Marico shares drop after updates on its Bangladesh business; check details

After showing some recovery in the previous session, the Marico stock fell again on Thursday to hit an intra-day low of ₹642.75 apiece on the National Stock Exchange of India (NSE), down 1% from its previous close. Marico shares had lost 6.5% on Tuesday on concerns over its Bangladesh business, but rebounded 3.3% on Wednesday.

In an update filed with the stock exchanges after the market hours on Wednesday, Marico said, “We would like to inform you that operating conditions in the market are gradually improving, however, we remain watchful of the evolving situation.”

“We continue to prioritise the safety of our employees, factory workers, distributors and other stakeholders of our business,” the company added.

Marico informed the bourses that a large majority of its retail sales force and distributors have now resumed operations after a brief interruption. However, manufacturing operations are yet to resume.

“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 said in its update.

Marico reiterated that the medium-term prospects of the company’s business in Bangladesh remain intact.

In its earnings statement released earlier this week on Monday, Marico had 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 mentioned that it was working towards geographical diversification in the international business to reduce dependence on the Bangladesh business. However, it still estimates that around 40% of the international revenue will continue to come from Bangladesh in FY27.

Meanwhile, Bangladesh will see an interim government taking oath on August 8, with Nobel laureate Muhammad Yunus as its head, according to reports. Army Chief General Waker-Uz-Zaman has said that the armed forces will provide all possible support to 84-year-old Yunus after Sheikh Hasina resigned as Prime Minister and fled the country following violent anti-government protests spearheaded by the ‘Students Against Discrimination’ movement.

Marico Ltd shares are trading at ₹654 per piece, up 0.75%, on the NSE at 3:15 pm.