Indian Fast-Moving Consumer Goods (FMCG) companies operating in Bangladesh have begun resuming their operations after being shut down for about a week due to the recent violent clashes that rocked the country. The unrest, which led to a regime change, had severely disrupted business activities across the nation.
Leading Indian FMCG companies, including Marico, Dabur, Emami, Pidilite Industries, Britannia, and Godrej Consumer Products, all have significant operations in Bangladesh. Despite the turmoil, these companies are now gradually returning to normalcy.
Marico, which has the largest exposure in Bangladesh among these firms, announced that its manufacturing operations resumed at full scale on August 11. "Operating conditions in the market have been gradually improving, and a large majority of our retail sales force and distributors have been functioning since last week," the company stated. Marico, which operates in segments like personal care, baby care, edible oil, and food, contributes 44% of its international sales from Bangladesh. The company has two factories in Gazipur, Dhaka, and five depots across the country.
Dabur India also reported that its factory and stockists are now operational after a temporary shutdown during the violence. "We are monitoring the situation closely and will make all efforts to resume normalcy in operations," said Dabur CEO Mohit Malhotra, noting that Bangladesh accounts for less than 1% of Dabur’s consolidated revenue and under 0.5% of its profits.
Emami, another major player, has also resumed operations in Bangladesh, though its contribution to the company’s consolidated revenue is relatively small, around 4%.
The violence in Bangladesh, which began following the fall of the Hasina government on August 5, has claimed over 560 lives, with 230 people killed in the recent clashes. An interim government has since been formed, with Nobel laureate Muhammad Yunus serving as the Chief Adviser, alongside a 16-member council of advisors.
In addition to FMCG companies, Jubilant FoodWorks (JFL), the master franchisee of Domino's Pizza in Bangladesh, also operates about 30 stores in the country and is reportedly resuming its business activities as the situation stabilises.
The affected companies have emphasised their commitment to ensuring the safety of their employees and stakeholders as they navigate the ongoing challenges in Bangladesh. Despite the temporary disruptions, they remain optimistic about their medium-term prospects in the region.
