City Group, a major conglomerate in Bangladesh, is set to revolutionize the country’s LPG market with an investment exceeding Tk2,000 crore. In a significant move, the late founder of City Group, Fazlur Rahman, sealed a business deal by acquiring Bengal LPG, the LPG unit of Bengal Group, for around Tk350 crore. The acquisition, finalized on October 19, 2023, just before Fazlur Rahman’s passing on December 25, underscores the conglomerate’s strategic focus on the LPG sector.
With 40 sister concerns, City Group aims to fortify its LPG market presence through this strategic investment. The addition of Bengal LPG’s plant in Mongla, boasting a 5,000-tonne storage capacity, brings City Group’s total storage capability to 21,500 tonnes. Combined with the existing Hoshendi plant’s 9,000-tonne capacity and an additional 7,500 tonnes across three ships, the conglomerate is well-equipped to meet market demands.
Firoz Ahmed, Director at City LPG, disclosed plans to launch the flagship brand “TEER” in March, accompanied by a nationwide distributor network, solidifying City Group’s foothold in the LPG market. Bengal LPG’s existing network of around 100 distributors in various districts will enhance City Group’s outreach in regions like Khulna, Barishal, Dhaka, Rangpur, and Rajshahi.
Firoz expressed the group’s aspirations, including efforts to enter the automobile sector and discussions with industries interested in utilizing the City’s LPG across household, industrial, automobile, and power generation sectors. Despite attempts to obtain comments from Bengal Group on the sale of their LPG plant, the company officials declined to provide information.
