Saif Powertec is going to form a subsidiary -- Innovative Logistics & Shipping -- in order to branch out into trading in commodities and farming.
The country's lone terminal operator set Tk 25.50 million as initial investment for the business expansion and diversification, according to a stock exchange filing on Sunday.
The new venture will engage in providing logistics, inland transportation, cargo transport, port operation, food storage, and labour management.
It will also act as an agent for export, import, manufacturing, distribution, and marketing for both Bangladeshi and foreign companies.
Moreover, Innovative Logistics will conduct trades in sugar, oil (such as soybean, mustard, coconut, and sunflower), oil cakes, dairy products, baby foods, fruits, vegetables, grains, spices, nuts, tea, coal, and many other items, according to the company's disclosure.
Saif Powertec has come up with the plan to form another subsidiary at a time when its income from handling containers and other operations in the Chittagong container terminal and the new mooring container terminal of the Chittagong Port Authority has shrunk for a significant decline in import and export business.
The company's consolidated profit dropped 62 per cent year-on-year to Tk 72 million in July-December 2022. It is yet to disclose financial results for FY23. Its profit fell 20 per cent year-on-year to Tk 501 million in FY22.
Initially, the new subsidiary will carry on trading business, said Md. Hasan Reza, CFO of Saif Powertec Ltd.
"We have also planned to get involved in farming cattle, pigeons, buffaloes, mushroom cultivation, container and cargo handling, and shipping agency services in the future,"
"We are striving to increase the efficiency and productivity of the company's business units as well as subsidiaries."
Incorporated in 1995, Saif Powertec also works as an infrastructure support service provider. It has been operating as a backup container handling operator at Pangaon Inland Container Terminal and Kamlapur Inland Container Depot.
Saif Powertec is also involved in Dubai port cargo handling, river dredging, battery manufacturing, and power generation.
It has set its foot in the production of renewable energy, providing LED lighting solutions, making plastic products for pharmaceutical companies.
Currently, Saif Powertec has six subsidiaries, Saif Plastic & Polymer Industries, Saif Port Holdings, Saif Logistics Alliance, 88 Innovations Engineering, Saif Maritime L.L.C, and Saif United Shipping & Trading.
However, it generates a significant part of its revenue from its port and terminal operations. The battery segment is another major contributor to the revenue generation.
The stock of Saif Powertec, which was listed on the DSE in 2014, has remained stuck at the floor price of Tk 29.70 since November last year.
babulfexpress@gmail.com