Home ›› 14 Aug 2022 ›› Business Connect
He had graduated from Rajshahi University with a dream that he would someday become an influential business personality in the country.
But his father wanted his son to be a government officer like him, so that his son could instantly contribute to their 12-member family.
But the young man did not give up dreaming even amid the then financial crisis. Initially, he joined a jute mill and then a shallow pump sales company where he learned multiple business strategies.
After a while, he quit the job and started a business with a Tk20,000 investment with indomitable courage, intelligence and work experience in 1983.
He believed that strategy and hard-work were the powerful investment in a business. So he rushed to the doors of people in remote areas across the country to achieve his goal. Today he is a business icon in Bangladesh.
This is a rags-to-riches story of Runner Group Chairman Hafizur Rahman Khan. For a couple of years, Runner Group produced motorcycles commercially at its factory.
Super brand Runner is the market leader in the 80CC two-wheeler market in Bangladesh. It manufactures motorcycles between 80CC and 165CC engine capacity for local markets and exports 200CC engine capacity products abroad.
The sister concern of the group invested in multiple other sectors including automobile, oil, lubricant, gas, real estate and university.
During a discussion with The Business Post, Hafizur Rahman Khan has recently talked about how he became a leading businessman as well as the country’s rising automobile sector.
Embarking on business
Hafizur Rahman Khan started the industry to earn money initially because business could turn the wheel of life with mass people’s employment. He was thinking about how Bangladeshi people could produce motorbike at a cheap rate.
It is more difficult to do business than a job but he has always believed in success.
“Since the inception, the government, people and stakeholders have supported us and now it is time for me to give it back to the country,” said the successful businessman.
After his hard work and commitment, the epic adventure began to enter the thrilling yet risky world of entrepreneurship in 2000 when he started Runner Automobiles and invited the country’s established motorcycle traders to invest there.
Several people invested after seeing a bright plan. He started in full swing with Tk2.34 crore.
Initially, Khan chose to assemble ‘Dayang’ brand motorbikes to cater to the national motorcycles market that had been importing completely knocked-down motorcycle parts from China.
Since the first year of operations (2004-05), Runner Group has expanded its business ventures in diversified fields like automotive, oil, gas, lubricant, energy, real estate, land development, transfer infrastructure facilities and green technology generated bricks manufacturing, leather and footwear etc.
Runner Automobile Limited has organized its dealer network and well-covered service supports countrywide and is now having around 20 per cent market share in the overall commercial vehicle industry and 35 per cent market share in the Light and Medium (LMD) segment in Bangladesh.
Now around 4,000 people are employed at Runner Group. Company staffs get training facilities both locally and abroad.
Currently, it makes motorcycles between 80CC to 165CC engine capacity for local markets and exports 200CC engine capacity products abroad.
Runner motorcycle is being exported to Nepal, Bhutan and its market is open to Middle-East countries. Besides, three-wheeler CNG-run auto rikshaws and four-wheeler trucks are being assembled here. They also import world-class motorbikes.
During this growing period, Runner’s founder says, now he is not only dreaming of his personal and family benefits but also the benefits of people and the country and it has no end.
“If you ask a famous cricketer or playback singer what his last destination is in the profession He must reply that it has no end. But players have to set a goal, mission, and vision. I think I am also a player moving towards a specific way to help people get a motor vehicle at the cheapest price,” Hafizur Rahman Khan said in a tone of confidence.
The expansion
He said Runner Group’s business has gradually expanded countrywide and globally. Tens of thousands of Bangladeshi people invest there. “It will survive among the people”, said the optimistic entrepreneur.
The pioneer motorcycle manufacturer initiated its brand journey in Bangladesh after it officially got approval in 2011.
Runner has a production capacity of one lakh motorcycles annually with the help of over 300 agile factory personnel and salse of over 30,000 units yearly.
Now the state-of-the-art factory with the trademark ‘Made in Bangladesh’ is ready to thrive in the two-wheeler international market.
Hafizur Rahman Khan said he had been exporting motorbikes to Nepal and Bhutan since 2017 and it was the only two-wheeler brand in Bangladesh that brought such pride to the nation.
“We have around 200 motorcycle sales and showrooms in Nepal. Motorbikes market was open to the Middle-East country but it had been delayed due to the global Covid-19 pandemic.”
When the coronavirus restriction will be withdrawn the export will begin in full swing to the manpower export countries, said the business icon.
Runner motorcycle is the only brand in Bangladesh that is authorized to manufacture and export the product named Hawk 200, which is a 200CC motorcycle.
For 20 years, Runner Motorcycles industry has been growing fast in Bangladesh. Runner Group is the first company to export motorcycles successfully because of the exemplary government policy support and the citizens’ growing and stable financial solvency.
It pioneered retail financing in the two-wheeler industry and enabled Bangladeshi riders to buy their dream bikes at a very affordable EMI scheme.
