Está en la página 1de 88

COMPANY PROFILE

Lafarge Surma Cement Ltd. (LSC) was incorporated on 11 November 1997 as a


private limited company in Bangladesh under the Companies Act 1994 having its
registered office in Dhaka. On 20 January 2003 Lafarge Surma Cement Ltd. was
made into a public limited company. The Company is listed in Dhaka and
Chittagong Stock Exchange. Today, Lafarge Surma Cement Ltd. has more than
10,000 shareholders.

In November 2000, the two


Governments of India and
Bangladesh signed a
historic agreement through
exchange of letters in order
to support this unique cross
border project and till date
it is the only cross-border
industrial project between
the two countries. Since
Bangladesh does not have any commercial deposit of limestone, the agreement
provides for uninterrupted supply of limestone to the cement plant at Chhatak in
Bangladesh by a 17 km long belt conveyor from the quarry located in the state of
Meghalaya. The company in Bangladesh, Lafarge Surma Cement Ltd. wholly
owns a subsidiary company Lafarge Umiam Mining Private Ltd. (LUMPL) being
registered in India, which operates its quarry at Nongtrai in Meghalaya.

The project with an investment of USD 280 million, which is one of the largest
foreign investments in Bangladesh, has been financed by Lafarge of France, world
leader in building materials, Cementos Molins of Spain, leading Bangladeshi
business houses together with International Finance Corporation (IFC – The World
Bank Group), the Asian Development Bank (ADB), German Development Bank
(DEG), European Investment Bank (EIB), and the Netherlands Development
Finance Company (FMO).

Lafarge Group, with 176 years of experience, holds world’s top-ranking position in
Cement, Aggregates, Concrete and Gypsum. It operates in 78 countries with
around 78,000 employees. Lafarge is named as one of the 100 Most Sustainable
Companies in the World. Cementos Molins of Spain, with 75 years of experience,
also operates in Mexico, Argentina, Uruguay, and Tunisia.

Now, after two years of production operations, the Company is producing world
class clinker and cement which is a demonstration of the sophisticated and state-of-
the-art machineries and processes of the Company’s plant at Chhatak. The
Company is already meeting about 8% of the total market need for cement and
10% of total clinker requirements of Bangladesh market whereas the Company
continues to enjoy strong growth rates. By supplying clinker to other cement
producers in the market, the Company contributes some USD50~60 million per
annum worth of foreign currency savings for the country. The Company
contributes around BDT 1 (one) billion per annum as government revenue to the
national exchequer of Bangladesh. About 5,000 people depend on business directly
or indirectly for their livelihood. The Company believes that cement is an essential
material that addresses vital needs of the construction sector. The Company is very
much optimistic to meet the growing needs for housing and infrastructure in the
construction sector of Bangladesh.
History

The history of Lafarge Surma Cement makes an interesting corporate saga worth
writing a book. Throughout the 80s, the country demanded massive infrastructure
development. The construction and real estate business were booming and the
imported cement was not feasible due to varied reasons - interrupted supply, poor
quality, insufficient quantity, higher price, etc.

During early 90s, a Bangladeshi visionary masterminded to set up a cement


company at the North East side of Bangladesh for some strategic reasons -
sourcing of raw materials from Meghalaya, access to the river (Surma), and
prevailing road and railway transport network for logistic issues. After this
visionary conducted the techno-economic feasibility study, he started the
formalities for project development in both Bangladesh and in India, registered the
project with BOI, and started the process of land acquisition and environmental
clearance in Bangladesh. At this juncture, this mastermind passed away in 1995
and his predecessor decided to bring a joint venture partner in the cement project to
ensure that the partner brings, apart from the required financing, the required
knowledge, know-how and the technology of cement production which was rarely
available in Bangladesh. In the process, now world's number one cement
manufacturer Lafarge of France came in to the project as a majority shareholder
and took over the management of the project in terms of designing, financing,
construction and operations of the project. In 2002, another multinational cement
producer Cementos Molins of Spain joined Lafarge Surma Cement as an equal
equity partner.
World Wide

Lafarge Surma Cement Ltd. (LSCL) is an integrated cement manufacturing


company in Bangladesh. Lafarge Group of France, one of the world leaders in
building materials is the majority shareholder of LSCL. World leader in building
materials, Lafarge holds top-ranking positions in each of its business lines. With a
diversified and balanced geographic portfolio and 76,000 employees in 78
countries, Lafarge is at the heart of global growth supporting developing
economies and responding to the tremendous need for housing and infrastructure in
emerging countries.

In an environment that proved to be challenging for the building materials sector,


Lafarge teams focused on reinforcing the solidity of the Group. They continued to
implement their capacity increase program in emerging countries with 12 million
tonnes started up in Africa, Middle East and Asia. They also pursued their non-
strategic assets divestment program, securing 550 million euros of disposals during
the year, exceeding the original target of 500 million euros. Meanwhile, they
managed to strengthen their asset base in some growing markets, such as Central
Europe and Brazil, through no cash operations such as partnerships and asset swap.
Finally, they proved their ability to reduce their costs and limit their investments.
The steps that they took in 2010 favorably position the Group to benefit from
growth in 2011.They also remained focused on their safety and performance
objectives. They were ranked sixth in the “Carbon Disclosure Project” and entered
the global “Dow Jones Sustainability” in 2010 in recognition of their sustainable
development action. With first signs of recovery materializing at the end of the
year, they enter 2011 with more optimism. For the first time since 2008, volumes
increased in the last quarter of 2010, providing a strong indication for their
business.
Business
Lafarge Surma Cement Ltd. is a majority owned subsidiary of Lafarge Group of
France. The Lafarge Group is a global market leader in construction materials.
With Euro 5.4 Billion in revenue, it is one of the largest manufacturers of cement
by shipped volume. Lafarge is the largest producer of cement and among the top
three producers of aggregates, concrete and gypsum in the world. Lafarge is traded
on the Paris Stock Exchange and has a market cap of Euro 13.7 Billion. Through a
wholly owned subsidiary, Surma Holding, Lafarge owns majority (59%) shares of
Lafarge Surma Cement Ltd. The other institutional shareholders are IFC, ADB,
Sinha Fashions and Islam Cement.
Lafarge Surma Cement Ltd was incorporated in Bangladesh in 1997. The
production facilities are located in Chattak in the Sunamganj district in Northeast
Bangladesh bordering the Indian state of Meghalaya. The production facilities
consist of a dry process cement plant with a 1.5 million metric ton (MMT) capacity
and a clinker production line of about 1.2MMT capacity. Lafarge Surma Cement
Ltd also operates two subsidiaries in the Indian state of Meghalaya. Among these
two, partially owned (75%) Lum Mawshun (LMMPL) holds the mining rights with
two local partners, and wholly-owned Lafarge Umiam Mining (LUMPL) carries
out the mining operations. Limestone and shale are mined at the quarry and
transported across the international border by a 17 kilometer long conveyor belt.
The project has a 30 MW captive power plant that ensures uninterrupted energy
supply.

Lafarge Surma Cement Ltd markets its cement under the brand name of
Supercrete. It produces general purpose cement that can be used with different
kinds aggregates for various purposes. This product passes all local quality
standards. The company markets its product in 50KG bags. Because of a
perception of higher quality of Lafarge products, a 50KG bag of cement receives a
BDT.15.00–BDT.30.00 premium on average over cement produced by local
competitors.
Shareholders & Investors
The Company is fortunate to have a blend of both international and local
shareholders. The international shareholders of Lafarge Surma Cement Ltd. bring
in technological and management expertise while the local partners provide deep
insights of the economy of Bangladesh. The shareholders believe that growth and
innovation must add value, not only for the Company, but also for customers,
whom the Company serves through modern and well-located production facilities
as well as innovative and reliable products.

Composition of the Shareholders

Surma Holdings B.V.

Surma holding B.V. was incorporated in the Netherlands, which owns 58.87% of
Lafarge Surma Cement Ltd. Lafarge Group of France and Cementos Molins of
Spain each owns 50% share of Surma Holding B.V.

LafargeGroup

One of the major sponsors, Lafarge Group holds world’s top-ranking position in
Cement, Aggregates & Concrete and Gypsum, with about 78,000 employees in 78
countries. Lafarge was founded in France in 1833. Through the years since its
inception, it has been growing steadily to take lead in the production of different
kinds of construction materials and has established itself as the world leader in
construction material business. In 2010, for the sixth consecutive year, Lafarge has
been listed as one of the 100 most sustainable companies in the world.

CementosMolins

Another major sponsor, Cementos Molins, based in Barcelona, Spain, is a


renowned cement company founded in 1928. With over 75 years of experience in
manufacturing cement, Cementos Molins has industrial operations also in Mexico,
Argentina, Uruguay and Tunisia. Besides Lafarge and Cementos Molins as major
sponsors, the equity partners are Asian Development Bank (ADB), International
Finance Corporation (IFC) and Islam Group and Sinha Group from Bangladesh.
The financiers to the project include Asian Development Bank (ADB),
International Finance Corporation (IFC), German Development Bank (DEG),
European Investment Bank (EIB), the Netherlands Development Finance Company
(FMO) and local Standard Chartered Bank and AB Bank Limited. In addition to
that Citibank N.A., HSBC, Commercial Bank of Ceylon PLC, Uttara Bank
Limited, The Trust Bank Limited, Eastern Bank Limited have participated in
working capital management of the Company.

PRODUCT
Market
According to the long-term industry forecasts made by global authorities, high
spending on infrastructure projects and growing demand for housing units will fuel
the Bangladeshi cement industry. Cement is already an astonishing $1.2 billion
industry in Bangladesh, growing steadily at 1.5 to 2 times the GDP growth. The
per capita cement consumption now is only 75 kg in Bangladesh (as compared to
that of the developed countries where it is a staggering 1,000 kg). This means the
cement industry possesses a great opportunity for growth in terms of volume,
revenue and employment generation, contributing significantly to economic
growth in Bangladesh. Despite having more than 30 active players inclusive of
both locals and multinationals, the market is dominated by only a few. Two-thirds
of the cement consumption is skewed towards Independent Home Builders (IHB)
with high Pucca concentration in the major cities. Real Estate and Government's
development expenditure would stand next to the IHBs on consumption. The
capital, Dhaka would consist of almost half of the total industry consumption. As
cement is still technically an engineer's product for its various applications, it is not
understood well enough by most of the end users. There are many misconceptions
in the market regarding cement quality, strength, color, etc. The most common
myth is that the strength of a construction is directly related to the strength of a
cement product. The fact is that the strength of a construction will depend on a
number of factors like the mix design, engineering design, the load distribution, the
quality and the standard of the material used etc. Therefore, Supercrete puts a lot of
emphasis on educating the consumer group through various meets, seminars,
workshops etc. for better usage and understanding about the quality and the
parameters of construction. Supercrete is multi-purpose cement that works well for
any construction (depending on the mix design) from foundation to plastering.

