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Olympic Industries—the largest biscuit manufacturer and supplier in Bangladesh— has planned to increase its production by investing more than Tk 26 crore in manufacturing new products and expanding existing facilities.
The expansion plans are set to materialise through 2024. Boosting cartoon production, building the
second baked snacks processing line, marketing chocolate under its own brand and the construction of facilities were detailed in a filing with the Dhaka Stock Exchange on Thursday.
Company Secretary Nazimuddin said: “Our investment decision taken earlier is to increase the production.”
The company will import one set brand new corrugated board production line with automatic baling press, dust collector and required standard accessories from China for carton manufacturing unit of the factory at Kutubpur in Narayanganj to enhance production capacity of making various sizes corrugated cartons by 102 million pieces per annum for packaging products, it said.
The import and installation of the line with some other required local items including slitter, stacker, overhead crane, trolley, etc. will cost around Tk 11 crore and will meet the present shortage of cartons, it added.
One complete set of machineries and spare parts, including water softeners, chillers, cooling towers, barrel sets, etc., will be imported from India and China at a cost of Tk 3.11 crore.
The second baked snacks processing line will ensure additional production of 200 tonnes of baked snacks per month to meet growing demand for snacks from the company.
The second phase of civil construction and other works of the 5-storey extension building of the cartons and snacks units of the company at Kutubpur in Narayanganj district, measuring around 44,100 square feet of area, will begin.
The revised expenditure for the purpose now is estimated to be around Tk 12.20 crore and approximately Tk 1 crore will be released per month for the next twelve months.
Completion of second phase works will remove the shortage of storage space for raw materials, packing materials and finished products in the units, said the company.
An agreement will be executed with Lucerne Cocoa & Chocolate Products for a two years term from September 1, 2022 to August 31, 2024 for purchase of different kinds of chocolate products from them for sale in their own brand name.
Some 9,000 square feet floor area on newly purchased land near Lolati factory at a total cost of Tk 1 crore will be constructed.
The company engages in the manufacturing and retailing of consumer goods, particularly branded biscuits and confectionery items, and batteries.
Energy Plus, Tip, and Nutty are the popular brands of Olympic Industries that began operation in 1979. The company is the pioneer in exporting biscuits. At present, the company is exporting to 30 countries, including USA, UK, Greece, France, Cyprus, Portugal, Ghana and Somalia.
It was listed on the Dhaka Stock Exchange in 1984 and Chittagong Stock Exchange in 1996. Its market capitalisation stood at Tk 2,739 crore and has Tk 723 crore in surplus reserve.
Its share price was up 3.94 per cent to Tk 142.40 on Thursday.
On November 24, 2021, the company had announced it will invest Tk 25.65 crore for expanding its capacities.
Under the investment plan, it established a line for plain and custard cake production in its Lolati factory at Narayanganj’s Kanchpur and invested Tk 6.49 crore in the first phase for machinery imports.
