Skip to main content

Beximco Pharmaceuticals secures a €24.9 million loan

By The Economist

Beximco Pharmaceuticals Limited secured a €24.9 million loan from the German bank ODDO BHF SE to expand its production capacity, enhancing its presence in both local and export markets. According to the company, Beximco Pharma and the German bank signed an agreement in February to secure the loan for purchasing machinery and equipment by 31 December. The loan will primarily be used for replacing and maintaining machinery, with a portion allocated for expanding the company's manufacturing facility.



Additionally, Beximco Pharma has received approval from the Bangladesh Investment Development Authority (BIDA) to obtain the foreign loan.  Despite this disclosure, the company declined to make any official comments on the loan agreement. The company also stated that the loan, which will be paid directly to the machinery and equipment suppliers, has an interest rate of 6-month Euribor (Euro Interbank Offered Rate) plus a 1.3% margin. Repayments will be made in half-yearly installments over five years, starting June 2025.The 6-month Euribor interest rate is the rate at which selected European banks lend each other funds denominated in euros for a maturity of six months.

Previously, Beximco Pharma had obtained a €19.05 million loan from the same bank for business expansion, which was fully paid off in January this year. The company has consistently increased its production capacity, including the installation of a third factory, Unit-3, which began operations in 2021 after an investment of over Tk1,000 crore. Additionally, Beximco Pharma acquired the local operations of multinational drug makers Nuvista Pharma and Synovia Pharma, both now operating as its subsidiaries.

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

The EBL Securities equity note also mentioned that the pharmaceutical industry in Bangladesh is worth Tk31,200 crore as of March 2024, with the top ten pharmaceutical companies holding a 71.6% market share during this period.

Beximco Pharma has consistently ranked third among the top ten pharma companies over the last ten years, holding a 9.6% market share as of March 2024. The company's consolidated net revenue increased 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 time frame compared to the previous year. The company paid a 35% cash dividend to its shareholders for FY23.


Comments

Post a Comment

Popular posts from this blog

About Nasir Group

By The Economist
Nasir Group is one of the largest industrial conglomerates in Bangladesh. The industries include industrial glass, tobacco, printing and packages, light engineering, melamine. It is one of the leading industries in glass manufacturing sector of the country. The company started its journey in 1977. Now this group expands in every industrial sectors of Bangladesh like tobacco, melamine, printing and packaging and footwear. Recently it started producing energy saving light bulbs. Nasir group has a great role in socio-economic development of the country. Dominance in Glass Sector Glass is one of the products of Nasir Group of Industry. Nasir group has a vital role to make Bangladesh self-sufficient in glass sector. This company provides a large portion of glasses to meet country’s demand. Nasir group started float glass production in 2005. The company built its glass manufacturing factory in Gazipur at a cost of Tk.300 crore. Nasir Glass now holds more than 40 percent of the total mark...
Post a Comment
Read more

After Beximco Group, Square Group and Pran Group, PHP Family is coming up

By The Economist
Along with Beximco Group, Square Group, Pran Group, PHP Family is contributing immensely to the economic progress of Bangladesh. Beximco Group and Square Group are the top private sector players but companies like PHP Family are coming up. Sufi Mohammed Mizanur Rahman, an ex banker, established PHP Group which was later re-named as PHS Family. PHP Float Glass is a concern of PHP group and is the pioneer of glass industries in the country. Now PHP float glass industry is the largest glass producer. Ample success in Glass sector along with other indusial sector, PHP group is contributing much to the development of the country. PHP float glass industry limited is Chittagong based sister concern of PHP group. Built on 30-acres of land, with a total investment of Tk 300 crore, the PHP Float Glass Industry at Barabkunda of Sitakunda in Chittagong launched its commercial production in 2005.It produces various types of glass according to local demands. It produces clear-glass sheet of 2MM...
1 comment
Read more

Bangladesh's fashion industry

By The Economist
Fashion is a popular style or practice, especially in clothing, footwear, accessories and makeup. Fashion is a distinctive and often habitual trend in the style in which a person dresses up. Fashion industry is the product of modern age. In the past tailors and dressmakers were undoubtedly responsible for the innovation of fashion and changing fashion as well. Actually fashion depends on taste of people. For this reason fashion varies from region to region.  Before 20th century most of the dresses were handmade. At the beginning of 20th century fashion magazines were more responsible for adopting and changing fashion. But at present media, social network, fashion websites play the most important role for changing fashion. Though the people of Bangladesh have a unique fashion of their own, they also follow the fashion of many countries. For this there is huge opportunity for the fashion industry to grow. As a result, depending on the taste of Bangladeshi people a huge numbe...
1 comment
Read more