Far Chemical Industries entered the spinning business with an investment of Tk300 crore for business diversification, media reported based on a statement released by the company on the Dhaka Stock Exchange website.
The stock market-listed firm has arranged the investment with bank loans and from its own sources.
According to the official data, the company’s daily spinning capacity is 18 tonnes, but the rolling blackouts now cripple 30% of the production.
Far Chemical initially set up 33,600 spindles in the production line in Narayanganj’s Rupganj, as the new spinning machines have been imported from Germany, Italy, Japan, and Switzerland.
The annual revenue of the spinning unit will be around Tk230 crore, while 15% net profit will be generated from the total revenue, said the management of the firm.
Speaking to the media, Md Humayun Kabir, director of marketing of Far Group, said they will jump into commercial production after one month if the trial yields positive outputs.
He said there is a huge potential in the local apparel backward linkage sector and it is burgeoning day by day.
“We set up the spinning unit to meet the growing demand,” he added.
Far Chemical – a concern of Far Group – manufactures and exports chemical products to different export-oriented textiles, dyeing, and apparel industries.