Bangladesh Steel Industry

[Rezwan12]

12:00 AM, October 19, 2020 / LAST MODIFIED: 03:20 AM, October 19, 2020

BSRM Steel to set up Tk 700cr plant

The MS rod unit will begin production in 2023

Star Business Report

 

BSRM Steel has decided to set up a Tk 700 crore plant to raise annual MS rod production capacity by another 5 lakh tonnes to meet its growing market demand.

The Chattogram-based listed steel maker is expected to start operation of the new production unit by the middle of 2023.

The investment fund would come from bank loans and own sources, according to the data shared by the leading steel maker with the stock investors of Dhaka and Chattogram stock exchanges yesterday.

The paid-up capital of the listed steel maker was Tk 375 crore while its reserve and surplus was Tk 1,044 crore at the end of the fiscal year that ended on June 30 of 2019.

On the other hand, the company's short-term loan was Tk 2,275 crore and long-term loan amounted to Tk 906.79 crore.

At present, BSRM Steel is producing 2 million tonnes of MS billet and 1.6 million tonnes of re-rolling steel per year.

Consumption of steel has been rising for the last few years riding on the increasing gross domestic product (GDP) of the country.

Moreover, the government's development projects have left a positive impact on the nearly Tk 50,000 crore industry, according to market players.

At present, government projects account for 35 per cent to 40 per cent of the total steel consumption in Bangladesh, up from 15 per cent a decade ago.

The country's annual steel production capacity was 8.58 million tonnes in 2018 when total consumption was 7 million tonnes.

Although per capita steel consumption in Bangladesh almost doubled in eight years to over 45 kilogrammes in 2018, the figure was still much lower than the global average of 208 kgs, according to the World Steel Association.

The figure stands at 65 kgs in India, 400 kgs in South Korea and 1,000 kgs in Japan. To meet the spiralling demand, other steel makers are also increasing their production capacity.

GPH Ispat, another listed steel manufacturing company, had already started its new Tk 2,390 crore plant on a trial basis.

The new factory of GPH Ispat has the annual capacity to produce 840,000 tonnes of MS billet and 640,000 tonnes of MS rod and medium section products.

Despite the news of the new investment yesterday, share price of BSRM Steel listed with the DSE since 2009 dropped 0.51 per cent to Tk 39.20.

The steel maker also informed yesterday that its board of directors recommended 15 per cent cash dividend for the year that ended on June 30 of 2020.

The company's earnings per share (EPS) was Tk 1.97 for the current year, down from Tk 4.60 in the previous year.

The company blamed the fall in EPS on the reduced production and slow sales after the Covid-19 outbreak along with various tax issues. 

 

https://www.thedailystar.net/business/news/bsrm-steel-set-tk-700cr-plant-1980573

[Rezwan12]

12:00 AM, November 19, 2020 / LAST MODIFIED: 02:54 PM, November 19, 2020

GPH Ispat starts billet export to China

Staff Correspondent, Ctg

Steel manufacturer GPH Ispat started billet export to China yesterday with the first shipment of 25,000 tonnes worth $10.17 million through bulk cargoes.

"It is the biggest ever shipment of raw materials for the rod by any Bangladeshi company," said Md Alamgir Kabir, chairman of GPH Ispat.

"After fulfilling our country's demand, we are now exporting billets in large volumes."

The government has taken several initiatives to give a boost to the sector that can ensure easy access of the entrepreneurs in the global market, Industries Minister Nurul Majid Mahmud Humayun said at the virtual inauguration ceremony as the chief guest.

The minister also urged the entrepreneurs of the steel industry to make an effective contribution to the national economy by increasing the production of MS Billet and its export to the world market.

The government is trying to give an incentive to the steel entrepreneurs to encourage steel and billet exports, Commerce Minister Tipu Munshi said.

The steel-maker's disclosure came a month after it expanded its annual billet production capacity from 2.1 lakh tonnes in 2018 to more than 10 lakh tonnes this year.

The company also increased its rod production capacity from 1.50 lakh tonnes in 2018 to 7.60 lakh tonnes in this year.

Having started its journey in 2006, GPH began commercial production in August 2008 with an annual capacity to produce 84,000 tonnes of billet and 120,000 tonnes of rod.

Currently, 35 factories of around 400 mills of the sector make billet by importing scrap and scrap ships.

Bangladesh Trade and Tariff Commission Chairman Munshi Shahabuddin Ahmed, Chattogram Port Authority Chairman Rear Admiral SM Abul Kalam Azad and Chattogram Chamber of Commerce and Industry President Mahbubul Alam were also present.

 

https://www.thedailystar.net/business/news/gph-ispat-starts-billet-export-china-1997349

[Joel Ahmed]

https://bonikbarta.net/home/news_description/272223/শীর্ষ-পাঁচ-ইস্পাত-উৎপাদক-প্রতিষ্ঠান-

শীর্ষ পাঁচ ইস্পাত উৎপাদক প্রতিষ্ঠান

মেহেদী হাসান রাহাত

আগস্ট ২২, ২০২১

নির্মাণ খাতের অব্যাহত প্রবৃদ্ধির ধারাবাহিকতায় গত দুই দশকে দেশে নির্মাণসামগ্রীর বাজারও সম্প্রসারিত হয়েছে উল্লেখযোগ্য মাত্রায়। সরকারি-বেসরকারি বিভিন্ন নির্মাণ প্রকল্প ও আবাসন খাতে বিপুল চাহিদা থাকায় ইস্পাতের মতো অত্যাবশ্যকীয় নির্মাণ উপকরণে দেশী-বিদেশী উদ্যোক্তাদের বিনিয়োগও বেড়েছে। লংকাবাংলা ও ইবিএলের গবেষণা প্রতিবেদন এবং ইস্পাত খাতসংশ্লিষ্ট বিভিন্ন সূত্রে পাওয়া তথ্য পর্যালোচনায় দেশের শীর্ষ পাঁচ ইস্পাত উৎপাদক প্রতিষ্ঠানের চিত্র পাওয়া গেছে।

