What is the profile of Energypac Power Generation? What is its latest financial status?
Energypac Power Generation Limited (EPGL) was incorporated as a private limited company on July 15, 1995, under the Companies Act 1994 and was subsequently converted to a public limited company on December 27, 2011. Energypac has become one of the country's leading electromechanical power engineering companies. As of June 30, 2019, EPGL’s current turnover is around Tk1,440 crore.
Why does your company want to go public?
There is a list of qualitative factors behind Energypac Power Generation's success, which deserves the company's enlistment in the stock market.
EPGL comprises of three core business segments – manufacturing, trading, and service. It has successfully entered the LPG market branding as G-GAS. EPGL has also been generating a significant amount of revenue from the motor vehicle division for decades.
The company has successfully established a strong ground by penetrating the market with renowned brands like JAC, JCB India Limited. The company has established a plant to assemble gas and diesel-based generators.
Through the initial public offering (IPO), Energypac will raise Tk150 crore from the capital market. Which projects will be using the IPO fund?
It will be used to expand the LPG business, repay bank loans, and meet the cost of the IPO process. EPGL has already established an LPG bottling and distribution plant located in Chunkuri at Dacope upazila in Khulna, with an area of land 1969.775 decimals to diversify its revenue base further.
It has stepped into the business of LGP activities to import, storage, bottling, and marketing in Bangladesh under the brand name of G-Gas. It has a storage capacity of 5,400.83 MT LPG.
How much will it increase the company’s revenue after using the IPO fund?
With the IPO fund, we will be able to clear some backlogs from project financing, procure raw materials, and develop the infrastructure.
These proceedings will affect the revenue and profitability of the company.
What are your messages to stock investors?
Energypac is a brand that has always provided the best in class service to its clients. We have footprints in sectors that have exponential growth supported by economic growth with the best business practice and transparency. Energypac works with the belief of creating a better future for the people.
What are the challenges faced by the LPG sector?
The biggest challenge here is our inadequate infrastructure to receive deliveries from large LPG ships due to our lower river draft. This adds to the LPG import cost resulting in higher market price.
Furthermore, as LPG is mostly imported to Bangladesh, the initial challenge is the monthly international price fluctuation.
When the price tends to increase, it becomes difficult for the operator to keep the old price; on the other hand, the market is not acceptable to the new higher price. Natural calamities like fog, flood, etc. sometimes can delay transporting cylinders.
Lack of brand awareness is another challenge in the domestic LPG market, which makes a customer switch from one brand to another very fast.
Lastly, cross-filing is the most alarming concern in quality control and safety check of LPG products.
What steps do you take for good governance in your company?
EPG is an employee-owned company as the employees of this organization own significant shares. Profits are distributed among the employees through specific rules.
From the beginning of the journey, Energypac has been able to gain a strong reputation among all as an environment-friendly and fully compliant organization.
Energypac believes that the key to its success today is the creativity, confidence, and mutual respect among their indomitable staff and employees.