Meghna Cement set to expand production capacity
Sunday, 3 January 2010
FE Report
Meghna Cement Mills Ltd is set to expand its production capacity due to consistent consumption and export growth.
"We are going to enhance our productivity and capacity utilisation as well in the new year," an official of Meghna Cement told the FE.
He said the company has already grabbed a big market in country's northern and western areas and now it is going to penetrate in the rest of the areas.
According to the latest annual report of the company, Meghna Cement had a production capacity of 1.0 million metric tonnes (MT) in the year ended December 31, 2008, but it produced 5,58,494 MT during the period.
"So, out of 4,41,506 MT shortfall against our total capacity, we are going to raise the production in the coming new year as construction industry is set to see huge demand of the item," the Meghna Cement executive hinted.
The company in its 17th annual general meeting held August 30 last approved 15 per cent cash dividend for the shareholders for the year ended december 31, 2008 which was 30 per cent in 2007, 25 per cent each in 2006, 2005 and 2004.
The company's profit after tax was Tk 23.13 million in 2008 against Tk 148.18 million in 2007.
The profit after tax was Tk 96.24 million in 2006, Tk 63.75 million in 2005 and Tk 18.15 million in 2004.
The net sales was Tk 3267.06 million in 2008, Tk 2824.43 million in 2007, Tk 3367.40 million in 2006, Tk 2954.90 million in 2005 and Tk 1939.52 million in 2004.
Commenting on the sharp fall of profitability of the company in 2008, managing director of the company, Ahmed Akbar Sobhan said : The performance of the construction sector was very low as the implementation of the public works was very slow during the emergency period of 2007 and 2008 resulting lower turnover of the backward linkage industries including cement sector of the country.
The company which went on commercial production in January 1996 has the factory at Mongla Port in Bagerhat district.
The company's paid-up capital is Tk 225 million.
"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 new year as major infrastructure projects like Padma Bridge, Dhaka-Chittagong four-lane highway will begin shortly," an industry observer said.
An official of Bangladesh Cement Manufacturing Association, said though cement consumption is growing, local manufacturers have to keep a large portion of their factories idle, as "local factories will be able to produce in full swing when those public construction works begin".
Presently there are 30 operational cement companies that can produce around 20 million tonnes of cement a year against a demand for 8.5 million tonnes.
Of them, Heidelberg Cement, Lafarge Surma Cement Confidence Cement, Meghna Cement, Niloy Cement, Aramit Cement, Padma Cement and Modern Cement are listed on the stock exchanges.
The eight listed cement companies now have a total of 115,791,374 shares in the stock market.
During construction of Bangabandhu Bridge, the government offered duty free facilities to the constructing firm to import machinery and raw materials for cement.
Meghna Cement Mills Ltd is set to expand its production capacity due to consistent consumption and export growth.
"We are going to enhance our productivity and capacity utilisation as well in the new year," an official of Meghna Cement told the FE.
He said the company has already grabbed a big market in country's northern and western areas and now it is going to penetrate in the rest of the areas.
According to the latest annual report of the company, Meghna Cement had a production capacity of 1.0 million metric tonnes (MT) in the year ended December 31, 2008, but it produced 5,58,494 MT during the period.
"So, out of 4,41,506 MT shortfall against our total capacity, we are going to raise the production in the coming new year as construction industry is set to see huge demand of the item," the Meghna Cement executive hinted.
The company in its 17th annual general meeting held August 30 last approved 15 per cent cash dividend for the shareholders for the year ended december 31, 2008 which was 30 per cent in 2007, 25 per cent each in 2006, 2005 and 2004.
The company's profit after tax was Tk 23.13 million in 2008 against Tk 148.18 million in 2007.
The profit after tax was Tk 96.24 million in 2006, Tk 63.75 million in 2005 and Tk 18.15 million in 2004.
The net sales was Tk 3267.06 million in 2008, Tk 2824.43 million in 2007, Tk 3367.40 million in 2006, Tk 2954.90 million in 2005 and Tk 1939.52 million in 2004.
Commenting on the sharp fall of profitability of the company in 2008, managing director of the company, Ahmed Akbar Sobhan said : The performance of the construction sector was very low as the implementation of the public works was very slow during the emergency period of 2007 and 2008 resulting lower turnover of the backward linkage industries including cement sector of the country.
The company which went on commercial production in January 1996 has the factory at Mongla Port in Bagerhat district.
The company's paid-up capital is Tk 225 million.
"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 new year as major infrastructure projects like Padma Bridge, Dhaka-Chittagong four-lane highway will begin shortly," an industry observer said.
An official of Bangladesh Cement Manufacturing Association, said though cement consumption is growing, local manufacturers have to keep a large portion of their factories idle, as "local factories will be able to produce in full swing when those public construction works begin".
Presently there are 30 operational cement companies that can produce around 20 million tonnes of cement a year against a demand for 8.5 million tonnes.
Of them, Heidelberg Cement, Lafarge Surma Cement Confidence Cement, Meghna Cement, Niloy Cement, Aramit Cement, Padma Cement and Modern Cement are listed on the stock exchanges.
The eight listed cement companies now have a total of 115,791,374 shares in the stock market.
During construction of Bangabandhu Bridge, the government offered duty free facilities to the constructing firm to import machinery and raw materials for cement.