TK Group shifts focus from trading to chemicals
Monday, 22 September 2008
Jasim Uddin Haroon
Chittagong-based top commodity trader, TK Group, said it is diversifying its business into chemicals to cement its position in one of the fastest growing industrial sectors in the country, its director said Sunday.
TK, which stands for the names of two brothers, Tayab and Kalam, is currently second biggest player in the food and commodity market with an annual turnover of around Tk 35 billion.
But the Chittagong-based group is slowly fixing its targets to chemicals, paper and engineering, areas where only a few Bangladeshi companies have dared to tread, director of the group Mustafa Haider said.
"We are diversifying our business portfolio and laying emphasis on a number of chemical products, which has a very big market both at home and in the neighbouring countries," Haider said.
"We will not leave the trading business altogether, but we will be careful in future. We will observe demand in the local market and international prices before making any big import," he said.
The group last year established a separate company --- Samuda Chemical Industries Limited --- to set up plants for chemical and engineering products.
The group has built the country's one of the largest chemical complex with around Tk 3.0 billion investment at Meghnaghat to produce chemicals required for textiles, water treatment plants, pharmaceuticals, soap and detergent factories.
Earlier, it commissioned another chemical plant at an investment of Tk 500 million for producing hydrogen peroxide at Kalurghat area in Chittagong with annual capacity of 13000 tonnes.
TK is also the country's second largest private paper maker, producing 110 tonnes of paper per day.
Insiders said fluctuating fortune in commodity business has prompted the group, which has been operating since 1972, to steer to new areas with little risk.
They said since last year the company has drastically reduced its edible oil and wheat imports in the wake of falling prices in the international markets.
Private bankers said several commodity players including the largest, City Group, have incurred losses worth over Tk 4.00 billion in edible oil import alone following global price correction.
Haider said compared to commodity, chemicals are relatively safe business.
"Chemicals are some of the fastest growing sectors in the country. Presently most of our revenues come from trading and manufacturing. But we hope by 2009, at least 15 per cent of our revenues would come from chemicals," he said.
Bangladesh is a net importer of chemical products with thousands of local garments and textile factories relying on imported chemicals used extensively in dyeing, printing, water treatment and finishing.
The company this year even exported hydrogen peroxide to India, he added.
Haider said its Meghanghat plant would roll out new chemicals such as caustic soda, liquid chlorine, hypo chlorite, hydrochloric acid, bleaching powder, chlorinated paraffin wax by November.
"We will introduce more products next year by investing in new plants and expanding the existing ones," he said.
Chittagong-based top commodity trader, TK Group, said it is diversifying its business into chemicals to cement its position in one of the fastest growing industrial sectors in the country, its director said Sunday.
TK, which stands for the names of two brothers, Tayab and Kalam, is currently second biggest player in the food and commodity market with an annual turnover of around Tk 35 billion.
But the Chittagong-based group is slowly fixing its targets to chemicals, paper and engineering, areas where only a few Bangladeshi companies have dared to tread, director of the group Mustafa Haider said.
"We are diversifying our business portfolio and laying emphasis on a number of chemical products, which has a very big market both at home and in the neighbouring countries," Haider said.
"We will not leave the trading business altogether, but we will be careful in future. We will observe demand in the local market and international prices before making any big import," he said.
The group last year established a separate company --- Samuda Chemical Industries Limited --- to set up plants for chemical and engineering products.
The group has built the country's one of the largest chemical complex with around Tk 3.0 billion investment at Meghnaghat to produce chemicals required for textiles, water treatment plants, pharmaceuticals, soap and detergent factories.
Earlier, it commissioned another chemical plant at an investment of Tk 500 million for producing hydrogen peroxide at Kalurghat area in Chittagong with annual capacity of 13000 tonnes.
TK is also the country's second largest private paper maker, producing 110 tonnes of paper per day.
Insiders said fluctuating fortune in commodity business has prompted the group, which has been operating since 1972, to steer to new areas with little risk.
They said since last year the company has drastically reduced its edible oil and wheat imports in the wake of falling prices in the international markets.
Private bankers said several commodity players including the largest, City Group, have incurred losses worth over Tk 4.00 billion in edible oil import alone following global price correction.
Haider said compared to commodity, chemicals are relatively safe business.
"Chemicals are some of the fastest growing sectors in the country. Presently most of our revenues come from trading and manufacturing. But we hope by 2009, at least 15 per cent of our revenues would come from chemicals," he said.
Bangladesh is a net importer of chemical products with thousands of local garments and textile factories relying on imported chemicals used extensively in dyeing, printing, water treatment and finishing.
The company this year even exported hydrogen peroxide to India, he added.
Haider said its Meghanghat plant would roll out new chemicals such as caustic soda, liquid chlorine, hypo chlorite, hydrochloric acid, bleaching powder, chlorinated paraffin wax by November.
"We will introduce more products next year by investing in new plants and expanding the existing ones," he said.