Marico Bangladesh is set to invest Tk 227 crore to establish a new manufacturing unit at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram as a part of its efforts to catch a greater share of the growing market for fast-moving consumer goods.

A land lease agreement between Marico Bangladesh and the Bangladesh Economic Zones Authority (Beza) to hand over a 10-acre plot for the project will be finalised today.

This will be the company's third manufacturing unit in Bangladesh.

"Through this investment, we will expand the production capacity of our existing product lines," said Christabel Randolph, director of legal and corporate affairs at Marico Bangladesh. 

Marico manufactures a range of baby care, skin care and male grooming products under brands such as Parachute Just for Baby, Parachute Skinpure and Studio X in addition to its heritage brands Parachute Coconut Oil, Parachute Advanced and Saffola Active Edible Oil.

"Almost 99 per cent of our product portfolio is manufactured in Bangladesh and we cater to both domestic and international markets from our existing factories in Gazipur," Randolph said.

"This fresh investment will enable us to better serve our consumers and supplement our endeavors to manufacture world-class products in Bangladesh," she added.

Marico began its journey in the country around 20 years ago with 36 brands across 10 categories under the Parachute Advanced, Saffola, Nihar, Parachute Just for Baby, Parachute Skinpure, Parachute Naturale, Livon and Studio X franchises.

Even despite the Covid-19 pandemic, the company enjoyed good business during the last financial year as its revenue grew by 15.4 per cent and profitability increased 17.5 per cent.

With Marico showing resilience amid the second wave of infections and the government's prudent measures in the form of movement restrictions and vaccination efforts, the company is hopeful of continuing to deliver growth in profits for its shareholders in fiscal 2021-22.

Randoloph went on to say that construction on the new unit would begin as soon as Beza hands over the plot.

"We plan to accelerate the pace of development and hope to go into commercial operations by mid-2022," she added.

Marico Bangladesh commenced exports to South Asian markets in 2018, primarily, Nepal and India.

Since last year, the company has also commenced exports to Middle Eastern markets and will look to further expand its export potential.

"We are proud to be ambassadors of "Made in Bangladesh" and enhance this equity in both domestic and international markets," Randoloph said.

Through the company's efforts, Bangladeshi consumers can be assured of availing the best-in-class quality products, made right here in their own country.

Regarding the project's financing, she said that their primary plan is to self-finance the project.

"We are, however, exploring other financing options as well and will avail external financing if the terms and rates are feasible," she added.

According to the investment proposal, Marico will create 2,500 opportunities for direct employment at the new production unit.

Beza Executive Chairman Paban Chowdhury said Marico is a renowned company that is doing very well in Bangladesh and is capable of ensuring quality investment.