NEW DELHI: How the forced ouster of
Sheikh Hasina
from
Bangladesh
is likely to impact India, politically and economically? The political fallout of Bangladesh’s turmoil is still unfolding. With her asylum plan for the UK in limbo, Hasina is exploring other options even and she may have to stay put in India for many more days. India is in wait and watch mode till the ex-Bangladesh PM finds safe refuge in some other countries.
Meanwhile, Bangladesh President has appointed
Nobel laureate Muhammad Yunus
to lead the interim government on Tuesday evening, fulfilling a crucial demand made by students.
According to a statement from the president’s office, the remaining members of the interim government must be finalized promptly to address the ongoing crisis.
Interestingly, political or economic turmoils in these countries have never had a significant or lasting impact on Indian companies, a report in the
Economic Times
said. Although several consumer goods companies, such as
Godrej Consumer Products
,
Emami
, Dabur, Britannia, and
Asian Paints
, have a presence in Bangladesh, their exposure is not singularly significant to their overall operations.
As a result, stocks of most fast-moving consumer goods (FMCG) companies did not experience a major decline on Tuesday. “Shares of
Marico
, however, close nearly 6% lower, co earns 12% revenue from Bangladesh,” highlighting the company’s significant exposure to the Bangladeshi market.
Marico, which established a subsidiary in Bangladesh in 1999 and listed it on the Dhaka Stock Exchange in 2009, has seen its Bangladeshi operations become a significant contributor to its overall business. The subsidiary accounted for 44% of Marico’s overseas revenue in the previous financial year, with two factories located in Gazipur, Dhaka, and five depots. Marico is among the top three multinational FMCG companies in Bangladesh.
For other companies, the impact of the Bangladesh turmoil will be evident in their earnings in the coming quarters. The
political turmoil
in Bangladesh was one of the factors impacting the international business performance of Asian Paints for the June quarter. In 2022, Indian businesses faced a similar situation with the political upheaval in Sri Lanka, the ET report said.
In the case of other companies, the impact of the Bangladesh turmoil will be evident in their earnings in the coming quarters. The political turmoil in Bangladesh was one of the factors impacting the international business performance of Asian Paints for the June quarter.
