S. Alam Group: Growth Story, Business Portfolio and Risk Profile

s alam group is one of Bangladesh’s most talked-about conglomerates. Founded in 1985 by industrialist Mohammed Saiful Alam, it has grown into a sprawling business empire of more than 200 companies, employing roughly 20,000 people and reporting total equity of about 140 billion BDT (around 1.3 billion USD). Its operations touch everyday life in Bangladesh through edible oil and sugar, cement and steel, power and energy, banking, shipping, media, real estate and more.

At the same time, S. Alam Group today sits at the centre of intense regulatory scrutiny and reputational controversy. Allegations related to high levels of borrowing, suspected financial misconduct, a reported 815.78 million USD capital flight through SS Power import letters of credit, labour deaths at the Banshkhali coal plant, contested media acquisitions, and a high-profile dispute with the interim government are all shaping how lenders, regulators and partners assess its risk profile.

This article takes a structured, factual look at S. Alam Group’s growth story, business portfolio, economic contributions and the main risk factors stakeholders need to understand.

1. Origins and Expansion of S. Alam Group

S. Alam Group began in 1985 as a trading-focused business led by founder and current chairman Mohammed Saiful Alam. Over four decades, the group has expanded aggressively, building a diversified portfolio that now spans three broad pillars:

• Finance– Banks, non-bank financial institutions and brokerage services.
• Industrial operations and manufacturing– Food and allied products, cement, steel, power and energy, textiles and packaging.
• Commercial services and trading– Shipping, logistics, real estate, transportation and general trading.

From its headquarters in the Asadgonj area of Chattogram, the group has positioned itself as a core provider of materials and services for Bangladesh’s economic activity – from cooking oil in households to rebar and cement in infrastructure projects, and from coal-fired power generation to financial intermediation through Islamic banks.

2. A Diversified Business Portfolio

One of S. Alam Group’s core strengths is the breadth of its portfolio. This diversification has allowed the group to capture value at multiple points in supply chains, and to hedge exposure between consumer demand, infrastructure cycles and financial services.

2.1 Sector overview

2.2 Food and allied products: Feeding a growing nation

The group is particularly well known among Bangladeshi consumers for its role in the edible oil and refined sugar markets. Through entities such as S. Alam Vegetable Oil Limited and S. Alam Refined Sugar Industries Ltd, it processes imported raw materials into finished products used daily in households, restaurants and food processing.

Benefits of this vertical include:

• Scale in staples– Ability to source at volume and stabilise supply to the domestic market.
• Integration– Tank terminals, seed extraction and packaging create end-to-end efficiency.
• Linkages– Extensive distribution networks support retailers and wholesalers nationwide.

2.3 Cement and steel: Supporting infrastructure and construction

Through companies such as S. Alam Cement Ltd, Portland Cements Ltd and several steel plants, S. Alam Group helps supply core materials for Bangladesh’s rapid urbanisation and infrastructure build-out.

These operations:

• Feed demand from housing, bridges, roads and industrial facilities.
• Leverage proximity to ports in Chattogram for raw material imports.
• Benefit from cross-selling to group-linked construction, real estate and power projects.

2.4 Power and energy: The 1,320 MW Banshkhali coal plant and beyond

Power and energy is one of S. Alam Group’s most high-profile and controversial verticals. In 2013 the group signed an agreement with Chinese company SEPCO3 to develop a large coal-fired power project in Chattogram’s Banshkhali area under SS Power 1 and 2 Ltd. The combined capacity of the plant is 1,320 MW, and it began commercial operation in 2023.

Strategic benefits of the power portfolio include:

• Capacity addition– A significant boost to national grid capacity at a time of growing industrial and residential demand.
• Energy security– Diversifies Bangladesh’s generation mix and helps reduce load shedding.
• Industrial linkages– Reliable power supports the group’s own manufacturing as well as broader economic activity.

However, the Banshkhali project has been the focus of persistent environmental concerns and labour unrest (discussed later), which now constitute a material part of the group’s environmental, social and governance (ESG) risk profile.

