Family Business Details

Analysis of Family Businesses
in Bangladesh
Structure, Lifecycle, and Strategy
Family Business
Family Business Analysis
Executive Summary
Family businesses play a crucial role in the economy of Bangladesh, contributing significantly to nation-
building, wealth creation, employment generation, and foreign investment. Recognizing and optimizing the
valuation of these businesses is increasingly vital given their substantial contribution to the country's GDP. This
study analyzes ten leading family businesses in Bangladesh using two perspectives: the Three-factor model of
Family Business and the Life Cycle Analysis of Family Business.
The Three-factor model examines ownership, family membership, and involvement in the business to depict
seven distinct interest groups or stakeholders. The Life Cycle Analysis assesses the stage of development of
each family business, considering factors like family dynamics, wealth management, business performance, and
management structure.
Key findings include -

Corporate Diversification: All 10 companies employ diversification strategies, leveraging both related and
unrelated sectors to mitigate risks and capitalize on market opportunities.
Family Involvement: Most businesses are family-managed or family-monitored, with varying degrees of family
member participation in ownership and management roles.
Life Cycle Stage: The companies span various stages of the life cycle, from sibling partnership to cousin
consortium, with some reaching maturity while others are still in a growth phase.
Wealth Diversification: Most families have diversified wealth across multiple industries, ensuring stability and
resilience.
These analyses provide valuable insights into the structure, dynamics, and developmental stage of these
prominent family businesses in Bangladesh, offering a roadmap for strategic planning, decision-making, and
sustainable growth in the context of the country's evolving economic landscape.
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Table of Content
Content Page No.
Chapter 1: Introduction
1.1 Objective of the study 4
1.2 What is Family Business 4
1.3 Three-factor model of Family Business 5
1.4 Life Cycle Analysis of Family Business 6-7
1.5 Challenges for the Sustainability of Family Business 8
Chapter 2: Methodology
2.1 Selection of Family Businesses 10
2.2 Research Design 11
2.3 Data Collection, Analysis, and Validation 11
2.4 Ethical Considerations 11
2.5 Limitations 11
Chapter 3: Analysis of Family Business

3.1 SQUARE Group 13-17
3.2 Ispahani Group 18-22
3.3 United Group 23-28
3.4 ACI Group 29-33
3.5 Akij Group 34-38
3.6 BEXIMCO Group 39-43
3.7 A.K. Khan & Company 44-48
3.8 Anwar Group 49-53
3.9 Pran-RFL Group 54-57
3.10 Rahimafrooz Group 58-62
Chapter 4: Discussion
Table 4.1: Corporate Diversification Strategy of Family Businesses 64-65
Table 4.2: Summary of three-factor model analysis of Family Businesses 65-66
Table 4.3: Timeline Summary of Family Businesses 67
Table 4.4: Lifecycle Cycle Analysis of the Family Businesses 68
Chapter 5: Conclusion 70
02
Family Business plays a significant role in a country’s economy. In Bangladesh, Family Businesses have made
their contribution to nation-building, wealth creation, employment generation, and foreign investment. The
industrialization of Bangladesh is supported by numerous Family Businesses. Recognizing and optimizing
valuations within this industry is becoming more crucial, given that family-owned businesses play a significant
role in contributing to the country's GDP.
1.1 Objective of the study

The purpose of this study is to analyze 10 leading Family Businesses in Bangladesh through two perspectives –
1) Three-factor model of Family Business; and 2) Life Cycle Analysis of Family Business. In the “three-factor
model”, we tried to analyze our selected family businesses based on “Ownership in the Business”, “Family
Membership”, and “Involvement in the Business”. In the “Life Cycle Analysis” we have tried to understand which
stage of the model each of the Family Businesses is occupying. The relevant data has been collected from the
official websites, research papers, and newspaper articles written about the covered Family Businesses.
1.2 What is Family Business

A family business, as implied by its name, is a business that is actively owned, operated, and overseen by two or
more individuals within the same family. Here, members may be related by blood, marriage or adoption. Family
Businesses can be small locally run businesses to large conglomerates. According to a report of McKinsey &
Company on family-owned businesses, around one-third of Fortune Global 500 companies are either founder-
controlled or family-controlled entities, which are 40% of all major listed companies in Europe. Families run 85%
of businesses in Southeast Asia, 75% in Latin America, and 67% in the Middle East.
In general, there are three forms of family business – (1) Family-Owned Business, (2) Family-Owned and
Managed Business, and (3) Family-Owned and Led Business. A family-owned business is one in which the
controlling size of the ownership stake is owned by the family or by a member of the family. A family-owned and
managed business is the kind of business where the controlling size of ownership lies in the hands of a single-
family, or by a single member of a family and the controlling ownership allows the family to formulate and
decide the objectives, methods, and policies. In the family-owned and led business, along with the ownership
of the majority stake by the family or by a member of the family, at least one member of the family is a member
of the board of directors. In this way, the family member can exert influence over the business’s direction,
strategies, and plans.
The first-generation entrepreneurs in family business are the new entrepreneurs, who invest their money and
bear risks and uncertainties to set up the business. They are wealth creators and pioneers in the business.
Second-generation entrepreneurs in the family business are supposed to control and run the business
established by their parents, but their activities and decisions are always under examination.
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1.3 Three-factor model of Family Business
The Three-factor Model is globally accepted as the standard model for successfully operating family businesses
created by Renato Tagiuri and John Davis at Harvard Business School (HBS). It includes Family, Business, and
Ownership as the three main components of the business, which form the pillar of any family business. An
individual in a family business system occupies one of the seven sectors that are formed by these three
overlapping circles.
Figure 1: Three Circle Model of Family Business System, Tagiuri and Davis- 1978.
An owner (partner or shareholder) and only an owner will sit within the left-hand circle. Family members will
occupy the bottom circle, and employees of the family company the right-hand circle. If you have only one of
these roles, you will be in just one circle. However, if you have two roles, you will be in an overlapping sector,
sitting within two circles at one time. With the three-factor model, one can depict seven distinct interest groups
(or stakeholders) with a connection to the family business –
(1) Non-family owners who do not work in the business;
(2) Non-family management and employees;
(3) Non-family owners who work in the business;
(4) Family owners not employed in the business;
(5) Family members not involved in the business, but who are descendants or spouse/partners of owners;
(6) Family Members who work in the business but are not owners; and
(7) Family owners who work in the business. spouses
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1.4 Life Cycle Analysis of Family Business

The Four-Cycle Model of Life Cycle Analysis is a diagnosis to help find out the life cycle of family business.
Developed by Dr. Alexander Koeberle-Schmid of KPMG in Germany, the 4 Cycle Model supports family
businesses of different shapes and sizes to identify the unique sets of challenges that they face. This model
offers a nuanced approach to understanding family businesses by considering various dimensions. Let's delve
into each cycle and its positions.
1.4.1 Family Cycle

This cycle focuses on the dynamics within the family unit influencing the business. The positions include-
1.4.2 Wealth Cycle

This cycle delves into the management and distribution of family wealth. The positions include-
1.4.3 Business Cycle

This cycle shifts the focus to the performance and direction of the business itself. It examines market trends,
competition, growth strategies, etc.
The positions include-
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1.4.4 Management Cycle

This cycle bridges the gap between the family and the business. It explores corporate governance, decision-
making structures, and professionalization of management.
The positions include-
All four cycles of Family Business help us to understand the “Four Cycle Model of Family Business” which
allows us to know in which cycle a family business belongs.
Figure 2: Four Cycle Model of Family Business, Dr. Alexander Koeberle-Schmid.
.
This model provides a comprehensive view of family businesses by considering family dynamics, wealth
management, business operations, and management structures. By identifying their positions within each cycle,
family businesses can gain insights into their unique challenges and opportunities. This, in turn, allows them to
tailor solutions that are specifically suited to their current circumstances, fostering long-term sustainability and
success across generations.
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1.5 Challenges for the Sustainability of Family Business
As family businesses expand from their entrepreneurial beginnings, they face unique performance and
governance challenges. Although the number of family shareholders increases exponentially generation by
generation, few actually work in the business.
Family-owned businesses have their own unique challenges. However, there are some common challenges that
all family businesses face at some point in their life cycles:
1.5.1 Emotions Unique Within Families: Negative emotions like resentment, jealousy, and rivalry can
create serious problems within the family business. The positive and negative emotions arise from
years of prior experience before becoming part of the family business. They can emerge as critical
factors in unpredictable ways.
1.5.2 Entitlement: When family business ownership is passed by inheritance, there may be heirs actively
involved in leading the business, heirs who are employed in non-leadership positions, and other
heirs who are passive owners. A common problem among the various categories of owners is that
family members feel entitled to a return on their equity in the form of dividends. They may also
expect to be provided with jobs, regardless of their qualifications, and they might even expect to
be paid a salary without actually providing useful services.
1.5.3 Employment: Managing employees and maintaining good human resources practices are
challenges in any business. Employer liability under state and federal laws can arise in many ways,
from wage and hour issues to claims of discrimination, harassment, unfair labor practices, workers’
compensation claims, etc. These issues don’t go away when a business is owned and managed by
family members. When good family relationships go bad, the laws applicable to employers and in
favor of employees can be powerful weapons in the wrong hands.
1.5.4 Succession: According to the Family Business Institute, only 12% of family businesses survive in
the third generation and a mere 3% make it to the fourth. Yet, according to the PwC Bangladesh
Family Business Survey 2021, One-third of the first-generation family business owners in
Bangladesh expect the next generation to become the majority shareholder in five years and 57%
of the family businesses here revealed engagement of their family members in the businesses,
while the global average is 55%. Succession, in whatever form, is inevitable, and it is a wise
business leader who addresses family succession issues before they ripen into a crisis.
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2.1 Selection of Family Businesses

The ten family businesses selected for analysis are chosen based on their prominence, contribution to the
economy of Bangladesh, and availability of relevant information for analysis. These businesses represent
diverse industries and sizes within the country's family business landscape.
Table 2.1: Sample Family Firms
Sl. No. Name of the Business Key Industry Engagement Founder(s)
Pharmaceuticals, FMCG, Healthcare, Textile &

1. Square Group RMG, Media & Communications, ICT, Security Samson H. Chowdhury
Service
FMCG, Textile, Agro, Shipping, Real Estate,

2. Ispahani Group Mirza Mohammed Ispahani
Advisory
Hasan Mahmood Raja,

Ahmed Ismail Hossain,
Energy, Manufacturing, Healthcare,
Akhter Mahmud Rana,
3. United Group Education, Real Estate, Shipping, Retail
K.M.A. Shamim,
Services
Abul Kalam Azad,
Faridur Rahman Khan
4. ACI Group Pharmaceuticals, FMCG, Agro, etc. Anis Ud Dowla
Tobacco, FMCG, Printing and Packaging,

5. Akij Group Akijuddin
Transport
Textiles, Pharmaceuticals, PPE, Ceramics, Real
Estate, Construction, Trading, Marine Food,
6. BEXIMCO Group Fazlur Rahman
ICT, Media, DTH, Financial Services, and
Energy
A.K. Khan & Company Shipping, Textiles, Jute, Plywood, and Heavy
7. Mr. Abul Kasem Khan
Ltd. Electrical Goods
FMCG, Steel, Cement, Textile, Finance, and

8. Anwar Group Anwar Hossain
Automotive Industry
Food & Beverage, Plastic Products, and Major General Amjad Khan
9. Pran-RFL Group
Agricultural Machinery Chowdhury
Automotive After-Market, Power & Energy,

10. Rahimafrooz Group A. C. Abdur Rahim
and Retail Chain
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2.2 Research Design

