A role model of steady growth

Anwar Group of Industries (AGI) is one of the largest and oldest Bangladeshi conglomerates, consisting of 18 subsidiaries producing steel, cement, textile, finance, and automotive products.

Sharing the story behind the emergence and success of the group, Manwar Hossain, chairman of Anwar Group, told The Business Post, “Our family’s business venture began almost two centuries ago, in 1834, when my great grandfather Lat Miah started manufacturing ivory combs and buttons and selling the products to wholesalers in Kolkata. But, today’s Anwar Group was founded by my father Anwar Hossain who started the business with only Tk 260 capital at the age of 7-8 years.”

“Now, the AGI has a total of 18 business ventures with around Tk 5000 crore annual turnover. However, the path to take the group to its present height from the small capital was not a bed of roses for Anwar Hossain who simultaneously had business and marketing knowledge,” Manwar said, adding, “Integrity, trust, and polite attitude towards the employees are the reasons behind today’s success of Anwar Group.”

Sharing his experience with The Business Post, Manwar said every business has some challenges, but the most important thing is how a businessman overcomes those. In addition to being industrious, polite manners with employees are very significant for the sustainable development of a company.

How AGI made its history

After the death of Lat Miah, my grandfather Rahim Baksh took charge of the business and flourished it vastly. He set up manufacturing units at different places in Dhaka including Rahmatganj and Hazaribagh. He used to sell the products to wholesalers from Harrison Road in Kolkata, Manwar said.

In 1914, besides the ivory comb and button manufacturing business, Rahim Baksh started a new venture of clothes and fabrics. The combs and buttons were manufactured from buffalo horns which he used to collect from then Madras (Chennai). Later, the products were distributed all across British India.

“At that time, Rahim Baksh was one of the top four businessmen from Bengal. People used to call him Mohajon or Rahim Mohajon. His name was listed as one of the highest taxpayers from this region by the then British government,” said Manwar.

“However, my grandfather died when my father Anwar Hossain was only five years old and my paternal uncle, Najer Hossain, a teenager. My uncle was a social worker who received several international awards for his contribution to society. He was more interested in social activities than the business which was supervised and run by the company manager after my grandfather’s death. As a result, the businesses declined drastically, and at one point, the capital dropped to almost zero,” the AGI chairman added.

Anwar Hossain revamped business

“My father, born in 1938, was the youngest among the siblings. After the business capital of my grandfather vanished into thin air, my grandmother gave 260 silver coins worth Tk 260 to my father, only 7-8 years old at that time, to carry on the family business. This tiny Tk 260 capital was all my father had, but thanks to his strong determination and hardworking nature, he succeeded in revamping the cloth business,” Manwar informed.

Within a few years, my father gained goodwill among customers and suppliers as a trustworthy businessman and set up Anwar Cloth Store at Chawkbazar in Old Dhaka just after the partition of India in 1947. He used to collect clothes from different mills and sell those at his shop. Within a short time, he expanded his business, purchasing six more shops in Chawkbazar.

In 1950, he travelled to different parts of the then West Pakistan in search of new business opportunities. Anwar became a millionaire at the age of 16-17 years only when he was already the sole distributor of a number of reputed clothing companies.

Success of Mala Saree

In 1964, Anwar Hossain established Anwar Silk Mills Ltd where he started manufacturing sarees. He branded it Mala Saree which gained popularity all across the country quickly. The popularity endured till the 1980s.

Later, the company soon started manufacturing diversified products including bathrobes, bed sheets, aprons, table clothes, napkins, and kitchen and terry towels which were exported to European and US markets. The Anwar Group is now one of the top exporters of various household, institutional, and retail products.

“My father did not acquire knowledge from school but from his own experiences. He knew how to attract customers and he knew marketing well,” Manwar said.

Expansion of business

After the country’s independence in 1971, Anwar expanded his businesses gradually, starting and succeeding in one after another venture. When no one thought of a private bank, he established City Bank Ltd in 1983.

“Employees were close to the heart of my father. He never sacked old employees. If an employee remained sick for several months, he used to get the salary staying at home,” Manwar said.

In 1978, Anwar entered into the steel business establishing Khaled Iron & Steels Ltd and later, in 1987, he founded Anwar Steel Mills Ltd. He extended his textile venture founding Hossain Dyeing & Printing Mills Ltd in 1984 and Mehmud Industries (Pvt) Ltd in 1992.

In 1995, he founded Anwar Galvanizing Ltd, the largest industry of this kind in the sub-continent. He exported galvanised corrugated iron sheets at first from Bangladesh. Anwar Spinning Mills Ltd was established in 1996 while Anwar Jute Spinning Mills Ltd was established in 1998.

Manwar said, “My father knew all aspects of businesses, including sales and marketing, properly at a time. His foresight in all the fields of business is the main reason behind the success of Anwar Group where 14,000 employees work now. He was always amicable to all his employees, no matter whether senior or junior.”

