Bangladesh food

Gemini Sea Food plans to expand into local market

After consolidating its presence in the international frozen food industry, Gemini Sea Food now plans to expand its activities in the local market by raising funds from stock market investors.

The frozen food maker unveiled its plan in a recent regulatory filing.

To meet the growing demand for shrimp in the global market, it also wants to utilize its maximum production capacity of Tk 200 crore per year. During the Covid-19 pandemic, the shrimp sector had suffered severe disruption.

In the seven months to January, shrimp exports jumped 40.24% to $294.94 million from $328.84 million for the full year of 2020- 21.

The company also plans to increase its paid-up capital to over Tk30 crore, from the existing Tk4.70 crore, to comply with the regulatory requirement.

To do this, the company wants to issue free shares and rights shares by the 2025-26 financial year, and will add a new line of frozen products.

She wants to produce chicken nuggets, sausages, meatballs, fishballs, shrimp balls, fish sticks, paratha, french fries, cutlets and other edibles to enter the local market. .

The company informed the Bangladesh Securities Exchange Commission (BSEC), that a specific group of consumers have now started consuming such types of food and have become accustomed to the post-pandemic period.

There is a takeaway lunch market from Tk 2,670 crore to a minimum level of Tk 100 per unit. Even a negligible market share of 5% would generate a turnover of Tk 137 crore per year, the company added.

He added that the average annual growth rate for the two years was around 25%. The company has already hired qualified people for the new segment of the frozen food industry.

This correspondent called the secretary of the company AFM Nazrul Islam but he did not pick up.

Gemini Sea Foods has pioneered the export of certified organic prawns from Bangladesh to EU retailers since 2008. It processes, packs and exports quality raw frozen prawns, cooked prawns and whitefish.

It exports its products to the United States and to EU countries, such as the United Kingdom, Germany, Denmark, the Netherlands, Belgium and Russia.

In the last three months of 2021, the company achieved revenue of Tk 28.34 crore, which is 319% more than a year earlier.

Its net profit amounted to Tk 1.65 crore, compared to a net loss of Tk 1.52 crore in the corresponding period of the previous year.

Its earnings per share rose to Tk 3.51 from a loss of Tk 3.24 a year ago, supported by increased export earnings and low raw material costs, the company said.

The company was listed on the Dhaka Stock Exchange in 1985.

Currently, the frozen food market, a growing industry in Bangladesh, is spreading rapidly amidst the Covid-19 pandemic.

Many well-established companies, as well as young entrepreneurs, are focusing on this sector by investing alongside larger competitors.

In addition to Gemini Sea Food, Golden Harvest, Apex Foods, Pran, AG Foods, Frozen Foods, Kazi Farms, McCain Foods, Royal Frozen, Savar Dairy, Nekkanti Sea Foods, Eurasia Food also play major roles in this industry.