Beximco projects Tk380cr profit by Dec 2026 amid revival plan

Beximco Limited has projected a net profit of Tk380 crore by December 2026 if its long-shuttered factories resume operations in October this year, according to the company's official response to a Dhaka Stock Exchange (DSE) query.

In a letter to the DSE dated 22 September, the conglomerate confirmed that recent media reports of foreign investments to relaunch 15 of its factories was authentic. 

"We hope that it will have a positive financial impact on our organisation. According to our projection, we will be able to earn a net profit of Tk380 crore by December 2026, provided factories resume operations by October this year," the statement said.

Today (25 September), Beximco's shares continued to trade at the floor price imposed in July 2022, though activity briefly picked up after news of the revival plan, with 54 shares traded after more than a month of dormancy. The stock closed at Tk110.10.

The reopening plan is structured under a tripartite lease agreement involving Japan's Revival Project Limited, Janata Bank, and Beximco Group. US-based Ecomili is partnering with Revival in the process.

Under the arrangement, Revival will secure $20 million in back-to-back letters of credit (LCs) from foreign banks to execute orders from Spanish apparel giant Inditex. 

Production will take place at Beximco Textiles, which has remained idle since February following months of worker unrest over unpaid wages.

Earlier, Ecomili President Dr Farhan S Karim, also an associate professor at Arizona State University, said Revival and Ecomili would initially invest $20 million, with the potential to scale up to $100 million through the Buet Investment Network. 

"It will take two to three years to rebuild buyer confidence, recruit skilled staff, and ensure sustainable production," he added.

The initiative is expected to revive one of Bangladesh's largest textile conglomerates, creating employment opportunities for nearly 25,000 workers, according to labour ministry officials. 

The reopening has been endorsed by an inter-ministerial meeting chaired by Labour Secretary AHM Shafiquzzaman in July, which coordinated policy support from the finance ministry and Bangladesh Bank.

As part of the plan, Janata Bank will reschedule defaulted loans tied to Beximco, which reportedly stand at around Tk23,000 crore. However, this remains the most contentious element of the revival process. 

A senior Janata Bank official said Beximco wants to reschedule its loans without any fresh down payment, but the board and the central bank have resisted the proposal. "Janata Bank is currently facing a severe shortage of investable funds, leaving no scope to offer concessions to the country's largest defaulter," he noted.

Concerns have also been raised by Bangladesh Bank over the repayment mechanism in Revival's proposal. 

A senior central bank official said as per the proposal, export proceeds would first be used to pay Revival's 8% commission, followed by worker salaries and utility bills, before any residual amount was directed to Janata Bank. "This leaves very little room for Janata Bank to recover its defaulted loans," the official warned.

Despite these hurdles, the assurance of fresh orders from Inditex has raised hopes that Beximco could restore credibility with international buyers, though much depends on how smoothly the factories can resume operations and maintain compliance standards.

For Janata Bank, however, the risks remain substantial. 

Ministry officials acknowledged during a meeting on 17 September that the bank's exposure to Beximco is dangerously high, and repayment assurances are still unresolved. 

Revival is reportedly seeking an additional Tk400 crore working capital loan, but without assuming liability for Beximco's existing debt.

Meanwhile, Beximco's financial health remains fragile. The company incurred a loss of Tk356 crore during the first nine months of FY25, translating into a loss per share of Tk3.78.