Real estate sector

Witnessing huge potential and utilising its own land, the group established Anwar Landmark Limited in 2001 and Anwar Cement Limited in 2002. In 2004, the group’s business ventures expanded further through the establishment of Anwar Ispat Limited, AG Automobile Ltd, Jamilabad Agro Estate Ltd, and Anwar Fisheries & Poultry Ltd.

Anwar Group started manufacturing Upvc fittings and pipes, Teflon tapes, and bathroom fittings in 2005. A1 Polymer Ltd has already become one of the largest manufacturers of uPVC fittings and pipes in the Asian sub-continent.

In 2014, Anwar Cement Sheet, one of the largest single-line cement sheet manufacturing companies of the world, was established as a roofing solution.

“Actually, we entered into the real estate sector to utilise our lands properly. Now, we manufacture different construction materials also,” said Manwar, also chairman of the Bangladesh Steel Manufacturing Association (BSMA).

Breakthrough and challenges

Every businessman has to face ups and downs and challenges. Once, in 1968, a ship carrying products worth Tk 1 crore which we were importing from China drowned in the sea. But my father paid the whole amount to the exporter selling 37 houses in Dhaka. The incident occurred before my birth.

Another incident occurred when I was a student of class one or two. My father sold our Mercedes car to bear the losses incurred by importing spoiled products. But, my father paid the money to the exporter selling our car.

Current business scenario

Our biggest investment is in the textile sector which includes yarn production, webbing, dyeing, and printing. Hossain Dyeing and Printing Mills Ltd is the largest mill of this kind in the country. We have units of woven fabric dyeing, yarn dyeing, fabrics printing, and towel processing.

Now, Anwar Group has a total of 18 companies. Among those, seven companies are in the textile sector. We have divided the companies into three divisions for operational optimising. These are the textile division, construction division, and building materials division.

My father introduced 36 new products and services including stainless steel cutlers, polyester fabric, GI fittings, Teflon tape, and magic pipe in the country.

Now, with an annual turnover of around Tk 5000 crore, the group has the plan to increase its number of employees from 14,000 to 25,000 by 2030.

“We are also in the service sector now. Our leasing company is Bangladesh Finance Limited, the insurance company is City General Insurance Company Limited, the security house is Bangladesh Finance Securities Ltd, and the merchant bank is BD Finance Capital Holdings Limited,” Manwar informed.

“However, we have recently set up “Anwar Denim” where denim jeans will be manufactured. We are going to set up a new steel factory soon,” he added.

Recommendations for the future

“The government should prioritise the prevention of money laundering. Around Tk 1 lakh crore is laundered every year. It must be stopped. Otherwise, it is impossible to discipline the country’s economy. Besides, under-invoicing in imports should be stopped too which would reduce the pressure on the dollar and increase the reserve,” Manwar said in reply to a query.

He further said a huge amount of money of the businessmen is wasted regularly due to inefficiency in port activities. The efficiency of Bangladeshi ports, especially the Chattogram Port, should be developed. The standard of ports has to be improved like the ports of Singapore, Malaysia, and India. Moreover, the NBR must be reformed to reduce illegal hundi business, under-invoicing and over-invoicing.

“Besides, we face harassment in the name of product inspection. For example, NBR sends two samples from 50 containers of imported products for testing. But, we get the report after 14-15 days. Why would it take such a long time? As a result, the 50 containers remain stuck in the port for which reason I have to make additional payments to foreign shipping companies for those 15 days. It is one kind of money laundering,” he added in frustration.

“If we are allowed to unload products from the port while the NBR is carrying out the test, a lot of money would be saved. If any fault is found in the test, the NBR can charge us later,” the businessman said.

He suggested the government impose higher duties on imports of products that are made in Bangladesh to encourage local entrepreneurs. Besides, the import of all luxurious products including cosmetics should be stopped for the time being to tackle the ongoing dollar crisis.

“We look for foreign investors. But if the government can prevent money laundering, the money would be invested in the country. If needed, the government can provide various facilities to encourage them to invest in the country instead of laundering the money,” he opined.

Bangladesh should provide electricity and gas to the sectors on a priority basis. The agricultural sector may get first priority here, and secondly, the mills and factories, he said, adding that the work-from-home culture should be encouraged to save electricity and avoid the hassles of traffic jams.

Joining in business

I joined my father's business in 1993, with the responsibility to supervise 18 factories. After my father’s death in 2021, I took the overall charge of the group, Manwar said.

“I studied at Udayan School up to class six and at St Paul's School in Darjeeling of India from class seven to twelve. Later, I went to the University of New Hampshire, USA, and obtained an MBA degree in 1992. I joined the family business in 1993,” he said.

“I think Anwar Group can be a role model to Bangladeshi entrepreneurs in terms of steady growth and modern management system,” he said.

“And, I believe selecting the top management of a company from junior employees can ensure its sustainable development,” he observed.