Rahima Food to set up plant to produce cashew nuts

Rahima Food Corporation says it will set up a new manufacturing plant and begin production of coconut oil from another plant.

Under the management of the City Group, the company has been trying to turn around its fortunes since April 2021 when the country’s one of leading consumer goods manufacturers acquired it.

“The company will set up a manufacturing plant for processing and packing of cashew nuts and marketing the products at home and abroad,” said Rahima Food in a filing with the Dhaka Stock Exchange on Tuesday.

After completion of trial production, the company is also going to commence commercial operation of another unit for production and marketing of coconut oil from Thursday, it said.

In addition to the production of coconut oil, it will also do bottling and marketing of soybean and mustard oil from the plant, it added.

On Tuesday, Rahima Food’s share price rose 2.27 per cent to Tk 365 on the DSE. In three months, its share price gained 16 percent.

Before the takeover by the City Group, the company had been out of business since 2013.

Out of the company’s total stake, sponsors and directors hold 37.38 per cent, institutions 19.10 per cent, foreign investors 4.99 per cent and general investors 38.53 per cent of the company’s shares, according to the DSE.

Rahima Food was incorporated in 1990 as a private limited company and listed in 1997.

In 2018, the DSE had suspended its share trading as it was not in operation for a long time.

After the two years gap, the bourse allowed its share trading in December 2020 after receiving a satisfactory explanation from the company.