Japan's Lion enters Bangladesh FMCG market with local production
Commercial operations started last month at its factory in the Bangladesh Special Economic Zone in Araihazar, widely known as the Japanese Economic Zone
Japanese household and personal care giant Lion Corporation has begun production in Bangladesh, targeting a share of the country's 18 crore-strong consumer market.
The company, which dates back to 1891, entered the Bangladeshi market in 2022 through a joint venture – Lion Kallol Limited – with the local Kallol Group, in which it holds a 75% stake.
Commercial operations started last month at its factory in the Bangladesh Special Economic Zone in Araihazar, widely known as the Japanese Economic Zone.
The plant has begun production with two flagship products – Mama Lemon dishwashing liquid and Systema toothbrush – while the company plans to gradually expand its portfolio of household and personal care items.
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A visit to the factory on 9 April showed a compact, elevated single-storey facility reflecting Japanese industrial discipline and efficiency. Product displays at the entrance featured a range of items, including Kodomo baby care products, Jet fabric-cleaning products, and oral care offerings.
Company officials said the investment reflects a long-term commitment to Bangladesh, aimed at strengthening local manufacturing, reducing reliance on imports and improving supply chains. The project is also expected to create jobs, facilitate technology transfer and support the development of ancillary industries.
"This new plant represents our long-term commitment to Bangladesh. It strengthens our supply capabilities and enhances our ability to deliver innovative, value-added products while contributing to healthier lifestyles and broader economic development," said Go Ichitani, chairman of Lion Kallol.
Lion Corporation, with more than 130 years of business operations, produces a wide range of everyday household and personal care products, including toothpaste and toothbrushes, detergents, soaps, hair and skincare products, and over-the-counter pharmaceuticals.
Its business operations are broadly divided into consumer goods, industrial products and overseas operations, with consolidated net sales exceeding ¥400 billion (around $2.52 billion) as of the 2025 financial year.
Apart from Bangladesh, Lion operates across Asia and other regions through subsidiaries and joint ventures in countries including India, Australia, Vietnam, Thailand, Malaysia, Indonesia, South Korea, China and Singapore.
As of 2025, the firm employs more than 8,000 people worldwide and continues to invest in research, digital transformation and environmentally friendly technologies as part of its long-term growth strategy.
Ghulam Mostafa, managing director of Kallol Group, said the partnership with Lion Corporation would bring advanced technologies and help raise quality standards in the local market.
Takashi Ochiai, director of factory operations, said the facility had been built with strong emphasis on quality assurance, workforce capability and manufacturing discipline, adding that it could also support export markets in the future.
Built on about 3.3 hectares inside the economic zone, the factory is equipped with modern production lines, quality control systems and environmentally compliant processes. The facility was designed and constructed by Shimizu Corporation.
Currently producing fast-moving consumer goods, the plant is expected to employ around 273 workers. According to officials from the Bangladesh Economic Zones Authority, the company has so far invested about $7.6 million, with plans to expand investment to around $19.41 million in the next phase.
Ashik Chowdhury, executive chairman of both the Bangladesh Investment Development Authority and the Bangladesh Economic Zones Authority, told The Business Standard that such investments send a strong signal to the market, noting that investor confidence has improved following the national election.
"Such large-scale investments create a positive signalling effect. We already have several major investment proposals in the pipeline," he said, expressing optimism about stronger inflows this year.
He added that employment generation and skill development remain central to economic zone strategies, with the government extending full support to investors.
Chiharu Tagawa, managing director of BSEZ Ltd, said three companies are currently in production in the zone, including Lion Kallol, while 12 firms have leased land, several of which have begun construction.
Investor interest has increased notably after the election, with fresh enquiries from foreign companies, he said.
A senior official of Lion Kallol declined to disclose sales or growth figures, citing confidentiality, but said the company's presence in Bangladesh is expanding through products focused on hygiene and family care.
"From Kodomo baby care to Mama Lemon dishwashing liquid and Systema oral care, we are proud to serve Bangladeshi households," the official said.
