Bangladesh-based Baraka Power has acquired an export-oriented woven garment factory Bela Fashions to venture into garment business. The deal has been finalized by Baraka Power for BDT 30 crore. This has been disclosed in a statement issued by the company.
The production capacity of the said factory is 10-line (woven tops). The project will be financed at 70:30 debt-equity ratio where Baraka Power has taken 51 per cent equity. The estimated average net earnings (based on 10 years projection) of the project will be BDT 6.91 crore BDT per year.
“Baraka wants to diversify its business vertically to mitigate the risks associated with electricity business,” Monoj Das Gupta, Senior Manager (Finance) of the company, was quoted as saying by a leading Bangladeshi newspaper. The acquisition will add about BDT 7 crore net earnings per year for Baraka, according to the company’s disclosure.
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Baraka is a joint collaboration of local and a group of Non Resident Bangladeshi (NRB) entrepreneur. It is the only private sector power generating company developed by a group of NRB investors.
