Aziz Pipes to resume production after eight months

Aziz Pipes Ltd is all set to resume production from 1 October next, eight months after it suspended operations facing insufficient supply of raw materials.

Sources in the company said it had to keep production suspended for a long time as the company failed to collect adequate raw materials it needed amid the Covid-19 pandemic. 

An official of the company said the company usually procures raw materials from vendors who hiked prices of raw materials almost double during the pandemic time.

Besides, the prices of PVC resin, a leading raw material of the company, went up locally, he said, adding that these reasons had made the production costs greater than the market value of the finished products.   

Due to this cost inconsistency, the company could not run its production properly, which finally forced it to announce a temporary closure of operation.

Before the closure, the company was producing uPVC pipes and fitting uPVC Profile both for local and international markets.

In the year ended in June 2021, the company incurred a loss of Tk25.35 lakh. The company had registered a profit of Tk14 lakh in the previous year ended in June 2020. 

The company's turnover also came down to Tk14.75 crore in 2021, less 24% compared to 2020.

Incorporated in 1981, Aziz Pipes Ltd got listed with the Dhaka stock exchange in 1986.

Out of the company's total shares, sponsors and directors jointly held 23.93%, institutional investors 5.53% and general investors 70.54%.

The last trading price of the company's shares at the Dhaka Stock Exchange was Tk130.90 each on Sunday.