This study employs a qualitative research design, aiming to analyze and understand the structure, dynamics,
and life cycle stages of ten leading family businesses in Bangladesh.
The study utilizes two main theoretical frameworks for analysis:
a. Three-factor Model of Family Business: This model, proposed by Renato Tagiuri and John Davis, provides
a framework for understanding the interplay between ownership, family membership, and involvement in the
business within family-owned enterprises.
b. Life Cycle Analysis of Family Business: This model, developed by Dr. Alexander Koeberle-Schmid, offers
insights into the stages of development and challenges faced by family businesses over time, focusing on family
dynamics, wealth management, business performance, and management structure.
2.3 Data Collection, Analysis, and Validation

The data for this study is gathered from multiple sources, including official websites, research papers,
newspaper articles, and publicly available information about the selected family businesses. This
comprehensive approach ensures the reliability and validity of the data collected.
The collected data is analyzed using qualitative methods, with a focus on thematic analysis and pattern
recognition. The information gathered from each family business is systematically examined to identify patterns,
themes, and trends related to ownership, family dynamics, business diversification, and life cycle stage.
The findings of the analysis are validated through triangulation, cross-referencing information from multiple
sources to ensure accuracy and reliability.
2.4 Ethical Considerations

The study adheres to ethical guidelines, ensuring confidentiality and anonymity of the information collected
from the selected family businesses. Any sensitive or proprietary information obtained during the research
process is handled with utmost care and used solely for academic purposes.
2.5 Limitations
Despite efforts to gather comprehensive data, certain limitations may exist, such as the availability of publicly
accessible information, potential biases in the collected data, and the inherent subjectivity of qualitative
analysis. These limitations are acknowledged and addressed to the best extent possible within the scope of the
study.
By employing this methodology, the study aims to provide a robust analysis of the selected family businesses in
Bangladesh, offering valuable insights into their structure, dynamics, and developmental trajectories within the
country's economic landscape.
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Chapter 3: Analysis of Family Business
3.1 SQUARE Group
3.1.1 About the Company
SQUARE ventured in 1958 with the inception of Square Pharmaceuticals by Samson H. Chowdhury and three of
his friends. At present, the SQUARE Group generates over a billion-dollar revenue with exports to over fifty
countries around the globe Burgeoning to multiple companies, the group has now businesses as diverse as
healthcare, textiles, food & beverages, cosmetics & toiletries, media, and information technology.
In 1952, Samson H Chowdhury left his job and started working at his father's pharmacy which was named
Hossain Pharmacy. After four years, he started a small pharmaceutical company called Icons (Yakub & Sons).
After that, in 1958, three of his friends, Kazi Harunur Rashid, PK Saha, and Radhabind Roy joined forces and
established SQUARE Pharmaceuticals. Because of the equal investment from the four friends, the company was
named SQUARE. In 1971, Radhabinod Roy relinquished his part of the ownership, while Harunur Rashid and P.
K. Saha's ownership still remains. Although the journey of SQUARE Group was established by four friends,
Samson H Chowdhury led it. After his demise, his children took charge of it, which is now also being led by his
grandchildren.
3.1.2 History & Key landmark achievement
1958: Establishment of SQUARE Pharmaceuticals by Samson H Chowdhury and his friends.
1988: Square Toiletries Ltd. started its journey.
1994: SQUARE Textile PLC. started its operations and Square Toiletries Ltd. registered as a Private Limited
Company and became a separate entity.
1997: Mediacom Ltd. started its operations.
1999: Inception of Aegis Services Ltd.
2000: SQUARE Food & Beverage Ltd. started its journey.
2001: SQUARE Fashion Ltd. started its operations.
2002: SQUARE Informatix Ltd. was established.
2005: Sabazpur Tea Company Ltd. started its operations.
2006: SQUARE Hospitals Ltd. started its journey.
2011: Maasranga Communications Ltd. started its journey.
2012: Incorporation of SQUARE Denims Ltd.
2014: SQUARE Apparels Ltd. started its operations.
2021: SQUARE Pharmaceuticals Kenya EPZ Ltd. started its operations in Kenya.
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Figure 3.1.2: Key landmark achievements of SQUARE Group.
3.1.3 Corporate Diversification Strategy
Square Group has achieved remarkable success through a well-orchestrated diversification strategy. Their
expansion encompasses both related and unrelated diversification, creating a diverse portfolio across various
sectors.
1. Related Diversification
Leveraging Existing Resources: Square Group strategically utilized its core competencies and
resources in its initial sectors like pharmaceuticals and food processing to enter adjacent markets. For
example, their expertise in manufacturing and distribution aided their expansion into cosmetics and
toiletries through Square Toiletries Ltd.
Vertical Integration: The group adopted vertical integration to strengthen its supply chain and gain
control over key manufacturing processes. SQUARE Denims Ltd. and SQUARE Apparels Ltd. exemplify
this move, ensuring quality fabric production for their garment manufacturing ventures.
Horizontal Integration: Square Group diversified horizontally within existing sectors to capture a
wider market share. SQUARE Food & Beverage Ltd.'s expansion into diverse food product categories
like tea and biscuits is a prime example.
2. Unrelated Diversification
Market Opportunities: The group identified lucrative opportunities in unrelated sectors to fuel growth
and reduce dependence on single industries. Their ventures into media with Maasranga
Communications Ltd. and IT with SQUARE InformatiX Ltd. demonstrate this opportunistic approach.
Synergy Creation: Square Group strategically acquired businesses in unrelated sectors that could
offer potential synergies with existing operations. For example, their investment in Aegis Services
Limited, a security solutions provider, complements their focus on manufacturing and infrastructure.
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3.1.4 Family Tree
Samson H Chowdhury has three sons and one daughter. After his demise in 2012, his children took charge of
the Group, which is now being led by his grandchildren as well. Samuel S. Chowdhury is the eldest son of the
late Samson H Chowdhury. He is the Chairman of SQUARE Pharmaceuticals PLC, SQUARE Hospitals Ltd.,
SQUARE Toiletries Ltd., SQUARE Food & Beverage Ltd., Sabazpur Tea Company Ltd., SQUARE Fashions Ltd.,
SQUARE Denims Ltd., SQUARE Apparels Ltd., Maasranga Communications Ltd., Mediacom Ltd., SQUARE
InformatiX Ltd. Ratna Patra is the only daughter of the late Samson H Chowdhury. She is a Vice Chairman of
SQUARE Pharmaceuticals PLC., SQUARE Hospitals Ltd., SQUARE Toiletries Ltd., SQUARE Food & Beverage Ltd.,
Square Textiles PLC., Square Fashions Ltd., Maasranga Communications Ltd., Mediacom Ltd., SQUARE
InformatiX Ltd. Tapan Chowdhury is the second son of Samson H Chowdhury. He is a Sponsor Director of the
various concerns of SQUARE Group. He is currently the Chairman of SQUARE Textiles PLC. And Managing
Director of SQUARE Pharmaceutical PLC. The youngest son of Samson H Chowdhury is Anjan Chowdhury. He
manages more than 31 ventures of the Group in the capacity of Chairman & Managing Director respectively.
The fourth-generation members joined the business after finishing their education and acquiring some work
experience. Samuel‘s daughter, Sanchita, and his son, Eric, joined the business after graduating from Australia.
Tapan‘s daughter, Anika, joined the business in 2012 after graduating from Singapore, followed by Ratna‘s son,
Colin. Anjan‘s children are still too young to join the business.
The family tree is shown below for better understanding.
Figure 3.1.4: Family Tree of SQUARE Group.
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3.1.5 Analysis of the Three-Factor Model
SQUARE Group family business can be shown through the perspective of the three factor model by the
following manner–
1. Any owners of publicly offered shares of any of the companies of Square Group can be placed in the 1st
part of the model.
2. The two Independent Directors of Square Pharmaceuticals can be placed in the second part of the model
as they are management who are not family Owners.
3. There is a Director of the company who is not a family member of Samson H. Chowdhury, and he is an
owner who also works in the business.
4. There is no publicly available information regarding this.
5. Any grandchildren of Samson H. Chowdhury, who are neither employees nor owners, belong to the 5th
part of the model.
6. There is no publicly available information regarding this.
7. The four offspring of Samson H. Chowdhury are owners who work in the business and can be placed in this
part of the model.
Figure 3.1.5: Three Factor Model Analysis of SQUARE Group.
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3.1.6 Life Cycle Analysis of Family Business
The Company belongs to the Cousin Consortium position of the family life cycle. The sons and daughters of
Samson H. Chowdhury are the majority owners of the business. At present, the grandchildren of Samson H.
Chowdhury are also involved in the business along with his son-in-law. The third generation started joining the
business in 1974, and the fourth generation from 2007.
The wealth of the company is well diversified. The family’s wealth is spread across various industries such as
Pharmaceuticals, FMCG, Healthcare, Textile & RMG, Media & Communications, ICT, Security Service, etc.
The company is in the growth stage as the group is still looking for expansion by establishing SQUARE
Pharmaceuticals Kenya EPZ Ltd. and the upcoming expansion in the Philippines by Samson Pharma
Incorporation.
Although there is a presence of non-family members on the board, the company is mainly family-managed as
the majority of the shares are owned by the family members of Samson H. Chowdhury.
Figure 3.1.6: Life Cycle Analysis of SQUARE Group.
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3.2 Ispahani Group
The Ispahani family has been involved in business in South Asia since 1820. Mirza Mohammed Ispahani
established the Calcutta office of M.M. Ispahani & Sons in 1900. Later, M.M. Ispahani Limited was incorporated
in 1934. In 1947 the corporate Head Office was moved to Chittagong, where it stands today. The 200-year-old
Ispahani Group is a pioneer in many fields and remains one of the most prosperous and esteemed business
entities in Bangladesh. With its involvement in tea, textile, jute, property, poultry, shipping divisions, etc., the
Group employs approximately 10,000 people. It owns four of the finest tea gardens in Bangladesh: Ghazipore,
Mirzapore, Zareen and Neptune. It is the largest tea trading company in the country and dominates the
domestic tea market, capturing approximately 50% of the national branded tea market and 80% of the branded
tea-bag market. Ispahani Tea is renowned all over Bangladesh.
1900: Establishment of M.M. Ispahani & Sons in Calcutta.
1934: Establishment of M.M. Ispahani Limited
1947: The corporate Head Office was moved to Chittagong.
1954: Pahartali Textile & Hosiery Mills, a spinning unit of the group started its commercial operations.
1960: Inception of Ispahani Islamia Eye Hospital.
1989: Ispahani Marshall Limited, the packaging business of the group, started its operations.
1999: Ispahani Foods Limited started its journey.
2004: The Avenue Hotel and Suites started its journey.
2007: Ispahani Agro Limited started its venture with seed business.
Other than these Ispahani group also established their two real estate companies namely Free School Street
Property Limited and Nasirabad Properties Limited. They also have a separate Shipping and Logistics
Department.
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Figure 3.2.2: Key landmark achievements of Ispahani Group..
The Ispahani Group, a diversified conglomerate with a strong foundation in the tea industry through its
subsidiary Ispahani Tea Limited, has strategically expanded into various sectors including textiles, foods, agro,
ICT, hospitality, packaging, real estate, and shipping. The corporate diversification strategy of the Ispahani
Group can be analyzed through both related and unrelated diversification approaches:
Leveraging Core Competencies: The Ispahani Group can utilize its expertise and resources from the
tea industry to expand into related sectors such as foods and hospitality. For instance, Ispahani Foods
Limited (IFL) can benefit from the Group's understanding of consumer preferences and distribution
networks.
Synergy Creation: The Group can seek synergies among its various businesses to enhance
operational efficiency and create value. For example, by integrating tea plantation with agro
operations, the Group can optimize the supply chain and reduce costs.
Risk Mitigation: By diversifying into unrelated sectors such as ICT, real estate, and shipping, the
Ispahani Group can reduce its dependence on any single industry and mitigate risks associated with
market fluctuations or industry-specific challenges.
Market Expansion: Venturing into unrelated industries allows the Group to explore new markets and
capitalize on emerging opportunities. For instance, Broad Band Telecom Services Limited (BBTS)
enables the Group to tap into the growing demand for telecommunications services.
Portfolio Diversification: The Ispahani Group's diversified portfolio across multiple sectors helps
spread investment risks and ensures steady revenue streams, even if certain industries face downturns.
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3.2.4 Family Tree
The M.M. Ispahani & Sons was founded by Mirza Mohammed Ispahani in 1900 in Calcutta. Later, Mirza
Mohammed Ispahani’s eldest son, Mirza Ahmed Ispahani, joined the partnership in 1918 and, with his younger
brothers, Mirza Abol Hassan Ispahani and Mirza Mahmood Ispahani, established the private limited company,
M.M. Ispahani Limited, also known as Ispahani Group, in 1934 at Calcutta. In 1947, the corporate headquarters
was shifted to Chittagong where it stands today.
Mirza Mehdy (Sadri) Ispahani, son of Mirza Ahmed Ispahani later played the role of the Chairman of Ispahani
Group. After his death, his second child Mirza Ali Beheruj Ispahani took over as the chairman of the group. At
present, after the death of Mirza Ali Beheruj Ispahani, his younger brother (fourth son of Sadri Ispahani) Mirza
Salman Ispahani is playing the role of the chairman of the Ispahani Group. Except for one son Mirza Imran
Ispahani, other family members are also playing different roles in the business.
After the Bangladesh Liberation War, the second son of Mirza Mohammed Ispahani, Mirza Abol Hassan Ispahani
moved to Iran and then to Pakistan. All his descendants and family members are either settled in Pakistan or
London and are involved in the Ispahani Group business.
Although after the partition of India, Mirza Mahmood Ispahani (the third son of Mirza Mohammed Ispahani)
shifted to West Pakistan (Pakistan), his sons - Mirza Md. Ali Ispahani (Alijoon) and Mirza Md. Khaleel Ispahani
shifted to East Pakistan (Bangladesh). After 1952, Alijoon Ispahani joined the Chittagong Jute Manufacturing
Company, a subsidiary of M. M. Ispahani Limited. He was married to Ameneh Ispahani, with whom he had 2
children - Emaad Ispahani and Mariam Ispahani. Emaad Ispahani is a Director in M. M. Ispahani Limited and his
sister is involved in her own business.
Figure 3.2.4: Family Tree of Ispahani Group.

