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BAT Bangladesh to Invest Tk28 Cr in Capacity Expansion
British American Tobacco (BAT) Bangladesh, a leading multinational cigarette manufacturer, has announced plans to invest Tk28.38 crore to expand its production capacity in response to the increasing demand for its products.
The investment, disclosed on 24 December, will be funded through a combination of internal resources and bank loans, in line with the company’s cash flow strategy.
BAT Bangladesh operates manufacturing plants in Dhaka and Savar, as well as a green leaf threshing facility in Kushtia and a green leaf re-drying plant in Manikganj. The company’s latest quarterly financial report revealed that it produced 50,305 million cigarette sticks and 4.16 million kilograms of tobacco leaf during the first nine months of this year.
In its 2023 annual report, BAT Bangladesh emphasized its ongoing investments in production capacity expansion to meet both local and international demand. The company began exporting finished goods in 2018, marking a key milestone that has unlocked new growth opportunities.
Since 2021, BAT Bangladesh has invested Tk1,333 crore in its Savar factory to tap into emerging export opportunities, particularly for cigarettes from Bangladesh. In the January-September period, the company earned Tk155.47 crore from cigarette exports and Tk208 crore from tobacco leaf exports.
The company’s annual report highlights Bangladesh's strategic position to capitalize on significant export opportunities in the tobacco industry, including in leaf, cut rag, and finished cigarettes. This advantage stems from the country's cost competitiveness and its strong commitment to producing high-quality products.
Building on the success of the ready-made garment sector, BAT Bangladesh sees great potential for the tobacco industry to develop a strong global export presence.
BAT Bangladesh reported Tk30,843 crore in revenue from cigarette sales during the first nine months of 2024. After taxes, its net revenue stood at Tk6,937 crore, with a net profit of Tk1,322 crore, slightly down from Tk1,355 crore in the same period last year.
For the July-September quarter, the company earned Tk8,503 crore in revenue, with net revenue of Tk2,051 crore. However, its net profit saw a slight decline to Tk397 crore for the quarter.
In addition, BAT Bangladesh has declared a 150% cash dividend as an interim measure to its shareholders. Its shares closed 0.65% lower at Tk350.50 on Tuesday on the Dhaka Stock Exchange.