Confidence Cement to double capacity amid diversification
Tuesday, 26 January 2010
FE Report
Confidence Cement Ltd is going for massive expansion doubling its current annual production capacity to 500,000 metric tonnes to meet the growing demand of the item.
The company is also going for diversification of businesses in other sectors also.
"Our company is expanding the production facility and the additional output will be added to our mainline by the end of this year," Imran Karim, director of the company told the FE in an interview.
Mr Imran said consumption of cement, one of the key backward linkages of the construction and real estate sectors is expected to witness phenomenal growth in Bangladesh in the coming months as major infrastructure projects like Padma Bridge, Dhaka-Chittagong four-lane highway and Elevated Expressways are in the offing.
"We hope investors will support our expansion projects as it will definitely raise the company earnings which will ultimately give lucrative returns to the shareholders," Mr Imran said.
According to the latest annual report of Confidence Cement, the company produced a total of 208,434 MT of cement in the year ended December 31,2008 against 220,029 MT of 2007. The capacity utilisation in 2008 was 43 per cent against 46 per cent in 2007.
He said the company along with its sister concerns is planning to invest about Tk 7.0 billion in sectors like power generation, textile, electrical transformers, automotive and industrial batteries within the next four years.
Apart from cement, Confidence Group has already huge investments in steel, power and telecommunication sectors.
The companies under the Confidence Group include Confidence Steel, Confidence Power, Electropac Industries and Jingyi Electropac Bangladesh Ltd.
Confidence Cement is a local partner of Independent Power Corporation Plc (UK) and Asian Paints Ltd (India).
Independent Power Corporation has over 7,000 MW of installed capacity of power generation globally and the company has plans to invest in large power plants in Bangladesh also.
Confidence Cement earned Tk 114.02 million as net profit during the first nine months of 2009 while the sales turnover was Tk 941.75 million during the same period.
The company has set up a 11 megawat natural gas power generation station at Hobiganj titled 'Energypac Confidence Power Venture Ltd' jointly with Energypac Power Generation Ltd.
Confidence Cement got listed on Dhaka Stock Exchange (DSE) in 1995.
Confidence Cement Ltd is going for massive expansion doubling its current annual production capacity to 500,000 metric tonnes to meet the growing demand of the item.
The company is also going for diversification of businesses in other sectors also.
"Our company is expanding the production facility and the additional output will be added to our mainline by the end of this year," Imran Karim, director of the company told the FE in an interview.
Mr Imran said consumption of cement, one of the key backward linkages of the construction and real estate sectors is expected to witness phenomenal growth in Bangladesh in the coming months as major infrastructure projects like Padma Bridge, Dhaka-Chittagong four-lane highway and Elevated Expressways are in the offing.
"We hope investors will support our expansion projects as it will definitely raise the company earnings which will ultimately give lucrative returns to the shareholders," Mr Imran said.
According to the latest annual report of Confidence Cement, the company produced a total of 208,434 MT of cement in the year ended December 31,2008 against 220,029 MT of 2007. The capacity utilisation in 2008 was 43 per cent against 46 per cent in 2007.
He said the company along with its sister concerns is planning to invest about Tk 7.0 billion in sectors like power generation, textile, electrical transformers, automotive and industrial batteries within the next four years.
Apart from cement, Confidence Group has already huge investments in steel, power and telecommunication sectors.
The companies under the Confidence Group include Confidence Steel, Confidence Power, Electropac Industries and Jingyi Electropac Bangladesh Ltd.
Confidence Cement is a local partner of Independent Power Corporation Plc (UK) and Asian Paints Ltd (India).
Independent Power Corporation has over 7,000 MW of installed capacity of power generation globally and the company has plans to invest in large power plants in Bangladesh also.
Confidence Cement earned Tk 114.02 million as net profit during the first nine months of 2009 while the sales turnover was Tk 941.75 million during the same period.
The company has set up a 11 megawat natural gas power generation station at Hobiganj titled 'Energypac Confidence Power Venture Ltd' jointly with Energypac Power Generation Ltd.
Confidence Cement got listed on Dhaka Stock Exchange (DSE) in 1995.