During the shutdown in the wake of the pandemic, activities in the construction sector came to a grinding halt
A total of 16 companies are set to invest Tk2,576 crore amidst the corona crisis with a view to keeping their business afloat.
Of these companies, BSRM Steels Limited has recently announced a mega investment of Tk700 crore to set up a new plant.
"We feel we need to increase our production capacity to meet the growing demand of steel products in the country. We will arrange the investment fund from bank loans and our own resources," BSRM Deputy Managing Director Tapan Sengupta told The Business Standard.
He said demand for construction materials is projected to increase once the situation normalises.
During the shutdown in the wake of the pandemic, activities in the construction sector came to a grinding halt. BSRM's earnings decreased by 57.04% in Fiscal Year 2019-20 compared to a year ago.
Sources said that as of last Sunday, a Tk2,567 crore investment had been announced by 16 listed companies.
Most of these companies that are set to invest are in the engineering sector. Eight companies in this sector have declared a total investment of Tk1,220 crore.
Of the remaining companies, three are in the pharmaceutical and chemical sectors with an investment announcement of Tk299.2 crore.
United Power said it would inject Tk535 crore in the energy and power sector.
Two textile companies plan to invest Tk413.01 crore, while Berger Paint has floated a new investment proposal of Tk99 crore.
United Power Generation and Distribution Company is acquiring 99% of the two plants of United Anwara Power Limited and United Jamalpur Power Limited.
The Company Secretary, Badrul H Khan, told TBS a Tk535 crore will be invested in the acquisition of the two plants.
"Our business has become viable during the pandemic, and the income is expected to increase further upon acquisition of the two plants."
Runner Automobiles, a company that manufactures and markets motorbikes, will now produce three-wheelers.
The company will build a factory in Bhaluka, Mymensingh, with technical assistance from Bajaj Auto Limited of India, to make the first three-wheeler in Bangladesh.
Runner has announced an investment of Tk300 crore in the manufacture and marketing of three-wheelers.
Multinational company Berger Paints will spend Tk91.48 crore to set up its second unit at Savar, while its sister concern Berger Fosroc will invest Tk7.60 crore.
Marico Bangladesh, another multinational company, will put Tk227 crore into Special Economic Zones to grow production capacity.
Bangladesh Building Systems Limited (BBS) will make an investment of Tk24 crore in Balancing, Modernization, Rehabilitation and Expansion (BMRE) of the plant, to purchase machinery and land for business expansion.
Of this, Tk16 crore will be spent on BMRE and Tk7.75 crore will be expended on machineries and land purchase.
"We need to spend a lot to modernize the plant, to be able to meet the demand of our foreign clients," BBS Company Secretary, Mohammad Mohsin told TBS.
Machinery will also be purchased to expand the business, which will boost the company's revenues, he added.
Regent Textiles has acquired 99% ownership of Legacy Fashion Limited against Tk83.01 crore. The company has announced an additional investment of Tk80 crore in the export-oriented readymade garment business.
KDCL will pump Tk14.45 crore into finishing line automation of corrugated packaging, purchase of machines and construction of buildings.
Olympic Industries will inject Tk4.93 crore into the import of PET tray- making machines and Tk4.08 crore into land purchase.
SS Steel Limited has acquired 99% ownership of Saleh Steel Industries Limited in Nasirabad, Chittagong, against Tk24.75 crore. The company will invest another Tk134 crore to facilitate smooth operation of the company.
Salvo Chemical Industry, which produces sulfuric acid, sulfate, battery grade water, detergent powder and other products, will set up a progressive corn starch plant.
A company official said Tk70 crore will be invested to set up this plant.
Square Pharma will invest Tk250 crore in capital machinery and land purchase; Tk17.50 crore on BBS cables machinery, while Square Textile will pump Tk30 crore in BMRE.
Nahi Aluminum will invest Tk4.50 crore in land purchase and machinery.
Kohinoor Chemicals will spend Tk2.20 crore on machinery, while Oimex Electrode will invest Tk1.75 crore.