Business Desk : dhakamirror.com
ACI Limited is going to form a manufacturing joint venture with the world’s largest oral care player Colgate, according to a regulatory filing by the conglomerate.
The aim of the joint venture is to manufacture oral care and personal care products in Bangladesh.
The board of directors of ACI Ltd has granted approval for the signing of the joint venture agreement, according to a disclosure posted on the website of the Dhaka Stock Exchange (DSE) on Thursday.
The agreement with Colgate-Palmolive is subject to the usual condition precedents and other regulatory formalities.
ACI Ltd officials said that the joint investment will amount to approximately Tk 2.0 billion to establish Colgate-Palmolive ACI Bangladesh Pvt Ltd.
ACI Ltd will invest Tk 500 million over a period of three years against its 24 per cent holding in the proposed joint venture company.
Contacted, Pradip Kar Chowdhury, the chief financial officer (CFO) of ACI Ltd, said it would take around two years to start commercial operations of the joint venture.
He said both parties are searching for a place to set up the plant of the proposed company and Chattogram’s Mirsharai is on their choice list.
“Commercial operations will be started through producing oral care products. Different world standard products such as toothpaste and brushes will be available at cost-effective prices in Bangladesh,” Mr Chowdhury said.
Colgate-Palmolive (Asia) Pte Ltd was incorporated under the laws of Singapore and is part of the renowned Colgate-Palmolive company.
ACI Ltd, presently an ‘A’ category company, was listed on the stock exchange in 1976.
The company’s sponsor-directors hold 36.07 per cent shares, institutes 41.27 per cent and general investors 22.66 per cent as on March 31, 2023.
Its share price came down to the floor price of Tk 260.20 on November 20, 2022, and since then the price remained stuck there till Thursday.
