Olympic Industries plans to boost chocolate production

Biscuit manufacturer Olympic Industries has planned to increase its market share in the chocolate industry through a new investment of Tk 136.64 million.

The money will be spent on procuring machinery and other accessories to boost the company's annual chocolate production by 3,300 tonnes, according to a stock exchange filing on Monday.

The company said it will import machinery from Hong Kong with $1.12 million, equivalent to Tk 136.64 million (at Tk 122 a dollar). The new machines will be installed at the company's factory in Narayangonj.

"We will use our own fund to purchase and install machines," said company secretary Mintu Kumar Das. He could not tell the timeframe to execute the plan and the impact on revenue.

In FY24, Olympic sold 0.12 million tonnes of biscuits and confectioneries and earned nearly Tk 25.46 billion in revenue.

The company showed Tk 1.83 billion as net profit in FY24, a more than 18 percent increase from the year before.

Meanwhile, the stock fell 1.35 percent to Tk 146.10 per share on Monday on the Dhaka Stock Exchange (DSE).

Olympic Industries, a leading biscuit manufacturer in Bangladesh, has strategically invested in chocolate production as part of its broader business diversification efforts. Over the past six years, the company has allocated approximately Tk 360 crore towards factory expansion, with Tk 12 crore specifically dedicated to chocolate production.

The move is aimed at establishing a strong presence in the confectionery industry, enabling Olympic Industries to tap into new market segments and reduce reliance on its main product -- biscuit.

The company's expansion strategy includes introducing new products, such as instant noodles, dry cakes, soft cakes, chocolate-enrobed wafers, filled candies, toffees, toasts, rusks, and savory snacks.

The decision to diversify products came in response to intense competition with major conglomerates, such as Meghna Group, TK Group, Bashundhara Group, Akij, New Zealand Dairy, and Paragon Group.

By investing in chocolate and other confectionery products, Olympic Industries aims to maintain its leading position and adapt to the evolving market landscape.