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The Ispahani family business can be shown through the perspective of the three-factor model in the following
manner:
1. Any owners of publicly offered shares of Ispahani Group can be placed in the 1st part of the model.
2. Any management who are not family members can be placed in the 2nd part of the model.
3. There was no publicly available information regarding the 3rd part of the model.
4. There was no publicly available information regarding the 4th part of the model.
5. Two fourth-generation family members belong to the 5th part of the model as they are family members
who are not actively involved in the business either as employees or owners.
6. Two fifth-generation family members work in the business, but they do not own any share. So, they can be
placed in the 6th portion of the model.
7. Three fourth-generation family members can be placed in the 7th part of the model, as they are owners,
who are family members, and who also work in the business.
Figure 3.2.5: Three-Factor Model Analysis of Ispahani Group.
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Ispahani Group is one of the largest and oldest Family Businesses in Bangladesh. In the Family Cycle line, it
belongs to the Cousin Consortium position. Not only the grandchildren but also the grandchildren’s children of
the founder Mirza Mohammed Ispahani are actively involved in the business. Currently, the 5th generation
family members (IAL Gen Z Circle) of the Ispahani Family are working in the group.
The wealth of the company is well diversified. The family's wealth is spread across various industries such as tea,
textile, jute, property, poultry, and shipping divisions, etc.
The 200-year-old company is in the maturity stage as there was no new company formed after the Ispahani Agro
Ltd. (2007).
Most of the upper management positions and board membership are occupied by the Ispahani family
members. Thus, this makes it a family-managed business.
Figure 3.2.6: Life Cycle Analysis of Ispahani Group.
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3.3 United Group
The United Enterprises & Company Limited (UECL) most known as United Group is one of the largest
Bangladeshi industrial conglomerates. The industries under this conglomerate include power generation,
manufacturing, healthcare, education, real estate, shipping, retail services, etc. The United Group was
established in Dhaka in 1978 by four friends Hasan Mahmood Raja, Ahmed Ismail Hossain, Akhter Mahmud
Rana, and K.M.A. Shamim. In 1986, two more friends, Abul Kalam Azad, and Faridur Rahman Khan joined the
group. Due to a dispute, the last two co-founders are no longer part of the United Group.
At present, United Group has become one of the most recognized family-owned business houses in the nation.
It consists of 37 active concerns spanning from power generation to healthcare, education, real estate,
construction, port, yarn spinning, specialized services, shipping, and logistics among others.
1978: Inception of United Group.
1979: Incorporated as Limited Liability Company.
Early 90’s: Incorporation of Dream Builders Ltd.
1991: United Real Estate started its journey.
1992: The Group stepped into the Fuel Oil Terminal operating business by acquiring Summit United Tank
Terminal.
1995: Acquisition of Van Omeron Tank Terminals Ltd.
1996: Joint venture in Comilla Spinning Mills Ltd.
1997: First Independent Power Producer Khulna Power Company Ltd. started its journey.
1998: United Polymer Ltd. was incorporated.
2004: The launch of United Rotospin Ltd, United International University and Novo Healthcare & Pharma Ltd.
2005: Establishment of Neptune Land Development Ltd.
2006: Launch of United Hospital Ltd. & Operation began in United Land Port Teknaf Ltd.
2007: Launch of United Power Generation & Distribution Company Ltd.
2011: Launch of United Ashuganj Power Ltd.
23
2012: Started its Joint Venture Company – Gunze United Ltd. with Japanese company Gunze Ltd.,
2013: Launch of Shajahanullah Power Generation Company Ltd. & Unimart Ltd.
2014: United Shipping & Logistics Services Ltd. started its operations.
2015: Orange Solutions Ltd. became ISO Certified Company. Commissioning of the Country’s 1st Combined
Cycle, Modular Power Plant United Ashuganj Energy Ltd.
2017: In partnership with Petronas Lubricants International, United Lube Oil Ltd. started its operations.
Shajahanullah Power Generation Company Ltd. became United Energy Ltd. Combining United Energy Ltd. and
United Ashuganj Power Ltd.
2018: Wellbeing Pharmacy, a pharmacy chain brand of United Pharma and Healthcare Limited (UPHL) was
established.
2021: United Sulpho Chemicals Ltd. started its operations.
There are other concerns of United Group such as – Medix & M A Rashid Hospital of United Healthcare; UPGD
DEPZ, UPGD CEPZ, United Chattogram Power Ltd., United Payra Power Ltd., etc. of United Power Generation &
Distribution Co. Ltd.; United Property Solutions Ltd., IPCO Hotels, IPCO Developments Ltd., etc. of United Real
Estate; Orange IT Ltd. of Orange Solutions Ltd; United Makkah Madina Travel Assistance Co. Ltd; and many
more.
Figure 3.3.2: Key landmark achievements of United Group.
24
The United Group has undertaken a comprehensive corporate diversification strategy over the years,
encompassing both related and unrelated diversification approaches:
Vertical Integration: The Group has expanded into related industries along the value chain of its core
businesses. For example, the establishment of Comilla Spinning Mills Ltd. complements its presence in
the textile industry, ensuring a steady supply of raw materials and enhancing operational efficiency.
Horizontal Expansion: Through related diversification, the Group has ventured into sectors such as
healthcare, education, and real estate, leveraging synergies with its existing operations. The launch of
United Hospital Ltd., United International University, and Neptune Land Development Ltd.,
demonstrates the Group's efforts to capitalize on its expertise and resources in diversified sectors.
Market Exploration: United Group has expanded into unrelated industries to explore new markets
and opportunities. For instance, the acquisition of Summit United Tank Terminal and Van Omeron Tank
Terminals Ltd. marked the Group's entry into the fuel oil terminal operating business, diversifying its
portfolio beyond its core sectors.
Risk Management: Diversifying into unrelated industries helps the Group mitigate risks associated
with economic downturns or industry-specific challenges. By operating in sectors such as power
generation, logistics, and shipping, the Group spreads its investment risks and ensures revenue
stability.
Strategic Partnerships and Joint Ventures: Collaborations with international partners, such as Gunze
Ltd. for Gunze United Ltd. and Petronas Lubricants International for United Lube Oil Ltd., demonstrate
the Group's strategy of leveraging external expertise and resources to enter new markets and enhance
competitiveness.
25
3.3.4 Family Tree
At present, the first generation of entrepreneurs went into advisory roles to onboard their offspring as directors.
The elder son of largest shareholder Hasan Mahmood Raja, Moinuddin Hasan Rashid is playing the role of
group chairman, alongside his existing position as managing director. Mr. Raja’s second son Nizamuddin Hasan
Rashid is also playing the role of the director. Although, Mr. Raja’s daughter is not actively involved in the
business.
Ahmed Ismail Hossain’s both children are involved in the business. Although the role of his daughter in the
business is not clear, his son Malik Talha Ismail Bari plays the role of the director in the group.
Another co-founder K.M.A. Shamim’s son is playing the role of the director in the group. However, his daughter
is not actively involved in the business. Co-founder Akhter Mahmud Rana had three sons and all of them were
actively involved in the business. Unfortunately, his elder son Nasiruddin Akhter Rashid deceased in 2023. At
present, his two other sons - Sharfuddin Akhter Rashid and Kutubuddin Akhter Rashid are playing the role of
directors in the group.
Figure 3.3.4: Family Tree of United Group.
26
The United family business can be shown through the perspective of the three-factor model by the following
manner:
(1) Any owners of publicly offered shares of any business concern of Ispahani Group can be placed in the 1st
part of the model.
(2) The Chief Operating Officer and Assistant General Manager (F & A) of United Power Generation &
Distribution Company Ltd., both are non-family management employees who work for the company and are
suitable for the 2nd part of the model.
(3) The Nominated Director in the United Power Generation & Distribution Company Ltd is a non-family owner
who works in the business and can be placed in the 3rd portion of the model.
(4) This information was not publicly available.
(5) The two daughters of Hasan Mahmood Raja, and K.M.A. Shamim are not actively involved in the business
either as employees or owners. They can be placed in the 5th part of the model.
(6) This data was not publicly available.
(7) All the founders and their sons can be placed in this section as they are owners, who are family members,
and who also work in the business.
Figure 3.3.5: Three-Factor Model Analysis of United Group.
27
The group belongs to the sibling partnership stage of the Life Cycle Analysis Model, as only the second
generation of the families are involved in the business.
The wealth of the company is well diversified. The group's wealth is spread across various industries such as
power, real estate, retail, manufacturing, healthcare, education, etc.
The company is in the growth stage as the group is still looking to expand its business in different sectors.
All the shareholding positions of the United Group are owned by the family members of the four co-founders,
which makes it a family-managed business.
Figure 3.3.6: Life Cycle Analysis of United Group.
28
3.4 ACI Group
Imperial Chemical Industries, a British multinational established a Branch in the then East Pakistan, which was
converted into a company after liberation, named ICI Bangladesh Manufacturers Limited. In 1992 ICI divested
its investment in Bangladesh to the Management, when its name was changed to Advanced Chemical Industries
(ACI) Limited. ACI Limited, commonly known as ACI Group, is a leading conglomerate in Bangladesh with a rich
history of contributing to the country's economic development. Established in 1968 as a subsidiary of Imperial
Chemical Industries (ICI), a British multinational, ACI Group has evolved into a diversified business entity
spanning various sectors.
ACI Limited began its journey with a mission to promote the industrial and agricultural sectors of Bangladesh.
Initially focused on pharmaceuticals and chemicals, the company played a crucial role in addressing the
country's needs for essential products. ACI's pharmaceutical division, ACI Limited Pharmaceuticals, has become
one of the largest and most respected pharmaceutical companies in Bangladesh. The company is renowned for
producing a wide range of high-quality pharmaceuticals, contributing significantly to the healthcare sector.
Over the years, ACI Group diversified its operations into multiple sectors, including agriculture, consumer
brands, logistics, and information technology. The company's commitment to innovation and sustainability has
driven its expansion and success in various industries. ACI's agriculture division focuses on modernizing farming
practices, providing farmers with advanced technology, seeds, and agrochemicals. The consumer brands
division offers a diverse range of products, including home care, personal care, and food items, catering to the
needs of consumers across the country.
Today, ACI Group stands as a dynamic conglomerate, playing a pivotal role in the economic landscape of
Bangladesh. With a commitment to excellence, innovation, and societal well-being, ACI continues to shape the
future of industries across the nation.
1968: ACI Limited is established as a subsidiary of Imperial Chemical Industries (ICI), focusing on the industrial
and agricultural sectors.
1973: ACI starts its journey in the pharmaceutical sector, marking the beginning of its presence in the
healthcare industry.
1976: ACI introduces the first locally produced bulk drug, contributing to the growth of the pharmaceutical
sector in Bangladesh.
29
1996: The company establishes the Crop Care division, entering the agriculture sector with a focus on
modernizing farming practices.
2000: Creative Communication Ltd. was established as an integrated marketing and advertising agency.
2004: ACI Salt Limited was incorporated with the objective to provide 100% edible salt for human consumption
by using modern vacuum evaporation process technology.
2007: ACI Motors Limited was established, focusing on providing advanced agricultural and construction
machinery.
2008: ACI Logistics was established, venturing into retail chain with brand name Shwapno.
2008: ACI Pure Flower Ltd was established later becoming one of the largest flour producing companies in
Bangladesh.
2009: Premiaflex Plastics Limited was established as a growth-oriented company, specializing in the
manufacture of flexible packaging.
2012: ACI Edible Oils Limited has started its journey in the marketing of consumer pack edible oils under the
well-known household brands like ACI Nutrilife, and ACI Pure.
2013: ACI HealthCare Limited was established with the objective of manufacturing and marketing
pharmaceutical products for regulated markets, especially for the USA.
Figure 3.4.2: Key landmark achievements of ACI Group.
30
The ACI Group stands apart with its meticulous approach to corporate diversification. Their expansion, unlike
some peers, focuses heavily on related diversification, strategically building upon their core strengths. However,
they haven't shied away from strategic ventures in unrelated sectors, showcasing a nuanced understanding of
market opportunities.
Backward Integration: Recognizing the importance of controlling quality and costs, ACI Group
prioritized backward integration. ACI Agribusinesses ensures supply of raw materials like livestock and
fish for their food processing ventures, while ACI Formulations Ltd. manufactures chemicals for
pharmaceutical production.
Horizontal Integration: To strengthen market position and brand presence, ACI Group strategically
expanded within existing sectors. ACI Consumer Brands encompasses household staples like edible
oils, salt, and flour, while ACI Pharmaceuticals boasts a diverse portfolio of medicines.
2. Unrelated Ventures
Strategic Collaborations: ACI Group identified opportunities in unrelated sectors through strategic
partnerships. The joint venture with Colgate-Palmolive expands their consumer goods reach, while
their stake in The Business Standard newspaper brings media diversification.
Market Opportunities: The group isn't averse to exploring lucrative, unrelated sectors. ACI Motors’
venture into motorcycle distribution and musical instruments under the brand name Yamaha
demonstrate their opportunistic approach.
3.4.4 Family Tree
Mr. Anis Ud Dowla, Chairman of ACI group, is also the President of the Bangladesh Seed Association, Chairman
of Pioneer Insurance Company Limited, and Director of the Credit Rating Agency of Bangladesh. He is also a
member of the Board of Trustees of the Independent University of Bangladesh and the President of the
Bangladesh Association of Publicly Listed Companies. His wife Najma Dowla was the former director of the
group. After graduation in Fine Arts in Graphics Design from San Jose, California, USA, Susmita Anis, Daughter
of Anis Ud Dowla, is inducted as the director of the group. Dr. Arif Dowla, Son of Anis Ud Dowla, is currently
managing director of the group. He obtained Ph.D in Mathematics from the University of California, USA.
Figure 3.4.4: Family Tree of ACI Group.

