Square Textile to invest Tk40cr for expansion, merge subsidiary Square Texcom

Square Textile PLC, one of the country's leading yarn manufacturers, has announced plans to invest Tk40 crore to boost its production capacity under a Balancing, Modernisation, Rehabilitation, and Expansion (BMRE) programme.

Alongside the expansion move, the company's board has also decided to merge its subsidiary, Square Texcom Limited, to consolidate operations and strengthen efficiency across its manufacturing units.

Square Texcom, located in Kathali, Valuka of Mymensingh, has been a significant contributor to the group's textile operations. The parent company, Square Textile, currently holds a 99.88% equity stake in the subsidiary, equivalent to an investment of Tk48.93 crore.

According to the company's latest financial disclosures, Square Texcom reported strong performance in FY25, with revenue rising 28% to Tk197.89 crore and net profit up 8% to Tk7.99 crore. 

The subsidiary produces a range of yarns, including cotton, polyester, synthetic, wool, and blended varieties mixed with cotton and polyester.

Moreover, the board of Square Textile also recommended a 32% cash dividend for the fiscal year 2024-25, reflecting its strong financial standing. 

To approve the dividend, the company has scheduled its annual general meeting (AGM) for 15 December, with the record date set for 16 November.

During FY25, Square Textile's consolidated earnings per share rose by 23% to Tk7.24, while its consolidated net asset value per share stood at Tk55.86, highlighting its continued profitability and asset strength.

Today (21 October), the company's shares slipped 1.29% to Tk53.70 each on the Dhaka Stock Exchange (DSE).

Industry insiders said the merger and expansion investment signal the company's strategic focus on scaling up production efficiency and competitiveness in the growing textile sector.