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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.
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.
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
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
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.
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.
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:
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.
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:
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
1. Dealers
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.
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:
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.
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 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.
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.
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.
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 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.
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
Clinker 65-79%
Slag Fly Ash Limestone 21-35%
Gypsum 0-05%
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 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.
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.
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.
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.
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
Product List
Portland Cement - 42.5N
Portland Composite Cement - 42.5N
Portland Slag Cement
OPC - 43N grade Cement
Production capacity
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.
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.
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 –
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 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.
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.
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.
Holcim
Holcim
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.
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.
Government may take different steps like tax rate change etc. for betterment of
the country. This will affect Holcim like all others.
Percent
7%
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
1% 2%
Barisal
14% Sylhet
13% Chittagong
58% Khulna
Rajshahi
12% Dhaka
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:
Traditional
Status
High Performance.
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.
Products
Clinker: 95-100%
Gypsum: 0-5%
Bag Plant
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.
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.
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.
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:
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.
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.”
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.
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.
Storage facility
Premier Cement has the capacity to keep their raw material at their shed & silo.
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.
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:
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:
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.
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.
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.
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.
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