The people of our country are very simple and humble. They need to be nurtured properly for them to realize their potential.
A.K. Azad is one of those individuals who have dedicated their entire professional life to lead the industrialization of Bangladesh. He is hard-working, enthusiastic and visionary in nature. Azad is the Chairman and Managing Director of Ha-Meem Group of Companies which has 50000 employees, numerous stake holders and an outstanding performance track record in the RMG sector.
Born on December 31, 1959 in Jhiltuli, Faridpur, having completed his B.Sc in Applied Physics from the University of Dhaka he entered the business world and overcame numerous obstacles to establish ‘Ha-Meem Group of Companies’. Since then he has been the Managing Director.
A K Azad is exporting $400 million worth of apparels every year and has diversified business interest starting from garments to bank, agro based product. He is founder of popular daily newspapers –The Daily Samakal and owns Chanel 24. He is the former president of FBCCI and is at present, the President of the Bangladesh Chamber of Industries (BCI), a generic chamber focused on the leading industrialization of Bangladesh. Here are the excerpts of our discussion with him:
You are a visionary businessman and meteoric personality. Would please give a short description on the challenges and strengths of Industrialization of Bangladesh?
There are mainly two sides of the economy of Bangladesh, one is agriculture & export based and other is the wage earning side. It is a cross economy combining agriculture and industry. We are observing that GDP growth is constrained between 6 to 6.5 % because the required investment is not ensured. Still investment is 26 % of GDP but the expected rate is 34 to 35% which is not being attained because of infrastructural issues.
Along with gas and electricity there are issues regarding land scarcity. Day by day the population is increasing and day by day the availability of agricultural land is decreasing. Industrialization is taking place but we are not productive enough to be competitive. We are importing raw materials mainly from China and India where our balance of trade with both countries is in our disfavor. Our exports to those countries have also been falling. The main reason is that we are not competitive in the area of production and this is because our land prices are high compared to that of neighboring countries. Our borrowing costs are also very high whereas in India they are maximum 8 to 9%.
Above all our labor is not efficient enough. There is a serious lack of technical education. Our standard for education is still not at the right level and we need training institutes so that we can create a better trained work force. We are recruiting people from Sri Lanka, China, Korea and so on and paying them in dollars. But there is the possibility to pay this money to our local people if only they had the right skills. This issue requires serious consideration.
But there is a good trend that we are observing. In the past our industrialization took place in an unplanned way but you needed support services like security infrastructures and common facilities which are being provided now. The government is concentrating on Export Processing Zones (EPZ) and Special Economic Zones (SEZ). If government is able to provide one stop services then investment will pick up. There is some development in electricity but we need uninterrupted electricity supply. The government is claiming that they are providing 8000 MW but there is still a lot of load shedding. We then have to rely on alternatives like diesel which is very costly. Due to this host of causes we are not competitive in the domestic market.
There is an EPZs which lack gas supplies. There are open lands where no one is investing because of the lack of support services. The alternative is coal based power plant but still today coal policy is not finalized. Our Power plants are gas based and if this gas is exhausted then government investment in power will face a disaster. I think our energy policy and coal policy need to be finalized and properly implemented. Coal fired electricity is alternative of gas powered based power plant. Another is nuclear power plant and solar power or renewable energy. I know many solar power companies are coming to Bangladesh but they are not getting the right attention. For this accountability is very important in Government sector.
If I do not get the right encouragement then why I will go for investment? If I find it easier to invest in other country then I will go for that. I will go there. So to solve this problem government requires a comprehensive plan.
What is the rewarding side for you as an entrepreneur like that you have achieved something?
The most important thing is that in our company there are 50000 employees. We provide employment for them. Every year I am exporting 400 million worth of products. Being a visionary, I am striving to employ more people. I am not frustrated at all. We can be developing ourselves faster if these kinds of impediments are not here. I perceived that our people are very naive and good. If this good people are used in work they will produce good results but they are not being utilized. There is a gap between good governance and accountability.
Which sector rather than RMG and Leather is showing potentiality to grow in next five years?
Other than the leather and RMG, the Agricultural sector is showing huge potentiality and in this field only PRAN is exporting. No other operator is trying to make their mark. We need to push the Agro based industry forward like in Thailand where they are selling Jack fruit in hard form. If our agro products are financial viable then we will create more spaces for them to be exported.
What is your vision about Bangladesh?
Bangladesh is a country of prospects. But the question is, at what pace will this happen? The people of our country are very simple and humble. They need to be nurtured properly for them to realize their potential. We have this country now through great sacrifices and war. We have to be focused on the younger generation and provide them with the right education and guidance. With the right guidance they shall have a vision in front of them.
There are lots of starts up coming up. Do you have any advice for them?
To any entrepreneur my suggestions is that never let frustration get the best of you. Many have failed but the ones who want to succeed must remember that they must learn as much as they can while moving forward and not give up when they meet obstacles.
