RN Spinning Mills, a concern of the Far Group, had been incurring losses since 2019 after a fire forced the company to shut down operations. The publicly traded company has now returned to profit after merging with its non-listed sister concern Samin Food and Beverage Industries.
On Saturday, on a spot visit to the factory in Gazipur, The Business Post found that RN Spinning Mill has been transferred to Samin Food and Beverage Industries, and production is ongoing 24 hours a day.
About 1,600 workers are working in three shifts in the factory, which is located on 1,200 decimals of land.
At the factory, RN Spinning Mills Chairman Humayun Kabir said, “The uncertainty about resumption of RN Spinning Mills operations, after its factory was gutted by a fire, is gone after the two companies – RN Spinning Mills and Samin Food and Beverage Industries – merged.
“As a result, the shareholders are freed from uncertainty. The company also returned to profitability in the last quarter. I am optimistic that the shareholders would benefit in the coming days.”
Kunal Kanti Sarkar, general manager of production at RN Spinning Mills, said, “Our production capacity is currently 79,848 spindles, and yarn production capacity is 1.75 crore kg per year.
“The machinery purchased from Germany, Switzerland, Italy, China, and India is producing yarn in three shifts 24 hours a day, which is 100 per cent export-oriented.”
In October 2023, the Bangladesh Securities and Exchange Commission (BSEC) approved the mergers of Samin Food and Beverage Industries and Textile Mills Ltd with RN Spinning Mills and SF Textile Industries with FAR Chemical Industries following a High Court approval.
In the July-March period of FY24, RN Spinning posted Tk 280.65 crore in revenue, compared to Tk 272.89 crore a year ago. Its profit after tax stood at Tk 2.74 crore, and earnings per share was at Tk 0.09.
The consolidated net asset value (NAV) per share was Tk 10.58 as of March 31, 2024, and Tk 5.09 as of June 30, 2023. RN Spinning has been counting losses since FY19, as its operations fully closed in 2019 due to a fire incident.
The last trading price of each share of RN Spinning Mills on the Dhaka bourse was Tk 14.90 on Monday.
Far Chemical production capacity doubles after merger
Meanwhile, in the last year, Far Chemical Industries merged with 100 per cent export-oriented yarn-spinning company SF Textile Ltd, which is currently located at Rupganj area of Narayanganj.
On Saturday, on a spot visit to the factory in Rupganj, The Business Post witnessed FAR Chemical running a full-fledged factory with two units located on 1,124 decimals of land. Its daily spinning capacity is 40,000 kg, with 75,600 spindles.
Around 1,400 workers are working in three shifts in the factory’s two units.
At the factory premises, General Manager of Far Chemical Industries Abu Talha said, “As a result of the merger, our production capacity has increased to 75,600 spindles from 33,000 spindles. Yarn production has increased from 63 lakh kg to 1.46 crore kg per year.
“The machines of both units of Far Chemical are also imported from Germany, Switzerland, Italy, China, and India. Around 1,400 workers in two factories work 24 hours a day in three shifts. The products of the two factories are 100 per cent export-oriented.”
FAR Chemical’s revenue jumped to Tk 213.38 crore in the first nine months (July 23-March 24) of FY24, from Tk 156.98 crore in the same period previous year. During the period, its profit after tax stood at Tk 4 crore, compared to Tk 8.20 crore losses posted year-on-year.
Its consolidated earnings per share (EPS) stood at Tk 0.26 during the July 2023 – March 2024 period, compared to negative Tk 0.54 (restated) recorded year-on-year.
The company’s consolidated NAV per share was Tk 32.59 until March 31, 2024, and Tk 13.18 until June 30, 2023. Listed in 2014, FAR Chemical’s shares closed at Tk 23.80 per share on the Dhaka Stock Exchange (DSE) trading floor on Monday.
