Bangladesh: Premier Cement Mills completes expansion programme
Leading cement manufacturer and exporter in Bangladesh, Premier Cement Mills Limited (PCML), has announced the completion of it expansion programme, raising the consolidated installed capacity of PCML to 2.4Mta from 1.2Mta at West Mukterpur, Munshigonj in central Bangladesh.
MD Shafiqul Islam Talukder, Chief Finance Officer & Company Secretary of PCML, told CemNet that the expansion project for the third and fourth units were being completed at an estimated cost of over BDT1.11bn (USD13.56m). To part finance the expansion project, the company is expected to issue an initial public offering (IPO) on 17 December to raise BDT264m by issuing 12m Ordinary Shares at an offer price of BDT22 each.
The company has estimated that demand for cement in the country will grow due to extensive infrastructure projects and high levels of construction activity. According to the Bangladesh Cement Manufacturers Association, demand is growing at an average rate of 10-12% per annum.
PCML started commercial operation in March 2004 with Unit 1, which had an installed capacity of 600,000tpa of cement. Subsequently, the company enhanced its production capacity by installing Unit 2 with a capacity of 600,000t at the same location. Unit 2 of the company started operation on 1 January 2011. Actual production in the financial year ended 30 June 2011 stood at 604,932t.
PCML cement is certified by the Bureau of Indian Standards and has been exporting its product to Tripura, Meghalaya and Assam of India. Its export earnings stood at BDT204.12m in the fiscal year 2010-11 against BDT149.04m in the previous year. In FY 2010-2011, its sales revenue was BDT3,428.08m, which was BDT1,862.27m in FY 2009-2011 resulting almost 84% growth. This sales growth was supported by the capacity expansion and increased unit prices.
The company’s net profit after tax has steadily increased over the past two-year period. It rose from BDT188.26m in FY2009-2010 to BDT324.47m during FY2010-11. After the expansion of the new unit, production as well as turnover increased, boosting profits by 42% in FY 2010-2011 compared to the previous year.
