2019-10-27 16:33:46 BdST
Kohinoor Chemical to invest Tk3.5cr on business expansion
Kohinoor Chemical Company Ltd, a cosmetics and toiletries manufacturing company that sells products under the brand name Tibet, is going to invest Tk3.5 crores for expanding its business.
To fund this expansion, for 2018-19 fiscal, the company has proposed 20 percent cash dividends and 20 percent stock dividends for its shareholders. The decision was taken at the company's board meeting on Thursday.
Kohinoor Chemical will issue around 3.5 million new shares through stock dividends at a face value of Tk10 per share.
Through this, Kohinoor Chemical will see a rise of Tk3.5 crores in its paid-up capital, which will be spent as working capital to expand its business.
The company will procure capital machinery to increase its production capacity. Besides, the necessary infrastructure will be built for the existing factory, said senior officials of Kohinoor Chemical.
Under the Tibet brand, the company produces cosmetics and toiletries and sell those across Bangladesh.
Other products of the company include washing powder, hair oil, cream, and toothpaste, sells of which are increasing by 20 percent on average each year.
The company's highest-earning comes from the sales of laundry soaps – Tibet 570 Soap and the Tibet Ball Soap.
In 2018-19 fiscal, total sales of Kohinoor Chemical – a sister concern of Orion Group – were around Tk400 crore.
Earlier, in the fiscal year 2014-15, its total sales stood at Tk265 crore.
In the last five years, the company registered 51 percent growth in its total sales.
Similarly, its net profit rose by 91 percent to Tk17 crore from Tk9 crore five years ago.
Enlisting with the capital market in 1988, Kohinoor Chemicals now has Tk17 crore in paid-up capital and Tk52 crore in reserve capital.
The company's share price stood at Tk413.20 as of Thursday. In the last year, its highest share price was Tk507 while the lowest price of shares reached Tk360.20.
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