ACI terminating joint venture agreement with Dabur

[Bilal9]

Logo of ACI and Dabur​

Bangladeshi conglomerate ACI Limited is going to terminate a nearly 20-year-old joint venture agreement with India-based Dabur International.

Under the agreement signed in July 2003, the two companies formed Asian Consumer Care Private Limited the same year for selling Dabur's products across Bangladesh.

Dabur and ACI hold 76% and 24% stakes, respectively, in the company.

As per the ACI board's decision, it will sell its stake in the Asian Consumer at Tk60 crore.

The board has also decided to spend the fund on business expansion.

However, officials at ACI Limited have declined to make any comments when the termination will come into effect.

Meanwhile, Dabur has filed a statement with the National Stock Exchange of India.

"Dabur International and Dabur (UK) Limited, both wholly-owned subsidiaries of Dabur India Limited, have decided to purchase 8,479,187 equity shares and 1,000 equity shares, respectively, of Asian Consumer Care Private Limited," read the statement.

Dabur will acquire the ACI holdings for Tk60 crore which, according to the present exchange rate, comes to around Rs51 crore, the filing added.
According to the ACI website, segments like toothpaste, shampoo, and homecare saw rapid growth in FY2019-20.

Due to regional complexities and strong competitive market dynamics, Asian Consumer's revenue declined by 13.2% in FY2019-20.

According to ACI sources, Dabur's brand has not been established in Bangladesh even though the business started in 2003. Rather, there was a disagreement with Dabur in terms of business management. So ACI is severing ties with the company to focus on its own business. But Indian companies like Marico are faring well after starting their business in Bangladesh almost at the same time.

Besides, ACI Limited will merge the plastics business. The company said that it will complete the merger after getting the approval of the High Court.
ACI shares closed 0.9% higher at Tk279.10 on the Dhaka Stock Exchange on Thursday.

Currently, ACI has four joint venture companies with foreign partners including Asian Consumer.

 

[Bilal9]

ACI's focus has shifted from consumer products, especially FMCG products sold by Dabur in Bangladesh which is not a profitable segment for them.

There is nothing in Dabur's brand (or any other branded FMCG product made in India nowadays) that cannot be produced in Bangladesh with our industrial expertise, which was true fifty years ago as well.

This can be more or less seen as the rejection of Dabur's brand in Bangladesh.

From personal experience - Indian brands (mostly FMCG products makers such as Adani, Reliance, Dabur, Cadbury, Brittania as well as automotive sector players such as Hero, Tata and Ashok Leyland) want to explore/expand markets in Bangladesh because to them it is a prestige issue.

They come in to Bangladesh chambers and twist everyone's arms to enter into 'marketing agreements'. But as can be seen with Dabur now, this is the end result.

 

[Protest_again]

ACI's focus has shifted from consumer products, especially FMCG products sold by Dabur in Bangladesh which is not a profitable segment for them.

There is nothing in Dabur's brand (or any other branded FMCG product made in India nowadays) that cannot be produced in Bangladesh with our industrial expertise, which was true fifty years ago as well.

This can be more or less seen as the rejection of Dabur's brand in Bangladesh.

From personal experience - Indian brands (mostly FMCG products makers such as Adani, Reliance, Dabur, Cadbury, Brittania as well as automotive sector players such as Hero, Tata and Ashok Leyland) want to explore/expand markets in Bangladesh because to them it is a prestige issue.

They come in to Bangladesh chambers and twist everyone's arms to enter into 'marketing agreements'. But as can be seen with Dabur now, this is the end result.

Lol. Bangladesh FMCG market size is barely about $3.5 billion vs about $150 billion in India.

The fast-moving consumer goods (FMCG) market in Bangladesh has now surpassed Tk30,000 crore.

FMCG industry in India has seen a remarkable transformation over the last two decades. With a growth rate of 14.7 pr cent, the FMCG industry has been projected to grow to a market size of almost $220 billion by 2025.

Four Dabur brands cross Rs 1,000 crore sales and two over Rs 500 crore

The four brands are Dabur Amla, Dabur Vatika, Dabur Red Paste and juice brand Real. For the financial year ended on March 31, 2022, Dabur India's revenue from operations was at Rs 10,889 crore, witnessing the highest annual revenue growth in the last eight years.

www.google.com

Dabur revenue in India is about half the FMCG market size of Bangladesh. Lol.

No Indian company would loose sleep over that stupid market.

 

[bluesky]

Lol. Bangladesh FMCG market size is barely about $3.5 billion vs about $150 billion in India.

The fast-moving consumer goods (FMCG) market in Bangladesh has now surpassed Tk30,000 crore.

FMCG industry in India has seen a remarkable transformation over the last two decades. With a growth rate of 14.7 pr cent, the FMCG industry has been projected to grow to a market size of almost $220 billion by 2025.

Four Dabur brands cross Rs 1,000 crore sales and two over Rs 500 crore

The four brands are Dabur Amla, Dabur Vatika, Dabur Red Paste and juice brand Real. For the financial year ended on March 31, 2022, Dabur India's revenue from operations was at Rs 10,889 crore, witnessing the highest annual revenue growth in the last eight years.

www.google.com

Dabur revenue in India is about half the FMCG market size of Bangladesh. Lol.

No Indian company would loose sleep over that stupid market.

Khik, khik, kihik -------------------------------.

 

[Bilal9]

Khik, khik, kihik -------------------------------.

