Rahim Textile Mills has taken an expansion plan in a bid to enhance its production capacity and improve product quality.The listed company will spend Tk 57.53 crore to implement the new BMRE (balancing, modernisation, rehabilitation and expansion) scheme.Under the plan, the company will purchase land, construct buildings, take utility connections, install new machinery and equipment and do other civil works.The funds will be generated from both internal sources and loans from banks and other sources, according to a web posting of Dhaka bourse yesterday. “The BMRE will improve product quality and enhance the company’s production capacity from 265.2 lakh yards to 499.2 lakh yards a year,” according to the post.After the completion of the BMRE scheme, which was approved at a board meeting recently, the company will sell its products at higher prices and retain a better margin.The board also decided to discontinue the previous BMRE plan, which was approved in November 2010.So far, a sum of Tk 16.08 crore out of Tk 35 crore has been utilised for the previous plan.The company also decided to get rid of some redundant plants and machinery with a written-down value of Tk 59.38 lakh.Rahim Textile was listed on the stockmarket in 1988. Its net profit in 2015 was Tk 2.35 crore with basic earnings-per share of Tk 6.79.The expansion news had a positive impact on the company’s share trading as stock prices rose 2.75 percent yesterday. Each Rahim Textile share traded between Tk 218 and Tk 225, before closing at 219.9 on the premier bourse.Sponsors have a 76.76 percent stake in Rahim Textile, institutional investors 2.69 percent and the public 20.55 percent, according to the DSE.
