The Canteen Stores Department (CSD) has been developed through transitory stages starting from the Army Canteen Board which was the first venture initiated after World War I with the purpose of catering primarily for the British forces in the Indian Sub-continent.
Following the liquidation of the Army Canteen Board in 1927-1928, the Canteen Contractors Syndicate Ltd. (CCSL) was formed on the basis of shares assessed on the strength of each unit stationed in India. The initial share capital of CCSL was derived from a call on shares, and this was subscribed by each individual canteen contractor holding the shares assessed for the contract or contracts approved in his favor by the Quarter Master General in India.
The articles of Association of CCSL were drawn up and signed between the Secretary of State for India and the Government of India with reference to the Canteen Contractors Syndicate underlined the provision that in the event of war, the Canteen Contractors Syndicate would be taken over by Government-lock, stock and barrel.
This contingency did eventuate with World War II. Thus in 1942 the Canteen Contractors Syndicate Ltd. became the “Canteen Stores Department – Government of India.” After World War II, from profit accrued, the Government of India in 1947 returned to all canteen contractors their share capital investment on the basis of the Share Register with the agreed final divided on the shares held by each individual canteen contractors.
After the independence of Bangladesh in 1971 the Government continued the functioning of CSD under a board of control headed by the Quarter Master General of Bangladesh Army with the primary objectives of providing entitled personnel of the Armed Forces with standard quality items of day to day use at reasonable prices.