Softlogic eyes Bangladesh with keen interest to expand footprint

• In addition to healthcare and modern trade, Softlogic looking at establishing other group biz in B’desh

Determined to expand its global footprint, Softlogic Holdings PLC is actively looking to foray into Bangladesh across diverse sectors. 
According to the chairman of the diversified conglomerate, Bangladesh ticks all the boxes and is an ideal market for Sri Lankan businesses to expand their operations. 

“It’s (Bangladesh) a massive market. The potential is immense, given that its population and nearly US $ 325 billion GDP. 

The opportunity to expand there is excellent,” Softlogic Holdings Chairman Ashok Pathirage told Mirror Business. 

“There is so much untapped potential that can be unleashed with aggressive marketing,” he added. 
Making Bangladesh a highly suitable option for entities such as Softlogic to enter into is also the ties it has with Sri Lanka.  While the country is not as warm towards its immediate neighbours India and Pakistan, due to conflicts of the past, Bangladesh has always expressed keenness in welcoming Sri Lankan entities. 

“If we look at expanding our presence in India, though it is the closest market, it is a challenge to enter and penetrate there. They are highly competitive. It’s tough. But Bangladesh, they are very friendly, so we have an amazing opportunity there,” said Pathirage. 

Softlogic is in the midst of sealing a deal with Bangladesh’s Agora via which it will make its debut in the retail space in that country. 
The decision was also disclosed via a filing to the Colombo Stock Exchange (CSE), last week. 

According to media reports published in Bangladesh, the sale of Agora, the second-largest superstore chain in Bangladesh, will take place as part of a ‘normal business procedure’. 
Softlogic will buy 100 percent stake in Agora and the acquisition would be completed in a series of transactions.

Neither party has disclosed the deal value as yet. 
When questioned on the feasibility of entering the retail sector in Bangladesh, given that the supermarket chains are not popular in that country, Pathirage quipped it is all the more reason to cater to that market.

“The retail market in Bangladesh is at least US $ 20 billion. It is only 2 percent penetrated. The potential and opportunity for us there is 98 percent,” he said. 

Pathirage also shared that having already entered the healthcare sector of Bangladesh, and now the retail sector, Softlogic is also keen to establish its other group businesses such as insurance, in that market.  (SAA)