PRAN-RFL revives 3 abandoned Rajshahi mills, creating 5,000 jobs

After working four years at a garment factory in Savar, 24-year-old Sanjida Akter returned to her home in Rajshahi in 2024, struggling to balance factory life with raising a child far from family support.

For months, she believed her working life was over. That changed when PRAN-RFL Group restarted operations at the long-abandoned Rajshahi Textile Mill under a public-private partnership (PPP) model.

Today, Sanjida works at a footwear factory just 8 kilometres from her home in Baneshwar.

"I never thought I would get another factory job near home," Sanjida told The Business Standard. "Now I can earn, stay with my family and take care of my child at the same time."

Sanjida's story is one of many now emerging from Rajshahi, reflecting a broader industrial revival in a region long neglected and considered one of Bangladesh's least industrialised zones. The reopening of abandoned factories is creating new jobs locally and reducing workers' dependence on migration to Dhaka and other industrial hubs.

Over the past two years, PRAN-RFL has revived three idle factories in Rajshahi, including the state-owned Rajshahi Textile Mill and Rajshahi Jute Mill, and another private factory, creating nearly 5,000 jobs with plans to more than double employment in the coming years.

The factories are now producing non-leather footwear, luggage, backpacks, trolleys, women's handbags, tents and umbrellas for export markets in Europe and North America.

From abandoned mills to export factories

Rajshahi Textile Mill, established in 1979, remained closed since 2003 due to mounting losses. After more than two decades of inactivity, the facility has resumed operations under PRAN-RFL's investment initiative.

Nearly 2,500 workers are now employed at the factory, many of them women who previously migrated to Dhaka or Gazipur for work.

Swapna Khatun, 30, once left her young daughter behind in Rajshahi while working in Gazipur. She now works at a factory only 12 kilometres from her home in Paba upazila.

"If we work far away, the child's education and family life suffer," she said. "Local jobs make life much easier."

Rajshahi University graduate Sultana Khatun, 22, who works at another revived factory, said the opportunity allowed her to avoid relocating to Dhaka after graduation.

Big bet on footwear and luggage

PRAN-RFL has invested around Tk325 crore in footwear and luggage manufacturing over the past two years. The company plans to invest another Tk200 crore this year and nearly Tk800 crore more over the next three years as it expands production capacity.

Currently producing around 48 lakh pairs of shoes per month, the company aims to raise output to 1.5 crore pairs within three years to meet growing international demand.

The group said rising production costs in China are pushing global buyers to diversify sourcing toward Bangladesh, particularly in non-leather footwear.

Bangladesh exported footwear worth $1.19 billion in FY25, according to Export Promotion Bureau data. Of that, non-leather footwear contributed $522 million, growing more than 25% year-on-year.

PRAN-RFL currently operates eight footwear and luggage factories across Narsingdi, Rajshahi, Rangpur and Pabna, while two more facilities in Chattogram are under renovation.

The company exports to 45 countries, with the US and Europe as major markets. Export earnings from non-leather footwear and luggage nearly doubled to Tk177 crore in FY25 from Tk92 crore a year earlier.

"We are receiving strong purchase orders, but delays in expanding production mean losing opportunities," said Kamruzzaman Kamal, marketing director of PRAN-RFL Group. "Reviving closed factories gives us a fast-track solution while also creating employment outside Dhaka."

Abandoned jute mill now making tents and umbrellas

PRAN-RFL has also revived the Rajshahi Jute Mill, which remained shut for nearly 14 years before being leased by the company earlier this year under a 35-year PPP agreement.

Inside one of the old factory sheds, around 1,500 workers are now producing export-oriented tents and umbrellas for global brands.

Factory officials said the current test-run setup can produce around 3,000 umbrellas daily, with plans to increase capacity to over 10,000 units. Tent production has also begun on a smaller scale and will gradually expand.

"We leased 35 acres of land with existing infrastructure," said Rahat Hossain Roni, chief operating officer of the footwear and leather goods division at PRAN-RFL.

"Initially, we used the old government buildings. After fully utilising those, we constructed two additional factory buildings with our own investment," he said.

According to Roni, one new building spans 60,000 square feet while another covers 150,000 square feet. 

"We are already in discussions with foreign buyers. If everything goes as planned, this factory alone could employ 7,000 to 8,000 people," he added.

Industry analysts said the initiative highlights the potential of decentralising Bangladesh's industrial base beyond Dhaka and Chattogram. They also say workers relocating from Dhaka to smaller cities gain higher purchasing power due to lower living costs.

PRAN-RFL officials argue that Bangladesh's large rural workforce gives it a competitive advantage over countries such as Vietnam and Cambodia as global manufacturing gradually shifts away from China.

"If someone earns the same salary in Rajshahi instead of Dhaka, their effective purchasing power rises significantly," Roni said. 

He said shortages of skilled workers in rural areas continue to affect productivity, while 30-40% of raw materials still need to be imported from China, creating supply delays.  Roni urged the government to simplify customs and bonded warehouse procedures to improve competitiveness.