As Bangladesh is constantly focusing on quality production, the cost of production has increased significantly. Unfortunately, with the declining credit rating, the export revenue of the jute industry also has declined significantly
Jute has been Bangladesh’s major cash crop since early 19th century, it is also known as golden fiber and Bangladesh is globally famous for its signature crop jute. The jute industry is a historically and culturally important industry in Bangladesh that dates back to the rise of the East India Company in the Indian subcontinent. Despite once being one of the country’s largest industries and a major export product, the jute industry has declined since the 1970s.
Amidst all Akij family curved the bravest investment under solid planning to elevate Bangladesh Jute Industry to a new level. The initiative of Akij brothers is now being considered as the probable largest commercial production of jute in the world surpassing Adamjee.
Inauguration of the Largest Akij Jute Mill
Amidst economic slowdowns raising concerns among businesses for new investments, the determined offsprings of the late Sheikh Akij Uddin, the visionary behind Akij Group, are challenging the norm by persistently channeling funds into Bangladesh’s jute sector. The Akij group launched their new project named “Akij Jute Mills” on July,2023 with the investment of approximately Tk2,500 crore from Sheikh Nasir Uddin. This establishment of Akij Jute Mill is preparing to set in Muksudpur Upazilas of Gopalganj within an area of 450 bighas. Prime Minister Sheikh Hasina has announced Jute as the ‘Product of The Year’ at the Dhaka International Trade Fair (DITF).
This new project would be an extended part of the existing Akij Jute Mill and will remain as a private jute company. To this development, Sheikh Bashir Uddin the youngest of Akij group has invested around Tk1,500 crore over the last three years. Sheikh Bashir Uddin stated that,” So we are trying to transform the industry (Jute Industry). We are partnering with a lot of textile graduates, and textile institutes. We are trying to change the process concept.”
About the New Commercial Project
The new extended Akij Jute Mill is setting in Muksudpur of Gopalganj aiming for creating work opportunities for thousands. This Mill has 6 factories, each spanning about 175,000 square feet. Here each factory is currently being equipped with machineries with the production capacity of 600 tons per day. The mill will officially start production in December,2023. Addition of this mill will pull 50% of country’s total jute production onwards under Akij group’s authority.
G Murshid Bappi, the director of operations at Akij Jute Mill stated that, “We are focusing on producing jute fabrics in the mill. Also, our goal is to introduce printing techniques on these fabrics, similar to those commonly seen on cotton cloths.”
“The mill will be the largest jute composite textile mill in the world”, Bappi added.
Expansion of Akij Jute Mill
Sheikh Bashir Uddin the former Chairman of Akij Group stated that, “All the jute mills we have acquired are private. We take no mill from the government. We are doing very well. When we acquired these companies, their collective business volume was about 39,000 tons. We hope this year we will reach 90,000 tons. This collectively makes us the single-biggest producing company in Bangladesh. In the efforts to diversify jute, we are the most diversified company in Bangladesh at the moment.”
Given that, Akij Bashir Group has purchased Janata Jute Mill, Sadat Jute Mill and Partex Jute Mill with a total of TK1200 crores under Akij group’s wing. Helal Ahmed, the chief operating officer of Akij Bashir Group stated that, “After taking over Janata in June 2020, we have invested to expand and diversify the capacity of the mill”.
Sheikh Afil Uddin’s Contribution
Alongside Nasir and Bashir, their brother Sheikh Afil Uddin also has fare share of contribution in Bangladesh’s Private Jute Industry. Sheikh Afil Uddin has been successfully running several Jute weaving mill with an annual production of over 1.5 lakhs tons. Currently, Afil is the largest supplier of jute sacks, used for packaging rice and potatoes in the country, having 170 million consumers across the country. Bangladesh Government has ruled 13 products for mandatory Jute packaging production worth of 2 lakhs tons per year where major portion is manages by Sheikh Afil’s mills.
Akij Brothers Navigating the Market
Akij Brothers has been constantly proving that the combination of innovation, education and dedication can never fail you. They are not only sustaining in the market but also expanding their global footprint and navigating the market towards a new height
While Sheikh Nasir Uddin and Sheikh Bashir Uddin are leading country’s Jute Industry to the Global Market, Sheikh Afil Uddin is elevating the Jute manufacturing standard of the inside market of Bangladesh. Here, when small mills are facing challenges with their sustainability after 5 to 8 years in the market, the Akij Brothers are thriving in the global market with the product. As Bangladesh is constantly focusing on quality production, the cost of production has increased significantly.
Unfortunately, with the declining credit rating, the export revenue of the jute industry also has declined significantly. Which is making it difficult for small ventures to sustain in the market. According to Bangladesh Jute Spinners Association, out of 80 mills in the country, 12 are fully closed and over a dozen factories are struggling for survival. Amidst all, Akij Brothers has been constantly proving that the combination of innovation, education and dedication can never fail you. They are not only sustaining in the market but also expanding their global footprint and navigating the market towards a new height.