To fulfill the rising demand for its merchandise, Olympic Industries Restricted – the main biscuit producer within the nation – has expanded its cracker and exhausting dough biscuits line with an funding of Tk42 crore.
It’s the eleventh biscuits manufacturing line for the corporate which obtained into the biscuit business by establishing its first manufacturing line in 1996.
In a inventory trade submitting on Wednesday, Olympic mentioned the newly put in line was efficiently commissioned from Tuesday.
“Olympic Industries used to supply these merchandise on a small scale however now the manufacturing capability has been elevated as their demand surged,” mentioned Md Nazimuddin, govt director and firm secretary of the biscuit producer.
Based in 1979 and listed on the Dhaka Inventory Change (DSE) in 1989, battery producer Bengal Carbide Restricted was renamed Olympic Industries Restricted after its enterprise diversification.
Seeing a very good prospect in customers’ every day lives, the corporate had diversified its enterprise and ended up changing into the market chief, incomes greater than 95% of its whole annual income from its biscuits and confectionery merchandise.
Md Nazimuddin mentioned that the enterprise of the corporate grew considerably amid the pandemic, and it’s nonetheless on the upward trajectory.”
“However the biscuits business is now going through elevated prices because of hikes in uncooked and packing supplies, which has been impacting the corporate’s revenue,” he added.
In keeping with the corporate’s half-yearly financials for fiscal 2021-22, regardless of an 11% development in income, its internet revenue fell by 33% to Tk72.12 crore from a 12 months earlier.
Excessive prices of uncooked and packaging supplies have pushed up its prices by 18%.
The eleventh line
After diversifying its enterprise from the battery business to shopper merchandise for the reason that mid-Nineties, the corporate has expanded its enterprise portfolio to biscuits, confectionery, bakery, and snacks within the final 25 years.
In November 2020, the corporate determined to determine its eleventh manufacturing line of cracker and exhausting dough biscuits for a value of Tk42 crore through money and financial institution financing, nevertheless it confronted delays because of the Covid-19 pandemic.
At the moment, the corporate mentioned it might import a brand new 1.80-meter width plant, full with ancillary and packing equipment, flour and sugar dealing with methods, and a gasoline generator from Italy, China, Hong Kong and India.
Olympic additionally mentioned it’s going to procure some gadgets from native sources to supply new premium kinds of crackers and exhausting dough biscuits of round 12,442 tonnes every year.
At current, it has 1,23,439 tonnes of manufacturing capability with the tenth manufacturing line, and it was capable of produce 1,17,420 tonnes within the 2020-21 fiscal 12 months.
The corporate targets rearranging the full present and upcoming amenities to make sure the manufacturing of 1,29,656 tonnes of biscuits, and bakery gadgets yearly.
In fiscal 2020-21, its income rose to Tk1803 crore, a 13.45% improve from a 12 months in the past.
Its value of products bought elevated by 17.78% over the earlier fiscal 12 months, and revenue after tax barely rose to Tk203.74 crore from Tk202.49 crore in FY20.
Within the first half of fiscal 2021-22, its income rose to Tk1035 crore, and revenue Tk72.12 crore, whereas within the corresponding interval of the earlier fiscal 12 months, it was Tk933 crore, and Tk107.38 crore, respectively.