Omera Renewable Energy Limited signs a contract with BEXIMCO Group

Omera Renewable Energy Limited, a subsidiary under the aegis of East Coast Group Company, has forged a partnership with BEXIMCO Group, a preeminent business conglomerate in Bangladesh, to deploy a 9.23 MW Grid-Tied Rooftop Solar System at the BEXIMCO Industrial Park situated in Gazipur.

 

The Power Purchase Agreement was ceremoniously inked at the East Coast Centre in Gulshan, Dhaka, as announced in a press communiqué.

Dilruba Chowdhury, director at East Coast Group, and Anil Kumar Maheshwari, chief financial officer of BEXIMCO Textiles Division, signed the 20-year Power Purchase Contract.

Amin Sabir Khan, executive director of Power Generation, Distribution, and Utility, Saqib Shakoor, executive director of BEXIMCO, and Masudur Rahim, chief executive officer, along with AKH Hasif Sowdagar, fcma, fca, chief financial officer, Capt Minhazur Reza Chowdhury, chief operating officer, Khan Ashique Rahman, manager, and Umme Jahan Mishi, assistant manager of East Coast Group, were in attendance at the signing ceremony, accompanied by the project working and communication team.

Omera Solar, with a history of installing over 60 MW of Rooftop Solar Systems across various industrial rooftops, aims to promote the ethos of “Go green today for a brighter tomorrow.”

The installation of the 9.23 MW solar system by Omera Solar is anticipated to generate 10.78 GWh of clean energy annually, translating to a savings of Taka 104.46 million per year for BEXIMCO in electricity costs, while concurrently reducing CO2 emissions by 7,223 tonnes.

BEXIMCO Textiles & Apparel Ltd, renowned as the most advanced composite mill in the region, boasts a weaving section equipped with 288 high-speed air-jet looms and a state-of-the-art dyeing and finishing division capable of producing 100,000 yards of finished fabric daily. The company operates within the BEXIMCO Industrial Park.

Beximco Pharmaceuticals Limited gets loan for business expansion

Beximco Pharmaceuticals Limited has procured a substantial loan of €24.9 million (over Tk300 crore) from the German financial institution ODDO BHF SE, intended to augment its manufacturing capabilities, thereby amplifying its presence in both domestic and international markets.

As per the company's disclosures, Beximco Pharma formalized an agreement with the German bank in February to secure the loan for procuring machinery and equipment by 31 December. The loan will predominantly be allocated towards replacing and maintaining machinery, with a segment earmarked for the expansion of the company's production facilities.

Furthermore, Beximco Pharma has attained authorization from the Bangladesh Investment Development Authority (Bida) to secure the foreign loan, the company announced.

In its disclosure, the company specified that the loan, which will be remitted directly to the suppliers of the machinery and equipment, carries an interest rate of the 6-month Euribor (Euro Interbank Offered Rate) plus a margin of 1.3%. Repayments are scheduled to be made in semi-annual installments over a five-year period, commencing in June 2025.

The 6-month Euribor interest rate is the rate at which a consortium of European banks lends funds to one another, denominated in euros, for a tenure of six months.

Previously, Beximco Pharma had acquired a loan of €19.05 million from the same bank for business augmentation, which was completely repaid in January this year.

The company has persistently enhanced its production capacity, including the establishment of a third manufacturing facility, Unit-3, which commenced operations in 2021 following an investment exceeding Tk1,000 crore. Additionally, Beximco Pharma has acquired the local operations of multinational pharmaceutical companies Nuvista Pharma and Synovia Pharma, both of which now operate as its subsidiaries.

An equity analysis on Beximco Pharma by EBL Securities noted that the company derives a significant portion of its revenue from domestic drug sales, which constituted an average of 90% of its total revenue from FY19 to FY23. During this period, the company earned an average of 9.4% of its total revenue from exports and 0.2% from contract manufacturing.

Zuhaier Shams, a senior research associate at EBL Securities, conveyed to The Business Standard that Beximco Pharma is the foremost pharmaceutical exporter in the country, reaching 68 destinations, including highly regulated markets such as the US and Europe. From FY19 to FY23, Beximco Pharma contributed an average of 20% to the total pharmaceutical exports of Bangladesh.

He predicted that the company's profitability would improve due to a recent 50% reduction in the price of active pharmaceutical ingredients (API) in the Chinese market, marking the most significant decline since the pandemic. Beximco Pharma primarily imports APIs from China and India.

