From liquor to honey: Journey of AP Dacca

Starting as a liquor-producing company more than 100 years ago and later being transformed into a manufacturer of honey and herbal medicines in the mid-1980s, Ayurvedia Pharmacy (Dacca) Ltd is now eyeing to expand its business by exporting Ayurvedic and Unani products.

In 1912, six partners established the company with a factory in the Armanitola area of Dhaka to produce liquor. The company kept producing liquor for more than seven decades despite changes in ownership.

But in 1985, when the government imposed a ban on liquor production for private companies, the company exited the liquor business and started producing honey, processed food, cosmetics, and herbal medicine.

Currently, the company's main focus is on producing world-standard honey which it exports too, and for this, it has set up a dedicated factory.

AP officials have claimed that it is the only company in the country to have a dedicated honey factory.

The company is also looking forward to establishing new plants which would usher in a new phase in its century-old history.

AKM Reazul Karim, executive director and the oldest official of AP, told The Business Standard, "AP gained huge popularity across the country as a liquor brand. Although it does not produce liquor anymore, it has maintained that popularity among customers with its diversified herbal products."

Change of ownership

According to sources, the original owners of the company got it registered as a liquor producer in 1948 after the partition of India. But, the detailed information about them could not be known.

The government of Bangladesh acquired the company in the early 1970s as the original owners did not return after the Liberation War.

In 1980, AFM Fakhrul Islam Munshi, the then head of admin of the company, along with his partner GolamFaruk, bought it through an open auction.

AKM ReazulHasan said after the change of ownership, the company was able to run liquor business only for a few years as the government banned alcohol production by private companies in 1985. "As a result, the new owners were forced to introduce other products to run the company."

AFM Fakhrul Islam Munshi introduced herbal products to run the company as he already had Ayurvedic medicine business when he was a government official. He had a shop in Dhaka named Sheba Pharmacy which he closed after buying AP.

However, he did not change the name of the company as it gained considerable brand value in the country.

He also got involved in politics and became a member of parliament from Jatiya Party in 1986 and 1988. He became a deputy minister during that period. Currently, he is involved with the ruling Awami League. 

In 2000, Fakhrul Islam bought all the shares of his partner and became the sole owner of AP. He divided the shares of the company among his family members in 2003.

Currently, his eldest son Raquib Mohammad Fakhrul is the managing director of the company.

AP's business

The ban on liquor production imposed by the government could not stop the business of AP Dacca Ltd as its new products including honey and herbal medicines took no time to gain popularity among customers. 

Besides, the owner of the company established Nur-Majid Ayurvedic College in Banasree, Dhaka in 1980 to create skilled manpower for Ayurvedic and Unani businesses.

Graduates from Nur-Majid Ayurvedic College work as Kaviraj (herbal medicine experts) for the company. Most of them join the company after passing from that college.

In 2017, the company's factory was shifted to Gazipur. The country's first honey processing factory and Ayurvedic, Unani, and food processing plants were built there.

The company also produces various other products including sharbat, noodles, sauces, jellies, vinegar, rose water, and black cumin oil.

AKM ReazulHasan, executive director of AP, said, "Currently, our main business is honey. We export 80% of the honey processed in our factory, which is around 350 tonnes per year. All of this exported honey goes to Japan. We sell the rest of the product in the local market."

"We have 33 sales centres across the country where we sell Ayurvedic and Unani products. Our food items are sold through dealers," he said.

The company procures honey from bee-keepers across the country. For this, the company provides necessary training and funding to them. At present, there are more than 2,000 bee-keepers in different zones across the country who work for AP.

AP collects around 80% of its honey from these bee farms.

AKM Reazul Hasan said, "We cannot collect honey from Sundarbans as it is much more costly. Most of our honey is from mustard flowers. Some are also from litchi flowers. However, foreigners do not inspect for the flower while buying honey, they want to be ensured about the quality of the product."

According to the company, its annual sale is about Tk20 crore and it has never conceded a loss except during the pandemic time.

Future plans

The company is looking forward to exporting Ayurvedic and Unani products abroad. But according to the existing law, these products cannot be exported as medicine. However, there is a scope to export Ayurvedic and Unani products as food supplementary. The company wants to use this opportunity.

The company is currently setting up factories for Ayurvedic and Unani products in Gazipur following the guidelines of the World Health Organisation (WHO) with an initial investment of Tk10-12 crore.

However, this investment will increase step by step, said officials.

AKM Reazul Hasan said, "Ayurvedic and Unani methods are traditionally used in the subcontinent for health benefits. These are proven to be safe. India is already exporting these types of products."

"AP has a good reputation in the market. Initiatives have been taken to expand our business. We are modernising our factories step by step," he added.