Four Firms get nod to invest abroadadmin2019
Four private business entities have received permission from Bangladesh Bank to invest $10 million in foreign countries which will be a leading step towards worldwide marketing of local products.
Among the permitted companies are- Square Pharmaceuticals, Renata Pharmaceuticals Ltd, BSRM Group and Columbia Garments.
Square Pharmaceuticals Limited is a subsidiary of Square Group which will invest $1 million in the Philippines. As soon as this event takes place, it will open doors of opportunity for the company giving it a foothold in the $6 billion pharmaceutical company- the third-largest in the Asian zone.
No company is permitted to market one’s own brand in Philippines provided it is not registered with the Food and Drug Administration of that country, hence, Square stands in the need of a third party.
Mohammad Habibuzzaman, company secretary at Square Group, stated that the investment scheme is at its very initial stage presently and that they will be initiating it under the name of Square Pharmaceuticals Limited Philippines.
Earlier in 2017, Square Pharmaceuticals also constructed its business in the capital of Kenya, Nairobi which cost them $17 million. Everything required is almost all set and the manufacturing will soon get functioning.
Renata Pharmaceuticals will be investing in its already existing subsidiary, an amount of $2 million, in Ireland. This will give them the room to maneuver to sell their medicines directly by themselves rather than selling them through a third party. In addition, it will also invest $5 million in the UK to achieve the same goal.
BSRM (Bangladesh Steel Re-Rolling Mills Ltd) is another local company that has procured the green light for investing abroad. It will invest $0.5 million in Hong Kong in order to elevate its prevailing subsidiary in the mentioned country.
The chief financial officer of BSRM Group, Shekhar Ranjan Kar, uttered that their motive behind building the subsidiary was, predominantly, to obtain raw
materials from China. Now that they have the investment approval, they can also export their goods to those domains, he further added.
A subsidiary of M&J Group, Columbia Garments, has also been granted the golden opportunity to invest in a foreign country. Columbia Garments Limited is a top-tier international manufacturer particularly in the production of jeans. This company will be investing $1.5 million in Hong Kong for the purpose of purchasing goods and boosting business.
Nonetheless, the companies Sonargaon Seeds Crushing Mills Ltd, a subsidiary of Meghna Group of Industries, and Bangladesh Venture Capital Limited could not succeed to land the assent of Bangladesh Bank due to the lack of proper documents.
Ergo, a total of 18 Bangladeshi companies now have investments overseas, among which, Columbia Garments Limited is an entirely brand new and fresh company to have received the approval.
Several other Bangladeshi companies such as Meghna Group, Summit Group, Pran-RFL Group, Nitol-Niloy Group and Ha-Meem Group also envisage investing in the foreign lands.
Article Source: The Business Standard
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