Home ›› 13 Feb 2022 ›› Stock
Marico Bangladesh—consumer product manufacturer and marketer—reported a sharp increase of 82.32 per cent in its export sales in the last financial year (FY21) compared to a year earlier.
It witnessed its export volumes worth Tk 10.21 crore in the year ended on March 31, 2021 as against Tk 5.60 crore in the same period of previous year, according to its latest annual report.
The Indian based FMCG (fast-moving consumer goods) company calculates its financial year between April-March.
After producing the consumer products in Bangladesh, the company is exporting those to neighboring countries—Nepal, India and Vietnam.
“As a proud ambassador of Made-in-Bangladesh, 99 per cent of the company’s portfolio has been manufactured in Bangladesh,” said the company in the report. The company is expected to see its exponential export growth once its new manufacturing plant is established in the Chittagong Special Economic Zone (SEZ), it said.
“We’ve committed to invest Tk 227 crore for the construction of our third manufacturing unit in Bangabandhu Shilpanagar within the Mirasarai SEZ,” said Marico Bangladesh Chairman Saugata Gupta, in the annual report.
“This investment for future growth as delivering greater variety and world-class products to the consumers of Bangladesh will increase our exports,” he said.
The company has two factories in Gazipur area. It has 311 employees, out of which 98 per cent are Bangladeshi nationals and 3,500 indirect employment creation through its operations.
Business scenario
The main item and brand of the company is Parachute Coconut Hair Oil. The sales of the product increased in the last financial year but share of its total revenue declined.
Marico sold parachute coconut oils valued at Tk 699 crore in FY21, which was Tk 636 crore in FY20. Contribution of total revenue declined from 65 per cent to 61.8 per cent in FY21. The company produced 36,500 KL (kilo liter) parachute oil between April-March 21.
The product was recognized as the most loved hair oil brand in the country. Earlier it was awarded as one of the most consistent brand of the decade and also recognized as a SUPERBRAND by Bangladesh Brand Forum.
In FY21, the Kantar Brand Footprint Report recognised “Parachute” among the top five most chosen brands in Bangladesh, according to the annual report.
Diversified products, increased revenue
Despite the pandemic and lower demand from consumers, the company’s sales revenue increased 15.4 per cent to Tk 1,131 crore and net profit 12.7 per cent to Tk 311 crore during the period.
Timely product diversity helped the company earn good profits. Product portfolio has seen rapid diversification with the successful launch of hygiene products, said the annual report.
The company launched 10 new products in FY21 including an international hygiene range under Mediker SafeLife and its portfolio now stands at 29 brands in 10 categories.
The company paid 900 per cent dividend for FY21, which is the second best after 950 per cent paid out in FY20.
Despite the pandemic, its share price remained in the positive territory. Its share price moved between Tk 1,563 to Tk 2,153 from April’20 to Mar’21.
“This price reflects the market’s confidence in our brands, our growing performance in the consumer goods industry and our governance,” said the annual report.
Liabilities
The company has contingent liability of over Tk 110 crore as of 31 March 2021 in respect of indirect tax (VAT) and workers' profit participation and welfare fund.
The company has Tk 174 crore fixed deposit in different banks and Tk 25 crore short term loan at the end of the year March 31, 2021.
The peer companies within the FMCG industry include Unilever, SQUARE, Hemas Bangladesh, Moushumi Industries, Dabur Bangladesh, Emami Bangladesh, Reckitt Benckiser among others.
Marico Bangladesh, established in the year 1999, is a subsidiary of Marico Limited, an emerging markets FMCG multinational with presence in 26 countries across Asia and Africa. It was listed on both the Dhaka and Chittagong stock exchanges in 2009.
