Hamid Fabrics to invest Tk70 cr to set up yarn dyeing unit

Hamid Fabrics, a concern of Mahin Group, one of the most reliable players in Bangladesh textile industry, its core activity is to manufacture and export textile fabrics. To meet the growing demand the company plans to set up a yarn dyeing unit with a capacity of producing 15 tonnes of dye a day. The expansion project will involve investment to the tune of Tk70 crore.

The company will buy 50 Air Jet loom machine to set up the unit that will start production in the third quarter of 2015.

The company raised Tk 105 crore from public in August, and after raising capacity it will spend the rest of the fund to pay bank loans, said Abdullah Al-Mahmud Mahin, managing director of Mahin Group.

Using the fixed price method, the textile company floated three crore ordinary shares of Tk 10 each at an offer price of Tk 35, including Tk 25 as premium.

The company topped the turnover chart yesterday with 81.86 lakh shares worth Tk 49.96 crore changing hands. The share price of Hamid gained 60.28 percent from its offer price to close at Tk 56.1 on trading debut yesterday.

The company produces 30 million yards of finished fabrics a year which is supplied to American clothing brands such as Van Heusen and Abercrombie and Fitch.

European brands such as H&M, Marks&Spencer, Timberland, Jack & Jones, s.Oliver, Esprit, Zara, C&A and many more also buy fabrics from the company.

Japanese buyers have also been added to the company’s portfolio recently.

The annual turnover of the company in 2013-14 stood at Tk 21.99 crore which has its production facility at Shilmandi, Narshingdi.

The factory, which is running at an overall utilisation rate of around 78 percent, has a unit for weaving and another for dyeing and finishing.

Led by its founder, Mr. Abdullah Al Mahmud Mahin, the Group continues to march ahead and contribute to the country’s economic sustainability, with our exports and dynamic business practices.