The uprising in Bangladesh that ousted its five-term Prime Minister Sheikh Hasina from power has resulted in a state of despair for Indian multinational companies.
As the neighbouring country that shares borders with India on all three sides, is in a state of political uncertainty, businesses from India are scrambling to keep their houses in order.
Take personal care major Marico, for instance. The Mumbai-headquartered company has a major presence in Bangladesh with its hair-care portfolio dominating the market.
It is one of the top three fast moving consumer goods MNCs in the country. Apart from its flagship hair-care brands Nihar and Parachute, Marico makes its presence felt in the market with Livon, men's hair-care brand Beardo and edible oil brand Saffola Active.
While its FY2024 numbers are yet to be revealed, in FY2023 Marico raked in Bangladeshi Taka 1,413.6 crore or Rs 1,011.5 crore. That was 8.5% higher than its Taka 1,303 crore (or Rs 940 crore) revenue in Bangladesh in FY2022.
For Marico, Bangladesh market is not just crucial in terms of its top-line, but highly profitability of the venture also puts it in an important position in the company's portfolio. In FY2023, Marico Bangladesh Ltd - the local subsidiary of the Mumbai-based corporation - reported a net profit of Taka 387.2 crore (or Rs 275 crore), which kept its net profit margin at 27.4%. In comparison, Marico's consolidated net profit margin was at 15.77%.
Incorporated in 1999, Marico Bangladesh is also listed in two stock exchanges - Dhaka and Chittagong Stock Exchange since 2009. It also manufactures its products in the country. Started bottling at Mouchak, near Gazipur in 2002 and copra crushing manufacturing in Mahona, Bhavanipur in 2012.
In fact, the company's long presence in the market Marico has significant assets in Bangladesh. As per its annual report, Marico Bangladesh has Rs 167 crore worth of non-current assets as of 31 March 2023, while its current assets stood at Rs 997 crore - taking its total assets in Bangladesh to Rs 1,164 crore.
Another Indian consumer goods MNC Adani Group has presence in Bangladesh. In partnership with Singapore-based Wilmar International Ltd., Indian billionaire Gautam Adani-led Adani Group operates in Bangladesh through Bangladesh Edible Oil Ltd (BOEL) and sells edible oil in the country.
BOEL is one of the leading players in the neighbouring country's burgeoning branded edible oil market. The Dhaka-based entity markets popular brands like Rupchanda and Meizen, and sells 30,700 tonnes of palm oil every year.
According a to recent report by Roundtable on Sustainable Palm Oil, "BEOL was established in 1993 and has since been aggressive in the marketing of consumer pack edible oil under the well-known household brands".
Earlier focused on its mustard oil brand Rupchanda and palm oil brand Meizan, BEOL is now marketing Adani Wilmar's flagship brands like Fortune (rice bran oil) and King's (sunflower oil) in the market. Industry estimates suggest, edible oil market in Bangladesh is currently pegged at Rs 16,000 crore and is growing at an impressive 9.5 per cent CAGR (compound annual growth rate). —Indian media
