Olympic Industries investing Tk3cr in land

Olympic Industries, the market leader in biscuits, will spend about Tk3.04 crore on land purchase, including expenditures for registration.

It would buy 86 decimals of land at Lolati in Narayanganj, which is adjacent to its biscuit and confectionery units.

In June 2021, the company had earlier bought 48 decimals of land at Kutubpur for Tk7.20 crore and other costs of Tk75.60 lakh, which is attached to its noodles, snacks, corrugated carton, and battery factories.

In the last two years, the industry leader has invested around Tk44 crore in business expansion, building construction, and other works.

According to a Dhaka Stock Exchange (DSE) filing, the cost of land is Tk2.75 crore and Tk28.89 lakh for the registration charge and other miscellaneous expenses, including fees.

TBS tried to get a comment on the reasons behind the land purchase, but Company Secretary Nazim Uddin did not answer his mobile phone.

According to sources, Olympic Industries has relocated its Madanpur production line to Lolati in an effort to control costs and improve product quality.

In this line, the company is now constructing a new five-storey building, which is supposed to commence by early 2023.

At present, the company has three production lines in Madanpur, Lolati, and Kutubpur in Narayanganj.

In Madanpur and Lolati, there are two biscuit, confectionery, and bakery units, and in Kutubpur, there are noodles, snacks, corrugated carton, and battery units.

In the first half of the current fiscal year, its revenue has increased to Tk1,367.35 crore, an increase from Tk1,035.18 crore in the same period of the previous fiscal year.

And its net profit after tax has increased to Tk105.11 crore, up from Tk72.12 crore a year ago.