After Pakistan ,Procter & Gamble to shut down Operations in Bangladesh

The impact of Procter & Gamble’s withdrawal from Bangladesh has already begun to ripple through the market, with stocks of its products rapidly dwindling as the company winds down its operations in the country.

Procter & Gamble (P&G), one of the world’s largest fast-moving consumer goods (FMCG) manufacturers, has officially terminated its contract with International Brands Limited (IBL)—its sole distributor in Bangladesh—and informed the company that the agreement will not be renewed. P&G, however, has allowed IBL to continue importing and selling its products independently.

Founded in 1994, P&G Bangladesh operated in the market for over three decades, during which it entered into a contract manufacturing partnership with local conglomerate Pran Group. The company’s decision to exit follows a similar pattern seen in other markets as part of a broader global restructuring plan aimed at cost optimization and workforce reduction.

Industry insiders, however, point to more localized factors such as operational challenges, market instability, and administrative hurdles as contributing to P&G’s exit.

Declining Product Availability

The effects of the termination are already evident. Retailers across Dhaka report that stocks of Gillette razors, Whisper sanitary pads, Pampers diapers, and other P&G products have sharply declined. Distributors, citing the end of contracts, say they can no longer supply new inventory, leaving shelves nearly empty in major supermarkets and department stores.

End of Local Production

In 2021, P&G began local manufacturing in Bangladesh through a joint venture with Pran Group’s subsidiary, Advanced Personal Care Limited (APCL). The collaboration, backed by a joint investment of $1 million, led to the setup of a production facility at Pran’s industrial park in Olipur, Habiganj. The factory, inaugurated in February 2021 by then-U.S. Ambassador Earl R. Miller, produced Gillette razors for the local market.However, just four years later, P&G has halted production and informed Pran Group to suspend manufacturing. Pran Group Managing Director Eleash Mridha confirmed that production stopped in January 2025, stating, “We were producing on behalf of P&G. The factory and machinery are ready. Once they give approval, we can resume.”

Global Restructuring Behind Exit

P&G’s global cost-cutting strategy, announced in June 2025, includes reducing its workforce by 7,000 employees and managing an estimated $1 billion increase in operational costs—partly attributed to U.S. tariff policies introduced under former President Donald Trump.

At its July 2025 earnings call, Chief Financial Officer Andre Schulten told investors that the company’s withdrawal from Bangladesh aligns with its long-term strategy to streamline operations, optimize the supply chain, and focus on higher-return markets.

Regional and Global Withdrawals

Bangladesh is not alone in witnessing P&G’s pullout. The multinational recently exited Pakistan in October 2025, following its withdrawal from Argentina in 2024 and Nigeria in 2023. In Pakistan, the company sold its soap manufacturing plant to Nimir Industrial Chemicals and shifted to a third-party distribution model—a model that may also apply to Bangladesh.

Employees affected by these changes are being reassigned to other regions or provided with compensation packages.

Industry Reaction and Economic Implications

The Foreign Investors’ Chamber of Commerce and Industry (FICCI) confirmed that P&G has withdrawn its membership. FICCI’s former president, Rupali Haque Chowdhury—also Managing Director of Berger Paints Bangladesh—remarked,

“There is a misconception that multinational companies make huge profits here. In reality, the market remains fragile post-COVID-19, with slow recovery, intense competition, and structural challenges. P&G’s exit likely stems from low returns and difficult operating conditions.”

Economists warn that the withdrawal of such a major multinational sends a negative signal to foreign investors at a time when Bangladesh is striving to attract more foreign direct investment (FDI).

Bangladesh’s FDI stock has remained stagnant in recent years—$18.43 billion in 2021, $17.87 billion in 2022, $17.83 billion in 2023, and a modest increase to $18.29 billion in 2024.

Conclusion

Procter & Gamble’s departure from Bangladesh marks the end of a three-decade chapter in the country’s FMCG sector. Once a symbol of global brand presence and manufacturing collaboration, the company’s exit reflects both global realignment and the growing difficulties faced by multinational firms operating in Bangladesh’s complex economic landscape.

As retailers run out of stock and foreign investors assess the implications, the move underscores the urgent need for Bangladesh to address the business environment challenges that continue to deter global investment.

After Pakistan ,Procter & Gamble to shut down Operations in Bangladesh