Lomba lomba baat-chit marey, magar tago media report dekhley to mone hoi ulta consumption combo (shob desher eki obostha).....inflation barley ki lokjon jinish kina baraiya dei?? Mokkeler kotha shonen.....uthtey boshtey mittha kotha boley.

https://www.thehindubusinessline.com/specials/corporate-file/india-inc-desperately-seeking-consumption/article65647449.ece

This report is from ten days ago and present the real picture.

Hit hard by inflation, India's FMCG industry reports volume decline in Q1

Demand in the FMCG industry remained soft in the June quarter, with major players Dabur, Marico and Godrej Consumer Products Ltd (GCPL) stating that consumers have titrated consumption

www.business-standard.com

 

[Paitoo]

Such parting of ways can happen for numerous reasons, even within same country brands. Dabur is a very reputed brand in India. No way Marico products are superior than Dabur. If Marico is doing well as per the article, there is no reason Dabur can't do well. Must be some fundamental disagreements over management style or vision

 

[Vasudhaiva Kutumbakam]

Lomba lomba baat-chit marey, magar tago media report dekhley to mone hoi ulta consumption combo (shob desher eki obostha).....inflation barley ki lokjon jinish kina baraiya dei?? Mokkeler kotha shonen.....uthtey boshtey mittha kotha boley.

https://www.thehindubusinessline.com/specials/corporate-file/india-inc-desperately-seeking-consumption/article65647449.ece

For your kind information, INDIAN ECONOMY grew at a pace of 20.1 per cent in April-June 2021 and this time too it'll again achieve the double digit growth rate

Q1 GDP growth seen at 14-15% on services' revival

The median estimate in the poll of 10 economists was 14.43%. It pegged FY23 growth at 7.2-7.6%. The Reserve Bank of India (RBI) has forecast 16.2% GDP growth for the first quarter and 7.2% for the fiscal year.

www.google.com

 

[bluesky]

Assamese @Protest_again must be very upset at the BD company for kicking out that inefficient Indian company.

Please accept our deep condolence!!!

 

[Paitoo]

I read the article again. It seems that Dabur is acquiring ACI's stake in the JV. Which means that Dabur will operate independently in Bangladesh. They are not quitting the country.

 

[Bilal9]

For your kind information, INDIAN ECONOMY grew at a pace of 20.1 per cent in April-June 2021 and this time too it'll again achieve the double digit growth rate

Q1 GDP growth seen at 14-15% on services' revival

The median estimate in the poll of 10 economists was 14.43%. It pegged FY23 growth at 7.2-7.6%. The Reserve Bank of India (RBI) has forecast 16.2% GDP growth for the first quarter and 7.2% for the fiscal year.

www.google.com

IIP data: India's Industrial Output Rises 19.6% In May Led By Strong Performance In Manufacturing, Power And Mining Sector

www.google.com

You Bhakt Indian posters are a constant source of entertainment. Jeetey Raho.

Thanks for the laugh.

 

[Bengal71]

I read the article again. It seems that Dabur is acquiring ACI's stake in the JV. Which means that Dabur will operate independently in Bangladesh. They are not quitting the country.

Yes but Dabur never became popular in BD.

 

[Bilal9]

I read the article again. It seems that Dabur is acquiring ACI's stake in the JV. Which means that Dabur will operate independently in Bangladesh. They are not quitting the country.

Whatever makes Dabur Mgmt. sleep at night.

By feeding a line to the Dalal Street folks in Mumbai.

 

[LakeHawk180]

Such parting of ways can happen for numerous reasons, even within same country brands. Dabur is a very reputed brand in India. No way Marico products are superior than Dabur. If Marico is doing well as per the article, there is no reason Dabur can't do well. Must be some fundamental disagreements over management style or vision

Usually the case. I will find out more as to the specifics. But I’m also reading a lot between the lines. It could be that Dabur is wholesale acquiring the Bangladesh business and ACI is now trying to save face. You see that with a lot of JVs where the the bigger player buys out the local minority stakeholder after consolidating.

INR 51 crore is chump change. If ACI offloaded their stake for a pittance like that there is always a chance they were forced into it.

 

[Black Tornado]

Lomba lomba baat-chit marey, magar tago media report dekhley to mone hoi ulta consumption combo (shob desher eki obostha).....inflation barley ki lokjon jinish kina baraiya dei?? Mokkeler kotha shonen.....uthtey boshtey mittha kotha boley.

https://www.thehindubusinessline.com/specials/corporate-file/india-inc-desperately-seeking-consumption/article65647449.ece

This report is from ten days ago and present the real picture.

Hit hard by inflation, India's FMCG industry reports volume decline in Q1

Demand in the FMCG industry remained soft in the June quarter, with major players Dabur, Marico and Godrej Consumer Products Ltd (GCPL) stating that consumers have titrated consumption

www.business-standard.com

Bilal: Because of inflation India’s FMCG market shrunk to Bangladesh levels, a country where there is no inflation…

 

[Bilal9]

Such parting of ways can happen for numerous reasons, even within same country brands. Dabur is a very reputed brand in India. No way Marico products are superior than Dabur. If Marico is doing well as per the article, there is no reason Dabur can't do well. Must be some fundamental disagreements over management style or vision

No one in Bangladesh who can afford EU or US or even brands from say Singapore, will buy Dabur or Marico garbage.

That is reserved for lower middle class folks in Bangladesh, unlike in India. No offense.

Marico does well for one reason. The lower middle class people buy their cheap coconut oil. That is it.