Queen South’s new investment to save Tk1cr monthly
Queen South Textile Mills Limited is going to install auto-dispensing and modernised salt recovery systems to cut back its chemical and water consumption which will save about Tk1 crore per month.
According to industry insiders, salt is a major expense in the dyeing process especially for natural fabrics like cotton.
Therefore, reducing this expense will help the company curb operating costs and directly boost its gross profit, the company said in a statement.
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Alongside cost management, the company will be able to address the environmental issues that are caused by excessively salty water discharges from the dyeing process.
To install this eco-friendly system, Queen South will invest Tk16 crore. The general shareholders have already approved this investment in the company's annual general meeting (AGM) held on 22 December.
But the Dhaka Stock Exchange published the company's decision as price sensitive information after four working days from the AGM.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) has allowed the company to issue a 6% stock dividend for the 2021-22 fiscal year which will help the company fulfil the minimum paid-up capital requirement as per listing rules.
It also recommended a 6% cash dividend for FY22.
Queen South Textile's Chairman Wong Kwok Chuen said in the FY22 annual report, "By overcoming all such challenges, we were able to continue our progress in every parameter by achieving positive outcomes in practically every metric for the last fiscal year. Although the statistics were much higher than previous years, the company's business is likely to remain tough for the future."
