ACI approves Tk 487m investment in its subsidiary

Premiaflex Plastics, a subsidiary of ACI Limited, will manufacture and market household plastic products like furniture and other allied plastic articles.

The board of directors of ACI Limited has approved a plan in this regard, said a disclosure posted on Dhaka Stock Exchange (DSE) website on Sunday.

The ACI Limited, the parent company of Premiaflex Plastics and one of the largest business conglomerates in Bangladesh, holds 87.32 per cent stake in the subsidiary.

Initial investment in the new company would be Tk 486.88 million with a projected sales target of Tk 1,301 million in 2018-2019, Tk 1,893 million in 2019-2020 and Tk 2,011 million in 2020-21, according to the disclosure.

ACI established as the subsidiary of Imperial Chemical Industries (ICI) in 1968 and renamed as Advanced Chemical Industries (ACI) in 1992.

Since then, the company has expanded to areas spanning from pharmaceuticals, consumer goods, agri-business and farm machinery and organised retailing.

Currently, ACI operates through 14 subsidiaries and three joint ventures, with 8,364 people working for the conglomerate.

ACI is a market leader in various consumer products like aerosol, antiseptic liquid, salt, mosquito coil while it also operates the country's largest retail chain super shop Shwapno.

Premiaflex Plastics was incorporated in 2008. The factory is located at Gazipur. Premiaflex Plastics is a growth-oriented company, specialising in the manufacturing of flexible packaging.

Each share of ACI, which was listed on the DSE in 1976, closed at Tk 404.70 on Sunday, losing 0.49 per cent over the previous session.

The company has reported consolidated earnings per share (EPS) of Tk 7.99 in six months for July-December, 2017 as against Tk 11.67 for the same period in the previous year.

The company disbursed 115 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2017.

ACI's paid-up capital is Tk 482.02 million and authorised capital is Tk 500 million. Its total number of securities is 48.20 million.

The sponsor-directors own 44.30 per cent stake in the company while institutional investors 28.79 per cent and the general public 26.91 per cent as on February 28, 2018, the DSE record shows.

Meanwhile, in the evening, ACI Limited launched the ACI Premio Plastics at ACI Centre of Tejgaon industrial area in the capital, according to a statement.

ACI Premio Plastics has started its journey with 200 premium design and quality home and furniture plastics goods. The plastics products are available in 35 different colour shades. All the products are made by premium plastics resin using Chinese and Taiwanese technology. Moreover, it is offering the lifetime warranty for its furniture goods.

Dr. F H Ansary, MD, Premiaflex Plastics Limited and Prodip Kumar Poddar, Business Director, ACI Premio Plastics along with other high officials of ACI Limited were present in the launch and logo unveiling ceremony of ACI Premio Plastics.

[email protected]