Beximco Group

Background

Beximco Group is a leading industrial conglomerate in Bangladesh with an annual turnover of USD 1 billion. The Group comprises four publicly traded and seventeen privately held companies. It has investments across a wide range of industries, including textiles, pharmaceuticals, ceramics, real estate development, construction, trading, marine food, information and communication technologies, financial services, and energy.  Beximco Group owns a newspaper (The Independent) and a TV channel (Independent TV). The Group was founded by Sohail F Rahman and Salman F Rahman in the 1970s.

Affiliated businesses

Textile: The textile enterprise of Beximco Group includes four companies: Beximco Textile Division, Yellow, Beximco Synthetics Ltd., Beximco Jute Division. Beximco Synthetics Ltd is a publicly traded company. The other three companies are privately owned. Beximco claims to be one of South Asia’s largest vertically integrated textile and garment companies.

Pharmaceuticals: Beximco Pharmaceutical Ltd. is the largest exporter of pharmaceuticals in Bangladesh.  It is a publicly traded company. It produces 500+ pharmaceutical products and exports to 55 countries. Beximco Pharma is the first Bangladeshi company to be listed in the Alternative Investment Market of the London Stock Exchange.

Financial services: Beximco Group owns IFIC Bank and Beximco Securities Ltd. IFIC Bank Ltd has more than 100 branches across the country.

Ceramics: Shinepukur Ceramics Ltd., the ceramics entity of Beximco Group, is a leading exporter of ceramics in Bangladesh. It is a publicly traded company.

Real estate and trading: Real estate and trading wing of Beximco Group consists of Beximco Engineering, Real Estate Division and Marine Foods Division. Beximco claims to have a land bank of 800 acres of land at prime locations in and around Dhaka.

Energy: Beximco’s energy enterprise comprises Beximco Petroleum and Beximco Power. Beximco Petroleum is a major LPG provider to households and industries in Bangladesh. It has an LPG plant in Mongla. Beximco is also involved in establishing several power plants including the country’s first LPG-based power plant, a 200MW solar-based power plant in Gaibandha, a 540MW coal-based power plant.

PPE: Beximco PPE Division emerges as a collaboration between the Groups’ textile and pharmaceutical units. In May 2020, it was reported that they had exported 6.5 million PPE to the US.

Media and communications: Beximco Media Ltd owns a newspaper and a TV channel: The Independent and Independent TV.  Beximco Communications has launched a new direct-to-home (DTH) satellite TV service called Akash in 2019.

Ownership

Beximco Group is owned by the two brothers Sohail F Rahman and Salman F Rahman, and their family members. Sohail F Rahman is the chairman of Beximco Group, while his younger brother Salman F Rahman holds the position of Vice-Chairman. Salman F Rahman is a member of parliament and adviser to Prime Minister Sheikh Hasina on private industry and investment. Sohail F Rahman’s son Shahryar Rahman is an adviser to the board of Beximco. He looks after the overall operation of the textile division of Beximco. Ahmed Shayan Fazlur Rahman, son of Salman F Rahman, is also an adviser to the board of Beximco Group. He is chairman and MD of Beximco LPG and Beximco Communications. He was elected as the vice-president of the LPG Operators Association of Bangladesh (LOAB). Currently, Shayan Rahman is the Honorary Consul General of Kazakhstan in Bangladesh.

Legal cases

A 2007 cable from the United States ambassador in Dhaka, leaked by WikiLeaks, alleged that Salman F  Rahman, Vice Chairman of Beximco Group, is “one of Bangladesh’s biggest bank loan defaulters”. Salman Rahman was arrested by the military-backed government in 2007 on charges of crime and corruption. In 2008, he was released from jail on bail.

In July 2008, the Anti-Corruption Commission (ACC) filed a case against Beximco Group Chairman Sohel F Rahman, Vice-chairman Salman F Rahman, its two directors and two former high-ups of IFIC Bank for embezzlement of Tk 158.67 crore from Beximco-owned IFIC Bank through deception and forgery of documents. However, the High Court of Bangladesh granted him bail in the case of bank forgery in the next month.

A probe committee formed to investigate the share market scam in 2011 pointed the finger at 60 persons including Beximco’s Vice Chairman Salman F Rahman, for their alleged involvement in the stock market debacle. The probe committee further said that Salman F Rahman had been named as suspects in the probe report on the stock manipulation in 1996.

In September 2019, Bangladesh Bank accepted Beximco’s request for rescheduling the demand loan of Tk 430.05 crore bending its own large loan restructuring policy. The graft watchdog Transparency International Bangladesh called upon Bangladesh Bank to refrain from allowing a top-ranking loan defaulter an ‘illegitimate extension of endless privileges of rescheduling’. Earlier in 2015, Bangladesh Bank had granted an unprecedented concession of similar rescheduling to Beximco Group on condition that no further rescheduling would be applicable to this and other similar beneficiaries.

 In 2019, Bangladesh Power Development Board (BPDB) issued an ‘event of default notice’ to Beximco-TBEA Xinjiang SunOasis Co Ltd, a joint venture of Beximco and Chinese solar energy provider TBEA Xinjiang Sunoasis Co., Ltd., for failing to implement 200MW Gaibandha solar power project as per schedule. It is reported that Beximco-TBEA obtained the project under the controversial Special Act of Speedy Increase of Power and Energy supply, which even put a bar to jurisdiction as to the validity of any act done or purported to be done under this Act.  Cabinet committee on public purchase approved an unsolicited offer of Beximco-TBEA joint venture in August 2016 to set up the plant, reveals a power division document.

Contact details

Corporate Office

SAM Tower, Level 8

Plot # 04, Road # 22, Gulshan 1

Dhaka 1212, Bangladesh

Phone: +880-2- 9854488

Fax: +880-2-58815747

E-mail: corporate@beximco.net

Sources

Beximco Group. About us, Accessed on August 20, 2020

Bangladesh Export Import Company Ltd., Real Estate and Trading Division, Accessed on August 20, 2020

The Daily Star, Beximco launches DTH service Akash, May 18, 2019.

The Daily Star, Govt moves to terminate Beximco solar power deal, June 2, 2019

The Daily Star, BB caves in to Beximco again, September 3, 2019

The Daily Star, TIB urges BB not to allow Beximco for rescheduling loan, September 13, 2019

The Daily Star, Finger pointed at 60 individuals, April 9, 2011

The Daily Star, Salman, Sohel charged with embezzlement of Tk 158.67cr, July 29, 2008

The New York Times, Bangladesh’s other banking scam, April 11, 2016

The Daily Star, Salman Rahman freed on bail, August 28, 2008