British American Tobacco Bangladesh Company (BATBC), one of the country’s largest multinational companies, is moving its factory from Mohakhali in the capital to Ashulia in Savar after almost 60 years. From July 1, this factory in Ashulia will be BATBC’s main production center. The company has informed that the Ashulia factory has so far produced products for export on a limited scale. From now on, almost all types of cigarettes will be produced here for the local and global markets.
As part of this change, the company has decided to invest about Tk 297 crore to increase the production capacity of the factory. Part of this money will be raised from the company’s own funds and the rest through bank loans. The decision in this regard was taken at the company’s board of directors meeting last Wednesday.
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In addition, the registered address of BATBC has also been shifted from the New DOHS area of Mohakhali to the Balibhadra Bazar area of Dhamsona Union, Ashulia, Savar. The company’s operations will officially start at the new address from July 1. On the same day, all operations at the factory in Mohakhali will be permanently closed. According to the information, the factory, the company’s corporate head office is also being shifted to Savar.
Historical Background and Environmental Controversy
It is worth noting that BATBC’s second factory was established in the Mohakhali DOHS area in 1965. Earlier, the company’s first factory was opened in Faujdarhat, Chittagong in 1949. The Mohakhali factory was established on leased land in a residential area. The lease period was 30 years, which was renewable up to a maximum of 90 years. However, environmentalists had been demanding the removal of industrial plants from residential areas for a long time.
In this context, BATBC applied to the authorities for renewal of the lease. But when the application was rejected, the company went into legal battle. Finally, on May 28, the Appellate Division of the Supreme Court dismissed the appeal filed by the company. Then on June 19, BATBC officially announced the decision to relocate its operations.
BATBC’s position in the stock market and financial success
BATBC was listed on the Dhaka Stock Exchange (DSE) in 1977. It is currently one of the top domestic and foreign companies listed on the stock market. Last Thursday, BATBC was in the list of top 10 traded companies. That day, the company’s share price increased by 7 taka 70 paisa or about 3 percent to 280 taka. On the same day, a total of 8.25 crore taka was traded on about 3 lakh shares.
In the 2024 fiscal year, the company has declared a 300 percent cash dividend for investors. That is, investors received a profit of 30 taka per share. According to the company’s latest financial report, in the first quarter of 2025 (January-March), BATBC’s total business was about 9,600 crore taka, of which the net profit was 318 crore taka. At the end of 2024, the company’s annual net profit was 1,751 crore taka.
Source: Prothom Alo