2.5 Shipping, manufacturing and transportation

To support its commodity-heavy operations, S. Alam Group has invested in transport and logistics assets. It has purchased 20 ships from Western Marine Shipyard for approximately 2.5 billion BDT, strengthening its capacity to move bulk cargo and raw materials along coastal and international routes.

Complementary businesses such as Bering Sea Lines, Evergreen Shipping Ltd and Sonali Cargo Logistics (Pvt.) Ltd help integrate shipping with land-based logistics, while S. Alam Luxury Chair Coach Services Ltd extends the group’s brand visibility into intercity passenger transport.

2.6 Media: Ekushey Television and Nexus Television

Media ownership has extended S. Alam Group’s presence into the public discourse sphere. In 2015 the group effectively took control of Ekushey Television (ETV), one of Bangladesh’s pioneering private television channels. It later launched Nexus Television in 2021 as a satellite TV channel.

These moves create:

• Brand-building channels for the conglomerate and its various products.
• Influence over narrative in news and entertainment markets.
• Diversification of revenue into advertising and media production.

At the same time, the Ekushey Television story has become a case study in political, legal and reputational risk, which is explored in a later section.

2.7 Banking and financial services

S. Alam Group’s most strategically consequential expansion has been into banking and finance. Over the last decade and a half, the group built significant stakes in several Islamic banks and financial institutions, including:

• Islami Bank Bangladesh Limited (IBBL)
• First Security Islami Bank
• Social Islami Bank Limited (SIBL)
• Union Bank Limited
• Global Islami Bank
• Aviva Finance (previously Reliance Finance)
• Reliance Brokerage Services Limited

Key milestones include:

• In 2009, S. Alam Group acquired Oman Bangladesh Leasing and Finance Limited, with founder Mohammed Saiful Alam becoming chairman.
• From 2013 onward, the group was closely involved in the transformation of Islami Bank Bangladesh Ltd, which had faced international scrutiny over alleged links to suspicious transactions and extremist financing. After a leadership overhaul in 2017, the bank reconstituted its board and management and shifted away from any perceived political or ideological alignment.
• By 2020, IBBL had become a major channel for remittances, handling over 30% of Bangladesh’s total remittance inflows, underscoring its systemic importance.
• In 2017, S. Alam Group acquired around 50% of Social Islami Bank Limited through 19 subsidiaries. This drew attention because the Banking Company Act 1991 caps direct shareholding in a bank at 5% for any individual or entity without specific central bank approval.
• In January 2023, S. Alam-controlled IBBL received an emergency liquidity injection of 80 billion BDT from Bangladesh Bank, reflecting both the bank’s systemic importance and the stress associated with concentrated exposures.

Through these stakes, S. Alam Group gained access to large volumes of credit and financial flows, significantly amplifying its leverage and influence within Bangladesh’s financial system.

3. Economic Contribution and Positive Impact

Despite the controversies, it is important to acknowledge the scale and positive aspects of S. Alam Group’s economic footprint.

3.1 Employment and industrial capacity

The group directly employs more than 20,000 people across Bangladesh. Indirectly, its supply chains support thousands more jobs in sectors such as agriculture, transport, construction, retail and services.

Its investments in cement, steel, power and shipping have:

• Expanded Bangladesh’s industrial base and helped meet rapidly growing demand in construction and manufacturing.
• Enabled import substitution in processed food and industrial inputs.
• Positioned the country to take on more large-scale infrastructure and export-oriented industrial projects.

In 2022, S. Alam Group was among a handful of Bangladeshi conglomerates that each imported over 1 billion USD worth of raw materials, alongside groups like Abul Khair, Bashundhara, BSRM and Meghna Group of Industries. This underscores its role in keeping domestic factories supplied and export pipelines running.

3.2 Financial intermediation and remittances

Through its banking interests, S. Alam Group plays a key part in financial intermediation, especially in the Islamic banking segment. The transformation and growth of Islami Bank Bangladesh Ltd into a top remittance-handling institution has been particularly impactful for:

• Overseas workers sending money back to their families.
• Rural and semi-urban communities that rely on sharia-compliant banking products.
• Small and medium enterprises that access financing via Islamic banking channels.

