Beximco Group Returns to a Path of Normalcy
Navigating severe political and financial shocks, the Beximco Group is gradually attempting to resume its business operations through new management and policy support. Major advancements have recently been observed as boards of directors for key public limited companies, including Beximco Limited and Shinepukur Ceramics, were reorganised following the removal of Salman F. Rahman with approval from the BSEC. Furthermore, Beximco Pharmaceuticals formed a new nine-member board with four independent directors, eliciting a positive response in the stock market.
To keep businesses operational and resolve Letter of Credit complications, Bangladesh Bank provided major policy benefits by exempting institutions from Section 27 Ka (3) of the Bank Company Act. Shinepukur Ceramics’ working capital limit of BDT 105 crore at Sonali Bank was renewed until December 2027 with a 15% LC margin, while Beximco LPG (Unit-1) was permitted to open new LCs at National Bank under a 100% margin. These facilities carry conditions that no government liability will be created, and all revenues must be deposited into a specific account for proportional debt settlement.
To restart closed textile and garment factories at the Beximco Industrial Park in Gazipur, the group has sought government permission to introduce a new lease model involving a joint investment of USD 23 million from a British and a Chinese firm. Success in this lease model could partially reactivate around 15 closed factories, helping Beximco Limited target a return to profitability by December 2026. This initiative addresses the critical need to restore employment and production capacity amidst the group’s ongoing industrial challenges.
While other sister concerns face crises, Beximco Pharmaceuticals remains fully operational, profitable, and compliant on both domestic and international fronts, including normal trading on the London Stock Exchange. Mohammad Ali Nawaz, Chief Financial Officer of Beximco Pharmaceuticals, stated, ‘Alongside the country’s stock market, Beximco Pharmaceuticals is also listed on the London Stock Exchange. For this reason, the company must adhere to strict corporate governance, leaving no room for the board to interfere in daily operations. Professional personnel play the primary role in running the company. Our business is running at a normal pace, and the support from Bangladesh Bank and Janata Bank has played an important role in ensuring smooth operations’.
Dr. Zakir Hossain, Secretary General of the Bangladesh Association of Pharmaceutical Industries, highlighted the company’s strong foundation, noting, ‘Although Beximco Pharmaceuticals is the third-largest company in Bangladesh in terms of sales, it ranks number one in corporate governance. Secondly, Beximco has played a major role in developing human resources within the pharma sector. Its most prominent feature is that it is not run by owners themselves, but managed by professionals. He added, ‘I believe that reliance on professionals and management free from direct interference by the ownership has enabled Beximco to maintain stability’.
Despite these positive developments, concerned stakeholders note that significant challenges remain due to massive debts, with the group carrying over BDT 40,000 crore in bank loans, including a single claim of BDT 23,000 crore from Janata Bank. Meanwhile, owner Salman F. Rahman remains imprisoned following his August 2024 arrest, facing multiple legal proceedings. Rescheduling this massive debt, resolving closed factories, and clearing unpaid wages remain the ultimate test for the group’s full normalcy.
