ACI to form joint venture with UK firm

Advanced Chemical Industries (ACI), one of largest business conglomerates in Bangladesh, is going to form a joint venture with London-based biscuit manufacturer United Biscuits Topco.
The name of the proposed joint venture will be "Pladis ACI Bangladesh" where ACI will invest about Tk 500 million in the next two years against its 49 per cent stake, according to a stock exchange filing on Tuesday.
"Approval of this arrangement with "Pladis" is subject to the usual condition precedents and other regulatory approvals," reads the disclosure.
The move came at a time when the market for biscuits has expanded amid rising income.
Consciousness about quality among Bangladeshi consumers has grown. ACI wants to serve customers better by forging a bonding with an international company, said an official of the company requesting not to be named.
"We have a good distribution network across the country and operate in diversified areas," he said.
The factory is planned to be established near Dhaka. But the production plan and time of launching are yet to be finalised.
ACI incurred a loss of Tk 490 million in FY23, owing to rising costs driven by unfavorable currency exchange rates, a significant increase in energy costs and higher borrowing costs.
Despite losses, the company will give 40 per cent cash dividend for FY23 from its retained earnings.
The company's losses, however, were reduced to Tk 141 million in July-September quarter this year from Tk 185.9 million in the negative earnings in the same quarter a year before, according to its unaudited financial statements published on Tuesday.
Meanwhile, the stock has remained stuck at the floor price of Tk 260.2 since November last year.

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