Bhola booms as gas, land and low costs draw billions in new industries
Pran-RFL to invest Tk6000cr, Urmi Group Tk1000cr, Chinese firm $1b
Bhola, a southern island district in Bangladesh, is fast emerging as an industrial hotspot, with local and foreign investors committing billions to large-scale manufacturing, drawn by its abundant gas reserves, river transport links, and low labour and land costs.
Pran-RFL, one of the country's largest and most diversified business groups, has begun land development there after acquiring 1,000 bighas to build a massive economic zone with an investment plan of Tk6,000 crore.
Urmi Group has secured land for a synthetic and man-made fibre plant at a cost of nearly Tk1,000 crore ($80 million).
A Chinese firm is also preparing to establish a $1 billion economic zone under a recent approval from the Bangladesh Economic Zones Authority (Beza).
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Top advisers of the interim government have also visited Bhola recently to assess the feasibility of setting up a large urea fertiliser plant using the district's abundant natural gas reserves.
Industry leaders say Bhola's vast gas deposits, river transport connectivity and lower labour and land costs have made it Bangladesh's new investment capital.
Kutubuddin Ahmed, chairman of Sheltech Group, which built the country's largest ceramic factory in Bhola, told TBS that Gazipur, Narayanganj and Habiganj no longer offer viable expansion opportunities. These areas are extremely congested, and land prices have become prohibitively high.
"In contrast, Bhola offers gas, water, electricity and low-cost river transport. Using local workers also reduces production costs. Bhola is simply a better investment destination, and we've already benefited from it," he said.
Sheltech established its plant on 60 acres in 2017 with an investment of Tk600 crore, generating around 1,000 jobs, of which 800 are local.
Pran-RFL's Tk6,000cr industrial park to employ 25,000 people
Pran-RFL Group is planning one of the country's largest industrial parks on 1,000 bighas in Char Veduria of Bhola Sadar.
"This will be Pran-RFL's second major industrial hub after Habiganj," Chairman Ahsan Khan Chowdhury told TBS.
He said, "Two things will happen: the government won't need to spend on gas transmission, and large-scale industrialisation will begin in the region. Once we move, more investors will follow, and together, we can build a full-fledged industrial zone in the south."
Company officials said infrastructure construction has already begun, and small-volume production will start in 2026. The park will create over 25,000 direct jobs once fully operational. The investment will be financed through equity and bank loans, while foreign joint ventures may be considered later.
Kamruzzaman Kamal, director (Marketing) of Pran-RFL, said the park will house factories producing high-energy-consuming items such as pipes, floaters, injection-moulding products, chairs, water tanks, tables, doors, toys, footwear, ceramics and glassware.
"We aim to start full production by 2028," he said, adding that the facility will serve both domestic and export markets.
Pran currently employs 35,000 direct workers at its Habiganj industrial park.
Urmi Group to build synthetic & man-made fibre plant by 2027
Export-oriented garment manufacturer Urmi Group is investing $80 million to set up a synthetic and man-made fibre facility in Bhola's Veduria union. The company has begun land development on 35 acres after completing land acquisition.
"We've already completed 40–50% of the land and development work," Managing Director Asif Ashraf told TBS. "The factory will start production by 2027."
The goal is to supply fibre for Urmi's garment and textile units while also exporting surplus.
"We import all yarn and fabric now," Asif said. "Suitable land and gas availability near Dhaka or Chattogram no longer exist. Bhola provides both, plus river access to Chattogram and Mongla ports. The return on investment is promising."
Urmi Group employs more than 15,000 people across apparel, textiles, agriculture, shipping and logistics ventures.
China plans $1bn investment in Bhola economic zone
Beza approved the Bhola Eco Development Economic Zone on 26 August, to be developed by Liz Fashion Industries Ltd, a Chinese-origin company already active in Bangladesh's apparel sector.
The first phase covers 102 acres, later expanding to 158 acres, with a targeted $1 billion investment. Beza officials said the zone will house 40 environment-friendly, labour-intensive and agro-based industries, including fish processing, meat and dairy, agro-products and handicrafts.
During a recent visit, Pan Li, vice president of the China Free Trade Zone and Export Processing Zone Association, said, "A free trade zone in Bhola will create major opportunities for exporting local agricultural products, fish, rice and fruits to China. We also plan to showcase Bhola's produce at Bangladesh's national pavilion in Chengdu."
Govt eyes major urea plant powered by Bhola gas
The government is evaluating the feasibility of setting up a urea fertiliser plant using Bhola's gas reserves.
On 14 November, three advisers of the interim government – Adilur Rahman Khan (Industries, Housing and Public Works), Muhammad Fouzul Kabir Khan (Power, Energy and Mineral Resources) and Sk Bashir Uddin (Commerce, Textiles and Jute) – visited two proposed sites near Veduria ferry ghat.
"Bhola has abundant gas far more than anywhere else right now," Adilur told reporters. "We plan to use this gas for a urea plant, and feasibility studies are underway."
He added that one of the country's 34 planned buffer warehouses for fertiliser storage is being built in Bhola and is expected to be completed by 2027.
Gas links expand as Bhola readies for major industrial takeoff
Engr Oliur Rahman of Sundarbans Gas Company Limited (SGCL) said pipeline gas connections are being provided to Sheltech, Kazi Farms and several other companies.
"Pran-RFL and Urmi Group have already begun construction, and they will also receive gas connections," he said. "BSCIC Industrial Estate has started receiving gas as well. A government-backed urea plant is also being prepared."
Former deputy commissioner of Bhola, Md Azad Jahangir, said the district is on the threshold of a major industrial transformation.
"With the growing interest from local and foreign investors, Bhola is set to become the largest industrial hub in the south," he told TBS. "Once these factories are operational, no youth in Bhola will remain unemployed."
He said all industries would receive gas connections upon applying and meeting regulatory requirements.
