BAT Bangladesh to invest 25cr for packaging upgrade
To boost packaging operations, British American Tobacco (BAT) Bangladesh, a leading multinational tobacco company, has decided to invest Tk24.90 crore for the purchase and installation of laser printers in 36 surface mount device (SMD) packing lines at its Dhaka and Savar factories.
The investment will be funded through internal sources and bank financing, based on the company's cash flow. This move is aimed at enhancing packaging efficiency and improving production capabilities.
According to the stock exchange disclosure on Tuesday (25 February), out of Tk24.90 crore, the company will use Tk14.55 crore for purchasing printers and Tk10.35 crore for installation.
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With this investment, the company seeks to strengthen its manufacturing processes, ensuring greater efficiency and quality in its packaging operations.
In December last year, the company also invested Tk28.38 crore to enhance its capacity.
The company's share price increased by 0.32% to Tk346.70 on the Dhaka stock exchange, on Tuesday.
In 2024, the company recommended a 150% final cash dividend for shareholders, bringing the total payout for the year to 300% cash, amounting to Tk1,620 crore—including the 150% interim dividend paid in December. This marks a significant increase from the 100% cash dividend (Tk540 crore) distributed in 2023.
During the year, its profit after tax stood at Tk1,751 which is lower from Tk1,788 crore compared to the previous year.
Its earnings per share stood at Tk32.42 crore, which was Tk33.11 in the same period of the previous year.
BAT Bangladesh operates factories in Dhaka and Savar, alongside a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.
According to a quarterly financial statement, it produced 50,305 million sticks and 4.16 million kilograms of tobacco leaf in the first nine months of the past year.
Since 2021, the multinational company has invested Tk1,333 crore in its Savar factory to capitalise on emerging export opportunities for cigarettes from Bangladesh, according to the annual report.
In its annual report for 2023, the cigarette manufacturer highlighted that the country is strategically positioned to capitalise on significant export opportunities in the tobacco industry, including leaf, cut rag, and cigarettes.
This advantage is driven by Bangladesh's inherent cost competitiveness and a strong commitment to high product quality.
Building on the success of the ready-made garments industry, the report emphasised that the tobacco sector has substantial potential to establish a robust presence in the global export market.
As of 31 January 2025, the company's shareholding structure is as follows: Sponsors/Directors hold 72.91%, the Government holds 0.64%, Institutional investors hold 13.88%, Foreign investors hold 4.49%, and General investors hold 8.08% of the total shares.
