This report like to emphasis to several chemicals that is highly required in food and beverage sectors.
Executive Summary
Today with the awareness of human health, people very concern with their food. Balance food and quality food is the basic demand in 21 th century. For this reason different research are performed to develop the food quality. So, it increases the demand of food chemicals, the chemicals that will increase the food grade but not cause any harm to human beings. In this case chemicals are used that will not cause any harm to world. So a reliable source is required that provide the maximum quality of food. As an internee duty is to find out the root source of supply. From this study it will be possible for ACI to find out the basic required chemicals, the major traders, major indenters and importers and the major source of supply and the final consumers. On surveying the found large number of problems and limitations in chemicals market. Some of them are created by self interest groups and somewhere there are lack of knowledge and appropriate information. So a standard recognition association is required to solve these sorts of problems. On this report like to emphasis to several chemicals that are highly required in food and beverage sectors. ACI can get a pure and clear knowledge about the recent chemical market from this report. After all this can say ACI Trading Ltd. will enjoy highly opportunistic and profitable field by being involved in this chemical market.
Chapter 1: Background of the Report
Background of the Company ICI Plc of UK had a pharmaceutical business in Bangladesh. In 1992 the business was divested to management and the name of the Company changed to Advanced Chemical Industries (ACI) Limited. ACI inherited the rich ICI culture of product quality, customer service and social responsibility and continues to nurture. •
ACI is the first company in Bangladesh to obtain certification of ISO 9001 Quality Management System in 1995. ACI is also the first Company in Bangladesh to get certification of ISO 14001 Environmental Management System in 2000. ACI employees are proud of their work culture, business ethics and environmental consciousness.
•
ACI values are embodied in its mission and vision statements. ACI quality and environmental concerns are clearly stated through declared policies.
•
What was primarily a Pharmaceutical business in 1992 with a turnover of Tk.80 million with stagnant growth, the new management brought about fundamental changes in policies and has in year 2003 grown to over Tk. 2300 million in turnover through diversified business interest including personal care products, food products, animal health, agrochemicals and seeds in addition to gaining a strong position in Pharmaceuticals.
•
ACI represents principals like AstraZeneca, Eli Lilly, UCB and Searle in Pharmaceuticals business; Colgate-Palmolive, Heinz & Dabur in Consumer Products sector; Aimco pesticides Ltd., Borreegaard Taicang Chemical Co. Ltd, Isagro Italy, Chimac AgripharBelgium, Cheminova Denmark, Hockly Int Ltd, Sundat (S) Pte Ltd, in Agrochemicals; Ranbaxy, Dabur, Wockhardt, Sanofi, Ceva and Invesa in Animal Health sector.
•
The trading subsidiary of ACI represents in Bangladesh principals like ICI, ExxonMobile, Bayer, Stahl and ICI Uniquema.
1.1
Company Mission
ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers. 1.2
Company Vision
To realize the mission ACI will: •
Endeavor to attain a position of leadership in each category of its businesses.
•
Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies.
•
Develop its employees by encouraging empowerment and rewarding innovation.
•
Promote an environment for learning and personal growth of its employees
•
Provide products and services of high and consistent quality, ensuring value for money to its customers.
•
Encourage and assist in the qualitative improvement of the services of its suppliers and distributors.
•
Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence. Value Quality Customer Focus Fairness Transparency Continuous Improvement
1.3About the study The BBA Program of department of marketing, the University of Dhaka, comprises of 8 semesters. As a part of my educational sector we have to perform three months internship. A student of BBA I have enough theoretical knowledge, and I want to put all my potentiality in the practical field. Advanced Chemical Industries Limited has given me this opportunity. I commenced my internship in Advanced Chemical Industries Limited from December 03, 2006 to March 03 2007. During internship program, the internee has to identify and analyze the issue related to the business operation of the organization, and find out solution to that issue. In this context, my organizational supervisor Mr. Azmal Hossain, Executive Director, ACI Trading Limited assigned me to conduct an extensive survey on “Imported Chemicals in Food and Beverage Sector in Bangladesh”.
