Habib Group: Encountering Challenges, Driving Progress

Established in 1947, the illustrious Habib Group has evolved into a colossal conglomerate headquartered in Chittagong, Bangladesh. This diversified giant operates across key sectors, including cement, steel, textiles, fertilizers, paper, yarn, apparel, aviation, and power generation.

Boasting a workforce exceeding 20,000 and multiple manufacturing locations throughout Bangladesh, the group is a formidable force in the nation’s industrial landscape. Habib Group has earned global acclaim for its market-driven innovation, engineering excellence, and stellar management.

With a legacy spanning over seven decades, the group is not just a business entity but a custodian of unwavering commitment to delivering top-tier products and services, enriching the lives of consumers worldwide. Habib Group stands poised at the forefront of industries, uniquely positioned for sustained leadership in the decades to come.

At A Glance: Habib Group

Evolution of Habib Group

Founded by the late Habib Ullah Meah in 1947 as a trading company, Habib Group has evolved into a diversified conglomerate under the leadership of his sons – Yakub Ali, Mahabub Ali, and Yasin Ali. Initially established in various business sectors, including textiles, steel, and fertilizers, the group expanded into aviation, power generation, and more.

In 2009, Regent Power Limited, a subsidiary, inaugurated a 24-megawatt power plant in Sitakunda, Chittagong. Regent Airways was launched in 2010, and in 2014, an 8 billion BDT expansion plan for international routes was unveiled. The enterprise received acclaim, winning the Enterprise of the Year award in 2014. Investments by the International Finance Corporation and expansion plans in textiles and aviation underscore the group’s dynamic growth.

Today, Habib Group stands as a key player in Bangladesh, poised for further expansion and diversification in response to market demands, ensuring sustained success in the decades to come.

Corporate Philosophy of Habib Group

Habib Group, driven by its core values, is dedicated to delivering uncompromised quality and exceptional customer service. Rooted in a mission of growth through superior products and services, innovation, and unwavering commitment, the group seeks to advance the quality of life for all Bangladeshis.

It envisions achieving operational excellence and market leadership across its diverse subsidiaries, contributing significantly to the country’s economic growth and social development. With a commitment to ethical and professional conduct, Habib Group sets the highest standards in quality, service, and reliability.

The vision of the conglomerate is to be a leading provider of world-class products and services, spanning industries like cement, steel, textiles, aviation, and more, with a focus on sustainability and meeting or exceeding customer expectations. Through constant initiative and dedication, Habib Group strives to be at the forefront of industry excellence, shaping a better and more sustainable future for people globally.

Major Business Concerns of Habib Group

Habib Group has diversified its business in various sectors like apparel, textiles, cement, steel, fertilizer, financial services, paper, shipbreaking, steel, aviation, power and more. The group has set up the following major sister concerns:

• Valiant Fashion Wear Ltd.
• Anowara Fashions Ltd.
• Anowara Apparels Ltd.
• Legacy Fashion Ltd.
• Hela Clothing Bangladesh Ltd.
• Siam’s Superior Ltd.
• Diamond Cement Ltd.
• Bangladesh Fertilizer Ltd.
• Anowara Paper Mill Ltd.
• Habib Steel Ltd.
• HG Aviation Ltd.
• Regent Fabrics Ltd.
• Regent Spinning Mill Ltd.
• Regent Power Ltd.
• Regent Textile Mills Ltd.
• Regent Weaving Ltd.

CSR Activities of Habib Group

Habib Group is committed to corporate social responsibility (CSR), aligning its business processes to enhance society and uplift the well-being of its workforce and local communities. Operating ethically and responsibly, the group integrates environmental and social considerations into its daily operations, surpassing legal and public expectations.

Key CSR initiatives encompass establishing educational institutions, proactive involvement in a charity fund for natural disaster relief, and initiating a 500-bed hospital providing free medical care to the underprivileged. Beyond philanthropy, Habib Group fosters a diverse, ethical work environment and prioritizes environmental protection through resource efficiency and recycling.

Notably, the group offers free kidney dialysis for economically impoverished patients, exemplifying a healthcare initiative with a direct impact on vulnerable sections of society. Moreover, implementing an Effluent Treatment Plant (ETP) underscores the group’s commitment to environmental sustainability.

Through these initiatives, Habib Group strives to contribute positively to consumers, employees, communities, and the environment.

Controversy of Habib Group

Habib Group faced a series of controversies in recent times. The aviation sector, exemplified by Regent Airways, suffered severe financial setbacks during the COVID-19 pandemic in Bangladesh, resulting in canceled leases and substantial dues to the Civil Aviation Authority.

Regent Textile Mills witnessed worker protests over unpaid wages, with a hunger strike and vandalism at the group’s headquarters. Legal troubles compounded as a court ordered the seizure of Habib Steel’s land in a loan default case, leading to travel bans on key directors.

By January 2023, the government confiscated Regent Airways’ bank accounts due to unpaid dues, contributing to the closure of numerous subsidiaries. The group faced arrest warrants for its directors in dishonored cheque cases, and defaulting on significant loans from various financial institutions raised concerns. These challenges have led to an uncertain and tumultuous period for Habib Group.

Conclusion

Habib Group stands as a diversified conglomerate, contributing significantly to Bangladesh’s industrial landscape for over seven decades. Rooted in a commitment to quality, innovation, and ethical business practices, the group has evolved across sectors, demonstrating resilience and adaptability.

While acknowledging its achievements and positive contributions, it is crucial to recognize the challenges faced, particularly during the COVID-19 pandemic. The group’s CSR initiatives showcase a holistic approach to social responsibility, emphasizing education, healthcare, diversity, and environmental sustainability.

With a vision for continued growth and positive societal impact, Habib Group remains a dynamic force in Bangladesh’s business arena.

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