Apart from retail financing, Runner motorcycle has created a benchmark with its remarkable after-sales service network across the country.
He further said sector insiders were uncertain if locally-made motorbikes would be sold. “But the dream came true when we went into production.”
An ultra-modern factory is being set up to make various types of motorbikes but the main target is to reduce the prices, said the maverich businessman.
He said Runner Group was not his asset and he had not dreamed of gaining profit only for himself through the company. The company will expand for the sake of the country and for human prosperity.
Runner in the local market
Runner motorcycle is the market leader of the AD 80CC two-wheeler market. Runner Motorcycles manufactures 15 models that include scooters uses both domestic and imported components.
They are one of the distributors of Servo lubricants and greases made from Indian oil, which is a Global Fortune 500 company.
As a result of local manufacturing, Runner could bring down the prices of its bike to as low as Tk60,000.
They opted to manufacture the components of two-wheelers. Within a short time, it established its brand title in the domestic industry named Runner Motorcycle.
The factory has facilities of a press shop, weld shop, paint shop, engine assembly conveyor, vehicle assemble conveyor, component quality control, central quality control section and research and development.
The factory is getting facilitated with the biggest and most advanced component testing facility. It ensures the brand’s focus on top-of-the-line quality products and continuous growth.
The government also came up with tariff and tax discounts on the import of the parts of bikes to support the endeavour to set up manufacturing facilities.
In the FY2021 it produced a total of 4,86,937 pieces of motorbikes which was a 5 per cent growth compared to the FY2020.
It means that the amount of daily purchases of the motorcycle is around 1500 Runner motorcycles notably at the entry-level empowering mass people to move faster in an efficient manner.
Most importantly for the most affordable retail financing people can afford motorcycle without a hitch.
Currently, it makes motorcycles between 80CC to 165CC engine capacity for local markets and exports 200CC engine capacity products abroad.
They are one of the distributors of Servo lubricants and greases made from Indian oil, which is a Global Fortune 500 company.
Introducing global brand in Bangladesh
Runner Group has been the local distributor of American popular two-wheeler brand UM and Italian flagship brands- Vespa and Aprilia.
The company introduced the Austrian flagship premium motorcycle brand KTM in the last few years for giving the premium mobility experience to Bangladeshi customers.
Runner Motors Limited, a major concern of Runner Group, came to an agreement with Eicher Motors Limited of India. Eicher brand trucks and pickups are available in Bangladesh.
“If you want to contest with a global brand, you have to adopt new technology. But it will need huge investment. We are working to install modern technology to improve quality of products.
The company is working with Bajaj Autos. At this moment 10 experts from Bajaj are in Runner Factory to share technical knowledge with the company’s technicians because they very much experienced and skilled in harnessing latest technologies.
The motorbikes market in Bangladesh is still small in size. If the market grows, the world’s largest companies will come and make investment to grab the growing market share, he hoped.
Bajaj Auto Limited is an Indian multinational automotive manufacturing company. It manufactures motorcycles, scooters and auto rickshaws.
Runner officials say Bajaj Autos’ wheelers CNG run-auto rickshaws will be assembled at the Runner Factory for smooth production and supply in Bangladesh.
Hafizur Rahman Khan said they would make multiple vehicles gradually. Indian global brand trucks are being assembled here.
Few words about the market
Hafizur Rahman Khan said the country’s automobile sector was growing gradually but the Covid-19 pandemic and Russia’s invasion of Ukraine hit it hard.
“We have to import raw materials as metal items and supply from others countries were reduced. As a result production cost soared by 25 to 30 per cent.”
The government formed an automobile policy in 2018. According to the policy a total of 10 lakh motorbikes will be made in Bangladesh in a year. But it is still producing below 5 lakh.
Hafizur Rahman Khan, the Prsident of Bangladesh Automobiles Association, said 15 lakh motorbikes sell in a month in neighbour India. Now the world motorbike market size is six crore a year.
China, India and Vietnam grabbed the market and this market is growing day by day. “We cannot properly grow despite demand due to the government restrictions and lack of incentives.”
He said the Indian and Chinese governments provide up to 20 per cent incentives on motorcycle export. “We wanted a warehouse of the items but have been unable to do that for a long time even after the assurance from the government.”
Bangladesh Automobiles Association also said the Road Transport and Highways Division restricts free motorcycle movement across the country when they permit CC500 bikes. So it is a major barrier to locally made motorbikes.
Impacting peoples’ life and economy
At Runner, all staff and their family members also get medical facilities, health care, hospital service, child day care centre, insurance, provident fund, gratuity, Eid and Boishakhi bonus.
Children - from six graders to Master’s Degree students - of employees are getting scholarship on their education. The company formed a welfare trust to work on eco-social activities for backward people and autistic children.
To this end, Varendra University, UGC Approved Private University in Rajshahi, was established in 2012. Hafizur Rahman Khan is the founder Chairman of the University, which is contributing to higher education in North Bengal.
