Steady growth in MNCs\\\' profits

Shah Alam Nur | Published: November 10, 2013 00:00:00 | Updated: November 30, 2024 06:01:00

Profits of the multinational companies (MNCs) operating in the country have been growing steadily despite the prevailing unfavourable business condition thanks to their good management and product quality, sources said.
For doing better business most of foreign and multinational companies are going for expansion of their production capacity to fulfil the increased demand.
President of Foreign Investors' Chamber of Commerce & IndustryÂ (FICCI) Syed Ershad Ahmed said, "Good management and product quality have helped the foreign companies to increase their profits."
He also said transparency is very important to be well managed which almost all the foreign and multinational companies have; so their profits are increasing.
Mr Ahmed, also Managing Director of Expeditors Bangladesh Ltd, told the FE that due to the political turmoil, many local and foreign companies are losing their confidence over business.
He, however, expressed fear that if they fail to overcome the present situation, the investment growth will witness a negative trend from the next fiscal year (FY).
Mr Ahmed said a good number of proposals are coming to Bangladesh from foreign investors but the rate of their implementation is not at the expected level only due to political turmoil and poor infrastructure.
"We have huge potentiality for foreign investment subject to more infrastructural development," he added.
Grameenphone Ltd (GP), a multinational telecommunication company, reported Tk 25 billion in revenues for the third quarter of this calendar year (2013), registering an increase of 9.4 per cent from that of the same period of the previous year.
GlaxoSmithKline (GSK) Bangladesh Limited, a multinational pharmaceutical company, made Tk 572 million in profits from its operation during the January-September period which was Tk 316 million in the same time a year before.
Meanwhile, Executive Director of Centre for Policy Dialogue (CPD) Mustafizur Rahman told the FE: "The country has a good number of skilled manpower which is helping the foreign investors to expand further."
He also said Bangladesh is now a competitive sourcing country in the world, so multinational companies have taken it as a lucrative place for their investment.
Over the last nine months (January-September), Berger Paints Bangladesh Ltd has emerged as the top painting company in terms of profit. The company's earning increased by 43.39 per cent compared to that of the last year.
The company's 3rd quarter profit stood at Tk 727 million against Tk 507 million of the corresponding period of the last year.
"Multinational companies always try to recruit competent personnel to their offices and maintain a corporate culture which enables them to win the heart of their employees, and thus increase the profits," FICCI Executive Director MA Matin told the FE.
The Board of Investment (BoI) has registered proposals worth US$ 575.833 million in last six months (January-June) of the current calendar year as foreign direct investment (FDI) in different sectors. The amount is 16 per cent higher than that of the last year.
According to BoI data, the board registered 123 business entities or companies involving $ 575.833 million. The number of entities was 106 involving $ 344.193 million during the same period in 2012.