Shasha Denims Limited intends to invest approximately Tk 155 crore to expand its production capacity in the Dhaka Export Processing Zone (DEPZ), the company told the media (Daily Star).
The manufacturer claimed the board has decided to expand the production capacity by adding 105 weaving machines in its plots at the DEPZ.
Media reported citing Aslam Ahmed Khan, company secretary of Shasha Denims, that the investments are expected to total Tk 155 crore.
In GA Garments Ltd, where the directors have a shared interest, Shasha Denims also intends to make an investment there.
In order to obtain shareholder approval for the investment in the new firm, the board of directors has decided to conduct an extraordinary general meeting.
The investment in shares of GA Garments will be made in exchange for assets of Shasha Denims under a vendor’s agreement. The remaining amount will be paid through bank transfer, said the filing.
According to Khan, Shasha Garments consumes 10%-15% of denim products manufactured by Shasha Denims and the rest is sold to other companies.
If GA Garments buys products from Shasha Denims, it would be beneficial for both parties, he said.