http://www.thedailystar.net/story.php?nid=59756
Golden Son expands with garment accessories
Sarwar A Chowdhury
Golden Son, a listed engineering company, has set up a garment accessories manufacturing unit as part of a plan to expand business into the import-dominated market.
The Bangladesh-Taiwan joint venture manufactures fabric belt, elastic, ribbon and twill tape that the ready-made garment producers import from other countries, including China.
“There is hardly any local entity of such accessories manufacturing unit. All these items are import-based and it’s a several thousands crore taka market. Therefore, I take the opportunity,” said Managing Director of Golden Son Belal Ahmed, who also eyes to make a Tk 50 crore turnover only from Chittagong market by this year.
Presently, the company is producing the garment accessories in a limited quantity in the new factory, as it needs a huge investment to go into full swing production.
Chittagong-based Pacific Jeans is the customer of Golden Son’s garment accessories. “We have also received orders from India. But, it will be very tough for us to maintain the orders without further enhancement of production capacity,” Belal said.
Initially the new unit was set up with technical assistance from a Taiwanese company on a profit or loss share basis. Golden Son will enjoy 60 percent profit or loss, while the Taiwanese company will enjoy the rest 40 percent.
Golden Son and People Trust Machinery Group of Taiwan recently signed an agreement to set up the unit. Under the agreement, Taiwanese company provided machinery worth US$ 55,000 to the local company, while the latter provided land, infrastructure and power facilities.
“In addition, we have also imported machinery worth $ 70,000 for the new project,” he said, adding that a Tk 20-Tk 30 crore further investment is needed to complete the new factory to utilise its full capacity of production.
The Investment Corporation of Bangladesh has recently granted Tk 3 crore loan to the Chittagong-based Golden Son to meet a portion of the firm’s investment requirement, Belal said.
“After receiving the money, we will further import machinery worth $ 1 lakh,” the top official of Golden Son said, expressing his hope to compete with China, a major exporter of garment accessories to Bangladesh.
Golden Son has decided to issue the borrowed money from the ICB as debenture, which is subject to approval by the Securities and Exchange Commission.
Meanwhile, the company, also a manufacturer of non-electrical cooker, hotpot, food warmer, toys, and fan and accessories, has already entered into an agreement with an Australian company for exporting one of its products to Australian and New Zealand markets.
Under the deal, Green Brothers (Wholesale) PTY Ltd of Australia will purchase at least a container of non-electrical cooker per month up to 2015 from Golden Son.
Each container will contain products worth $ 55,000 to $ 60,000.
Presently, the Golden Son, which was listed on the stock market in 2007, is exporting its products to Taiwan, the United Kingdom, Canada, South Africa and Singapore.
The existing authorised capital of the company is Tk 50 crore and paid up capital is Tk 25 crore.
