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At a time when the entire world is grappling with how to recover from the adverse effects of the coronavirus pandemic, some 24 publicly traded companies in Bangladesh have declared their intentions to expand business.
According to official statements from the business firms, the total investment amounted to around Tk 5,000 crore in the first eight months of the current year.
Among them, eight companies purchased land for business expansion, while the remaining ones set up new manufacturing units.
Abu Ahmed, a stock market analyst and former Economics Department professor at Dhaka University, told The Business Post that the economy of Bangladesh was not as bad as it should have been due to pandemic.
Apart from the listed companies, conglomerates in the country need to come forward with bold investment to attract more foreign investments, he said.
Prof Abu Ahmed also said the investors in the capital market will, undoubtedly, be enthusiastic about such investments of the listed companies amid the pandemic.
According to the HSBC, Bangladesh’s economy has remained resilient and maintained a strong growth momentum despite disruptions created by the pandemic as consumption propelled growth in the country.
Anwar Galvanizing
Recently, Anwar Galvanizing Limited announced that it would invest Tk 27.37 crore for expansion of its factory at Tongi in Gazipur. Through the investment, the iron-pipe fittings (GI fittings) manufacturer will double its production and reduce dependency on imports.
The company’s board of directors approved the expansion plan with a view to increasing the production by 2,417 metric ton per annum.
Upon completion of the expansion process, the company’s total manufacturing capacity will stand at 4,725 metric tons per annum, up from its present capacity, which is 2,308 metric tons annually.
The expansion project, which will be funded from the company’s own resources and borrowed finance, is expected to be completed by the end of 2022.
Envoy Textile
Last month, Envoy Textile decided to set up a spinning project expansion unit at its existing factory premises with an estimated cost of Tk 176 crore.
The new expansion project will be set up at Jamirdia in Bhaluka, Mymensingh having a capacity of 3,710 metric tons of cotton-polyester-spandex core-spun yarn production per year.
The project is scheduled to be completed by July 2022, subject to a usual business and health environment condition.
Ifad Autos
Ifad Autos Limited signed a land-lease agreement with Bangladesh Economic Zones Authority (Beza) by which the company will expand its manufacturing facilities on a 30-acre land at Bangabandhu Sheikh Mujib Shilpa Nagar.
Tanvir Ahmed, managing director of Ifad Autos, said they chose the industrial city for expanding their manufacturing facilities because Beza has been providing world-class facilities to investors there, a prerequisite for a business to thrive.
The company will start motorcycle assembly plant, lubricant blending and other light engineering factories within the shortest possible time, he added.
According to a Beza press statement, Ifad will invest $ 51 million to set up a car assembly factory, lubricant blending plant, and light engineering industry that will create employment for about 880 people.
Tamijuddin Textile
Tamijuddin Textile will invest Tk 50 crore for balancing, modernisation, and rehabilitation and expansion purposes. The source of the fund will be its own equity and bank loan.
Bangladesh Thai Aluminium Ltd
Bangladesh Thai Aluminium Ltd is going for an expansion of its production capacity by overhauling the existing Extrusion Press-1 and also by installing a new Extrusion Press of 700 MT capacity which will replace the Extrusion Press-2.
As a result, the total production capacity is going to be increased by around 30 per cent which will help boost the company revenue and meet the growing market demand.
BATBC
In July, British American Tobacco Bangladesh Company announced a fresh investment of Tk 322.20 crore in its factory at Savar.
The investment would cater the upcoming export opportunities and create contingency capacity of the tobacco company, it said.
The investment will be funded from internal sources and bank financing based on cash flow of the company, added the disclosure.
Earlier in February this year, the company’s board of directors
approved an investment of Tk 192.5 crore for the expansion of the company’s Savar factory.
“We see great potential in cigarette exports,” Md Azizur Rahman, company secretary of BATBC.
“We have been considering exploring this opportunity but the pandemic pushed our investment plan back,” he said, adding that the investment will be made from the company’s own funds.
Marico Bangladesh
Marico Bangladesh is set to invest Tk 220 crore on a 10-acre plot to set up its third manufacturing unit at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), a Special Economic Zone (SEZ) at Mirsarai in Chattogram.
The factory will mainly produce cosmetics and polyethylene terephthalate (PET) bottles.
Ashish Gopal, managing director of Marico Bangladesh, said: “We are proud to be the ambassador of “Made in Bangladesh” and to enhance this equity in both domestic and international markets. Through the company’s efforts, Bangladeshi consumers will avail themselves of the best-in-class quality products made right here in the country.”
Matin Spinning Mills
In February, Matin Spinning Mills, a subsidiary of DBL Group, declared to expand the production capacity of its yarn unit to 61 tons per day from present 51 tons.
“The board of directors of the company decided to increase the production capacity through the company’s special yarn unit project in addition to the existing capacity of 51 tons per day at a cost of Tk 186 crore,” said the company.
Shasha Denims
In February, Shasha Denims has acquired an additional 18 per cent stake in EOS Textile Mills, an associate of Italian apparel maker. The acquisition was made at a cost of about Tk 21 crore.
Lub-rref (Bangladesh)
Chattogram-based fuel refinery company Lub-rref (Bangladesh) announced that its refinery station would be relocated to its own land while a new refinery project would be built, which will be well sighted within the orbit of KPI-1 Eastern Refinery Limited across the river Karnaphuli.
BEXIMCO
The Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of a Tk 3,000 crore green Sukuk bond in favour of Beximco Limited on June 23 to finance its construction goal and equipment procurement.
As per the company sources, the fund raised from the Sukuk will be used for the construction of two solar projects – Teesta Solar and Korotoa Solar – two subsidiaries of Beximco Power Company, and for financing and refinancing machinery and equipment required for expansion of Beximco’s textile division.
Samorita Hospital
Samorita Hospital’s board of directors has approved the proposal to construct an eight-storied building including basement measuring a total of 15,560 sq. feet (appx.) in the land adjacent to hospital premises. The building space will be used for ETP, Physiotherapy center, Chemotherapy unit, Consultant’s chamber, Canteen and Dormitory purposes.
ACI Motors
ACI Motors is going to receive foreign investment worth Tk 83.99 crore for the expansion of its existing manufacturing facilities.
ACI Motors, a subsidiary of ACI, will get the investment from Commonwealth Development Corporation (CDC); Norwegian state-owned investment fund, Norfund, and FMO (a Dutch investment bank).
Walton
Walton Hi-Tech Industries is investing $ 0.5 million in opening a branch in the USA subject to the relevant regulatory approval.
Besides, some listed companies including Olympic Industry, Paramount Textile, Copper tech and Runner Automobiles decided to purchase land for their business expansion.
