Advanced Chemical Industries (ACI) Ltd announced the establishment of a joint venture company, Colgate-Palmolive ACI Bangladesh Pvt Ltd, in partnership with Colgate-Palmolive (Asia) Pte Ltd.
The aim of the new JV is to manufacture oral care and personal care products in the country.
The board of directors of ACI Ltd 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 Tk200 crore to establish Colgate-Palmolive ACI Bangladesh Pvt Ltd.
ACI Ltd will invest Tk50 crore over a period of three years against its 24% holding in the proposed joint venture company.
Pradip Kar Chowdhury, 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 Chittagong's Mirsarai is on their choice list.
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% shares, institutes 41.27% and general investors 22.66% as on March 31, 2023.
Its share price came down to the floor price of Tk260.20 on November 20, 2022, and since then the price remained stuck there till Thursday.
