BD Thai Food will produce the products of the two companies on a contractual basis

BD Thai Food and Beverage, listed on the stock market, will produce the products of the two companies based on the contract. For this purpose, BD Thai Food has reached two separate contract manufacturing agreements with Sajeev Group and Evergreen Beverage Limited. The board of BD Thai Food said that if the full utilization of the production capacity can be ensured, the profit of the company will increase.

On Monday (June 8), Dhaka Stock Exchange (DSE) said this information.

According to the information, under the contract Sajeev Group will manufacture its 'Wings' brand of carbonated soft drinks and Evergreen Beverages 'Suncrest' brand of carbonated soft drinks at BD Thai Food's plant. For this, the two companies will pay production charges to BD Thai Food as per the contract. Proceeds from the contract produce will be used to cover BD Thai Food's factory utility costs, employee salaries and wages, factory overhead and finance costs.

The company said the two contracts will result in 70 percent capacity utilization of its soft drink production line. The remaining 30 percent capacity will be used to produce the company's own 'Nectar' brand products. As a result, the factory's CSD production line will operate at 100% capacity.

The board of directors expects that by ensuring full utilization of production capacity, the company's revenue and profits will increase. At the same time, the interests of shareholders and other stakeholders will be better protected.