Marico Shares Plunge 6.50% on Bangladesh Crisis

New Delhi, Aug 6 (PTI) Shares of FMCG major Marico tumbled 6.50 per cent on Tuesday amid the ongoing political unrest in Bangladesh, which is the company's key global market.

Bangladesh, where Marico operates in personal care, baby care, edible oil and food segments, has contributed to 44 per cent of the international sales of the Mariwala-family promoted company.

The stock dropped 6.50 per cent to settle at Rs 628.70 on the BSE. During the day, it tanked 6.84 per cent to Rs 626.40.

At the NSE, it slumped 6.49 per cent to Rs 628.50.

The company's market valuation declined by Rs 5,657.55 crore to Rs 81,393.68 crore.

Bangladesh is facing its worst political crisis since independence in 1971, with Prime Minister Sheikh Hasina resigning amid massive anti-government protests.

Bangladesh is India's biggest trade partner in South Asia, while India is the second biggest trade partner of the neighbouring country in Asia. India's main exports include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles. The main import items are fish, plastic, leather, and apparel, among others.

Marico owns popular brands like Saffola, Parachute, and Livon.

In the recently concluded June quarter, Marico reported a 10 per cent growth in the Bangladesh market, the company said in the earnings statement on Monday.

"Within the international business, Bangladesh registered 10 per cent CCG (constant currency growth) as the business stayed resilient and sustained its momentum," it said.

As Marico is expanding its footprints to several other markets as part of geographical diversification, its chart reflects in the reducing dependence on the Bangladesh business.

"On the flip side, companies with substantial operations in Bangladesh, such as VIP Industries and Marico, are facing significant headwinds. Their revenue streams and profitability are directly exposed to the crisis' impact," Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd, said.

VIP Industries shares declined by 1.20 per cent to Rs 444.30 on the BSE.