The best way of contributing to country’s economic development, employment generation and social welfare is to invest in business, said Syed Manzur Elahi, Chairman of the Apex Group. He believes that if someone wants to change the economy of a family or country, he/she should become an entrepreneur.

He made this observation in an interview with the daily sun recently.

Speaking about the start of his business, he said he was acquainted with a French businessman, named Raymond Clere. He first saw him at a party in April 1972. They both liked each other. The businessman asked about his profession. In reply, he introduced himself to be the second top official at British-American Tobacco Bangladesh. The foreigner was involved in tannery business. Manzur was startled to hear that tannery was his business. In fact, he had no idea about this business. However, Raymond gave him some idea. He used to import rawhide from Bangladesh.

During the War of Liberation of Bangladesh in 1971, all ships in Chittagong port was capsized by Indian air strike so that Pakistani occupation force cannot use those. As such, the French businessman used to carry the wet blue leather to his country by chartered planes and bring tannery treatment chemicals in Dhaka and sell it. But Manjur did not feel any interest in this business, even though he was obsessed with business ideas since childhood.

“My father Sir Syed Nasim Ali was Chief Justice of the undivided Bengal while my elder brother SA Masud Elahi was Chief Justice of Calcutta High Court. Although judgeship and advocacy were my ancestral profession, I was inclined to be an industrialist. The idea of business was imbedded in my mind during childhood,” he said.

In 1957 or 1958, a life-changing event occurred for him. He was a ninth grader in the Boarding School at Ranchi in India. During summer holiday, one of his German friends invited him to Tata City. Instead of visiting his parents, he went there. Many of his friends used to live in the place. It was a small city but industrial hub. The town was dotted with mills and factories of Tata Group. It is hard to believe that the place saw iron and steel industries in 1880. The industries were in operation with German technical supports. The city was clean. It was not under any municipality of the Indian government, rather it was under direct supervision of Tata management. That visit to the Tata city shaped my dream to become an industrialist.

Replying to a query, he said he was encouraged to start business after reading biography of Tata.

He collected three-four books on Jamsetji Tata, an Indian entrepreneur who founded the Tata Group. Tata is an idol of uncompromising business entity and corporate culture. It expanded its business to all sectors, including hotel. “I was imbued with their Corporate Social Responsibility (CSR). They established Indian Science Academy during the British colonial regime. There were many other business tycoons, but Tata was different.”

Tata Management Institute imparts training to the best selected graduates in the country. After obtaining training and degree, the graduates can join Tata. The Group is contributing to economic and social development at home and abroad. “Encouraged by Tata, I decided to construct mills and industries, employ several thousand people and support their family members. In the early life, I had to depend on job to survive. But I always believed that business is the only way to contribute to economic development and employment generation of the country.”

Recalling Raymond’s contribution to his life, he said, “Raymond proposed him to be a partner of his business. Raymond was poor in English. But Manzur had sound academic background. He was lauded for his academic performance and results. He was a student of St. Xavier’s College and stood seventh out of 22,000 students under Calcutta University. He obtained 80 percent marks with distinctions. Later, he obtained post graduation degree in Economics from Dhaka University. In reply to Raymond’s proposal, he expressed his sheer ignorance of the leather business. But Raymond wanted to take him to France so that he could gather knowledge. Manzur wanted to know why Raymond was showing so much concern for him. Raymond said his old age did not permit him to undertake continuous plane journey and hard labour. He wanted Manzur to look after shipment of his products and keep accounts. He asked Manzur to work with him on the basis of commission. Manzur thought the business to be highly profitable and source of huge earning.

After returning home, Manzur sought opinion of his wife Nilufar Manjur. She lost her tamper. She is known as Principal of Sunbeams School. To address economic crisis in the newly liberated Bangladesh, Father of the Nation Bangabandhu Sheikh Mujibur Rahman reduced top ceiling of salary to Tk 20,000. Manzur along with his wife and two children fell in trouble. His salary came down from Tk 90,000 to Tk 15,000 due to revised ceiling. His wife did not allow him to start business. She argued that the new ceiling not only affected Manzur’s family but also other people. She opined that starting business without prior knowledge would plunge the whole family into a deep crisis. She suggested him not to push two minor sons Syed Nasim Manzur and Syed Munize Manzur to an uncertain future. Manzur’s brothers, who brought him up, opposed the business plan.

They had a negative impression about businessmen that time. They tried to convince him on the pretext that none of their family members was involved in the business. They had a perception that businessmen were involved in tax dodging and other irregularities. At the age of four, Manzur lost his father. His mother Sharifa Alia managed everything. He did not feel absence of his father because of her extraordinary support and care. Besides, his brothers provided him with logistic supports and affection. They ensured good education for him. So, he could hardly encounter them and go against their will.

Yet he did not hesitate to quit the job.

Syed Manzur Elahi said his father-in-law Dr Mafiz Ali Chowdhury extended all-out support to him during the critical time. In 1949, Mafiz obtained doctorate degree in applied chemistry from the USA. He went to the USA for higher study under the government scholarship. He was inducted in the cabinet in 1973. He got the portfolio of natural resources, scientific and technical research and atomic energy. He was a versatile talent. He gave his consent to Manzur’s plan. He checked business profile of Raymond. He convinced her daughter. Then Manzur gave up the job on his 30th birthday on September 28, 1972.

