ADN Telecom plans to make telecom devices

ADN Telecom, a leading IT and telecommunication service provider in Bangladesh, has availed land to set up facilities and locally manufacture telecommunication devices to substitute imports, according to company officials.

"We are at the initial stage and have just availed the land for the factory. We have a plan to set up the facility at Bangabandhu Sheikh Mujib Hi-Tech Park in Sylhet," said Company Secretary Md Monir Hossain.

However, he said they were yet to finalise the type of telecommunication device that they would manufacture or how much investment would be required.

According to him, they would conduct a feasibility study before investing in the manufacturing of any device.

"It is tough to grab the telecom device market as consumers in Bangladesh are very careful about purchasing any such device. Besides, consumers do not rely on local products even though some companies are producing quality products," Hossain said.

"So, we will enter the market cautiously," he added.

The company signed an agreement with the park authority on Tuesday to take lease of 1.75 acres of land, according to a company disclosure on the Dhaka Stock Exchange website yesterday.

As per the disclosure, the company has been granted the lease for 40 years for developing manufacturing facilities of international standard.

The rate is US $1.50 per square metre, which amounts to US $10,642.50 for the first 10 years. Afterwards the rate will increase by a maximum of 10 percent every three years.

Shares of ADN Telecom closed at Tk 114.70 yesterday, down from Tk 115.50 on the previous day.