2. Overview of selected industry
1st Manufacturer: Tajma ceramics in
1958.
Monno Ceramic Industries,
Shinepukur Ceramic Industries,
Bengal Fine Ceramic Industries,
Standard Ceramic Industries and
Peoples Ceramic Industries.
3. Overview( Cont.)
Estimated growth of 80% in next 2 years.
Exported goods:
2006-07
Tk 219 crore
2007-08
Tk 270 crore
2008-09
Tk 235 crore
2009-10
Tk 273 crore
2010-11
Tk280 crore
More than Tk 3,000 crore has so far been
invested in the sector from home and abroad.
Around 20 percent annual growth rate.
4. Overview (Cont.)
RAK Ceramics (Bangladesh) Ltd, a UAE-based
company (2003), now grabs one-fourth of the
domestic market share producing 6.0 million SQM
of tiles every year.
According to the industry people, sales of the
locally produced tiles did not go down even in the
past two years, the worst time for the country's
construction industry.
5.
6. Future outlook and trends
Floor tile( Homogeneous)
Wall tile
Roof tile
Commodes.
Basins.
8. Description of venture
Product line:
Tiles
Sanitary ware.
Size of business:
Initial investment around 3.5 billion BDT.
Production goal:
Tile: 816000 units(yearly)
Sanitary ware: 82000 units.
9. Abell’s Framework
What is Customer’s need?
good quality.
durable ceramic wares.
cheap price that fulfils their specific needs.
New and innovative designs.
How that can be fulfilled?
producing enough units.
decreasing the operating costs.
10. Abell’s framework( Cont.)
How my organization can fulfill the need?
Going for huge production.
Getting out from the traditional approach: Shapes
and designs.
Selling in lowest possible cost.
11.
12. Political, legal and environmental
factors
Vulnerable one with the first two years of a
democratic government deemed stable.
The political unrest is creating Hortals,
dhoromoghots etc.
Stability of Govt.
Anti trust regulations: Still not any.
Tax laws: Raw materials: 7.5-15%.
Special incentives: LDC.
13. Political, legal and environmental
factors(Cont.)
Foreign trade regulations:
Laws on hiring and promotion.
Environmental protection laws:
Poor drainage system.
Embargo on cutting hills.
15. Social factors
Lifestyle changes.
Career expectation.
Consumer activism.
Rate of family formation.
Growth rate of population:1.566%
Regional shift of people.
Life expectancy and death rates
16. Technological factors
Excellent designs and patterns.
Unique ambience patterns.
Bone china.
Investment on R&D sector: 5% of NET Income.
Monocuttura technology.
17. Product innovations
Specially printed tiles.
Circle shaped and huge sized tiles.
Material used for innovative production:
New red high efficiency mud.
Imported raw materials like soda feldspar, potash
feldspar, clays from India, Indonesia, Malaysia, and
Thailand. Fritz & glazes from Spain & other European
countries.
Testing: A laboratory of highest standards.
21. Opportunity
Rising Industry:
Yearly growth of 6.0% in Bangladesh
and a whole growth of 800% In the
whole world.
Less competitors( Most of the ceramic
industries produce tableware)
Market leaders are mainly focusing on
22. Threats
Powerful competitors are already penetrating the
market.
New rising companies: Akij Ceramics.
Production process is long.
45. Pricing
Homogenous tiles( Only glazed): 48 Tk per
square feet.
Roof tiles ( Only Glazed): 48 Tk per square
feet.
Wall tiles ( Only Glazed): 48 Tk per square
feet.
Basins: 2500TK per Piece.
47. Promotion
Promotional activities for our final customers:
TVC
Newspaper, magazine.
Billboard.
Promotional activities regarding our dealers:
Trade incentives
Trade shows and exhibits
48.
49. Form of ownership:
It is now a limited company.
Each one of us will invest 26.25 crore and the
distribution of profit will be equal.
Any 1 of our parents as the chairman.
Planning of the company bringing in DSE.(49%).
50. Roles and responsibilities of partners
Yakin reza: Vice president(Finance).
Mahbub Muctadir: Vice president(HR).
Mohammad Sahedul Hoque: Vice president
( Marketing and sales).
Ahmed Aman Yousoof: Vice president
( Production).
51. Assessment of risk
Weaknesses of Business:
1.
2.
3.
4.
5.
Lack of domestic suppliers.
New Company.
New entrepreneurs.
Misallocations of funds.
Low priced tiles in some other companies.
52. Contingency plans
Loan from IFIC bank in 2019 for 2nd plant.
Every partner has their nominee to perform in
case of their absence.
In case of sudden decrease in demand: Tiles
only.
Storage of raw materials: 2 years.
55. Sources and applications of
funds
1. Agrani bank loan. (130 Crore). Based on factory
equipment.
2. IFIC Bank.
3. Our own funds.
56. A big investment in this field of production, is on the way.
This ceramic industry emits less waste and the by products
are highly usable.
This industry needs enough manufacturers to get a perfect
competition.
Traditional designs are about to extinct.
To, setup an industry of average capacity, it may take 100
crore. But the return is much higher.
There are not too many competitors and also, this is not a
monopoly.
So maybe, this will be the right
time to setup a factory.