31
The Dowla family business can be shown through the perspective of the three-circle model by the following
manner:
1. Any owners of publicly offered shares of ACI Limited can be placed in the 1st part of the model who isn’t
part of the family or employee such as, owners of publicly offered shares of ACI foundation, ICB, ICB unit
fund, Shanta Holdings Limited.
2. The CFO, the company secretary the Head of Internal Audit and Compliance are some of the management
employees who do not own shares or are not part of the family.
3. This data was not publicly available.
4. There was no publicly available information regarding this.
5. Anis Ud Dowla’s daughter-in-law is not an owner or employee of ACI Limited.
7. Anis Ud Dowla, his one son, and one daughter are owners who work in the business.
Figure 3.4.5: Three-Factor Model Analysis of ACI Group.
32
ACI group has diversified wealth group of investment in multiple sectors including pharmaceuticals, Logistics,
Foods, Motors, Edible Oil, Chemical, Communication, Biotech, Communication, and technologies etc. In
product life cycle ACI limited remains on Maturity stage where most of its market are saturated. Some posts in
top positions are within family members but the majority are held by non-family members making it as a Family
monitored. The top position posts are limited among the family members comprised of it as a sibling
Partnership.
Figure 3.4.6: Life Cycle Analysis of ACI Group.
33
3.5 Akij Group
In early 1940 Akij Group was established by Late Sheikh Akijuddin and later he involved himself into
manufacturing handmade cigarettes (BIRI) & Jute business in 1950. In 1972, Sheikh Akijuddin had accumulated
substantial capital for investment and formed the Akij Group, which became one of the leading entrepreneurial
leaders in Bangladesh. Akij group exemplifies the transformative journey from poverty to success. The company
originated from humble beginnings and evolved into a diversified business entity through strategic
entrepreneurship and hard work.
Akij, born into poverty, faced childhood hardships and, unable to attend school due to financial constraints,
embarked on a journey to find ways to support his family. At the age of 12, he ventured into small jobs in
Calcutta, gradually engaging in fruit and vegetable trading. Recognizing the demand for tobacco, especially
biris, in East Pakistan, Akij entered the biri business. Through innovative strategies, such as differentiating his
products in terms of quality, fragrance, and price, he established the popularity of "Akij Biri." As demand grew,
Akij expanded into various sectors, including rice, obtaining a tobacco license, and venturing into the profitable
jute business. The company's workforce expanded, and by 1960, Akij's biri production reached a remarkable 5
million per day.
In response to import restrictions in 1965, Akij demonstrated adaptability by initiating the production of paper
biris. The company's resilience was further tested during the liberation war in 1971, where Akij seized
opportunities arising from the departure of traders, especially Hindu businessmen, to acquire products at low
prices. After the war, Akij sold the acquired products at a substantial profit, marking a pivotal moment in the
company's growth. This success propelled Akij Group into further business ventures, showcasing its ability to
thrive despite challenges and state incapacity.
Today, Akij Group stands as a testament to entrepreneurship, hard work, and adaptability, with a diverse
portfolio encompassing biri manufacturing, agriculture, jute processing, and more. The company's journey
reflects a remarkable transformation from a micro-business to a conglomerate, contributing significantly to the
economic landscape of Bangladesh.
1950: Akij Group formally established, venturing into handmade cigarettes (biri) and jute production.
1974: Akij Printing and Packaging Limited founded, entering the printing and packaging sector.
1992: Akij Match Factory Ltd. established, entering the match production industry.
1997: Akij Particle and Board Mills Ltd. founded, marking entry into the wood and board industry.
1998: Akij Textile Mills Ltd. established, venturing into the textile manufacturing industry.
34
2002: Akij Cement Factory Ltd. established, pioneering the use of VRM technology in Bangladesh's cement
sector.
2006: Akij Food & Beverages Ltd. (Akij Venture Ltd.) launched expanding food processing operations.
2010: Akij Shipping Line Ltd. established, marking entry into the shipping industry.
2012: Akij Ceramics Ltd. founded, venturing into the ceramics industry.
2015: Akij Plastics Ltd. launched, entering the plastics manufacturing industry.
2016: Akij Flour Mills Ltd. was established, marking entry into the food processing industry.
2017: ROSA Brand under Akij Bathware Ltd. started its journey.
2020: Akij Group expanded to 45 Strategic Business Units (SBUs) under 5 major companies.
2021: Akij Takaful Life Insurance PLC was established.
Akij Group has 5 parent companies and among them Akij Venture Ltd. (AVL) one of the largest industrial
conglomerates in Bangladesh. Akij Venture Ltd. includes - Akij Food & Beverages Ltd. , Akij Takaful Life
Insurance PLC, Akij Bicycle, Akij Electricals, Amanatul Monowara Prokashoni, Akij Healthcare & Hygiene, Akij
Dairy, Adhunik Paper Mills, Amanatul Monowara School, Akij Agro Processing Ltd., Sazmin Traders Ltd. Akij Agro
Wellness, Akij Fisheries, Akij Exim Ltd, etc.
Another parent company Akij Bashir Group includes- Janata Jute Mills Ltd, Sadat Jute Industries Ltd., Akij
Bathware Ltd. (ROSA), Akij Biax Films Ltd., Akij Steel Mills Ltd., Akij Polymer Industries Ltd, Bahadurpur Tea
Estates, etc.
Figure 3.5.2: Key landmark achievements of Akij Group.
35
Akij Group has woven a dynamic and diverse portfolio through its carefully crafted corporate diversification
strategy, encompassing both related and unrelated ventures. Their path to success showcases a blend of
calculated moves within familiar territories and adventurous leaps into new arenas.
Conglomeration Within Industries: Akij Group strategically expanded within existing sectors,
solidifying their market position and creating synergies. Akij Food & Beverage Ltd. encompasses
brands like Speed and Mojo, while Akij Textile Mills produces yarn and garments, showcasing
horizontal integration.
Backward Integration: Recognizing the importance of controlling quality and costs, Akij Group
ventured into upstream operations. Akij Printing and Packages Ltd. manufactures packaging materials
for their consumer goods.
Market Opportunities: Akij Group identified and capitalized on lucrative opportunities
in new sectors. Their foray into real estate with Akij City Center demonstrates their
opportunistic approach.
Strategic Partnerships: Recognizing the benefits of collaboration, Akij Group partnered
with established players in unrelated sectors. Their joint venture with Singapore Press
Holdings for a newspaper exemplifies this strategy.
3.5.4 Family Tree
Sheikh Akijuddin is the founder of the group. He has three sons and two daughters from his first marriage, with
Sakina Khatun, two sons and one daughter from his second marriage, with Feroza Begum, and five sons and two
daughters from his third marriage, with Monowara Begum. Nine out of ten sons of Akij are actively involved in
the family business, whereas none of his five daughters are actively involved in the business although they are
directors in the group. Interestingly, the stepbrothers collaborate in managing the business; nevertheless, their
responsibilities are divided: the sons from Akij‘s first two wives supervise the Khulna businesses, whereas the
sons of his third wife run the Dhaka businesses where Sheikh Nasiruddin is the Chairman, Sheikh Bashir Uddin is
the Managing Director and Sheikh Jamil Uddin is the Corporate Director of the group. Akij‘s daughters and one
son who is a doctor only have shareholdings in the business and are directors of different Business Units. They
are not actively involved in running any business.
36
Figure 3.5.4: Family Tree of Akij Group.
The Akij family business can be shown through the perspective of the three-circle model in the following
manner.
1. Any owners of publicly offered shares of any Strategic Business Units of Akij Group.
2. Any employee who is not a part of the family is in this circle.
3. No data was available regarding non-family owners in Akij Group who work in the business.
4. Five daughters and one son of Akij Uddin own shares but do not work in the business.
5. There is no publicly available information regarding family members who are not owner and who do not
work in the business.
6. There is no publicly available information regarding family members who works in the business but do not
own any share.
7. Akijuddin’s seven sons are owners who work in the business of Akij Group and can be put in the 7th portion
of the model.
37
Figure 3.5.5: Three-Factor Model Analysis of Akij Group.
Akij group has operations and investment in 23 sectors including tobacco, food and beverages, steel mills, jute,
bakery, ceramics, textile, cement, information flour mills etc. suggesting it as a diversified wealth group. Thus,
we can put Akij group in the growth stage. Their management is predominantly family managed. All the posts
on the ownership position are limited to brothers and sisters making it as a sibling’s partnership.
Figure 3.5.6: Life Cycle Analysis of Akij Group.
38
3.6 BEXIMCO Group
The Bangladesh Export Import Company (BEXIMCO) Group, one of Bangladesh's top conglomerates, has
established itself as a brand icon in pharmaceuticals, ceramics, textiles, and construction. Founded in 1956 as a
jute mill by Fazlur Rahman, a prominent politician, the business evolved under his sons Sohail F. Rahman and
Salman F. Rahman into a successful pharmaceutical company and a leading conglomerate.
In 1972, BEXIMCO was founded, initially engaging in drug import and export. The pharmaceutical venture,
BEXIMCO Pharma Ltd. (BPL), quickly gained success by importing drugs and later manufacturing its own
products. The company became a major player in the pharmaceutical industry, exporting to 45 countries. The
jute division, reclaimed in 1978, expanded into multiple companies, contributing to a total annual turnover of
over $20 million. The Rahman brothers demonstrated resilience and adaptability in navigating challenges.
The pharmaceutical industry in Bangladesh faced competition from foreign companies initially, but local
production flourished after regulatory changes. BEXIMCO Pharma emerged as one of the top three
pharmaceutical companies, competing with both local and foreign counterparts. BEXIMCO Pharma, listed on
London's Alternative Investment Exchange, held a 15 percent share in the domestic market by 2012, competing
with multinational pharmaceutical giants. The company's success reflects its ability to adapt to changing market
conditions and its significant contribution to Bangladesh's pharmaceutical landscape.
1956: Fazlur Rahman established the Group as a jute mill.
1972: Beximco Group was founded by brothers A.S.F. Rahman and Salman F. Rahman, initially focusing on
commodities trading.
1976: Beximco Pharmaceuticals established, initially producing under licenses from Bayer AG and Upjohn Inc.
1983: Beximco Computers Ltd. (BCL) is established, became one of the leaders in the growing IT market
providing a total solution to its customer needs.
1984: Beximco Engineering Limited is established to provide a wide range of services and solutions to various
sectors, including power, oil and gas, infrastructure, industrial, and environmental.
1994: Launches Beximco Synthetics, venturing into yarn manufacturing.
1995: Bextex Ltd. is established with state-of-the-art composite knit fabric production mill.
1998: Shinepukur Ceramics established, marking Beximco's foray into the ceramics industry.
2003: Beximco Communications launches, entering the sector.
39
2004: Beximco launches apparel brand “Yellow”
2005: Beximco Pharmaceuticals becomes the first Bangladeshi company listed on the London Stock Exchange
(AIM).
2009: Beximco Petroleum Limited is established to ensure energy security to the nation by processing fuels
locally
2010: Beximco acquires stakes in IFIC Bank and Unique Hotels & Resorts, diversifying its holdings.
2014: Beximco inaugurated the world's largest single-unit denim fabric dyeing factory.
2019: Beximco acquires Appollo Hospitals Dhaka, entering the hospital sector.
2023: Beximco launches Teesta Solar Limited.
Figure 3.6.2: Key landmark achievements of Beximco Group.
BEXIMCO has built an impressive empire through a well-orchestrated corporate diversification strategy, skillfully
blending related and unrelated diversification. Their journey showcases a balanced approach, leveraging core
strengths while also venturing into promising new territories.
Backward Integration: Recognizing the importance of controlling quality and costs, BEXIMCO
strategically ventured upstream. Owning textile mills ensures a steady supply of high-quality fabric for
their garment export business.
Forward Integration: BEXIMCO pursued forward integration to reach customers directly. Establishing
retail outlets like Yellow for their garment products exemplifies this move.
Horizontal Integration: BEXIMCO expanded within existing sectors to strengthen their market
position. Merging four textile units under BEXIMCO Textiles is a recent example of this horizontal
consolidation.
Market Opportunities: BEXIMCO identified and capitalized on lucrative opportunities in new sectors.
Their foray into real estate and infrastructure demonstrates their opportunistic approach.
Strategic Partnerships: BEXIMCO recognized the benefits of collaboration. Their partnerships with
companies like Intertek for quality assurance in the PPE sector showcase this strategy.
40
3.6.4 Family Tree
Fazlur Rahman is the founder of the group. The founder ‘s eldest son, Sohail F Rahman, is the current Chairman
of the Group. Besides serving the family business, Sohail holds prominent positions in various bank and
prominent firms. He is the Chairman of IFIC Bank Ltd, the Director of Pubali Bank, the Director of the Industrial
Promotion and Development Company. Sohail ‘s son, Shahriar, graduated from England and joined the family
business as a director. At present he’s advisor to the board. The founder ‘s youngest son, Salman F Rahman, is
Vice Chairman of the Group and a well- known business personnel of the country. He is the founder of the
Bangladesh Enterprise Institute, and President of several associations, such as the MCCI, FBCCI, the Bangladesh
Textile Mills Association, the Bangladesh Association of Pharmaceutical Industries, and the (SAARC) Chambers
of Commerce and Industry. Salman ‘s only son, Shayan, joined the family business as a director after graduation
from a university in Britain. At present he’s also advisor to the board of Beximco Group.
Figure 3.6.4: Family Tree of BEXIMCO Group.
41
The Rahman family business can be shown through the perspective of the three-circle model by the following
manner:
1. Any owners of publicly offered shares of Beximco Limited can be placed here who aren’t part of the family
or an employee.
2. The CEO of textile division, the group director of Beximco, the CEO of Real Estate & Fisheries Division, the
COO of Textile Division, the CFO and the Head of Internal Audit are part of the management team but do
not own shares or are part of the family.
3. The executive director and company secretary is an employee and owns shares as well.
5. Fazlur Rahman’s wife and his granddaughter all fall in this group.
6. Fazlur Rahman’s two grandsons are advisors to the group.
7. Sohail F Rahman is the chairman of the group and Salman F Rahman is the vice chairman.
Figure 3.6.5: Three-Factor Model Analysis of BEXIMCO Group.
42
BEXIMCO group has a well-diversified wealth group of operation and investment of almost 11 sectors.
The business is expanding into various sectors like media, communication, power and energy, suggesting it is in
a growth stage.
The business is mainly family monitored as the upper positions of the business are occupied by the people
outside of the family and the family members are in the Chairman and advisory positions.
The Management is comprised of sibling’s partnership.
Figure 3.6.6: Life Cycle Analysis of BEXIMCO Group.
43
3.7 A.K. Khan & Company
A.K. Khan & Company is one of Bangladesh's oldest and most influential conglomerates, with a fascinating
history and diverse portfolio. It was founded in 1945 by the visionary Abul Kasem Khan in Chittagong. Abul
Kasem Khan, a young entrepreneur, saw immense potential in Chittagong, then the main port of East Pakistan.
He started with a small trading firm and quickly expanded into jute and other sectors, driven by his ambition
and business acumen. Since then, it has grown into a diversified conglomerate.
1945: Inception of A.K. Khan & Company in Chittagong.
1945-1958: Rapid Expansion: Within a decade, AKK diversifies into several sectors, establishing a diverse
portfolio that includes shipping, textiles, jute, plywood, and heavy electrical goods.
1979: AKK establishes Bengal Fisheries Ltd., marking its entry into the deep-sea fishing industry.
1989: AKK establishes Total Thread, a joint venture with Coats Bangladesh Ltd., marking its foray into the
garment accessories industry.
2013: The company establishes CEAT AKKHAN Ltd., a joint venture with CEAT Tyres of India, and AKK-Union
(Bangladesh) Limited, a partnership with Union Assurance of Thailand.
2016: Inaugurated the development work of AKKEZ (A.K. Khan Economic Zone)
2018: AKK obtains permission for the development of an Inland Container Depot (ICD) and Container Freight
Station (CFS)
2020: AKK expands its logistics and distribution services to cater to the growing demand for online deliveries.
Figure 3.7.2: Key landmark achievements of A.K. Khan & Company.
44
A.K. Khan & Company (AKK) has built a diversified empire in Bangladesh, mastering the art of both related and
unrelated diversification. Their strategy offers valuable insights for businesses seeking growth and resilience.
Leveraging core competencies: AKK's initial foray into shipping and logistics naturally complemented
their trading activities. Later, diversifying into jute and textile manufacturing capitalized on their
established supply chains and market knowledge. This related diversification minimized risks and
leveraged existing resources.
Vertical integration: Recognizing the benefits of controlling the entire value chain, AKK integrated
upstream by establishing Chittagong Textile Mills and jute mills. This ensured quality control, reduced
costs, and strengthened their competitive edge.
Identifying market opportunities: AKK ventured into the telecom sector through a joint venture with
Ceylinko of Sri Lanka. This capitalized on the burgeoning demand for mobile communication in
Bangladesh, a sector unrelated to their traditional businesses.
Strategic partnerships: Entering unrelated industries like deep-sea fishing through a joint venture
with Taiyo (Maruha Nichiro) minimized entry barriers and provided access to expertise and technology.
This approach mitigated risks and facilitated rapid growth in new markets.
Balancing risk and reward: By diversifying into unrelated sectors, AKK spread their risk base. A
downturn in one industry (e.g., jute) wouldn't necessarily impact others (e.g., telecommunications),
ensuring financial stability and resilience.
45
3.7.4 Family Tree
Mr. A.K. Khan passed away on 31 March 1991. He had five sons and four daughters. After the death of Mr. Khan,
his eldest son, Mr. A. M. Zahiruddin Khan took over the management of A K Khan & Company. In 1997, he
launched AKTEL, a joint venture telecommunication service with Telekom Malaysia. He was the Chairman of the
group from 1991 to 2005. Mr. Zahiruddin passed away in 2005 and was succeeded by Mr. A. K. Shamsuddin
Khan, the second son of Mr. A.K. Khan. He is actively involved in the business and was the Chairman of the
group from 2005 to 2015 and is currently the Chairman of Bengal Fisheries Ltd. (a concern of the group). After
his retirement as the Chairmen, Ms. Zebun Nahar Islam, Mr. A.K. Khan’s eldest daughter became the Chairmen
(2015-2023), the business. Khan’s third son, Salahuddin Khan is currently the Chairman of Coats (Bangladesh)
Ltd., Chairman of A.K. Khan Jute Mills, and Director of Bengal Fisheries Ltd. Mr. Sadruddin Khan, the fourth son
of A.K. Khan, is currently a Director of the Group. A.K. Khan’s fifth son, Ziauddin Khan is currently the Chairman
of the A.K. Khan & Company Ltd. Yasmin Khan Kabir, Khan’s second daughter, was the ex-director of the group
and holds a significant portion of the ownership. A.K. Khan’s other two daughters, Latifa Khanam and Shamima
Khanam, are shareholders of the family‘s companies and trustees of the A.K. Khan Foundation, but they do not
hold any directorships. In the third generation, Zahir Khan‘s eldest son, Abul Kashem Khan Shejad joined the
business in 1996, and he is currently the Vice Chairman of the group and Managing Director of A.K. Khan
Telecom Ltd. Mr. Shamsuddin’s daughter, Sherfenaz Khan, is the Chief Marketing Officer and Coordinator of
A.K. Khan Plywood Co. All three of Salauddin‘s sons are involved in the family business. His eldest son, Mostafa
Azim Khan, and second son, Murtaza Rafi Khan, are responsible for overseeing A.K. Khan Water Health (BD) Ltd.,
and the third son, Mujtaba Ali Khan, is the Chief Procurement Officer of the Group. Mr. Ziauddin’s offsprings are
involved in their own business. The children of Sadruddin are also not directly part of the family business.
Figure 3.7.4: Family Tree of A.K. Khan & Company.

