Crown Cement approves Tk13.77cr land purchase for expansion
The latest acquisition reflects Crown Cement’s steady push to expand its production facilities in Mukterpur, where the company has already established one of the largest cement manufacturing complexes in Bangladesh.
Crown Cement PLC, one of the country's leading cement manufacturers, has moved forward with another major land acquisition as part of its ongoing expansion strategy.
The company's board of directors, in its meeting held on 18 September, approved the purchase of 330 decimals of land at West Mukterpur in Munshiganj at an approximate cost of Tk13.77 crore, including registration expenses, according to the company's disclosure published on its website.
The latest acquisition reflects Crown Cement's steady push to expand its production facilities in Mukterpur, where the company has already established one of the largest cement manufacturing complexes in Bangladesh. This follows its earlier purchase in 2023 of 245 decimals of land adjacent to the factory premises at Tk6 lakh per decimal, underscoring its long-term plan to secure land for future growth.
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Crown Cement has been significantly ramping up its production capacity over the past two decades to keep up with rising demand. From its second unit launched in 2002 with a daily capacity of 800 tonnes, the company has successively added new facilities, including the third unit in 2008, the fourth in 2011, and the fifth in 2017.
Officials at the company said the decision to acquire additional land was aligned with the sponsors' long-term strategy of strengthening its manufacturing base. With demand for cement steadily growing in the country, Crown Cement aims to position itself for future expansion while consolidating its leadership in the construction materials market.
Most recently, its sixth unit, with a capacity of 8,280 tonnes per day, went into commercial production in January 2024. With this addition, Crown Cement's total production capacity reached 19,040 tonnes per day, or 5.7 million tonnes annually.
The company's performance, however, has been affected by industry-wide cost pressures. In the July-March period of the 2024-25 fiscal year, earnings per share fell to Tk3.56 compared to Tk5.90 in the same period of the previous year.
Its net asset value per share stood at Tk58.47 at the end of March.
Earlier, Crown Cement had paid a 21% cash dividend for FY24, when its earnings per share were Tk6.47, up from Tk4.11 a year earlier. Revenue also rose to Tk3,198 crore in FY24, compared with Tk2,773 crore in FY23.
Crown Cement's shares closed 3.77% lower at Tk61.30 on the Dhaka Stock Exchange yesterday (19 August).
