The Indian Companies That Could Be Impacted Due To Bangladesh Crisis
Indian consumer companies like Emami, Marico, and Pidilite Industries that have operations in Bangladesh are assessing the situation to better understand the impact.
Former Bangladesh Prime Minister Sheikh Hasina's dramatic exit from the violence-hit country could have major strategic as well as economic implications for India. The political turbulence in the country could impact bilateral trade and business activities.
Indian consumer companies like Emami Ltd., Marico Ltd., and Pidilite Industries Ltd. that have operations in Bangladesh are assessing the situation to better understand the impact.
Bangladesh currently accounts for 11% of Marico's consolidated business. Saugata Gupta, managing director and chief executive officer at Marico, said that they are watchful of the ongoing situation. The company has been gradually reducing its dependence on the Bangladesh business, with the revenue share falling to 44% in the previous fiscal from the earlier 51% in financial year 2022.
"We have been operating in Bangladesh for 20 years, weathered several storms in the past and hopeful of better days ahead," Gupta said on Monday during a conference call.
Emami also has a factory in Bangladesh, with 6% share of its total revenue coming from the country.
Other companies like Pidilite Industries, Jubilant Foodworks Ltd., Asian Paints Ltd. and Godrej Consumer Products Ltd. also have operations in Bangladesh.
Life Insurance Corp. on Monday also said that its offices in the country will remain closed till Aug. 7 due to the prevailing socio-political situation.
Bangladesh Crisis
Bangladesh Prime Minister Sheikh Hasina resigned and left the country on Monday, after fierce clashes in Dhaka left over 100 dead and plunged the country into chaos. Army chief Waker-Uz-Zaman said a new interim government would be formed with the participation of all parties, after a meeting of senior military and political leaders at the army headquarters.
Hasina arrived at the Hindon Airbase near Delhi, hours after fleeing her country. She met National Security Advisor Ajit Doval at Hindon.
PM Narendra Modi has been briefed on the situation in Bangladesh by External Affairs Minister S Jaishankar.
