Square Textiles plans to step up its yarn production capacity with an investment of Tk 114cr

Square Textiles, a concern of Square Group having over 12 years of experience in yarn spinning. The industry is one of the largest producers of knitting and weaving yarns in Bangladesh. Today it has one of the most sophisticated vertically integrated set-ups by which they are producing 21,600 tonnes of yarn a year at its three units. Square Textiles is planning to increase its yarn production capacity with an estimated investment of Tk 113.87 crore.

Square Textiles, after the completion of the new project next year, another 4,235 tonnes will be produced. They are expecting Tk 119 crore in turnover from the additional capacity, according to a posting on the Dhaka Stock Exchange website yesterday.

The company also said that the expected profit contribution will be around 11 percent on the turnover.

The disclosure came after its board approved the investment plan at a meeting on Tuesday.

At the meeting, Square Textiles, which was listed on the stockmarket in 2002, also recommended 20 percent cash and 10 percent stock dividends for 2014.

The company’s net profit, however, declined 35 percent year-on-year to Tk 54.11 crore in 2014. Its earnings per share stood at Tk 3.66 at the end of last year. On the premier bourse yesterday, each Square Textiles share traded between Tk 82 and Tk 86.1 before closing at Tk 83.9.

Square beside conventional cotton yarn concentrates on PIMA cotton yarn (Supima Certified), Organic cotton yarn (Control Union Certified), CMIA (Cotton made in Africa), Core spun, Slub Compact yarn and Bamboo yarn. Square is working towards establishing themselves as a one stop source for the Global Knit Apparel market.