Pharma Aids to set up new plant to produce more ampoules
Currently, Pharma Aids has extended its production line to another factory on a rental basis. But this solution is insufficient to meet the increased demand for glass ampoules for liquid medicine
Pharma Aids, a pioneer in glass ampoule manufacturing for the pharmaceutical industry in Bangladesh, plans to set up a new facility on the outskirts of Dhaka to increase its production capacity.
To facilitate this, the company plans to purchase 103 decimals of land adjacent to the Nabinagar-Chandra Highway in Gazipur, with an investment of Tk11.38 crore, excluding registration and related costs, according to a disclosure on Sunday.
"There is a high market demand for these ampoules. However, the existing factory cannot increase production due to space constraints, making it impossible to establish a new plant at the current site," a top official of the company said, requesting anonymity.
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Currently, Pharma Aids has extended its production line to another factory on a rental basis. But this solution is insufficient to meet the increased demand for glass ampoules for liquid medicine. It has a plan to shift the existing factory to the new location.
The state-of-the-art ampoule manufacturing plant, which will comply with Good Manufacturing Practice (GMP) and ISO standards, is expected to help diversify its businesses.
However, the cost of constructing the new plant has not been disclosed. The company says the new plant will be set up through self-financing, and loans from suitable sources, if necessary.
An Extraordinary General Meeting (EGM) has been called for 26 June to seek shareholder approval on this matter. The record date has been set for 13 June.
Earlier, in December 2022, the company replaced its old annealing electrical oven with a new one, aiming to reduce wastage and improve the quality of ampoules.
Pharma Aids began commercial operations in 1984 and was listed on the Dhaka Stock Exchange three years later.
On Sunday, Pharma Aids' shares dropped by 1.01% to Tk676.50 each on the Dhaka Stock Exchange.
From July-March period of FY24, the company's revenues stood at Tk13.15 crore, down from Tk23.10 crore during the same period in the previous fiscal year.
Despite the decline in revenues, it posted a net profit of Tk5.73 lakh in the period, up from Tk1.67 lakh in FY23's July-March period.
In the period, its earnings per share (EPS) stood at Tk18.37, and its net asset value (NAV) per share was Tk108.64.
As of April 30, 2024, sponsors and directors held 23.58% shares in the company, institutional investors held 22.68%, and general investors owned 53.74% of the shares.
