Abul Khair Group revives four closed jute mills, targets Tk1,500cr exports by Dec
Shah Agro injects working capital into idle mills in Faridpur and Kushtia, targets 80,000 tonnes of annual exports.
Shah Agro Ltd, a sister concern of Abul Khair Group, has resumed operations at four previously closed private-sector jute mills in Faridpur and Kushtia, creating employment opportunities for around 15,000 people.
The four mills are Razzaque Jute Industries, Dahmashi Jute Industries and Faridpur Jute Fibres in Faridpur, and Kushtia Jute Industries in Kushtia.
The move marks Abul Khair Group's entry into the jute products business, with the group opting to revive existing idle factories rather than invest in new facilities.
Shah Agro has not acquired ownership of the four mills. Instead, it is providing working capital and taking responsibility for production and marketing while using the existing factory structures, machinery and other facilities.
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An Abul Khair Group official said Shah Agro is supplying raw jute, monitoring production and marketing the finished products to overseas buyers.
"Shah Agro is taking care of the production unit and marketing department. It is bringing in raw materials, monitoring production and exporting the products to foreign buyers by using the existing facilities, including the factory structures and machinery," the official told The Business Standard today (17 September).
Production has resumed at all four mills over the last six months, and some products are already being exported to Turkey, China and other international markets, according to the group.
The group has set a target of exporting around 80,000 tonnes of jute yarn and other jute products annually from the four mills. Company officials also said the group is working towards an export target of around Tk1,500 crore in jute yarn and other jute products by December 2026.
Group seeks to revive more closed mills
Sheikh Shabab Ahmed, head of corporate affairs and legal at Abul Khair Group, said the decision to work with closed mills was driven by the capital-intensive nature of the jute products business.
"The jute products business is capital-intensive. Many jute mills in the private sector are currently closed. Therefore, instead of setting up new factories, we decided to work with existing closed mills," he said.
"As part of our recent entry into the jute business, we have reopened four closed jute mills in the private sector. This has created employment for 15,000 people across the four factories. In addition, Abul Khair Group has applied to take over three to four closed jute mills owned by the government."
The group also plans to move beyond conventional jute products and produce higher-value, value-added items, Shabab Ahmed said.
"We are working to produce higher-value, value-added jute products in the future," he said.
He said Bangladesh's jute is of high quality and demand for it is growing as an environmentally friendly alternative to synthetic materials.
"That is why our organisation has decided to invest in jute products. We believe this investment will contribute, even indirectly, to improving the livelihoods of jute farmers," he said.
