2024-08-07 10:47:31
New Delhi: Many Indian companies may be affected due to the ongoing situation in Bangladesh. These include 12 listed companies. According to government data, bilateral trade between India and Bangladesh was $14 billion during 2023-24. Exports from India to Bangladesh were around $12 billion. Many companies like Marico, Pearl Global Industries, Emami, Bayer Corp, GCPL, Britannia, Vikas Lifecare, Dabur, Asian Paints, Pidilite, Jubilant Foodworks and Bajaj Auto have a presence in Bangladesh. Along with this, Bangladesh is part of the supply chain of companies like Trent, PDS and VIP Industries.
The situation in Bangladesh had the biggest impact on the shares of Marico, a company that makes Safflower oil. 11-12 percent of the company’s revenue comes from sales in Bangladesh. The company’s shares have fallen by more than 4%. Similarly, about 25 percent of Pearl Global Industries’ revenue comes from Bangladesh. Due to curfew, the company’s facilities in Bangladesh are currently temporarily closed. The company’s shares have fallen by more than 3%. Similarly, Emami’s shares fell by more than 4%. Also, yarn exporters may suffer losses because Bangladesh is currently the largest customer of yarn exports. Its share in India’s exports is 25-30%.
Tuesday was a happy Tuesday, investors earned 7 lakh crores, Sensex jumped 1000 points
Shares of textile companies surge
Neeraj Jain, joint MD of Vardhman Textiles, said in the earnings call that if there is a disruption in Bangladesh, there will be problems here as well. So far there has been no impact on demand but if this situation continues for a long time then it can be a matter of concern. On the other hand, this crisis is also an opportunity for textile and garment manufacturers in India as it can help them increase market share. This is the reason why the shares of Gokaldas Exports (18%), KPR Mill (16%), Arvind Limited (11%), SP Apparels (18%), Century Enka (20%), Kitex Garments (16%) and Nahar Spinning (14%) have jumped significantly.