Beximco Group is gradually trying to restore its business operations following political and financial setbacks, supported by board restructuring and policy assistance from Bangladesh Bank. However, massive debt and the closure of several factories continue to pose major challenges.
The Bangladesh Securities and Exchange Commission (BSEC) has approved the reconstitution of the boards of several major listed companies under the group. Salman F Rahman has been removed from the boards of Beximco Limited and Shinepukur Ceramics, while Beximco Pharmaceuticals has formed a new nine-member board, including four independent directors.
Bangladesh Bank has granted special regulatory exemptions to Shinepukur Ceramics and Beximco LPG (Unit-1) to facilitate business operations. Shinepukur Ceramics’ Tk 105 crore working capital limit with Sonali Bank has been renewed until December 2027, and the company has been allowed to open letters of credit (LCs) with a 15% margin.
Beximco LPG (Unit-1) has also been permitted to open LCs through National Bank against a 100% margin until December 2027. Under the arrangements, the government will bear no financial liability, and all proceeds must be deposited into designated accounts for proportional repayment of outstanding dues.
Meanwhile, Beximco Group has sought government approval for a leasing model to restart textile and garment factories at its industrial park in Gazipur. A British company and a Chinese company have jointly expressed interest in investing around $23 million, equivalent to more than Tk 230 crore. If the proposal is implemented, around 15 closed factories could resume operations, at least partially.
Mohammad Ali Nawaz, chief financial officer of Beximco Pharmaceuticals, said professional management and strict corporate governance had helped the company maintain normal operations despite the absence of senior figures from the group. He also highlighted the support of Bangladesh Bank and Janata Bank in facilitating business activities.
Dr Zakir Hossain, secretary-general of the Bangladesh Association of Pharmaceutical Industries, said Beximco Pharmaceuticals had built a strong pool of skilled professionals, enabling it to operate without direct intervention from its owners. He described the company as a leading example of professional management and corporate governance in the pharmaceutical sector.
Despite these developments, Beximco Group faces bank liabilities exceeding Tk 40,000 crore, much of which is reportedly classified as defaulted. Janata Bank alone is owed around Tk 23,000 crore. Restructuring the debt, clearing outstanding wages and restoring employment for thousands of workers remain major challenges.
Salman F Rahman, the group’s prominent businessman and a former private industry and investment adviser to ousted prime minister Sheikh Hasina, was arrested in Dhaka on August 13, 2024, following the fall of the government on August 5. He remains in custody and faces multiple cases, including allegations related to killings during the mass uprising and corruption.
