RD Food to invest Tk7cr for machinery

The Rangpur Dairy & Food Products – a manufacturer of dairy and non-dairy products from milk in the country – has decided to invest Tk7 crore to buy machinery.

The company, which is widely known as RD Food, expects its annual revenue will increase 15-18% following the investment.

It has also decided to launch four new brands of products this month.  

The food manufacturer, which got listed on the capital market in 2011, disclosed the information on the country's stock exchanges on Thursday.

Flowing the announcement, its shares price slightly increased by 2.05% to Tk54.70 each from Tk53.6 on Wednesday.

According to its disclosure, the investment amount of Tk4.20 crore is allotted for importing machinery and Tk2.80 crore for local costs.

The company will source 50% of the investment from bank borrowings and the rest 50% from its own fund.

The company said, after the investment and launching of new products, the annual revenue will be Tk11 crore approximately.

The profit is estimated to increase 12% to 15% following the new investment.

Rangpur Dairy & Food Products' annual revenue is on average around Tk50 crore and its net profit is more than Tk3 crore, according to its financials.

The company collects raw milk from rural areas in the northern parts of Bangladesh.

After processing the raw milk, the company produces dairy products as well as non-dairy products.

Dairy products are UHT fresh milk, chocolate milk, mango milk, strawberry milk, banana milk, and Ghee.

Non-dairy products include drinks, candy, toast biscuits, fried dal, Bar-B-Q chanachur, spicy chanachur, noodles, cup jelly, and potato crackers.

In fiscal 2019-20, it posted a profit of Tk2.21 crore and it paid 2% cash and 2% stock dividend to its shareholders.

In the July-March period of fiscal 2020-21, the revenue stood at Tk50.91 crore and net profit at Tk3.85 crore.