Rahim Textile Mills PLC, a concern of the New Asia Group, intends to increase capacity to generate a 24 per cent increase in revenue annually. The company will install new accessories and seamless dyeing machines at the current manufacturing premises following the plan approved by its board.
According to a stock exchange filing, it will invest Taka 13.73 crore for the machinery, civil construction, local charges, and contingency works. In addition to loans from banks and other sources, the planned new machinery installation will be paid for with money from internal sources.
In fiscal 2022-23, the firm suffered blows from increasing raw material prices, an unavailable gas supply, along with increases in gas and electricity prices, and losses in non-operating segments due to the high dollar exchange rate and adjustments to income tax provisions.
As a result, it incurred a loss of Taka 12.47 crore and did not pay dividends to its shareholders. After posting a net loss of Taka 8.61 crore the previous year, it earned a profit in the current fiscal year, recording gains of Taka 60 lakh from July to March.
The company explained the rise in profits as a result of lower marketing and administrative costs, lower costs for basic raw materials, and a drop in the cost of goods sold when compared to the prior quarter. It achieved Taka 36.34 lakh in profit during the January-March quarter as opposed to Taka 4.15 crore in loss the previous year.
After the installation of new machinery, the capacity will be expanded for seamless dyeing of 19.44 lakh yards of cloth per year, and for accessory capacity with sewing thread of 31.50 lakh cones, draw cords of 45 lakh pieces, elastic of 252 lakh yards, twill tape of 45 lakh yards, Jacquard tape of 7.20 lakh yards, and heat seal of 300 lakh pieces per year.
