Maksons Spinning Mills to set up Knitwear Factory by Next Year

Maksons Spinning Mills Limited, which produces cotton-combed and carded yarn, will set up a knitwear factory by next year with a view to using its backward linkage industry’s products in forward linkages.

‘By early next year, a knitwear factory will be set up on the premises of Maksons Spinning Mills as we want to use our backward linkage industry’s products in our forward linkages,’ said Mohammad Ali Khokon, managing director of the Maksons Group.

He said, ‘Presently our turnover is around $20 million and our target is to increase it to $22 million by next one year.’

Maksons Spinning, which started commercial operation in May 2006, is equipped with state-of-the-art machinery imported from Switzerland, Germany, Japan, China, Spain, India, USA, Italy, France and Taiwan, he said.

He said the country’s 100 per cent export-oriented readymade garment and knitwear makers are the customers of Maksons Spinning, which was set up on a about 12 acres of land at Ashulia of Savar, on the outskirts of Dhaka.

Maksons Spinning was installed with a production capacity of 91,60,000 kilograms of cotton-combed and carded yarn annually. But, currently it produces 20000 kilograms of yarn per day using 45,000 spindle spinning units.

It imports raw cotton from the Commonwealth of Independent States.

The authorised capital of the company is Tk 50 crore, while its paid-up capital is Tk 34 crore as of April 26, 2008.

The company made net profit after provision for tax of Tk 0.96 crore as of December 12, 2007. Its earning per share stood at Tk 10.69 as of December 31, 2007.

The company is the first in the textile sector of the country’s stock market to raise fund in the last six years followed by Metro Spinning Mills, another member company of the Group, in 2002.

The subscription for initial public offers of Maksons Spinning started on October 13 and closed on October 16. However, it closes on October 25 for non-resident Bangladeshis.

Maksons Spinning, which was incorporated as a public limited company in September 2003, is floating 80 lakh primary shares of Tk 10 each to raise Tk 8 crore from public.

The raised fund from IPO will be used for the company’s loan repayment to the Southeast Bank Limited.

Currently, 39 textile-related firms are listed with the Dhaka Stock Exchange.

Khokon said the total workforce of Maksons Spinning was over 1,000.

The other subsidiaries of Maksons Group are Metro Spinning Ltd, Maksons Jute Mills Ltd, Maksons Knit and Rotor Spinning Mills Ltd, Maksons Properties and Developments Ltd, Makcot International and Mak Fashion Ltd.