Home ›› 25 Sep 2022 ›› Business Connect
“I was born in a family of businessmen. When I was young, I wanted to be a businessman as well. I was involved in student politics and now in trade politics. But I’ve always prioritised business above all else.
“I’ve properly maintained the family business by expanding and diversifying and we have grown it 10 times. But I want to grow the business further in future. For that, we’ve taken a new joint investment plan to invest Tk 1,000 crore into the IT sector,” said Alamgir Shamsul Alamin Kajal, the managing director of Shamsul Alamin Group (SAG).
Alamgir was born in Old Dhaka in November 1963 to eminent businessman late AK Shamsul Alamin and late Jahanara Alamin.
He lived with his family in Dhanmondi and Banani areas. After studying at Dhaka Residential Model School, he went to Scotland where he completed “A” and “O’” Levels from Merchiston Castle School in Edinburgh.
Afterwards, Alamgir pursued and completed higher studies at different universities in the United Kingdom and the United States. Since 2000, a while after he returned home, he has been living in Gulshan to deal with their business properly.
Alamgir’s father AK Shamsul Alamin was a well-known businessman and politician during the Pakistan period. He also served as a member of parliament at the time.
“I wasn’t active in politics during my student years here. I couldn’t remain involved in politics when I was staying abroad because I always dreamt of becoming a businessman. I joined the family business after completing higher studies abroad,” Alamgir told The Business Post.
“Our primary businesses were jute, tea, leather, and water and road transportation. Our textiles business was built in the 1980s and we got into real estate in 1995,” he said.
Now his leading company is Shamsul Alamin Real Estate Limited while other businesses include consulting, financial services, securities, pharmaceuticals, etc.
The roots
Alamgir reminisced, “My father started the business in 1958. He faced many challenges to do business with Pakistanis. But, back then, doing business was easy because there was less exposure and those who were brilliant did well.”
“But now it is tougher to do business as the trend has changed owing to technology. Nowadays even children know how to use the internet. The internet has been a game changer and it has made the business sector more competitive,” he said.
He continued, “When I joined the family business, it was a big challenge to get licences from the government. Businesses had to get permission from many organisations including the commerce and industries ministries. At the time, a few businesses were dominating the field with political backing. But now the business sector is wide open.”
Currently, energy security is the major challenge, Alamgir said. “Our exports have risen over $50 billion and it will double if nonstop gas and power are ensured.”
“Now, the international market looks to Bangladesh for various opportunities. Human resource is a big asset for us. We have over 160 crore people and must utilise them properly for the sake of development.
“Our domestic market has expanded vastly because of this population. Our export growth has also gone up. The market for Bangladeshi products has expanded worldwide. So, entrepreneurs have to take on more challenges to improve our position in the global market,” he said.
Business diversification
“Although our core business is textile, we felt that housing is always a top priority for people as it’s one of the basic rights. We knew real estate will surely become a major sector. We have been doing business on goodwill,” said Alamgir, also the president of the Real Estate and Housing Association of Bangladesh (REHAB), while talking to The Business Post.
“Now, we also have different businesses, particularly in trading and insurance. We now have two general insurance companies,” he added.
“Bangladesh is a rapidly growing country that has maintained economic stability and garnered a reputation worldwide in the last 15 years. There are huge opportunities in different sectors. There are still many sectors that we haven’t touched yet. We can capitalise on those,” he said.
“Recently, we started thinking about the information technology (IT) sector, which is the country’s future. Bangladesh can flourish in the IT sector like the garment industry,” he said.
Alamgir continued, “The IT sector has no physical border. People can work on projects in the US, the UK or any other country while staying in Bangladesh. So, it is a sector with vast potential and can be developed very easily. We have huge human resources. Our youths are much more brilliant and fast learners. Now Bangladesh has a reputation around the world and we can do business taking advantage of that.”
He said, “I have planned to set up a data centre with a reputed international company. We will invest Tk 1,000 crore in the IT sector that will create jobs for hundreds of engineers and highly technical people.”
Expanding the business
Alamgir said during his father’s tenure their company had 200-250 employees and their number has risen to 10,000 as the business grew manifold over the years.
“Now, we don’t do business only for money. Money is not an important issue for me but reputation is. Now we do business for three key reasons — keeping our employees, driving success stories, and playing important roles in trade organisations to develop the sector further. We also want to create new jobs,” he said.
“We expand the business and generate more employment, which also builds our reputation. Once upon a time, income was our priority in our business but now our focus is on remaining commercially important.
“Our next generations are following in our footsteps and have already joined our companies after completing higher education abroad. They are holding designated responsibility and doing well,” he added.
