S. Alam Group: Inside the Rise, Reach and Risks of a Bangladeshi Mega‑Conglomerate

S. Alam Group is one of the most closely watched business names in Bangladesh. Founded in 1985 in Chittagong by industrialist and philanthropist mohammad saiful alam, the group has grown into a sprawling conglomerate of more than 200 companies spanning food and allied products, cement and steel, power generation, shipping, properties, transportation and financial services.

With reported total equity of about 140 billion BDT (roughly 1.3 billion USD) and more than 20,000 employees, S. Alam Group sits at the intersection of Bangladesh’s ambitions for rapid industrialisation and the challenges of overseeing highly concentrated corporate power. It supplies everyday essentials such as edible oil and refined sugar, builds critical infrastructure like cement and steel, and is linked to major power projects including the 1,320 MW Banshkhali coal plant.

At the same time, the group has in recent years faced intense public and regulatory scrutiny over alleged loan concentration, questions around banking governance, an alleged 815.78 million USD capital flight case connected to power plant imports, worker deaths during power plant protests, media ownership disputes, and a high‑stakes international investment dispute with Bangladesh’s interim government.

This article walks through S. Alam Group’s growth story, sectoral footprint and contributions to Bangladesh’s economy, while also outlining the major allegations and investigations that shape how stakeholders now assess its future.

From Local Trader to 200‑Company Powerhouse

S. Alam Group’s journey mirrors Bangladesh’s own shift from a largely agrarian economy to a fast‑growing manufacturing and service hub.

Founded in 1985 in Asadgonj, Chittagong, the group began as a trading and industrial venture serving local markets. Over four decades, it has:

• Expanded into more than 200 companies under a diversified holding structure.
• Built a workforce of over 20,000 people across Bangladesh.
• Organised its activities into three broad pillars: finance, industrial operations and manufacturing, and commercial services and trading.

This scale allows the group to integrate value chains from basic commodities to complex financial products. It also means that decisions taken at S. Alam Group can ripple through multiple corners of Bangladesh’s economy, from consumer prices to credit markets.

A Diversified Portfolio Anchored in the Real Economy

Unlike purely financial holding companies, S. Alam Group has a deep footprint in the tangible sectors that underpin day‑to‑day economic life. Its companies produce food staples, building materials, and industrial inputs used across Bangladesh.

Through these platforms, S. Alam Group plays a visible role in:

• Food security: Large‑scale production and import of edible oil and sugar support everyday consumption needs, especially in urban centres.
• Infrastructure development: Cement and steel from the group’s mills feed into housing, roads and industrial construction.
• Trade and logistics: Shipping lines and cargo operations help move goods in and out of the country, underlining Bangladesh’s export ambitions.
• Urbanisation and tourism: Real estate and hospitality projects tap into rising demand for housing and leisure.

In 2022, S. Alam Group was among five Bangladeshi conglomerates that reportedly imported more than one billion dollars’ worth of raw materials in a single year, underlining both its scale and its centrality to industrial supply chains.

Banking and Financial Services: Reach, Reform and Risk

One of the most distinctive — and debated — aspects of S. Alam Group is the depth of its involvement in Bangladesh’s banking sector.

Building a banking footprint

Over time, S. Alam Group and its chairman have developed significant equity stakes in multiple financial institutions, including:

• Islami Bank Bangladesh Limited
• First Security Islami Bank
• Union Bank Limited
• Global Islami Bank (formerly NRB Global Bank Limited)
• Social Islami Bank Limited
• Oman Bangladesh Leasing and Finance Limited (acquired in 2009)
• Aviva Finance (previously Reliance Finance) and Reliance Brokerage Services Limited

These holdings give S. Alam Group outsized influence over how credit and Islamic banking products reach households and businesses. In principle, such integration can accelerate project finance, unlock capital for infrastructure, and expand shariah‑compliant financial inclusion.

