Ex-land minister's Aramit Cement shuts its factory amid crisis
Owners’ absence, inability to open LCs, fund crisis lead to factory closure
Aramit Cement, a publicly traded concern of the Aramit Group owned by former land minister Saifuzzaman Chowdhury, has ceased all operations due to a severe cash crisis and acute raw material shortage amid the absence of its owners.
The shutdown, which occurred on 10 July, was initially concealed by the company but subsequently revealed by the Dhaka Stock Exchange (DSE) following an inspection today (22 July).
Saifuzzaman, who holds a 14.97% stake in Aramit Cement, has been accused of amassing immense wealth illegally and is under investigation for money laundering by the authorities.
Aramit Ltd, another concern of the Aramit Group, is represented by Saifuzzaman's wife Rukhmila Zaman, who serves as the company's managing director. Both remained out of the country for a long period, according to sources.
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After the change of Awami League-led government, the Anti-Corruption Commission (ACC) in mid-August decided to investigate allegations against Saifuzzaman concerning the acquisition of illegal assets worth crores of taka through irregularities and corruption.
Later, following a court order, Saifuzzaman and his associates' assets were frozen.
In June, the United Kingdom's National Crime Agency (NCA) froze properties owned by the former land minister.
Crisis for Aramit after political change
After the change of the Awami League-led government last year, the company fell into deep trouble as its owners left the country.
Also, its cement sales significantly dropped during the July to March period of 2024-25 fiscal year.
Around 11 months after the regime change and in the absence of the owners,' the company was unable to run its factory, and finally, shut down for an indefinite period, an official of the company who preferred not to be named, told TBS.
"Running out of raw materials, cash crunch, and complexity over opening letters of credit (LCs), there was no way to keep running the factory," he said. "Owing to failing to repay outstanding loans, banks are unwilling to open LCs to import raw materials. Also, some banks served legal notice to owners and directors for repaying loans."
The company owes around Tk800 crore in loans, a substantial portion of which constitutes interest.
Mounting losses
According to the company's data, Aramit Cement has been grappling with substantial losses for several years, with its net retained loss surging to Tk234 crore by the end of March 2025. The company has incurred significant losses for three consecutive fiscal years, from FY22. In the first nine months of the current FY25 (July to March), it also recorded a loss of Tk20.19 crore. The company last reported a profit of Tk2 crore in FY2021.
The company's declining fortunes began years ago, partly due to the reduced demand for cement during the Covid-19 pandemic approximately six years ago. This setback led to a gradual decrease in both production capacity and revenue.
According to its annual report, Aramit Cement produced 3.49 lakh tonnes in FY2021 against an installed capacity of 5.10 lakh tonnes. The production subsequently declined to 1.21 lakh tonnes in the following year, further plummeting to just 20,000 tonnes in FY2023 and 18,000 tonnes in FY2024.
The company attributed its business downfall to rising raw material costs, the dollar crisis, high exchange rates, and increased shipping expenses.
Aramit Cement, established by the late Awami League leader Akhtaruzzaman Chowdhury and father of Saifuzzaman, was listed on the stock exchanges in 1998. The main owners jointly hold a 34.25% stake in the company. According to its annual report, two government institutions, Bangladesh Development Bank Ltd (BDBL) and Investment Corporation of Bangladesh (ICB), hold 6.43% and 5.24% stakes, respectively. Institutional investors hold another 10.60% of shares, while the general public holds the remaining 43.48%.
The company last paid a 5% cash dividend to its shareholders for FY2022. Due to its failure to pay dividends, its shares are currently trading under the Z category. Aramit Cement shares closed at Tk13.80 each today, down by 2.13% from the previous trading session.