46
The A.K. Khan & Company Ltd. family business can be shown through the perspective of the three-circle model
in the following manner:
1. Any owners of publicly offered shares of A.K. Khan & Company Ltd. can be placed in the 1st portion of the
model.
2. The Group CEO of A. K. Khan & Company Ltd. is a non-family management employee who works for the
company and can be placed in the 2nd portion of the model.
4. All the daughters of A.K. Khan own shares but do not work in the business.
5. There are some offsprings of Shamsuddin, Sadruddin and Ziauddin who are not involved in the business
either as employees or owners.
6. Four grandchildren of Mr. A.K. Khan, works in the business but does not hold any shares.
7. Three sons and one grandson of A.K. Khan are owners who work in the business of and can be placed 7th
position in the model.
Figure 3.7.5: Three-Factor Model Analysis of A.K. Khan & Company.
47
The Company belongs to the cousin consortium position of the family cycle as the third generation of the family
members are involved in the Business. The sons and daughters of A.K. Khan are the majority owners of the
business. The ownership structure is well-defined and simplified. The wealth of the company is well diversified.
The family's wealth is spread across various industries such as Jute, Finance, Telecom, Hotel and Resort, Textiles,
Real Estate, and many more. The company is at a maturity stage with stability in terms of profitability. The
company is mainly family-monitored as apart from some grandchildren of A.K. Khan, the majority of the upper
management position is occupied by those outside of the family and the sons and daughters of A.K. Khan
primarily serve in a monitoring or oversight role as Directors.
Figure 3.7.6: Life Cycle Analysis of A. K. Khan & Company.
48
3.8 Anwar Group
Anwar Group of Industries is one of the largest and oldest Bangladeshi conglomerates. The family business was
launched in 1834 as a hides and cloth business by British Indian entrepreneur Laik Mohammad, but the Anwar
Group as known today came to be under the leadership of Anwar Hossain. Now it consists of 18 subsidiaries
that are servicing consumer goods, steel, cement, textile, finance, and automotive industry in Bangladesh. Some
of the well-known businesses of the Group include – Anwar Cement Ltd, Anwar Galvanizing Ltd, Anwar Textile
Ltd, Anwar Ispat Ltd, and AG Automobiles Ltd.
Laik Mohammad, the founder of the family business started with a hides and cloth business and later moved to
comb and button business. Following his death, Rahim Baksh, his son, oversaw the company. Because Rahim
had grown up watching his father conduct business, he was able to handle the company effectively and opened
new fabric stores. After Mr. Rahim’s death, Mr. Nazir, Rahim's eldest son, took over the fabric store. Later, Anwar
Hossain (Rahim’s third son) ultimately took the helm of the family business. Anwar expanded his father's fabric
business, which he renamed Anwar Cloth Store. Over the years he expanded his business by buying several
other stores, establishing a small cable industry in 1954 and a Printing mill in 1956. After the war in 1971, he
restarted his silk mills. He founded Anwar Galvanizing Limited in 1985. Anwar Group continued to expand
under Anwar Hossain and the group ventured into Automobile, Finance, Cement, Steel, and various other
industries.
1834: Laik Mohammad, grandfather of Anwar Hossain started the business with cloth and hide trades.
1870: Rahim Bakhsh, father of Anwar Hossain Venturing into Button and Comb Manufacturing Network.
1946: Anwar Hossain established the Anwar Brand through the creation of Anwar Cloth Store.
1968: Manwar Industries became the first stainless steel cutlery manufacturer.
1970: Anwar Silk Mills Ltd. became a transformation in the Silk Industry.
1981: Khaled Iron & RUMA Steel Mills Ltd. helped shaping structural excellence.
1983: City Bank became the first private bank in Bangladesh.
1983: Anwar Textiles became a weaving excellence in the textile domain.
1995: Anwar Galvanizing Ltd. became the largest manufacturer of galvanized items.
1996: Anwar Jute Spinning Mills Ltd. revitalized the Jute Industry.
2001: Establishing Anwar Landmark and AG Automobiles Limited.
49
2004: Anwar Ispat Limited forged progress in the Steel Industry
2005: Entered PVC industry with A1 Polymer
2008: Introduced Ford, A.G. Automobiles brought automotive excellence
2013: Established Modhumoti Bank Limited
2021: Launched Anwar Denim Ltd. and Anwar Technologies
2022: Launched Toledo Motors Ltd. introducing Jeep in Bangladesh.
Figure 3.8.2: Key landmark achievements of Anwar Group.
Anwar Group's diverse portfolio demonstrates a successful approach to corporate diversification. Here's an
analysis of their strategies in both related and unrelated industries:
Leveraging core competencies: Anwar Group strategically entered industries adjacent to their
existing expertise. Their ventures in cement, steel, and galvanized iron all fall under the umbrella of
construction materials, where they already possessed knowledge and distribution networks. This
synergy minimized risks and maximized existing resources.
Vertical integration: The group integrated upstream and downstream processes in several sectors.
Owning silk mills in addition to dyeing improved control over quality and costs.
Market expansion: While focusing on construction materials in Bangladesh, the group expanded into
related sectors like textiles and food processing in Africa and the Middle East. This diversified their
revenue streams and mitigated risks associated with any single market.
Strategic partnerships: Entering unrelated industries like automobiles through partnerships with
established brands like Ford minimized entry barriers and leveraged existing expertise. This enabled
Anwar Group to gain a foothold in a new market without needing to develop the entire infrastructure
from scratch.
50
Market opportunities: The group identified promising but unrelated sectors like financial services and
saw an opportunity to capitalize on Bangladesh's growing need for diverse financial products. Their
entry into banking and insurance expanded their customer base and offered new avenues for growth.
Risk mitigation: By diversifying into unrelated industries, Anwar Group spread their risk base. A
downturn in one sector (e.g., construction) wouldn't necessarily impact others (e.g., financial services),
providing stability and resilience.
Overall, Anwar Group's diversification strategy balances the benefits of both related and unrelated
ventures. Their focus on leveraging core competencies, strategic partnerships, and identifying market
opportunities has played a key role in their success.
3.8.4 Family Tree
At present, Anwar Hossain’s three sons own shares and are actively involved in the family business. Although his
daughters are not actively involved in the business, they still hold shares in the business. Anwar Hossain was the
Chairman of the group till his death on 17 August 2021. After that, his eldest son, Manwar Hossain, who had
been the Managing Director of the company before the death of his father, replaced him as Chairman of Anwar
Group. Anwar’s second son, Hossain Mehmood is currently the Vice-Chairman of the group, and Hossain
Khaled, Anwar’s third son, is currently the Group Managing Director. Hossain Akhter, son of Nazir Hossain
(Anwar’s elder brother), who is also Anwar’s son-in-law, is currently the Executive Director of Anwar Group of
Industries. Manwar’s sons, Furkaan Hossain holds the position of Managing Director of Anwar Technologies and
Waeez Hossain is the Deputy Managing Director of the group. Faizah Mehmood, Hossain Mehmood’s daughter
is the Director of Textile Division of the group. The family tree is shown below for better understanding.
Figure 3.8.4: Family Tree of Anwar Group.

