Sinobangla to invest Tk16.81cr in machinery, warehouse
The investment will be financed from internal cash and partially bank loan
Sinobangla Industries, a manufacturer of plastic packaging products, will install new machinery and build a raw material warehouse with an investment of Tk16.81 crore to expand its production capacity.
According to the company's disclosure published on the Dhaka Stock Exchange (DSE) on Tuesday, after the implementation of the investment decision, its production capacity will increase by 150 tonnes per month.
Sinobangla Industries, which was founded in 1996 as a China-Bangladesh joint venture, produces and exports a complete range of polypropylene woven sacks and value-added flexible intermediate bulk containers (FIBCs).
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According to the disclosure, to achieve the additional production target, the company will procure a tape extrusion line loom machine, needle looms, filler cord, and water chiller machine and build a raw material warehouse.
The investment will come from internal cash and bank loans.
According to its financial statements, in the last nine months of the current fiscal year, its earnings per share (EPS) rose 7% compared to the same period of the previous year.
Also, its EPS increased 14% in the January-March quarter.
In the July-March period, its EPS stood at Tk1.21, which was Tk1.13 in the same period of the previous fiscal year and in the January-March quarter, the EPS stood at Tk0.48, up from Tk0.42.
Sinobangla Industries, which got listed on local stock exchanges in 1999, is now placed in the A category.
In 2019-2020 fiscal year, the company reported a profit of Tk2.62 crore, which was Tk3.45 crore in the previous year.
For FY20, it declared a 5% cash dividend for its shareholders, down from 10% in the previous year.
