The product line of BPML is comprised of mainly tissues and paper products
The Production capacity of Bashundhara Paper Mills limited (BPML) has increased to 1, 43,050 metric tons annually. The product line of BPML is comprised of mainly tissues and paper products.
Recently, Bashundhara Paper Mills added a new tissue unit to its Narayanganj plant to meet rising demand for its products in local and international markets.
Austria-based Andritz provided technical support for the new unit. Andritz is a globally renowned technology and service partner for the production of various types of papers and tissues.
The Company says they have utilized 100% of its initial public offering (IPO) funds and successfully implemented the set-up of tissue machines. The machines will increase the capacity of different grades of tissues by 30,000 MT yearly, and add diversity to their product portfolio.
In February this year, commercial production of the new unit started. This new set-up is expected to bring about Tk. 400 crore in revenue and Tk36.00 crore in profits after tax per year at optimum utilization level. Before installing this machine, BPML had 1,13,050 MT/Year tissue & paper manufacturing capacity.
Bashundhara Paper Mills Limited (BPML) is one of the major concerns of the Bashundhara Group. The conglomerate was incorporated in Bangladesh in 1993 as a private limited company. Subsequently it was converted into a public limited company, and lastly as a publicly listed company.
After starting commercial operation as an import-substitute local paper manufacturing company, another two sister concerns of the Bashundhara Group--Bashundhara Newsprint & Duplex Board Industries Limited and Bashundhara Tissue Industries Limited--were merged with BPML on October 10, 2009. It has now three production units in Narayanganj and Munshiganj districts.
Md Abul Hasan, head of the new BPML project told the Dhaka Tribune, this Company continues to develop its presence in the markets. In its paper and tissue business, the company sees bigger opportunities in the coming days. Sustainable development is integral to the success of its business and its ability to create value, Hasan added.
He also said, run by a group of sturdy technical and highly experienced paper professionals of the country since its inception, all the production units of BPML are absolutely environment friendly, thanks to the installation of the most modern Effluent Treatment Plants (ETPs).
Paper producers in Bangladesh import raw materials, including pulp of all types from countries like Indonesia, Singapore, Germany, Canada, Finland, Sweden, Brazil, Chile, and USA, etc.
The sales revenue of the company maintained its positive trend in FY2017-18. The net sales revenue amounted to Tk1,082.10 crore compared to Tk1,000.40 crore in FY2016-17, registering an increase in sales revenue of Tk81.70 crore from the previous financial year.
The company registered a net profit of Tk69.36 crore during the period which was Tk38.51 crore in FY2016-17, registering a growth of 80.11%.
The Board of Directors recommended 20% cash dividends for all ordinary shareholders on 30 June 2018.
The BPML, presently an 'A' category company, was listed in the stock exchanges in July last year. The company's sponsor-directors hold 70.86% shares, institutions 6.14%, and general shareholders 23%. The company's share price closed at Tk76.90 on Thursday on the Dhaka Stock Exchange (DSE).
The company has raised some Tk200 crore in capital by the book-building method. This is the country’s third largest initial public offering by book value. In August 2017, Bashundhara Paper Mills Ltd received approval from the Bangladesh Securities and Exchange Commission to begin the process to determine the IPO cut-off price. The funds raised from the IPO were spent on buying new machineries, repaying bank loans, bearing IPO expenses, and defraying other company costs.