সংশ্লিষ্টরা বলছেন, নির্মাণ খাতের আকার বাড়ার সঙ্গে সঙ্গে রড উৎপাদনও পাল্লা দিয়ে বাড়ছে। এক পরিসংখ্যানে দেখা গিয়েছে, গত আট বছরে সরকারের বিভিন্ন মেগা প্রকল্পে ভর করে দেশের নির্মাণ খাতের আকার দ্বিগুণ হয়েছে। বড় ধরনের প্রবৃদ্ধির কারণে দেশের প্রতিষ্ঠিত ও বড় কয়েকটি শিল্প গ্রুপ এ খাতের ব্যবসায় বিনিয়োগ সম্প্রসারণ করেছে। এসব শিল্প গ্রুপ ও প্রতিষ্ঠানের মধ্যে রয়েছে বিএসআরএম, আবুল খায়ের, কেএসআরএম, জিপিএইচ অন্যতম। পাশাপাশি চীনা ও জাপানি উদ্যোক্তারাও দেশের ইস্পাত শিল্পে বড় আকারের বিনিয়োগ নিয়ে এগিয়ে এসেছেন।

দেশের ইস্পাত শিল্পে একক প্রতিষ্ঠান হিসেবে সবার ওপরে রয়েছে ১৯৫২ সালে তত্কালীন পূর্ব পাকিস্তানে স্টিল রি-রোলিং মিল স্থাপনের মাধ্যমে ইস্পাত শিল্পের ব্যবসায় যুক্ত হওয়া বিএসআরএম গ্রুপ। বর্তমানে বিএসআরএম গ্রুপের দুটি কোম্পানি দেশের পুঁজিবাজারে তালিকাভুক্ত রয়েছে। এর মধ্যে বাংলাদেশ স্টিল রি-রোলিং মিলস লিমিটেডের (বিএসআরএম) বার্ষিক উৎপাদন সক্ষমতা সাত লাখ টন। বিএসআরএমের আরেকটি ইউনিটে বিলেট উৎপাদন করা হয়, যেটির উৎপাদন সক্ষমতা বছরে দেড় লাখ টন। এ গ্রুপের আরেকটি তালিকাভুক্ত কোম্পানি বিএসআরএম স্টিলস লিমিটেডের বার্ষিক উৎপাদন সক্ষমতা সাত লাখ টন। সব মিলিয়ে বিএসআরএম গ্রুপের রড উৎপাদন সক্ষমতা বছরে ১৭ লাখ টন এবং বিলেট উৎপাদন সক্ষমতা ১৯ লাখ টন। দেশের পাশাপাশি বিদেশেও কার্যক্রম রয়েছে বিএসআরএমের। হংকংয়ে গ্রুপটির একটি সাবসিডিয়ারি রয়েছে। কেনিয়ায়ও বিএসআরএম বিনিয়োগ করেছে। তাছাড়া প্রতিবেশী ভারতের কলকাতায়ও কয়েক বছর ধরে ব্যবসা করছে বিএসআরএম।

 

ইস্পাত খাতের অন্যতম আরেক শীর্ষ প্রতিষ্ঠান আবুল খায়ের গ্রুপ। প্রতিষ্ঠানটির আবুল খায়ের স্টিল বা একেএস এখন ইস্পাতের বাজারে শীর্ষস্থানীয় ব্র্যান্ড। বর্তমানে প্রতিষ্ঠানটির বার্ষিক উৎপাদন সক্ষমতা ১৪ লাখ টন। ১৯৯৩ সালে ঢেউটিনের মাধ্যমে প্রথমে ইস্পাত শিল্পের ব্যবসায় আসে আবুল খায়ের গ্রুপ। পরে ২০০৯ সালে তারা রড উৎপাদন শুরু করে।

ইস্পাত শিল্পের উদ্যোক্তাদের সংগঠন বাংলাদেশ স্টিল ম্যানুফ্যাকচারার্স অ্যাসোসিয়েশনের (বিএসএমএ) তথ্যানুসারে দেশে বর্তমানে ইস্পাত শিল্পের বাজারের আকার প্রায় ৩০ হাজার কোটি টাকা। অ্যাসোসিয়েশনের তালিকাভুক্ত প্রতিষ্ঠানের সংখ্যা ৪০। বর্তমানে দেশের ইস্পাত খাতের সম্মিলিত উৎপাদন সক্ষমতা ৯০ লাখ টন। এর মধ্যে বর্তমানে ব্যবহূত হচ্ছে ৫৫ লাখ টন। যদিও করোনার কারণে গত বছর তা ৩০-৩৫ লাখ টনে নেমে গিয়েছিল। এ বছর দেশের ইস্পাত খাত কিছুটা ঘুরে দাঁড়িয়েছে। এ খাতে উদ্যোক্তাদের মোট বিনিয়োগের পরিমাণ ৫০-৬০ হাজার কোটি টাকা। দেশে নির্মাণ খাতের প্রবৃদ্ধির ধারাবাহিকতা বজায় থাকলে ভবিষ্যতে রডের চাহিদা আরো বাড়বে। তবে বিদ্যমান যে সক্ষমতা রয়েছে তা দিয়ে আগামী ২০-২৫ বছর চাহিদা মেটানো সম্ভব। একসময় রড আমদানি করা লাগলেও বর্তমানে বাংলাদেশ এ খাতে স্বয়ংসম্পূর্ণ।

দেশের ইস্পাত শিল্পে ১৯৮৪ সালে যাত্রা করে কবির স্টিল রি-রোলিং মিলস লিমিটেড (কেএসআরএম)। বর্তমানে বছরে প্রতিষ্ঠানটির উৎপাদন সক্ষমতা আট লাখ টন।