3.3 Philanthropy and social initiatives

S. Alam Group has also invested in social causes, with a focus on education and healthcare support:

• The group has funded and supported the establishment of universities, colleges and schools in different parts of Bangladesh, aiming to expand access to higher education and technical training.
• During the COVID-19 pandemic in 2020, S. Alam Group donated medical equipment to hospitals under Chattogram City Corporation, including ICU ventilators and high-flow nasal cannulas, and distributed around 2,000 units of personal protective equipment for healthcare workers.

These initiatives have helped bolster the group’s image as not just a profit-driven conglomerate, but also a contributor to community welfare and human capital development.

4. Key Controversies and Regulatory Scrutiny

Alongside its growth and contributions, S. Alam Group is also associated with some of the most serious corporate and financial controversies in recent Bangladeshi history. Understanding these issues is essential for any realistic assessment of its risk profile.

4.1 High leverage and concentrated bank exposure

A central thread running through concerns about S. Alam Group is the scale of its borrowing, much of it reportedly from banks in which the group itself holds significant ownership stakes.

• A report by New Age alleged that S. Alam Group had taken loans worth around 300 billion BDT from Islami Bank Bangladesh Ltd, although the bank publicly denied the figure.
• Ahsan H. Mansur, director of the Policy Research Institute of Bangladesh, has been cited as estimating that the group has accumulated about 800 billion BDT in loans from various banks through its subsidiaries.
• Former finance minister Abul Maal Abdul Muhith announced an investigation into the group’s borrowing, noting concerns that loans from some banks were being used to finance takeovers of others.
• The High Court has ordered probes into alleged loan irregularities and related issues at S. Alam-controlled banks, including Social Islami Bank Limited, First Security Islami Bank and Islami Bank Bangladesh Ltd.
• Bangladesh Bank has provided emergency liquidity injections to several Islamic banks linked to the group, underscoring systemic risk concerns.

For lenders, investors and regulators, these dynamics raise red flags about related-party exposures, concentration risk and the robustness of bank governance.

4.2 SS Power and alleged 815.78 million USD capital flight

One of the most serious allegations against an S. Alam concern involves the coal-based SS Power project in Chattogram. According to an investigation by The Daily Star, between 2019 and 2023, approximately 815.78 million USD (around 10,000 crore BDT) was transferred out of Bangladesh through two letters of credit (LCs) ostensibly opened to import capital machinery for the 1,320 MW power plant.

The investigation reported that:

• The LCs were meant to fund imports of items such as boiler structures, generators and transformers for SS Power.
• No corresponding capital machinery ever entered Bangladesh, as confirmed by checks with Chattogram Customs.
• Despite the absence of imports, payments were processed to SS Power’s Chinese partner SEPCO on the basis of fake invoices and fabricated documents uploaded via Rupali Bank, which managed the LCs.
• 184 fraudulent invoices were allegedly uploaded to the Bangladesh Bank server, some carrying future dates, mismatched import permissions and even export-related documents.
• 88 of these invoices were linked to 50 companies with no apparent connection to SS Power or SEPCO.
• Rupali Bank confirmed that 815.78 million USD had been transferred, while SS Power’s CFO denied wrongdoing.

The case has highlighted serious gaps in oversight across banks, customs and the central bank, and forms a major pillar of current scrutiny of S. Alam Group’s financial conduct.

4.3 Banshkhali power plant protests and worker deaths

The Banshkhali coal plant has also drawn attention for labour and human rights issues. On 17 April 2021, at least five workers aged between 18 and 25 were killed when police opened fire on protesting workers at the plant site. Over 20 others were injured.

The workers had reportedly been demanding:

• Payment of overdue wages and benefits.
• Accommodation of prayer breaks and iftar time during Ramadan.

Following the incident:

• The High Court directed S. Alam Group to pay 500,000 BDT in compensation to each of the families of the workers who were killed.
• A case was filed under the Digital Security Act against a local engineer, leading to further criticism from rights groups who saw it as an attempt to suppress dissent around labour conditions.
• Environmentalists and civil society groups renewed calls to halt or re-evaluate the project, citing both environmental risks and social tensions.

