Walton plans fresh $640m investment
Walton Hi-Tech Industries Ltd is going to make a fresh investment of $640 million, equal to Tk 5,440 crore, to expand facilities to produce and increase export of electrical and electronic goods.
The company has recently submitted its plan to the Bangladesh Economic Zones Authority (Beza), seeking 300 acres of terrain at the Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram.
"Under the expenditure, the company intends to create a second unit of Walton Hi-Tech Industries," explained Walton Group Managing Director Golam Murshed.
"Our goal is to complete the implementation job within two years and start commercial production."
The investment will be produced over a period of eight years and would be comprised, in equal parts, of retained earnings and long-term loans. The group ideas to borrow from domestic and overseas banks.
Murshed said once the Beza gives the authorization, Walton would sit to plan out the amount of products to be created and make an announcement at the stock exchange.
Among them will be kitchen appliances such as for example refrigerator, freezer, air-conditioner, compressor and television alongside cables and automobile components.
Murshed hopes to offer 15,000 jobs directly from the second unit.
Now Walton comes with an over 20,000-good workforce in 22 development bases on 680 acres of factory area in Chandra, Gazipur. Its yearly development potential is 10 million units.
In terms of professional manufacturing of electrical and electronic goods, Walton has truly turned into a giant, gaining a standing on providing competitive prices and ensuring a presence in a lot more than 20 countries.
The Walton managing director hopes the second unit would widen its global footprint.
Walton setup its first manufacturing plant in 2008, and in 2016, it started production one vital element of refrigerators, compressors.
The proposal said all making machinery will be imported from countries, including Japan, China, Italy, Korea, Belgium, Turkey, Austria, Germany and the US.
Its forecast household and export sales earnings in the seventh season following investment is just about Tk 5,690 crore.
With a paid-up capital of Tk 300 crore, Walton has already been in the process of raising Tk 100 crore from the currency markets this year through an initial public offering.
According to its total annual report, its gross annual turnover in FY 2019-20 was Tk 4,100 crore. It had been Tk 5,180 crore in the last fiscal year.
Its earnings per share were Tk 21.34 found in the July-December period found in 2020, up from Tk 20.34 found in the same period of 2019.
Beza Executive Chairman Paban Chowdhury appreciated the initiative, citing it could diversify the country's exports, which Walton had already contributed to, and that Bangladesh needed to promote such steps.
Walton's need for land will be examined, and the Beza will attempt to accommodate them at the industrial city despite a good scarcity of territory there at the moment, he said.
