Chairman Abul Kashem building separate business empire, while his three brothers continue to run its flagship brands.
Abul Khair Group. Photo: Courtesy
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Abul Khair Group. Photo: Courtesy
Abul Khair Group, one of Bangladesh’s largest industrial conglomerates, is seeing its founding family’s business interests take separate paths as Chairman Abul Kashem expands his own ventures while his three brothers oversee the group’s flagship brands.
The family has yet to formally divide the business, which generates an estimated annual turnover of Tk50,000 crore.
However, differences over ownership, management control and contribution to the group’s expansion have stalled efforts to reach a settlement, according to bankers and people familiar with the matter.
Kashem, the eldest son of the group’s founder, late Abul Khair, has started expanding his food and commodities business through Smile Food Products.
In recent months, Kashem also acquired Abdul Monem Sugar Refinery, widely known as Igloo Sugar, and the edible oil business of Globe Pharmaceuticals. The combined value of the two acquisitions is estimated at around Tk4,000 crore, according to industry sources.
Meanwhile, Abu Syed Chowdhury, the group’s deputy managing director, and his two brothers continue to lead its major businesses, including Shah Cement, AKS Steel, Marks Full Cream Milk Powder, Seylon Tea, and Starship Condensed Milk.
Although Kashem remains chairman, bankers say his three brothers now lead the group’s core businesses, with him largely absent from day-to-day decision-making.
Industry insiders said the four brothers have agreed in principle to equal ownership stakes of around 25% each, although the assets have yet to be formally allocated.
Bankers involved with the group said some businesses acquired by Kashem are effectively being purchased against his personal share of the family enterprise rather than through a common group-level ownership structure.
TBS approached one of the brothers involved in leading the group, but he declined to comment. However, he said such developments are common in family businesses.
From family inheritance to industrial empire
When Abul Khair died in 1976, his eldest son Kashem was a first-year student at the University of Chittagong. He had to leave much of his earlier life behind to take responsibility for the family business and his seven younger siblings.
The business he inherited consisted of four bidi factories, a brick kiln, a cinema hall, a trading operation on Jail Road in Chattogram and some land.
Over the following decades, Kashem played a central role in holding the family enterprise together.
People familiar with the family said he brought his younger brothers into the business, supported them and gradually entrusted them with greater responsibilities.
TBS Infograph.
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TBS Infograph.
The group’s transformation into a major industrial conglomerate gathered pace in 1993, when it entered the corrugated iron-sheet business. Its “Goru Marka Dheu Tin” brand became a market leader, followed by its entry into cement in 2002.
The group subsequently expanded into steel, dairy and other consumer products, building a portfolio of brands that includes Shah Cement, AKS Steel, Marks Full Cream Milk Powder, Seylon Tea and Starship Condensed Milk.
However, the family’s internal balance changed after one of Kashem’s brothers died suddenly in 2003. Kashem subsequently withdrew from the business and remained largely away from public and social activities for an extended period.
His surviving brothers assumed greater responsibility and continued expanding the group.
Dispute over contribution, control
Kashem returned actively to the business around 2022, when differences began to emerge over the involvement of the next generation, according to people familiar with the matter.
One person involved with the group said Kashem felt his son had not been given an adequate role in the business.
Other family members, however, viewed the history differently. They argued that the group was considerably smaller when Kashem stepped away and that they and their teams had taken the risks and made the decisions that drove its subsequent expansion.
“They believed they deserved credit for the growth because it had not failed and had expanded under their management,” said a banker involved in efforts to resolve the dispute.
Kashem, meanwhile, believes his early leadership, support for his younger brothers and contribution to building the family enterprise should be recognised in the current ownership and management structure, the banker said.
Both sides see themselves as custodians of the family legacy but disagree over how ownership, control and the value created over the years should be distributed.
The dispute has reportedly been under discussion for seven or eight years.
In 2025, several bankers became involved in an attempt to broker an out-of-court settlement. Their proposal was to value every company in the group and allocate the businesses among the family members according to their respective ownership stakes.
Under the proposed arrangement, family members would select companies in an agreed order based on their ownership entitlements. For example, a 25% share of a company valued at Tk100 crore would entitle a family member to assets worth Tk25 crore.
The process initially appeared to be moving towards a settlement but eventually stalled because the family members were not fully satisfied with the proposed method of dividing the assets. The group assisting with the negotiations subsequently withdrew.
The family has also engaged lawyers and considered legal action, although no case had been filed at the time of the interviews, according to a banker familiar with the discussions.
Chairman’s role questioned
Despite the unresolved ownership dispute, Kashem remains chairman of the group’s board. Bankers say that his three brothers have been making decisions on the core businesses.
A banker said the banks dealing with the group received a letter from Kashem several months ago asking them not to accept any board resolution without his involvement.
However, the banks continued to process transactions as resolutions signed by any two directors were considered sufficient under the arrangements described by the bankers. Payments by the group’s businesses to banks have continued regularly, they added.
The bankers also said the group’s major businesses continue to operate without significant payment problems, even as the family’s ownership arrangements remained unsettled.
The Business Standard sought comments from Abul Khair Group, but no one was willing to comment on the record.
Building a separate business empire
While the division of the family’s existing assets remains unresolved, Kashem has been expanding his independent business interests through Smile Food Products.
Industry sources said he paid at least Tk1,700 crore for Abdul Monem Sugar Refinery and more than Tk2,000 crore for Globe Edible Oil, including several acres of land in Dhaka’s Tejgaon industrial area.
He is also in discussions to acquire additional companies, particularly in the food, beverage and biscuit sectors, according to industry insiders.
Kashem has reportedly expressed interest in acquiring some projects owned by City Group in the Hosendi Economic Zone in Gazaria, Munshiganj.
City Group developed six major industrial and infrastructure projects in the economic zone, covering sectors including paper, cement, ceramics, chemicals and shipbuilding. The group has been looking to sell some assets amid financial difficulties.
Kashem’s acquisitions signal his move to build a separate industrial and consumer goods empire as talks over the family business remain stalled.
A banker familiar with the family’s business said the separation was already taking shape in practice, although no formal division had taken place.
According to the banker, Kashem is managing Smile Food and other ventures, while his brothers continue to oversee the group’s established brands.
The banker said the core businesses were performing well and continuing to meet their bank obligations, while Kashem was also involved in trading and acquiring factories.
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