Bengal Windsor Thermoplastics, a 100 per cent export oriented hangar manufacturer, plans to utilize its IPO proceeds worth Tk 400 million, to be floated, to acquire higher valued added molds, expand infrastructural capacity and partly pay down some outstanding debt.
The company, which obtained the securities regulator’s approval for initial public offering (IPO) on October 10, is going to offer 16,000,000 shares at Tk 25 per share to the general public.
The utilization plan was taken as part of the company’s expansion strategy and to increase profitability for all shareholders.
The company’s EPS for FY 2011 was Tk 3.62 per share. It has consistently paid dividends to all shareholders, with the dividend rate being 10 per cent in FY 2010-11 and expected to be higher in FY 2011-12, said a press release.
“The company has a bright future as it is in a high growth industrial segment and is located in labour unrest free Dhaka EPZ”, its dynamic US educated Managing Director Humayun Kabir Bablu said.
“We believe that our country can have international class accessories companies, which will drive our export growth both in value and value addition”, he added.
Bengal Windsor Thermoplastics, one of the largest garments accessories manufacturers and exporters in Bangladesh, has also already set up a subsidiary–Bengal Petrochem and Synthetic Textiles Ltd– at the Dhaka EPZ for the purpose of backward integration.
The company’s sponsors are the renowned Bengal Group of Industries, which has emerged as a leader of garments accessories, plastics furniture and household items, snack foods and media segments in the country.
Garments accessories is one of the fastest growing industrial segments in Bangladesh, with almost 15 per cent of the total USD 19 billion export in FY 2012, being accessories, which are supplied by in-house factories, stand alone accessories manufacturers and imports.
Garments accessories include corrugated cartons, poly bags, buttons, zippers, labels, which are an integral part of the garment product. Several leading industrial groups, including KDS, DAF, RFL and Partex have invested in the sector, as industry analysts mention that the capacity can be increased almost 3 times before saturation is reached.
As a result, the growth of the garments accessories businesses in Bangladesh will reduce dependence on import, increase local valued addition in garments export and lower the drain on the central bank’s reserves.
Bangladesh has already proved its cost leadership in the international market of ready-made garments (RMG) industry. China is struggling with its higher labour cost and many foreign investors are coming to Bangladesh to take the labour cost advantage of the industry.
Furthermore, the energy cost is minimal compare to regional competitors. Considering the total cost structure of international RMG sector, coutnry’s RMG industry has been enjoying a positive outlook for the last couple of decades and expects continuous and steady growth rate in the near future.
Bengal Windsor Thermoplastics has ten lines of hanger manufacturing machines serving its customers who are the leading garments exporters of the country. These Taiwan made machines have been installed in 2004 and 2011 with an average production capacity of 16,660 pieces per hour totaling 400,000 pieces per day.
The Company, located in Savar EPZ, doubled its capacity in the last year to increase market share due the increased demand for its products from Bangladesh’s numerous garment’s exporters.
The major part of its finished products goes to the domestic RMG manufacturers for export. These consumers supply the RMG to different international outlets and the success of BWTL obviously depend on the RMG sector outlook.
Source: bdipo Correspondence, January 14, 2013 and The Financial Express, December 04 2012