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Sonali Paper and Board Mills has decided to add a new product line -- Aluminum foil paper box unit -- by installing a new machine in its factory premises in Rupganj upazila of Naraynganj.
The new machine will be imported from China and Sonali Paper has signed a Memorandum of Understanding (MoU) with Chinese firm Zhangjiagang Fineness Aluminium Foil Company to set up an aluminum foil paper unit.
Mohammad Younus, managing director of Younus Group and chairman of Sonali Paper, and Md Zahidul Alam, CEO of IBN Corporation, signed the deal on behalf of Sonali Paper and Zhangjiagang Fineness Aluminium respectively in Dhaka on Sunday.
An aluminium foil paper machine, which is fully automated, can produce an average of 100,000 pieces of aluminium foil container boxes per day, the company said in a filing with the Dhaka Stock Exchange (DSE) on Monday.
The company strongly believes on utilisation of full capacity of the new machine, it will have a significant impact on its competitive position in the market in addition to increasing its revenue.
This will increase the annual sales of Sonali Paper by 25 per cent, Mohammad Younus said in a press statement.
Aluminium foil containers are used in family banquets and the packaging of food-related industries such as airline snack, western-style pastry baking, with the shape and size favoured by the customer.
Meanwhile, industrial aluminium foil jumbo roll is used in electronics, cigarettes and the food packing industry. Aviation food packaging foil of all kinds of colour and design is available, and companies can coat, emboss, and slit according to clients’ demand.
Currently, Sonali Paper mainly produces white and printing papers, simplex papers and duplex papers.
Sonali Paper and Board Mills started its business in 1977 at Rupganj in Narayanganj and the company was listed with the Dhaka bourse in 1985.
Due to its failure to comply with listing criteria, it was sent to the over-the-counter (OTC) market. However, the company came back to the main trading board of the bourses in July last year as it demonstrated a comeback in its business.
Each share of the company closed at Tk 273 on Monday. Its share traded between Tk 273 and 350.90 in the last one year.
Its nine months’ earnings per share (EPS) stood at Tk 2.29 for July 2020-March 2021 as against Tk 2.08 for July 2019-March 2020.
The company disbursed 5.0 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2020.
The company’s paid-up capital is Tk 183.03 million, authorised capital is Tk 500 million and the total number of securities is 18.30 million.
The sponsor-directors own 72.06 stakes in the company while the institutional investors own 5.54 per cent and the general public 22.40 per cent as of April 30, 2021, the DSE data shows.