“We have high hopes for their initiatives because they know enough about diversification. They are also enthusiastic to work in our traditional business. We have many businesses. Money or turnover is not important to me. That’s a fact. We only want to maintain our business’s reputation and contribute to creating jobs,” Alamgir stressed.
“Moreover, I want a good position in the trade bodies so that I can play a key role in introducing or implementing trade policies and enhancing the businesses. For that, I got involved in trade politics. It’s tough to do business if we can’t get the necessary support and facilities from the government,” he added.
The challenges in real estate
The real estate and housing sector is a complex one, Alamgir said. “REHAB now has around 1,200 members, which are small, medium and high-level businesses including apartment and land developers. Many segments have different challenges and demands. It’s tough to meet all of them. Like every other sector, there are some good and bad businesses in real estate too.
“Sometimes clients claim the developers were not handing over their plots or flats. Sometimes both parties are found at fault. As the leader, I have to take care of these issues.”
He told The Business Post, “Sometimes developers can’t complete projects when clients don’t pay properly. Sometimes projects are not completed due to developers’ negligence. But the problems were at their peak after the Covid-19 pandemic made landfall in Bangladesh.
“At the height of the pandemic, we managed to save our sector by working together. All had to understand that the situation was not under our control. It was not easy to satisfy customers and developers both. But we did that.”
He said it was tough being the REHAB president. “There are many crises in our sector. I have resolved many of them by discussing them with the government.
“The Detailed Area Plan (DAP) is a big challenge for the sector. Right now, Dhaka has a population of over 20 million. We must develop our infrastructure in ways so that more can be accommodated. We also have to improve many services including power, gas and water.”
“Dhaka city will change vastly in future with authorities building flyovers, metro rail, expressway and underpass,” Alamgir added.
“We should think about Dhaka’s capacity to keep it as a liveable city. For that, we have to go outside the city. It’s a big challenge for developers. But they will work outside the city if the government takes the activities there,” he said.
He stressed, “Since the important businesses, education institutions and hospitals are in Dhaka, the connectivity between the city and its adjacent areas must be fast. The government must develop necessary infrastructures like roads to connect those areas with the capital.
“Metro rail and the elevated expressway will have to be taken out of Dhaka city. Then, we will be able to travel 30 kilometres in 30 minutes instead of three hours. Satellite cities can also be developed outside of the city.”
Win-win situation must
The REHAB president said it’s okay that the government took an initiative through DAP. “But people won’t agree to any one-sided decisions. They won’t accept if it’s forced on them. People violate laws only for their own interests.
“We have urged the RAJUK chairman to come up with a public welfare-oriented plan. I have said that people will follow happily if it’s a win-win situation.”
“So, we must develop and ensure proper infrastructures, roads, power, energy, and education in all sectors. For that, more investment is needed,” he said.
“The realtors are far from the capital market because of complexities. An application takes a long time to be delivered but by then, businesses’ demand change. Businesses won’t wait indefinitely for a decision,” Alamgir added.
Government employees get a home loan of up to Tk 60 lakh at 5 per cent interest, which means the government wants the employees to become owners of a property. But it’s not enough for an apartment, he said. “We can’t give property to them against such an amount. This plan needs to be revised.
“The government should scrutinise why their initiatives are not effective and must revise them from time to time after observing the market.”
Flat prices have gone up by at least 30 per cent because of the increased prices of raw materials which affect our costs, he said. “The 30 per cent year-on-year hike is now a big challenge for the real estate sector.”
Alamgir said, “After becoming the REHAB president, I have worked hard to contribute as much as I can. I’ve worked on reducing registration costs and legalising investment of undisclosed money in the real estate sector. All I think about is the further development of our sector and its future.”
“Real estate is a very challenging business in Bangladesh. You face a lot of negative allegations. I blame both realtors and clients for that,” he added.
Word to the wise
Sharing his views with The Business Post, Alamgir said he has made their family business 10 times bigger than what it was during his father’s tenure after overcoming numerous challenges.
“I will suggest the young generation and new entrepreneurs jump into the sea of business without any fear. Because there is no alternative to overcoming all challenges to become successful,” he said.
He said, “I’ve always wanted to be at the top of the trade bodies so that I can influence trade policies for the better. That’s why I entered trade politics.
“I have been elected REHAB president four times. I’m a director at FBCCI. I also served as a senior vice president of Bangladesh Textile Mills Association.”
“No nation in the world except us has fought for the recognition of their mother tongue. We have fought for nine months to liberate our country. We are a bold nation.
“We must continue to do our jobs boldly because we can take on tough challenges. The new generation must do the same and work hard,” said Alamgir.
