Shasha Denims plans to diversify its business into inland container handling to sustain income amid uncertainty in denim manufacturing.
"The denim business is becoming challenging due to the unavailability of gas and other factors. That's why we have planned early to open other windows of earnings," said the company secretary of Shasha Denims, Aslam Ahmed Khan.
The denim maker participated in the tender process for the construction and operation of the Ghorashal Inland Container Depot. "Our consortium won the tender. The project will generate income for 30 years after its completion in 2028," added Khan.
According to a disclosure on Thursday, Shasha Denims was awarded the tender to develop the Ghorashal Inland Container Depot at the Ghorashal Railway Station area under a joint venture agreement. It will operate under a public-private partnership (PPP) with Bangladesh Railway.
To that end, a new company will be established specifically for the container depot.
"How much we will earn will depend on our stake in the new company, and that is yet to be decided," said Khan.
The shareholding structure of Shasha Denims, other sponsors and joint venture partners will be determined during the company's formation.
Upon fulfilling the terms of the Letter of Award (LoA), this new entity will enter into a formal agreement with the Container Company of Bangladesh Ltd. (CCBL) under the Ministry of Railway, according to the disclosure.
Meanwhile, the share price of Shasha Denims fell 1.88 per cent to Tk 15.70 each on Thursday on the Dhaka Stock Exchange.
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