Pran-RFL sets sights on global domination

PRAN-RFL Group, the market leader in the processed food and plastic segments, has now set its sights on becoming a formidable player in the overseas markets too.

“I want to see Pran products in every supermarket in the world,” Ahsan Khan Chowdhury, deputy managing director of Pran-RFL Group, said in a recent interview.

If a Swiss food company can become a leader in the world, there is no reason that Pran cannot emulate it, he said.

To fulfil the ambition, the group has planned to expand much faster than ever before.

Dozens of new products -- from frozen foods to sweets, poultry, nuts, toys, long-life cake and plastic -- will be added to the product basket in the next one year.

“We have a target to grow our export by at least 30-40 percent every year. Accordingly, we are exploring new products and markets.”

The company's exports, which started off with puffed rice and chanachur several years ago, stood at $184 million (equivalent to Tk 1,443 crore) last fiscal year.

There is another philosophy behind the group's strong push to the export markets.

“We are doing very well in the local market and we don't need to export where the margin is very low. But we are exporting because it helps us learn and become more competitive.”

Chowdhury, 46, who joined his father's company 25 years ago, is now leading the group after the death of his father last year.

Yet, like other family-owned businesses in the country, he did not become the managing director and chief executive officer of the group. Rather, he has concentrated more on operations and expansion of the business.

Chowdhury went on to assure bankers and others who are concerned to see Pran-RFL Group's aggressive expansion in the last few years.

“If bankers are concerned, I request them to come and see us and our factories. Then, you (bankers) will understand what Pran is doing.”

The reason rapid expansion is taking place is because there is demand in the market, he said, adding that continuous reinvestment has helped Pran to expand rapidly.

The group is also focused on consolidating its position in the growing Bangladesh market by introducing new products.

There is huge business potential in the toy segment in Bangladesh, as it is mostly supplied by imports. “We will make toys at affordable prices in the next one year.”

The product range and employment figures will show how the Pran-RFL Group has grown in the last few years.

Now, Pran (food) and RFL (plastic) each has a product line of about 800 items, which were just few dozen of products five years ago.

The group's employee count is 84,000, which is considered the highest in Bangladesh. Six years ago, the number of employees was just 20,000.

Employment has grown at 30 percent a year for the last seven years, and the number will reach 115,000 by next year, Chowdhury said.

“Everything is possible in Bangladesh that has a strong consumer base of over 160 million. The demand is also growing faster. There is nothing to be surprised if Pran grows three times in four to five years.”

Chowdhury also touched upon the issue of quality of Pran products, as consumers, both at home and abroad, often raise the matter.

He admits that the overall food quality in Bangladesh is not very good. “We are also not perfect and trying to improve the quality by learning continuously.”

He said Pran-RFL Group has been learning from the overseas markets, and consumers have helped them too.

“Many consultants, including foreigners are working on the quality and safety of our food products. Also, new machines are being installed to ensure quality.”

Furthermore, Pran is taking help from the International Finance Corporation, USAID and some other donor agencies to develop the quality of the products.