Islami Bank reforms and remittance leadership

Islami Bank Bangladesh Limited (IBBL) has been a focal point. Following international concerns in 2012 about some of the bank’s historical transactions and links with banned organisations, the Bangladeshi authorities moved to overhaul its governance in 2017. Key changes included:

• Restructuring the board and management.
• Installing a government observer.
• Shifting away from alignment with any particular political or ideological group.
• Reforming recruitment to encourage more diversity among staff and leadership.

Under this new configuration, which included S. Alam‑linked leadership, IBBL strengthened its position as a major remittance channel. By 2020, it reportedly handled over 30 percent of Bangladesh’s total remittance inflows, providing a crucial lifeline for millions of families who depend on income from abroad.

Shareholding limits and concentration concerns

The speed and structure of S. Alam Group’s expansion in banking have, however, drawn intense scrutiny.

In 2017, the group acquired around 50 percent of Social Islami Bank Limited’s shares through 19 subsidiaries. Observers pointed out that this structure appeared to contradict Bangladesh’s Banking Company Act, 1991, which generally caps direct shareholding in a bank by any individual or company at five percent without specific central bank approval.

Separately, media reports and analysts have alleged that S. Alam‑linked entities accumulated very large loan exposures across multiple banks. Estimates by some commentators have run into hundreds of billions of taka, though the group and some banks have disputed specific figures. The then finance minister publicly indicated in 2017 that the government would look more closely at the group’s debt records and financing sources.

By late 2022 and 2023, concerns about liquidity and loan quality in several Islamic banks associated with S. Alam Group prompted heightened regulatory attention. Bangladesh Bank injected additional funds — including an emergency 80 billion taka facility for Islami Bank Bangladesh — to stabilise the system. The High Court also ordered an investigation into alleged loan irregularities at some of these banks.

For Bangladesh’s financial stability, the key policy question is how to harness the benefits of large, well‑capitalised sponsors in banking while ensuring robust governance, arm’s‑length lending practices, and strict compliance with ownership and exposure limits.

Powering Growth: The 1,320 MW Banshkhali Coal Power Plant

Energy is another pillar of S. Alam Group’s growth strategy. One of its most significant projects is the 1,320 MW coal‑fired power plant in Banshkhali, Chittagong, developed through SS Power 1 Ltd and SS Power 2 Ltd in partnership with Chinese firm SEPCO3.

Strategic value for Bangladesh’s grid

Bangladesh has long struggled with power shortages and the need for reliable base‑load generation to support factories, ports and urban centres. From an energy security and industrial planning standpoint, the Banshkhali plant offers:

• Large‑scale base‑load capacity to reduce load‑shedding and support industrial operations.
• Diversification of supply away from an over‑reliance on imported oil and gas.
• Job creation during construction and operation in a coastal district with limited industrial opportunities.

The plant began commercial operation in 2023, contributing materially to the national grid.

Protests, worker deaths and environmental concerns

The Banshkhali project has also become a flashpoint for social and environmental debate:

• Local protests: Environmentalists and residents have opposed the plant over concerns about air emissions, coal handling, impacts on livelihoods and broader climate implications.
• Worker fatalities: On 17 April 2021, police opened fire during a protest by workers demanding payment of dues and breaks for prayer and iftar during Ramadan. Five workers, aged between 18 and 25, were killed and more than 20 injured. The High Court later ordered S. Alam Group to pay 500,000 taka in compensation to each of the deceased workers’ families.

Beyond the immediate tragedy, the incident highlighted the importance of robust labour relations, clear communication around working conditions, and careful handling of protests at large industrial sites.

For investors and policymakers, Banshkhali encapsulates a wider dilemma: how to balance urgent development and energy needs with community engagement, labour protections and environmental standards in line with emerging global expectations.

International Expansion and Singapore‑Linked Investments

As S. Alam Group scaled up domestically, it also looked outward. The group has made notable investments in Singapore and engaged increasingly with international partners, particularly in shipping and power.

