Singer to invest Tk 680 crore for new manufacturing facility, shares up

Singer Bangladesh Ltd, a home appliance manufacturer and marketer, today said it is going to invest Tk 680 crore to establish a manufacturing facility in order to increase capacity to cater growing domestic market for home appliances.

Shares of the company edged up 1.67 per cent to Tk 170 until 1.38 pm at the Dhaka Stock Exchange after the disclosure by the company.

Singer Bangladesh said its board approved a budget, a total of Euro 71 million (estimated) equivalent to Tk 680 crore, for establishing a new manufacturing facility.

The investment will be financed from internal sources and bank financing both foreign and local borrowing, it said.

"The proposed manufacturing facilities would cater to the increasing local demand with a competitive price and would also contribute to the company's growth," said Singer Bangladesh Ltd, majority owned by Retail Holdings Bhold BV, a concern of Arcelik AS, largest home appliances company in Turkey.

The electronics and home appliance seller posted Tk 1,581 crore in sales in 2021, up from Tk 1,495 crore the previous as its lost sales opportunity owing to the rising infections of coronavirus pandemic in the beginning of the second quarter last year.

"There were, effectively no sales for 73 days in 2021 as the country-wide lockdowns declared by the government from time to time. Consequently, we missed the seasonal sales of summer, Eid-ul-fiitr, and Eid-ul-Adha," said Singer in its annual report.

Its operating profit declined 20 per cent year-on-year to Tk 130 crore in 2021.

Net profit dipped 35 per cent to Tk 51.8 crore in 2021 from Tk 80 crore the previous year, said Singer Bangladesh in its annual report.

With 1,697 employees, Singer has 437 retail outlets and 1,092 dealers across the country.