Olympic Industries plans to boost its chocolate production capacity

Olympic Industries, a publicly listed company, plans to invest Tk13.66 crore to boost its chocolate production capacity.

The investment will fund importing new, multi-functional machinery for its Lolati factory in Narayanganj.

Currently, the company produces a variety of chocolates under several names including Magic Candy, Éclairs and Pulse.

As part of its new plan, the company's board has decided to increase production capacity by 3,300 tonnes annually.

According to disclosures published on the stock exchanges today, the new machinery and standard accessories will be imported from Link Sourcing Limited of Hong Kong.

The cost of importing the machinery is estimated at Tk11.20 lakh, equivalent to around Tk13.66 crore.

Over the years, Olympic Industries has invested significant funds in business expansion, product diversification, and acquiring land for future growth.

In August last year, the company decided to invest in the purchase and import of brand new capital machinery for a snack food manufacturing plant for $18.85 lakh, equivalent to around Tk22.71 crore.

With the investment, its production capacity will increase by 6,600 tonnes annually.

On 2 February this year, Olympic Industries in a disclosure informed that it is decided to invest Tk17 crore in land for future expansion, acquiring 273 decimals in six plots adjacent to its Lolati factory.

Not just this time, but over the past six years, Olympic Industries has been gradually investing in land alongside its continuous business growth.

It had invested around Tk181 crore in land across Bashundhara, Tejgaon, Purbachal and Narayanganj until October 2024.

Additionally, it has invested Tk178 crore in diversifying its business segments, including Tk22.71 crore for "chanachur" production, Tk24.75 crore for noodles, Tk12 crore for chocolate, Tk25.65 crore for cakes, Tk64 crore for biscuits, and Tk28.50 crore for infrastructure and packaging.

Half-yearly financials

Witnessing 0.55% growth in revenue and 17.85% in profit in FY24, Olympic Industries saw a 15.89% growth in revenue, reaching Tk1,490 crore and 0.93% in profit, reaching Tk116 crore in the first half of the current fiscal year. 

Regarding revenue boosts, the company said its revenue increased by 15.89% during the period mainly due to effective measures taken by the management to boost sales.

According to its report, its operating expenses — administrative and selling expenses — increased by 34.38% to Tk239.95 crore in the first half of FY25.