Written by The Banking Post
Advanced Chemical Industries (ACI) has approved another Tk 7 billion investment in its retail subsidiary, ACI Logistics, as the conglomerate steps up efforts to strengthen Shwapno, the country’s largest organised grocery retail chain.
According to a stock exchange filing published on Wednesday, ACI’s board approved the investment through the subscription of 7 million convertible preference shares, each with a face value of Tk 1,000.
The investment is expected to be completed by October 15, subject to regulatory approval.
The latest funding comes just months after ACI approved a Tk 6.40 billion capital injection into the same subsidiary, taking its total commitment to Tk 13.4 billion this year.
The additional investment comes despite pressure on ACI’s consolidated financial performance over the past three years.
The listed conglomerate reported consolidated losses in FY23, FY24 and FY25, mainly due to higher borrowing costs and losses at several subsidiaries. Its cumulative consolidated losses during the three years amounted to Tk 2.54 billion.
In FY25, ACI posted a consolidated loss of Tk 650 million. However, its standalone business remained profitable, with net profit rising 19 per cent year-on-year to Tk 3.99 billion, supported by the performance of its core operations.
The group’s financial performance improved significantly during the first nine months of FY26. Consolidated net loss narrowed to Tk 71.22 million through March, nearly one-eleventh of the loss recorded in the corresponding period of the previous year, driven by double-digit revenue growth across key business segments.
Shwapno currently operates more than 836 outlets nationwide, making it Bangladesh’s largest organised grocery retailer. Industry analysts expect organised retail chains to benefit from rising urbanisation, changing consumer behaviour and growing demand for modern grocery shopping.
A senior ACI official said the company chose to finance the subsidiary through convertible preference shares instead of additional bank borrowing.
“This structure strengthens the subsidiary’s capital base without immediately increasing its debt burden. It also provides flexibility to convert the investment into equity in the future while improving its financial position for raising additional funds if required.”
Following the announcement, ACI shares rose 2.31 per cent to close at Tk 207.90 on the Dhaka Stock Exchange on Wednesday.
