Advanced Chemical Industries (ACI) has approved another massive capital injection into its retail subsidiary, ACI Logistics, reinforcing its long-term strategy to strengthen Shwapno's position as the country's largest organised grocery retail chain.
The board of directors on Tuesday approved an investment of Tk 7 billion in ACI Logistics (operator of the Shwapno retail chain) through the subscription of 7 million convertible preference shares with a face value of Tk 1,000 each, according to a stock exchange filing published on Wednesday.
The investment is expected to be completed by October 15, subject to the approval of the authorities concerned
The latest funding comes only months after ACI approved a Tk 6.40 billion capital infusion into the same subsidiary, taking the group's fresh commitments to ACI Logistics to Tk 13.4 billion this year.
The fresh investment comes even as ACI has faced pressure on its consolidated financial performance over three consecutive years through FY25.
The listed conglomerate has reported consolidated losses for the years, mainly because of higher borrowing costs and losses incurred by several subsidiaries. Between FY23 and FY25, ACI's cumulative consolidated losses amounted to Tk 2.54 billion.
In FY25, the group posted a consolidated loss of Tk 650 million. However, its standalone business remained profitable, with net profit rising 19 per cent year-on-year to Tk 3.99 billion, reflecting the strength of its core operations.
ACI significantly narrowed its consolidated losses in the first nine months of FY26 through March this year, buoyed by double-digit revenue growth across its key business segments.
The group's net loss - Tk 71.22 million - in the nine months through March shrank to nearly one-eleventh of the loss recorded in the corresponding period of the previous year.
Shwapno currently operates more than 836 outlets across Bangladesh, making it the country's largest organised grocery retailer. With rising urbanisation, changing consumer lifestyles and increasing demand for modern grocery shopping, analysts expect organised retailers with nationwide distribution networks and advanced digital capabilities to capture a larger share of the market.
A senior ACI official, requesting anonymity, said the company deliberately chose to finance the subsidiary through convertible preference shares instead of additional bank borrowing.
"This structure strengthens the subsidiary's capital base without immediately increasing its debt
burden. It also provides flexibility to convert the investment into equity in the future while improving its financial position for raising additional funds if required," he added.
Following the disclosure, the stock of ACI surged 2.31 per cent to close at Tk 207.9 per share on Wednesday on the Dhaka Stock Exchange.
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