51
The Anwar Group family business can be shown through the perspective of the three-circle model in the
following manner:
1. Any owners of publicly offered shares of Anwar Group can be placed in the 1st portion of the model.
2. The Chief Financial Officer of Anwar Galvanizing Ltd. is a non-family management employee who works for
the company and can be placed in the 2nd portion of the model.
4. All the daughters of Anwar Hossain own shares but do not work in the business.
5. There are some 5th generation family members who are not involved in the business either as employees or
owners and can be placed in the 5th position.
6. Two grandsons and one granddaughter of Anwar Hossain work in the business but do not hold any shares.
7. Anwar Hossain’s spouse, his three sons, and one nephew are owners who work in the business of and can
be placed 7th portion in the model.
Figure 3.8.5: Three-Factor Model Analysis of Anwar Group.
52
The Company belongs to the cousin consortium position of the family cycle. Which means the family business
involves extended family members requiring more formalized structures.
The wealth of the company is well diversified. The family's wealth is spread across various industries such as
Consumer Goods, Finance, Cement, Steel, Textile, Real Estate and Automobile.
The company is at a growth stage with expansion strategy in automobiles and technology industries.
The company is mainly family managed as apart majority of the upper management position is occupied by
those inside of the family.
Figure 3.8.6: Life Cycle Analysis of Anwar Group.
53
3.9 Pran-RFL Group
Pran-RFL Group is one of the largest conglomerates in Bangladesh, with a presence in more than 145 countries.
The company is known for its diversified business portfolio, including food and beverage, plastic products, and
agricultural machinery. It was founded in 1981 by retired Major General Amjad Khan Chowdhury with RFL
(Rangpur Foundry Limited) - which has become one of the prominent plastic and agricultural machinery
products brands, and later in 1985, he founded PRAN (Programme for Rural Advancement Nationally) - which
has become one of the largest food and beverage brands in Bangladesh.
Amjad Khan Chowdhury was from a middle-class, educated family in the Natore district. He graduated from the
Pakistan Military Academy and then the Australian Staff College in 1954. He joined the Pakistan Army (Later
Bangladesh Army) in 1956. He was in the service until 1981. After his retirement, he founded RFL with a capital
of BDT 3 million (USD 0.14 million). He had to use his wife’s land and personal savings after finding the BDT
500,000 (USD 27,798) bank loan to be insufficient to start his business. RFL started off manufacturing cast iron
items such as water pumps and tube wells to guarantee clean drinking water and affordable irrigation systems
for the rural populace. In 1983, Amjad established a property development company named Property
Development Ltd which was later renamed the Real Estate and Housing Association of Bangladesh (REHAB)
which aimed to promote private sector real estate development in Bangladesh. In 1985, he established two
Agro-based products companies, Program for Rural Advancement Nationally (PRAN) and Agricultural Marketing
Company. At present, the PRAN-RFL Group contains two Groups, called PRAN-Group and RFL-Group.
Businesses operating under these groups contain several registered companies/businesses.
1980: Amjad Khan Chowdhury, a retired Major General, establishes Rangpur Foundry Ltd (RFL) to produce cast
iron irrigation pumps and tube wells, aiming to improve farming and access to water.
1981: PRAN (Programme for Rural Advancement Nationally) is founded with the goal of processing agricultural
products to extend shelf life and reduce waste. PRAN and RFL merge to form the PRAN-RFL Group.
1983: Established Property Development Limited, entering construction industry.
1986: PRAN launches contract farming initiatives, guaranteeing prices for farmers and securing a consistent
supply of raw materials.
1992: PRAN establishes its first food processing plant in Ghorashal, expanding its production capacity.
2003: RFL entered plastic industry with RFL Plastics Limited.
2016: PRAN's exports reach $10 billion, solidifying its position as a major exporter from Bangladesh.
2021: PRAN inaugurates river route exports to India, a new logistical milestone.
54
Figure 3.9.2: Key landmark achievements of Pran-RFL Group.
Pran-RFL Group has started its business with RFL which belonged to the iron industry. Now RFL is mainly known
for its plastic products. On the other hand, Pran started as a food processing business, and it is still related to
fast-moving consumer goods (FMCG) to this day. Pran-RFL employed both related and unrelated diversification
strategies to achieve its current conglomerate status. Let's delve into each approach:
Vertical integration: Both Pran and RFL have expanded upstream into industries such as Pran Dairy
Ltd, Pran Beverages Ltd, Banga Bakers Ltd, etc. (related to Pran) and Rangpur Metal Industries, RFL
Plastics Ltd, etc. (related to RFL).
Horizontal expansion: Within the food and beverage sector, PRAN has diversified into various
segments like juices, biscuits, snacks, and dairy products. This leverages existing brand recognition and
distribution channels.
Conglomerate diversification: Pran has ventured into unrelated industries like textile- Habiganj Textile
Limited, Chorka Textile Limited, and technology- Sylvian Technologies Limited. The group has ventured
into unrelated industries like logistics, and real estate. This strategy spreads risks, taps new growth
opportunities, and utilizes resources in different sectors.
55
3.9.4 Family Tree
PRAN-RFL Group emerged relatively recently, in the 1980s, and thus has only reached the second generation
into the business. Amjad Khan Chowdhury left four children, two of whom are actively involved in the business,
and two of them, though are shareholders of the business, are not involved in the business. Amjad’s wife, Sabiha
Amjad is actively involved in the business and occupies the position of Director in Agricultural Marketing Co.
Ltd, Rangpur Foundry Ltd, and Property Development Ltd. Amjad’s eldest son and eldest daughter, Azhar JK
Chowdhury, and Sheira Chowdhury, are shareholders of the business but do not occupy any position in the
business. Ahsan Khan Chowdhury, Amjad’s second son, became the Chairman of PRAN-RFL Group after his
father died in 2015. Amjad’s second daughter, Uzma Chowdhury, is actively involved in the business and
occupies the position of Director at Agricultural Marketing Co. Ltd, and Director of Finance at Rangpur Foundry
Ltd. The family tree is shown below for better understanding.
Figure 3.9.4: Family Tree of Pran-RFL Group.
The PRAN-RFL Group family business can be shown through the perspective of the three-circle model in the
following manner.
1. Any owner of publicly offered shares of Agricultural Marketing Co. Ltd and Rangpur Foundry Ltd can be
placed in the first position.
2. There are non-family, non-owner employees in upper management like the CFO of Agricultural Marketing
Co. Ltd and the CFO of Rangpur Foundry Ltd.
3. Two non-family owners in PRAN-RFL Group who work in the business are the Managing Director of
Agricultural Marketing Co. Ltd and the Managing Director of Rangpur Foundry Ltd.
4. One son and one daughter of Amjad Khan Chowdhury are shareholders of the business but do not occupy
any position in the business.
5. There are no family members who are not owners and are not involved in the business.
6. There are no family members who work in the business but are not owners.
7. Amjad Khan Chowdhury’s spouse, his one son and one daughter are owners who work in the business of
PRAN-RFL Group.
56
Figure 3.9.5: Three-Factor Model Analysis of Pran-RFL Group.
The Company belongs to the sibling partnership position of the family cycle. The son and daughter of Amjad
Khan Chowdhury are the majority owners of the business. The ownership structure well defined and is
simplified. The wealth of the company is well diversified. The family's wealth is spread across various industries
such as Fast-Moving Consumer Goods, Plastic, Electronics, Real Estate and many more. The company is at a
growing stage with the business being in an expansion phase, focusing on innovation, market presence, and
financial viability. The company is mainly family monitored as the majority of the upper management position is
occupied by those outside of the family and the family members are in a monitoring and oversight role as
Directors.
Figure 3.9.6: Life Cycle Analysis of Pran-RFL Group.

