ADB and Meghna Group sign US$20M agreement for energy-efficient flour mill in Bangladesh

BANGLADESH – The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Ltd., a division of Meghna Group of Industries (MGI), have signed a US$20 million loan agreement to fund the construction of a state-of-the-art, energy-efficient flour mill in Bangladesh.

Established in 1976, MGI is one of Bangladesh’s leading and most diversified conglomerates, with interests spanning fast-moving consumer goods, building materials, chemicals, energy, packaging, and logistics. 

This greenfield facility is designed to double MGI’s annual wheat flour production to 660,000 metric tonnes while consuming 37% less electricity than existing plants.

The company said the energy savings are expected to cut carbon dioxide emissions by approximately 8,200 tonnes annually, aligning the project with the government’s focus on sustainable industrial development and energy-efficient technologies.

The plant will contribute to domestic agriculture by enhancing milling capacity in a country where wheat consumption far outpaces local production.

Suzanne Gaboury, ADB’s Director General for Private Sector Operations, emphasized the significance of the partnership.

“This project marks a significant step toward the advancement of sustainable industrial development in Bangladesh,” said Suzanne Gaboury.

According to Gaboury, by promoting energy-efficient technologies and improving product quality, ADB and MGI are directly contributing to the country’s food security, food safety, economic resilience, and environmental sustainability.

Furthermore, the project is aligned with the Government of Bangladesh’s goals of strengthening domestic agro-processing and reducing the energy intensity of key industries, she noted.

In 2022, Bangladesh consumed 8.8 million tonnes of wheat, with domestic production exceeding just 1 million tonnes. This initiative aims to address the growing reliance on imported wheat products.

This reliance on imported wheat highlights the urgent need to expand domestic milling capacity, the ADB noted. With the anticipated rise in demand for flour milling, investing in energy-efficient technologies will foster environmentally sustainable growth in this sector, it said.

“The project will ensure food security, create additional employment opportunities for 160 individuals, foster relationships with 150,000 vendors in the SME sector, support market creation and industrialization, and contribute sustainable GDP growth in the Bangladesh economy,” said Mostafa Kamal, Chairman and Managing Director of MGI.

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