Achievements
The Lafarge Surma Cement plant in Chhatak, Sylhet is an iconic model of
engineering advancement. Its17km Long Belt Conveyor (LBC) is a global
phenomenon and is a one of its kind cross-border overland single flight conveyor.
This state-of-the-art facility still amazes the construction maestros and has set a
model example for many projects undergoing worldwide. Supercrete is determined
to hold its premium quality through real-time online production report to Lafarge
Group's Asia Technical Centre, with the head quarter located in Malaysia. While
the dedicated experts in the business are concentrating to provide customers with
the best product and services, the high end machinery automatically tests and sends
results against strict adherence parameters to ATC every hour. This is free from
any human interference or errors. These combined efforts enabled LSC to

 Capture a market share of 8% in 2008 from 4.5 % in 2007, within a year of


its inception
 Obtain the No.1 rank in overall customer satisfaction rating, independently
surveyed by Research International, India
 Be awarded as the Best Plant in Lafarge Group globally for Clinker to
Cement Ratio Improvement
 Achieve award for best mine safety from the State of Meghalaya, India.

Product
Supercrete is a premium cement brand made for multi-purpose applications,
namely - foundation, beam, column, slab masonry, plastering works, etc. This
cement is purely limestone based, free of fly-ash or slag, unlike other cements in
the country. Limestone allows better workability and a stronger bond. Supercrete
cement is already known for its light color, giving the construction a remarkable,
elegant look. Any construction work that used Supercrete is identifiable with bare
eyes. Supercrete is preferred by most customers for another reason - it’s early
setting time. A special formulation allows Supercrete to set faster, i.e., the desired
strength is achieved earlier with Supercrete than with any other cement in the
country, help into reduce the construction duration and hence reducing cost. This
cement also demands less water to mix. Supercrete mix is richer and denser
allowing a better bonding when used with different types aggregates.. Being a
limestone cement, Supercrete production emits less carbon and consumes less
energy than other cements, hence is also a more environment friendly choice. By
purchasing Supercrete, consumers contribute to a greener world. The company
deploys best of the industry to lead various functions of the business, while the
customer serving technical team comprises a number of skilled civil engineers who
ensure that global expertise is provided to the customers and the service quality is
maintained at its true international standard, as always.

Recent developments
Supercrete comes in 50 kg packs, like other packs in the market. The new Ad star
bags are stronger and ensure better storage performance. The company's
countrywide supply chain is an enviable marketing and distribution network that
comprises regional depots, a group of selective and able distributors and retailers
allowing Supercrete to reach anywhere in the country, to anyone asking for a
superior product to build his or her dream house.
Promotion
Due to its pedigree and well defined communication platform, Supercrete has
already made its place in the market. Besides promoting itself, Supercrete also
associates to construction related educational programmes at various levels - from
universities to engineers at the government level. The company frequently arranges
techno-seminars for individual home builders, engineers of various government
agencies, retailers, independent masons, and many others. LSC strongly believes
that business is a priority but social welfare is a responsibility. This is a key for
sustainable development. Thus, it has wide ranging community development
activities around its plant at Chhatak and its quarry in Meghalaya. LSC has
provided sanitation wares to two hundred (200) families in remote villages near the
plant at Chhatak. It also provided arsenic filters to all the project affected families
to ensure access to safe drinking water. There is also a qualified physician and a
nurse available everyday to provide free medical assistance in a medical clinic at
the Community Development Centre at Chhatak. Satellite clinic sessions are also
held periodically in remote villages taking health-care services to the doorsteps of
the villagers. LSC also set up a school named as "LSC Community Welfare
School" which offers free education up to class five. There is also a library at the
school complex where school children now get the opportunity to read different
kinds of books which are very important for their general knowledge development.
Once living as dependent housewives, women at Chhatak now have sufficient
opportunities for empowerment through income generating activities on poultry
rearing, sewing, kitchen gardening, candle making and even on shop-management,
with necessary vocational training and start-up capital provided by LSC. Apart
from the above, LSC has always been on the forefront in responding to the needs
of the disadvantaged people at the trying times. During the winter, LSC distributed
blankets among the affected and disadvantaged people at Chhatak and Kutubpur. It
also donated 500 tonnes of cement for the rehabilitation of the Nimtoli victims.
LUMPL, the Indian subsidiary of LSC, has also undertaken wide ranging
community development activities in the field of healthcare, education,
infrastructure development, water supply scheme and development of livelihood in
the villages surrounding the mining site in Meghalaya especially at the villages of
Nongtrai and Shella.
Brand value
Supercrete's promise is to build a greener and safer Bangladesh. With this objective
in mind, Supercrete sets its standards of reliability, confidence, and safety culture
throughout its businesses with customers, stakeholders, contractors, vendors along
with durable constructions that ensure a secured shelter for a lifetime. Supercrete
wants to be a partner of your safe and healthy prosperous life, where only good
decisions are taken all the time, and such decisions pay the dividend even for the
next generations to come.

Health and Safety


The importance of safety, health and well-being of our
employees and business partners can never be overstated;
Lafarge Surma Cement Ltd policy on Health & Safety is
based on the corresponding policy Lafarge Group and
Cementos Molins, and is adapted to the conditions in local
context.

Health & Safety is the number one priority of Company.


Ensuring health and safety of the employees and the
contractors is always a challenge and they are proud to say
that your Company is winning that challenge more and more.
Since its inception, for the first time in 2009, your Company
achieved a lost time injury (LTI) free year while continuing
our production operations. In 2009, they undertook many
programmes to continue their improvement in the field of
“Safety Behavioral Change” within the Company and among
its contractors’ personnel. The month of March 2009 was
observed as the “Near-Miss Incident Reporting Awareness Month” to improve
reporting of near-miss incidents with an objective of eliminating accidents. The
month of June 2009 was observed as the “Safety Month” with a theme of
“Improving Our Safety Behavior”. Many posters on core safety issues were posted
at the plant, terminal and head office, and different video presentations, quiz
competitions, PEP talks and training sessions were conducted to improve the safety
awareness of the employees and contractors. Enthusiastic participation by both the
Company and contractors’ personnel made the Safety Month a great success.

Your Company’s ambition is to be a leader in the field of Health and Safety and
with that aim in mind an Annual Health & Safety Plan for 2010 is under
implementation. This plan is constructed in line with world class Standards,
Advisories and Priorities in such a way, so that a unique visible change can be
achieved to make your Business Unit as one of the best Business Units. We are
committed to ensure the best possible healthy and safe work environment for the
employees and contractors of the Company.

Corporate Social Responsibility:

Lafarge Surma Cement Limited is committed to contribute to sustainable


development by ensuring economic competitiveness together with actions to
strengthen the society and preserve the environment. As clearly stated in its vision,
the Company integrates the responsibility towards the stakeholders in its
management and operations.

Your Company makes continuous endeavors to earn the support and trust of all
stakeholders, the most important one being the people living near its operation
areas. It works in partnership with the local communities to address their concerns
and also to help them in their socio-economic development pursuits. The Company
wants to be regarded as a good neighbor by the local community and hence, it has
in place an effective Community Development Program which envisages
appropriate efforts to bring about a "positive change" in the life style of the local
people. The program provides opportunities for non formal education of the
children, health-care of all Project Affected People, vocational training for women
and sports and cultural activities. All these activities have already begun to show
signs of improvement among the people in the vicinity of the cement plant at
Chhatak and the quarry in Meghalaya.

The health-care program has given a big relief to the local community. They can
now depend on a qualified physician within their periphery to receive treatment for
their illnesses. Besides, the physician along with medicines organizes satellite
clinics in remote villages along the long belt conveyor to take Medicare to the
doorsteps of the villagers. Medicines are given free of cost, while regular advisory
sessions are held for women on topics related to nutrition, family planning etc. The
Company also organizes eye camps and campaigns on immunization.
Welfare program
Lafarge Surma Cement Limited runs to welfare for the society. They help every
corner in Bangladesh. Some Top Newspaper News publish their history of welfare
program.
Company Overview:
Heidelberg Cement Bangladesh is one the largest producers of quality cement
in Bangladesh. Heidelberg Cement Group from Germany, one of the world’s
leaders in construction and building material with operations in more than 50
countries, owns 61% shares of the company. In 1998 Heidelberg Cement Group
established its presence in Bangladesh by setting up a floating terminal with on
board bagging facilities in the port of Chittagong and by distributing the
cement to the key markets of Dhaka and Chittagong. In 1999 the group further
strengthened its position in Bangladesh and built a green field manufacturing
plant near Dhaka namely “Scancement International Limited” with an installed
capacity of 0.750 million tons per year. In 2000 Heidelberg Cement group also
bought a minority position in Chittagong based company namely “Chittagong
Cement Clinker Gridding Co. Limited (CCCGCL)” quickly followed by the
acquisition of a in controlling stake. The plant in Chittagong has an installed
capacity of 0.7 million ton per year. In 2003, the two companies were
amalgamated and the company’s name was changed to Heidelberg Cement
Bangladesh Limited.
Corporate Mission:

The Corporate Image: Building worldwide growth by building a better world.


Business Culture: Building on local responsibility for international success
Employee Policy: Building our business on the knowledge of our people
Market Strategy: Building our growth on a solid base of earnings
Customer Philosophy: Building customer satisfaction
Quality Standard: Building on quality products to build reputation
Commitment to Innovation: Building on new technologies determines our
future success
Brief History

Chittagong Cement Factory one of the pioneer cement industries in the


country was established in 1966 and was placed under control and
management of Bangladesh Mineral Oil and Gas Corporation and
subsequently of BMEDC. The factory was converted into and
incorporated as a private limited company on 30 June 1979. Thereafter
the company converted into a public limited company in February 1989
with the shareholding of 51% by Bangladesh Chemical Industries
Corporation (BCIC), 34% by General Public and 15% by officers, staff
and workers of the company. Under the privatization policy of the
Government, BCIC sold and transferred its 51% shares to Local
investor’s on 27 June 1993.

HCBL is subsidiary of Heidelberg Cement Group in Germany with a 61%


stake in the entity. Heidelberg Cement Group with interests in cement,
ready-mixed concrete, aggregates and related activities is one of the
leading producers of building materials worldwide with manufacturing
bases in over 50 countries.

In 1998, Heidelberg Cement Group started its operations in Bangladesh by


setting up a floating terminal in the port of Chittagong and distributing the
cement to the key markets of Dhaka and Chittagong. Subsequently it built a
green field manufacturing plant “Scan cement International Ltd” and acquired a
controlling stake in the formerly state owned Chittagong Cement Clinker
Grinding Co Limited (CCCGCL). In 2003, the two companies were
amalgamated and the company’s name was changed to HCBL. HCBL currently
operates two plants with a total annual capacity of 2 million tons of cement,
offering multiple blended cement options like Ordinary Portland Cement
(OPC), Portland Composite Cement (PCC) through its two cement brands Scan
and Ruby Cement.
Heidelberg Cement Bangladesh Ltd, one of the group companies of Heidelberg
Cement Group, founded in Germany in 1873, with its core products being
cement, ready-mixed concrete, aggregates and related activities, is one of the
leading producers of building materials worldwide. The group employs around
43,000 people in more than 50 countries.
Environmental Policy

Heidelberg Cement Bangladesh Limited Protection of the environment is an


integral part of Heidelberg Cement Group’s strategy. As natural resources are the
basis of cement, measures for sustainable environmental care are adopted in all our
operations. In Bangladesh, our policy is to produce high quality cement, optimize
operations to save on natural resources and prevent pollution in order to create a
cleaner and safer environment.

