Olympic Industries has announced plans to install rooftop solar power plants at three of its factories to support manufacturing with clean energy amid global fuel supply disruptions triggered by the escalating Iran-Israel war.
The branded biscuit manufacturer has signed an agreement with Solaric Ltd for engineering, procurement and construction (EPC) of a solar power system with an installed capacity of more than 1,000 kilowatt-peak (kWp) at its Madanpur, Kutubpur and Lolati factories.
The project cost is estimated at Tk 41.51 million, which will come from the company’s own funds.
The board’s decision to adopt solar power aims to reduce dependence on conventional grid electricity, cut carbon emissions and contribute to a cleaner energy mix, said company secretary Mintu Kumar Das.
The project cost includes letter of credit prices for imported equipment along with local EPC expenses, he said. The rooftop solar plants are expected to improve energy efficiency and operational reliability at the company’s manufacturing facilities while supporting global climate goals and Bangladesh’s commitment to expanding renewable energy capacity, Mr Das added.
Growing shift towards renewable energy
Analysts say the initiative reflects a growing trend among industrial firms in Bangladesh to adopt renewable energy solutions in response to energy scarcity and rising costs.
Akramul Alam, head of research at brokerage firm Royal Capital, said installing rooftop solar systems would help Olympic Industries reduce energy costs, ultimately lowering production expenses.
“Renewable energy is the fastest and most cost-competitive path to long-term energy security and protects businesses from price volatility and supply disruptions,” he added.
The move comes amid heightened tensions in the Middle East following Iran’s closure of the Strait of Hormuz, a vital oil shipping route. The disruption has pushed global oil and gas prices sharply higher, raising concerns about uninterrupted electricity generation.
Crude oil prices have
jumped more than 54 per cent to $103 per barrel since the Middle East conflict began on February 28, according to international market data.
Bangladesh remains heavily dependent on energy imports from Middle Eastern suppliers, including Saudi Arabia, the United Arab Emirates and Qatar, making the country particularly vulnerable to disruptions in the Gulf region.
Higher prices for liquefied natural gas (LNG) and fuel oil could significantly raise electricity generation costs, potentially affecting industrial output and export competitiveness – especially in energy-intensive sectors.
As of FY25, roughly 70 per cent of Bangladesh’s domestic energy demand is met by imported fossil fuels, including LNG, coal and oil, according to the Institute for Energy Economics and Financial Analysis.
Renewable energy currently contributes only 3-4 per cent of Bangladesh’s energy mix, according to media reports.
Meanwhile, the government has adopted the Renewable Energy Policy 2025, targeting 20 per cent renewable energy by 2030 and 30 per cent by 2040.
Industry experts say rooftop solar offers a practical starting point for diversifying energy sources, as large rooftop spaces on factories, residential buildings and commercial complexes remain mostly unused.
Global media reports that world energy markets currently face one of the gravest shocks in decades following US-Israel strikes on Iran and subsequent retaliatory missile attacks from Tehran across the Gulf, disrupting oil exports from the world’s most important producing region.
Industry analysts have drawn parallels with past energy crises, such as the 1970s oil shocks and Russia’s invasion of Ukraine in 2022, highlighting the risks of dependence on imported fossil fuels.
Experts say renewable energy could provide a long-term solution to such recurring crises.
By investing in solar infrastructure, Olympic Industries is demonstrating how industrial enterprises can strengthen climate resilience while improving energy efficiency.
Machinery import for carton plant
The board of directors of Olympic Industries has also approved the import of new capital machinery to expand its corrugated carton production capacity.
The company will import 10 sets of brand-new machinery for its single carton-making production plant from Hebei Shengli Paper Chest Equipment Manufacturing Co. Ltd.
The total cost of the equipment, including freight charges, is $1.52 million, equivalent to about Tk 186.73 million.
The machinery will be installed and commissioned at the company’s Kutubpur factory in Sonargaon.
Strong business performance
Olympic Industries reported its highest-ever quarterly profit of Tk 625 million for the second quarter of FY26, supported by higher sales and ongoing capacity expansion.
Last year, the company invested Tk 500 million to expand its production capacity through financing from the Japan International Cooperation Agency under the Food Value Chain Improvement Project.
The investment enabled the installation of a multi-functional chocolate plant and a new cookie production line.
Over the past six years, Olympic Industries has invested more than Tk 4 billion in factory expansion to diversify operations and strengthen its presence in the confectionery market.
The company is widely regarded as one of the best-performing blue-chip stocks. Foreign investors held a 30.26 per cent stake in the company as of February this year – the second-highest foreign ownership among listed securities.
https://today.thefinancialexpress.com.bd/stock-corporate/olympic-turns-to-solar-power-as-country-strides-to-secure-energy-supply-1773598412
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