer roll, cookie bite, pink guava drinks, mango juice and nutty bite. "We are surprised by our own success. We did not spend a single taka on advertising our products. Yet, the response from the consumers has been overwhelming," AHZ Agro chairman Shakawat Hossian told the FE. "With an investment of seven billion taka, we have already set up A to Z linkage of our products. We buy food items and raw materials directly from farmers, which contribute to rural economy," he said. Hossain said the company has now focused on dairy sector, rolling out a plan to establish the country's first two-stage milk pasteurization plant in Sirajganj --- the country's milk heartland. "We see big prospect of dairy products in the country. At Sirajganj we are already setting up a chilling cum pasteurization plant, which will produce cheese, white and flavoured milk, powdered milk and yogurt," said Mahmud. "Gradually, we shall invest 10 billion taka in the dairy sector alone," he said, adding the company would buy milk directly from farmers and market throughout the country. The company will also be the first in the country to set up automated "bakhar-khani" plant, a bakery item mainly produced by roadside shops in Old Dhaka. "We want to go big in pre-cooked food items because of their immense export potentials. Our plan is to export the items to millions of Bangladeshi migrants in the Middle East, Europe and the United States," he said. AHZ is also readying investment in beverage, fermented food and food supplement business. "The country is increasingly becoming urbanised. Many families don't have time to cook food. So, it's natural that the pre-cooked and food supplement business will enjoy steady growth over the next few decades," said the CEO. At present some 1,600 people are employed at 'Tatka' factory in Gazipur and in its distribution system across the country. The planned investment would create an additional 8,500 jobs. Mr. Hossian said processed food industry could outstrip apparel industry in terms of values in a decade or two, since its raw materials are produced at home with nearly 100 per cent value addition. "The good news is some big firms have come forward to invest in the sector. Now farmers get preservation facilities at their doorsteps as well as purchase guarantee of their products," he added. He said Bangladeshi processed food has earned praise in seven Indian states in the northeast. "Together these states can emerge as the top export market of our agro products." Originally based in Rajshahi, AHZ ventured into agro-business in 1944. It owns a seed research institute in the northwestern city. The company also has a cold storage at Bogra for preserving their agro products.
Processed food firm, AHZ Agro Industries, unveiled a plan to invest 30 billion taka in dairy, food supplements and pre-cooked food to cash in on soaring demand of their products at home and abroad. The company, which markets 35 food products under Tatka brand, plans to invest Tk10 billion in dairy sector and the rest in food supplements, processed and pre-cooked food in the next five years, its officials told the FE. "We have already bought land and are talking to Rupali, Jamuna and Janata banks for syndicated loans for our investment. Our aim is to increase monthly sale to two billion taka by 2015," company CEO Anisur Rahman Mahmud said. Mahmud said the company took up the expansion drive after the successful launching of its products less than two years ago. Its monthly sale now hovers around 100 million taka, making it one of the top five players in the processed food sector. The company now sells consumers goods such as Chanachur, dal, several lines of candies, turmeric chutney, potato crackers, mango bar, lachha semai, wafer roll, cookie bite, pink guava drinks, mango juice and nutty bite. "We are surprised by our own success. We did not spend a single taka on advertising our products. Yet, the response from the consumers has been overwhelming," AHZ Agro chairman Shakawat Hossian told the FE. "With an investment of seven billion taka, we have already set up A to Z linkage of our products. We buy food items and raw materials directly from farmers, which contribute to rural economy," he said. Hossain said the company has now focused on dairy sector, rolling out a plan to establish the country's first two-stage milk pasteurization plant in Sirajganj --- the country's milk heartland. "We see big prospect of dairy products in the country. At Sirajganj we are already setting up a chilling cum pasteurization plant, which will produce cheese, white and flavoured milk, powdered milk and yogurt," said Mahmud. "Gradually, we shall invest 10 billion taka in the dairy sector alone," he said, adding the company would buy milk directly from farmers and market throughout the country. The company will also be the first in the country to set up automated "bakhar-khani" plant, a bakery item mainly produced by roadside shops in Old Dhaka. "We want to go big in pre-cooked food items because of their immense export potentials. Our plan is to export the items to millions of Bangladeshi migrants in the Middle East, Europe and the United States," he said. AHZ is also readying investment in beverage, fermented food and food supplement business. "The country is increasingly becoming urbanised. Many families don't have time to cook food. So, it's natural that the pre-cooked and food supplement business will enjoy steady growth over the next few decades," said the CEO. At present some 1,600 people are employed at 'Tatka' factory in Gazipur and in its distribution system across the country. The planned investment would create an additional 8,500 jobs. Mr. Hossian said processed food industry could outstrip apparel industry in terms of values in a decade or two, since its raw materials are produced at home with nearly 100 per cent value addition. "The good news is some big firms have come forward to invest in the sector. Now farmers get preservation facilities at their doorsteps as well as purchase guarantee of their products," he added. He said Bangladeshi processed food has earned praise in seven Indian states in the northeast. "Together these states can emerge as the top export market of our agro products." Originally based in Rajshahi, AHZ ventured into agro-business in 1944. It owns a seed research institute in the northwestern city. The company also has a cold storage at Bogra for preserving their agro products.