This episode has become a symbol of the group’s social risk profile and has influenced how international observers view labour standards in large industrial projects in Bangladesh.

4.4 Market conduct in edible oil

In 2022, Bangladesh’s Directorate of Consumers' Rights Protection found that an S. Alam edible oil mill had stopped selling bottled soybean oil during a period of market shortage, a move that contributed to price hikes.

For a conglomerate so central to national food supply chains, this raised concerns about:

• Market dominance and potential abuse of market power.
• Consumer protection in essential commodities.
• Alignment between business strategy and the public interest in food affordability.

4.5 Media ownership dispute and the Ekushey Television saga

The group’s involvement with Ekushey Television (ETV) is another major source of controversy, blending media freedom, politics and corporate control.

Key events include:

• On 5 January 2015, ETV broadcast a live speech by BNP leader Tarique Rahman during a period of intense political crisis.
• ETV chairman Abdus Salam was arrested the next day on pornography charges, which the Committee to Protect Journalists has described as a pretext linked to the airing of the speech. He was later jailed on sedition charges.
• On 25 November 2015, S. Alam Group took control of ETV following a process described in multiple accounts as a hostile takeover, allegedly orchestrated under orders from then Prime Minister Sheikh Hasina and overseen by officers from military intelligence (DGFI) and other security bodies.
• Awami League politician Abdus Sobhan Golap, a former aide to the prime minister, was made managing director of ETV after the takeover.
• After the July 2024 uprising and the subsequent fall of Sheikh Hasina’s government, Abdus Salam returned to ETV, reclaimed control and dismissed S. Alam-appointed staff. He publicly alleged that he had been pressured to sell shares in exchange for release from prison and that new shares were later issued in S. Alam’s name to create majority control.

Even as the full legal picture is still being contested, the episode illustrates the conglomerate’s perceived proximity to ruling power structures and the reputational risks that can accompany politically mediated acquisitions.

4.6 Dispute with the interim government and threat of international arbitration

In the wake of Prime Minister Sheikh Hasina’s resignation in August 2024 and the formation of an interim government under Muhammad Yunus, S. Alam Group became a central focus of an official drive against alleged financial crimes by major conglomerates.

A committee was formed to investigate suspected financial misdeeds involving groups including S. Alam, Beximco, Nabil, Summit, Orion, Gemcon, NASSA, Bashundhara, Sikder and Aramit.

On 18 December 2024, S. Alam Group chairman Mohammed Saiful Alam issued a formal notice of dispute to the interim government, signalling his intention to pursue international arbitration under the 2004 Bangladesh–Singapore Bilateral Investment Treaty (BIT). Key elements include:

• Alam and his family acquired Singaporean citizenship in 2022 after renouncing Bangladeshi nationality in 2020, positioning themselves as foreign investors under the BIT.
• The notice alleges unlawful harm to investments through actions by Bangladesh Bank and other authorities, including asset freezes, travel bans and regulatory interventions targeting S. Alam-controlled banks.
• The family claims they were subjected to money-laundering investigations and other measures without due process or prior notice.
• Legal counsel from Quinn Emanuel Urquhart & Sullivan argue that these steps have destroyed the value of their investments and violate protections enshrined in both the BIT and Bangladeshi law.
• The notice gives the government six months to reach an amicable settlement before formal arbitration proceedings are initiated.

This dispute significantly raises the stakes: it not only affects S. Alam Group’s future, but could also set precedents for the treatment of foreign investors, dual citizens and politically connected conglomerates in Bangladesh.

5. Risk Profile: What Stakeholders Should Consider

Bringing these threads together, S. Alam Group presents a complex mix of scale-driven opportunity and heightened risk. For banks, investors, suppliers and partners, the key risk dimensions include:

5.1 Regulatory and legal risk

• Ongoing investigations into alleged loan irregularities and money-laundering cases.
• High-profile scrutiny from the High Court, Bangladesh Bank and government committees.
• Potential future outcomes of the BIT-based arbitration process, which could reshape the group’s asset base and cross-border status.

