Home grown FMCG firm Jyothy Laboratories Ltd is ready to set up it's subsidiary in Bangladesh from April this year. The new factory will start operations from April 1, Ullas Kamath joint MD of the firm, told Business Standard. This move is expected to boost Jyothy's export revenues.
"The subsidiary is set up with Bangladesh's leading FMCG distributor Kallol Enterprises and we hold 75% stake in the subsidiary. It is called Jyothy Kallol Bangladesh ,” said Kamath. The Subsidiary has invested around Rs 12 crore in the new factory. Local manufacturing of Jyothy's products will ramp up company's presence in Bangladesh.
He indicated that Bangladesh figures out as an important country in the immidiate foreign soil plans of Jyothy.
"We should be clocking Rs 100 crore from Bangladesh in the next two years,” added Kamath.
Through this, Kamath also plans to roll out the recently acquired brands of Henkel which have a strong brand equity in the Bangladesh market. The Rs 600-crore acquisition done last year has put Jyothy in the top league of FMCG players in the domestic market.
Currently the export revenues are very miniscule to the topline of the company but this factory will help ramp up the firm's presence and boost revenues.
The maker of Ujala Washing Powder and Ujala Blue is exporting to neighboring countries, middle east and Malaysia. Over all exports contribute around 3% of its turnover.
The company is also bullish on other West Asian countries and North African countries as Kamath feels it will turn out to be one of the biggest market with such a humongous population in the years to come.
