RFL Electronics secures $23m foreign funds to boost production

[Bilal9]

Star Business Report​

Mon Jul 4, 2022 12:00 AM Last update on: Mon Jul 4, 2022 01:10 AM


Pran-RFL Group yesterday announced that its consumer electronics brand RFL Electronics has secured a $23 million loan from British International Investment (BII), the development finance institution of the UK, as the local conglomerate aims to boost its refrigerator production.

With the BII's capital, RFL Electronics will fund imports of the capital machinery required to expand operations at its new factory building in the Danga Industrial Park, where the company manufactures refrigerators and assembles small appliances such as rice cookers and blenders.

This expansion will help to create at least 600 jobs, 40 per cent of which are expected to be for semi-skilled workers, according to a statement from the company.
In 2022 so far, refrigerator sales have amounted to about 50 lakh units, up 20 per cent year-on-year, market players say.

The new investment will help RFL Electronics solidify its position in the sector that has been growing at a double-digit rate for the last eight years.

The overall annual market size for refrigerators in Bangladesh is worth about Tk 15,000 crore.

The loan marks BII's first 2X Challenge investment in Bangladesh, owing to the company's women leadership at its board level and its initiative to advance quality employment opportunities for women within RFL's workforce.

The 2X Challenge is an initiative launched by development finance institutions of the G7 countries to mobilize capital for supporting increased economic empowerment for women in emerging economies.

This loan facility follows BII's initial $15 million investment in RFL in 2018, which helped the company set up its manufacturing and assembly operations.

Robert Chatterton Dickson, British High Commissioner to Bangladesh, said he was delighted that BII is more than doubling its investment in Pran-RFL, one of Bangladesh's leading conglomerates.

"I am especially pleased that the investment recognizes Pran-RFL's efforts to increase women's employment," he added.

Ahsan Khan Chowdhury, chief executive officer at Pran-RFL Group, said the facility will help boost local manufacturing and cater to the increasing demand for electronic products from the fast-growing middle-income segment in Bangladesh.