TBT DESK: Bangladesh’s ongoing power and gas shortages are putting pressure on industrial production, but listed textile company Sharp Industries PLC is managing to keep its operations running at around 60 per cent of daily capacity, with a strong order pipeline offering a potential route to recovery once the energy situation improves.

The company currently produces around 42 tonnes of yarn a day, against an installed capacity of about 70 tonnes across its two production units, which together have around 120,000 spindles.

Company officials say production could rise to nearly 98 per cent of capacity once electricity supplies become more reliable. This means Sharp Industries could substantially increase output and sales using its existing infrastructure, without the need for another major investment.

Sudip Banik, manager of accounts and finance and corporate affairs at Far Group, said prolonged power interruptions remained the company's biggest operational challenge.

“We are not getting electricity for around 12 hours out of every 24. Even when there is no power, we still have to pay workers' salaries and meet other fixed costs. We have been facing this problem for the past year,” he said.

Sharp Industries uses electricity supplied by the Rural Electrification Board alongside a 6MW solar power system. The solar facility generates around 3MW on average for supply to the national grid while also helping the company reduce its electricity costs.

Despite the energy constraints, several market developments are providing some encouragement to the company.

Prices of Sharp Industries' products have risen by around 20 per cent, while pressure from India's anti-dumping measures has eased somewhat. The government has also increased the export incentive from 1 per cent to 5 per cent, according to company officials.

“Our product prices have increased by around 20 per cent. At the same time, the pressure from India's anti-dumping measures has eased somewhat, while the government has increased the export incentive from 1 per cent to 5 per cent,” Banik said.

The company is also benefiting from production difficulties faced by some competitors. With several rival manufacturers unable to accept new orders because of power and gas shortages, Sharp Industries has already secured orders covering the next six months.

For the company, therefore, the immediate challenge is not a lack of demand but the inability to fully utilise its existing production capacity.

A modest improvement in electricity supplies could allow Sharp Industries to fulfil its confirmed orders more quickly while creating room to take on additional business.

Sharp Industries has invested around Tk 100 crore in its second production unit, financed through a combination of term loans and its own funds. The unit began production last year but has yet to operate at full capacity because of the power shortage.

The company is also planning to establish a new recycling plant. Land has already been allocated for the project, although implementation has been delayed amid the current business challenges.

The company's prospects have also attracted considerable attention in the stock market.

According to DSE data, Sharp Industries' share price rose from Tk 17 on June 15 to Tk 44.10 on August 12, a gain of around 156 per cent in less than two months. The price later fell to Tk 37.60 in the latest trading session.

Following the sharp rise in both the share price and trading activity, the DSE sought an explanation from the company on August 11. Sharp Industries said there had been no significant change in its business and no undisclosed price-sensitive information behind the movement.

Sharp Industries was formed through the merger of RN Spinning Mills and Samin Food and Beverage Industries and Textile Mills.

RN Spinning stopped production following a fire in 2019 and had already been reporting losses since the 2018-19 financial year. The High Court approved the merger in December 2022, followed by BSEC approval in October 2023. After the merger process was completed, trading under the Sharp Industries name began on the Dhaka Stock Exchange on October 29, 2024.

The company remains under financial pressure. In the first nine months of FY2025-26, it reported revenue of around Tk 257 crore and a net loss of approximately Tk 65 crore, resulting in a loss per share of Tk 2.16. Its net asset value per share stood at Tk 7.92 at the end of March 2026.

For the January-March quarter, revenue was around Tk 56 crore against a loss of nearly Tk 21 crore. Accumulated losses stood at around Tk 78 crore at the end of March.

Yet the picture is not entirely bleak.

With six months of orders already secured, higher product prices, stronger export incentives and reduced pressure from India's anti-dumping measures, the company sees scope to rebuild its business.

The key will be electricity.

If power supplies improve, Sharp Industries could unlock a large part of its unused capacity without another major capital investment. That would allow it not only to fulfil existing orders but also to capture new business as competitors struggle with production constraints.