Tri-national JV investing $120m to run countrywide retail outlets

A tri-national joint venture is investing US$120 million to build and run countrywide retail outlets in Bangladesh with the local firm's two foreign partners bringing in most modern marketing know-how.

Indonesia's retail-giant Alfamart has announced its entry into Bangladesh with the joint venture with Kazi Farms Group and Japan's Mitsubishi Corporation.

A new company is born, styled Alfamart Trading Bangladesh Limited. The JV company officially began its journey Tuesday with a launching ceremony at the InterContinental Dhaka in presence of two advisers of the interim government.

Commerce Adviser Sheikh Bashiruddin and Social Welfare Adviser Sharmin S. Murshid attended the function.

Kazi Zahin Hasan, Director of Kazi Farms Group, delivered the inaugural speech, while Djoko Susanto, Chairman of Alfamart Group Indonesia, and Hiroshi Uegaki, Country Representative of Mitsubishi Corporation Bangladesh, and Saiful Islam, CEO of Alfamart Bangladesh, among others, spoke at the event.

Organisers said at the event that the project will begin with an initial foreign investment of $50 million in the first phase, followed by an additional $70 million in the second phase.

The first-phase investment aims to introduce "cutting-edge retail technology in Bangladesh and establish a new distribution channel to ensure faster delivery of locally produced consumer goods", they explained.

They also said Alfamart currently runs around 30,000 stores across Indonesia and the Philippines, while Mitsubishi Corporation is a leading 'Sogo Shosha'-a diversified trading conglomerate in Japan.

Mitsubishi operates roughly 17,000 Lawson stores in Japan and Indonesia and holds stakes in several international retail chains, including Uniqlo.

The newborn Alfamart Trading Bangladesh plans to use its initial investment to build modern warehouses and distribution centres across the country. The company also aims to open thousands of stores in a short span of time, creating new employment opportunities and fostering entrepreneurship in the retail sector.

Sharmin S. Murshed welcomes foreign investment in Bangladesh and emphasizes the importance of creating employment opportunities for women within the company.

Kazi Zahin Hasan said at the event, "Through Alfamart, we will ensure that products are supplied according to consumer demand."

At the event, Ahsan Khan Chowdhury, Chairman of PRAN-RFL Group, said Kazi Farms' eggs sold in one million stores across Bangladesh, providing affordable eggs to the people, and expressed the hope that the new investment would create jobs for many in the country.

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