Saif Powertec Ltd has doubled its production of automotive batteries owing to a growing demand for battery-run easy-bikes and auto-rickshaws in rural areas.
Commencing its business in 2017, the company had an initial battery production of 30,000 units per month. After completing the expansion project, the production capacity reached 60,000 units per month.
Saif Powertec invested Tk116.24 crore for the production expansion. It collected the fund through issuing right shares to the existing shareholders in 2017.
Md Helal Uddin Sikder, the company's battery division head, told The Business Standard, "Our project is over. Now, the full production work is going on."
"We make several types of batteries here. We have started the production step by step. So, there is no set time to start it," he added.
According to the 2018-19 annual report of Saif Powertec, the country's battery market stood at Tk8,000 crore, which is growing year on year.
The report also said the market inflated 3-4 times in the last 10 years, registering a 12-percent growth in the 2018-19 financial year.
A growing demand for automotive batteries, fuelled mostly by the widespread use of battery-run three wheelers in rural and semi-urban areas, has led to booming business of local companies.
Helal Uddin Sikder said, "Now, we are the only company making batteries for three wheelers. But in this sector, most of the batteries are imported from China. The government should tighten battery import policy to boost businesses of the local manufacturing companies."
"Our battery sales have increased rapidly as the pandemic has halted imports from China," he added.
A Saif Powertec official said the company could sell batteries worth Tk100 crore yearly which would increase from next year.
However, a majority portion – 53 percent – of the company's total revenue comes from loading and unloading of containers in Chattogram Container Terminal, Kamalapur and Pangaon Container Terminal.
Among the rest, 24 percent comes from battery sales, 13 percent from importing machineries for the power and construction sector and 8 percent comes from other operations.
In the first three quarters of the last financial year, the company posted earnings per share of Tk1.09, which was 9 percent lower compared to that in the same period the previous year.
F Md Salehin, company secretary of Saif Powertec, said, "In the January-March period, we lost revenue due to decreased international trade in the country for the coronavirus pandemic. But now, the situation has improved."
Saif Powertec was listed with the Dhaka Stock Exchange in 2014 and its paid-up capital is Tk340.82 crore.
Sponsors and directors jointly hold 40.06 percent of the company shares while institutional investors hold 21.03 percent and general investors 38.91 percent.
The closing price of the company's each share was Tk14.50 on Wednesday at the Dhaka Stock Exchange.