According to public reports, Chairman Mohammed Saiful Alam and his family renounced Bangladeshi citizenship in 2020 and obtained Singaporean citizenship in 2022. This shift is significant for two reasons:

• It positions key shareholders within a jurisdiction known for investor‑friendly regulation and treaty protections.
• It creates new legal avenues — such as bilateral investment treaties — through which the family can contest actions by Bangladeshi authorities affecting their assets and investments.

These international linkages became highly visible in late 2024, when S. Alam Group’s leadership escalated a dispute with Bangladesh’s interim government to the international stage (discussed in more detail below).

Philanthropy and Social Investments

Alongside its commercial activities, S. Alam Group positions itself as an active contributor to social development, particularly in education and public health.

Education initiatives

The group has supported the establishment and operation of various educational institutions, including universities, colleges and schools. Through scholarships, infrastructure support and direct funding, these initiatives aim to:

• Expand access to higher education for students from different regions.
• Build a skilled workforce for Bangladesh’s industrial and service sectors.
• Strengthen regional hubs like Chittagong as centres of learning and innovation.

COVID‑19 response

During the early stages of the COVID‑19 pandemic in 2020, S. Alam Group provided equipment and support to hospitals in and around Chattogram. Its contributions included:

• ICU ventilators and high‑flow nasal cannulas for oxygen support.
• Thousands of pieces of personal protective equipment (PPE) for doctors, nurses and frontline health workers in facilities under Chattogram City Corporation.

These efforts were part of a broader private‑sector mobilisation that helped Bangladesh’s health system absorb the initial shock of the pandemic.

Allegations, Investigations and Legal Disputes

Despite its contributions to industrial growth and social initiatives, S. Alam Group is also at the centre of some of Bangladesh’s most serious ongoing corporate controversies. While many issues are still being investigated or litigated, they raise important questions about governance, regulatory capacity and the risks of concentrated economic power.

Loan concentration and banking oversight

Over the past decade, analysts and segments of the media have alleged that S. Alam Group and its associated companies built up very large loan exposures across multiple banks, including institutions where the group had major shareholdings.

Key points that have emerged from public reporting include:

• Claims that S. Alam‑linked entities borrowed hundreds of billions of taka across several banks, though exact figures vary and some banks have disputed specific numbers.
• Concerns from policymakers that loans from certain banks may have been used to finance the group’s acquisition of stakes in other financial institutions.
• A High Court directive in 2022 ordering investigations into alleged loan irregularities at several S. Alam‑associated banks, including Islami Bank Bangladesh, First Security Islami Bank and Social Islami Bank Limited.
• Liquidity stress at some Islamic banks in late 2022, prompting Bangladesh Bank to inject additional funds into five S. Alam‑linked institutions.

From a systemic risk perspective, the central issue is whether corporate borrowers that also control banks can be effectively constrained by existing rules on related‑party lending and exposure limits. The outcome of ongoing investigations will be critical for shaping future banking regulation in Bangladesh.

Alleged LC misuse and 815.78 million USD capital flight

One of the most serious specific allegations involves foreign currency outflows tied to the Banshkhali coal power project.

Investigative reporting by a leading Bangladeshi daily in 2024 alleged that SS Power Limited, a concern of S. Alam Group, laundered approximately 815.78 million USD (around 10,000 crore taka) between 2019 and 2023. The alleged mechanism was the misuse of two Letters of Credit (LCs) opened for importing capital machinery for the 1,320 MW coal‑based power plant in Chattogram.

According to these reports:

• The LCs were meant to finance imports such as boiler structures, generators and transformers.
• No corresponding machinery was recorded as having entered Bangladesh, yet the funds were transferred abroad.
• Bangladesh Bank reportedly approved LC payments to the project’s Chinese partner, SEPCO, on the basis of invoices and documents that investigators later described as fabricated.
• An internal review found that many invoices had future dates, mismatched import permissions, or were linked to companies unrelated to SS Power or SEPCO.
• Rupali Bank, which managed the LCs, confirmed that funds were transferred but said the data had been uploaded despite there being no actual imports, suggesting involvement of high‑level bank officials.

