Bilal9
ELITE MEMBER
- Joined
- Feb 4, 2014
- Messages
- 26,569
- Reaction score
- 9
- Country
- Location
Ahsan Habib
Fri Apr 14, 2023 08:00 AM Last update on: Fri Apr 14, 2023 08:00 AM
Colgate-Palmolive (Asia) Pte Ltd, one of the largest manufacturers and suppliers of personal care products worldwide, is going to build a factory in Bangladesh in partnership with local conglomerate ACI Ltd to cater to the fast-expanding consumer market.
Colgate-Palmolive (Asia), which is incorporated in Singapore and part of New York-based Colgate-Palmolive, will spend around Tk 200 crore and while ACI Ltd will invest around Tk 50 crore to set up the factory to capture a significant pie in the Tk1,000-crore oral care market.
"We are delighted to partner with Colgate-Palmolive, which is a renowned multinational company known for providing world-class oral care products across the globe," said Arif Dowla, managing director of ACI Ltd.
"Colgate brand is a household name in Bangladesh and is known for its high-quality products backed by research and innovations. This joint venture aims to make a meaningful impact on oral care awareness and bring smiles to many faces across Bangladesh."
Pradip Kar Chowdhury, executive director for finance and planning of ACI Ltd, said after six to seven years of negotiation, the joint venture has finally come true.
The factory would be a world-class manufacturing facility and it will maintain environmental, social and governance standards so it would take a few more months to start the construction of the factory.
"Our first choice is to build the factory at the Mirsarai Economic Zone," said Chowdhury.
He hopes that the commercial operation of the factory will commence at the end of 2025.
Colgate products are already popular in Bangladesh but they are import-based.
The oral care market, which is growing by 5 per cent annually, is dominated by Unilever. Colgate has around a 10 per cent share of the market. Other major companies in the segment are Anfords Bangladesh Ltd, Square and GSK.
If the products are manufactured locally, consumers will get them at cheaper prices. Besides, Colgate-Palmolive has some modern solutions for oral care and those solutions will also be available in Bangladesh, according to Chowdhury.
Global companies are increasingly looking at Bangladesh as a lucrative market as the buying capacity in one of the most populous countries in the world is growing steadily.
Bangladesh is expected to be the ninth-largest consumer market globally by 2030, leaving behind the United Kingdom and Germany, said a report by HSBC Global Research in October.
In 2021, Bangladesh was the 16th largest consumer market globally.
Manufactured by Colgate-Palmolive, Colgate's oral hygiene products were first sold by the company in 1873. It produces products for oral care, personal care, beauty and pet care.
It holds around 40 per cent market share in the oral hygiene product segment globally in 2021. In India, Colgate controls more than 50 per cent market share in the toothpaste category.
Advanced Chemical Industries (ACI) Limited is one of the largest conglomerates in Bangladesh with a multinational heritage. Yesterday, it said it is going to form a joint venture with Colgate-Palmolive (Asia).
The joint venture is proposed to be named Colgate-Palmolive ACI Bangladesh Pvt Limited, according to a filing on the Dhaka Stock Exchange.
The local conglomerate will invest about Tk 50 crore over a period of the next three years against its 24 per cent holding in the proposed company.
ACI is also a household name in Bangladesh and it operates across the country through its four diversified strategic business units.
ACI Pharmaceuticals is dedicated to introducing innovative and reliable pharmaceutical products.
ACI Consumer Brands produces and markets products in the segments of toiletries, home care, hygiene, electrical, electronics, mobile, salt, flour, foods, rice, tea, edible oil and paints.
ACI Agribusinesses is the largest integrator in the agriculture, livestock, fisheries, farm mechanization, infrastructure development services and motorcycle segments, while ACI Retail Chain runs the largest retail chain in Bangladesh through SHWAPNO outlets, according to the website of ACI.
The group posted a 9.4 per cent year-on-year higher profit to Tk 37.96 crore in the last financial year that ended on June 30. Shares of ACI were unchanged at Tk 260 on the DSE yesterday.
