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Kalyar Replica plans to raise Tk55 crore from the capital market to expand its business, aiming to meet the growing demand for its products.
The manufacturer, which manufactures flexible packaging products for both local and multinational companies operating in Bangladesh, wants to issue an initial public offering (IPO) under the book-building method.
As part of the IPO process, the firm has signed a corporate advisory and issue management agreement with Bangladesh Finance Capital and MTB Capital.
Rifat Hossain, an assistant general manager of Kalyar Replica, said it manufactures various types of packaging products for the fast-moving consumer goods (FMCG) and pharmaceutical industries.
"As these industries are growing rapidly, the demand for flexible packaging products produced by the company is increasing significantly," he told The Business Standard. "To meet the growing demand, Kalyar Replica has decided to enhance its production capacity. That is why it needs fresh funding, and the management has decided to raise it from the stock market."
Incorporated in 2008, Kalyar Replica is one of the leading converters of flexible packaging, with an annual revenue of around Tk200 crore. Once expanded, revenue and profitability will increase, he added.
Flexible packaging encompasses any package or part of a package whose shape can readily be changed when filled or during use.
Major users of flexible packaging products include the food and beverage, personal care, and pharmaceutical industries.
Mizanur Rahman Sinha, chairman of Kalyar Replica, also owns Acme Laboratories, a listed company.
Currently, Kalyar Replica supplies its products to various companies, including Unilever, Nestle, Ifad, Ispahani, Kohinoor Chemicals, Danish, Banoful, BD Foods, Square, Acme, Square Food & Beverage, Abul Monem, Olympic, Globe, Coca-Cola, HTC, Lalmai, Meridian Foods, Transcom Beverage, DEKKO, Fulkoli, Universal Food, Pepsi, Prome Agro Foods, Vitalac, Pran, 7up, and more.
About the flexible packaging industry
According to industry insiders, the market size of the local flexible packaging industry is around Tk6,000 crore, with an annual growth rate of approximately 20%. The industry employs about 50,000 people and has a local annual demand for 2 lakh tonnes of flexible packaging material, with 80% being met by domestic companies.
Demand for packaged consumer goods was already on a gradual rise as people became more health-conscious, cities grew, and disposable incomes increased. However, with the pandemic hitting, the market for packaged goods has witnessed a significant surge as more and more people opt to buy packaged items over loose ones, further contributing to the growth of the flexible packaging industry.
Flexible packaging makers require polyethylene, polyester, nylon, film foil laminations, and ink as raw materials. Approximately 80% of these raw materials are imported, while local sourcing accounts for 20%. According to manufacturers, they import these items from China, Korea, Thailand, Singapore, and European countries.
The Business Standard