SS Power’s chief financial officer has denied wrongdoing, and as of early 2025, regulatory and legal processes were still unfolding. Regardless of the final legal outcome, the case has highlighted:

• Vulnerabilities in trade finance oversight.
• The need for tighter coordination between customs, commercial banks and the central bank.
• The reputational stakes for large conglomerates involved in major infrastructure projects.

Worker rights and labour relations at Banshkhali

As noted earlier, the 2021 incident in which five workers were killed by police gunfire during protests at the Banshkhali plant has become a landmark case in Bangladesh’s labour rights discourse.

Beyond the compensation ordered by the High Court, the episode has been cited by worker advocates as evidence of the need for:

• More robust mechanisms for resolving labour grievances before they escalate.
• Clearer standards on working hours, overtime and religious accommodations in industrial facilities.
• Better coordination between private security, law enforcement and employers to avoid lethal outcomes during disputes.

For S. Alam Group, strengthening labour dialogue and safety protocols at all industrial sites could be a key step toward rebuilding trust with workers and communities.

Media ownership and the Ekushey Television controversy

S. Alam Group’s presence in the media sector has also been contentious, particularly around its acquisition of Ekushey Television (ETV), one of Bangladesh’s pioneering private TV channels.

In January 2015, after ETV broadcast a live speech by opposition leader Tarique Rahman during a politically sensitive period, the channel’s then chairman, Abdus Salam, was arrested on pornography charges and later faced sedition charges. Press freedom advocates, including the Committee to Protect Journalists, argued that the charges were politically motivated.

Later that year, in November 2015, S. Alam Group acquired control of Ekushey Television. Subsequent accounts from Abdus Salam and some journalists have described the transaction as a hostile takeover facilitated by state security agencies under the then government. Allegations include:

• Pressure on existing shareholders to sell or relinquish control.
• The issuance of new shares that reportedly diluted existing ownership and gave S. Alam Group a majority stake.
• Political appointees being placed in key management positions at the channel.

Following the political changes of 2024, Abdus Salam returned to Ekushey Television and claimed that the earlier takeover had been engineered using forged documents and coercive tactics. Employees aligned with the previous S. Alam‑backed management were dismissed, and prior staff were recalled.

These events are still contested and politically charged, but they highlight how media ownership can become entangled with broader struggles over governance and freedom of expression. For business groups, they also underscore the reputational complexity of operating in politically sensitive sectors like broadcasting.

Dispute with the interim government and threatened international arbitration

After the resignation of Prime Minister Sheikh Hasina in August 2024 and the formation of an interim government led by Muhammad Yunus, authorities announced probes into alleged financial misconduct involving several major conglomerates, including S. Alam Group.

In this context, S. Alam Group and its controlling shareholders allege that they have been targeted by measures that unlawfully harm their investments. According to a formal notice issued in December 2024 by Chairman Mohammed Saiful Alam and his family:

• Their bank accounts were frozen and travel restrictions were placed on family members without due process.
• S. Alam‑linked banks faced lending restrictions, management changes and cancelled business deals that they describe as arbitrary.
• They were subjected to money laundering investigations without formal notification.

Represented by the international law firm Quinn Emanuel Urquhart & Sullivan, the family has argued that these measures violate protections contained in the 2004 Bangladesh‑Singapore Bilateral Investment Treaty (BIT) and Bangladeshi law. Because the family are now Singaporean citizens, they have invoked their right as foreign investors to seek international arbitration against Bangladesh, giving the government six months to resolve the dispute amicably.

For Bangladesh, the case poses a delicate balancing act between enforcing financial discipline at home and avoiding costly disputes at international tribunals. For S. Alam Group, it represents both a legal strategy and a reputational turning point that could shape how global investors perceive the business environment in Bangladesh.

