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With the steady economic growth, people's income grew and it gave some space to spend more beyond basic needs. Changes took place in people’s lifestyle and food habits in course of time.
It’s now more common in our everyday life than previous to have a cup of tea in morning or entertaining a friend with a cup of tea or coffee at home or in a restaurant and even in a tea stall. None can think of having a cup of tea without having a biscuit.
These changes surrounding our lives brought opportunity for bakers and they came up with big investment to cash the advantage of growing consumption of confectionary items.
Olympic Industries Limited, the largest biscuit manufacturer and supplier in Bangladesh, reaped the benefit in the best possible way and expanded 12 times in the last 16 years.
Its production volume increased 13 times during the period while revenue and net profit rose 17 and 85 times respectively.
Sitting on such a strong financial base, the size of Olympic Industries increased 12 times as its paid-up capital jumped from Tk 17 crore to around Tk 200 crore.
The scenario was obtained by analysing the annual reports of the company.
According to reports, the country’s biscuit industry rose 240,000 metric tons annually throughout the period.
Keeping the increased market demand in mind, the Olympic Industries boosted up its production capacity in phases and grabbed the business opportunity.
The biscuit maker declared to expand its business further with a fresh investment of Tk 100 crore in the fiscal year 2020-21.
The fund was used to establish a new production facility and purchase machinery for it.
“We believe these recent capital expenditures will allow the company to be well represented in existing and new, unique, premium spaces in the confectionery and bakery categories currently not offered in Bangladesh,” the company said in its annual report for FY21.
16 Years of Growth
The Olympic Industries’ production volume was only 8,707 metric ton in the financial year 2005-06. In course of time, the volume swelled 13 times to 1.17 lakh metric ton in the next 16 years.
Its revenue, which was only Tk 104 crore in FY06, increased 17 times to Tk 1,803 crore in FY21.
Besides, the company’s net profit increased 85 times from Tk 2.41 crore to Tk 104 crore during the period.
Keeping similar pace with other parameters, the company’s export rose to a significant extent. It exported products worth Tk 25.65 crore in FY21, up by 8 per cent from Tk 23.75 crore in the previous year.
Other Units
Other than biscuit and bakery items, the company has another two units -- Dry-cell Battery and Oil Refining and Hydrogenation.
In FY21, the dry-cell battery unit’s turnover was Tk 40.57 crore, which is 2.25 per cent of the company’s total turnover. The remaining unit’s financials could not be accessed.
The Olympic Industries is owned by the influential Mohammad Bhai’s family. Member of this family and controversial business man Aziz Mohammad Bhai is the director of Olympic Industries.
