ACI has approved a Tk700 crore investment in its retail subsidiary ACI Logistics Limited, which operates the Shwapno supermarket chain, through the issuance of 70 lakh convertible preference shares.
The investment was approved at ACI’s 230th board meeting on July 14 and is expected to be completed by October 15, subject to regulatory approval. The move is primarily aimed at strengthening Shwapno’s capital structure and reducing its financing burden rather than simply expanding its store network.
Shwapno’s audited financial statements for fiscal year 2024-25 show that the retailer generated revenue of Tk2,650.3 crore, while EBITDA stood at Tk40.1 crore and EBIT at Tk21.38 crore. However, the company reported a pre-tax loss of Tk271.2 crore due largely to financing costs of Tk292.59 crore.
The company had Tk1,540.2 crore in inter-company borrowings and Tk539.24 crore in bank loans, putting its total borrowings above Tk2,000 crore.
Shwapno Managing Director Sabbir Hasan Nasir said the company’s core retail operations are profitable, but high financing costs have pushed the business into losses.
According to him, Shwapno became EBITDA-positive in FY2018-19 and EBIT-positive in FY2021-22. He described the current challenge as primarily a balance-sheet issue rather than an operational one.
The Tk700 crore investment is expected to strengthen the company’s equity base and help reduce its debt burden. Nasir said Shwapno could become pre-tax profitable within the next few months if its current performance continues, with full-year profitability expected the following year.
Ashikur Rahman, principal economist at the Policy Research Institute, said the investment could significantly improve Shwapno’s financial position if a substantial portion is used to repay expensive debt and reduce financing costs.
He noted that the company’s positive EBITDA and EBIT indicate that its underlying retail business is not fundamentally unviable. However, he cautioned that recapitalisation alone would not guarantee a sustainable turnaround.
Shwapno will also need to improve store productivity, inventory management, procurement, logistics, technology adoption and working-capital efficiency, he said.
Meanwhile, Japanese trading and investment company Mitsui & Co is also moving to invest in Shwapno, although the investment amount and valuation have not yet been disclosed.
Shwapno currently operates 961 outlets, many through franchise and partner-led models. The company plans to invest more in warehousing, distribution, cold-chain facilities, automation, artificial intelligence, IoT and e-commerce infrastructure to support future growth.
The retailer also plans to strengthen agricultural sourcing and connect neighbourhood grocery stores to its technology and supply-chain network.
The latest capital injection is therefore being viewed mainly as a financial restructuring initiative. Its success will depend on whether Shwapno can substantially reduce financing costs while improving the efficiency and profitability of its low-margin retail operations.
