Shinepukur Ceramics to raise Tk80cr in bonds

Shinepukur Ceramics, a fully export-oriented bone china and porcelain tableware manufacturing company, has decided to borrow Tk 80 crore from its parent company Beximco through issuing convertible bond to invest in setting up a new bone china unit.

Issuing of the convertible bond is however subject to the approval of the company's shareholders as well as Securities and Exchange Commission.

Bond is a debt instrument, while convertible bond means that it is convertible into a company's common stock or share.

The new bone china manufacturing unit, the completion of which is due in October next, aims at increasing production capacity and sales turnover, the company high officials said.

On expansion, the production capacity will be raised by 150 percent to 25,000 pieces a day from the existing manufacture of 10,000 pieces.

An additional Tk 110 crore exports and Tk 20 crore net profit is also expected. The present per annum turnover is around Tk 155 crore.

“We are happy to announce this expansion plan,” said Shinepukur Ceramics Chairman Nazmul Hassan, hopping that Bangladesh's image would increase abroad as more and more world renowned manufacturers are keen to tie-up with Shinepukur Ceramics for tableware production.

“Shinepukur, the country's single largest exporter of ceramic tableware, contributes around 50 percent of the total export of the item from Bangladesh,” Hassan added.

For setting up the new unit at the Beximco Industrial Park in Gazipur, Shinepukur signed an agreement with a German company on Sunday.

The company, equipped with the state-of-the-art machineries, has two independent units producing high quality porcelain and bone china tableware. The porcelain unit has a capacity of manufacturing 65,000 pieces per day.

Since its commercial production at the end of 1999, Shinepukur has successfully developed a substantial export market for the top-of-the-line bone china and porcelain tableware and the customer portfolio now includes world-class tableware companies in the UK, USA, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia and UAE.