Emerald Oil returns to production after four years

The newly restructured board of directors hopes to overcome the one-off losses and break even within six months, as there is significant demand for its edible rice bran oil, marketed under the Spondon brand.

December 29, 2021, 10:15 p.m.

Last modification: December 29, 2021, 10:36 PM

Infographic: SCT

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Infographic: SCT

Emerald Oil Industries Ltd has resumed production of its edible rice bran oil after a four-year hiatus thanks to a new investment from Minori Bangladesh Limited, a subsidiary of the Japanese agricultural company Minori Co Limited.

The company, which successfully completed a trial, is expected to go into full-fledged commercial production from January, officials said.

The newly restructured board of directors hopes to overcome the one-off losses and break even within six months, as there is significant demand for its edible rice bran oil, marketed under the Spondon brand.

The company halted production in 2017 due to a lack of working capital following its founders’ loan scam, arrest and flight from the country.

To help Emerald Oil recover, Minori Bangladesh Limited is investing around Tk45 crore as working capital, other than looking after the finances and liabilities of the company with Basic Bank and Bank Asia amounting to Tk70 crore in loans which have crossed the Tk100 crore bar with interest.

The Japanese subsidiary will also help Emerald Oil’s potential exports to Japan while serving the local market.

According to the agreement between the two companies, Minori Bangladesh will own 30% of the shares of the directors and sponsors of the company. In addition, Minori has already bought 10% of the shares of Emerald Oil on the capital market.

“There is a massive demand for rice bran oil both in the local market and in the international market. We have already received inquiries from several foreign companies including two Japanese companies and have signed a business deal worth Tk 10 crore with an Indian company ”, one of the new board members of the company told The Business Standard.

Earlier in August, Emerald Oil announced that it would go into full-fledged commercial production from September 1, which was then postponed because it was unable to secure most of the required licenses due to the lockdown.

Emerald Oil, incorporated in 2008, began production of its Spondon-branded rice bran oil in 2011 and went public in 2014. The company raised Tk 20 crore by issuing 2 crore general shares of a nominal value of 10 Tk.

But, in a few years, it collapsed both in its activity and in the stock market as soon as the founder loan scams took place.

In March of this year, Bangladesh Securities and Exchange reconstituted the board of directors of the bankrupt company by appointing five prominent professionals, while a representative of the Bangladesh branch of its Japanese investor Minori also joined the board of administration.


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