Quasem Industries to export artificial quartz products

|| Published: 2020-02-25 14:54:03 || Updated: 2020-02-25 14:54:03

The company hopes to generate a revenue of Tk223.56 crore in the first year

The maker of ”Sunlite” battery, Quasem Industries Ltd, will export artificial quartz products to the USA.

The company will set up a factory for this venture at a cost of Tk92 crore by June 2021.

Company officials said they signed an agreement last week with the US-based Sunstone International LLC to export artificial quartz products.

Sunstone will buy products from Quasem, according to the agreement. However, a Google search did not show any results for the company.

Quasem will build the new unit to produce artificial quartz next to its existing factory in Tangail.

Of the construction cost, Tk30 crore will be financed from Quasem’s funds and Tk29.36 crore from banks, while Tk29 crore will be borrowed from the market as suppliers credit.

The company hopes the sale of artificial quartz products will generate a revenue of Tk223.56 crore in the first year, and they expect the net profit to be Tk17.45 crore.

Quasem’s Chief Financial Officer Md Zakaria told sunbd that apart from exporting artificial quartz products, the company also plans to sell it in the local market. ”Under the agreement with the US company, we will get the return on our investment within the next three years.”

Asked if the US company exists, Zakaria said, “Discussion between our directors and the company have been going on for a year. The company officials also visited our office several times.”

Quasem, a company that is listed in the stock market, is now selling consumer products under the name ”Sun” in addition to batteries. It also sells air fresheners and deodorants, under the brand name ”Wave”.

Mineral quartz products are super-expensive. So there is a global demand for artificial quartz. Different products – such as tiles, glass, and optical items – are made of quartz.

The global market size of quartz products was $9 billion in 2019, according to Allied Market Research. Every year, the market is growing at a rate of 4-5 percent where China is a significant player.

Quasem will also start manufacturing aerosols and shaving foam in its factory under the name ”Wave”. The company will invest Tk4 crore in the project.

In the 2018-19 fiscal year, the company gave a 7 percent stock dividend and a 5 percent cash dividend to its shareholders.

In the last fiscal year, Quasem made a net profit of Tk5 crore, and its earnings per share (EPS) was Tk0.83. During the 2017-18 fiscal year, its EPS was Tk1.35.

In the first half of the current fiscal year, the company’s EPS was Tk0.63.

The paid-up capital of the company, which was listed in the capital market in 1989, is Tk62.96 crore, while its reserve money is Tk112.51 crore.

Of the company’s total shares, sponsors and directors hold 30 percent, institutional investors 24.55 percent, and general investors 45.45 percent.

At the close of Tuesday’s trading session at the Dhaka Stock Exchange, Quasem’s share price was Tk44.90.

In the last one year, the highest price of the company’s share was Tk48.20, and the lowest was Tk24.

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