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TK Group, the country's leading consumer goods market group, has invested hundreds of crores of taka in the rice mill to capture the retail market for rice. This industrial group has launched a new and modern rice mill in Hapunia, Naogaon Sadar, which is known as a rice-producing district. Commercial production also started at this mill last September. However, this rice mill was officially inaugurated this month. This information has been revealed by TK Group sources.
The people concerned with the company said that, in addition to improved varieties of sugar-coated rice, Nazirshail, Miniket, and Kataribhog rice are being produced at this new mill. In addition to parboiled rice, Atap rice is also being produced at this mill. In addition to 25 and 50-kg bags, the premium brand rice produced at this mill is also being sold in the market in 5 and 10-kg packets. This rice is being sold in the market under the well-known brand name of TK Group 'Pushti' in the country's market.
The company said that this industrial group has invested nearly hundreds of crores of taka so far in the new mill established in Naogaon. Land was purchased in Hapunia, Naogaon Sadar, in 2022 to establish this rice mill. And the construction of the rice mill began in 2023. The construction work was completed in June of this year. Then, after a few months of experimental activities, full-fledged commercial production began this month. This new rice mill has provided employment to about 500 people in permanent and temporary mills. Of these, more than 200 people have been permanently employed. This new rice mill of TK Group has the capacity to produce both parboiled and uncooked rice.
It is known that TK Group, as one of the leading consumer goods marketing industrial groups in the country, has been in the rice business for a long time. However, the group had been producing rice on rented rice mills for so long. The initiative to build its own rice mill was taken in 2023. The reason, according to company officials, is that during the previous Awami League government, a new condition was imposed on the license or registration of food grain business in the rice business. It was imposed that those who did not have their own factory or rice mill would not be able to do business in this market. After that, TK Group took the initiative to build its own rice mill. Now, production has started in that rice field.
Talking to those involved in the sector, it is known that after the country's leading industrial groups, ACI, City, Akij, Meghna, Bangladesh Edible Oil, Square, and Pran Group, TK Group has joined the rice field as a big corporate through a large investment. Apart from these big national-level corporates, several local business groups, including Rashid, Mokammel, are active in the rice market. Although they are local industrial groups, these organizations also have a strong position and large market share in the market.
Those involved said that the investment of big corporate industrial groups in the rice market is gradually increasing. While some see this as positive for the market, some say that if the investment of big corporations in this sector continues to increase, local entrepreneurs will be in a hurry. As a result, a large part of the rice market may fall into the hands of big corporations. However, analysts say that if the investment of big corporations increases, it will not only increase quality employment but also the quality of the product. In addition, the messy rice market will be much better organized. This will facilitate the government in ensuring supervision.
Meanwhile, even though large industrial groups have come forward to invest in the rice market and rice mills, the market share of these corporate institutions in the rice market is still very insignificant. The main reason for this is that large industrial groups generally produce and market premium quality rice. In addition, some of the large corporations have invested in this sector with the export market in mind. The consumers of the rice of the corporates that are selling in the domestic market are mainly the middle to upper middle class. But the large rice market is mainly dependent on low-income and general class consumers.
Sector stakeholders say that the annual size of the country's rice market, including all types of rice, including fragrant rice, is about 1 lakh 40 thousand crore taka. Of this, more than 95 percent is in the hands of area-based rice mill owners and traders. The remaining about 5 percent is the share of large corporations. As a result, although the investment of large corporations in the rice market has increased, their share in the market is still very low.
Satyajit Das Barman, the company's business head of grain and supply management, told Prothom Alo, "TK Group has decided to invest in rice mills for several reasons. The group is involved in the consumer goods business. Since rice is our staple food and the number of high-quality rice-producing companies in the country is very small, TK Group has brought its own nutritional brand of rice produced in rice mills to the market to provide high-quality rice to the people. This investment was made to build our own rice mill with the two considerations of complying with government regulations and maintaining the reputation of our brand. In the meantime, we are also getting a good response from the market. Even though the market is large, our investment in this sector will increase further."
Source: Online/GFMM
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