Products & Innovation

Portland Composite Cement (PCC)

As part of its relentless pursuit for innovation and


constant drive to improve quality, Heidelberg
Cement has introduced Portland Composite
Cement (PCC) during 2003. Absorbing European
Norms in cement producing made Heidelberg
Cement Bangladesh Ltd. the pioneer in this
sector. Now-a-days all the cement factories of
Bangladesh are producing cement as per
European Norm. The category Portland
Composite Cement (CEM II) is the market leader
in Europe.

Cement produced according to the BDS EN

Scan Cement and Ruby Cement are designed to achieve the best characteristics for
its customers; this result is achieved by design using clinker and high quality other
constituents. PCC has the optimum of: Durability, Long-term strength and
workability. Scan Cement and Ruby Cement are produced according to the
European norms BDS EN 197-1:2003.
Characteristics of Scan Cement / Ruby Cement:

Higher Strength:
Scan Cement and Ruby Cement have higher long-term strength
than a standard Portland Cement (OPC). The slag part in the
design contributes that the gap in long-term strength with OPC is
widening as time progresses.

Higher Durability:
The design of Scan Cement and Ruby Cement increases the density of concrete
(lower permeability). Smaller voids are the effect of the reaction between the
clinker and the slag. This density contributes to the durability and lifetime of the
construction.

Better Workability:
To improve the quality of plaster and masonry work Limestone is added to the
design of Scan Cement and Ruby Cement. This improves strongly the workability
of the concrete. Plastering will look smoother, better and more beautiful. The
concrete is easier to use.
Other Improvements:
On top of the above-mentioned improvements Scan Cement and Ruby Cement
reduces thermal cracking. Due to the slag in the design less heat is generated which
reduces the risk of thermal cracks. Furthermore our brands use less water to
achieve the required workability. This contributes to the strength and quality of the
construction.

Corporate Social Responsibility


Heidelberg Cement Bangladesh Limited is deeply committed to the people, society
and country where it operates. On the way to becoming the top player in our
industry we have put a clear focus on customers, employees, social and
environmental awareness building, safety and health issues and many more.

HCBL has allocated 50,000 US dollars


On 9 August 2007, Managing Director, Mr. Jean-Claude Jamar handed over a
cheque of Tk. 1 million to the Honorable Chief Advisor, Mr. Fakhruddin Ahmed at
the CA's Office.
Food Relief for Flood Affected People
HCBL has started its relief operation for flood-affected people from 8 August
2007.
HCBL sets up Medical Camp.
HCBL has set up free mobile Medical Camps with the assistance of Shakti
Foundation.
Donation for Land Slide victims at Chittagong
Heidelberg Cement donated Tk. 2 lacs to the government for the Land Slide
victims at Chittagong.

Mission
1.The Corporate Image:
Building worldwide growth by building a better world

2. Business Culture:
Building on local responsibility for international success

3. Employee Policy:
Building our business on the knowledge of our people

4. Market Strategy:
Building our growth on a solid base of earnings

5. Customer Philosophy:
Building customer satisfaction, because their success is our success

6. Quality Standard:

Building on quality products to build our reputation

7. Commitment to Environmental Protection:


Building on environmental care also makes economic sense

8. Commitment to Innovation:
Building on new technologies determines our future success
Products
1. Cement (Scan cement & Ruby cement)
2. Ready-Mixed concrete
3. Aggregates

Geographical Spread and Customers:


Heidelberg Cement has divided their business in 6 divisions in Bangladesh. They
have two main branches in Dhaka and Chittagong. They have also sales agents in
other four divisions. But most of the sales generate from Dhaka and Chittagong
divisions. Then Sylhet and sales in other 3 divisions are approximately same. They
do not have any physical export of goods. If they sell goods to EPZ area and if they
get paid in dollars, this is termed as export. The overall market share of
Heidelberg Cement is 13%. The industry saturated. Still they have chance to gather
more market share in the industry. They are facing some restriction because they
are multinational company.

They have 3 types of customers:

1. Dealers

2. Corporate customers (e.g. developers, contractors)

3. Government projects (e.g. Mohakhali Flyover, Lalon Shah Bridge, Karnafuli


Bridge, Banani Bridge)

Except these they have also very few retailers who are very close to them. But
usually they do not deal with retailers.
Collection Procedure:
Checks/pay order:

Most of the time, they receive payments through checks. They also receive
payments by pay order which is very limited. Generally, they do not allow any
other ways of payments. They don’t have any cash transaction.

Collection Points, Concentration Banks, Deposit banks, Lock Box:

There are collection points. The customers pay through the local branches of
Dhaka Bank, Dutch Bangla Bank and Mercantile Bank. These banks work as
collection points. As these local banks have lots of branches in Bangladesh it helps
a lot in collection process. Through the online banking system the money from
these local Banks are easily accessible from the principal branch. Then Heidelberg
cement collects money from these banks and deposited in the Standard Charted
Bank and City N.A bank. 95% of collected money is deposited in Standard Charted
Bank and rest of the 5% is deposited in City N.A. bank are. Here Standard Charted
Bank and City N.A. bank are used as concentration banks. They transfer the money
from the collection bank at the end of the month whether the money is collected at
1st week of the month. Because they have ample money in hand they are lazy to
transfer the money at concentration banks. But they are very efficient in collecting
the money from customers in due date. Because of having no lockbox system in
Bangladesh, they do not use lockbox system. As there group policy they have
restriction on depositing money in local banks. The local banks are usually
responsible for collecting payments.

Cost:

In standard chartered and City N.A the service charge is little higher than the
service charge taken by other banks. Banks are responsible for disbursing
payments, handling LC, payment of salary etc. There is very low risk, because they
follow some strict laws like:

• They do not give dealership without bank guarantee.


• They follow conservative credit policy.
• They encourage cash sales.
On an average their credit term is of 18-20 days. In government projects their
credit term is usually flexible.
Cash Disbursement Procedure:
Suppliers:

There are mainly two groups who receive money from the Heidelberg cement. One
is the Raw material suppliers and then another is the suppliers of different utilities.
The raw material suppliers are mainly the subsidiary of Heidelberg Group.
Generally they take raw materials from Indo Cement; Indonesia, Heidelberg
Cement; India and Heidelberg Cement; Japan.

Payment Methods, Disbursement Banks:

They are mainly importing raw materials. So they pay through LC. They do not
have any cash payments. They pay through Standard Charted Bank. The Standard
Charted Bank works as disbursement bank and processes all the formalities.
Sometimes City N.A also works as a disbursement bank.

Authorization:

They follow centralized Disbursement policy. All checks are signed in the Head
quarter. Payments are made through mainly finance department. If the payment is
less than $6 million, it needs the joint signature of head of finance department and
in group B consist of three directors from them any one have to sign. But if
payments exceed $6 million it needs joint signature of finance department and
Manager Director.

Float:

Although directly they do not take the help of floating, sometimes they try to write
check on Wednesday/Thursday. As a result, payments cannot be transferred to
suppliers Banks before Sunday. In directly they are taking the advantage of
inefficient banking system in Bangladesh.

Credit Policy:

Normally they have a conservative credit policy. They are not willing to flexible
their credit policies to increase their sales & revenue. They cannot provide smooth
credit policy, because as a MNC they cannot collect payments by pressure. Also
they have to maintain some Government rules and regulations. They usually
emphasize on quality, as a result they maintain premium price. They have to go by
the law. That’s why they are not investing that much in A/R. They are not willing
to increase the risk. When collecting payments, they give two warnings after
exceeding the credit limit. If they fail to collect payment despite these, then they
realize the bank guarantee.

They provide up to 60 => days of credit limit to Government Projects, 30 days to


corporate customers. But they maintain more strict credit policy to the dealers,
because of reliability. They give credit to the dealers only if they can give bank
guarantee. Only to the renowned developer’s they sale on credit. They have credit
term on average of 18-20 days.

Working Capital Needs:

They are very efficient in cash management. That is why they have enough cash to
finance working capital. Also they have huge idle money. They cannot deposit all
portions of money in banks. As a result, they finance the working capital
requirements by internal sources. Sometimes they also take loan from the
subsidiaries of Heidelberg group. They took loan from Meghna Energy Limited
which is the subsidiary of Heidelberg group too. But at present (2009-2010) they
are not taking any short term loan. As they are multinational company they cannot
remit money in parent company without the help of dividends. So every year they
are having huge retained earnings in their account. With that money they are
financing their short term needs. Also with the help of high tech software’s they
had become more efficient in managing the business. They are remitting money as
technical knowhow fees which is 3% of prior year’s net sales.

Heidelberg group helps a lot to their subsidiary in terms of technology, experience


etc. As they are more capable of internal financing in 2008 they don’t have any
long-term loans.

Collection Method:

HCBL has some Paper information flow attached to invoice. This attachment
contains the Order size, order no, time of delivery and the date of payment. The
payment is made to the Collection Bank and the dealers get the receipt from the
bank. Because the checks are account payee checks, so they can easily track which
customer paid the payment. The company by the time get knows about the
payment by ERP software which is connected with Banks. The bank process the
payment system and it takes a little time for the company to get notified and
deposited because all party are connected through ERP software. Bank processing
fees are the cost involved in this Process. If the payment is not made by the dealers
they realized the bank guarantee after giving two warnings. Basically Credit policy
for Government projects are flexible than the usual customers.

Share Holding Position


Technical Support

The Company has been supporting the end users through its 130 years global
experience with local responsibility. There is a technical team consisting of a group
of young and energetic technical person lead by a well- experienced concrete
technologist.

Heidelberg Cement commitment to innovation on new building technologies


determines it’s future success. Based on that mission for the first time in
Bangladesh HEIDELBERGCEMENT GROUP introduced an exclusive advisory
cell “Hello, Bhalo Basha” with a view to provide house building pros & cons
information and construction guidance.
Meghna Cement Mills Ltd is the first manufacturing unit of Bashundhara Group
and it is one of the largest cement industries in the country producing nearly 1
million metric tons a year. The Meghna Cement Mills Ltd is an International
Standard Organization (ISO 9001: 2008) certified company having accreditation of
manufacturing products for both domestic and international markets. The company
is listed with both Dhaka and Chittagong Stock Exchanges, the two bourses of the
country since 1995 and 1996 respectively. The company markets its product under
the registered trade mark "King Brand Cement".

This organization was established in 1992 on


the bank of Pashur River and in the industrial
zone of Mongla Port on 9.83 acres of land to
produce Portland cement. MCML has an excellent communication facility
connecting all parts of the country through river and roads.

The industry enjoys a unique facility in cargo handling both in receiving raw
materials and in dispatching finished product through its own 02 nos. of jetties
suitable for berthing sea going vessels. At present the production capacity of
MCML is approx. 1.0 million MT/annum.

Vision
To significantly contribute to the sustainable development and growth of our
country towards its journey for better and prosperous future.
Mission
To be the leader in the cement sector of the country by rendering quality products
and services through maintaining high standards in business operations and to
bring fullest satisfaction to our valued shareholders, customers and employees.