পুঁজিবাজারে তালিকাভুক্ত জিপিএইচ ইস্পাত এ খাতের ব্যবসায় যুক্ত হয় ২০০৮ সালে। বর্তমানে কোম্পানিটির বার্ষিক ২ লাখ ১০ হাজার টন এমএস বিলেট ও দেড় লাখ টন এমএস রড উৎপাদনের সক্ষমতা রয়েছে। সম্প্রতি জিপিএইচের নতুন প্লান্টের নির্মাণকাজ শেষ হয়েছে। যদিও আনুষ্ঠানিকভাবে এর কার্যক্রম এখনো শুরু হয়নি। নতুন প্লান্টের সক্ষমতা যোগ করলে জিপিএইচ ইস্পাতের বার্ষিক এসএম বিলেট উৎপাদন সক্ষমতা বেড়ে দাঁড়াবে ১০ লাখ ৫০ হাজার টনে। ৭ লাখ ৯০ হাজার টনে উন্নীত হবে এমএস রড উৎপাদন সক্ষমতা।

১৯৭৮ সাল থেকে দেশের ইস্পাত শিল্পের ব্যবসায় যুক্ত রয়েছে আনোয়ার গ্রুপ। প্রতিষ্ঠানটির বার্ষিক ৩ লাখ ৬০ হাজার টন সিমেন্ট উৎপাদনের সক্ষমতা রয়েছে।

চট্টগ্রামের মিরসরাই অর্থনৈতিক অঞ্চলে চীনা ইস্পাত জায়ান্ট কুনমিং আয়রন অ্যান্ড স্টিল হোল্ডিং কোম্পানি বার্ষিক ২০ লাখ টন সক্ষমতার কারখানা স্থাপনে ২৩০ কোটি ডলার বিনিয়োগ করছে। এটি দেশের উৎপাদন খাতে সবচেয়ে বড় বিনিয়োগ। এছাড়া জাপানের সবচেয়ে বড় ইস্পাত উৎপাদক নিপ্পন স্টিল ও সুমিতমো মেটাল স্থানীয় কোম্পানি ম্যাকডোনাল্ড স্টিল বিল্ডিং প্রডাক্টসের সঙ্গে যৌথ উদ্যোগে কারখানা স্থাপনে ৬ কোটি ডলার বিনিয়োগ করবে। এ কারখানাগুলো উৎপাদনে এলে দেশের ইস্পাত খাতে প্রতিযোগিতা আরো তীব্র হয়ে উঠবে।

[Joel Ahmed]

https://thefinancialexpress.com.bd/trade/gph-exports-billet-worth-71m-to-china-1633754012

GPH exports billet worth $71m to China

 NAZIMUDDIN SHYAMOL | Published:  October 09, 2021 10:33:32

CHATTOGRAM: GPH Ispat Limited has exported a total of 120,000 MT billet to China and earned a total of 71 million US dollar so far. The GPH exported the billets by five shipments from November last year till today.

Sources said GPH exported a total of 29,658 MT billets by fifth shipment through Chittagong sea port on October 5 last. The buyer of the billet was Mac Steel International of China. The MV Crown Virtue loaded with the GPH billets left Chittagong port for Zhang Jiangang, Yangtze River Port on October 5 afternoon.

Sources said the fourth shipment of prime quality steel billet was exported to China main port known as Jiangyin/Xiamen port May 6 last while the first shipment was held at the Chittagong port on November last year which was the first export of high quality steel billet to China from Bangladesh.

Executive Director of GPH Kamrul Islam FCA said, "It was the first time billet export in bulk cargo from Bangladesh. We had the record of billet export in 2008 which was 2,500 MT only and also initiated rod and billet export to India in the year of 2010-11."

"Now, we are in the phase of biggest shipment in the history of Bangladesh in terms of value. If policy support from Government will receive like other export sector, we would continue the export of billet in future. This will become a new avenue in the export sector," he said.

He further said, "GPH is a capital intensive industry, the value addition of the industry is more than 50% in locally. We use 50% to 70% imported raw material and the remaining portion of 30 per cent to 50 per cent of main raw material has been collected through local source. Other manufacturer will come forward for export, if they can ensure the international quality like GPH."

He also said, "German technology which is first in Asia and second in the world. Now, we have more than one million MT production capacities at our plant. Power consumption is more than 50% lower than Induction Furnace and 30% lower than traditional EAF. We have no gas based reheating furnace used in the rolling process. Ensuring the highest quality of products; the mill is able to produce up to class 3 grade product which ensures up to 790 MPA by quenching and class 4 grade products which ensure maximum 980 MPA by micro alloying."

He also urged the government for stimulation for the export of billet and increases the production of GPH.

 

[Joel Ahmed]

https://www.tbsnews.net/economy/stocks/bangladesh-building-systems-fall-losses-320341#.YXWHziD5-94.facebook

Rafiqul Islam

24 October, 2021, 10:10 pm

Last modified: 24 October, 2021, 10:17 pm

Bangladesh Building Systems fall into losses

The firm suffers a drop in its other income and non-operating income, and an increase in expenses during the pandemic

 

Highlights:

• Incurred loss of Tk3.58 crore in FY21
• Profit was Tk3.45 crore in Jul-Dec of 2020
• Declared 2% cash dividends
• The share price fell 10.33% to TK16.50 each on Sunday
• In FY20, profit was Tk10.87cr
• Paid a 10% dividend
• Manufactures prefabricated steel structure

From a profit-making company, Bangladesh Building System – a pre-fabricated steel structure manufacturer in the country – has fallen into losses owing to a drop in its other income and non-operating income, and an increase in expenses during the Covid-19 pandemic.

In fiscal 2020-21, it incurred a loss of Tk3.58 crore, and the loss per share stood at Tk0.22.

The company, which got listed on local stock exchanges in 2013, has recommended a 2% cash dividend for its shareholders, which is lower than the previous year.

