Despite the ongoing gas and electricity supply challenges affecting industrial production across the country, listed textile company Sharp Industries PLC continues to maintain operations and produce yarn, utilising around 60% of its daily production capacity.
The company is making continued efforts to sustain production amid the prevailing energy constraints, demonstrating resilience and operational continuity in a challenging business environment.
Sharp Industries has a yarn production capacity of around 70 tonnes a day, while its current output stands at approximately 42 tonnes. The company operates around 120,000 spindles across its two manufacturing units.
Company officials said production could increase to around 98% of capacity if electricity supply becomes stable, indicating significant scope for higher output as power availability improves.
The company receives electricity from the Rural Electrification Board (REB) and also operates a 6MW solar power system. On average, around 3MW of electricity generated by the solar system is also supplied to the national grid, while the renewable power helps the company offset part of its electricity costs.
Sudip Banik, manager of Accounts and Finance and Corporate Affairs at Sharp Industries, told The Business Standard that the company has been experiencing prolonged power interruptions.
“We are not getting electricity for around 12 hours out of every 24 hours. Even during power outages, we still have to pay workers’ salaries and bear other fixed costs. We have been facing this problem since last year,” he said.
Sudip Banik, manager, Accounts and Finance and Corporate Affairs at Sharp Industries, told The Business Standard that the company is currently facing prolonged power interruptions.
“We are not getting electricity for around 12 hours out of every 24 hours. Even when there is no electricity, we still have to pay workers’ salaries and bear other fixed costs. We have been facing this problem for the past year,” he said.
Higher production could unlock business opportunities
Despite the electricity crisis, market conditions have become somewhat more favourable for Sharp Industries. Prices of its products have increased by around 20%, while pressure from India’s anti-dumping measures has eased to some extent. Meanwhile, the government has raised the export incentive from 1% to 5%.
Banik said, “Our product prices have increased by around 20%. At the same time, pressure from India’s anti-dumping measures has eased somewhat. The government has also increased the export incentive from 1% to 5%. If there is even some improvement in the electricity situation, our business could increase significantly.”
The company is also benefiting from increased orders, as some competitors are unable to accept new orders due to gas and electricity shortages. Sharp Industries currently has orders secured for the next six months, according to the company.
As a result, the company’s key challenge is currently not a lack of market demand but its ability to utilise its production capacity. An improvement in electricity supply could allow Sharp Industries to fulfil its existing orders while increasing production and sales.
Tk100cr invested in second unit
To expand its production capacity, Sharp Industries invested around Tk100 crore in its second manufacturing unit, financed through a combination of term loans and the company’s own funds. The unit began production last year.
However, the company has yet to fully utilise the new unit’s capacity due to electricity shortages. An improvement in power supply would enable Sharp Industries to increase production using its existing infrastructure, without requiring significant fresh investment.
The company also plans to establish a new recycling plant as part of its efforts to expand the business. Land has already been allocated for the project, but implementation has been delayed due to the company’s ongoing business challenges.
Recovery efforts after merger
Sharp Industries was formed through the merger of RN Spinning Mills and Samin Food and Beverage Industries and Textile Mills. RN Spinning suspended operations following a fire in 2019 and had reported continuous losses since fiscal year 2018-19.
The High Court approved the merger in December 2022, while the Bangladesh Securities and Exchange Commission (BSEC) gave its consent in October 2023. Following completion of the merger process, the company began trading on the Dhaka Stock Exchange under the name Sharp Industries on 29 October 2024.
The merger created an opportunity for the company to revive operations and expand its business. However, Sharp Industries continues to face challenges from RN Spinning’s legacy losses as well as the ongoing electricity supply crisis.
Financial pressure remains
During the first nine months of fiscal year 2025-26, Sharp Industries reported revenue of Tk257 crore and a net loss of Tk65 crore. Its loss per share stood at Tk2.16, while its net asset value per share was Tk7.92 as of March 2026.
In the January-March quarter, the company generated around Tk56 crore in revenue but incurred a loss of approximately Tk21 crore. Its accumulated losses stood at around Tk78 crore at the end of March.
Despite the financial pressure, several factors are working in the company’s favour, including six months of confirmed orders, higher product prices, increased export incentives and reduced pressure from India’s anti-dumping measures.
Sharp Industries expects an improvement in electricity supply to help it increase production and capitalise on these favourable market conditions. While the power crisis remains a major operational challenge, reduced production at competing factories has also created an opportunity for the company to secure additional orders and expand its business.
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