Kazi Farms teams up with Indonesian company for modern retailing

Indonesian retail giant Alfamart is set to open a chain of a scaled down model of supershops in Bangladesh.

Kazi Farms Group, a local group with interests in poultry, satellite TV and frozen foods, is partnering in the venture alongside Mitsubishi Corporation of Japan, which is already one of the shareholders of Alfamart.

The initiative aims to bring international standards and cutting-edge retail technologies to the local market, said Kazi Zahin Hasan, director of Kazi Farms Group, while speaking to The Daily Star yesterday.

He said a public announcement of the new venture would be made today. One of the key investment partners, Alfa Group, operates approximately 27,000 retail outlets across Indonesia and the Philippines.

The group is publicly traded in Indonesia and is widely recognised for its operational scale and emphasis on inclusive employment. Around 40 percent of Alfamart's employees are women.

"We hope that Alfamart stores will also create jobs that are attractive for women in Bangladesh," Hasan added.

Mitsubishi Corporation, one of Japan's largest diversified conglomerates and a major stakeholder in the venture, played a pivotal role in connecting the partners.

Mitsubishi is also involved in other global retail chains such as Lawson and Uniqlo.

The corporation operates over 17,000 Lawson stores in Japan and Indonesia.

"We were introduced to Alfamart by Mitsubishi two years ago. We visited Alfamart in Indonesia and were impressed by the professionalism of their organisation," Hasan said.

He added that Alfamart's sophisticated IT system, which helps manage store-level inventory with high precision and optimised sales, was a major factor behind the decision to launch the joint venture.

"Their system allows them to know exactly which product is selling well in each shop and to maximise sales with minimum inventory," he explained.

According to the group, the first phase of the project will involve a foreign investment of $50 million. There are plans to bring in another $70 million in the second phase.

This investment is expected to bring the latest retail technologies to Bangladesh, along with a new distribution channel for fast-moving consumer goods (FMCG) produced locally.

Industry insiders say the venture will help create thousands of new jobs and offer a platform for Bangladeshi manufacturers to reach consumers more efficiently.