Marico to invest Tk227 crore in economic zone, capacity expansion

Indian multinational company, Marico Bangladesh Limited, will invest Tk227 crore on enhancing its "Made in Bangladesh" production. 

With this investment, the company also plans to set up a new plant in the Mirsarai Economic Zone.

The investment is intended to support Marico's long-term growth aspirations, a company official said.

Marico Bangladesh Managing Director, Ashish Goupal told The Business Standard, "We are investing Tk227 crore on capacity expansion."

"The right socio-economic indicators are in place to unlock the potential of Bangladesh in a post-Covid-19 world."

The government's vision of creating digital governance and push for putting the economy on fast track, offers an enabling environment for multinational players to invest in and be a part of Bangladesh's growth journey, Ashish said.

Marico's journey in Bangladesh started in 1999 with Parachute Coconut Oil.

Since then, the company has transformed itself from a single brand to 29 brands in personal care and food categories.

Marico's flagship brand Parachute has maintained its leadership position in Bangladesh and now holds the highest market share in the branded coconut oil category.

The multinational company also launched its first male grooming brand, "Studio X", with a wide range of premium products for men in February this year.

Marico also launched Mediker SafeLife hand-wash and hand-sanitisers to support the country in the fight against Covid-19.

Marico's "Made in Bangladesh" products are also exported to Nepal and India.

The company has two factories in Gazipur and three manufacturing contracts with other companies.

Marico invested Tk29.3 crore on expanding capacity of its factory in Gazipur and setting up a new manufacturing line.

The company was listed on both stock exchanges in 2009. Its paid-up capital is Tk31.50 crore.

The company has come in third place on the table of Dhaka Stock Exchange's (DSE) top share prices.

Marico's share price rose 2.59% to Tk2,099 at the DSE on Thursday.

As of August 2020, sponsors and directors jointly had 90% stake in the company, institutional investors 3.21%, foreign investors 5.39% and general investors 1.40%.

In the last decade, Marico's revenue rose 83% to Tk979.59 crore till 31 March 2020; its net profit also soared 292% to Tk264.62 crore.

The company, which paid a 45% cash dividend in 2010, disbursed 950% cash dividend for the year ending on 31 March 2020.

During the April-June quarter of the financial year 2020-21, the company's revenue rose 10% to Tk301.17 crore, while net profit rose 17% to Tk99.66 crore.

However, a company official said Marico could not meet its growth target in the first quarter because of the pandemic.