British American Tobacco (BAT) Bangladesh will set up a cigarette factory in Savar on the outskirts of the capital to grab the growing opportunities in export markets.
In a board meeting on Wednesday, the multinational tobacco giant decided to invest Tk192.5 crore for the new factory.
The enhanced capacity would boost the exports of the company, said Md Azizur Rahman, company secretary of BAT.
BAT, which was exporting some tobacco leaves earlier, began cigarette exports from Bangladesh in 2019.
In 2020, it saw manifold demand abroad, especially in China, said Azizur Rahman.
His company is hopeful about significant growth in exports in coming days and has planned to begin production in the new factory in 2021.
"China demonstrates a growing opportunity for BAT Bangladesh as many consumers there find both the quality and price of our superior," said Rahman.
"Nowadays, many countries are not producing cigarettes, but demand for high-quality ones is there. BAT Bangladesh will explore the markets too," he added.
BAT earned a gross revenue of nearly Tk27,000 crore in 2019. Paying all the high taxes and duties the net revenue stood below TK5,700 crore.