Indian multinational conglomerate Emami said on Tuesday that its Bangladesh business is currently being impacted, but the company doesn't expect any market share loss in that country going forward.
"Currently, the business is getting impacted. In fact, in the last month it was very turbulent. But it has stabilised. Our factories have started operations, the markets have opened. And, we are hopeful of getting things stabilised," CEO - Finance, Strategy & Business Development and CFO N.H. Bhansali told shareholders of Emami Ltd during its annual general meeting while replying to their queries about the company's operations in Bangladesh.
"We do not see a very big impact on the overall business from the Bangladesh business. We are hopeful that things will stabilise over a period," Bhansali said.
Most of the major Indian FMCG (fast moving consumer goods) companies have a presence in Bangladesh. These companies' operations were impacted in the South Asian country, which has witnessed months of political uncertainties.
Kolkata-based Emami is hopeful that its Bangladesh business will be on the "growth trajectory" over time with a new government in place.
"With this political stability, we expect the business to resume soon. We don't expect any market share loss there," Bhansali pointed out.
The FMCG maker expects its international business to clock double-digit growth this fiscal year.
Its international business grew 11 per cent year-on-year on a constant currency basis during the first quarter of FY25.
"Despite geopolitical crisis and currency depreciations in key geographies, international business grew by 11 per cent in constant currency and by 10 per cent in INR terms. The performance was led by double-digit growths in MENA and SAARC regions," Chairman R S Goenka said during his speech at the 41st AGM of the company.
Goenka said Emami is committed to achieving around "double-digit" growth in the current financial year. The company's focus will be on growing revenues with robust margins, generating adequate cash flows to reinvest in its business, and strengthening sustainability.
"The company will keep exploring opportunities to invest in inorganic and strategic opportunities, enabling the company with new product categories that hold promising potential," the Chairman said, adding the company remained optimistic about future growth, supported by a favourable economic landscape, forecast of a normal monsoon, anticipated rural market recovery and government initiatives, among other. —Business Line (India)
