Textile Cos fall short at declaring dividend to shareholders
10 Jan '06
1 min read
Textile companies failed to announce dividend for two years in a row and that affected market prices of most of the textile mills shares causing gloom among among investors' fraternity anticipating returns on their investments.
Senior officials of some textile mills were quoted in media saying their company performance was unsatisfactory and they were in no position to declare dividend for their shareholders.
For using capital-demanding modern technology and maintaining global standards, the operating and management costs of the export-oriented industry are comparatively high, commented Syed Naved Husain, Chief Executive Officer (CEO) and Group Director of Beximco Textiles Ltd.
Naved also added that the situation worsened by higher interest rate of bank loan and poor port management.
However, he said the industry would achieve global market share as they were prepared enough to handle any change in fashion trend and offering quality products.
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