Due to an excessive sell pressure by its frustrated shareholders for the loss and lower dividend, the share price fell 10.33% to Tk16.50 each, from Tk18.40 each on the previous trading session.

As per its financials, Bangladesh Building System incurred losses in the last half of the fiscal year ending on 30 June 2021.

In the first half, it posted a profit of Tk3.45 crore amid the pandemic.

Though it incurred a loss of Tk1.89 crore from January to March of 2021, in the first three quarters of the fiscal year, it reported a profit of Tk1.55 crore.

But in the last quarter of FY21, the pre-fabricated steel structure manufacturer faced a pandemic blow, resulting in losses.

Despite a decline in revenue by 46% to Tk87.6 crore in fiscal 2019-20, it was able to post a profit of Tk10.9 crore.

Although the profit was 61% lower than the previous year.

After the blow, in that fiscal year, it paid 10% dividends to its shareholders; in which 5% cash and 5% stock dividends.

The company stated in its disclosure published on stock exchanges on Sunday, the annual general meeting (AGM) will be held on 20 December through a digital platform, and the record date has been set for 14 November.

It stated net operating cash flow per share stood at Tk1.77, which was negative at Tk0.63 in the previous year, due to an increase in collection and a decrease in creditors' payment.

Owing to the pandemic, which broke out in the country last year, the company has suffered a drop in both sales and profits.

The principal activities of the company are manufacturing and marketing of pre-engineered steel buildings in Bangladesh to meet-up the growing demand, especially in the industrial sector.

It deals with pre-engineered steel buildings like factories, warehouses, hall rooms, workshops, aircraft hangers, office buildings, commercial showrooms, distribution centres, supermarkets, restaurants, and residential buildings as well.

As of September 2021, out of the total shares, sponsors and directors held 30.01%, institutional investors 38.19%, foreign investors 0.13%, and general investors 31.67%.

 

[Joel Ahmed]

https://www.tbsnews.net/economy/bsrm-ups-investment-264-meet-growing-demand-320359

Mahfuz Ullah Babu

24 October, 2021, 08:45 pm

Last modified: 25 October, 2021, 02:59 pm

BSRM ups investment by 164% to meet growing demand

A year ago, the listed company had announced a Tk700 crore investment plan to increase its annual production capacity of construction rod and some other products by five lakh tonnes, taking the total capacity to over 21 lakh tonnes per year

https://www.tbsnews.net/sites/default/files/styles/big_3/public/images/2021/10/24/bsrm11.jpg?itok=RdSf88MR&timestamp=1635093394

 

The steel market leader, BSRM Steels Ltd, has revised up its investment plan for capacity expansion amid a boost in demand for its products.

A year ago, the listed company had announced a Tk700 crore investment plan to increase its annual production capacity of construction rod and some other products by five lakh tonnes, taking the total capacity to over 21 lakh tonnes per year.

But amid soaring demand, it has now planned to increase rod re-rolling capacity by six lakh tonnes, for which it will also increase its billet making capacity by 2.5 lakh tonnes. This will make the company self-reliant for the semi-finished raw material, said company officials.

BSRM Steels Ltd produces billets through melting imported scrap metals and the billets are turned into construction rods and some other mild steel (MS) products.

For the revised melting and re-rolling capacity of 22 lakh tonnes each per year, the total investment needed has been revised up to 2.64 times to Tk1,850 crore and the project is set to be completed by the end of 2023, instead of the previous plan to begin production by mid-2023.  

"We could have sold 5 lakh tonnes more in the 2020-21 fiscal year, if we had the production capacity," said BSRM Head of Accounts and Finance Shekhar Ranjan Kar.

The construction boom after the first wave of Covid-19 increased the demand for steel products by around 15% in the last fiscal year, while BSRM sold nearly one-third more rods over the fiscal year ending in June, he added.

The expansion project would be financed using BSRM's own money and some borrowed funds, the company disclosed.

Two BSRM companies listed in the local bourses announced record sales, profits and dividends for the 2020-21 fiscal year amid reduced marketing, finance and tax expenses.

Bangladesh, still one of the least per-capita steel consuming countries in the developing world, has begun using more of the material amid a long term infrastructure development phase, which includes both government mega projects and also private sector constructions.

Managing Director of BSRM Aameir Alihussain told The Business Standard that demand for steel would keep rising over the decades as the country's economic development is set to continue.

According to industry reports, in 2018, per-capita annual steel consumption in Bangladesh stood at 45 kilogrammes, having doubled in the previous five-eight years. 

The BSRM MD estimated that per-capita consumption has already reached 55kg.

Government megaprojects are the major growth drivers which now consume over one-third of the steel, up from less than 15% a decade ago, according to an industry report by IDLC Finance.

Anticipating the demand, industry players over the last decade have significantly increased their installed capacity to produce over 90 lakh tonnes a year, while the annual demand is estimated to have crossed 75 lakh tonnes, according to Aameir Alihussain.

GPS Ispat opened a new plant last year, with an annual capacity to produce 8.4 lakh tonnes of billet and 6.4 lakh tonnes of MS rod and medium section products, such as support beams and flat bars.

Meanwhile, Chinese steel giant Kunming Iron and Steel Holdings Company has announced to invest $2.3 billion in a steel manufacturing project, along with a power plant at Mirsarai in Chattogram.

A consortium of 17 private sector players named Star Infrastructure Development Consortium Ltd is acting as the local partner of Kunming.

They aim to produce two million tonnes of integrated iron and steel products annually. The operation of this consortium is expected to start by 2022.

There are around 400 steel mills in the country, but more than 65% of the annual demand is being met by a few dozen modern mills selling branded rods.

According to a 2019 industry report by EBL Securities, the top three companies -- BSRM, AKS and KSRM -- serve over half of the market.

