Bangladesh is going through an unprecedent political crisis, that has led to Prime Minister Sheikh Hasina fleeing the country for a ‘safer place’ after stepping down. The army will now form the interim government in the country.

As per latest updates, the former Prime Minister met National Security Advisor Ajit Doval at the Hindon Airbase after landing in India and according to diplomatic sources, is on her way to London.

Multiple Indian companies have exposure to Bangladesh either as a market or as a supply chain component and these may have an impact due to the ongoing unrest. Here’s a look at some of these companies.

VIP Industries

The luggage manufacturer has eight manufacturing facilities based out of Bangladesh and nearly 30-35% of its capacity is sourced from the country.

As per its latest annual report, VIP Industries had restructured its Bangladesh manufacturing facility, including reducing manpower, in response to the decline in soft luggage demand.

Marico

Bangladesh is a major component of Marico’s international business, which accounts for over a quarter of the overall topline.

Nearly 44% of Marico’s international revenue comes from Bangladesh. When it comes to the overall topline, Bangladesh contributes nearly 12% to the same.

From 51% in financial year 2022, Marico aims to bring down Bangladesh’s share in its international business to less than 40% by the end of financial year 2027, as per its June quarter investor presentation.

Dabur, GCPL & Britannia

The FMCG trio will also be in focus as they too have sales exposure to Bangladesh. However, the quantum is less than 5% of their overall topline.

Trent

Bangladesh ranks as one of the most important countries for sourcing for the Tata Group company alongside Hong Kong and Thailand. However, the quantum of sourcing done from the country is not disclosed.

Besides these companies, garment and textile stocks may end up being beneficiaries of these disruptions in Bangladesh as companies would look towards a Bangladesh+1 supply chain.