Home ›› 14 Apr 2023 ›› Stock
With an investment of around Tk 50 crore, Advance Chemical Industries (ACI) Limited is going to form a joint venture with Singapore-based Colgate-Palmolive (Asia) Pte Limited.
The company said its board of directors already approved the signing of the joint venture agreement recently, as per a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.
This will be the ACI’s 5th joint venture company. The conglomerate already formed four joint ventures with other international companies.
Colgate-Palmolive (Asia) Pte Limited, a Singapore based company, is a part of the renowned business group Colgate Palmolive Company.
It is largely engaged in the manufacturing of oral and personal care products.
The formation of the joint venture, namely Colgate-Palmolive ACI Bangladesh Pvt Limited, will be implemented upon the fulfillment of regulatory formalities, the DSE filing read.
ACI will own a 24 per cent holding in the proposed company against its investment.
ACI Tetley ACI (Bangladesh) Limited, ACI Godrej Agrovet Pvt Limited, Asian Consumer Care Pvt Limited, and ACI CO-RO Bangladesh Limited are other joint ventures of ACI Limited.
ACI formed Tetley ACI Bangladesh Ltd (TABL) as a joint venture with Tata Global Beverages.
The tea company has been serving Bangladeshi consumers since 2003 with its unique blended tea.
Besides, ACI Godrej Agrovet Private Limited was established in 2004 as a joint venture between Godrej Agrovet Limited, and ACI Limited.
The company has gained a reputation as a quality feed manufacturer, catering to the ever-growing needs of the feed industry.
Producing high-end poultry, cattle, fish, and shrimp feed and day-old chicks (DOC), the company prioritises quality over everything, according to its officials.
Moreover, ACI Ltd formed Asian Consumer Care Private Limited in partnership with Dabur India, one of India’s leading companies.
Dabur International Limited owns a 76 per cent stake in the company, while ACI holds 24 per cent share capital in the company.
On the other hand, ACI Limited established ACI CO-RO Bangladesh Ltd as a joint venture with Danish juice manufacturer CO-RO.
ACI Limited owns a 49.9 per cent holding of the company.
ACI operates four distinct strategic business units – ACI Pharmaceuticals, ACI Consumer Brands, ACI Agribusinesses, and ACI Retail Chain – across the country.
With regard to the formation of the new joint venture, when contacted Mostafizur Rahman, company secretary of ACI Limited for a comment over the phone, he did not respond to.
As per its financial statement, ACI Limited registered a 70.6 per cent year-on-year slump in net profit in the July-December half of the fiscal year 2022-23.
The company reported a net profit of Tk 17.93 crore in H1 of the current fiscal year which was Tk 60.9 crore in the corresponding period last fiscal.
In fiscal year 2021-22, ACI’s consolidated profit increased to Tk 89.30 crore, and it paid a 50 per cent cash and 5 per cent stock dividend to its shareholders for that fiscal year.
ACI, a British Imperial Chemical legacy, has emerged as one of Bangladesh’s largest conglomerates with local ownership and management.
Earlier, ACI Foundation, a sponsor director of ACI Limited, declared its intention to purchase 1.35 lakh ACI Ltd shares through the DSE.
This announcement followed Chairman M Anis Ud Dowla’s purchase of 4.50 lakh shares in two phases through both the block and public market platforms of the DSE in the last six months.
Despite this positive news, ACI Limited shares have been stagnant at the floor price of Tk260.20 since September last year. Sponsors and directors collectively hold 35.46 per cent stake in the company, while public shareholders and institutional investors hold 24.05 per cent and 40.49 per cent, respectively.
