Tata Motors, Hero MotoCorp, Asian Paints And Other Stocks That Could Be Affected By Bangladesh Turmoil

Many Indian companies that have operations in Bangladesh are feeling the brunt of the ongoing violence in the country.

What Happened: Bangladeshi Prime Minister Sheikh Hasina stepped down from her position on Monday after a wave of deadly anti-government riots spanning over weeks. She has fled the country and reportedly landed in India, putting an end to over two decades of her dominating the country’s politics.

The country is now under the army's governance. The ongoing turbulence has also affected Indian companies that have operations or are significantly reliant on the country.

Major Indian companies that have investments in the country, include Marico, Emami, Asian Paints, Godrej, Sun Pharma, Tata Motors, Jubilant FoodWorks, VIP Industries, and Hero MotoCorp.

Marico is reportedly working to lessen its reliance on the Bangladesh market, which currently contributes 11% to its consolidated business. Saugata Gupta, the company’s managing director and CEO, noted that they are carefully monitoring the situation.

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“We have been operating in Bangladesh for 20 years, weathered several storms in the past and hopeful of better days ahead,” Gupta reportedly said during the conference call after posting its Q1 financial results on Monday.

Emami is primarily engaged in importing, trading, manufacturing and distribution of ayurvedic and cosmetics products in Bangladesh. Asian Paints currently has a network of over 1,500 dealers and over 10,000 painters in the country.

Bangladesh is also a major market for Jubilant FoodWorks where it has 26 Domino’s outlets and VIP sources major materials from the country which contributed to nearly 10% of its consolidated revenue in 2023.

Moreover, last month, Titan signed an agreement with Bangladesh-based Rhythm Jewelery to set up a joint venture in Bangladesh, making a foray into the market.

Price Action: The companies showed mixed trading on Tuesday, seeing a gradual recovery from the global market rout on Monday.

Shares of Marico were down 3.08% at ₹651.45, Emami gained 3.25% to ₹774.10, and Asian Paints was 0.48% higher at ₹3,108.30. Godrej Industries saw its shares go up 1.77% to ₹891.45, Sun Pharma added 0.69% to trade at ₹1,732.20, Tata Motors was trading 3.63% higher at ₹727.45 and Hero MotoCorp was up 0.99% at ₹5,235.05.

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