Production Technology

There are 4 nos. of grinding mill in MCML having


production capacity of 3000 MT/ day and these mills are
equipped with high efficiency separator to segregate fine
particle from the coarse one. The dimension of each of the
02 (two) mills is 3m diameter x 9m length (production
capacity 30 TPH) while the each of the rest 02 is 3m
diameter x 11m length (production capacity 40 TPH).

Production and Packaging

There are 4 nos. of cement silo for cement storing purpose in MCML, where the
capacity of each of the first 02 silo is 3500 MT while the capacity of each of the
rest 02 is 5000 MT. Cement is extracted from the cement silo through extraction
system which consists of roots blower, inlet box, pneumatic shut off valve, flow
control valve etc. which are controlled from the control room of the pack house.
There are 2 nos. of roto packer having packing capacity of 100 MT / Hr. and
110 MT / Hr. respectively. These packers are the equipments of modern
technology where weighing system of the delivered cement sack is fully electronic
based to ensure proper weight of every sack of cement.

Mainly paper made cement sacks are preferred for filling purpose although small
percentage of poly sack are also used based on the consumers’ demand. It may be
mentioned here that, the paper sacks are manufactured by the Sack plant of BG.
Delivery Control System:

There exists 02 modes of cement delivery system i.e. road delivery and vessel
delivery available in this plant. To prevent bag bursting while loading in vessel
one spiral chute has been designed with the barge loader.

To ensure smooth delivery of cement sacks 19 nos. ten wheeler and 16 nos. six
wheeler company delivery trucks are being used.

Raw material unloading & Storing:

There exists a modern equipped jetty


facility in this organization where the sea
going vessel can berth easily. There
exists 02 nos. of hydraulic crane of
modern technology of German
origin having unloading capacity of 250
MT/Hr each of which contribute a lot to
faster unloading.

Here it needs to mention that there exists a clinker shed having storing capacity
of 35000 MT and for easy and faster conveying there exists a substantial numbers
of belt conveyors which has been designed technically and which lengths about 02
kilometers. Besides the two nos. of hydraulic crane there also exists 02 nos. of
mechanically driven crane namely Fransiab Crane which are mainly engaged for
limestone unloading.

PRODUCT

MCML has got a unique facility to produce different type of


cements and depending on the customer demand and choice
different kinds of cement are produced. Presently 02 (Two)
types of cement are being manufactured by Meghna
Cement Mills Ltd. which are Ordinary Portland Cement
(OPC CEM-1 52.5N) and Composite Cement (CEM II B-M
(S-V-L) 42.5N & CEM II A-M (S-V-L) 42.5N).
Portland Composite Cement (PCC): Ingredients used in PCC

Clinker 65-79%
Slag Fly Ash Limestone 21-35%
Gypsum 0-05%

Ordinary Portland cement (OPC): Ingredients used in OPC

Clinker 95-100%
Gypsum 0-05%

Process of Production:
In the area of MCML have 06 processing plant and 03 packaging plants. At first all
kinds of raw-materials like — clinker, gypsum, limestone, hard rock, fly-ash etc.
through in the processing plant. After processing and mixing the raw-materials
they get cement. After preparing, cement through to packaging house. This is
known as BICL. Here prepared cement is packed by packaging machine, which
called HAVER-Roto Packer Machine. We know that MCML have 03 packaging
plants. But 03 packaging plants is not run all time, all time work 02 packaging
plants and other is stop. When the production pressure is high this time all
packaging plants is worked.
Labours:

MCML have three categories of labours.

Labours Number of labours Average salary

Permanent 350 7000/= Tk per month

Casual 250 3500/= Tk per month

Daily 200 100/= Tk daily

MCML also have the facility of overtime and bonus. MCML give over-time salary
two-times per day for its labors and gives 02 occasional bonuses like Eid-ul-feter
and Eid-ul-azha. It also give 0.5% yearly interest for the labors. MCML have a
trade-union for the labors.
MCML have 100 senior and junior officers. Which average salary is up to 12000/=
taka per month.

Foundations Which Made by Using ‘King Brand Cement’:

Many foundations or architectural work in ‘Bangladesh’ which is made by using


MCML produced ‘King Brand Cement’. Foundations which are made by using
MCML produced ‘King Brand Cement’ is — ‘Basundahara City’, ‘Subastu
NajarVely’, ‘Boro Pukuria Coila Khoni’, ‘Sahid Jiaur Rahman Medical
College Hospital’ and ‘Rupsha Bridge’ etc.

MCML’s own jetty on the bank of ‘Possur’.


Social Responsibility
In response to the rapidly changing global trends MCML endeavors to focus on
developing intangible assets basing maximize corporate value of the Group. Their
aims and objectives are to serve the people with maximum satisfaction; ultimately
which will denote vital role for economical development of Bangladesh. As a
result, multi professional groups are being sustained peacefully along with
happiness. In this respect political stability will be required.

In today’s knowledge based World, competitiveness is determined by the


possession of intelligent employees, the most valuable intangible assets. Keeping
this in mind they have adopted suitable Management Policy and to culture the
growth of Human Resources, those who are playing vital role in economical
development of Bangladesh. As a result they have to grow bigger, stronger and
better every day for serving people and the country.

Bangladesh being one of the densely populated countries in the world, our standard
of life, communication, industrial and agricultural growth etc. has not been
remarkably developed. As such employment opportunity has not been
satisfactorily improved. Bashundhara Group is playing significant role by creating
employment opportunity for hundreds of young generation through
Industrialization.

The main objective is efficient customer services, ensure quality product. As a


result these products also reached to their doorstep within short time.

On the basis of priority MCML also produces various types of quality cement as
per customer’s desire want and needs. MCML are able to produce any type of
quality cement and maintain proper standardization, using modern equipment for
laboratory testing which ensure the quality.

Since inception they are actively contributing to the national as well as global
economy by way of effective utilization of human resource using raw materials,
producing and marking high quality product at most competitively prices and
creating employment opportunities.
MCML mark all endeavors to utilize their financial resources efficiently and the
right opportunities arise, they also invest in fruitful areas with strong market
position and high growth potential for realization of a better future. MCML
continue efforts to improve performance and increase contribution towards socio
economic development of this beloved earth.

Meghna Cement Mills Ltd. do lot of charity activities for the betterment of people
as well as society. MCML is running/patronizing a Madrasha cum School for about
250 nos. Under privileged students of Apa Bari, Digraj, Mongla, Bagerhat area. In
case of natural disaster like Cidor/Aila, MCML bestowed significant volume of
warm clothes, medicine, dry food, removing saline water from pond and financial
assistances. On the different national memorable day like Victory Day, 21st
February, Independent Day, May Day etc. MCML donated sewing machine,
financial assistance to freedom fighter and others through Thana & District
administration. Cement sacks and cash payment are also bestowed for construction
of different Mosque, School, Mondir, Madrasha etc.

Meghna Cement Mills Limited-at a Look


01. ‘Meghna Cement Mills Limited’ is a sister concern of ‘Basundhara Group’.
02. Mr. Ahmaed Akbar Sobhan, Director of MCML.
03. MCML has placed 1995 and went to production January 15, 1996.
04. Production capacity of MCML is 1.5 million MT cement per year.
05. The product of MCML is being marketed under the trademark of ‘King Brand
Cement‘.
06. MCML has a large number of labors and officers.
07. Head office of MCML is: Basundhara City, 13/Ka/1, Panthapath, Dhaka-
1215.Phone:8158025-34,8119006.Fax:88-02-9128319,8158615.
Email/WebAddress:www.basundharagroup.com
Confidence Cement Limited (CCL) is the first private sector cement
manufacturing company in Bangladesh established in early 90's with having
4,80,000 M/T annual production capacity at Chittagong, 16 K.M away from
chittagong port, besides Dhaka Chittagong highway. CCL is the first ISO-9002
certified cement manufacturing in Bangladesh. It has a unique management system
in quality Assurance, Marketing, Sales, and Procurements. It manufactures
ordinary Portland cement. Our company aims to be the number one cement
manufacturing company in Bangladesh, through continuous development and by
producing high & consistent quality cement to meet all customers requirement at
all time. To achieve these objectives CCL uses modern machineries, calibrated
testing equipment's, computerized packing & raw materials mixing devices in its
production process. Additionally the company frequently arranges internal &
external training program for the staff of all level to develop the potentiality and
skill of its human resources. CCL is always keen to keep the customers satisfied by
proving the best possible service.

Recommended Mixing Proportion

Different kinds of works require different strength for mortars & concretes: to use for construction works.
Generally, mixing design very for mortars and concretes to suit different purposes. The following are the
common proportions used with ordinary cement for mortars and concretes in comparison with CCL cements
for particular desirable strength and satisfactory concrete workability :

CONCRETE MOTTAR
Ordinary CCL Ordinary CCL
ITEMS ITEMS
Cement Cement Cement Cement
C:S:CA C:S:CA C:S C:S
Heavy Foundation, Concrete
1.0:4.0:8.0 1.0:5.0:10.0 Masonry 1.0:5.0~6.0 1.0:8.0
Roads
Massive Works, Dams. 1.0:3.0:6.0 1.0:4.0:8.0 Plaster :
Columns 1.0:2.0:4.0 1.0:2.5:5.0 External 1.0:6.0 1.0:8.0
For R.C.C: Internal 1.0:4.0 1.0:6.0
Slabs, Beams, Walls 1.0:2.0:4.0 1.0:2.5:5.0 Ceiling 1.0:4.0 1.0:6.0
Tile
Water Tanks 1.0:1.5:3.0 1.0:2.0:4.0 1.0:4.0 1.0:6.0
Work
Pipes 1.0:1.5:3.0 1.0:2.0:4.0 Pointing 1.0:2.0~3.0 1.0:2.5~3.5
Chemical Properties

Physical Properties
Valued Clients List

Product
M.I. Cement Factory Ltd.
Cement is the latest addition in the list of export commodities in Bangladesh. Our country started
exporting cement from January 2003. Crown Cement of M.I. Cement Factory Ltd. takes the
pride of part of it. Earlier, apart from some production of state-owned Chhatak Cement Factory,
the country was dependant on its import. In this context, local investors took the initiative for
setting up cement factories and starts producing cement in 1992. The production in eight private
factories stood 34 lakh tons in 1997, So far, about 100 Factories got government's approval of
which 56 factories are on production with a production capacity of 1.30 crore metric tons against
a domestic demand of 60 lakh tons in a year.

Goals :
 Provide highest standard products and secure
customers satisfaction.
 Secure strongest competitive production through
creative product and operational excellence.
 Have highest entrepreneurs’ skills.
 Create a team of employees of highest professional
skills.
 For conversation of natural resources to engage in
research and innovation to use alternative raw
materials where possible.
 Extension of facilities to customers MICFL has
taken steps to supply to customers cement in bulk
through its bulk carries and also in form of ready
mixed concrete direct to construction site corporate
nature in management.

PRODUCT

M. I. Cement is basically a grinding mill that imports raw materials and manufacturers the
final products.It started in 2000 with a production capacity of 180,000 MT annually.
The product having high standard quality found its great acceptability to customers, ranging
from individual builders to contractors or corporate organization. Soon the management of
MICFL took the expansion program and set up its 2nd unit
with another 240,000 MT per year’s production capacity in
2002.

