Quasem Industries to set up an artificial quartz factory for Tk 92cr
Quasem Industries, a listed dry cell and food product producer, yesterday announced its plan to set up an artificial quartz product manufacturing factory at a cost of about Tk 92 crore as part of its strategy to diversify its portfolio.
Artificial quartz, also called engineered quartz, is a manmade product created mostly from natural materials.
It is made of 90 to 94 per cent ground quartz and 6 to 10 per cent resins and pigments that are combined into durable and nonporous slabs.
The most common application of artificial quartz is indoor flooring and walls, while the quartz-based product is used primarily for kitchen countertops as an alternative to laminate or granite.
The plant will be established in collaboration with Sunstone International, LLC, US and targeted completion date of the project is June 2021.
The unit would be 100 per cent export-oriented with provision for local sales of artificial quartz product.
The news sent its stocks up 1 per cent to Tk 44.90 yesterday.
Quasem Industries, which manufactures the popular Sunlite brand of batteries, is expecting the plant to churn out Tk 17.45 crore in profit within the first year of its operation as it tries to offset the losses caused by the fire in its headquarters last year.
On 28 March FR Tower caught fire and claimed 30 lives, including an official of Quasem Industries.
"The fire affected the company's turnover and profit," said Tasvir Ul Islam, managing director and chief executive officer of Quasem Industries.
The company's turnover dropped about 8 per cent year-on-year to Tk 185.5 crore in the 2018-19 financial year. At the same time, profits plummeted 39.2 per cent.
This year has seen several factors that made doing business in Bangladesh a difficult proposition, Islam said.
The factors include devaluation of the taka against the dollar, which has left the large numbers of manufacturers that are reliant on import of raw materials with significantly higher costs, Islam said.
Additionally, the cost of utilities continues to rise in Bangladesh as does the cost of distribution and transportation increased.
These problems are further compounded by weak business and financial policies and an unstable banking system.
The company's costs rose 35.12 per cent to Tk 5.54 crore in the last year.
However, Quasem Industries is trying to bounce back. The company has already rolled out "Wave" brand of air freshener and body spray.
And this year it is planning to introduce shaving foam and aerosol, which may boost its turnover in the coming years.
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