ACI Approves Tk 60 Crore Fresh Investment In CO-RO Bangladesh Joint Venture, Forms New Japanese JV With ICHINEN

💰 Advanced Chemical Industries PLC (ACI), one of Bangladesh''s largest diversified conglomerates, has approved an additional equity investment of Tk 60 crore in ACI CO-RO Bangladesh Ltd, its existing joint venture with Danish beverage maker CO-RO A/S. The investment was cleared at ACI''s 232nd board meeting on 29 September 2026 and is subject to approval from the relevant regulatory authorities, the company disclosed on the Dhaka Stock Exchange (DSE).

📊 The fresh capital injection takes ACI''s cumulative investment in ACI CO-RO Bangladesh to approximately Tk 110 crore, given that the Bangladeshi group had previously invested around Tk 50 crore to hold a 49.9% stake in the venture that was set up as a greenfield joint venture in 2019. ACI''s share price closed at Tk 182 on the DSE on 29 September 2026, the day of the board approval.

🏛 New Japanese joint venture unveiled

At the same board meeting, ACI also approved the formation of a second joint venture, ACI-ICHINEN Bangladesh Ltd, with Japan-based ICHINEN Holdings Co Ltd. The proposed new company will have an authorised capital of Tk 50 crore and a paid-up capital of Tk 15 crore, with ACI holding a 60% stake subject to approval from the relevant authority. The new venture plans to operate in areas including human resource development and manpower supply, motorcycle retail financing and agriculture.

The dual approvals reflect ACI''s strategy of deepening its foreign joint venture portfolio while simultaneously broadening its sectoral footprint. ACI''s existing joint venture portfolio already spans consumer goods, agribusiness, pharmaceuticals and logistics, and the addition of a Japanese partner in HR, motorcycle financing and agriculture adds new verticals to the group''s diversified portfolio.

🤝 CO-RO Bangladesh background

ACI and CO-RO A/S established ACI CO-RO Bangladesh in 2019 as a greenfield joint venture with a combined investment of more than $20 million. The company manufactures and markets CO-RO''s Sunquick fruit drink brand in Bangladesh, and its factory in Narayanganj was inaugurated in February 2024. ACI held a 49.9% stake in the venture prior to the latest capital injection, having invested around Tk 50 crore in the project.

ACI Company Secretary Mohammad Mostafizur Rahman told The Business Standard that the additional investment was approved mainly to expand the company''s business. "The board has approved the additional investment for business expansion," he said, adding that CO-RO A/S is not making any fresh investment in the venture at this stage. He declined to disclose ACI''s current ownership percentage or whether the latest investment would change its stake.

👥 Exports and growth plans

ACI CO-RO Bangladesh has already started exporting its products on a small scale, and exports are expected to increase following the planned business expansion, Mostafizur Rahman said. The stock exchange disclosure did not specify how the Tk 60 crore would be used, leaving some uncertainty about whether the additional funds will be deployed entirely for factory expansion, production-capacity enhancement or other business requirements.

For investors, the key issues surrounding the latest investment will be how quickly the additional capital translates into higher production, sales and exports, as well as whether the expansion improves the profitability of ACI CO-RO Bangladesh. The absence of details on the utilisation of the Tk 60 crore and the resulting ownership structure means investors will likely need further information from the company on the project''s capacity expansion, funding structure and expected returns.

🌏 Strategic context for ACI

The new investment comes at a moment when ACI is doubling down on its diversified portfolio strategy. The group has interests spanning pharmaceuticals, consumer goods, agribusiness, motors, logistics, retail and food, and the additional capital for ACI CO-RO Bangladesh is designed to leverage the country''s growing demand for branded fruit-based beverages, which have become one of the fastest-growing segments in Bangladesh''s consumer goods market.

The decision to scale up the Sunquick maker is also significant in the context of Bangladesh''s broader food and beverage export ambitions. Bangladesh has been pushing to diversify its export basket beyond RMG, and processed food and beverages are seen as a high-potential category. ACI''s existing manufacturing base at Narayanganj, combined with CO-RO''s brand and formulation expertise, gives ACI CO-RO Bangladesh a platform to scale both domestic sales and export volumes to regional markets including India, Nepal, Bhutan and the Middle East.

The new Japanese JV with ICHINEN Holdings adds a separate growth lane. ICHINEN Holdings is a diversified Japanese group with interests spanning HR services, automotive financing, agriculture and trading. By structuring the JV with ACI holding 60% and ICHINEN holding 40%, ACI retains operating control while tapping into Japanese know-how, capital and potentially technology transfer. The proposed HR and manpower supply business could prove particularly strategic given Bangladesh''s status as a major labour-sending country to Japan''s specified skilled worker (SSW) programme.

💰 ACI''s financial position

ACI''s financial performance underpins its expansion push. According to the company''s financial disclosures, revenue increased 16% to Tk 3,995 crore during the nine months ended March 2026, while net profit rose 13% to Tk 368 crore. Earnings per share stood at Tk 41.91 and net asset value per share was Tk 379.57 during the period.

That financial headroom gives ACI the capacity to fund the Tk 60 crore additional investment in ACI CO-RO Bangladesh as well as the Tk 9 crore paid-up capital contribution (60% of Tk 15 crore) to ACI-ICHEN Bangladesh without putting pressure on its balance sheet. Investors will be watching to see whether the new investments accelerate revenue growth in the coming quarters and whether the CO-RO venture''s exports can be scaled to a meaningful contributor to the group''s overall top-line.

🤝 Looking ahead for Bangladesh''s food and beverage sector

ACI''s expansion move is one of several recent signals that Bangladesh''s processed food and beverage sector is entering a new growth phase. Domestic demand for branded fruit-based drinks, dairy products and packaged foods has been growing at double-digit rates as urbanisation and rising disposable incomes reshape consumer habits. Foreign joint ventures such as ACI CO-RO Bangladesh are particularly well-positioned to capture this growth, given their access to international brands, formulation expertise and quality control standards that domestic-only players often struggle to match.

For Bangladesh''s broader investment climate, the fresh ACI capital injection also signals continued foreign investor confidence in the country''s consumer goods sector. Despite macroeconomic headwinds including inflation, dollar shortages and weak private credit growth, large domestic conglomerates such as ACI are continuing to deploy capital into joint ventures with foreign partners — a positive signal for foreign direct investment (FDI) inflows into the food and beverage segment.

The board approvals are subject to clearance from Bangladesh''s regulators, including the BSEC for any related listed-company disclosures and the relevant authorities for foreign investment formalities. Once cleared, ACI is expected to begin deploying the additional capital in ACI CO-RO Bangladesh in phases, with capacity expansion at the Narayanganj facility likely to be a primary focus.