Paramount Textile PLC, a listed company belonging to Paramount Group, is diversifying its business portfolio in the power sector after faring well in the textile sector. Considering business prospective, Paramount Textile has now decided to invest in a solar plant by acquiring a 49% stake in Dynamic Sun Energy Private Ltd in Pabna. Shapoorji Pallonji Infrastructure Capital Company Pvt Ltd (SP Infra), a subsidiary of Shapoorji Pallonji Group of India, has an investment in Dynamic Sun Energy.
The two companies together will build a solar plant to supply electricity to the national grid. Paramount Textile will invest in the plant from its own sources and bank finance. The company manufactures woven fabric that is consumed by the export-oriented garments industries in Bangladesh. Additionally, the textile company has already invested in two more power plants that have already been in production.
The joint venture will acquire 49% of the total paid-up capital of Dynamic Sun Energy. The estimated project cost of the solar plant would be around Tk1,300 crore, the company informed the stock exchange.
According to company sources, the portfolio is being diversified keeping in mind the long-term plans and its future business because the Covid-19 pandemic has shown that it is not possible for a business to survive by relying on just one sector product.
“The business portfolio is being diversified with a long-term plan. Not only this, the investment in the textile sector has also been increased. We have doubled our existing production capacity,” said Md Robiul Islam, company secretary of Paramount Textile.
“There will be a big jump in the company’s revenue and profits in the future so that the shareholders will benefit from the investment,” he added. The company has signed a 20-year agreement with the Bangladesh Power Development Board to supply electricity to the national grid.
US$ 85.45 million investment to increase production capacity
Last year, Paramount Textile invested US$ 85.45 million or more than Tk 700 crore to increase the production capacity and the company’s revenue by US$ 7 million per month, the company said. The new investment also led to addition of knit fabrics unit which has a production capacity of 400 tonnes per month. In addition, Paramount Textile has increased the production capacity of existing units.