Bangladesh Crisis: Marico, Dabur And Emami See Gradual Recovery In Operations
An interim government has been formed in Bangladesh, with 84-year-old Nobel laureate Muhammad Yunus serving as the chief adviser.
Indian FMCG companies with operations in Bangladesh reported a gradual return to normalcy after a week-long shutdown. Leading firms such as Marico, Dabur, Emami, Pidilite Industries, Britannia Industries and Godrej Consumer Products, which have significant operations in Bangladesh, were impacted by the political turmoil that led to a regime change in the country.
Marico, which has the largest exposure in Bangladesh, announced that its manufacturing operations resumed at full scale on Aug. 11. "Operating conditions in the market have been gradually improving, and a large majority of our retail sales force and distributors have been functioning since last week," the company stated.
Marico operates in the personal care, baby care, edible oil, and food segments in Bangladesh, contributing 44% to its international sales. The company has two factories in Gazipur, Dhaka, and five depots in the country.
"We continue to prioritise the safety of our employees, factory workers, distributors and other stakeholders of our business," it said, adding: "We firmly believe that the medium-term prospects of Marico’s business in Bangladesh remain intact."
Marico had incorporated a subsidiary Marico Bangladesh in 1999. It is a listed entity on the Dhaka and Chittagong stock exchanges and is among the top three FMCG MNCs in Bangladesh.
Dabur India also reported that its factory and stockists are now operational after being shut for about a week. "We are monitoring the situation closely and we will make all efforts to resume normalcy in operations," Dabur Chief Executive Officer Mohit Malhotra said. He further stated that Bangladesh accounts for less than 1% of Dabur's consolidated revenue and under 0.5% of profits.
Emami, another Indian FMCG company with a smaller presence in Bangladesh, noted that the country contributes around 4% to its total consolidated revenue.
Over 230 people were killed in Bangladesh in the incidents of violence that erupted across the country following the fall of the Hasina government on Aug. 5, taking the death toll to 560 since the anti-quota protests first started in mid-July.
An interim government has been formed, with 84-year-old Nobel laureate Muhammad Yunus serving as chief adviser and announcing the portfolios of his 16-member council of advisers last week.
(With inputs from PTI.)
