Miracle Industries’ shares surge on BCIC 50% procurement deal

Infographic: TBS

The Bangladesh Chemical Industries Corporation (BCIC) will now purchase 50% of its total requirement for woven polypropylene (WPP) and polyethylene (PE) bags from the publicly listed Miracle Industries Ltd. 

As a result, the company's revenue is expected to double from these orders, which will positively impact its net profit. BCIC remains the company's main buyer.

According to a disclosure on the stock exchange, If Miracle Industries fails to supply the bags within the specified time, the BCIC reserves the right to procure the required bags from alternative sources.

For the announcement of this news, the company's share price surged by 9.71% to Tk33.90 on the Dhaka stock exchange today. 

In December last year, the industries ministry approved the procurement of 20% of BCIC's total bag requirement from Miracle Industries. 

However, in the first week of September this year, the ministry issued a new directive, raising the mandatory procurement share to 50%. As BCIC operates under the ministry, it is now required to source half of its total bag demand from Miracle Industries.

A top official of Miracle Industries, seeking anonymity, said the company has received a letter from the BCIC regarding the new allocation. However, the price for this order has not yet been finalised.

He mentioned that Miracle produces bags exclusively for BCIC and does not take orders from other buyers. Currently, the company has loans of around Tk85 crore, which remains a major challenge to returning to profitability.

The official noted that in the past, Miracle used to produce 100% of BCIC's bag requirements. But in 2007, the government ended that arrangement and introduced open tenders, forcing Miracle to compete with other local manufacturers for BCIC contracts. From December last year, the company once again began receiving orders from BCIC, and this allocation has now been expanded.

He further said that production is still being carried out on machines that are nearly 30 years old, making fresh investment essential for expanding operations. Despite these challenges, the new management has already injected some investments into the company to improve its condition.

According to BCIC officials, the demand for such bags largely depends on the production and import of fertiliser. The exact quantity to be purchased will be determined by the government's final decision.

For FY26, BCIC has estimated total demand for urea fertiliser at around 26 lakh tonnes. To meet this requirement, it has set a production target of about 14 lakh tonnes and an import target of 12 lakh tonnes.

Founded in 1995 as a joint venture between state-owned BCIC and four entrepreneurs, Miracle Industries manufactures a range of bags for cement, fertiliser, salt, feed, sugar, food grains, and chemicals.

The company operates two manufacturing units in Sreepur and Gazipur — one serving the local market and the other producing for export.

Under its original shareholders' agreement, Miracle has two groups of shareholders: Group A (including BCIC) with a 20% stake and Group B (the four entrepreneurs) with a 10% stake.

In August 2023, Mehmood Equities Ltd took control of Miracle Industries from the family of Lutfozzaman Babar and others, according to sources. The following month, Miracle announced that Mehmood Equities, as the new owner, had appointed three directors to its board and planned to invest the required funds to restart operations.

Mehmood Equities then appointed its chairman, AKM Sahabub Alam, as managing director of Miracle, while Showkat Mehmood and Nayan Mehmood were appointed directors.

Miracle Industries was profitable until FY19, when it posted revenue of Tk60 crore and a net profit of Tk0.77 crore. The company achieved its highest-ever revenue and profit in FY17.

However, in FY20 it suffered a record loss of Tk12 crore, with revenue plunging by 85% to Tk9 crore due to a conflict between Group A and Group B shareholders. The company also halted exports after FY19, when it had earned Tk23 crore from overseas sales.

In the January–March quarter of FY25, the company posted a loss of Tk2.26 crore, compared to a loss of Tk2.24 crore in the same period of the previous fiscal year. Loss per share in this quarter stood at Tk0.64.

As of 31 December 2025, the sponsors and directors of the company jointly held 30.26% of shares, while institutions held 4.89%, foreign investors 0.20%, and the general public 64.65%.