Pran-RFL Group ventures into flour, semolina production with new state-of-the-art facility

BANGLADESH – Pran-RFL Group, a leading conglomerate in Bangladesh with a diversified portfolio including food processing, has taken a significant step forward by starting its own production of whole wheat flour, refined flour, and semolina.

This move marks a pivotal shift for the group, which historically relied on local millers to meet its monthly demand of 12,000 tonnes of flour for its bakery operations.

The new flour mill, located in Kaliganj upazila of Gazipur, boasts a daily production capacity of 500 tonnes.

Since August, the group has been supplying 50-kilogram bags of flour to the market, catering primarily to wholesalers and retailers. Plans are already in motion to introduce consumer-friendly smaller packages of 1 and 2 kilograms for both flour and semolina.

To meet the growing demand for flour, the group has begun importing wheat from key international suppliers, including the United States, Canada, Russia, and Ukraine. Concurrently, it is looking to source wheat locally from regions such as Lalmonirhat, Kurigram, Dinajpur, and Panchagarh.

Facilitating this supply chain is a dedicated jetty under construction on the Shitalakshya River near the mill. Adjacent to the jetty are six massive grain silos, each with a capacity of 10,000 tonnes, and three smaller silos, each holding 1,000 tonnes.

According to Naser Ahmed, Executive Director of Pran Group, the company plans to install six additional silos to further enhance storage capacity.

Pran-RFL’s entry into the flour market comes at a time when major players like Meghna Group, City Group, and Bashundhara Group dominate the sector.

Bangladesh’s annual consumption of wheat derivatives stands at approximately 7 to 7.5 million tonnes, with 10 to 12 lakh tonnes sourced locally and the remainder imported. Businesses and restaurants account for 75% of the flour demand, while households contribute the remaining 25%.

“The commodity market in Bangladesh is vast and growing, especially with the expansion of bakery, culinary, and food processing sectors. This has significantly increased the demand for flour,” said Eleash Mridha, Managing Director of Pran Group.

He added that new entrants in the consumer goods sector are fostering competition, ultimately benefiting consumers through better pricing and product diversity.

The flour mill is one component of Pran-RFL Group’s ambitious Tk 1,500 crore [US$136 million] investment in the establishment of Kaliganj Agro Processing Limited.

The sprawling 180-bigha facility in Kaliakoir will also manufacture a wide array of products, including edible oil, seed-crushed products, lentils, salt, starch, spices, beverages, noodles, biscuits, confectionery, poultry feed, and flexible packaging materials.

To date, the group has invested Tk 750 crore [US$68 million] in the project. The facility currently employs 900 workers, with plans to expand the workforce to 3,000 once it reaches full operational capacity.

“This investment is not just about producing flour or other products. These products will also serve as a backward linkage for the industries where we already operate. This strategy enhances cost efficiency and ensures a more sustainable supply chain,” said Mridha.

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