Hakkani Pulp and Paper Mills Limited, a well-established company, has been facing losses due to its inability to meet export targets with a loan liability of around Tk 60 crore, fierce competition in the domestic market and failure to capture the market for tissue products. The company has suffered severe losses in the last six months due to hamper of production, marketing and export of goods for coronavirus pandemic.
Even though it is certain that the company will not be able to pay any dividend in the current financial year, the increase in the company’s share price in the stock market is nothing but a gamble, say stock market insiders.
Shares of the company are being sold at Tk 113 on the last working day of the week, which was only Tk 30 a few days ago, and no logical reason can be found for Hakkani’s price hike.
With a paid-up capital of only Tk 19 crore, the two banks have short-term and long-term loans of Tk 34 crore and Tk 24 crore, respectively to Hakkani.
According to the company’s intrim-financial report till March, 2020, the financial loss per share has increased by 0.82 paisa.
Hakkani Pulp & Paper Mills Ltd. is a Bangladesh-based paper manufacturer company. The Company engaged in the manufacture Pulp and Papers of different kinds. The Company’s products include news print paper, writing printing paper and media papers. The Company’s factory is located at Chittagong, Bangladesh.
‘HAKKANI GROUP’ one of the prestigious and experienced industrial groups in Bangladesh today, located in Chittagong. Keeping pace with rapid economical and technological changes followed by the policy of globalization, the group has outspread their business activities within a short period of time and have able to emerge a promoter of an international standard of business house and industrial enterprise of engineering and financial integrity with a group of highly capable and technical personnel and professionals
The industry, which dreamed of earning huge foreign exchange through exports by meeting the demand of the country’s market, is on the verge of collapse. Paper mills are being shut down one after another due to losses. Bankruptcy is the investor. Unemployed are workers.
So far, 59 out of 108 paper mills in the country have been completely shut down. 6 are partially open but on the way to closure. Fifteen paper mills have been able to sustain production in collaboration with other businesses, but the rest are failing. In this situation, the remaining mills are also feared to be closed in a few years.