Khan Brothers turns to local sales amid ongoing export suspension
Khan Brothers PP Woven
Bags Industries, a publicly listed company, has decided to begin direct sales
of its products in the local market, in addition to its current sub-contract
work.
According
to a stock exchange disclosure published yesterday, the company's export
operations have been on hold since 2022, with all revenue generated solely from
sub-contracting.
By
sourcing raw materials locally and selling directly in the domestic market, the
company aims to diversify its income streams and improve operational
performance. Its management expects the move to have a positive impact on
overall business activities.
"Our bond facilities are still halted. That is why we plan to buy raw
materials locally and sell them in the domestic market. However, the company is
trying to resolve the suspension issue," Company Secretary Tapan Kumar
Sarker told The Business Standard.
Today,
the company's shares closed at Tk117.80 each on the Dhaka Stock Exchange.
Khan
Brothers PP Woven Bags Industries, listed on the stock exchange in 2014,
manufactures and exports a range of products, including flexible intermediate
bulk containers (FIBC or jumbo bags), polypropylene (PP) woven bags, sacks, and
woven fabrics.
In
December last year, Beacon Group acquired shares from the previous board of
directors at a negotiated value and nominated two shareholder directors along
with one independent director to the company's management, ensuring a smooth
transition of responsibilities and control.
Beacon
Group's Chief Financial Officer Md Jalal Uddin earlier told TBS that the
acquisition aligned with the group's plan to diversify its portfolio.
In
September the same year, BSB Cambrian Education Group had shown interest in
taking over Khan Brothers' management, though the plan did not materialise.
For
the fiscal year 2023–24, Khan Brothers recommended a 1% cash dividend for its
shareholders. In January-March FY25, its per-share loss stood at Tk0.02,
compared to Tk0.01 in the same period a year earlier. The company's net asset
value per share was Tk11.82 at the end of March 2025.