Epic Garments Manufacturing Company Limited – a sister concern of the Hong Kong-based Epic Group – is set to join the board of the listed Envoy Textile Limited.
Epic, which manufactures ready-made garment products in Bangladesh through a joint venture with the Sheltech Group, owns a 2.65% stake in Envoy Textile as an institutional shareholder.
In a price-sensitive information regarding its upcoming annual general meeting (AGM), Envoy announced that the board recommended Sunil Daulatram Daryanani, nominated from Epic Garments, as a candidate for election to the position of director, subject to the availability of a vacancy.
According to the price-sensitive information, the application for candidacy submitted under Article 127.1 of the company’s articles of association was approved with conditions.
Envoy Textile states that the AGM will be held on 28 March, where, with the permission of the general shareholders, three directors will be elected, audited financials for 2022-23 will be approved, dividends will be declared, and other issues will be addressed.
According to information sent to its shareholders, for decades, Epic Group has been a cornerstone of the apparel industry, evolving from a textile trading house to a leader in sourcing quality fabrics.
Since 2005, it has operated as a state-of-the-art manufacturing company with facilities spanning Bangladesh, Jordan, Vietnam, and Ethiopia.
According to the website of the Bangladesh Garment Manufacturers and Exporters Association, Epic Garment Manufacturing was established in 2008, and its factory is located at Adamjee Export Processing Zone.
The principal export products of Epic Garments are bottom pants, denim jeans, and bottom shorts.
Kutubuddin Ahmed, managing director of Epic Garments, also serves as the chairman of Envoy Textile.
In the first half of fiscal 2023-24, its revenue grew to Tk690.95 crore, and it reported a profit of Tk24.27 crore. In the fiscal 2022-23, it reported a revenue of Tk1,109.49 crore, which is down by 10.54% from the previous fiscal year.
While its profit stood at Tk32.73 crore, significantly down from Tk50.13 crore in the fiscal 2021-22. It has recommended a 15% cash dividend for its shareholders, which will be approved at the upcoming AGM by shareholders.
Previously, a legal battle over supremacy at Envoy Textiles Limited, which is the world’s very first LEED-certified platinum denim mill, began in 2022 after the separation of Kutubuddin Ahmed from Envoy Textiles’ parent company, Envoy Group.
The legal saga commenced in June 2022 when Abdus Salam Murshedy contested a potential cessation of his position as managing director of Envoy Textile.
Subsequently, the High Court appointed Tanvir Ahmed as the company’s new managing director and Shehrin Salam Oishee as deputy managing director, subject to obtaining shareholders’ approval by conducting an EGM.
Shareholders of Envoy Textiles approved the appointment of a managing director for the company at the EGM held at the Gulshan Shooting Club on 2 March.
On 25 March, Envoy Textile’s shares closed at Tk36.70 each at the Dhaka Stock Exchange.