Market conduct and consumer protection issues

Regulators have also looked at the group’s behaviour in consumer markets. The Directorate of Consumers’ Rights Protection, for example, has reported instances where an S. Alam edible oil mill allegedly halted production or sales during periods of shortage, a move that can contribute to price spikes for essential commodities.

While such allegations require careful verification and legal due process, they underscore why competition and consumer authorities closely monitor large conglomerates, especially those that dominate staple goods markets.

What the S. Alam Story Tells Us About Bangladesh’s Economy

S. Alam Group’s trajectory is about more than one conglomerate. It offers a window into how Bangladesh’s growth model is evolving — and where policy and governance must keep pace.

Positive contributions

On the positive side, S. Alam Group illustrates how local entrepreneurs can assemble large‑scale platforms that deliver concrete development gains:

• Job creation at scale: More than 20,000 direct jobs, plus many more in supply chains and service ecosystems.
• Food and energy security: Production and import of edible oil, sugar, cement, steel and power reduce some of the bottlenecks that once constrained Bangladesh’s growth.
• Financial inclusion: Through Islami Bank Bangladesh and other institutions, S. Alam‑linked entities helped channel a large share of remittances and Islamic banking products to households and businesses.
• Regional development: Investment in Chittagong’s industrial base, logistics and education has reinforced the city’s role as a growth hub.

Systemic challenges exposed

At the same time, the group’s controversies spotlight systemic issues that Bangladesh must address to sustain inclusive and resilient growth:

• Concentration risk in banking: When a single group controls or heavily influences multiple banks while also being a large borrower, traditional safeguards can be stretched.
• Trade finance vulnerabilities: The alleged LC‑based capital flight case shows how complex cross‑border transactions can be misused if oversight is weak.
• Labour and environmental governance: Large industrial projects can deliver huge benefits, but missteps on worker safety, community consultation and environmental protection can erode public trust.
• Intersection of business and politics: Episodes like the Ekushey Television dispute, and the use of international treaties in domestic political transitions, show how corporate power and politics can become deeply intertwined.

Addressing these challenges is not about singling out one conglomerate; it is about strengthening the overall rule‑of‑law and regulatory architecture so that every major business operates within clear, predictable boundaries.

Looking Ahead: Governance, Transparency and the Next Chapter

Where S. Alam Group goes from here will depend on how several parallel processes unfold — regulatory investigations, domestic legal cases, potential international arbitration and the group’s own internal reforms.

For the group, there is a strong strategic case for embracing higher standards of transparency, governance and stakeholder engagement. Steps that could signal a constructive path forward include:

• Enhanced disclosure on group structure, related‑party transactions and consolidated financial exposure.
• Stronger board‑level oversight and independent directors across key companies, particularly banks and listed entities.
• Robust compliance systems for anti‑money laundering, sanctions, and trade finance documentation.
• Proactive labour and community engagement, especially around major industrial projects like power plants.
• Clear separation between media operations and political interests to build credibility with audiences and regulators.

For policymakers and regulators, the S. Alam experience highlights the need to:

• Enforce ownership and exposure limits in banking consistently.
• Upgrade digital monitoring of LCs and cross‑border transactions to detect anomalies in real time.
• Coordinate between courts, central bank, customs and law enforcement on complex financial investigations.
• Engage constructively with major investors, domestic and foreign, to resolve disputes without undermining investor confidence or the rule‑of‑law.

S. Alam Group’s story is still being written. It remains a central player in Bangladesh’s industrial landscape, with the capacity to support jobs, infrastructure and financial intermediation at a scale few others can match. The key question is whether its next chapter will be defined primarily by controversy and legal battles, or by a visible commitment to governance, transparency and sustainable development.

For business leaders, investors and citizens alike, the outcome will offer powerful lessons on how rapidly growing emerging‑market conglomerates can align high ambition with high standards — and in doing so, help unlock the next phase of Bangladesh’s economic transformation.