[Joel Ahmed]

https://bonikbarta.net/home/news_description/280093/বিএসআরএম-স্টিলসের-নিট-মুনাফা-বেড়েছে-তিন-গুণ

বিএসআরএম স্টিলসের নিট মুনাফা বেড়েছে তিন গুণ

নিজস্ব প্রতিবেদক

নভেম্বর ১৩, ২০২১

চলতি হিসাব বছরের প্রথম প্রান্তিকে (জুলাই-সেপ্টেম্বর) ভালো ব্যবসা করেছে পুঁজিবাজারে তালিকাভুক্ত প্রকৌশল খাতের কোম্পানি বিএসআরএম স্টিলস লিমিটেড। আলোচ্য সময়ে কোম্পানিটির কর-পরবর্তী নিট মুনাফা আগের হিসাব বছরের একই সময়ের তুলনায় তিন গুণ বেড়েছে। সর্বশেষ অনিরীক্ষিত আর্থিক প্রতিবেদনে এ তথ্য উঠে এসেছে। সম্প্রতি অনুষ্ঠিত কোম্পানিটির পরিচালনা পর্ষদের সভায় এ প্রতিবেদন অনুমোদন করা হয়।

কোম্পানিটির আর্থিক প্রতিবেদন পর্যালোচনায় দেখা যায়, চলতি হিসাব বছরের প্রথম প্রান্তিকে বিএসআরএম স্টিলসের আয় হয়েছে ১ হাজার ৩১৮ কোটি টাকার বেশি। আগের হিসাব বছরের একই সময় যা ছিল ৯৩৫ কোটি টাকা। আলোচ্য সময়ে কোম্পানিটির আয় বেড়েছে ৩৮৩ কোটি টাকার বেশি। আলোচ্য সময়ে কর-পরবর্তী নিট মুনাফা হয়েছে ১০৮ কোটি ৫৬ লাখ টাকা। যেখানে আগের হিসাব বছরের একই সময় নিট মুনাফা ছিল ৩৫ কোটি ৮০ লাখ টাকা। সেই হিসাবে নিট মুনাফা বেড়েছে ৭২ কোটি ৭৬ লাখ টাকা।

প্রথম প্রান্তিকে কোম্পানিটির শেয়ারপ্রতি আয় (ইপিএস) হয়েছে ২ টাকা ৮৯ পয়সা। আগের হিসাব বছরের একই সময় যা ছিল ৯৫ পয়সা। ৩০ সেপ্টেম্বর ২০২১ শেষে কোম্পানিটির শেয়ারপ্রতি নিট সম্পদমূল্য (এনএভিপিএস) দাঁড়িয়েছে ৬৬ টাকা ৯৯ পয়সা। আগের হিসাব বছরের একই সময় শেষে যা ছিল ৬২ টাকা ৩৮ পয়সা।

৩০ জুন সমাপ্ত ২০২১ হিসাব বছরের জন্য ৩০ শতাংশ লভ্যাংশের সুপারিশ করেছে বিএসআরএম স্টিলসের পরিচালনা পর্ষদ। এর আগে ১০ শতাংশ অন্তর্বর্তী নগদ লভ্যাংশ দিয়েছিল কোম্পানিটি। সেই হিসাবে আলোচ্য হিসাব বছরের সুপারিশকৃত লভ্যাংশ অনুমোদন হলে মোট ৪০ শতাংশ নগদ লভ্যাংশ পাবেন শেয়ারহোল্ডাররা। সুপারিশকৃত এ লভ্যাংশ অনুমোদনের জন্য আগামী ২৩ ডিসেম্বর ভার্চুয়াল মাধ্যমে বার্ষিক সাধারণ সভা (এজিএম) আহ্বান করা হয়েছে। লভ্যাংশ নির্ধারণ-সংক্রান্ত রেকর্ড ডেট ধরা হয়েছে ১৮ নভেম্বর।

সমাপ্ত হিসাব বছরে কোম্পানিটির ইপিএস হয়েছে ৮ টাকা ১০ পয়সা। আগের হিসাব বছরে যা ছিল ১ টাকা ৯৭ পয়সা। ৩০ জুন ২০২১ শেষে এনএভিপিএস দাঁড়িয়েছে ৬২ টাকা ৩৮ পয়সা। আগের হিসাব বছরের একই সময়ে শেষে যা ছিল ৫৬ টাকা ৮৪ পয়সা।

এর আগে ৩০ জুন সমাপ্ত ২০২০ হিসাব বছরের জন্য ১৫ শতাংশ নগদ লভ্যাংশ দিয়েছিল বিএসআরএম স্টিলস। আলোচ্য সময়ে কোম্পানিটির ইপিএস ছিল ১ টাকা ৯৭ পয়সা, আগের হিসাব বছরের একই সময়ে যা ছিল ৪ টাকা ৬০ পয়সা। ৩০ জুন ২০২০ শেষে কোম্পানিটির এনএভিপিএস দাঁড়ায় ৫৬ টাকা ৮৪ পয়সা।

সর্বশেষ রেটিং অনুযায়ী, বিএসআরএম স্টিলসের ঋণমান দীর্ঘমেয়াদে ‘ডাবল এ প্লাস’ ও স্বল্পমেয়াদে ‘এসটি-টু’। ৩০ জুন সমাপ্ত ২০২১ হিসাব বছরের নিরীক্ষিত আর্থিক প্রতিবেদনসহ আনুষঙ্গিক হালনাগাদ তথ্যের ভিত্তিতে এ প্রত্যয়ন করেছে ক্রেডিট রেটিং ইনফরমেশন অ্যান্ড সার্ভিসেস লিমিটেড (সিআরআইএসএল)।

