BEXIMCO banks on foreign investment to return to profit by next year

Bangladesh Export Import Company (BEXIMCO) has projected a return to profitability by December 2026, provided the government allows foreign investment and operations resume by next month.
A recent national daily reported that a group of international investors is keen on investing in BEXIMCO, paving the way for the reopening of BEXIMCO factories.
Following this price-sensitive development, the Dhaka Stock Exchange (DSE) sought clarification from the company. In its response, BEXIMCO, through a stock exchange filing on Thursday, confirmed that the news regarding investments from Japan and the United States to relaunch 15 factories of BEXIMCO is authentic.
BEXIMCO also forecast that it would earn a net profit of Tk 3.80 billion by December next year if it could restart operations by October.
Despite this optimism, experts remain cautious. They doubt that the company will be able to rebound in such a short time but acknowledge that the reopening of the factories would generate significant employment.
Currently, BEXIMCO is a loss-making concern. It reported a loss of Tk 358.79 million for FY24, a sharp reversal from profits worth Tk 7.1 billion in the year before.
Losses deepened further in the first half of FY25, reaching Tk 3.56 billion, largely because its textile division-its main revenue driver-has remained idle since the change in the political landscape in August last year.
According to the report published in the Bangla daily Prothom Alo, Japanese firm Revival and US-based Ecomili have planned to jointly put in Tk 2.45 billion ($20 million) to reopen BEXIMCO's factories. The government has already approved the initiative, and a tripartite agreement among Revival, Janata Bank, and BEXIMCO is pending.
Revival has proposed a tripartite lease arrangement, requiring loan rescheduling. Revenues will be split between service fees to Revival and repayment of rescheduled loans.
The company also plans to secure a $20 million back-to-back LC from foreign banks, hire a global audit firm, and focus on sustainable production to restore the confidence of international buyers.
"We hope to finalize the tripartite agreement within two weeks. We don't want this (BEXIMCO) to turn into another Hallmark [Bangladeshi company infamous for loan scams between 2010 and 2012]," said Revival CEO Mohammad Faisal.
"By reopening BEXIMCO's factories, we aim to create jobs for 25,000 people and retain the global brands that once sourced from BEXIMCO," he added.
The government has already provided interest-free loans of Tk 585 crore to BEXIMCO to clear workers' wages, though recovery remains uncertain.
Both the Finance Division and the Financial Institutions Division have signaled no objection to loan rescheduling in the interest of factory reopening.
Industry insiders, however, warn that the Tk 2.45 billion investment is insignificant compared to BEXIMCO's massive debt burden.
"If large factories reopen, many jobs will be created. But profitability is questionable. BEXIMCO is a huge company with a history of default loans. Tk 2.45 billion is insignificant for its survival, but the factories should reopen," said Md. Moniruzzaman, managing director and CEO of Prime Bank Securities.
BEXIMCO's company secretary Mohammad Asad Allah reiterated the company's position while talking to The FE correspondent over the phone.
"We believe we will be profitable by December 2026. As for the loans, we will repay them gradually."
Why is BEXIMCO deluged with losses?
Shutdown of factories since August 2024 amid political turmoil has halted production.
Meanwhile, a high debt burden with Janata Bank and other institutions created heavy repayment pressure. The government had to provide loans of Tk 585 crore to clear workers' dues.
With confidence eroded by uncertainty, global clients like Zara and M&S stopped sourcing products from the company.
The reopening of the factories may involve heavy costs to bring machinery back into operation after prolonged closure. But stakeholders say that reopening BEXIMCO's factories could restore buyer confidence, protect valuable machinery, create employment, and ease the pressure on lenders.

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