Kay & Que plans to get into LPG filling, food business

After failing to survive in the carbon rod, coal tar and pesticide business, Kay and Que now want to try their luck in food processing and liquefied petroleum gas (LPG) filling.

"Along with the existing CNG station, we want to add LPG filling and fuel filling services on our premise, which will make us a one-stop station for all types of vehicles," said Abdul Awal Mintoo, chairman of the company, in its annual report for fiscal 2020-21

"There is also an active consideration to finalise a plant for additional value-added food products," he added.

Speaking on condition of anonymity, a senior official at Kay and Que (Bangladesh) Ltd, said the company board has not yet finalised its decision on opening a food business. But it is now assessing the food market.

Besides, the listed company is going to amalgamate with MultiSourcing Ltd, an ICT-based firm, with the hope that income from the ICT wing will boost the company's overall profit performance which will subsequently make a positive impact on the shareholders' interest.

The High Court already endorsed the amalgamation, but the Bangladesh Securities and Exchange Commission (BSEC) moved a petition against approval.

The senior officer further said, the company started working on the grounds of appeal sought by the market regulator so that the amalgamation attempt undertaken by the company for the greater interest of the shareholders become successful.

According to sources at the company, it once used to produce carbon rods for dry cell batteries. However, the company plunged into losses after a decline in demand for dry cell batteries in the country. Later in 2012, it closed the factory.

To diversify the business, the company started coal tar and pesticide ventures but could not develop the necessary marketing system.

So these businesses have never seen a profit. The owners have also closed these factories. Besides, the factory sold the machinery in 2015 as it became obsolete.

The Multimode Group's concern is currently operating a CNG filling station in their factory premises. Besides, it is selling stone, imported from Bhutan and India.

At the same time, the company has leased the vacant factory land to CG Foods (Bangladesh) Ltd.

The company is incurring losses in the stone and CNG business. In the last financial year, it had a loss of Tk53 lakh in this business. However, the company made a profit of Tk53 lakh at the end of the year from land rental income. And for that year, it recommended a 5% stock dividend for the shareholders. Recently, the BSEC has approved the dividends.

The market regulator also asked the company to increase its paid-up capital to Tk30 crore, from exiting Tk4.90 crore.

In the first half of fiscal 2021-22, the company had a loss of Tk0.37 crore from the CNG filling and stone business. But it earned Tk0.63 crore from land rent, which helped the company post a profit of Tk0.52 crore.

Its shares traded at Tk278.8 each on Sunday on the Dhaka Stock Exchange, which was 59% higher than a year ago.