২০০৯ সালে তালিকাভুক্ত হওয়া কোম্পানিটির অনুমোদিত মূলধন ৫০০ কোটি টাকা। পরিশোধিত মূলধন ৩৭৫ কোটি ৯৫ লাখ ৩০ হাজার টাকা। রিজার্ভে রয়েছে ১ হাজার ৭৬১ কোটি ৫ লাখ টাকা। মোট শেয়ার সংখ্যা ৩৭ কোটি ৫৯ লাখ ৫২ হাজার ৫০০। এর মধ্যে ৭০ দশমিক ৫৭ শতাংশ উদ্যোক্তা-পরিচালক, ১৬ দশমিক ৮৭ শতাংশ প্রাতিষ্ঠানিক বিনিয়োগকারী, দশমিক ৩৯ শতাংশ বিদেশী ও বাকি ১২ দশমিক ১৭ শতাংশ শেয়ার সাধারণ বিনিয়োগকারীদের হাতে রয়েছে।

ঢাকা স্টক এক্সচেঞ্জে (ডিএসই) বৃহস্পতিবার বিএসআরএম স্টিলসের শেয়ারে সর্বশেষ ও সমাপনী দর ছিল ৬৭ টাকা ৫০ পয়সা। এদিন শেয়ারটির দর ৬৭ টাকা ২০ পয়সা থেকে ৬৯ টাকা ২০ পয়সার মধ্যে লেনদেন হয়। গত এক বছরে শেয়ারটির সর্বনিম্ন ও সর্বোচ্চ দর ছিল যথাক্রমে ৩৭ টাকা ও ৮২ টাকা ৫০ পয়সা।

সর্বশেষ নিরীক্ষিত ইপিএস ও বাজারদরের ভিত্তিতে এ শেয়ারের মূল্য-আয় (পিই) অনুপাত ৩৪ দশমিক ২৬, হালনাগাদ প্রান্তিক প্রতিবেদনের ভিত্তিতে যা ৭ দশমিক ৩৬।

[Joel Ahmed]

https://www.tbsnews.net/interviews/bsrm-trading-business-countrys-top-steel-producer-452458

TBS Interview

04 July, 2022, 09:45 am

Last modified: 04 July, 2022, 12:51 pm

BSRM: From a trading business to the country’s top steel producer

Aameir Alihussain, managing director of BSRM. Illustration: TBS

BSRM – Bangladesh Steel Re-rolling Mills – is the largest steel manufacturing company in Bangladesh. The 70-year-old company currently has eight factories which produce 16 lakh tonnes of MS (mild steel) rods and 18 lakh tonnes of MS billets a year. Even though the demand for rods dropped soon after the outbreak of the coronavirus pandemic, the company continued production without laying off any workers. Later, when the demand and prices of the product increased, the stockpiled products brought maximum profit to the company in 2020-21. At present, BSRM employs around 4,500 people. A new factory of the company is set to go into production in 2023, producing seven lakh tonnes of rods annually.

Aameir Alihussain, managing director of BSRM, shared the story of the long journey of his company, and its various achievements since its inception with The Business Standard's Chattogram Bureau Chief Shamsuddin Illius and Staff Correspondent Jobaer Chowdhury.

How did BSRM start? How has your journey been so far?

BSRM started its first steel production in Chattogram in 1952. Following the partition of India in 1947, our family migrated to Karachi from Gujarat. From there, our family came to Chattogram in 1948. Then, we were involved in trading mostly between East Pakistan and West Pakistan. At that time, my grandfather and his brother took cognizance of the fact that there was no factory in Chittogram. Most industries in Pakistan were based in the western wing of the country. Then, they decided to set up a rolling factory in Chattogram with the industry already having a strong footing in India and my family had good communication with the people there. In 1952, our family set up a rolling factory in the Nasirabad industrial area of Chattogram – the first of its kind in this part of the country. Our first product was grade 40 steel. We gradually increased our production capacity. The ship-breaking industry also started its journey in Bangladesh through our family. We kept adding new innovations to the industry.

After the 1971 liberation, all our property went into the possession of the state as it was decided that all industries would be nationalised and the government would run most of those.

After independence, Bangabandhu Sheikh Mujibur Rahman visited our plant. He was acquainted with our family. Sheikh Mujib Shaheb realised that we wanted to stay here and that we wanted to invest here. Subsequently, in 1973, everything was returned to us.

At that time, the condition of the industrial sector in the country was not good. We have been investing ever since. We launched a semi-automated plant in the 1980s. Then, we started to produce grade 60 steel following international standards. The steel industry expanded the most post-1990 and we have just moved on utilising our long experience. We have adopted new technologies and brought the latest machinery. This is how we have expanded our business.

Sheikh Mujib Shaheb's vision and goals were very big. At that time, the economic condition of the country was also very weak. There were not many factories here. So, he wanted large industries to be built and returned industries to the private sector. That very decision changed everything. Today's BSRM is an excellent example of how a good decision or policy of the head of government can make a big difference.

How did BSRM work during the pandemic?

When everything was shut down, the demand for the products was low. But, the stimulus given by the government has helped us.

We did not downsize during the pandemic. We faced a lot of hardship in the first two months of the Covid outbreak. There was a lot of pressure and tension then. People in all sectors were losing their jobs. But, our policy was that we would try to survive as long as we could because we were a family together. Our officers and employees suffered a lot. We kept our factories in operation. Although big projects were slow, we kept supplying steel as per the requirement. We had to reduce our production by 30% during the pandemic. At that time, our sales went down sharply, and yet we were continuing production and building up stocks.

BSRM posted record profit in the financial year 2020-21. Its sales have increased by one-third. Demand for steel has increased in the wake of an improvement in the pandemic situation. How is BSRM managing this huge demand?

Demand for steel was low in the first year of the pandemic. The pent-up demand has led to a significant increase in our sales. Besides, the government provided us with stimulus. It has capped the lending rate at a single-digit. As a result, the financial cost of the entire industry has come down. Hopefully, the government will keep the interest rate at the current level. This will help the private sector flourish further.

Does BSRM have any plans to launch new products or take up new projects?

