Envoy Textiles to set up 'Waste Fabric Recycling Plant'
The denim manufacturer posts record profit of Tk 600m
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Envoy Textiles, one of the leading denim manufacturers and exporters, has announced plans to set up a 'Waste Fabric Recycling Plant' on its factory premises in Bhaluka, Mymensingh, to boost production capacity and meet growing demand.
The company has estimated the total project cost at Tk 237.04 million, with 70 per cent funded by debt and 30 per cent by equity. The project is expected to begin operations by the end of June next.
The board of the company approved the plan at its meeting held on Thursday, it said in a disclosure.
"This plant will process both local and in-house pre-industrial and post-consumer waste fabrics, converting them into high-quality recycled fiber," said the company.
Once operational, the recycling plant will enable Envoy Textiles to replace externally sourced waste cotton with recycled fiber produced in-house.
In addition to enhancing operational profitability, this project will meet the growing demand from buyers for environmentally responsible production practice.
"This strategic initiative not only strengthens our eco-friendly manufacturing credentials, but also positions us favourably in terms of export pricing, giving us a competitive edge," said the company.
The company claimed that the plant is designed to process 12 tonnes of waste fabrics per day, with a 98 per cent recovery rate of input material into recycled fiber.
"Under the favourable market conditions, the project is expected to generate approximately Tk 80 million in profit annually, contributing positively to the company's bottom-line growth," said the company.
On Thursday, the company's stock price fell 2.66 per cent to Tk 47.6. However, its stock price had surged 25 per cent in the past one month.
ANNUAL BUSINESS PERFORMANCE
Envoy Textiles has posted a notable 83 per cent growth in profit in the financial year ended in June 2024, compared to the year before, overcoming the lingering macro-economic challenges.
The denim producer logged a profit of Tk 600.39 million in FY24, up from Tk 327.28 million the previous year, according to a disclosure published on Thursday.
Accordingly, earnings per share jumped to Tk 3.58 in FY24, up from Tk 1.95 for the year before.
Based on the profit growth, the denim exporter declared a 20 per cent cash dividend for its shareholders, the highest since its listing on the stock market in 2012.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 51.93 per share as of June this year, up from Tk 38.57 in June last year, due to higher profit.
The company will hold its annual general meeting (AGM) on November 2 and the record date for entitlement of dividend is on September 30.
A 100 per cent export-oriented denim manufacturing company, Envoy Textiles started its commercial operation in 2008 and became listed in 2012.
Envoy Textiles is also the first denim project in Bangladesh with rope-dye technology and currently considered as one of the largest denim manufacturers of Bangladesh.
The denim manufacturing facility has secured the recognition of being the world's first LEED-certified platinum factory. The Leadership in Environmental and Energy in Design (LEED) certification is given by the United States Green Building Council.