Mohammad Ali
Appollo Ispat Complex Limited, one of the largest CI sheet manufacturers of the country expects good response from the general investors when the company begins its IPO subscription early next month.
"We expect that the people's response to the Appollo Ispat's IPO will be very good. We also hope to declare good dividend as our new NOF-Plant, to be financed by the IPO proceeds, will increase its production by 25 per cent and decrease the cost by 20 per cent," Deen Mohammad, chairman of Appollo Ispat, told the FE in an interview recently.
"The more the company will produce its product, the more it will earn profit. If gas and electricity are supplied as per demand, the company will obviously make good profit Insha Allah, and we can declare good dividend," Mr Deen Mohammad said.
Appollo Ispat will raise a total of Taka 2,200,000,000 by floating 100,000,000 number of shares at a price of Tk. 22 per share which includes a premium of Taka 12.
"A number of our Group companies such as City Bank and insurance companies have already gone public, and we are giving good dividends. I want to give all our companies to the public gradually," Mr Deen Mohammad, also chairman of Phoenix Group, said.
Due to the increased demand of NOF products, Appollo intends to establish NOF based Galvanizing Plant at its existing plant site where required land area has been purchased there. This will make Appollo's product more popular in the market. It will be an environmental friendly project.
Further added by 40,000 MT by the upcoming RTF Technology based NOF C.I. Sheet manufacturing facility by mid of 2014 Appollo is confident to further increase its market share. The technology and plant & machinery for expansion (NOF) project will be brought from Esmech India Ltd. which is a joint venture company with SMS Germany. Since the NOF project will be based on the technology of SMS Germany who are well prominent strip processing solution, the product quality will be certainly better than existing mills in Bangladesh as their production technology are mostly based on Indian technology. One very important factor associated with RTF based NOF project is that, the NOF (Non Oxide Furnace) is technologically designed for producing environment friendly products since in this system there will be no use of acid or lead. Due improved shininess and product quality consumers are now more and more shifting from conventional Galvanized product to NOF Products.
In view of the increasing demand of steel products in Bangladesh Appollo has a plan to include the Colour Coating Sheet in its existing product line which is becoming popular all over the country and has good potentials for export to southeast Asian countries. For this purpose a modern Colour Coating plant & equipments will be incorporated in future to be installed in the existing plant site which will be capable of manufacturing high quality corrugated steel sheets of Flat & Round wave and also Colour Quoted Flat Sheets.
To meet the export demand, if future Appollo has also plan to install the 2nd line of CRM. Since 90% of the Civil Works were completed during the installation of 1st CRM Line the 2nd line can be installed at a comparatively minimal time & cost.
To improve the product quality and the production capacity, Appollo intends to install one set of Annealing Line which will facilitate the existing manufacturing system to horizontally diversify its existing product line.
In order to minimize the production cost and achieve economy of scale Appollo intends to establish one Power Generation Plant which will facilitate uninterrupted power supply at a comparatively low cost in comparison to the present source. The intended size of the Power Plant project is 25 MW while company's own consumption is around 15 MW and the balance power will be sold to the National Grid which is very much viable from economic point of view.
NOFs are rapid heating furnaces that cut out hydrochloric acid and lead usage during the galvanizing process, producing a durable CI sheet with a lifespan of over 5 years. Eliminating lead and acid usage during the final stages of production also makes the process cost effective and environmentally friendly. Furthermore, these products tend to be shinier than ordinary CI sheets - therefore can command a premium price over regular CI sheets.
A budget of Taka 110 crores has been made for the installation of a high grade Non Oxidizing Furnace (NOF) to increase existing production capacity. Required machinery has already been imported, the civil and other project works are in progress.
Appollo
is pioneering the CI sheet business in Bangladesh since 1997.
