At a time when new investments seem risky, Abul Kashem, chairman of Bangladesh’s largest industrial conglomerate, Abul Khair Group, is making bold moves in the food and commodities sector. Through Smile Food Products Limited, he has significantly expanded his business portfolio, securing high-value acquisitions despite the prevailing market uncertainty reportedly.
Kashem recently acquired Abdul Monem Sugar Refinery Limited (widely known as Igloo Sugar) and the edible oil division of Globe Pharmaceuticals in deals worth approximately Tk 4,000 crore.
Igloo Sugar Deal: Tk 1,700 crore
Globe Edible Oil Deal: Over Tk 2,000 crore (including prime industrial land in Dhaka’s Tejgaon area)
A senior executive at Abdul Monem Group revealed that the sugar refinery was sold due to mounting financial losses. The company has already used Tk 600 crore from the sale proceeds to clear outstanding bank loans and settle arrears with the National Board of Revenue (NBR).
Despite owning Igloo, the country’s leading ice cream brand, Abdul Monem Group struggled to compete in a government-regulated sugar market. Industry experts suggest that companies with integrated businesses – such as bakeries and beverage production – are better equipped to survive in this challenging landscape, an edge that Abdul Monem Group lacked.
Now under Kashem’s management, Abdul Monem Sugar Refinery, with its 300,000-tonne annual refining capacity, represents one-eighth of Bangladesh’s total sugar demand.
Read more: Bangladesh’s Plastic Exports Surge Amid Global Demand
Kashem’s expansion strategy also includes acquiring GEOL (a concern of Globe Pharma Group of Companies), which operates in carbonated beverages, biscuits, and dairy products. Notable brands under GEOL’s portfolio include:
✔ Uro Cola
✔ Tiger Soft Drinks
A senior official at Smile Food Products confirmed the company’s aggressive expansion plans, with talks ongoing to acquire more businesses in the food, beverage, and biscuit industries sectors currently dominated by Meghna Group, City Group, and TK Group.
The Globe Edible Oil acquisition comes against the backdrop of a changing political landscape following the fall of Sheikh Hasina’s government on August 5 last year.
The previous owners – Harunur Rashid (Globe Pharma chairman) and his brother Mohammad Mamunur Rashid Kiron, a former Awami League MP from Noakhali-3—had strong political affiliations. Kiron also served as a company director.
When The Business Standard attempted to contact Harunur Rashid, Mamunur Rashid, and Samir Al Rashid, another director, their phone numbers remained unreachable, and no one was willing to comment on record.
Since taking over Abul Khair Group after his father’s sudden passing in 1978, Abul Kashem has transformed the company into Bangladesh’s largest industrial conglomerate. The group dominates key markets with:
Shah Cement (Cement)
AKS Steel (Steel)
Marks Full Cream Milk Powder (Dairy)
Seylon Tea (Tea)
Starship Condensed Milk (Milk Products)
With an annual turnover of around Tk 50,000 crore, Abul Khair Group remains a powerhouse in Bangladesh’s industrial sector.
The group’s leadership remains in the hands of the founder’s sons:
Abul Kashem – Chairman
Abul Hashem – Managing Director
Abu Syed Chowdhury – Deputy Managing Director
Shah Shafiqul Islam – Director
As Abul Kashem continues to expand his empire, the focus on the next move in reshaping Bangladesh’s food and commodities industry.
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