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Multinational cigarette manufacturer British American Tobacco Bangladesh decided to install laser printers in its Dhaka and Savar factories at the expense of Tk 249 million to improve operating efficiency.
It made the disclosure on the Dhaka Stock Exchange (DSE) on Tuesday.
An official of the company, wishing not to be named, said that after every national budget, the company increases product prices aligned with higher tariffs imposed. "But the company uses old packaging until newly-printed packets become available, drawing criticism over price mismatch [on packets and selling price].
"So, we have decided to install laser printers so that we can get the new packets early. This investment will increase our operating efficiency and regulatory conformity. "
The government makes cigarettes costlier in every budget by imposing higher tariffs in attempts to discourage smoking.
The company said the board of directors in its meeting on February 24 approved the investment of Tk 249 million for purchasing & installing laser printers in 36 SMD packing lines in both Dhaka & Savar factories.
The investment will be funded from internal sources and banks on the basis of the cash flow of the company.
Meanwhile, the share price of BATBC on the Dhaka bourse rose to Tk 346.70 per share on Tuesday after the declaration.
BATBC is one of the strongest listed companies in Bangladesh.
In 2019, its profit was Tk 9.2 billion, which gradually increased to Tk 17.9 billion in 2022. The next year its income remained stagnant, showing no growth year-on-year. Then the company's profit dropped nearly 2.2 percent year-on-year in 2024 to Tk 17.51 billion.
However, BATBC increased its cash dividend to 300 per cent to shareholders for 2024, up from 100 per cent for the year before.