Presently the MICFL is producing two types of cement


depending on customers such as customers’ choice viz.
Ordinary Portland Cement and Composite Portland Cement.

Ordinary Portland cement Type-I


For general construction work, in concrete where no special protection such as sulphate or
acidic attack from soil and water not anticipating, this type of cement is used. It is
marketing in brand name:
“Crown Cement”, Standard mark:
BDS-EN-197-1:1993 CEM-I
42.5 N

Composite Portland cement


MICFL introduced from 2005 this standard of cement matching with the specific demand of
construction such as foundation, floor, brick-laying, plastering and concrete work also.
Trade mark,
“Crown Cement” standard:
BDS EN: 197-1:1993 CEM-II/A or B42.5 N

Raw Material’s

PROCUREMENT

Like the most of the cement mills in the country, MICFL is also grinding mill and almost all
the raw materials are imported. It imports mainly from Thailand, Indonesia, Korea, Japan
and India. At first the management representatives visited such countries and
manufacturers of raw materials to ensure desired quality conforming to produce quality
cement. For producing composite cement MICFL imports slag from Japan for an additive
with clinker. After arrival it tests the raw materials through some known trading houses who
have been tested to be bonafide and dependable.
Test Report

Mordant Technology
DISTRIBUTOR

HEALTH & SAFETY


M. I. Cement Factory cares for keeping the environment free from pollution. So it
takes appropriate measures for preservation and protection of environment. For this
end in view it keeps its desired mechanical devices and gives due emphasis for
well congenial health condition within the factory for its employees. For financial
security against any mishappening it brings its employees under of Group
Insurance facility.
Aramit Cement Limited

Aramit Cement Limited was incorporated on


19thAugust 1995 as a public limited company by shares
and established with technical collaboration of a
Chinese company for producing Ordinary Portland
Cement from the very beginning of its commercial
production that started on 10thNovember 1999. The
company has been maintaining the quality of the
product for which it has own the confidence of the
customers and also attained the high status
international ISO 9002 Certificate. Company's products
carrying brand name Camel has already become highly
popular among the consumers.

It also exporting a considerable quantity of OPC - 43 N


Grade Cement and Portland Slag Cement for the last
few years.Existing capacity of the plant is 700 metric tons per day which is going
to be enhanced by 1000 metric tons per day production capacity through setting up
of another expansion unit for which erection works have been started.

Product List
 Portland Cement - 42.5N
 Portland Composite Cement - 42.5N
 Portland Slag Cement
 OPC - 43N grade Cement

Production capacity

Particulars 2009 2008 2007 2006 2005


Installed Capacity(in metric tons) 210000 210000 210000 210000 210000
Actual Production (in metric tons) 162445 136731 127581 138248 119383
Capacity utilization (in %) 77 65 61 66 57
KEY OPERATING AND FINANCIAL DATA OF LAST FIVE YEARS HAVE BEEN
PRESENTED BELOW IN SUMMARIZED FORM
Particulars 2009 2008 2007 2006 2005
Taka Taka Taka Taka Taka
Net sales 843,836,356 762,612,203 597,500,927 561,102750 457,558,571
Cost of Goods 649,068,944 704,071,625 524,552,513 513,291,541 456,947,748
Sold
Gross Profit / 194,767,412 58,540,578 72,948,414 (47,811,209) 610,823
(loss)
Operating 31,675,069 26,851,617 18,245,968 14,515,969 12,478,917
Expenses
Trading Profit / 163,092,343 31,688.961 54,702,446 (33,295,240) (11,868,094)
(loss)
Financial 61,977,153 24,454,370 25,924,996 19,496,976 14,881,458
Expenses
Other Income/ 7,702,760 5,385,612 3,345,580 (1,908,901) 108,554
(charges) -
operating (net)
Contribution @ 5,440,897 607,585 1,606,152 785,358 -
5% to WPP & WF
Net - operating - - - - -
(loss)
Profit / (loss) 103,377,053 12,012,618 30,516,878 (14,921,807) (26,640,998)
before income tax
Provision for 42,691,800 9,600,000 16,500,000 7,950,000 -
income tax
Profit / (loss) after 60,685,253 2,421,618 14,016,878 (6,971,807) (26,640,998)
income tax
Transferred from 31,000,000
Tax holiday
reserve
Dividend - - - -
distribution tax
Profit / (loss) after - 14,016,878 (6,971,807) (26,640,998)
income tax &
dividend
distribution tax
Dividend 16,800,000 - 6,000,000 - -
(Loss) balance to (99,155,037) (174,040,290) (167,452,908) (184,469,786) (191,441,593)
date
Total Fixed Assets 349,982,716 347,658,121 318,143,881 315,084,118 309,376,576
Total Current 368,889,041 306,178,916 200,542,971 150,168,808 118,037,786
Assets
Total Current 540,917,308 518,342,101 422,423,826 343,833,723 274,693,852
liabilites
Total deferred 111,109,486 112,535,226 3,984,767 3,305,295 2,796,806
Liabilities
Total long term - 71,731,167 105,583,693 144,365,297
Liabilities
Current ratio 0.68 0.59 0.47 0.44 0.43
Shareholders' 66,844,963 22,959,710 20,547,092 12,530,214 5,558,407
equity
Earning/ (loss) per 43.35 1.72 10.01 4.98 (19.03)
share (basic)
Dividend per 12.00 - 7.50 - -
share (on 800,000
shares of General
Public &
Institutional
Shareholders
other than
Sponsor
Shareholders)
Quoted price per 565.25 & 177.50 & 150.75 & 73.25 & 40.00 &
share (year end) 571.25 154.00 154.00 76.00 40.00
DSE & CSE
C
Holcim Bangladesh Ltd

The history of Holcim is too big to be told. So, we are describing it as much
as possible. We divided the whole lifetime of the company into two parts.
One is INTRODUCTION PERIOD and the other is EXPANTION PERIOD.
Within ninety years Holcim has grown from humble beginnings in a Swiss
village to become one of the world’s leading cement companies. The
development through the years of 1912-2001 is briefly stated below.

INTRODUCTION PERIOD (1912-1970)

1912
Holcim was founded in 1912 in the village of Holderbank, Canton Aargau.
From an early stage it became clear that the domestic market could offer
only limited opportunities for expansion.

1920
By the early 1920’s the company began investing in cement businesses in
other European countries. This trend was quickly followed by investments in
Egypt, Lebanon and South Africa.

1945
In the years following 1945, and particularly in the Fifties and Sixties, a
network of holdings began to develop in North and Latin America.

1970
In the 1970’s, ventures in the emerging markets of the Asia-Pacific began.
EXPANSION PERIOD (1980-2001)

1980
In the 1980’s, Holcim continued to expand into new markets, including
Eastern Europe. A greater focus on aggregates and ready-mixed concrete
production strengthened the company’s position as a vertically integrated
market leader.

1990
A strong focus on core business activities in cement, concrete and
aggregates characterized Holcim activities during the 1990’s. Continuing
professional development programs for employees, coupled with a best
practices policy, ensured challenges were met with creative solutions and
company performance was enhanced. Entry into new markets, particularly
within Asia, expanded opportunities for the Group.

2000
The name of the Group was changed from “Holder bank Financier Glaris
Ltd” to “Holcim Ltd.” in May 2001. Today, the international presence of
Holcim consists of a balanced mix of companies in industrialized and
emerging markets.

2001
The company began its operations in Bangladesh in 2001 by acquiring the
Hyundai cement factory in Meghnaghat in Dhaka.
Mission Statement of the company
The Holcim Group is one of the largest cement companies in the world. Their
vision is to provide foundations for society's future. Their mission is to be the
world's most respected and attractive company in the industry -creating value for
all their stakeholders.

Their goals are to:


Continually set the highest standards of customer satisfaction in the industry.

Secure the strongest competitive position in the markets.


Partner with suppliers to deliver value-for-cost procurement for the Group
and their customers.
Be recognized as an employer of first choice.
Empower the employees and integrate them fully into the global network.
Selectively grow their worldwide presence of companies.
Demonstrate their commitment to sustainable development.
Be acknowledged as a valued and trusted partner in their community.
Be the most recommended stock in the industry.

Product Profile
Holcim group makes cement and cement related products. In
Bangladesh the company focuses on the cement business. The
product that I focused on is cement. Before discussing
anything else, first of all we must know what cement is.
Cement is a building material made by grinding calcined
limestone and clay to a fine powder. It acts as the binding
agent when mixed with sand, gravel or crushed stone and
water to make concrete.
The main raw materials of cement are Clinker and Gypsum. Clinker is gathered by
burning limestone. Both of them create Ordinary Portland Cement (OPC). To get
other types of cement various types of materials have to be added to it and their
concentration varies according to cement type. There are standards for the
concentration of various materials in cement. One is EUROPEAN STANDARD
and the other is AMERICAN STANDARD (ASTM). The standards are given
below –

Figure: International Standard Of Cement Document.


Holcim Bangladesh Ltd. mainly concentrates on the Portland cement (C-150 in
ASTM) and Portland Fly Ash Cement (C-595 IP ev. MS, A, MH).

Portland cement (C-150 in ASTM) includes only clinkers and gypsum and
may be some minor additional materials.
Portland Fly Ash Cement (C-595 IP ev. MS, A, MH) includes clinkers,
gypsum, fly ash and may be some minor additional materials.

Holcim (Bangladesh) Ltd offers four types of cement:

 Holcim Black
 Holcim Red
 Holcim Strong Structure
 Holcim Blue

Packaging strategy:
They will try to an increased product depth. They should try delivering different
quantities, something that has never been tried before. Holcim starts producing
75Kg bag along with the present 50Kg bag. There are customers with a high
demand. For a buyer buying 100 bags of Holcim, it is more convenient and
reasonable to buy 75Kg bags instead of 50Kg bags. It will reduce the consumer’s
cost along with Holcim’s too. Holcim will have to deal with less wastage of bag
materials while packaging. It is also beneficial for the corporate organizations as
their need and demand for cements is very high.

Marketing Strategy:
At present the company is in a growth stage in the product life cycle as the sales of
company in the past years suggest. After its introduction in Bangladesh in 2001 the
company is still experiencing high fluctuating market. Holcim is now in a
“question mark” stage in the BCG Growth-Share Matrix. At this point the
company must give attention to its market strategy as the strategy it uses will
determine its future in the cement industry of Bangladesh. For its new marketing
plan that we are proposing the company should use the Market Penetration
Strategy as it will be dealing with its existing products and existing market. Here
the price will be high, but closer to the competitor’s price. This will have a
psychological effect on the consumers as they tend to think that more the price,
better the product. The company will be highly benefited from it with increasing
market share.
After a while when the company has a very huge market share, may be the
company can afford to reduce the price by even a bigger amount and be the market
leader. But the price should be still high from others.

Present Product Life Expected Product life


Sales in units cycle cycle

Sales in units
Time Time

As the expected product life cycle suggests, Holcim is looking for high growth rate
in cement market. With better efforts and increasing sales in result, Holcim will be
hopefully the market leader.

