ACI approves Tk60cr fresh investment in CO-RO JV
The investment was approved at the company’s 232nd board meeting held on Monday through a hybrid system.
ACI PLC will invest an additional Tk60 crore in ACI CO-RO Bangladesh Ltd, its existing joint venture with Denmark-based CO-RO A/S, to expand the business and increase production and exports.
The investment was approved at the company's 232nd board meeting held yesterday (29 September) through a hybrid system.
The investment is subject to approval from the relevant regulatory authorities, according to a disclosure by ACI on the Dhaka Stock Exchange (DSE). ACI's share price closed at Tk182 on the DSE today (29 September).
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ACI and CO-RO A/S established ACI CO-RO Bangladesh in 2019 as a greenfield joint venture. ACI had previously invested around Tk50 crore in the venture and held a 49.9% stake, according to company information.
If the previous investment remains unchanged, the latest Tk60 crore investment would take ACI's cumulative investment in the venture to around Tk110 crore.
Mohammad Mostafizur Rahman, company secretary of ACI, 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.
He said 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 in the joint venture or whether the latest investment would change its stake.
The company has also started exporting its products on a small scale, and exports are expected to increase following the planned business expansion, he said.
The stock exchange disclosure, however, did not specify how the Tk60 crore would be used. It remains unclear whether the additional funds will be used entirely for factory expansion, production-capacity enhancement or other business requirements.
ACI CO-RO Bangladesh manufactures and markets CO-RO's Sunquick fruit drink brand in Bangladesh. The company's factory in Narayanganj was inaugurated in February 2024.
The venture was established with a combined investment of more than $20 million by ACI and CO-RO, according to earlier company information. The figure represents the joint investment in the project and should not be considered CO-RO's individual investment.
New Japanese joint venture
At the same board meeting, ACI also approved the formation of another joint venture, ACI-ICHINEN Bangladesh Ltd., with Japan-based ICHINEN Holdings Co Ltd.
The proposed company will have an authorised capital of Tk50 crore and paid-up capital of Tk15 crore. ACI will hold a 60% stake in the new venture, subject to approval from the relevant authority.
The company plans to operate in areas including human resource development and manpower supply, motorcycle retail financing and agriculture.
The new venture will add another business line to ACI's diversified portfolio as the group continues to expand beyond its traditional consumer and pharmaceutical businesses.
Financial position
ACI's financial performance has also been a key consideration for investors as the company continues to make new investments.
According to the company's financial disclosures, its revenue increased 16% to Tk3,995 crore during the nine months ended March 2026, while net profit rose 13% to Tk368 crore. Earnings per share stood at Tk41.91 and net asset value per share was Tk379.57 during the period.
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 Tk60 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.
