Olympic Industries – the country's leading biscuit manufacturer – will invest Tk25.65 crore for land development, extension works, production capacity enhancement, and importing cupcake making lines.
According to a company disclosure on the website of the Dhaka Stock Exchange on Tuesday, Olympic will manage the investment gradually from its sources or working capital financing.
Of the Tk25.65 crore, Olympic will invest a total of Tk9 crore for developing land, and constructing boundary walls, main gate, security guard's room, and internal roads. Of the Tk9 crore, Tk33.62 lakh will be paid as design charges.
The company will invest Tk8.50 crore for undertaking first phase extension works to construct a 5-storey building in Kutubpur with a floor area totalling 73,000 square feet, and extend a 7,300 square feet tin shed on the ground floor for carton and snacks units.
The space extension will meet the shortage of storage space to keep raw materials, packing materials, finished goods, craft papers, and finished cartons.
Of the investment amount, the company will use Tk1.66 crore to enhance the production capacity of corrugated carton units at Kutubpur.
Also, it will import cupcake making lines for the production of plain cakes, and custard cakes along with packing lines, nitrogen generator, metal detector, and other items from China.
Earlier in August 2020, the company bought a 513.84 decimal land at Lolati in Narayanganj for business expansion for Tk60 lakh excluding other costs.
After that, it purchased 16 decimal and 1.75 decimal lands in the same place.
Finally, the rest of the investment amount – Tk6.49 crore – will be used to set up the cupcake production line at the company's Lolati factory in Narayanganj.
Olympic Industries, which got listed on the bourses in 1989, manufactures and supplies biscuits, candies, and confectionery items to both the local and international markets. Also, the company sells dry cell batteries, cartons, and plastic products.
In the 2020-21 fiscal year, the company recommended a 54% cash dividend for its shareholders.