Shasha Denims Limited plans to invest an estimated Tk 155 crore to expand its production capacity in the Dhaka Export Processing Zone, according to the company.

In a filing on the Dhaka Stock Exchange yesterday, the manufacturer said the board has decided to expand the production capacity by installing 105 loom machines in its plots at the DEPZ.

The estimated investments would be Tk 155 crore, Aslam Ahmed Khan, company secretary of Shasha Denims, told The Daily Star.

Shasha Denims also plans to invest in GA Garments Ltd, where directors have a common interest.

So, the board of directors has decided to hold an extraordinary general meeting to take shareholders' approval for the investment in the new company.

The investment in shares of GA Garments will be made in exchange of assets of Shasha Denims under a vendor's agreement. The remaining amount will be paid through bank transfer, said the filing.

According to Khan, Shasha Garments consumes 10 to 15 per cent of denim products manufactured by Shasha Denims and the rest is sold to other companies.

If GA Garments buys products from Shasha Denims, it would be beneficial for both parties, he said.