Adani Power to Hero MotoCorp: India Inc’s Cautious Strategy Amid Bangladesh Unrest | Crucial Company Update
Dhaka Unrest: Impact on Indian Businesses and Government Actions
A drone image captured on August 5, 2024, reveals a tense scene at Bangladesh Parliament House in Dhaka amidst escalating unrest that has resulted in at least 440 deaths. The political turmoil, marked by the resignation and subsequent flight of Sheikh Hasina to India, has prompted major Indian companies to evaluate the potential impact on their operations in Bangladesh.
Despite the volatility, Tata group airlines Air India and Vistara have resumed flights to Dhaka. Indian External Affairs Minister S. Jaishankar expressed deep concerns over the situation, particularly regarding minority communities, and confirmed that the Indian government remains in regular contact with Bangladeshi authorities. An all-party meeting was conducted to address the crisis.
The Indian business community is feeling the effects. Marico shares dropped by 6.5%, closing at Rs 628, while Dabur, accounting for less than 1% of its revenue from Bangladesh, closely monitors the situation. Adani Power continues to supply electricity to Bangladesh under its power purchase agreement with BPDB without interruption, thanks to a sovereign guarantee from the Bangladeshi government.
Hero MotoCorp and TVS Motor are among the Indian companies with assembly plants in Bangladesh. Bharti Airtel, with a 28% stake in Robi Axiata, also monitors developments closely. Concerns over engineering exports have been voiced, as Bangladesh is a significant destination for Indian engineering products, with a notable decline in exports and factory production levels in recent months.
S&P Global Rating remains optimistic, asserting that the crisis in Bangladesh is unlikely to significantly impact India’s overall trade position due to its well-diversified export profile.
First Published: Aug 06 2024 | 7:42 PM IST
Original Story https://www.business-standard.com/companies/news/dabur-to-marico-india-inc-takes-stock-of-losses-due-to-bangladesh-crisis-124080601467_1.html
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