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Alif Industries to acquire two private sector businesses


Alif Industries, a composite textile company specialising in 100 per cent export-oriented knit and woven garments, has set forth an ambitious plan to acquire Royal Denim, a leading denim fabric exporter, and Diamond Dredging, aiming to expand its capacity and diversify its business portfolio.

Located in the Cumilla Export Processing Zone (EPZ), Royal Denim is renowned for its production of 100 per cent export-oriented denim fabrics, boasting a monthly capacity of 7.50 lakh yards. Meanwhile, Diamond Dredging engages in dredging activities.

Upon acquisition, these non-listed private sector businesses will operate under Alif Industries, a publicly listed firm and a subsidiary of the Alif Group. The objective behind these strategic acquisitions is to achieve vertical integration, strengthen market position, diversify product offerings, and increase value addition by up to 90 per cent.

Alif Industries is already in the process of merging two publicly listed entities; Alif Manufacturing Company, which produces cotton yarn of various counts, and C&A Textile, engaged in knitting, dyeing, printing, and manufacturing various types of ready-made garments. This amalgamation aims to create a fully integrated garment manufacturer, with all processes from knitting to garmenting being carried out in-house, except for raw cotton imports and accessory purchases.

Md Azimul Islam, Managing Director, Alif Industries, emphasised that achieving total vertical integration in woven denim fabrics through the acquisition of Royal Denim would significantly enhance the company's capabilities. This integration would facilitate the production of denim wear for export markets with a remarkable 90 per cent value addition.

The move towards vertical integration is not only aimed at increasing efficiency but also at mitigating challenges arising from the current dollar crisis in the market.

In terms of financial performance, Alif Industries reported revenue of Tk65 crore and a profit of Tk7.96 crore for the fiscal year 2022-23. It distributed a 17 per cent cash dividend to its shareholders for the fiscal year. Despite a slight decline in revenue to Tk36.92 crore in the July-December period of the current fiscal year, net profit increased to Tk4.78 crore.



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