There have been ongoing protests in Bangladesh, particularly concerning political and economic issues, with a focus on demands for better governance, economic conditions, workers’ rights, and many more.
Following the ongoing protests and distress in Bangladesh, Sheikh Hasina the PM of Bangladesh dissolved the Parliament by resigning from her post and fled the country following which the Bangladesh army confirmed the coup and the formation of a temporary government.
Multiple Indian companies have exposure to Bangladesh either as a market or as a supply chain component and these may have an impact due to the ongoing unrest. Listed below are some of the companies with operations or sourcing or presence in Bangladesh
Marico
Marico Limited is one of the leading FMCG(Fast-moving consumer goods) companies with a presence across 50+ countries, engaged in business across categories of hair care, skin care, edible oils, healthy foods, male grooming, fabric care, and many more.
With a market capitalization of Rs. 81,555 Crores, the shares of Marico Limited closed at Rs. 629.95 per equity share, down 6 percent from its previous day’s close price of Rs. 672.40
Marico Limited has a significant presence in Bangladesh with manufacturing facilities that produce a range of products, including hair oils, edible oils, and personal care products, helping in reducing costs and ensuring product availability.
The Ongoing crisis and protests in Bangladesh can affect Marico Limited’s operations and revenue as contributes about 11% of its total revenue, added with slow operations in their manufacturing facilities situated in Bangladesh.
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VIP Industries
VIP Industries is India’s largest luggage manufacturing company which manufactures luggage and travel accessories, catering to the household and personal products segment.
With a market capitalization of Rs. 6,307 Crores, the shares of VIP Industries Limited closed at Rs. 443 per equity share, down 1.5 percent from its previous day’s close price of Rs. 449.70.
As per sources, VIP Industries Limited has eight manufacturing facilities based out of Bangladesh and nearly 30-35 percent of its capacity is sourced from the country, and the ongoing protests in Bangladesh can take a hit on the company’s revenue.
Dabur India
Dabur India Limited is one of the leading fast-moving consumer goods producers with a presence across Consumer care, Food, personal care Retail business, and Other segments
With a market capitalization of Rs. 1,11,336 Crores, the shares of Dabur India Limited closed at Rs. 629.10 per equity share, down 0.78 percent from its previous day’s close price of Rs. 634.05.
Dabur India Limited operates a manufacturing facility in Bangladesh to produce its range of Ayurvedic and natural healthcare products, following the ongoing protests there may be slight slippages in their future revenue guidance however the sales exposure is less than 5 percent
Bajaj Auto
Bajaj Auto Limited is engaged in the business of developing, manufacturing, and distributing motorcycles, commercial vehicles, Electric Vehicles, and parts associated with it.
With a market capitalization of Rs. 2,62,763 Crores, the shares of Bajaj Auto Limited closed at Rs. 9,412 per equity share, down 0.79 percent from its previous day’s close price of Rs. 9,487.25.
Bajaj Auto, in partnership with Uttara Motors, operates in Bangladesh and it also has set up assembly and manufacturing facilities for motorcycles and three-wheelers.
Tata Motors
Tata Motors Limited is a leading automobile manufacturer offering a wide and diverse portfolio of cars, sports utility vehicles, buses, trucks, and defence vehicles across its global presence.
With a market capitalization of Rs. 3,37,004 Crores, the shares of Tata Motors Limited closed at Rs. 1,018.60 per equity share, up 0.19 percent from its previous day’s close price of Rs. 1,016.65.
Tata Motors Limited has a good presence with a distribution and service network in Bangladesh. In collaboration with its Bangladesh partners, it has set up assembly operations for vehicles.
Written by: Bharath K.S
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