From Adani Power to Dabur: Here’s list of Indian stocks that have exposure to Bangladesh

The current turmoil in Bangladesh is expected to disrupt Indian companies that are operating in the neighbouring country. Bangladesh, which is India’s biggest trading partner in the South Asia, is in serious political crisis after former Prime Minister Sheikh Hasina resigned on Monday and fled the country amid nation-wide protest against job quota.  

Some of the notable listed Indian corporates that have exposure to Bangladesh are Adani Power, VIP, Emami, Marico, Dabur, Asian Paints, Pidilite, Tata Motors, and Hero MotoCorp. All these companies have operations in this nation are likely to be impacted by the ongoing crisis.

“The turmoil in Bangladesh is indeed worrying.  While we hope for an amicable resolution of the quota issue between the government and students, we are concerned about the Indian corporates operating in Bangladesh…This unrest will undoubtedly damage the country's brand value in the eyes of US and European manufacturers, who often give Bangladesh preference,” says Vikram Kasat – Head of Advisory at PL Capital - Prabhudas Lilladher.

Kasat, however, adds that the garments and textile sector in India may gain an advantage due to these ongoing protests and clashes.

Here's a look at Indian companies that are most likely to be impacted by the Bangladesh crisis.

Adani Power

The energy arm of billionaire Gautam Adani-led Adani Group last year started power supply to Bangladesh. In November 2017, Adani Power inked a 25-year power purchase agreement (PPA) with the Bangladesh Power Development Board to supply 1,496 megawatts (MW) from its Godda plant in Jharkhand.

In June Last year, Adani Power in an exchange filing said its subsidiary, Adani Power Jharkhand Limited (APJL), will supply 1,496 MW net capacity power from 2X800 MW Godda ultra-supercritical thermal power plant (Godda USCTPP) via 400 kV dedicated transmission system connected to Bangladesh grid.

Marico

The consumer goods company, which owns brands like Saffola and Parachute, generates around 44% of its international revenue from Bangladesh. Within the International business, Bangladesh registered 10% CCG (constant currency growth) in the first quarter of the current fiscal (Q1 FY25).

Marico, in its Q1 FY25 earnings report, said it is reducing revenue dependence on Bangladesh business, citing strong growth momentum in the MENA and South Africa businesses. It expects Bangladesh business to maintain double digit momentum in the coming quarter.

FMCG companies

Most leading FMCG companies in India such as Emami, Dabur, Godrej Consumer Products and Britannia have businesses in Bangladesh, which contribute around 2-5% of their total income.

While Dabur manufactures and markets consumer goods like hair care, oral care, home care, healthcare, and skincare in Bangladesh, Emami operates one manufacturing facility in Bangladesh.

Jubilant Foodworks

The Indian food service company, which holds the master franchise for Domino's Pizza, operates 28 stores in Bangladesh, which contributes nearly 1% of its consolidated sales. Domino’s Pizza has been operating in Bangladesh since March 2019. In May this year, the company approved an investment plan of up to ₹30 crore in Jubilant FoodWorks Bangladesh Limited (JFBL), its wholly-owned subsidiary in Bangladesh. Through this strategic investment, the company plans to expand its restaurant network in Bangladesh and become a key player in the country’s burgeoning quick-service restaurant (QSR) sector.

Hero MotoCorp 

The world's largest two-wheeler manufacturer has manufacturing facilities in Padmabilla, Shakharigati, Kotowali, and Jashore, situated in the southwestern region of Bangladesh, in partnership with Niloy Motors Ltd., known as HMCL NILOY BANGLADESH LTD. (HNBL). Currently, the plant has a capacity of 120,000 units per annum, which is proposed to be increased to 150,000 units per annum in the future, as per information available on the HNBL website.

VIP Industries

The luggage manufacturing company operates eight advanced manufacturing facilities in Bangladesh, which contributes around 30–35% of its total production capacity. The company, which manufactures luggage and travel accessories, started its business in Bangladesh by incorporating a wholly owned subsidiary, VIP Industries Bangladesh Pvt. Ltd, to set-up a luggage manufacturing plant in the country.

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