Sonali Paper & Board Mills has started commercial production at its new product line, aluminum foil paper box unit.
The company set up the new unit on its factory premises at Rupganj in Naraynganj.
"The company started commercial operation at the new product line to produce aluminium foil paper boxes on Monday," the company said in a filing with the Dhaka Stock Exchange (DSE) on Tuesday.
On utilization of the maximum production capacity, the new line will produce 28 million pieces of boxes a year and may generate additional sales revenue of Tk 196 million annually, according to the filing.
Aluminium foil containers are used in family banquets and the packaging of food-related industries such as airline snack, western-style pastry baking, with the shape and size favoured by the customer.
The company believes that on utilisation of the full capacity of the new machine, it will have a significant impact on its competitive position in the market in addition to increasing its revenue.
Sonali Paper also produces white and printing papers, simplex papers and duplex papers.
Each share of the company closed at Tk 729.80 each on Tuesday, losing 1.18 per cent over the previous day.
The company's earnings per share (EPS) skyrocketed to Tk 14.72 for July 2021-March 2022 as against Tk 1.91 for July 2020-March 2021 due to increase in sales and other income.
The company disbursed 20 per cent cash and 20 per cent stock dividends for the year ended on June 30, 2021. In 2020, it provided 5.0 per cent cash and 10 per cent stock dividend.
In June this year, the company raised Tk 109.82 million through issuance of rights shares to purchase brand new caterpillar gas generator sets with complete standard accessories.
Currently, the company's paid-up capital is Tk 329.45 million, authorised capital is Tk 500 million and the total number of securities is Tk 32.94 million.
Sponsors hold 67.51 per cent stakes in the company, institutions 9.34 per cent and the general public the remaining 23.15 per cent as of July 31, 2022, according to DSE data.
Sonali Paper was incorporated in 1977 and got listed on the DSE in 1985 and on the Chittagong Stock Exchange in 1996.
Under the previous management, the company had incurred huge losses and failed to provide financial statements and hold annual general meetings from 1998 to 2006.
Accordingly, the prime bourse transferred the company to the over-the-counter (OTC) market in October 2009 due to its poor performance.
However, Younus Group took over the company after buying all the shares in 2006.
Sonali Paper came back to the main board of the stock exchanges from the OTC market on July 26, 2020.
