Bangladesh Crisis: Indian Stocks That Have Exposure In The Neighbouring Country
NDTV Profit explores the footprint of Indian companies in Bangladesh and assesses the potential repercussions.
Several Indian companies with significant operations in Bangladesh can face an impact as the nation plunges into a political crisis after Prime Minister Sheikh Hasina's ouster. Many Indian firms have a significant presence in the neighbouring country across various sectors like auto, railways, pharma and fast-moving consumer goods.
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.
NDTV Profit explores the footprint of these companies in Bangladesh and assesses the potential repercussions.
FMCG Companies
Marico Ltd. relies heavily on its international business, with 44% of its revenue coming from Bangladesh. Marico Bangladesh Ltd., a wholly owned subsidiary, generated Rs 1,103 crore in the last financial year, accounting for 11% of Marico's total revenue, according to its annual report.
Emami Ltd.'s operations in Bangladesh are substantial. Emami Bangladesh Ltd., a wholly owned subsidiary, has a local factory and reported revenue of Rs 17,423 crore in the last fiscal, making up 6% of the company's total revenue.
Asian Paints Ltd. also has a significant presence in Bangladesh through its wholly owned subsidiary, Asian Paints (Bangladesh) Ltd., which recorded Rs 10 crore in revenue and Rs 12 crore in royalty payments in 2023–24. The company has a loan of Rs 12 crore from Standard Chartered Bank of Bangladesh and a profit share of 0.2% for last fiscal.
Pidilite Industries Ltd. has two wholly owned subsidiaries in Bangladesh — Pidilite Speciality Chemicals Bangladesh Pvt., contributing 4.23% to the company’s profit in the last fiscal; and Nina Percept (Bangladesh) Pvt. with a 0.21% share in profit.
Jubilant FoodWorks Ltd. has recently completed a 100% acquisition of Domino's Pizza in Bangladesh and holds the rights for the Popeyes fried chicken restaurant chain, operating 26 stores in the country by the December quarter of the last fiscal.
Godrej Consumer Products Bangladesh Ltd. is another 100% subsidiary that underscores the company's commitment to the Bangladeshi market. VIP Industries Ltd. sources 30–35% of its production capacity from Bangladesh, highlighting its reliance on the country.
Railways, Defence
In the railway sector, Rites Ltd. secured a contract worth Rs 906 crore for supplying 200 broad-gauge passenger coaches to Bangladesh. Texmaco Rail & Engineering Ltd. exports freight cars to the country, while BEML Ltd. also has a notable presence in the Bangladeshi railway industry.
Defence companies like Garden Reach Shipbuilders & Engineers Ltd. have received a $21-million order to build advanced ocean-going tugs for the Bangladesh Navy and a total contract of $16.5 million from the Bangladesh Inland Water Transport Authority.
Oil Companies
Indian Oil Corp.'s export operations include Bangladesh, where the company exports products like gas oil, jet A1 fuel, gasoline, Avgas aviation fuel and sulphur, exporting 17.4 MT of sulphur via road in the last fiscal.
Power Companies
NHPC Ltd. and Bharat Heavy Electricals Ltd. are constructing a 1,320-MW coal-based power plant in Bangladesh via a joint venture known as the Rampal power station.
Auto Companies
Hero MotoCorp., in collaboration with Niloy Motors Ltd., has established a significant manufacturing unit in Jessore, Bangladesh. This facility, along with others in Padmabilla, Shakharigati and Kotowali in the southwestern region of the country, highlights the company's substantial presence in Bangladesh.
The Jessore plant boasts a production capacity of 1.2 lakh units per annum. In 2023–24, this venture accounted for 2–3% of Hero MotoCorp.'s total sales and represented a substantial 50–60% of the company's total exports. This strategic investment underscores the importance of the Bangladeshi market to Hero MotoCorp.'s overall business operations and growth strategy.
Ashok Leyland Ltd. has an assembly plant in Bangladesh in association with IFAD Autos Dhaka. The workshop is located at Madanpur in Narayanganj District. It sells 65% of its locally assembled light and medium commercial trucks and buses.
Companies like Tata Motors Ltd. also sell the light commercial vehicle via partners in the markets. The tipper truck market has also seen strong demand for both new and used tippers in the markets.
Another key segment is the bus market that Tata Motors is targeting. Tata Motors' manufacturing plant in Jessore produces buses that are specifically tailored to meet the country's needs and preferences.
Telecom Companies
In the telecom sector, Bharti Airtel Ltd. operates through Robi Axiata, owning a 28% stake.
Pharma Companies
Sun Pharmaceutical Industries Ltd. has inaugurated a new plant in Bangladesh, marking its second investment in the country. The new facility boasts a production capacity of over 1 billion tablets and capsules per year, emphasising the company's expansion in the pharmaceutical industry.
With research inputs from Mahima Vachhrajani, Anushi Vakharia, Mihika Barve, Puneet Javeri and Varsha Chandnani.