Marketing Tactics
Uncontrollable Factors:

Product strategy

The company must assure quality in all the levels of production and distribution.
The company has to concentrate on the Total Quality Management (TQM) all the
way from production to the distribution in the hands of the consumers. But the
company must not overlook the fact of cost regarding TQM. The company will
have to meet the best quality possible at all levels that is covered by the present
cost with skilled employees. As skilled employers are hard to find in our country,
Holcim can train the employees so that production capacity of each worker may
increase. Company must also keep an eye on its profit scale while doing all these
things. In the short run profit may seem to decline, but in the long run this training
may prove to be fruitful.
They will try to increase the product depth and offer variety of products to the
customers of the company. It will attract more and more new customers towards
the company.

Pricing Strategy:

Most customers are highly sensitive about price of the product they use. They tend
to think that if the price is more the product will be better. But if the price is too
high then the customers cannot afford it. So, the price has to be high but it has to
be closer to the competitors. If this high price can gain the trust of the consumer
the company can afford to lower the price with increase in sales volume. The
company should have a long-term plan to reduce cost and then reduce price later.
So, they have to use a psychological pricing approach for every product with a
little bit reduction.

Promotion Strategy:

Holcim’s Public Relation activities are none. So, a lot of potential buyers are not
even familiar with Holcim’s name. So, it can increase Public Relation Activities
through sponsoring various events, issuing massages for public interest.

Holcim can send its representatives in different corporate organization’s office to


let them know about the quality of Holcim and benefits of buying Holcim. They
will inform the corporate organizations that the new packaging is mainly for them.

To persuade the consumers Holcim can appoint different people from construction
related businesses (like brick, sand, rod etc) as Premium Dealer. This will help
Holcim and also the people getting appointed. Those people can pass on
information about the quality of Holcim while they are selling their usual products.
Holcim will have new premium dealers and those dealers will also act as a media
to the consumers.

Distribution strategy:

Holcim’ main strength is its Premium Dealers. So, to increase its Premium Dealer
in different areas; especially in Rajshahi and Khulna. Number of Premium Dealers
in that region is 3 and 1 respectively, but the market demand is too big for these 4
premium dealers to control. So, increase in premium dealer in these two areas is a
must for the company.
Holcim can initiate a contractual agreement with retailers. They should proposing
an association of retailers, which will do the work of District Dealers (can be
useful in certain places like Rajshahi). This will reduce the retail price, which will
be beneficial for the consumers as well as to Holcim.

Opportunities for Holcim to have more sales

Rajhshahi, Biggest Target Potential Market


Khulna, second largest potential market
Dhaka, potential profit increase

Push and Pull Strategy:

Holcim
Holcim

Premium Dealer Premium Dealer

District Dealer Retailer’s Association

Retailer Retailer Retailer


Retailer

Consumer Consumer

Existing Market
Channel for personal Proposed Market
house builders Channel for personal
house builders
UNCONTROLLABLE FACTORS:

The uncontrollable factors of Holcim refer to the competitors, raw material price,
transportation cost, political situation of the country and economic decisions taken
by government.

Competitors:

The main competitors of Holcim are Shah Cement and Scan Cement. The prices
of Holcim’s competitors are much lower than Holcim.

Raw materials price:

Holcim imports its raw materials from abroad. So, a change in the exchange
rate can affect Holcim very much.

Transportation cost:

Holcim uses different transportation companies for the delivery of its goods. So,
Holcim has to come up with the transportation charge it faces in the market.

Political situation of the country:

In Bangladesh the political situation is very unstable. Strikes hamper production


and result sometimes even in a loss for the company.

Economic decisions taken by government:

Government may take different steps like tax rate change etc. for betterment of
the country. This will affect Holcim like all others.

Profile of the Target Market


Holcim Bangladesh Ltd. Mainly targets the customers who are very much
brand loyal. Holcim prefers to work with them because they believe in the
company and they will always support the company. Holcim also prefers those
customers who pay their dues on time. Most of the buyers of our country are not
that much regular when it comes to paying bills. So, the company prefers to deal
with this sentient customer.
For the cement business in Bangladesh Holcim customers are two types. The first
is corporate organizations like real estate companies, big construction firms,
government construction departments etc. And the second is personal house
builders. Majority of Holcim’s customer is in the personal house builder market.

Percent
7%

Personal House 93%

Builders

Corporate 7% 93%

organizations

All the reasons for choosing the personal house builders are given below –

Cash payment
Brand loyalty
Respond to marketing mix quicker than corporate organizations
More in number compare to the corporate organizations

Sales in defferent regions

1% 2%
Barisal
14% Sylhet
13% Chittagong
58% Khulna
Rajshahi
12% Dhaka

Figure: percentage of sale of all Division


External Influences on the Purchase of Holcim
Culture is perhaps the most pervasive influence on the consumer behavior.
Culture is the distinctive way of life of a people, their complete design for
living, thinking. Cultural factors play a very important role for purchasing any
kind of product. Without mix and match with the culture a product will not be
abed to survive in the market.

Relevant cultural values

The important values that affect the purchase of Holcim cement are:

Status:
Status is one of the cultural values that effect the purchasing of Holcim. As
its price is very high and the quality is high so we can understand that
Holcim cement user where belonging to.

Brand awareness:
As cement is not use frequently for the general people. So it is must that give
the Holcim name in a way that whenever consumer thinking about buying
cement first name has to be in mind is Holcim cement.

Nonverbal Communication:
The Holcim does not follow proper strategy in our country. The company
has a little communication activities through there distribution. The
company usually uses two colors. Red and black. Red is a symbol of
chemical factor and black reflect the strong. So, after comical mixing its
make a strong construction.

Purchase of Holcim:
Affection is import for cement purchase. It is the knowledge about a
particular product. 53% people buy Holcim cement for its brand image
which is the highest and 8% people buy Holcim cement for its status which
is the lowest.
Advice when buy cement:
For the high involvement product advice is often taken. Advice is usually
taken from the expert, engineer, salesman and any known person who have
the knowledge about cement. Form our survey 63% respondent take advice
from the engineer which is the highest and 8% respondent take advice from
the sales man which is the lowest.
Brand Image and Product Positioning
Brand Image:
Brand image is a very important factor in market. If image is good then sales
must increase, but if it is negative then it will be opposite.

Product Positioning
Positioning is the act of designing of the company’s offering and image to
occupy a distinctive in the mind of the target market.

When some one thinks about Holcim, They know that it possesses a high
quality and high price. And always serves the world class Pizza. Anywhere
in the world customer can get the same quality and same taste. Holcim target
consumer is upper class people. They are always looking high quality
product and high quality service. And Holcim always provides it. Consumer
believes it, because Holcim creates their position in consumers mind.

Perceptual Map:

Brand Equity:

Brand Equity is the value consumers assign to a brand above and


beyond the functional characteristic of the product
Brand Equity is nearly synonymous with the reputation on Holcim.
7.4 Brand Personality

This is characteristic that Holcim imbibes in it and which helps the


consumers identify them with the following characteristic of Holcim

Traditional
Status
High Performance.

Motivating customer-Holcim vs competitors


The scenario of the market:
Holcim started its journey in the year 1912 and in Bangladesh 2001. That
time it was only the cigarette company in the market. After that so many
new brands come into the market. And as a result, competitor in the cement
industry is increasing day by day. There are so many low status brands exist
in the market but he leader are the Holcim and star. Holcim is one more step
ahead than star. Holcim produce more solidification product, and long
durable construction but other may take it as opportunity.

Motives in the case of buying


The basic motive to buy cement varies man to man. Some people buy for its
brand loyalty, some for price, some for availability and some for style and
quality. When we ask question to the people that, the most of the cement
are giving the same products but why people purchase Holcim , answer is
they prefer the quality, some prefer the brand loyalty, some prefer the
availability, some prefer the price and some prefer the enhance personality.
Facts & Figures
No of Plants in Bangladesh 3
Total capacity in (MT/Year) 1.300.000
Market Share approx. (Whole Bangladesh) 8.0%
Market Share approx. (in Dhaka) 17.0%

Shun Shing Group has been devoting sustained attention and activities toward
international cement trading & raw materials trading for more than a decade.
Utilizing Shun Shing Group's far-reaching knowledge and experience in this sector
at the international level as well as in the Bangladesh market, Shun Shing Group
established Seven Circle (Bangladesh) Limited (SCBL), a 100% owned company
in Bangladesh.

SEVEN RINGS, Group's own registered brand has been the market leader in
Bangladesh Cement Industry for over a decade. Imported from Indonesia, Thailand
and China, superior quality cement has been supplied under SEVEN RINGS brand
and it dominating the Bangladesh cement market since 1990.

From February 2001 SCBL started production and distribution of SEVEN RINGS
CEMENT in Bangladesh market from it’s state of the art factory in Kaliganj, near
Dhaka, Bangladesh with production capacity 600,000 MT per annum.In 2008 new
mil has been installed to produce another 600000 MT per annum making total
capacity 1.2 Mil Tons per annum.

To strengthen its position in the Industry, SCBL has established a Building


Materials & Service Company to provide exclusive customer services to
corporations, private homebuilders, engineers, consultants and all other builders.
SCBL’s future products and services include 1) Bulk Cement 2) Ready mix
concrete 3) Pre-cast & Pre-stressed concrete. 4) Various building materials &
construction management services, and 5) Refurbishment/ strengthening of the old
buildings.
Related Companies

 Seven Circle Bangladesh Ltd.


 Shun Shing Logistics Ltd.
 Biroute Ltd.
 Shun Shing Maritime Ltd.
 Shun Shing Holdings Ltd.
 Shun Shing Power Ltd.
 Shun Shing Trading Ltd.

Products

Specification and Composition:

BDS EN 197-1:2003, CEM-I, 52.5 N


ASTM C150 Type -I

Clinker: 95-100%
Gypsum: 0-5%

Bag Plant

In 2002 the Group has established WPP cement Bag


Manufacturing plant having annual capacity of 45 million
pcs.

The bags are supplying to –

 SCBL:20 million PCs/ annum for captive use, 44%


 Other cement industries: 25 million PCs, 54%
Cement & Clinker
Group is involved in export of Grey Cement, Grey Clinker, White Cement, White
Cement Clinker, Special Cement, Dry Mortar, SRC Cement and SRC Clinker. The
Group is also involved in cement production and marketing of the Group's own
prestigious Brand Seven Rings which is regarded as one of the Heighest
Quality cement in Bangladesh.

Akij Cement
AKIJ Cement has established a foot hole in the cement
market. Encouraged by consumer’s response and confidence
AKIJ Cement is in the process of expanding its capacity by
many folds. Once completed however, this factory will be
quite incomparable.

From unloading the raw materials at the jetty to loading the


finished product onto boats, all the stages are to be automated and computer
controlled.

Two fix swing cranes will unload the clinker and gypsum and put them on a belt
conveyer to be put into storage. These are then loaded into the ‘bins’ and measured
by two belt scales before entry to the ball mill grinder. This allows the ratio of
clinker and gypsum to be controlled. From there the ground cement goes to the
vortex separators by the means of a bucket elevator and chain conveyer. The
vortex separator separates coarse and fine cement by using high pressure. The fine
cement is the finished product whereas the coarse cement needs to be ground
again. The fine cement is stored in silos and intricately controlled conditions. This
cement goes to the packing machine by a screw conveyer and from there to the
jetty by a belt conveyer.
The factory is equipped with air filters in order to minimize pollution and recycle
any cement that is suspended in the air. The entire production process is computer
controlled and there are sensors to monitor various factors at regular intervals. The
level of automation reduces dependence on staff and risk of human error. The
software controlling the machines allows engineers to view progress on a computer
stimulated model of the factory. It also reports problems and permits fine control
of every stage.

