Alif Industries, a composite textile manufacturer focusing entirely on exporting knit and woven clothing, plans to acquire Diamond Dredging and Royal Denim, exporters of denim fabric, to grow and diversify.
Following their acquisition, the non-listed private sector businesses will operate under Alif Industries, a publicly listed firm and a subsidiary of the Alif Group.
Situated in the Cumilla Export Processing Zone (EPZ), Royal Denim specialises in producing 100 per cent export-oriented denim fabrics, currently operating with a monthly capacity of 7.50 lakh yards. Conversely, Diamond Dredging engages in dredging operations.
“We have recently obtained the board’s approval to initiate formal discussions with the relevant parties and other stakeholders. While the acquisition deal has not been finalised yet, both parties are eager to proceed,” claimed Md Azimul Islam, managing director of Alif Industries.
“The comprehensive business plan, including the acquisition cost and business feasibility, will be submitted to the board within the next 30 working days. Subsequently, the final decision regarding the acquisition will be made in compliance with relevant laws,” he added.
Alif generated Taka 65 crore in sales and Taka 7.96 crore in profit in the fiscal year 2022–2023. In FY ’23, it gave its shareholders a cash dividend of 17 per cent.
Revenue decreased somewhat to Taka 36.92 crore from July to December of the current fiscal year, but net profit rose to Taka 4.78 crore. Substantial revenue and profit growth are anticipated by Alif Industries following the merger or acquisition with both listed and non-listed firms.