It was very challenging for an official of British-American Tobacco to quit because the company used to provide everything, including bed sheets and electric bulbs for home.

Speaking about initial capital of business, Manzur said he started with one month’s salary of Tk 15,000. Later, he got more money from the company as provident fund and pension. In order to fully concentrate in business, he advised his wife to run the family by taking up a job. She joined Maple Leaf International School. But her salary was not enough to meet family expenditure. Manzur had to contribute too.

Up until that time, tannery business was dominated by businessmen from Punjab. After liberation, the government nationalised the business and formed corporation. During the rule of Ziaur Rahman, tannery was given to private sector. Manzur bought Orient Tannery along with factory and three bighas of land at Tk 12,22,222. He was the highest bidder in the tender.

And yet he was not capable of running the business due to lack of money. He was even unable to pay salaries of 60 employees. He was looking for bank loan but bank officials refused to give him money without mortgage. But Manzur had no personal property. Finally, he got the loan from State Bank of India in 1975.

Initially, he had to work hard for seven-eight years. He thinks that if anybody would like to run business honestly, he must work hard. He started to export rawhides. In 1982, he decided to export the hide. In order to process the hide, he needed to invest more. He turned Apex into a public limited company.

Business is all about taking risk, Manzur was not hoping for any exception for his company. Apex Tannery experienced financial crisis trice. Recalling his experience of taking risk, Manzur said, “Once the price of raw goods suddenly went up very high. But we had signed deals with foreign companies at according to previous lower rate. If we export raw goods at this rate, not only my company, the whole Hazaribagh area will count big losses. All other companies except Apex told foreign buyers that they would not export goods without a price hike. But we did not renege on our commitments. It is true we counted big loss, but it cemented our reputation abroad. As a result, we managed to attract more buyers.”

He further said, “Reputation, hard work and keeping up the commitments are asset in business, while banks are the best friends. So, I always say that pay back your loan as per the commitment. And when your company is an export-oriented one, you must fulfil your commitments which you made to the foreign buyers. ”

At the outset, Apex used to export 2-3 lakh square feet goatskin hide annually. Now, the export volume increased to 20 lakh square feet, 10 lakh cowhide and  goatskin each. Apart from exporting hide, Apex started producing footwear and other items made of leather.

When he took sample of his finished products, which were of international standard, to Europe, the businessmen there did not believe it to be product of his company. They though it was Indian sample. Manzur had to overcome those barriers. He claimed to have contributed to inclusion of Bangladesh footwear in leather goods map and international market.

About creation of Apex Footwear, he said Japan was and still is a good market for his product. A Japanese importer suggested him to manufacture shoes and export it to Japan. In 1990, Apex Footwear came into being. I used to supply shoes to the Japanese businessman. Business was good and growing. He had around 1,000 shops. But soon Japan plunged into an economic crisis in 1992. All of his shops were closed. I was in trouble, but I created good market in Europe.

Replying to a query as to how his company was named Apex, he said “Apex means the top or highest part of something. Our company is in the top position in Bangladesh’s leather sector. I believe in number one.”

Manzur said his company came to know from market survey that purchasing capacity of people has increased. This prompted Apex to go for producing high brand shoes with various exquisite designs. Many people think that many items of Bata are made of plastic and not comfortable.

Average price of a pair of Bata shoes is Tk 290, but that of Apex is Tk 900. The Apex shoes are costly because of its design and quality. Apex has received huge response and inspiration from customers. People requested Apex to produce other items using costly leather.

Giving example of the increase in people’s purchasing capacity, he said, “Five years ago, we started to send products in a small remote town.

Initially, we sent cheap products thinking that people would not afford any item costlier than Tk 600-700. But it was wrong perception. Customers rejected cheap products. Manager of the branch was called to the head office to explain the situation. He said customers want costly products. I was confused. I asked manager how will he sell costly item if customers do not purchase cheap product? He said people do not want to buy Bata like cheap products. They want quality products, not anything made of plastic. Later, we sent quality products worth Tk 1,200-1,300 and sale index showed upward trend.”

Apex ensures service and quality of products keeping in mind its competition with Bata.  Bata employees are salaried but Apex employees get commission. Their income depends on their sale. Bata decorates its outlets in every two-three years. We also follow it. We bring variety in products. Customers do not like same product and same design repeatedly. “We have in-house designers to bring changes in products. There are some footwear design centers in India. We are trying to work with them. Apex is also thinking of establishing such a centre jointly with Italian companies. Chinese and Indian designers are not as creative as the Italians.”

Apex became group of company gradually, having 9,000 employees now. About Apex Pharma, he said pharmaceutical business is very important but challenging. Whenever people are sick, they have to consult doctors. Market of medicines of a company largely depends on the doctors.

Speaking about Apex’s joint venture business, Manzur said that Blue Ocean Footwear is a joint venture with Taiwan.  He bought another company named Landmark which exports shoes to Japan. Manzur is chairman of Grey Advertising Bangladesh Ltd. He has share in the company.