The laboratory is not only involved in quality control but also on improving the
cement to being the best brand available. As well as equipment to determine
chemical properties of the product, there is apparatus to measure physical factors
both before and after the cement has set.

Akij Cement has leapt dozens of places to become the country’s fifth largest
cement manufacturer after it became the first company to produce harmful fly-ash-
free building material. Set up in 2002, Akij Cement has been languishing as a low-
ranked cement maker before it poured billions of taka in October 2009 to set up the
country’s first Vertical Roller Mill technology in its Narayanganj factory.

“After an investment of Tk4.50 billion in the plant, we now have the capacity to
produce 4,200 tons of cement every day. But due to energy crisis we can produce
only 2,200 tons of cement a day. The amount is nearly four times of our initial
production but still makes Akij Cement the country’s fifth largest cement maker.
The success of the company, part of the tobacco-beverage giant Akij Group, lies in
its ability to produce the harmful fly-ash free cement – thanks to installation of the
costly VRM technology. Of the 41 plants producing cement in the country, we are
the only company that does not use fly-ash to produce cement. Fly-ash lowers the
quality of cement and weakens a building. Akij Cement has received huge
response from clients. We are even failing to meet the demand, which has outpaced
supply by three-folds,” -said Payar Ahmed Tushar, the Akij Cement brand
manager.

He said most Bangladeshi cement companies produce composite cement, which


contains 65 to 79 per cent clinker and the rest additives like-fly ash, slug
and limestone cent. Gypsum accounts for up to five per cent.

Akij Composite Cement is the only brand in Bangladesh that contains 72-79 per
cent clinker, a 7-14 per cent up from the mandatory standards set by the
government.
The company imports 48-53 grade clinker from Thailand,
Indonesia and Japan. Brand image of Akij Group – whose
interests include jute, food and beverages, particle board, textile,
paper, printing, computer, healthcare and tobacco – has helped
the cement venture make an “easy foray” into the market.

Akij Cement has employed 720 people directly and 1,200 indirectly and has plans
to increase the capacity to 100,000 bags from the existing 82,000 bags a day to
meet rising demand.

The company’s initial target is to utilize the existing capacity and get a maximum
output, but the existing low pressure of gas and nagging power crisis are holding
back its potential. Although they are running three shifts a day, their production
has declined due to energy crisis. Also they get power supply for only 10-12 hours
a day. If it had adequate power and gas supply, it would be able to meet the
demand.

The company has installed a captive power plant with a capacity of 6.76 megawatt.
It is also setting up another 10MVA, 33/11KV capacity power plant to ride out the
energy crisis.

All industrial units have been suffering due to the current energy crunch. The
recent weeklong strike by vessel workers has also affected the sector.

Currently, 41 cement players are active in the country to produce 52 brands. Of the
brands, only nine operate nationwide, seven in some parts of the country and the
rest 36 cater to areas where they are set up.

Among the brands only six are Portland cement producers who use 95 per cent
clinker and the rest are composite brand makers mostly using the government-fixed
65 per cent clinker.

At present, the country’s annual cement production capacity is 2.11 million tones,
which is nearly twice the consumption of around 1.15 million tones. According to
Tushar, Shah Cement is the market leader with a production capacity of 120,000
bags a day, followed by Heidelberg, Lafarge, Holcim and Akij Cement.
Although the market is highly saturated, major companies are planning expansion
to cut production cost and increase their share in the market as they are running at
60 per cent of their capacity.

Cement demand has clocked double digit growth last year after the construction
sector posted an impressive growth of eight per cent, according to the Bangladesh
Bureau of Statistics.

The demand would soar in the coming years as billions of dollars of remittance
have fueled a construction boom across the length and breadth of the country.

Premier Cement Mills Limited is one of the leading innovative cement


manufacturers in Bangladesh. It manufactures EUROPEAN standard product using
the best raw materials and technical excellence for ensuring dependability and
superiority of cement. The products provide strength and durability to buildings of
high dimensions, roads, bridges, infrastructure that speeds the lines of commerce,
and for housing that provides comfort and security to families across Bangladesh,
India,Myanmar,etc.

The name Premier Cement is known as one of the topmost brands in Bangladesh.
Its associated companies adhere to the same demanding standards as they provide
to Government, Builders, and Manufacturers of construction materials such as
Ready Mix Concrete, Block, Pipe, and other pre-stressed concrete units. Premier
Cement enjoys a sustaining reputation and good history in Bangladesh. It has the
experience to excel on one of the top positions in the market consistently.

Premier Cement Mills Limited was incorporated on 14 October 2001 but they
started their production commercially on 12th March 2004. Currently, the company
runs with an annual production capacity of 9 Lacs tons (75,000 tons per Month).
Their products are all around us, providing strength and durability to buildings of
soaring dimensions, in infrastructure that speeds the lines of commerce and for
housing that provides comfort and security to families across Bangladesh.
History of Premier Cement Mills Limited
The company started off as a group of top ranking businessmen of the country set
together who decided to establish a cement factory, when the sanctioned capacity
of cement manufacturing plant was nearly double the demand of the country.

Company Profile:

The team consists of three leading group of companies in Bangladesh. Short


profiles of each of these companies are given below.

T.K Group of Industries:

It is one of the top five leading business houses in Bangladesh, having business in
sectors of edible oil, petroleum, chemical, steel, paper, board mill, garments,
leather, consumer items, commodity trading, etc. TK are the pioneer to enter the
cement manufacturing, soon after Bangladesh Government opened up Cement
Industry to the Private Sector.

Seacom Group:
It is one of the pioneers in shipping industry in Bangladesh which has diversified
itself in the businesses of Shipping, Logistics, Trading, Fishing, etc. With time, the
house not only served the cement industry but it also gained wide experience in
shipping both inland and ocean going for clinker trading.

Jahangir & Others:


It is one of the top Trading and Distribution houses of the country. The company
has sales and distribution network all around the country. It consists of those who
not only engaged themselves in cement trading from the inception of Bangladesh
but also gained reputation in the meantime as cement manufacturers of the country.

The Board of Directors consists of members from each of the above three groups.
The Company, Premier Cement Mills Limited was incorporated on 14th October,
2001 and commercially started their production on the 12thof March, 2004. Today,
with an annual production capacity of 1.6 million tons, 450 employees in operation
nationwide, Premier Cement Mills Limited is one of the leading cement producers
in Bangladesh. Within the span of the first 5 months, the company has achieved the
ISO 9000-2001 certification from TUV, with highly skilled employees.

Vision
“Working towards the development of the society through Sustainable Growth and
High Quality Performance.”

Mission
“Provide satisfaction to customers, an enjoyable working environment for the
employees & to create value for the stakeholders.”

Goals & Objectives


Premier Cement Mills Ltd has very basic, well specified goals and objectives
outlined for the company which is mentioned below.

To improve comprehensively in their current success areas.


To improve their brand image.
To satisfy their customers.
To be among the top 5 cement companies of Bangladesh.
To earn profits.
To capture their target market share.

Product /Services Offerings Products


Premier Cement consistently delivers quality products to its customers. Their
automated manufacturing facilities and fully equipped laboratory with dedicated
team ensures quality for each batch of production. Premier Cement adheres to the
European Standards. The Cement gets its unique characteristics by using the high
quality clinker, slag and lime stones. It provides the extreme of workability,
durability and long-term strength. Premier Cement is produced according to the
European norms EN 197-1:2000. From the beginning of their operation, the
company has been consistently ensuring the following features for their products:

Exceptional Strength:
At Premier Cement the chemical composition and grinding fineness are closely
monitored to ensure the Bangladeshi BDSEN, American ASTM, European EN,
and Indian BIS standards are surpassed and the customers get cement of strength.

Ideal setting time:


In order to allow sufficient time for application, cement must have a quick initial
settings time. The final settings should not take too long once it is in a place. At
Premier Cement Mills Ltd, the ideal initial and final setting times are maintained.

Currently Premier Cement is manufacturing the following types of cement:

Ordinary Portland cement:


Ordinary Portland cement Type-II is the most common type of cement in general
used around the world as it is a basic ingredient of concrete, mortar, stucco and
most non-specialty grout. It is a fine powder produced by grinding Portland cement
clinker (95%) and a limited amount of Gypsum which controls the setting time. It
conforms to the Bangladesh Standard BDS EN 197-1:2003 CEM-I 42.5 N,
European Standard EN 197 type CEM I, and American Standard ASTM C 150
Type I mark.

Portland Composite cement:


“Premier Cement” standard: BDS EN 197-1:2003 CEM II/AM or BM 42.5N
which is Portland composite cement. It is the most common type of cement used in
Bangladesh which consists of Clinker, Slag, PFA, Gypsum, and Limestone.

Portland composite cement plays a vital role in European market. It is made by


inter grinding or blending clinker and Gypsum with one or more of the mineral
components which are given below:

A latent hydraulic component: e.g. Ground Granulated Blast Furnace Slag,


Pulverized Fuel Ash (PFA)
A pozzolanic component: e.g. natural pozzolana, Fly Ash (Class F)
Inert components: e.g Limestone and sand which usually do not have any
real participation in the chemical hydration process and is produced by
grinding or blending of the constituents.

Production Capacity:
Premier Cement produces a total of 4000 tons of cement per day. Two ball mills
are used for producing these cements in a day. Each of these ball mills has a
capacity of producing 2000 tons each. Like other foreign and local cement
companies of the country, each packet of Premier Cement weighs 50 kg.

RawMaterial
Now days it is tough to arrange sourcing of raw
materials for cement industries. But Premier Cement
has fixed sources of clinker from Thailand, China,
Indonesia, Malaysia and Natural Gypsum from
Thailand and Oman, which give more consistence of
raw material. Slag comes from Japan and India, PFA
(Pulverized Fly Ash) and Limestone from India. These
raw materials are carried by dedicated transportation.

Ocean Going Transport


A dedicated ocean going Mother Vessel having 38000 DWT carries raw materials
from abroad to Chittagong Outer Anchor and then dedicated Lighter Vessels take
to Factory Jetty.

Own Raw material unloading facility


Premier Cement has the largest private jetty on the bank of the river Shitalakshya,
installed with two cranes of total 500tph unloading capacity, Pneumatic Fly Ash
unloading unit of capacity 70tph and Barge loading capacity of 90tph. The
company also has their investment in India for Fly Ash loading unit.
Raw material testing facility
Premier Cement has modern & art laboratory where all testing facilities are
available of both chemical & physical properties of all cement & cement-type
material. The incoming raw material is inspected & through also trail test by the
company’s mini ball mill before unloading the incoming raw material.

Storage facility
Premier Cement has the capacity to keep their raw material at their shed & silo.