Previously the promoters of Appollo Ispat started the C.I. Sheet
business with the trading and then importing finished CI sheets during
sixties. In 1987 Appollo began its own manufacturing facility with a
sheet-to-sheet CGI line In the name of Appollo Steel Mills Ltd. In 1993
Appollo expanded the facilities into the second line. In 1997 the
company established most modern and sophisticated Continuous Galvanizing
Line (CGL) which was first of its kind in Bangladesh. The new
manufacturing plant with complete modern technology was incepted and the
new name of the journey was Appollo Ispat Complex Limited.
Appollo Ispat Complex Limited, one of the largest CI sheet manufacturers of the country expects good response from the general investors when the company begins its IPO subscription early next month.
"We expect that the people's response to the Appollo Ispat's IPO will be very good. We also hope to declare good dividend as our new NOF-Plant, to be financed by the IPO proceeds, will increase its production by 25 per cent and decrease the cost by 20 per cent," Deen Mohammad, chairman of Appollo Ispat, told the FE in an interview recently.
"The more the company will produce its product, the more it will earn profit. If gas and electricity are supplied as per demand, the company will obviously make good profit Insha Allah, and we can declare good dividend," Mr Deen Mohammad said.
Appollo Ispat will raise a total of Taka 2,200,000,000 by floating 100,000,000 number of shares at a price of Tk. 22 per share which includes a premium of Taka 12.
"A number of our Group companies such as City Bank and insurance companies have already gone public, and we are giving good dividends. I want to give all our companies to the public gradually," Mr Deen Mohammad, also chairman of Phoenix Group, said.
Due to the increased demand of NOF products, Appollo intends to establish NOF based Galvanizing Plant at its existing plant site where required land area has been purchased there. This will make Appollo's product more popular in the market. It will be an environmental friendly project.
Further added by 40,000 MT by the upcoming RTF Technology based NOF C.I. Sheet manufacturing facility by mid of 2014 Appollo is confident to further increase its market share. The technology and plant & machinery for expansion (NOF) project will be brought from Esmech India Ltd. which is a joint venture company with SMS Germany. Since the NOF project will be based on the technology of SMS Germany who are well prominent strip processing solution, the product quality will be certainly better than existing mills in Bangladesh as their production technology are mostly based on Indian technology. One very important factor associated with RTF based NOF project is that, the NOF (Non Oxide Furnace) is technologically designed for producing environment friendly products since in this system there will be no use of acid or lead. Due improved shininess and product quality consumers are now more and more shifting from conventional Galvanized product to NOF Products.
In view of the increasing demand of steel products in Bangladesh Appollo has a plan to include the Colour Coating Sheet in its existing product line which is becoming popular all over the country and has good potentials for export to southeast Asian countries. For this purpose a modern Colour Coating plant & equipments will be incorporated in future to be installed in the existing plant site which will be capable of manufacturing high quality corrugated steel sheets of Flat & Round wave and also Colour Quoted Flat Sheets.
To meet the export demand, if future Appollo has also plan to install the 2nd line of CRM. Since 90% of the Civil Works were completed during the installation of 1st CRM Line the 2nd line can be installed at a comparatively minimal time & cost.
To improve the product quality and the production capacity, Appollo intends to install one set of Annealing Line which will facilitate the existing manufacturing system to horizontally diversify its existing product line.
In order to minimize the production cost and achieve economy of scale Appollo intends to establish one Power Generation Plant which will facilitate uninterrupted power supply at a comparatively low cost in comparison to the present source. The intended size of the Power Plant project is 25 MW while company's own consumption is around 15 MW and the balance power will be sold to the National Grid which is very much viable from economic point of view.
NOFs are rapid heating furnaces that cut out hydrochloric acid and lead usage during the galvanizing process, producing a durable CI sheet with a lifespan of over 5 years. Eliminating lead and acid usage during the final stages of production also makes the process cost effective and environmentally friendly. Furthermore, these products tend to be shinier than ordinary CI sheets - therefore can command a premium price over regular CI sheets.
A budget of Taka 110 crores has been made for the installation of a high grade Non Oxidizing Furnace (NOF) to increase existing production capacity. Required machinery has already been imported, the civil and other project works are in progress.
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