ACI to inject Tk700cr into Shwapno operator to reinforce retail expansion

Infographics: TBS

Advanced Chemical Industries (ACI) PLC is set to inject Tk700 crore into its subsidiary, ACI Logistics Limited, the operator of retail chain Shwapno.

The decision was approved at a board meeting on 14 July and disclosed through the Dhaka Stock Exchange yesterday. Investors responded positively to the announcement, with ACI PLC's share price rising 2.31% to close at Tk207.90 at the end of the trading session.

As part of this financial restructuring, ACI will subscribe to 70 lakh convertible preference shares issued by ACI Logistics. These shares carry a face value of Tk1,000 each. According to the regulatory filing, the transaction is expected to be completed by 15 October 2026.

"The proceeds will be applied toward reducing existing debt, supporting selective capacity expansion, investing in fleet and warehouse facilities, upgrading technology platforms, strengthening backward linkages, and creating links with our agribusiness portfolio," Sabbir Nasir, managing director of ACI Logistics Ltd, told The Business Standard.

This is the second time in 2026 that ACI has moved to shore up the retail giant's capital. Earlier in January, the board approved an investment of Tk640 crore through 6.4 million convertible preference shares. 

A senior officer at ACI confirmed to The Business Standard that the previous investment has already been completed, and the new Tk700 crore injection is a proactive step to further support the subsidiary's future growth trajectory.

ACI PLC holds 76% shares in ACI Logistics, according to the company's shareholding report.

Strategic objectives

The primary goal of this massive capital infusion is to strengthen ACI Logistics' capital base, which is crucial for managing its long-term liabilities, according to company officials.

Additionally, the funds will be directed toward enhancing supply chain efficiency and inventory management.

By choosing convertible preference shares, ACI PLC maintains strategic flexibility, as these instruments can eventually be converted into common equity, allowing the parent company to manage its stake in the subsidiary over the long term, said the company.

Market insiders suggest that the move reflects ACI's unwavering commitment to its retail business, which has seen remarkable top-line growth despite macroeconomic headwinds such as high inflation and rising operating costs.

Shwapno's expansion

ACI Logistics was incorporated in 2008 with the vision of modernising goods marketing and providing a self-service shopping experience. Since then, Shwapno has evolved into Bangladesh's largest retail chain.

According to the latest data from the Shwapno website, the brand now operates 931 outlets nationwide. Its business model relies heavily on a hybrid structure, consisting of 87 company-owned outlets and a vast network of 844 franchise units, allowing it to penetrate deep into both urban and semi-urban neighbourhoods.

The brand's revenue trajectory has been consistently upward. In FY21, the subsidiary recorded a turnover of Tk1,373 crore, which nearly doubled to Tk2,650 crore by FY25. The momentum has carried into the current fiscal year, with revenue reaching Tk2,343 crore in the first nine months alone.

International partnership

The domestic capital support comes on the heels of increasing international interest in the brand. In February 2026, the Japanese global giant Mitsui & Co, Ltd agreed to partner with ACI Logistics through a foreign currency-denominated convertible loan. This facility, provided via Mitsui's Singapore-based subsidiary Mitsui & Co (Asia Pacific) Pte Ltd (MAP), is designed to bring not just capital but also global expertise in sourcing, governance, and operational excellence.

The agreement was signed in the presence of ACI PLC Chairman Anis Ud Dowla and Managing Director Arif Dowla, signalling a new chapter for the retail chain.