Square Pharma, Square Textiles to invest Tk 646 crore for expansion

Square Pharmaceuticals and Square Textiles have decided to invest Tk 646 crore for expansion of their business.

The decision came in the companies' separate disclosure that was published today on the Dhaka Stock Exchange (DSE) website.

The pharma board approved Tk 300 crore for BMRE, capital machineries and lands for future expansion. However, the company's stock price dropped 3.25 per cent to Tk 226 today while the textile board also approved a new investment plan to increase the production capacity of the factory.

With the investment, yarn production capacity will be increased by 11,565 tonnes per annum. Estimated project cost is Tk 346 crore.

Expected date of completion is April, 2023 and estimated turnover from the investment is Tk 371 crore per annum, it said.

The company expects profit contribution by around 5-7 per cent on turnover.