We have started a new unit to manufacture wire. We manufacture the ACSR core wire there, which had to be imported earlier. We are also manufacturing PC wire, which was also fully import-dependent. 

Aside from producing different types of wire, we manufacture a lot of products related to safety and security. These are new for our country. Because of the pandemic, technical people did not come to the country from China and Europe. So, the whole process of production and supply of all this equipment was slow. But, now it is going at a good pace.

 Does BSRM want to expand business in any new field?

There are no such plans at this moment. In our country, it is very easy to step into a new sector. There is growth, but our resources are limited. Our industrial sector is capital-reliant. It takes a lot of capital, so we have kept investing. In addition, we have started a new rod manufacturing project. It will increase our production capacity by seven lakh tonnes. Construction work on this new project has begun and it is expected to go into production in 2023.

China is now reducing steel production. Countries in the African continent, however, are raising their steel manufacturing capacity because there are scopes for development. Many development projects are underway in Bangladesh. There is a demand for steel here. What are the prospects for the steel industry in Bangladesh?

Bangladesh needs to develop its infrastructure within the next 20-30 years. The infrastructural condition of the neighbouring countries is much better than ours. Our infrastructural investment in setting up the entire communication system is negligible when compared to the per capita income. Roads in many parts of the country are still in very bad shape. Travelling is time-consuming here. We have to work on this area. Many resources are not being utilised due to infrastructural deficiency.

Four-lane and six-lane roads have to be constructed everywhere. The potential of the tourism industry has to be tapped. A proper communication network needs to be established across the country. 

 Tell us about the export potential of BSRM.

Bangladesh has good potential in export trade. Because there is enough manpower here. Let the economic zones be fully opened. Let the port infrastructure be developed. There are more freights in the country when compared to neighbouring countries.The government needs to focus on how to reduce this. The government needs to formulate a policy whether it will increase the capacity of the ports or introduce specific lines so that the number of freight as well as import costs is reduced.

Do you expect any government policies to take the country's steel industry forward?

We need to reform our tax policies. It is very complicated. Because our tax policy is very conflict-ridden, there always remain some problems when any company is audited in the country. A radical change is needed here.

What is BSRM thinking about climate change and production management?

Among the steel mills, the basic steel product manufacturing ones emit carbon. We produce steel by reusing scraps. We runan eco-friendly industry as the extent of carbon emission is very low in our steel-making process. We also have air pollution control systems. We have attained international recognition for reducing carbon emissions.

[Joel Ahmed]

https://www.dhakatribune.com/business/2022/07/05/bangladesh-steel-and-engineering-corp-reports-losses-for-the-first-time

Bangladesh Steel and Engineering Corp reports losses for the first time

According to official statistics, the corporation incurred a financial loss of Tk10.2 crore in FY21

 

July 5, 2022 5:57 PM

A once-thriving Bangladesh Steel and Engineering Corporation (BSEC) is now reporting losses.

The state steelmaker was profitable until FY20, despite various operational challenges but saw a reversal of its fortune in FY21 when the corporation incurred a loss of over Tk10 crore.

Officials at BSEC said that the corporation somehow managed to maintain a healthy balance sheet thanks largely to the profits earned by its best-performing unit - Pragati Industries.

But Covid-19-induced shocks took a big bite out of the earnings of the automobile assembler, badly affecting its production and sales. This is now reflected in the balance sheet, according to them.

The profit margin of the key corporation of the government was over Tk83.3 crore even in FY17 but the figure kept waning continuously with the net profit shrinking to Tk78.6 crore, Tk80.6 crore and Tk54.1 crore in FY18, FY19 and FY20 respectively.

According to official statistics, the corporation incurred a financial loss of Tk10.2 crore in FY21.

The loss-incurring units are Eastern Cables Limited (Tk10 crore), Atlas Bangladesh Limited (Tk9.79 crore), Bangladesh Blade Factory Limited (Tk3.27 crore) and Eastern Tubes Ltd (Tk1.77 crore).

Its profit-makers are Pragati Industries Limited (Tk5.1 crore), General Electric Manufacturing Company Ltd (Tk4.7 crore), Gazi Wires Ltd (Tk2.54 crore), Dhaka Steel Works Ltd (Tk1.82 crore) and National Tubes Ltd (Tk51 lakh).

Seeking anonymity, a senior official at the Industries Ministry said that they were dealing with four major public corporations - BCIC, BSEC, BSCIC and BSFIC. Only BSEC was making profit, but, unfortunately, it also joined in the league of other loss making corporations.

This is probably the first time the corporation made a loss, he also said.

A BSEC official, who also preferred to remain anonymous, said Pragati Industries Limited, which meets government demand for automobiles in development budget, played a major role in making BSEC balance sheet healthy but the government completely stopped purchasing for a year as part of its austerity measure during the first two waves of Covid-19.

Later, the government resumed its purchase as the pandemic situation improved but the volume was much lower than the pre-Covid time, he said.

This severely affected the performance of Pragati. Look at the profit margins of the automaker - it earned profit of Tk101 crore in FY19 and it declined to only Tk5.1 crore in FY21, he said.

The official also mentioned that the corporation had a 30% stake in Honda.

Asked whether the corporation made a loss for the first time, the official said in his 15 years in the company he has never seen it make a loss.

[Joel Ahmed]

https://www.tbsnews.net/economy/industry/shaking-covid-lull-bangladesh-steel-industry-eyes-global-foothold-500162

TBS Report

20 September, 2022, 10:55 pm

Last modified: 20 September, 2022, 10:58 pm

Shaking off Covid lull, Bangladesh steel industry eyes global foothold

 

The Bangladesh steel industry looks to secure a foothold in the global market with the sector beginning to bounce back from pandemic shocks, say industry leaders.

