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Olympic Industries is set to purchase an additional 702 decimals of land adjacent to its factories in the Kanchpur and Gazipur areas, at a cost of Tk 212 million, to facilitate its future expansion plans.
The company's board of directors approved the decision at a meeting held on Thursday, according to the company's price-sensitive information.
This latest acquisition follows the purchase of five pieces of land totalling 504 decimals, worth Tk 222.5 million, last month.
The country's largest branded biscuit manufacturer had also acquired six pieces of land in the Kanchpur and Narayanganj areas for Tk 170 million three months ago.
Olympic Industries is in an enviable financial position, with cash reserves of Tk 10 billion as of March this year. It has been leveraging this strength to further consolidate its market position.
"The land acquisition is part of a larger strategic investment plan for future business expansion," Company Secretary Mintu Kumar Das said recently.
The company is investing in land to support the development of new product categories such as chanachur, noodles, chocolates, cakes, and biscuits.
"Since the demand for our branded products is growing, we are planning on expanding our production lines and introducing more food products in near future," he added.
The company will cover all registration costs, including value added tax and other government charges with its own funds, said the company secretary.
Apart from land purchase, Olympic Industries has spent money on building storage capacity and to import machinery. Over the last six years, it has invested around Tk 4 billion to facilitate expansion and reach a wider market.
Due to consistent investment, its total assets reached Tk 15.98 billion as of March this year from Tk 10.98 billion in FY19.
Recently, it decided to purchase and import brand-new capital machinery for a multi-functional chocolate plant along with standard accessories worth Tk 136.64 million with production capacity of 3,300 tonnes per year.
In August last year, Olympic Industries also imported new capital machinery for a snack food manufacturing plant, especially for making chanachur as demand grows.
Financial performance
The biscuit manufacturer is showing consistent financial performance and it is considered one of the best performing blue-chip stocks.
Its nine months' revenue grew more than 10 per cent year-on-year to Tk 21.43 billion through March this year while profit rose 1.27 per cent to Tk 1.59 billion.
Diversification business strategy enabled it to achieve record revenue of Tk 25.92 billion in FY24, almost doubled over the past six year from FY19. Its annual profit also grew 18 per cent to Tk 1.83 billion in FY24.
Olympic Industries has diversified its product line. It launched biscuit and confectionery items in 1996 and entered the ball pen industry in 2008.
The popular biscuit brands such as Energy Plus and Tip biscuits, maintain a leadership position in the biscuit industry by producing the best quality products such as biscuits, candy and other confectionery items.
Currently, the foreign investors hold 34.21 per cent stake in the company, the highest among listed firms as of last month. Its stock closed at Tk 149.7 on Thursday.
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