KDS Accessories, a unit of Chittagong-based KDS Group, aims to earn an additional Tk 100 crore in sales revenue a year, as it started commercial production at its new packaging unit in Gazipur last week. The company will reach the revenue target, if the new packaging line can utilise its full capacity and sell the produces, the company said in a statement on the website of Dhaka Stock Exchange yesterday. The company’s revenue in 2015 was Tk 169.08 crore, according to its latest annual report. Additional production capacity at the new packaging unit, which is third for the company, will be increased by 45,000 pieces of cartons a day, KDS Accessories said. The previous two units are also engaged in manufacturing corrugated boxes, cartons and other packaging materials. These two units can produce 2.24 crore pieces of cartons a year. The third unit has been set up with investments of Tk 28 crore, of which Tk 15 crore came from initial public offering and the rest from equity and bank loans. The total IPO size was, however, Tk 24 crore, of which Tk 7 crore was spent on loan repayment and Tk 2 crore for IPO expenses. KDS Accessories expanded its packaging unit considering the growing demand from garment makers as global retailers such as H&M and Wal-Mart increased purchases from Bangladesh. It was listed on the stockmarket last year. Each share of the company traded between Tk 73.5 and Tk 76.6, before closing at Tk 74.3 on the DSE yesterday. Its net profit rose to Tk 12.5 crore in 2015, from Tk 8.86 crore a year ago.Sponsors hold a 76.92 percent stake in KDS Accessories, institutions 9.34 percent and general investors the remaining 13.74 percent. KDS Group started its operations in 1983 and has been engaged in garment industry, accessories, steel, logistics, bank, insurance, IT and shipping.
