Miracle Industries regains BCIC as major client after 17 years

Listed plastic packaging manufacturer Miracle Industries Limited (MIL) is set to regain a major customer after 17 years.

In a stock exchange filing on Wednesday, the company announced that state-run Bangladesh Chemical Industries Corporation (BCIC) will now purchase 50 per cent of its total requirement for woven polypropylene and polyethylene bags from Miracle.

According to the disclosure, BCIC issued a letter to Miracle Industries the previous day, conveying its decision.

The letter stated that BCIC had received approval from the Ministry of Industries to purchase 50 per cent of the required bags directly from Miracle Industries.

"If your company fails to supply the bags within the specified time, BCIC will be able to purchase the bags from alternative sources," the letter reads.

Miracle Industries used to supply 100 per cent of BCIC's bags until 2007, when the government ended that arrangement and required companies to compete through open tenders.

Orders resumed in December last year when Miracle was allowed to supply 20 per cent of BCIC's requirement.

Miracle Industries manufactures a wide range of polypropylene woven sacks used for packaging cement, fertilizer, salt, feed, sugar, food grains, and chemicals. The company operates two production facilities in Sreepur and Gazipur - one catering to the domestic market and the other focused on exports.

The company was established in 1995 as a joint venture between state-owned BCIC and four private entrepreneurs.

In August 2023, Mehmood Equities Ltd took control of Miracle Industries from the family of former state minister Lutfozzaman Babar and others. A month later, Miracle announced that Mehmood Equities, as the new controlling shareholder, had appointed three directors to its board and pledged to provide the investment required to revive operations.

Financial Performance

Miracle Industries remained profitable until FY19, when it posted revenue of Tk 60 crore and a net profit of Tk 0.77 crore, following its best-ever performance in FY17. However, in FY20 the company reported a record loss of Tk 12 crore, with revenue plunging 85 per cent year-on-year to Tk 9 crore.

In the January-March quarter of FY25, the company reported a loss of Tk 2.26 crore, almost unchanged from the same quarter of the previous fiscal year.

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