Berger to create second metal container plant
Jenson & Nicholson (Bangladesh), a wholly owned subsidiary of Berger Paints Bangladesh, plans to get Tk 91.48 crore to create its second unit to produce metal containers at Savar to meet the growing demand.
The project is likely to be completed in 2022 and the company disclosed the facts yesterday in a post on the Dhaka Stock Exchange (DSE) website.
The company has been generating tin-containers and prints on tin sheets since 1995.
For the last few years, it has been providing metal container to Nestle, Aarong plus some other lubricants companies along with Berger Paints Bangladesh from its Chattogram plant.
A large level of the containers made by Jenson & Nicholson is consumed by the Savar plant of Berger, said Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh.
"So the decision to determine another container unit was taken up to cater for its growing demand aswell concerning ensure its smooth supply."
The subsidiary includes a large amount of retained earnings, where the necessary fund to create the plant should come from, he added. The multinational paint maker announced its second quarter earnings. Its consolidated earnings per share (EPS) stood at Tk 14.26 for July-September quarter, up from Tk 9.49 in the same period the prior year.
"Actually, our company absorbed the primary impact of the Covid-19 outbreak in the first quarter (April-June) when the government-announced general holiday was effective," said Sadique.
In the first quarter, the business's EPS hit Tk 2.32, down from Tk 11.12 through the same period the previous year.
"Our company started recovering in the second quarter with the resumption of construction works," he added.
Berger Paints Bangladesh has a paid-up capital of Tk 46 crore and includes a reserve of Tk 900 crore, according to the DSE data.
Its stock rose 2.82 % to Tk 1,360 yesterday compared to the previous day.
Berger Paints Bangladesh has two other subsidiaries named Berger Becker Bangladesh and Berger Fosroc and it holds 49 % stakes in the first company and 50 % in the second.