Bangladesh's steel industry is worth Tk55,000 crore ($62 million) and the country is globally the second largest destination for scrap ships and one of the largest ferrous scrap consumers with imports touching 4,000,000 tonnes. Its steel melting capacity is expected to reach 13,000,000 tonnes by 2025, speakers said at the 3rd Steel & Raw Material Conference, Emerging Bangladesh, held in Chattogram on Tuesday.

BSRM Group Managing Director Aameir Alihussain said that the steel industry has gone through a very difficult time due to the coronavirus pandemic, which led to an overall cost increase, including in freight charges, raw materials and transport. Then came the Russia-Ukraine war, which pushed up energy prices.  

"Being a populous country, economic activities are always vibrant in Bangladesh, China or the South Asian countries. Yet people's lives are affected by the high prices of food and goods. Demand for steel is slightly down at the moment due to rising prices of everything," he said, adding, "We want to meet the domestic needs of the country and capture the world market. We are moving towards that goal."

In the keynote speech, Subhendu Bose, managing director of Singapore's Duferco Asia Pte Ltd, said that between 2017 and 2020 HRC prices ranged between $400 and $600 in Asia. Meanwhile HMS Scrap prices were ranging between $230 and $400. These price bands were maintained by lackluster global growth and stable costs.

"In 2021 the old price range was broken by a period of global steel deficit. Post-covid demand recovery was too sharp for steel production to keep up. In 2022 we have seen a new paradigm as demand is receding at most developed economies due to a combination of factors, including high cost of capital and high cost of energy," he added.

Local and foreign experts spoke at several sessions at the conference on the current situation and prospects of iron and steel products used in the country and abroad, increase in cost of steel raw materials, crisis and overall situation, quality, current sustainable technology, ship breaking industry, modern marketing policy.

Alhaj Sufi Muhammad Mizanur Rahman, chairman of PHP family, inaugurating the conference said, "Steel is the foundation of modern civilisation. The summit will play a positive role in the quality, value creation, and market expansion of the steel industry. All of us should work for the development of this industry."

BSRM Group Chairman Alihussain Akberali said, "This conference is very important for the country's steel sector. Steel product exporters from different countries of the world have participated in the conference. There are the top steel manufacturing companies of the country. It creates an easy connection between all the parties. Communicating directly with so many companies around the world would be expensive and difficult for many companies in the country."

The industry at present

A few days after the outbreak of the Russia-Ukraine war, which started on 24 February 2022, the steel market saw a significant steel export reduction from the region. The reduction was due to both military action in the case of Ukraine and western sanctions in the case of Russia and Belarus.

At present steel prices at all the main markets have stabilised, despite the state of steel consumption worsening due to sharp production cuts globally.

"While consumption is going from bad to worse, production cuts have been so big that forecasting market movement in the next weeks is very difficult – the changes are happening too fast and the current supply and demand balance is not clear," said Subhendu Bose.

The conference was arranged to explore key issues like the country's steel production and demand outlook, global scrap trade flow changes, especially in a post-Russia-Ukraine war situation, the ship recycling scene, key emerging sectors, price trends and a lot more.

Market leaders from 29 countries, including the US, Germany, Belgium, Australia, India, Austria, Taiwan, China and Japan, attended the conference. 

[Joel Ahmed]

https://www.tbsnews.net/economy/stocks/appollo-ispat-bearing-brunt-ex-employees-fund-mishandling-689314

Rafiqul Islam

26 August, 2023, 10:15 pm

Last modified: 26 August, 2023, 10:33 pm

Appollo Ispat bearing the brunt of ex-employees' fund mishandling

 

Appollo Ispat Complex – once renowned for its corrugated iron sheets brand "Rani Marka Dheutin" – is having to carry the weight of fund mismanagement by its former employees as the company is drowning in a massive loan of Tk1,100 crore. 

In a letter to the Bangladesh Securities and Exchange Commission (BSEC), Apollo Ispat said the past employees acted against the interests of the company which caused damages and piled up the debt burden. 

Therefore, citing its tough times and current situation, the company's Vice Chairman Mohammad Shoeb wrote to the BSEC and sought the waiving of surcharges, fines, and listing fees until the company's situation improves. He mentioned that the company is looking for a strategic partner. 

"We are trying to find strategic partners or investors, who can join hands with us to restructure the company. We are already in discussion with some investors who may be interested in investing in Appollo Ispat.

"The overall process to complete financial and corporate restructuring along with finding a strategic investor may take six to nine months," the letter reads.

Appollo Ispat was listed on the stock market in 2013. Back then, it raised Tk216 crore through an initial public offering (IPO). 

After its listing, the company posted handsome profits for three straight years. However, its business began to decline in 2017 after its pre-IPO shares were up for sale on the bourses. 

Shareholders had been in the dark about the firm's business performance since 2019, as there had been no disclosure after the company posted a net loss of Tk92 crore for fiscal 2018-19.

The leadership struggle

Appollo Ispat has been out of production for more than two years owing to the absence of board members and a lack of proper leadership, Mohammed Shoeb said in the letter. 

The demise of four of the company's key members and the fleeing away of another have put the company into a lack of management. 

The company's Chairman Deen Mohammad, who was a Dhaka Awami League leader, Founding Managing Director Ansar Ali, Deputy Managing Director Abdur Rahman, and Company Secretary SK Abul Hasan passed away. 

Its last Managing Director Md Rafique fled the country without informing the board which deepened the company's wound. 

"We have taken legal action against Rafique, and also against our former Chief Financial Officer Rajib Hossain for their malfeasance. Now, along with a few directors, I'm trying to manage the company," Mohammed wrote in the letter to BSEC. 

The debt burden

According to its prospectus, when it got listed on the stock exchange, its total assets were Tk733 crore, and liability Tk394 crore including Tk135 crore long-term and Tk134 crore short-term loans.

Now, its total liabilities stand at Tk1,100 crore, of which Tk900 crore is penal interest, and Tk200 crore other outside liabilities.

The fair value of the company would now be Tk1,400-1,500 crore, according to the letter.