Tweet
Meghna targets $2b turnover in 2013
FE Report
Commodity major Meghna Group has targetted a US$2.0 billion turnover in 2013 after embarking on an "unprecedented" expansion drive of its core businesses and adding chemical to its rich repertoire.
Bankers said Meghna, which built its first plant in 1991, was the country's biggest domestic investor in the past two years when most of its rivals had a relatively quiet period due to energy crisis.
The group had crossed one billion turnover thresholds in 2010 and would clock $1.50 billion in 2012 when several of its new plants are expected to hit upstream, company officials said
"We're confident our turnover will cross $2.0 billion in 2013 when all our under-construction ventures will start production," said Afzal Hossain, general manager of the company.
That'll make Dhaka-based Meghna the country's largest private conglomerate, surpassing Chittagong-based Abul Khaer, which last year had one billion dollar plus turnover, according to a senior multinational banker.
Presently, Grameenphone is the country's largest private company with turnover around Tk 80 billion (8,000 crore) -- a fourth of the revenue of state-owned Bangladesh Petroleum Corporation.
Meghna officials said most of the group's new growth would come from their expanded core businesses such as cooking oil, cement, flour, sugar and water.
"We've scaled up production capacities of all our commodity businesses since 2009 because of growing demand for our products in the market," he said.
Meghna has commissioned a new plant to double its cement output to 12,000 tonnes a day by 2012, making it the country's top three cement maker.
Its soyabean extraction plant, built at a cost of Tk 3.0 billion, will come upstream in October, boosting its strength in the booming business of animal feed and fish cake. Sugar refining capacity has been trebled to 3000 tonnes per day.
"We've been doubling our water output almost every year banking on the reputation that Fresh jar and canned water has built. It's now one of our major areas," he said.
The company is building its second paper plan at an investment of around Tk 3.0 billion. The plant is expected to start operation next year and will bring the group's paper strength at par with Basundhara and TK group.
Last year chemical became the latest cap to the group's rich feather. Its new caustic soda and hydrogen par oxide plant will churn out chemicals in late 2012.
The chemicals are used in the country's fast growing garment and textile sector and in water purification.
Sources said the two plants have been set up keeping in view Meghna's long-term aim to set up the country's first Polyvinyl Chloride (PVC) plant, which alone will need at least Tk 10 billion investment.
Polyvinyl chloride is the third most widely produced plastic, after polyethylene and polypropylene. PVC is widely used in construction because it is cheap, durable, and easy to assemble.
The company was also planning to buy a couple of big sized ocean going bulk carrier later this year as parts of efforts to consolidate its lead in commodity trade.
Hossain said the Meghna, which owns three mid-sized bulk ships, was looking for 9-10 year old 50,000dwt (dead weight tonnage) carriers.
In the international market a ship of that capacity now costs around $27-30 million, he said, adding the vessels are a must to secure uninterrupted supply chain for commodity business.
In addition, Meghna has ramped up shipbuilding, added new plants to flour and cooking oil and was seeking ways to set up a large power plant, following its success in small power generation.
A multinational banker who has tracked Meghna's expansion drive said the company has invested an unprecedented Tk 20 billion in the past two years, making it the biggest domestic investor during the period.
"Unlike most other commodity players Meghna has successfully developed its brands and spread its risk to an array of ventures. They expanded when most others could not," he said.
The banker was speaking on condition of anonymity as he is not authorised to talk to press.
"With consumer spending soaring at a hefty pace, Meghna is firmly positioned to reap the benefits. I won't be surprised if they emerge as the country's largest conglomerate by a distance in a year or two," he said.
http://www.thefinancialexpress-bd.co...ate=2011-08-29
MEGHNA GROUP OF INDUSTRIES - YouTube
FE Report
Commodity major Meghna Group has targetted a US$2.0 billion turnover in 2013 after embarking on an "unprecedented" expansion drive of its core businesses and adding chemical to its rich repertoire.
Bankers said Meghna, which built its first plant in 1991, was the country's biggest domestic investor in the past two years when most of its rivals had a relatively quiet period due to energy crisis.
The group had crossed one billion turnover thresholds in 2010 and would clock $1.50 billion in 2012 when several of its new plants are expected to hit upstream, company officials said
"We're confident our turnover will cross $2.0 billion in 2013 when all our under-construction ventures will start production," said Afzal Hossain, general manager of the company.
That'll make Dhaka-based Meghna the country's largest private conglomerate, surpassing Chittagong-based Abul Khaer, which last year had one billion dollar plus turnover, according to a senior multinational banker.
Presently, Grameenphone is the country's largest private company with turnover around Tk 80 billion (8,000 crore) -- a fourth of the revenue of state-owned Bangladesh Petroleum Corporation.
Meghna officials said most of the group's new growth would come from their expanded core businesses such as cooking oil, cement, flour, sugar and water.
"We've scaled up production capacities of all our commodity businesses since 2009 because of growing demand for our products in the market," he said.
Meghna has commissioned a new plant to double its cement output to 12,000 tonnes a day by 2012, making it the country's top three cement maker.
Its soyabean extraction plant, built at a cost of Tk 3.0 billion, will come upstream in October, boosting its strength in the booming business of animal feed and fish cake. Sugar refining capacity has been trebled to 3000 tonnes per day.
"We've been doubling our water output almost every year banking on the reputation that Fresh jar and canned water has built. It's now one of our major areas," he said.
The company is building its second paper plan at an investment of around Tk 3.0 billion. The plant is expected to start operation next year and will bring the group's paper strength at par with Basundhara and TK group.
Last year chemical became the latest cap to the group's rich feather. Its new caustic soda and hydrogen par oxide plant will churn out chemicals in late 2012.
The chemicals are used in the country's fast growing garment and textile sector and in water purification.
Sources said the two plants have been set up keeping in view Meghna's long-term aim to set up the country's first Polyvinyl Chloride (PVC) plant, which alone will need at least Tk 10 billion investment.
Polyvinyl chloride is the third most widely produced plastic, after polyethylene and polypropylene. PVC is widely used in construction because it is cheap, durable, and easy to assemble.
The company was also planning to buy a couple of big sized ocean going bulk carrier later this year as parts of efforts to consolidate its lead in commodity trade.
Hossain said the Meghna, which owns three mid-sized bulk ships, was looking for 9-10 year old 50,000dwt (dead weight tonnage) carriers.
In the international market a ship of that capacity now costs around $27-30 million, he said, adding the vessels are a must to secure uninterrupted supply chain for commodity business.
In addition, Meghna has ramped up shipbuilding, added new plants to flour and cooking oil and was seeking ways to set up a large power plant, following its success in small power generation.
A multinational banker who has tracked Meghna's expansion drive said the company has invested an unprecedented Tk 20 billion in the past two years, making it the biggest domestic investor during the period.
"Unlike most other commodity players Meghna has successfully developed its brands and spread its risk to an array of ventures. They expanded when most others could not," he said.
The banker was speaking on condition of anonymity as he is not authorised to talk to press.
"With consumer spending soaring at a hefty pace, Meghna is firmly positioned to reap the benefits. I won't be surprised if they emerge as the country's largest conglomerate by a distance in a year or two," he said.
http://www.thefinancialexpress-bd.co...ate=2011-08-29
MEGHNA GROUP OF INDUSTRIES - YouTube
Comment