Beximco eyes revival with new boards, $23m investment

After years of financial distress, mounting debt, factory closures and management disputes, Beximco Group is seeking a fresh start through board restructuring and efforts to attract new investment to revive its industrial operations.
The removal of Salman F Rahman from the boards of three major listed companies – Beximco Pharmaceuticals, Beximco Limited and Shinepukur Ceramics – marks a significant shift in the conglomerate's management structure.
Meanwhile, British and Chinese investors have proposed investing $23 million to restart Prefix Fashions, a closed garment factory at Beximco Industrial Park in Gazipur. 
If regulatory approvals are secured, production could resume in April next year, initially creating jobs for around 2,500 workers.
The Bangladesh Securities and Exchange Commission (BSEC) approved the reconstitution of Beximco Pharmaceuticals' board in late September, followed by new boards for Beximco Limited and Shinepukur Ceramics on 6 October.
BSEC spokesperson Abul Kalam told the Daily Sun that the decisions were made after considering all relevant factors, including investors' interests.
Salman's brother, A S F Rahman, remains chairman of Beximco Limited and Shinepukur Ceramics.
Mohammad Asad Ullah, company secretary of Beximco's listed companies, said efforts were underway to reopen the group's closed factories, although no final decisions had been made.
Beximco Pharmaceuticals, which remains profitable, has been excluded from the reopening plan, he said.
The initiatives would move forward once approvals were obtained from Bangladesh Bank and other relevant authorities.

$23m investment proposed to revive garment factory
British company Charter HCP Limited and Chinese company Besting Limited have proposed investing $23 million to partially restart Prefix Fashions Limited under a five-year lease or profit-sharing arrangement.
If approved, the factory is expected to resume production in April 2027, initially employing around 2,500 workers.
Jackets would account for 90% of production, with other garments making up the remainder.
The investors project that the factory could generate exports worth around $500 million within two to three years of reaching full production capacity, supported by Besting's international apparel business network.
Under the proposal, outstanding bank loans associated with the factory would be repaid from export earnings.
The initiative requires approval from Invest Bangladesh and Bangladesh Bank. Beximco officials are scheduled to meet the chairman of Invest Bangladesh on 11 October to discuss the proposal.
If successful, the initiative could be extended to another 15 closed units at Beximco Industrial Park, potentially restoring employment for more than 30,000 workers, according to people involved in the plan.

Debt burden exceeds Tk50,000cr
Beximco's revival efforts come against the backdrop of substantial debt.
According to a report submitted by Bangladesh Bank to the court, the group's total loans and liabilities stood at around Tk50,098 crore as of 30 November, 2024, including Tk25,524 crore in classified loans.
Separate reports indicate that loans associated with 32 factories at Beximco Industrial Park totalled around Tk29,925 crore, of which approximately Tk23,285 crore was owed to state-owned Janata Bank.
The heavy debt burden remains a major obstacle to restarting operations and attracting fresh investment.

Beximco Pharma remains profitable
While several of the group's textile and industrial businesses are struggling, Beximco Pharmaceuticals remains profitable.
During the first nine months of FY2025-26, the company's sales rose 13.1% year-on-year to around Tk4,143 crore, while profit after tax increased 34% to approximately Tk705 crore.
Its profit after tax for the entire FY2024-25 stood at around Tk700 crore.
In contrast, Beximco Limited reported revenue of Tk415 crore during July-December 2024 but incurred a net loss of Tk356 crore, with a loss per share of Tk3.78.
The company has since failed to publish updated financial statements, leaving its latest financial position unclear.
According to Dhaka Stock Exchange (DSE) data, Beximco Limited has short-term borrowings of around Tk3,109 crore and long-term borrowings of Tk3,341 crore.
Shinepukur Ceramics has faced similar difficulties. Its latest available financial statements showed a loss per share of Tk1.35 during July-December 2024, while its net asset value per share stood at Tk29.77.
The company has also been unable to publish updated financial statements because of complications surrounding its board.
In July 2026, Bangladesh Bank allowed Shinepukur Ceramics to open letters of credit through Sonali Bank for importing raw materials against a 100% cash margin, enabling it to maintain production.
DSE data shows the company has short-term borrowings of around Tk97.6 crore and long-term borrowings of Tk1 crore.

Board restructuring signals management shift
The BSEC began appointing independent directors to Beximco's listed companies in early 2025, but legal disputes, management deadlocks and delays in publishing financial statements complicated the process.
In January 2026, the regulator issued a separate order concerning board meetings of the group's listed companies.
The newly approved nine-member board of Beximco Pharmaceuticals comprises four independent directors, three Beximco Group representatives, one IFIC Bank representative and the managing director.
The restructuring comes after Beximco's industrial operations plunged into turmoil following the fall of the Awami League government in August 2024.
Salman F Rahman, former private industry and investment adviser to ousted Prime Minister Sheikh Hasina, was arrested that month while allegedly attempting to flee Dhaka through Sadarghat. He has remained in custody since then. Several factories were vandalised or set on fire during the unrest, further disrupting operations and leaving thousands of workers unemployed.

Beximco shares rally on restructuring hopes
Shares of Beximco Limited and Shinepukur Ceramics gained more than 10% over the past two trading sessions on the DSE, buoyed by optimism over the management changes and factory reopening plans.
Beximco Limited's share price rose more than 4% on Wednesday before gaining another 9.76% on Thursday to close at Tk22.50.
Shinepukur Ceramics followed a similar trend, rising around 4.5% on Wednesday and 9.63% on Thursday to close at Tk23.90. Market insiders attributed the rally to renewed investor interest following Salman F Rahman's removal from the companies' boards and reports of efforts to revive the group's industrial operations.