Consequently, the gross profit margin for Beximco Pharma, along with other pharmaceutical companies, is anticipated to increase this year due to the lower API prices, he added.

The EBL Securities equity report stated that the pharmaceutical industry in the country is valued at Tk31,200 crore as of March 2024 and is predominantly concentrated among the top ten pharmaceutical companies, which collectively held a 71.6% market share during this period.

Beximco Pharma has consistently ranked third among the top ten pharmaceutical companies over the past decade, holding a 9.6% market share as of March 2024, the report added.

The company's consolidated net revenue surged by over 13%, reaching Tk3,305 crore in the July-March period of FY24 compared to the same period the previous year. It also recorded a 23% growth in consolidated profit, reaching Tk437 crore during the same timeframe compared to the previous year.

The company had disbursed a 35% cash dividend to its shareholders for FY23.

FBCCI wants to strengthen economic ties with China

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has sought to strengthen trade and economic ties with China. FBCCI thinks that it would benefit the local companies and industries. Top Bangladeshi companies including Beximco group can also collaborate with Chinese top companies.

The FBCCI also called for greater collaboration with its Chinese counterpart such as the China Council for the Promotion of International Trade (CCPIT) and the China Chamber of International Commerce (CCOIC). FBCCI President Mahbubul Alam made this call at a meeting with the leaders of CCPIT and CCOIC held at the China World Summit Wing, Shangri-La Circle, in Beijing. During the meeting, the FBCCI President extended an invitation to Chinese businessmen to invest in Bangladesh, highlighting the array of facilities and incentives available for foreign investors. Mentioning Bangladesh's robust infrastructural development, strategic location and favourable business policies, Mahbubul Alam assured the Chinese business leaders that Bangladesh offers a conducive environment for investment while FBCCI would provide all kinds of support to the Chinese investors to facilitate their business in Bangladesh. "The Special economic zones, tax exemptions, and skilled workforce are the key advantages that make Bangladesh a lucrative destination for Chinese ventures," he added.

The FBCCI President stressed the potentials for future collaborations with the CCPIT and CCOIC in several sectors, including information technology, garments, textiles, light engineering, and joint research initiatives to explore market opportunities. The FBCCI President also sought support from Chinese businesses for technology transfer. He also invited the Chinese investors to visit Bangladesh in the future. During his speech, Secretary General of CCPIT Sun Xiao appreciated the recent infrastructural development of Bangladesh. He highlighted CCPIT's work on building a global corridor to facilitate seamless trade and investment flows, reinforcing the mutual benefits of a strengthened economic partnership between China and Bangladesh.

Business Leaders of FBCCI, CCPIT and CCOIC reaffirmed their commitment to deeper economic collaboration for growth and prosperity of both Bangladesh and China.

Beximco Pharma has a new MD

Aiming for strategic growth Amid leadership shift, Beximco Pharmaceuticals, appointed Iqbal Ahmed as new managing director. Iqbal Ahmed has been a long-serving director at the company.

The appointment of Iqbal Ahmed as managing director marks a significant milestone in Beximco Pharma's history. Ahmed, who has been an integral part of the company's board since 1985, steps into his new role, taking over from Nazmul Hasan, who resigned following his appointment as a government minister. The transition is poised to steer Beximco Pharma towards a new phase of growth and innovation, pending shareholders' approval at the forthcoming annual general meeting.

Having served on the board for nearly four decades, Ahmed brings a wealth of experience and a deep understanding of the pharmaceutical industry's dynamics. This leadership change comes at a critical time when the company is looking to bolster its market position and expand its global footprint. Under Ahmed's guidance, Beximco Pharma is expected to harness new opportunities and navigate challenges with renewed vigor and strategic acumen.

Stakeholders are keenly watching the leadership transition, anticipating its impact on the company's performance and strategic direction. Ahmed's appointment is viewed as a positive move, reflecting the company's commitment to continuity and stability. Investors, employees, and partners are optimistic that the new managing director's vision will translate into enhanced operational efficiency, innovation, and profitability. With the pharmaceutical industry facing rapid changes and increased competition, Ahmed's leadership is considered pivotal in driving Beximco Pharma's growth and sustainability.

The appointment of Iqbal Ahmed as the new managing director of Beximco Pharmaceuticals signifies more than a change in leadership; it heralds a strategic shift towards future readiness and growth. As the company navigates through the complexities of the global pharmaceutical landscape, Ahmed's seasoned leadership and strategic vision are anticipated to drive Beximco Pharma towards achieving its long-term objectives, ensuring its continued success in an ever-evolving industry.