WASHINGTON: KDS Accessories will import capital machinery worth $1.6 million (about Tk 12.50 crore) to set up a new packaging unit as part of its business expansion plan.
The board of directors of the company took the decision at a meeting while approving the expansion project, it said in a posting on the Dhaka Stock Exchange’s website yesterday. KDS Accessories, a unit of Chittagong-based KDS Group, raised Tk 24 crore through initial public offering a few months ago.
The new project, which will be the company’s third packaging unit in Gazipur, will have the capacity to produce 93.6 lakh pieces of corrugated cartons per year.
Its two existing units, which are engaged in manufacturing different types of corrugated boxes along with other packaging materials, can produce 2.24 crore pieces a year.
KDS is expanding its packaging unit considering the growing market demand from garment makers. Of the Tk 28 crore estimated cost for the expansion project, Tk 15 crore will come from IPO proceeds and the rest from equity and bank loans.
Established in 1991, KDS Accessories has made significant progress over the years and has become a leading manufacturer of packaging items. The company also exports its products. On the DSE yesterday, each KDS Accessories share traded between Tk 87.20 and Tk 91.50 before closing at Tk 89.
KDS Group started its operations in 1983 and has concerns in various sectors, including garment, accessories, steel, logistics, bank, insurance, IT and shipping. The company, which counts itself among the biggest business conglomerates in the country, employs more than 20,000 people.
