Usmania Glass Factory resumes production after one year

Usmania Glass Sheet Factory, a state-owned glass manufacturer, resumed production from August 6, after one year of suspension triggered by a fire accident.

In a declaration on Monday, the publicly traded company informed the Dhaka Stock Exchange (DSE) that they returned to production upon completion of necessary repair works.

Thanks to the development, the company’s share price shot up 9.89 per cent to stand at Tk 68.9 at the DSE on Monday.

Earlier in the last year, its share price fluctuated from Tk 39.70 to Tk 72.60.

The glass manufacturer had been shut for around one year since June 24, 2020, when it endured a massive fire accident.

Situated at Kalurghat of Chattogram, Usmania Glass Sheet Factory started production of white colored glass sheets in 1959. It has served as one of the major glass suppliers of country for long.

A total of 300 people are now employed in Usmania Glass Sheet Factory.

In the private sector, PHP Group, Nasir Group and MEB Group have ventured into glass production and are currently producing high quality glasses with their modern equipment.

When the private companies are increasing their production capacity and drawing high profit regularly, the losses of the state-owned company are increasing every year.

According to the annual report, the company set a target to produce 145 lakh square feet glass sheet in FY20, but the actual production stood at 109 lakh square feet, which is 75.65 per cent of the production target.

On the other hand the sale target of the factory was 145 lakh square feet, but the actual sale was 92.89 lakh square feet, which is only 64.06 per cent of the target.

Usmania Glass Factory has incurred losses of Tk 42.73 crore in total in the last six financial years since 2014-15.

The authorised capital of the listed company is now Tk 50 crore, when its paid up capital is Tk17.41 crore.

It reported earnings per share (EPS) of Tk 7.21 for the FY20.

As on June 30 this year, the government holds 51 per cent shares of the company, while public hold 36.25 per cent, institutes 10.75 per cent and sponsor directors hold 2 per cent shares.

The ‘Z’ category company didn’t give dividend in the last few years. For the last time in 2018, it disbursed 10 per cent cash dividend to the shareholders.

Currently, the company has no surplus reserve money, while its deficit is Tk 32 crore.