Olympic to invest Tk25cr to expand bakery business
Olympic Industries Ltd, the maker of popular biscuit brands such as Energy Plus, Tip and Nutty, has announced that it would invest Tk 25.65 crore to expand its production capacity to meet growing demands.
The top bakery and confectionery product manufacturer in the country disclosed the information yesterday in a regulatory filing on the website of the Dhaka Stock Exchange.
Its stock rose 1.25 per cent to Tk 162.1.
According to the disclosure, the company would finance the investment from its own sources or working capital loans.
The company has retained earnings of Tk 723 crore, said the financial report for 2020-21.
Of the Tk 25.65 crore planned investment, Tk 6.49 crore will be invested in the first phase to import and set up cupcake making line to produce plain and custard cakes, along with buying packaging line, nitrogen generator, metal detector, and other items from China.
Thanks to the investment, the plain cake production capacity would be 475.2 lakh pieces annually and custard cake production capacity would be 316.80 lakh pieces. The line will be established in its factory in Lolati, Narayanganj.
On the back of rising demand for biscuits, and snacks items, the listed company has decided to enhance the production capacity.
Its sales rose 11.86 per cent to Tk 1,803 crore in 2020-21. It logged profits of Tk 203 crore, slightly up from the previous year's Tk 202 crore.
The export of biscuits and confectionery items rose 8 per cent to Tk 25.65 crore in 2020-21.
Its popular brands such as Energy Plus, Tip, and Nutty have 25 to 30 per cent shares in the domestic biscuit market.
The company has also decided to develop newly purchased land at Lolati at an estimated cost of Tk 9 crore.
It will invest around Tk 8.50 crore to construct a 5-storey building with a total 73,000 square feet floor area and undertake an extension of 7,300 square feet tin shed area in its Kutubpur unit. The investment is aimed at meeting the shortage of storage space to keep raw materials, packing materials and finished goods.
It plans to invest around Tk 1.66 crore to enhance the production capacity of the corrugated carton unit at Kutubpur from 6-6.50 million cartons to 8 million cartons per month.