ACI Ltd, a significant business entity in Bangladesh, announced its board’s approval to establish a joint venture with London-based United Biscuits Topco Limited to produce biscuits locally and cater to customers in the country.
The new joint venture company will operate under the name ‘Pladis ACI Bangladesh Limited.’
ACI plans to invest approximately Tk 500 million within the next two years, securing 49% ownership in the proposed company, as outlined in a disclosure to its shareholders.
However, ACI specified that the approval for this collaboration with ‘Pladis’ is subject to customary conditions and other regulatory authorizations.
ACI’s shares remained unchanged at the Dhaka Stock Exchange after this announcement.
The company, known for its presence in the food industry, aims to venture into biscuit manufacturing when the market demand for biscuits has increased due to growing incomes.
An unnamed high-ranking official from ACI emphasized the heightened quality expectations among Bangladeshi consumers. The official expressed ACI’s goal to better serve customers by partnering with an international company, leveraging their strong distribution network and diverse operations, aiming to integrate global capabilities.
While plans for the factory near Dhaka are underway, the official added that specific details regarding production schedules are yet to be finalized.
In the fiscal year 2022-23, ACI incurred losses amounting to Tk 490 million due to rising dollar prices, increased energy expenses, and higher borrowing costs.
However, in the July-September quarter of the 2023-24 fiscal year, the company witnessed a reduction in losses, declining to Tk 141million from Tk 185.9 million during the same period the previous year, as indicated in its unaudited financial statements released on the 14th of November.
According to the company’s report, the losses per share also decreased to Tk 2.07 in the initial quarter of the financial year from Tk 3.75 a year ago.