57
3.10 Rahimafrooz Group
Rahimafrooz (Bangladesh) Ltd. is one of the largest business groups in Bangladesh. It was founded in 1954 by
A. C. Abdur Rahim as a trading company in Chittagong. It currently consists of eight strategic business units and
several other affiliations. Rahimafrooz operates in three broad domains: automotive after-market, power and
energy, and retail chain. It sells tires, batteries, lubricants, emergency power products, diesel as well as gas
generators, lighting products, electrical accessories, solar systems, energy systems using compressed natural
gas, and power rectifiers.
A.C. Abdur Rahim, born on January 20, 1915, faced orphanhood at the age of seven and was subsequently
cared for by an uncle who employed him in his department store. Rahim later entered a partnership in a modest
tailoring and textile business in Calcutta. In the early 1940s, he initiated independent trading on a small scale.
After marrying in 1945, he relocated his family to Chittagong, East Bengal, following the partition of India in
1947. In 1950, with a capital of 200,000 Pakistani rupees ($42,000 as of 1950), he established a small trading
company. On April 15, 1954, Rahim officially incorporated the business as Rahimafrooz & Co, taking the name
from his eldest son, Afrooz Rahim. Initially, the company's focus was on garment retailing. But later the focus
shifted to power and energy systems.
1954: Incorporated by Mr. A.C. Abdur Rahim as a trading company in Chittagong.
1959: Became the sole distributor of Lucas Battery in Bangladesh
1978: Exclusive distributorship of Dunlop tyre
1985: Became the first producer of industrial batteries
1989: Launched Rahimafrooz Service Centre – first ever electronic engine diagnostic centre for vehicles
1993: Launched Rahimafrooz Instant Power Supply (IPS)
1994: Acquisition of Yuasa Batteries (Bangladesh) Ltd. and launched Excel Retreads
2001: Launched “Agora” – the first ever chain of retail supermarket in Bangladesh
2002: Launched Rahimafrooz Energy Services Ltd. (RESL) promoting distributed power
2008: Launched “Quikfill”- the first ever chain of branded CNG refueling stations in Bangladesh
2018: EPC Contract Signing of 35MW IPP Power Plant in Manikgonj, Bangladesh
58
Figure 3.10.2: Key landmark achievements of Rahimafrooz Group.
The Rahimafrooz Group has built a remarkable portfolio through strategic diversification. They expertly balance
related and unrelated diversification to navigate market dynamics and unlock growth opportunities.
Horizontal Diversification within Core Sectors: Expanding from tyre distribution to batteries,
lubricants, and power backup systems, leveraging existing expertise and distribution networks. Moving
beyond retail kerosene and LPG to power generation and distribution, building on their understanding
of energy solutions.
Vertical Integration: Manufacturing automotive batteries through Rahimafrooz Storage Power,
ensuring quality control and cost optimization.
Market Diversification: Entering the Indian market by setting up a manufacturing unit, capitalizing on
regional expertise and expanding reach.
Retail Expansion: Establishing superstore- Agora, entering the lucrative retail market and diversifying
revenue streams beyond core sectors.
59
3.10.4 Family Tree
Rahimafrooz Group emerged in the 1950s and has reached the third generation into the business. Abdur
Rahim’s three sons- Afroz, Feroz and Niaz are actively involved in the business while his two daughters- Talat and
Zeenat are homemakers and only have shareholding position in the group. Afroz Rahim, Abdur Rahim’s eldest
son, joined the business in 1972. He is currently the Chairman of the Rahimafrooz Group. Feroz Rahim, Abdur
Rahim’s second son, joined the business in 1976 and he is currently the Managing Director of the Group. Niaz
Rahim, Abdur Rahim’s third son, joined the business in 1983 and he has the position of Group Director. After
Abdur Rahim‘s death, his sons made their mother Ayesha a shareholder in the Group. The wives of Feroz and
Niaz, Feroza Rahim and Farzana Rahim, likewise are shareholders. Ayesha‘s brother Ismail and sister Zainab are
also involved in the Group. Mohamed Ismail is currently the Deputy Managing Director of the Group and Zainab
Moin is a shareholder of the Group. Abdur Rahim also included his sister-in-law Zainab‘s capable and educated
two sons, Munawar Moin and Mudassir Moin, in the family business. Currently they are serving as a Group
Director.
In the third generation, Afroz Rahim has three daughters- Nadia Afroz Rahim, Samia Afroz Rahim, and Fariha
Afroz Rahim. All of them are shareholders and Nadia is actively involved in the business as a Director. Feroz
Rahim has one daughter and two sons. Waiz Rahim and Hifza Rahim are shareholders, but they do not occupy
any position. But Fayez Rahim is an executive of the company. Niaz Rahim has two sons- Faraaz and Nawaz. Both
are shareholders but only Faraz A. Rahim is actively involved in the business as an Executive Director at
Rahimafrooz Batteries Ltd.
Figure 3.10.4: Family Tree of Rahimafrooz Group.
60
The Rahimafrooz Group family business can be shown through the perspective of the three-circle model in the
following manner:
1. None of the businesses of Rahimafrooz Group are publicly listed and the Group is 100 percent family owned.
So, there are no non-family owners who do not work in the business.
2. The CEO of the Group and the CFO of the Group are non-family management who work for the company
and can be placed in the 2nd position.
3. The Group is 100 percent family owned. So, there are no non-family owners who work in the business.
4. Abdur Rahim’s spouse, sister-in-law, two daughters, one daughter-in-law, two granddaughters, and one
grandson are shareholders of the business but do not work in the family business.
5. There are no family members who are not involved in the business either as owners or employees.
6. There are no family members who work in the business but do not hold any ownership position in the
business.
7. Family owners who work in the business of Rahimafrooz Group are – Abdur Rahim’s brother-in-law, Rahim’s
sons, his two nephews, his two grandsons and one granddaughter.
Figure 3.10.5: Three-Factor Model Analysis of Rahimafrooz Group.
61
The Company belongs to the cousin consortium position of the family cycle. Which means the family business
involves extended family members requiring more formalized structures.
The wealth of the company is partially diversified. The family's wealth is concentrated in similar industries such
as power and energy, automotive aftermarket such as tyres, lubricants etc.
According to our analysis, the group is at a declining stage with some of the companies of the group closing
due to declining performance.
The company is mainly family managed as the majority of the upper management position is occupied by those
inside of the family.
Figure 3.10.6: Life Cycle Analysis of Rahimafrooz Group.
62
Table 4.1: Corporate Diversification Strategy of Family Businesses
Family A.K. Khan Pran- Rahim

Square Ispahani United ACI Akij BEXIMCO Anwar
Busi.
Group Group
& Com. RFL afrooz
Industry Group Group Group Group Ltd. Group
Group Group
Healthcare
FMCG
RMG & Textile
Leather & Hide
Media &
Satellite
ICT
Plastic
Manufacturing
Agriculture &
Machinery
Shipping &
Logistics
Construction &
Real Estate
Power &
Energy
Education
Retail &
Trading
Hotel &
Tourism
Printing &
Packaging
Ceramics
Financial
Service
Jute Mill
Furniture &
8.01
6.94
Household
Item
Electrical &
Electronics
Steel
Automobile/
Equipment/
Bicycle
Notes: RMG & Textile = RMG, Textile, Garment Accessories, Spinning, Yarn, Silk. Healthcare = Pharmaceutical, Hospital, Medical Equipment.
Engineering = Heavy Electrical Machineries, Light Engineering Items. Shipping & Logistics = Shipping & Logistics, Supply chain, Land Port,
Inland Container Depot, Container Freight Station, Logistics and Distribution. Automobile/Equipment/Bicycle = Car & Motorcycle distribution,
Bicycle Manufacturing, Automobile Lubricant, Battery, Tyre, Vehicle engine diagnostic center. Furniture & Household Item = Furniture, Plywood,
Particle, Board, Cutlery, Household Items. Plastic = Polymer and plastic. Financial Service = Bank, Insurance, Brokerage Service, Securities. Steel
= Steel, Ispat. Construction & Real Estate = Real Estate, Cement, Building Materials, Construction Machine.
64
The family businesses that we have covered in this study dominate a wide range of industries in Bangladesh.
From Healthcare to Automobiles, they have their footprints in over 20 industrial sectors. Some are even the
pioneers of some industries. ACI Group, Akij Group, and A.K. Khan & Company Ltd. cover most of the industrial
sectors, followed by United Group, BEXIMCO Group, Anwar Group, and Pran-RFL Group.
Square Group, Ispahani Group, United Group, ACI Group, BEXIMCO Group, and Pran-RFL Group have
established their strong presence in the Healthcare Sector with their Pharmaceutical Companies, Hospitals, and
medical equipment. Whereas, Square Group, Ispahani Group, ACI Group, Akij Group, and Pran-RFL Group are
dominating the Fast-Moving Consumer Goods (FMCG) sector with their Toiletries, Food & Beverage, Tobacco,
and Tea businesses. Furthermore, seven out of ten of these family businesses also have a significant presence in
the biggest industry of the country - RMG & Textile. Table 4.1 gives us a clear view of the industry coverage of
the selected Family Businesses.
Table 4.2: Summary of three-factor model analysis of Family Businesses