Clinker shed capacity : 50,000ton


Gypsum shed capacity : 2,000ton
PFA Silo capacity : 2,000ton
PFA Shed capacity : 1,500ton
Slag shed capacity : 8,000ton
Limestone storage capacity : 50,000ton

Raw material feeding


The company has its own individual raw material feeding system which is fully
controlled by computer. Weekly calibration is done by the weigh feeder for finding
out any deviation of the feeding proportion of the raw material.

Power facility
Premier Cement has its individual 6KV feeder where 24hrs power facility is
available. Uninterrupted power supply is very crucial for continuous and smooth
operations of the plant. The company has its own gas fired power generation plant
along with Grid supply. The installed generation capacity is 5.34 MW from MWM
Duets.

Grinding
Premier Cement has two ball mills which have been manufactured by world
prominent cement mills manufacturer, viz. FL Smith-Denmark. Each of these ball
mills have a capacity unit of 2000TPD.It may be mentioned here that it is the
heavy duty mills which produces superior quality of cement.
Lab testing facility
Premier Cement emphasizes in delivering quality product to its customers. Here,
Quality Control is supported by BUET and its own laboratory consisting of top of
the line testing equipments from UK, USA, and India; which are regularly
calibrated by BUET. The company has all testing facilities of cement and cement-
type materials. At process, Premier Cement has check hourly fineness and residue
of product and every 2 hrs setting which is important to control the product water
consistency and the time setting. They have test mortar strength of cement,
chloride test and cement expansion by autoclave machine.

Packer #2& 3 capacity: 240ton/Hr

Spout: 8 each

Origin: China

Premier Cement has its own PP Bag manufacturing plant which has the capacity of
packaging 200,000bags/day. PMCL produces both paper and plastic bags which
are delivered to their customers as per the demand of the customers.

Equipment Technology:
KRUPP POLYSIUS AG (GERMANY)
Haver & Boecker
Man Takraf Foroertechnik GMBH
SMB International GMBH
United Conveyors Corporation (USA)

Some of the other important technologies and machineries that are used are:

Tape Stretching Line Starex-1400S/105, STARLINGER (AUSTRIA)

Printing Machine Flexa 8045, WINDMOLLER & HOLSHER (GERMANY)

AD Convertex, WINDMOLLER & HOLSHER, GERMANY

Slitting Machine Roll slitter, STARLINGER (AUSTRIA)

Hydraulic Sack Press, STARLINGER (AUSTRIA)


High Pressure Grinding Chrome:

Capacity:
2 NOS. gas fired caterpillar reciprocating engine
Capacity of engine : 5.8 MW each
Plant capacity : 11.6 MW

Operational Philosophies:
Operated in 3 shifts
Each shift having 4 persons
Plant started in grid mode
Running in island / parallel mode.

PCM Ltd has its own Power Generated plant. The portfolio of the plant is given
below:

Latest technology of STARLINGER from Austria & Germany


Total Machines : Seven
Total Employees : 200 ( 2 shift and 6 day operation )
Total Production : 2,66,00000 Pcs. Cement Bag Yearly (Approx.)
Area of the Factory : 75000 sft (Approx.)
To deliver the lowest possible time by managing a fleet of trucks in the most
efficient & profitable manner is the core of Premier Cement’s delver the product to
its customer doorstep at logistics.

PMC has 100 cover vans at present; 20 new cover vans will be added soon.
Premier Cement has 120 nos. of truck and 20 barges with combination of
different
Capacity to balance for any eventuality.
4 Bulk carriers and portable silos

Cement storage
Premier Cement has 2 concrete cement silos and 1 steel silo. The two concrete
cement silos have a storing capacity of 2,000ton whereas the steel silo has a
capacity of 1,000ton for storing their finish goods.

Cement packing
Premier Cement has 3 roto packers. These are used for packing the finished goods
of the company. One of the packer is the world famous HAVER PACKER-
German capacity 150ton/Hr and the other 2 packer is WAXI HAVER Roto packer
-China origin with a capacity 120ton/Hr. each.

Packer #1 capacity: 150ton/Hr

Spout qty: 10 each

Origin: Hover packer-German

Logistics and Distributions Department

The Logistics and the Distributions Department of Premier Cement is merged


together. The Logistics Department of this company is responsible for the
management of information to and fro the company, material handling,
arrangement of transportation and the overall distribution and delivery of the
goods in an effective way, both in terms of time and cost. The work of the
Logistics department is very closely connected to that with the distribution
department and this is why, even after so many years, the management of Premier
Cement have decided to continue to keep both of these departments together. The
distribution department of Premier Cement is responsible for distributing their
finished goods throughout the country. Below a diagram is given to show the
operation of the Logistics and Distribution departments together in a

comprehensive manner.

Distribution
Both inbound and outbound Logistics plays a vital role in Cement Industry in
Bangladesh. Premier Cement believes in delivering door-to-door on time.
Premier Cement has distribution network through dealers and retailers around
Bangladesh, who are served with dedicated covered vans and bulk carriers to
ensure the
door to
door
delivery of cement.

ExceptionalStrength
In Premier Cement the chemical composition and grinding fineness are closely
monitored to ensure the Bangladeshi BDS EN, American ASTM, European EN,
and Indian BIS standards and actually surpass those standards and thus the
customers get Premier Cement of exceptional strength.

Ideal Setting Time


In order to allow sufficient time for application, cement must have a quick initial
setting time. However, once in place the final setting should not take too long. At
Premier Cement, ideal initial and final setting times are maintained.

Currently Manufactured Cement Types


Ordinary Portland cement: Ordinary Portland cement Type-I is the most common
type of cement in general use around the world. It is a basic ingredient of concrete,
mortar, stucco and most non-specialty grout cement. It is a fine powder produced
by grinding clinker (95%), a limited amount of Gypsum which controls the setting
time. It conforms to the Bangladesh Standard BDS EN 197-1:2003 CEM-I 42.5 N,
European Standard EN 197 type CEM I, and American Standard ASTM C 150
Type-I mark.

Portland Composite Cement: “Premier Cement” standard: BDS EN 197-1:2003


CEM II/AM or BM 42.5N which is Portland Composite Cement. It is the most
common type of cement used in Bangladesh which consists of Clinker, Slag, PFA
(Pulverized Fly Ash), Gypsum, and Limestone.
Management Structure
Department Of PCML
TECHNOLOGICAL IMPACT: Premier Cement Mills Ltd.

Just like other cement countries of the country, Premier Cement Mills uses the
European Standard Method to manufacture their products. The company has an
added advantage over most other cement companies they are one of those
companies besides CEMEX and Heidelberg Cement who possess European
equipments and uses the European technology to make their products. The
specifications of the equipment technologies used by PCM have been discussed
above.

The IT department of PCM is responsible for organizing and managing the various
software and programs used by the employees of the company. All the employees
of PCM (referring to the Dhaka and the Chittagong branch) are well acquainted
with the basic computer skills, however most of the employees of the corporate
office of PCM are trained to use and apply sophisticated and modern software
required for their work areas. Like other companies, Premier Cement is also
enlisted on the online yellow pages of Bangladesh. The company has their own
website and the address is www.premiercement.com. However, a new and a better
website is under construction now which will be launched very soon.

PRICING: Premier Cement Mills Ltd.

Premier Cement Mills Ltd is a large company who gives great importance and time
to the price factor of their products. The company follows a very simple but a well
defined pricing strategy for deciding the price of their products. As the cost of
producing each bag of cement is known, the company then adds a price tag to their
product by following the market leader of the Cement industry. As a result, the
price of their product is fixed by following the market leader of the cement
companies as their benchmark in each of the regions.

The price of Premier Cement varies from region to region. For an example, the
market leader of cement in Dhaka is Shah Cement. Thus the price of the product
of Premier Cement in Dhaka is fixed depending on the price of Shah Cement in
Dhaka. On the other hand, currently Ruby Cement is the marker leader in Cox’s
Bazar. Thus the price of Premier Cement products in Cox’s Bazar is fixed as per
the price of Ruby Cement products in Cox’s Bazar. This strategy does result to a
varying price of the same product from one region to another but however, there is
never a gap of more than Taka 10 within the country. Although this is the core
strategy of the final stage of price fixation of the company, however there are also
some other important components taken into account while the price of the
products are fixed. Currently, the standard price of one cement bag produced by
the multinational cement companies ranges within the price of taka 370 to taka 390
per bag. On the other hand, the price of a cement bag produced by the local
companies ranges within the price bracket of Tk.340 to Tk.365. At present, the
price of Premier Cement in Dhaka is taka 355 per bag.

Although Premier Cement follows a clearly defined pricing strategy for fixing the
price of their products, however the components mentioned above in addition to
other controllable and uncontrollable elements (like inflation rate, chance in
exchange rate and the tax and/or VAT imposed by government) do create
situations where the price of the company’s product has to undergo changes from
time to time. As mentioned earlier, the market demand and supply plays a
prevailing role in the price fixation of the products of Premier Cement. Similarly
the change in the price of the raw materials of cement also compels the company to
alter their prices accordingly from time to time.

CUSTOMERS: Premier Cement Mills Ltd.

Just like other big cement companies, Premier Cement Mills also caters to the
same customers with their products and services. As seen above, these customers
are players in the distribution network whom the company attracts by
implementing their marketing activities and then eventually reaching them through
their distribution networks. The categories of customers are as follows:

Distributors
Dealers
Retailers
Industrial Personal/ Personals
Large Contractor
Real Estate & Developers
Home owners
Clients and customers in export areas

Responsibility
Leaflets:
From June, 2007 Premier Cement has started leaflet distribution in order grab a
brand image to the customers. Another intention behind distributing the leaflet was
to inform the customers about the ongoing promotional offer which can help to
boost the overall sales of the company as well. Leaflet is one of the best ways to
communicate directly with the customer. According to Shaun parker it is a
fantastic way to build brand recognition over a period of time1. It might not bring
instant reaction from the target group but leaflet will create the brand recognition
which might cause a future purchase.
Sponsorship:
EXPORT AND IMPORT: Premier Cement
Premier Cement started their export activities from the year 2009.The company is
recently exports their products to Nepal and the eastern side of India. In India,
most of the commercialization activities take place in the northern side of the
country which makes the carrying cost of cement more expensive and time
consuming to the eastern side of the country. This is why, it is much easier to
export cement from Bangladesh to the eastern side of India. There a growing
demand of the company’s products in many African countries but due to shortage
of logistic support, the company is being unable to export their product to these
countries.

Out of the total production capacity of 4000MT/day, 200MT is being produced for
export purpose only. For export purpose, the Portland Pozzolana Cement is
produced which is similar to the Portland Composite Cement only with some
difference in the composition the overall cement. The company makes different
cement for export purpose because the climate, temperature, location and type of
buildings built varies greatly from one country to another which automatically
changes the requirements of the cement type from country to country. The 200 MT
cement that is produced per day for export are stored in one of the silos unless
orders come and the products are exported to neighboring countries by using the
company’s own mother vessels. 10% of the cement produced from the total
production quantity is exported per month. . The export margin of Premier Cement
Mills Ltd is $76/ tone.

Just like most other cement companies of Bangladesh, Premier Cement imports
their raw materials such as clinker from Indonesia, Malaysia and China. The
company imports the gypsum, fly ash and limestone from India.
Some Certification That Achieve

También podría gustarte