Bashundhara Paper Mills’ export revenue drops 30.64% in FY 23-24 amid global raw material and forex crisis

Bashundhara Paper Mills’ export revenue drops 30.64% in FY 23-24 amid global raw material and forex crisis

- Despite the effect and challenges of post pandemic and political instability and economic crisis the product line with the 54% capacity utilization BPML able to produce around 81,869.38 MT finished goods of papers, board & tissue papers

The Pulp and Paper Times

Bashundhara Paper Mills Limited (BPML) has been relentless over more than two decades to offer its diversified products ranging from different types of Paper, Tissue & Hygiene portfolio, thereby it has rightly been entrusted from customer’s fraternity of home and abroad. At present, Bashundhara Paper is the trusted source of volume Paper-needs of both Government level and, while keep general consumers pace of exporting to over 50 different global destinations.

Mr. Ahmed Akbar Sobhan, Chairman, Bashundhara Paper Mills Limited said in the Annual report for 23-24 that Bashundhara Paper Mills Limited has been a leading performer in the paper and printing industry in Bangladesh for many years. The company has a strong market presence and has demonstrated consistent growth in recent years. We maintain our strong track record of financial performance, market leadership, and shareholder returns. The company’s strategic focus on growth and innovation has positioned it well for continued success in the future. The company crossed its third decade this year. Despite the challenging economic landscape, our company continued to demonstrate resilience and robust growth, solidifying our position as a leading player in the paper and printing industry of Bangladesh.

Despite the effect and challenges of post pandemic and political instability and economic crisis the product line with the 54% capacity utilization BPML able to produce around 81,869.38 MT finished goods of papers, board & tissue papers and in the hygiene segment the production was around 2,409.07 MT. In FY 2023-2024, the BPML was able to earn the net revenue amounting to BDT 13,158.96 mn. Although, the volume of production decreased slightly during the year due to shortage of imports of raw materials foreign exchange crisis nationwide economic crisis. As well BPML exported 6,285.33 MT products this year and the export revenue stood at BDT 870.44 mn. Due to the global crisis for raw materials, foreign exchange crisis the export revenue of this company decreased by 30.64% compared to the previous year.

“Considering the global and Bangladesh economic growth, the private investment growing low because of energy shortages and higher production costs during the year with a shortfall in revenue collection, austerity measures, and depleting foreign exchange reserves, public investment growth was also negative,” Md. Mustafizur Rahman FCA, Chief Executive Officer of Bashundhara Paper Mills Limited said in the annual report.

In FY 2023-2024, BPML was able to earn the net revenue by selling paper and paper products amounting to BDT 13,158.96 mn. which was BDT 13,188.22mn. in the FY 2022-2023 which decreased by 0.22% from the previous year through the volume of production decreased slightly during the year. BPML also engaged its expert team to monitor the emergence of new competitions and risk issues. Due to the global crisis for raw materials, foreign exchange the export revenue of this company decreased by 30.64% compared to the previous year. To ensure the availability of products, the company has created multi-optional distribution channels to increase sales revenue. Due to revising the product price considering its quality and the production cost the sales revenue has affected.

“BPML have a combined market capitalization of approximately USD 72.66 mn. We are key players in the paper industry and are recognized for our high-quality products and excellent customer service. Annually, the global market demand for our products amounts to around 8,96,000 MT.” Mr Rahman said.

BPML’s nationwide awareness development program through discussion, meetings and seminar has well driven people towards increased sense of sanitation. As a result, there will be a surge in demand for our hygiene products. Currently we operate at 70-75% of our capacity and generate about 100,000 tons annually. Previously installed brand-new and continued modernization the machinery added more than 30,000 tons yearly. Meanwhile BPML has added many facilities from time to time which will enable it to take the opportunity of supply in the coming days.

BPML has designed a business model for sustainable growth and continues to develop its presence in the markets, particularly in paper, tissue and allied products. In its paper and tissue and allied businesses, the company sees a huge opportunity to develop by leveraging competencies in both mature and emerging markets. Sustainable development is integral to the success of the business and its ability to create value.

BPML has carefully designed its production and business strategy with the option of midterm evaluations on a regular basis. Despite the effect challenge of pandemic, global political instability, raw material shortage and economic crisis the product line of this company was on full swing and able to produce 81,869.38 MT finished goods of paper & tissue papers and in the hygiene segment the production was around 2,409.07 MT during the period under review which was the 55% average of production capacity.

BPML has planned to modernize some machinery for its production, which expects the product quality will increase and have a positive impact on product pricing in the competitive market. The Research and Development Division of the company has also made its full effort to ensure the diversity of its product line with the existing products. The company also emphasizes discovering the new export destinations for its products
 

Web Title: Bashundhara Paper Mills’ export revenue drops 30.64% in FY 23-24 amid global raw material and forex crisis