BM Desk : In a report to the Dhaka Stock Exchange (DSE), Rahima Food Corporation, a City Group company, said that it had halted operations at its coconut oil production facility.
Until further notice, the suspension will be in force. The company’s share price fell 1.87% after the announcement, ending at Tk83.80 today (2 July).

Rahima Food’s chief financial officer, Shahidur Rahman, told The Business Standard that the company’s facility has a sizable inventory of unsold coconut oil because demand for it has decreased recently. “The management has chosen to cease the plant’s operations as a result of this,” he stated.

He went on to say that processing cashew nuts continues to be the company’s major activity, with coconut oil making up a very small portion of total sales. “Therefore, the company’s overall performance is not projected to be considerably impacted by the shutdown of the coconut oil factory.”

Sales of cashew nuts brought in nearly Tk5 crore for Rahima Food in the first nine months of FY25, but sales of coconut oil brought in only Tk19 lakh. However, during the July–March period, the company’s net profit decreased 69% to Tk0.51 crore, while its overall sales decreased 49% year over year to Tk5.71 crore.

Rahima Food, a private limited business founded in 1990, went public in 1997 and was listed under the food and related industries. Tk20 crore is the company’s paid-up capital.
However, because of the company’s extended inactivity, the DSE delisted its shares on July 19, 2018. City Sugar Industries, a division of the City Group conglomerate, purchased the sponsor shares in fiscal year 2016–17 with the intention of reviving the company. Rahima Food was then relisted in 2020 on the DSE.