Family A.K. Khan Pran- Rahim
Business Square Ispahani United ACI Akij BEXIMCO Anwar
Group
& Com. RFL afrooz
Analysis Group Group Group Group Group Group
Ltd. Group Group
(1) Are there any non-

family owners who do
Yes Yes Yes Yes No Yes Yes Yes Yes No
not work in the
business?

family management
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
who are also
employees?

family owners who Yes - Yes - No Yes - - Yes No
work in the business?
(4) Are there any

family owners not
- - - - Yes - Yes Yes Yes Yes
employed in the
business?
(5) Are there any

family members not
Yes Yes Yes Yes - Yes - - - -
involved in the
business?
(6) Are there any

family members who
- Yes - - - Yes Yes Yes - -
work in the business
but are not owners?
(7) Are there any

family owners who Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
work in the business?
(8) Is there any family

member who is the Yes - Yes Yes No No No Yes No No
CEO of the business?
(9) Is there any family

member who is the
Yes - Yes Yes No No No Yes No No
CEO and also has
ownership?
65
In the three-factor model analysis, we have found the answers to seven questions (Table 4.2) -
(1) Are there any non-family owners who do not work in the business? - Except for the Akij Group and
Rahimafrooz Group, all Family Businesses have non-family owners who do not work in the business, as they all
offer shares to the public.
(2) Are there any non-family management who are also employees? - All Family Businesses have non-family
management who are also employees.
(3) Are there any non-family owners who work in the business? - Square Group, United Group, BEXIMCO Group,
and Pran-RFL Group have non-family owners who work in the business. Akij Group and Rahimafrooz Group do
not have such owners.
(4) Are there any family owners who are not employed in the business? – 50% of the Family Businesses have
family owners who do not work in the business. The other 50% of the data was not available.
(5) Are there any family members not involved in the business? - Half of the Family Businesses showed that there
are some family members of their family not involved in the business either as employees or owners. The other
half of the data was not publicly available.
(6) Are there any family members who work in the business but are not owners? – According to our research,
four Family Businesses such as - Ispahani Group, BEXIMCO Group, A.K. Khan & Com. Ltd., and Anwar Group
have family members who work in the business but are not owners. They are basically the third or fourth-
generation family members. Other company’s data was not available.
(7) Are there any family owners who work in the business? – All the family businesses have family owners who
work in the business.
Additionally, we added two more questions -
(8) Is there any family member who is the CEO of the business? – Square Group, United Group, ACI Group, and
Anwar Group have CEOs who are also family members. Others have CEOs from outside the family.
(9) Is there any family member who is the CEO and has ownership? – The CEOs of Square Group, United Group,
ACI Group, and Anwar Group are family members who also have ownership.
66
Table 4.3: Timeline Summary of Family Businesses
1830s 1870s 1900s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s
Inception
Related
Diversification
Unrelated
Diversification
Core Business
RMG & Textile
Healthcare
Power &
Energy
Table 4.3 gives us a quick view of which period the family businesses were established; moved for
related/unrelated diversification; when they started their core business; and which major industry they cover
among - RMG & Textile, Power & Energy, and Healthcare.
The table summarizes that four of the Family Businesses - Square, Akij, BEXIMCO, and Rahimafrooz were
established in the 1950s. United, ACI, and Pran-RFL were established after them in the 1960s, 1970s, and 1980s
consecutively. The oldest Family Firm among all is the Anwar Group, established in the 1830s. Ispahani and A.K.
Khan come next among the oldest Family Firms. It is an interesting fact that not all companies started their core
business at the time of Inception. United, ACI, Pran-RFL, BEXIMCO, and Anwar Group established their core
businesses decades after their establishment.
The majority of the firms went for related diversification after the 1970s and all firms went for unrelated
diversification after the 1950s. The 1990s and 2000s decades saw a massive number of unrelated diversification
strategies taken by the Family Businesses.
Our analysis also shows that in the RMG & Textile Industry, six of the Family Businesses have established a strong
presence. They are – Anwar, Ispahani, A.K. Khan, BEXIMCO, Square, and Akij Group. In the Healthcare Industry,
Square, United, ACI, BEXIMCO, and Ispahani Group are not only ensuring their presence, but they are among the
Industry Leaders. In the Power & Energy Industry, United Group, Rahimafrooz Group, and BEXIMCO Group have
established their benchmark.
67
Table 4.4: Lifecycle Cycle Analysis of the Family Businesses
Table 4.4 gives us the overall summary of which business belongs to which cycle in the Life Cycle Analysis
Model. In the Wealth Cycle segment, all the family businesses are in the “Diversified” stage, except the
Rahimafrooz Group which belongs to the “Partially Diversified” stage.
In the Business Cycle segment, Square Group, United Group, BEXIMCO Group, Akij Group, Anwar Group, and
Pran-RFL Group belong to the “Growth” stage. Ispahani Group, ACI Group, and A.K. Khan & Company Ltd.
belong to the “Maturity” stage. Only the Rahimafrooz Group belongs to the “Decline Stage”.
In the Family Cycle segment, BEXIMCO, United, Akij, ACI, and Pran-RFL Group belong to the “Sibling
Partnership” stage. On the other hand, Square, Ispahani, Anwar A.K. Khan & Company, and Rahimafrooz Group
belong to the “Cousin Consortium” Stage.
In the Management Cycle segment, Square, Ispahani, Rahimafrooz, United, Akij, and Anwar Group belong to the
“Family Managed” stage. Whereas ACI, A.K. Khan & Company, BEXIMCO, and Pran-RFL Group belong to the
“Family Monitored” stage.
68
Chapter 5: Conclusion
BDRAL Economic Outlook
Chapter 5: Conclusion
In conclusion, this study provides a comprehensive analysis of ten leading family businesses in Bangladesh,
employing theoretical frameworks such as the Three-factor Model of Family Business and the Life Cycle Analysis
of Family Business. Through rigorous data collection, qualitative analysis, and triangulation, valuable insights
have been gained into the structure, dynamics, and developmental stages of these prominent enterprises.
The findings of the study underscore the significant role that family businesses play in the economy of
Bangladesh, contributing to nation-building, wealth creation, employment generation, and foreign investment.
The analysis reveals diverse corporate diversification strategies employed by these family businesses, including
both related and unrelated diversification approaches, aimed at expanding their market presence, mitigating
risks, and capitalizing on emerging opportunities.
Furthermore, the study highlights the importance of understanding family dynamics, ownership structures, and
management practices in shaping the trajectory of family businesses over time. The Life Cycle Analysis
illuminates the unique sets of challenges faced by family businesses at different stages of their development,
ranging from growth and maturity to decline, necessitating adaptive strategies and effective governance
mechanisms.
It is evident from the analysis that family businesses in Bangladesh exhibit various patterns of ownership, family
involvement, and management structures, influenced by factors such as generational transitions, sibling
partnerships, and cousin consortia. Despite facing challenges such as market saturation, intense competition,
and succession planning issues, these family businesses demonstrate resilience, innovation, and a long-term
orientation towards sustainable growth.
The study concludes by emphasizing the importance of strategic planning, professionalization of management,
and effective governance practices in ensuring the continued success and longevity of family businesses in
Bangladesh. By leveraging their core strengths, fostering synergies across diversified ventures, and embracing
best practices in family business management, these enterprises can navigate the complexities of the business
landscape and sustain their legacy for generations to come.
Overall, this study contributes to the body of knowledge on family business management, offering insights and
practical implications for policymakers, practitioners, and academics seeking to understand, support, and foster
the growth of family businesses in Bangladesh and beyond.
Disclaimer: This document has been independently created by the Advisory, Research, and Training (ART) Department of
BDRAL. The ART Department has made every attempt to ensure the accuracy and reliability of the information in the
document. However, the data may vary as it is collected from the publicly available sources.
70
Editor
Syed A. Mamun, PhD, FCMA
Chief Executive Officer, BDRAL
Associate Editor
Samira Sohani
Research Associate & Acting Head
Advisory, Research, and Training (ART) Department, BDRAL
Samira.sohani@bdral.com; ART@bdral.com
Assistant Editors
Mahdi Rahman
Md. Arman
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Analysis of Family Businesses

Key findings include -

1.2 What is Family Business 4

1.3 Three-factor model of Family Business 5

1.4 Life Cycle Analysis of Family Business 6-7

1.5 Challenges for the Sustainability of Family Business 8

2.2 Research Design 11

2.3 Data Collection, Analysis, and Validation 11

2.4 Ethical Considerations 11

Chapter 3: Analysis of Family Business

3.2 Ispahani Group 18-22

3.3 United Group 23-28

3.4 ACI Group 29-33

3.5 Akij Group 34-38

3.6 BEXIMCO Group 39-43

3.7 A.K. Khan & Company 44-48

3.8 Anwar Group 49-53

3.9 Pran-RFL Group 54-57

3.10 Rahimafrooz Group 58-62

Table 4.2: Summary of three-factor model analysis of Family Businesses 65-66

Table 4.3: Timeline Summary of Family Businesses 67

Table 4.4: Lifecycle Cycle Analysis of the Family Businesses 68

1.1 Objective of the study

1.2 What is Family Business

1.3 Three-factor model of Family Business

1.4 Life Cycle Analysis of Family Business

1.4.1 Family Cycle

1.4.2 Wealth Cycle

1.4.3 Business Cycle

1.4.4 Management Cycle

Figure 2: Four Cycle Model of Family Business, Dr. Alexander Koeberle-Schmid.

1.5 Challenges for the Sustainability of Family Business

2.1 Selection of Family Businesses

Table 2.1: Sample Family Firms

Sl. No. Name of the Business Key Industry Engagement Founder(s)

Pharmaceuticals, FMCG, Healthcare, Textile &

FMCG, Textile, Agro, Shipping, Real Estate,

Hasan Mahmood Raja,

4. ACI Group Pharmaceuticals, FMCG, Agro, etc. Anis Ud Dowla

Tobacco, FMCG, Printing and Packaging,

FMCG, Steel, Cement, Textile, Finance, and

Automotive After-Market, Power & Energy,

2.2 Research Design

2.3 Data Collection, Analysis, and Validation

2.4 Ethical Considerations

3.1 SQUARE Group

3.1.1 About the Company

3.1.2 History & Key landmark achievement

1958: Establishment of SQUARE Pharmaceuticals by Samson H Chowdhury and his friends.

1988: Square Toiletries Ltd. started its journey.

1997: Mediacom Ltd. started its operations.

1999: Inception of Aegis Services Ltd.

2000: SQUARE Food & Beverage Ltd. started its journey.

2001: SQUARE Fashion Ltd. started its operations.

2002: SQUARE Informatix Ltd. was established.

2005: Sabazpur Tea Company Ltd. started its operations.

2006: SQUARE Hospitals Ltd. started its journey.

2011: Maasranga Communications Ltd. started its journey.

2012: Incorporation of SQUARE Denims Ltd.

2014: SQUARE Apparels Ltd. started its operations.

Figure 3.1.2: Key landmark achievements of SQUARE Group.

3.1.3 Corporate Diversification Strategy

3.1.4 Family Tree