Wednesday, October 21, 2015

Cold Storage and Cake retail


Golden Harvest Agro Industries, is setting up cold chain networks worth US $50 million in the country, with the help of USAID. With this huge investment plan, local companies like Pran, Brac, Aftab, Kazi Farms, Bengal meat and others are following suit. 

Few industries before have invested in cold chain network. Refrigerators, refrigerated vehicles, chilling centers and storage facilities are needed for the investment-intensive cold chain development, all of which Bangladesh imports. Absence of storage facilities waste as much as 30% of total produce in Bangladesh.
Golden Harvest have setup 3 collection centers for management of produce in proper containers. It has also established 9 cold storage units with 90,000 liters capacity, bought 30 refrigerated vans, thousands of refrigerators in the first phase spending $15 million, USAIDed by $5 million. Brac has invested Tk 50 crore, while Pran is also in this process. It is a long term process, India needing 20-30 years to establish the network even with the help of their government.


Since May last year, Pran has opened its business to the cake and pastry market, starting its retailing business with 9 outlets in Dhaka under the "Tasty Treat" brand. With the rising demand for cake and pastry items amongst urban consumers, Pran is planning to roll out 3 more outlets in the city. Ambitious that it can target a 100 stores in and around Dhaka within the end of next year, currently it is in business with more than six competitors in the city.

The rising demand for cakes have been outshining the need for celebration with traditional sweets. This has reflected in the growth of sales of Mr Baker from Tk 26,000 in 2003 to Tk 4 lakh currently. Already with 28 outlets in the city, Mr Baker welcomes market growth while competitors such as Kings and Coopers who have also been expanding operations.

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