Alfamart enters Bangladesh with $120m retail venture in partnership with Kazi Farms

Indonesian retail powerhouse Alfamart is making its entry into Bangladesh through a joint venture with Kazi Farms Group, one of the country's leading conglomerates, and Japan's Mitsubishi Corporation, a global business giant with deep roots in the Asian retail industry.

The partnership will introduce a network of convenience-based retail outlets across Bangladesh, focusing on fast-moving consumer goods (FMCG). 

The venture aims to bring global retail standards, cutting-edge technology, and professional supply chain management to a market dominated by local stores and fragmented distribution systems.

The joint venture was formally announced at an event in Dhaka today (7 October).

$120m in 2 phases

According to project insiders, the joint venture will begin with a $50 million foreign investment in its first phase, followed by an additional $70 million in the second phase. The investment will be used to establish retail outlets, warehouses, and logistics systems that align with Alfamart's international standards.

The first stores are expected to open in Dhaka and Chattogram, strategically located in residential and high-traffic urban areas to ensure accessibility. Over time, the chain plans to expand into district towns and semi-urban regions, creating a broad retail network that could redefine how Bangladeshi consumers shop for daily essentials.

Kazi Zahin Hasan, director of Kazi Farms Group, told The TBS that Alfamart's advanced IT-driven retail system was a key attraction for the partnership.

"Alfamart's system tracks product sales and inventory levels in real time at each outlet, ensuring optimal stock management and higher sales efficiency," he said.

He added that the initiative would introduce international best practices in retail operations, customer engagement, and workforce management.

Alfamart's current operations

Alfamart currently operates around 27,000 retail outlets in Indonesia and the Philippines, employing over 150,000 people – of whom about 40% are women. The company is publicly listed in Indonesia and has a strong reputation for its inclusive employment practices and sustainable retail model.

"We hope Alfamart stores in Bangladesh will also create job opportunities that are attractive to women and youth," Kazi Zahin noted.

Mitsubishi Corporation, a key shareholder in Alfamart, played a pivotal role in facilitating the joint venture. Mitsubishi's experience in global retail partnerships – through brands like Lawson and Uniqlo – is expected to bring international expertise to the Bangladeshi operation.

Mitsubishi operates more than 17,000 Lawson stores across Japan and Indonesia and has been instrumental in scaling Asian retail formats to new markets.

Bangladesh's modern retail sector has grown rapidly in the past decade, driven by urbanization, rising disposable income, and changing consumer habits. Industry data show that the FMCG and organised retail market is now worth more than Tk80,000 crore, with an annual growth rate of 10–12%.

The entry of Alfamart is expected to accelerate the transition from traditional small-scale shops to organized, technology-driven retail formats.

Analysts say the venture could generate thousands of jobs, empower local FMCG producers by offering direct retail access, and raise consumer expectations regarding product quality, hygiene, and service standards.

Kazi Zahin said Alfamart stores initially in Bangladesh will focus on everyday consumer goods – food, beverages, personal care, and household items. Over time, the network may expand to include lifestyle and home products, depending on consumer demand and logistical feasibility.

The venture partners are exploring potential collaborations with local FMCG producers to ensure that Bangladeshi brands benefit from Alfamart's retail distribution system, which integrates real-time sales analytics and predictive demand forecasting.