'Expect manufacturing to resume soon': Marico shares update on Bangladesh operations

In an update shared with the stock exchanges, the Indian FMCG major said it expects to resume manufacturing at its facilities based in Bangladesh shortly.

"After a brief interruption, a large majority of our retail sales force and distributors have now resumed operations. We expect our manufacturing operations to resume soon, while we continue to maintain an adequate assurance of supply of our products to meet market demand in the interim," the company stated in the regulatory filing.

Bangladesh plunged into chaos on Monday after surging protests forced Prime Minister Sheikh Hasina to resign and flee the nation. Several businesses have briefly suspended operations in the country in view of the unrest. The Bangladesh army has assured that an interim civil government would soon be formed.

Marico, in the exchange filing, said the operating conditions in the market are gradually improving, but the company remains "watchful of the evolving situation"

"We continue to prioritise the safety of our employees, factory workers, distributors and other stakeholders of our business," it added.

Why Bangladesh matters to Marico

In its earnings statement released on Monday, Marico mentioned that Bangladesh contributed a substantial 44% to its international business revenue in the financial year 2023-24. This was equivalent to 12% of Marico’s total consolidated revenue.

The company noted that it was working towards geographical diversification in the overall international business to reduce dependence on the Bangladesh business. However, it still estimates that around 40% of the international revenue would continue to come from Bangladesh in FY27.

Other FMCG majors, including Emami, Dabur, Britannia and GCPL also have significant exposure to the Bangladeshi market. However, unlike Marico, they draw only up to 5% of their total revenue from the country.

Meanwhile, Marico's shares recovered on the bourses after plunging by over 4% on Tuesday owing to the impact on its operations in Bangladesh. On Wednesday, the scrip last traded at ₹649.05 apiece on the NSE, up 3.27% as against the previous session's close.