Khan Brothers PP Woven Bag Industries Ltd survived on local sales after its business suffered a drastic fall in the second wave of the Covid-19 pandemic.
Now, the export-oriented company is running on a limited capacity for local customers, accounting for only 10% of its total production.
The company's main business is to manufacture different types of polypropylene (PP) plastic woven bags to sell in local and international markets.
Company Secretary Tapan Kumar Sarker says the company's business has been seriously affected by the pandemic when it did not receive any orders from foreign buyers.
He said its management is trying to continue partial operations to supply local businesses. Local spinning mills use PP woven bags to package cotton goods.
Due to the business downturn,many of its skilled workforce have switched jobs as exports dwindled. Ever since, the company has not recruited skilled manpower.
"We are trying to make a comeback but it needs time," he added.
Tapan Kumar Sarker said Khan Brothers exports its products mainly to Singapore, Norway, and the UK, but these markets are not favourable for the company now.
It has already laid off almost half its workers due to low production, he added.
In the July-March period of 2021, the net loss of the company was Tk1.18 crore, and the loss per share was Tk0.12.
In 2014, the company raised Tk20 crore from the capital markets to purchase machinery, construct buildings, and repay bank loans.
Several firms are engaged in manufacturing PP woven bags for fertiliser, food, chemicals, textile, cement, sand, and poultry feed in Bangladesh.
Khan Brothers PP Woven Bag Industries was incorporated as a private limited company in 2006 and went into operation the following year.
United Fiber Industries, Sino Bangla Industries, Miracle Industries, Sovon Woven Bag Industries, and Desh Bondhu Polymer Ltd are the main competitors of Khan Brothers.
Sponsors and directors hold 30.13% of shares, institutional investors 25.87%, and general investors hold 45.20% shares of the company.
According to the Bangladesh Plastic Goods Manufacturers and Exporters Association, around 70 factories in Bangladesh 9are engaged in manufacturing PP woven fabrics, PP woven bags, FIBC bags, and other types of bags.
The overall investment in Bangladesh's woven bag manufacturing sector is approximately Tk3,500 crore.