Alif Industries to rent compliance-approved factory to meet global demand, shares surge

Alif Industries, a concern of Alif Group, plans to rent a compliance-approved factory in the coming months to boost its production capacity and strengthen its global presence, a move that has sent its shares soaring on the Dhaka Stock Exchange (DSE). 

The plan is designed to meet growing international demand for the country's textile products, driven in part by US tariff benefits.

Today (24 August), the company's shares were among the top ten gainers on the DSE, with the price jumping by 9.96% to Tk58.50. This marks a sharp 24% increase over just five trading days, from Tk47.30 to Tk58.50.

According to a disclosure by the company, the rented facility will serve as an extension of Alif Industries' existing operations. The company will finance the rental entirely from its own funds.

The management has outlined a phased approach for the initiative. In the first phase, Alif Industries will rent the facility for a trial period to assess operational efficiency, buyer response, and cost-effectiveness. If the results are satisfactory, the company intends to purchase the factory outright, securing it as a long-term production asset.

The company, in a statement, said the plan is designed to ensure enhanced compliance with international standards, produce higher-value products, and meet the rising demand from overseas clients. "This expansion reflects our commitment to align with the evolving requirements of our buyers while improving our operational efficiency," it noted.

Speaking to TBS, Alif Industries Managing Director Azimul Islam explained that while US tariffs have recently increased orders to Bangladesh, fulfilling them requires strict adherence to international standards. 

He noted that major global brands demand proper safety measures, ethical labour practices, and environmentally friendly production. By securing a compliance-approved facility, the company can quickly and cost-effectively increase production and attract high-value export orders from Europe and North America.

The company is currently in talks with three to four factories and plans to start producing high-value products once a suitable facility is secured. If the results are positive, the company may purchase the factory in the future.

The initiative is expected to bring multiple benefits: increased capacity to handle larger orders, better alignment with buyer requirements, the ability to produce premium products, and an enhanced reputation as a compliant and responsible manufacturer. The company's management believes these changes will ultimately lead to higher revenues, improved profitability, and stronger relationships with global clients.

Earlier, the company had made plans to expand its business, but they could not be implemented due to various reasons. However, Managing Director Azimul Islam stated that the company's previous plans will be carried out once the unprecedented situation ends.

In the July-March period of the 2024-25 fiscal year, the company's turnover rose by 16% year-on-year to Tk80.18 crore from Tk69.11 crore in the same period of the previous year. Its net profit surged by 32.85% to Tk11 crore, up from Tk8.28 crore a year ago.

In the first nine months, its earnings per share stood at Tk2.26, compared to Tk1.70 a year ago. The net asset value per share was Tk23.95 at the end of March 2025.

As per the latest available data, sponsors and directors of the company hold 30.24% of the total shares. Institutional investors own 14.30%, while the general investors hold the remaining 55.46%.