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Marico Bangladesh has begun commercial production from its new manufacturing unit at Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram to seize a greater share of the rapidly expanding market for fast-moving consumer goods.
Although the India-based multinational company initiated production at its new manufacturing unit on July 4 this year, it disclosed the development on Monday through a Dhaka bourse disclosure.
In October 2020, Marico Bangladesh decided to construct its third manufacturing unit at Bangabandhu Sheikh Mujib Shilpa Nagar under the Bangladesh Economic Zones Authority (BEZA) to enhance its ‘Made in Bangladesh’ production.
In line with this decision, the company established its third manufacturing unit on a 10-acre land at Bangabandhu Sheikh Mujib Shilpa Nagar by investing Tk 2.27 billion in phases, to expand its production capacity for existing product line-ups.
Marico is ranked among the top three fast-moving consumer goods multinational firms in the beauty and wellness sector in Bangladesh.
It is the first subsidiary of Indian Marico Ltd, which embarked on its journey 24 years ago with its flagship brand, Parachute Coconut Oil.
Over time, Marico has diversified its offerings to encompass 43 brands in 10 categories, including hair care, skincare, baby care, hygiene and food products.
Marico's product line-up comprises a variety of baby care, skincare and male grooming products under brands like Parachute Just for Baby, Parachute Skinpure and Studio X, in addition to its heritage brands Parachute Coconut Oil, Parachute Advanced and Saffola Active Edible Oil.
Parachute Coconut Oil holds a dominant position in the branded coconut oil market in Bangladesh.
To meet the growing demand for coconut oil and food products, the company invested Tk 292 million four years ago to establish a new manufacturing unit at its Gazipur factory site.
An official from Marico Bangladesh said that nearly 99 per cent of their product portfolio is manufactured in Bangladesh, serving both domestic and international markets.
Even despite the Covid-19 pandemic and global economic challenges, the company enjoyed a resilient performance, leading to good business.
Marico Bangladesh, whose financial year begins on April 1, posted a record quarterly profit of Tk 1.33 billion in April-June this year. Also, the company saw a 29 per cent year-on-year growth in profit in the June quarter, thanks to an increase in revenue and lower cost of sales.
Marico Bangladesh also posted the highest annual net profit of Tk 3.87 billion for the financial year that ended on March 31 this year and disbursed a total 750 per cent cash dividend.
Despite the news, its stock price remained unmoved, languishing at the floor of Tk 2421.5 on the Dhaka Stock Exchange since October last year.