The political unrest in Bangladesh is causing concern among Indian companies with significant ties to the country. Most FMCG firms derive only a small portion of their revenue from Bangladesh, with the exception of Marico, which has a larger stake in the market and has been actively diversifying its international presence.
Marico’s international strategy includes expanding into the MENA region and South Africa, reducing its reliance on Bangladesh from 51% in FY22 to 44% in FY24. This strategic shift aims to lessen the impact of regional instabilities on its overall business.
Emami also has a notable presence in Bangladesh, operating a manufacturing unit in Dhaka since 2004. Despite a slight decline in revenues, its Bangladesh operations remain profitable, contributing 5% to its total income.
In the QSR sector, Jubilant FoodWorks is expanding in Bangladesh, having opened several new stores in FY23. However, the market contributes minimally to the company’s overall sales, reflecting a cautious approach to expansion in the region.
VIP Industries, a major player in the luggage sector, maintains significant manufacturing operations in Bangladesh, accounting for a substantial part of its production capacity. The company has recently taken measures to adjust to changing market demands in the country.
As Bangladesh’s textile industry grapples with domestic challenges, it continues to gain global market share, benefiting from shifts in global trade dynamics. This has provided an opportunity for Indian textile firms to increase their exports, capitalising on the competitive gaps left by China.
