Edison Group looks to foreign investment in manufacturing

Edison Group, established in 2009 as a trading company, now has emerged as one of the fastest growing conglomerates in the country by stepping into businesses like electronics manufacturing, logistics, power, and footwear.

The group currently has 13 ventures employing over 5,000 people while a plan has been taken for significant expansion, said Jakaria Shahid, founder and managing director of Edison Group, in an exclusive interview with the FE recently.

"We have been very successful in making the ventures profitable, thanks to our continuous concentration on quality compliance," he said, adding that currently Edison Group is trying to get foreign investment to scale up its manufacturing units.

Mr Shahid said, "Our initial days were not that easy because we had to start business with self finance. Also, we tried to be less dependent on bank loans due to many reasons."

In 2017, the group formed Edison Footwear Limited to enter the export-oriented footwear industry by making an investment of Tk 3.0 billion to set up a factory in Hotapara of Gazipur.

He said, "From the very beginning, considering the fierce competition in the global footwear market, we prioritised compliance and installed quality machines at 40 per cent higher cost than similar industries."

The result was instantaneous as the company started exporting different types of footwear within less than a year of starting production.

He mentioned that the footwear factory already reached breakeven by the end of 2021 which proves the potential of the company.

The footwear products are exported to several European countries including Germany, Italy, Poland, France, the Netherlands, etc.

Referring that the factory operates 11 production lines at present having a capacity of preparing around 30,000 pairs of shoes per day, Mr Shahid said, "We are now looking for international investors to double the production volume."

Recently, the footwear company was awarded the 'Green Factory Award-2021' given by the Ministry of Labour and Employment in the leather goods production category.

The factory produces different types of footwear for both men and women with synthetic and artificial leather while shoes are also made using a mix of pure leather.

Mr Shahid, also the vice-president of Bangladesh Sports Shoes Manufacturers and Exporters Association, said the export of synthetic leather enjoys 4.0 per cent cash incentive while the leather products get 15 per cent.

"If the government provides 15 per cent cash incentive to synthetic and artificial leather products like the leather goods, exports can be increased exponentially," he said.

Edison Group's flagship concern is smartphone brand 'Symphony' which is considered the first local smartphone brand in Bangladesh.

The Symphony smartphones were initially imported from China but since the middle of 2021, the company has been manufacturing 100 per cent of the smartphones in its own factory in the country.

Meanwhile, following the government's announcement of huge tax benefits for mobile assembling in fiscal 2017-18, Edison Group established its manufacturing plant in 2018.

Reminiscing early years of the company, Edison Group managing director said in 2009 they started importing finished mobile phones from China and started selling them under the brand name Symphony.

"We stopped importing smartphones or its components in finished form last June and our target is to go for exports after meeting local demands," he said.

Besides, Symphony has also started developing software, mobile applications, and games while accessories like mobile chargers and batteries have already been in production.

Due to excellent after-sales services and high-quality accessories, Symphony became the number one smartphone brand in the country for three consecutive years from 2015 to 2017, Mr Shahid mentioned.

"Our brand has so far reached about 100 million people in the country," he added.

Currently, the company can manufacture about 0.6 million pieces of 'Made in Bangladesh' smartphones per month which can be increased to million pieces.

Meanwhile, Symphony has also exported 'Made in Bangladesh' smartphones for the first time to Nepal in November 2021, he noted.

Besides, the company has also been exploring the market potential in several African countries, Vietnam and Sri Lanka.

Due to immense competition with locally manufactured smartphones of different international and local brands, Symphony currently is concentrating on smartphone models priced in between Tk 6,000 and Tk 11,000.

At present some 10 to 12 companies manufacture and assemble smartphones in the country.

Edison Group also provides power solutions to the private sector under the concern of Edison Power Bangladesh Limited.

For efficient electrical and mechanical power usage, safely and sustainably, the company offers solutions like substation, diesel generator, Busbar Trunking System, etc.

Meanwhile, Edison Logistics Limited provides services like distribution, air freight, ocean freight, customs clearance, and warehouse facilities for exporters and importers of the country.

Other sister concerns of the conglomerate include Edison Properties, Edison Real Estate, Edison Express, Pink Creative, Mo-Magic, and Light Electronics.

ahb_mcj2009@yahoo.com