Marico Operations On Gradual Recovery In Bangladesh
The company expects its manufacturing operations to resume soon, it said.
Marico Ltd. has reported that operating conditions in Bangladesh are gradually improving. However, the company is watchful of the evolving situation, it said in an exchange filing.
The crisis in Bangladesh escalated after Prime Minister Sheikh Hasina resigned and fled the country on Monday, amid mass protests against her government. Violent clashes in Dhaka have resulted in the deaths of hundreds and plunged the nation into turmoil.
"We continue to prioritise the safety of our employees, factory workers, distributors and other stakeholders in our business," the company said.
After a brief interruption, a large majority of the company's retail sales force and distributors have now resumed operations.
The company expects its manufacturing operations to resume soon, while it continues to maintain adequate assurance of supply of products to meet market demand in the interim. The medium-term prospects of Marico’s business in Bangladesh remain intact, it said.
Marico Ltd.'s first-quarter profit rose, in line with analysts' estimates. The net profit of the maker of Parachute hair oil rose 8.7% year-on-year to Rs 474 crore in the quarter-ended June, according to an exchange filing on Monday.
Marico derives a substantial portion of its revenue from international operations, with Bangladesh alone contributing 44%. Marico Bangladesh Ltd., a wholly-owned subsidiary, reported a revenue of Rs 1,103 crore in the last financial year, making up 11% of Marico's total revenue, according to its annual report.
Shares of Marico Ltd. closed 3.34% higher at Rs 649.70 per share, compared to a 1.11% advance in the benchmark BSE Sensex.
