DBL on $650m expansion spree
DBL Group, one of the leading exporters, is going to invest $650 million to set up 10 manufacturing units for textiles, ceramics, and sanitary ware at the Sreehatta Economic Zone in Moulvibazar. It made the disclosure during the foundation stone laying ceremony of the DBL Industrial Park at the Pan Pacific Sonargaon Dhaka yesterday. So far, the state-run economic zone has received $1.5 billion in investment proposals.Set up in 1991, the Group operates in apparel, textiles, tiles, pharmaceuticals, dredging, semiconductor design, ICT and telecommunications. It has 39,000 employees and recorded a turnover of $600 million in 2018-19. DBL has also invested in Ethiopia, where it has an apparel and textile factory.It will take three years to set up 10 industries on 167.6 acres of land at the industrial park, where 5,630 people will be employed.The industrial park will also have a polyester recycling unit to produce staple fibre as a raw material for spinning factories with a targeted production capacity of 18 tonnes per day. DBL will produce more than 40,000 square metres of ceramic wall and floor tiles per day in two production lines in the ceramics factory, the group said in a statement. In another ceramic facility, it will produce 90 to 99 tonnes of ceramic frit, a major ingredient of ceramic glaze used widely in the ceramic industry, per day.
Core index exceeds 6800pt mark
Stocks rebounded strongly Sunday, after two-day moderate correction, with all three indices and market capitalization of the Dhaka Stock Exchange (DSE) set new highs. The market opened on a flying note and the upbeat trend sustained till the end of the session as buoyant investors put fresh bets on major sector issues, particularly on banking sector stocks. DSEX, the benchmark index of the DSE, went up by 81.61 points or 1.20 per cent to settle at 6,842-the highest since its inception more than eight years back on January 27, 2013. The core index of the DSE, surpassed the 6,800-mark for the first time after the index was introduced. Two other indices–the DSE 30 Index and the DSE Shariah Index (DSES) — followed suit to close at new highs of 2,451 and 1,479, after rising 28.34 points and 18.38 points respectively. The DSE launched the DS30 Index on January 27, 2013 with a base point of 1,460.30 while DSES was introduced on January 20, 2014 with a base point of 941.27.The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index – CASPI -soaring 208 points to settle at 19,921 and the Selective Categories Index – CSCX rising 121 points to close at 11,942.
IFAD Autos to invest Tk 800m
IFAD Autos, a listed company, has decided to invest Tk 800 million to acquire 40 per cent shares of the IFAD Multiproducts, one of the sister concerns of IFAD Group, having a common management. The said amount of investment is subject to approval by the shareholders/members in the forth coming general meeting of the IFAD Autos, the company said in a filing with the Dhaka Stock Exchange (DSE) on Sunday.IFAD Autos lease the land as rental basis for 50 years. The amount of rent is US$ 303,514.50 or equivalent Bangladeshi taka per annum. In this regard, IFAD Autos has already paid a sum of Tk 51.56 million–equivalent to US$ 607,029 to the BEZA only as security deposit which is equivalent to two years annual lease rent for the demised land.The company has reported earnings per share (EPS) of Tk 0.51 for January-March 2021 as against Tk 0.48 for January-March 2020. In nine months, its EPS was Tk 2.17 for July 2020-March 2021 as against Tk 1.92 for July 2019-March 2020. IFAD Autos, listed on the DSE in 2015, disbursed 9.0 per cent cash and 2.0 per cent stock dividend for the year ended on June 30, 2020. In 2019, it provided a 10 per cent cash dividend. The company’s paid-up capital is Tk 2.52 billion and authorised capital is Tk 3.0 billion, while the total number of securities is 252.95 million.
Big groups foresee business in jute
A number of big business conglomerates have stepped up to take over shut state-run jute mills to cash in on growing export potentials. Pran, Bay and Akij are among some big names who want to invest in such jute mills, while two jute mills from India and one from the United Kingdom are also in the race, according to sources at the textiles and jute ministry. Twenty-four companies vied for the lease of 14 out of 17 mills put on an international tender.The state-owned mills, closed after years of losses, will be leased out initially for 5 to 20 years and there will be options to extend it further later.According to sources, the highest number of applications was submitted for Bangladesh Jute Mills in Narsingdi’sGhorashal as it is located near Dhaka city, with 11 companies applying for its lease. The mill was established in 1962 on 77 acres.Pacific Jute in West Bengal is a 100% export-oriented organisation and was established in 2004, while the Jute Republic was founded in 2016 and is headquartered in central London.According to the BJMC, the total assets of the government jute mills amount to Tk25,352.46 crore, including Tk14,329 crore in fixed assets.