Paramount Textile to invest $85.45m for business expansion

Paramount Textile Limited, a sister concern of Paramount Group, will invest $85.45 million to enhance its production capacity.

The company wants to invest $70.45 million for BMRE (Balancing, Modernisation, Rehabilitation, and Expansion), and $15 million to set up a new fabrics unit.

Foreign term loans will be the source of the fund. The company will receive this fund in instalments as the work progresses.

Md Robiul Islam, company secretary of Paramount Textile, said the production capacity of the new fabrics unit will be 400 tonnes per month, which will almost double the total production capacity of the existing factory.

He also said textile entrepreneurs got huge buy orders amid the pandemic. Therefore, the company decided to invest according to the growing demand for manufactured products.

"The project work is already in progress and we hope to earn revenue from the project gradually from the January to March quarter of this fiscal year," he added.

In November 2020, Paramount Textile decided to invest in a 30MW (AC) grid-tied solar PV power plant in Intraco Solar Power Limited (ISPL). The company was supposed to purchase 80% shares of ISPL owned by Intraco CNG Ltd.

Earlier, the company invested in a 200MW heavy-speed diesel-based power plant at Baghabari in Sirajganj.

Paramount Textile was incorporated in 2006. It produces and delivers woven fabrics and more than 85% of its total income comes from yarn-dyed fabrics.

It owns 65% of its subsidiary Paramount Dredging Ltd, and 49% of Paramount BTrac Energy Limited (PBEL) which came into operation in June 2019.

Paramount Textile recommended a 20% cash and 5% stock dividend for the fiscal year 2020-21.

During the period, the net profit of the company was Tk66.19 crore and its earnings per share (EPS) was Tk4.27.

From July to September of the current fiscal, the company made a revenue of Tk136.33 crore and a net profit of Tk23.66 crore.

During the period, its EPS stood at Tk1.53 and net asset value per share Tk28.67.

As of 31 October 2021, the sponsors and directors jointly held 60.95%, institutions 8.65%, foreign investors 4.09%, and the general public held 26.31% shares in the company.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk94.70 on Tuesday.