S Alam Group, one of the country's leading industrial conglomerates, is on the brink of shutting down its factories due to its inability to import raw materials following the freezing of its bank accounts.
This group, painstakingly built over four decades by the collective efforts of entrepreneurs, workers, and officials, now faces a crisis threatening the jobs of over one lakh employees.
Economists and affected workers assert that keeping these factories operational could shield a large number of labourers from joblessness.
Experts believe that the government could implement measures to support the industry, such as engaging with the group's top decision-makers to develop strategies for recovering debts owed to various banks.
This could be achieved by ensuring continued factory operations. If businesses are allowed to function, the group could meet its financial obligations through sustained production and income, stakeholders suggest.
Following the ousting of Sheikh Hasina’s government on 5 August, the interim administration focused on sectoral reforms, including freezes on the bank accounts of several large conglomerates as part of financial sector reforms.
The personal accounts of certain key figures were also frozen, compounding the business hurdles for Chittagong-based S Alam Group, which now struggles with daily operations and opening letters of credit (LCs).
The Bangladesh Bank recently froze the group’s accounts, resulting in delayed salary payments and staff layoffs.
Economist Dr Moinul Islam commented, "The group has taken significant loans from various banks. Measures can be taken to ensure debt recovery while allowing factory operations to continue."
He emphasised the urgency of reopening the closed factories to maintain raw material and equipment imports, preserving jobs and preventing widespread unemployment among factory workers’ families.
Speaking to the newspaper, multiple S Alam Group officials highlighted the grave risk to their jobs, urging the government to keep the businesses afloat to protect the livelihoods of employees.
They cautioned that the management would be unable to sustain salaries if operations remain halted, while importing raw materials could revive production and allow debt repayments.
Otherwise, mass closures and job losses are inevitable, and they appealed for a humanitarian approach from the government.
Founded in 1985, S Alam Group has maintained a sterling reputation, contributing substantially to national employment and consistently paying revenues.
This year alone, it deposited approximately Tk12,000 crore into the state treasury. The group employs over one lakh people in sectors including garments, textiles, consumer goods, corrugated tin, transport, cement, steel, and hatcheries.
It also invests significantly in Bangladesh’s power sector, with the 1,320 MW SS Power Plant in Banshkhali, Gandamara meeting much of Chittagong’s electricity demand.
Exporting garments and textile products earns the conglomerate a considerable amount of foreign exchange annually. It also operates numerous schools, colleges, mosques, madrasas, charities, and orphanages.
During the COVID-19 pandemic in 2020, the group provided substantial support, distributing funds, medical equipment, and food supplies to thousands of families.
For decades, S Alam Group has produced and supplied essential consumer goods, maintaining supply chain stability and helping control prices.
However, the account freeze and lack of LC facilities have disrupted their imports and supply operations.
Economists and business leaders believe replacing such a major contributor overnight is impractical, warning of potential supply shortages and price hikes. Suggestions include supervised import and sales by banks, enabling debt repayment and preventing job losses.
S Alam Group’s Sugar Mill Deputy General Manager, Rafiqul Islam, stated, "The mill has been closed since 31 October due to inability to procure raw materials as a result of frozen accounts."
The Oil Mill’s General Manager, also named Rafiqul Islam, cited similar difficulties, mentioning a two-month shutdown that has directly and indirectly affected 7,000 jobs. He urged the government to intervene and keep factories running.