5.2 Financial transparency and leverage

• Allegedly large, concentrated exposures to group companies within group-influenced banks.
• Questions about the quality and documentation of certain large transactions, especially those linked to SS Power.
• Reliance on emergency liquidity support, which signals systemic importance but also financial stress.

5.3 ESG and reputational risk

• Labour rights and safety concerns highlighted by the Banshkhali incident.
• Environmental impacts and local opposition to coal-based power plants.
• Consumer-rights issues, such as the suspension of edible oil sales during shortages.
• Media freedom and governance issues connected to the Ekushey Television saga.

5.4 Political exposure and governance

• Perceived close alignment with the previous Awami League government, potentially creating vulnerability under new political configurations.
• Allegations that security agencies and political figures were involved in facilitating corporate acquisitions.
• Complex ownership structures spanning local and foreign jurisdictions following the Alam family’s Singapore citizenship.

5.5 Operational and sectoral concentration

• Large, capital-intensive bets on coal power in an era of increasing climate and environmental scrutiny.
• Significant exposure to regulated sectors (banking, energy, media) where policy shifts can be rapid and impactful.
• Dependence on imported raw materials and international shipping, which can be affected by currency volatility and global shocks.

6. Due Diligence: Questions for Lenders, Investors and Partners

For counterparties looking to work with or extend credit to S. Alam Group or its affiliates, robust due diligence is essential. Some practical, benefit-oriented questions to ask include:

6.1 Financial and credit assessment

• What is the current debt profile of the specific S. Alam entity, and how much of that debt is from related-party banks?
• Are there audited financial statements available from reputable firms for the last several years?
• How are inter-company loans and guarantees structured within the group?
• What is the entity’s foreign-currency exposure and hedging strategy for imports and external debt?

6.2 Legal and compliance checks

• Is the company or any of its directors currently under investigation or subject to regulatory orders?
• Have any of its key facilities, accounts or assets been frozen or restricted by regulators?
• What internal controls exist to prevent trade-based money laundering and LC abuse?

6.3 ESG and stakeholder impact

• How does the group manage worker safety and grievance mechanisms at its industrial sites?
• What are the environmental management plans for high-impact projects like Banshkhali?
• How does the company ensure fair market conduct in essential consumer goods such as edible oil and sugar?

6.4 Governance and political exposure

• Who are the ultimate beneficial owners of the relevant entity, and how are they related to political officeholders past or present?
• Is there an independent and functional board of directors with real oversight authority?
• How might shifts in political leadership or policy affect licences, contracts or regulatory treatment?

Clear, documented answers to these questions can help counterparties tap into the advantages of dealing with a large, integrated conglomerate while also actively managing exposure to its risk factors.

7. Outlook: Balancing Ambition With Accountability

S. Alam Group’s story encapsulates both the promise and the pitfalls of rapid, conglomerate-driven growth in an emerging economy.

On the positive side, the group has:

• Built significant industrial capacity in food processing, cement, steel and power.
• Contributed to employment, remittances and financial inclusion through its banking interests.
• Invested in education and health-related philanthropy, particularly in Chattogram and other regions.

On the risk side, S. Alam Group faces:

• Intense regulatory scrutiny at home and rising attention from international observers.
• Serious allegations of financial misconduct, including the reported 815.78 million USD SS Power LC scandal.
• Complex political and legal entanglements around its banking, media and power ventures.

The medium-term outlook for the group will likely hinge on a few critical factors:

• How transparently it cooperates with ongoing investigations and strengthens internal compliance.
• Whether it can de-leverage and diversify funding sources away from group-linked banks.
• Its ability to improve labour, environmental and community relations at sites like Banshkhali.
• The outcome of its dispute with the interim government and any subsequent arbitration.

If S. Alam Group can pair its considerable scale and operational capabilities with stronger governance, clearer transparency and a more stakeholder-centric approach, it has the potential to remain a powerful driver of Bangladesh’s industrial and financial development. For now, however, any engagement with the conglomerate must be informed by both its impressive footprint and the serious, well-documented risks that surround it.

For policymakers, regulators, investors and citizens alike, S. Alam Group serves as a crucial test case in how Bangladesh will balance growth, accountability and fairness in the next phase of its economic journey.