British American Tobacco (BAT) Bangladesh, a leading multinational tobacco company, has announced an investment of Tk 24.90 crore to enhance its packaging operations. The company will install laser printers in 36 Surface Mount Device (SMD) packing lines across its Dhaka and Savar factories to improve efficiency and production capabilities reportedly.
According to a stock exchange disclosure on Tuesday (25 February), the investment will be financed through internal sources and bank funding, leveraging the company’s cash flow. Of the total amount, Tk 14.55 crore will be allocated for purchasing the printers, while Tk 10.35 crore will cover installation costs.
This latest investment follows a Tk 28.38 crore expansion in December last year, demonstrating BAT Bangladesh’s ongoing commitment to strengthening its manufacturing processes.
Following the announcement, the company’s share price edged up by 0.32%, reaching Tk 346.70 on the Dhaka Stock Exchange.
In 2024, BAT Bangladesh declared a 150% final cash dividend for shareholders, bringing the total cash payout for the year to 300%, amounting to Tk 1,620 crore. This includes a 150% interim dividend disbursed in December. The latest dividend distribution marks a significant increase from the 100% cash dividend (Tk 540 crore) paid in 2023.
Despite its aggressive expansion and investment strategy, the company’s profit after tax stood at Tk 1,751 crore in 2024, slightly lower than Tk 1,788 crore in the previous year. Earnings per share (EPS) also declined marginally to Tk 32.42 from Tk 33.11 during the same period.
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BAT Bangladesh operates two manufacturing plants in Dhaka and Savar, along with a green leaf threshing plant in Kushtia and a green leaf re-drying facility in Manikganj.
According to its quarterly financial statement, the company produced 50,305 million sticks of cigarettes and 4.16 million kilograms of tobacco leaf in the first nine months of the past year.
Since 2021, BAT Bangladesh has invested Tk 1,333 crore in its Savar factory to tap into emerging export opportunities. The company’s 2023 annual report highlights Bangladesh’s strategic position in the global tobacco market, citing its cost competitiveness and strong product quality as key advantages.
Drawing parallels with the success of the ready-made garments industry, BAT Bangladesh sees immense potential for the country’s tobacco sector to expand its footprint in international markets, particularly in the export of leaf, cut rag, and cigarettes.
As of 31 January 2025, BAT Bangladesh’s shareholding structure is as follows:
- Sponsors/Directors: 72.91%
- Government: 0.64%
- Institutional Investors: 13.88%
- Foreign Investors: 4.49%
- General Investors: 8.08%
With continuous investments and a focus on expanding both local operations and export potential, BAT Bangladesh remains a key player in the country’s industrial and economic landscape.
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