Political Crisis in Bangladesh Disrupts Operations for Indian Companies

New Delhi, Aug 8 (KNN) The escalating political crisis in Bangladesh has severely disrupted operations for several Indian companies with established interests in the country.

The unrest has particularly impacted firms in the FMCG and luggage sectors, with manufacturing shutdowns and strategic realignments underway.

Leading FMCG company Marico has seen its manufacturing operations in Bangladesh come to a standstill due to the ongoing turmoil. Despite this, the company announced that a significant portion of its retail sales force and distribution network has resumed activity.

Marico, which derives 44 per cent of its international business and approximately 12 per cent of its consolidated revenues from Bangladesh, operates three factories in the Gazipur and Chattogram regions.

In a statement to the stock exchange, Marico expressed cautious optimism: “The operating conditions in the market are gradually improving; however, we remain watchful of the evolving situation.

We expect our manufacturing operations to resume soon while continuing to ensure an adequate supply of our products to meet market demand in the interim.” The company’s product range in Bangladesh includes shampoos, edible oil, baby care, and skin care products.

VIP Industries, a major player in the luggage sector, relies heavily on Bangladesh for sourcing soft luggage, backpacks, and duffle bags. With 70 per cent of its total sourcing currently based in India, the company hinted at a possible relocation of its sourcing operations if the political instability persists.

“With the demand for soft luggage coming down, we have already been scaling down our operations in Bangladesh,” said MD Neetu Kashiramka. Despite the unrest, VIP's seven plants in the Mongla region remain operational, though the company has temporarily relocated its 20 Indian staff members to Kolkata as a precautionary measure.

Pidilite Industries, renowned for its Fevicol brand, is actively assessing the impact of the crisis on its operations in Bangladesh. MD Bharat Puri expressed hope for a swift resolution, noting the company’s significant manufacturing and sales presence in the country.

Similarly, Dabur is closely monitoring the situation, with analysts predicting continued sales pressure on companies operating in Bangladesh until the crisis is resolved.

Industry analysts expect that the ongoing political instability will exert considerable pressure on sales for Indian companies in Bangladesh.

(KNN Bureau)