Through internship study ACI will be able to know annual market size of food and beverage chemicals market, major identified chemicals in this sector, total amount imported, value and price, name of traders, importers and source of supply and Key success factors in this business. 1.3 Objectives of the Study The arena of chemical is vast. But as a trading company ACI has assigned me to find out the imported chemicals in food and beverage sectors. So, in finding out this problem have some objective: 1. Broad objectives 2. Specific objectives 1. Broad objectives: Broad objective of this report is to meet the academic requirement and also gain a real knowledge from an organization like ACI Limited. 2. Specific objectives: In specific objective I have to prepare a sound report that must be reliable and dependable. On the basis of this report ACI can take their future initiatives. As chemicals sector has a vast depth market. The specific objectives those are discussed to help in explaining the broad objectives are as follows: •
Identify the major imported chemicals.
•
Total import of the identified chemicals in Bangladesh.
•
Major end user & importers.
•
Major traders of those chemicals.
•
The annual requirement of identified chemicals in quantity and values.
•
Source of supply with approx price indication.
•
Competition and others. 1.3
Methodology
From educational background learned different methodology in marketing research process. So, in this study had the opportunity to implicate educational knowledge in practical field. Collected data from many sources. Initially, The used different methodology such as:
•
Primary Data
•
Survey:
•
Over Telephone:
The contacted lots of personnel of different knit dyeing, yarn dyeing and woven dyeing units along with Mr. Monowar Hossain, Asst. Manager, ACI Trading. •
Questionnaire:
To collect information in large scale we have developed a questionnaire which was filled by the various prospect and general people. •
Personal interview:
In order to have some effective data and some raw dependable data performed some personal visit. went several companies in tejgaoun, mirpur & gajipur. To have information about traders I went to Alu bazaar, Babu bazar, Nawabpur Road, Begom Bazaar. •
Observation: Personal observation:
Long time waiting in Traders outlet and observe the natural flow of market price and others condition. Secondary Data In this case collected and gained lots of data from secondary sources. Sometimes have visited different organizations to collect data, magazine, paper and reports. By doing this think have gain altos of knowledge about chemicals. •
Annual report of Bangladesh chemicals Manufactures and Exporters Association 2004-2005.
•
Customs Bond Commercial Executive Welfare Association.
•
Bangladesh chemical importers and merchant Association
•
National Board of Revenue (NBR).
•
Bangladesh chemical & perfumery producers Association.
•
Bangladesh statistical bureau.
•
Export promotion bureau.
•
Bangladesh export-import Association
•
Printed Materials: This study mostly depended on the printed materials. These printed materials include the newspapers, magazines, journals, directories, annual reports, Bangladesh bank publications, ACI own publication etc.
•
Internet: Internet was one of the major secondary sources that used to collect information to do the study. Very much grateful to all the sites that visited during the preparation of the report.
•
Newspapers: have collected some information from the various dailies and articles.
•
Organizations: have collected information from some organizations such as Bangladesh Chemicals & Perfumery Merchant Association, National Board of Revenue and Bangladesh Statistical Bureau.
•
Sampling and data collection : While doing the study take the help of the sampling procedure. followed several procedure of sampling. For example in the depth interview with the experts go for the judgment method. And in conducting the large scale survey followed the probability sampling which included the simple random sampling.
1.4 Scope of the Study Providing chemicals to the Food & Beverage sector represents a business to business Market. So, the marketing and distribution network is not like other consumer products. The report covers information about the major importers and traders with their annual requirements. I have discovered the key to success factors in this Import business. The opportunities those have been provided during the period of internship program in ACI limited are as follows: •
The courses that have been done through last one year fulfill the need of getting permission to do internship program. It is a program that can not be done without completing as the academic courses.
•
ACI limited has given this opportunity of doing internship with this organization. It has permitted to join the organization from the beginning of the internship program. 1.4
Limitations
There Are Many Limitation for the study, among those studies some major limitations have been mentioned bellow: •
Major Traders and Importers are not wanted to reveal their confidential import figure due to fear of custom intelligence.
•
It is not easy to find out annual figure from govt. office like NBR.
•
These chemicals have huge market demand and traders are dispersed all over the country. So it is difficult to collect data from all major traders within these time limitation.
•
BCPMA fails to collect annual information each year. There is also limitation in availability of secondary information.
•
Most of the required information is much related to GDP, so the BCPMA don’t want to disclose this information.
•
Finally, political obstacle causes a huge constraint in collecting information in different steps.
Chapter 2: Chemicals in Food & Beverage Sector 2.1About Chemicals in Food and Beverage Sector Bangladesh is a wide populated country. Now the population is about 16 corers. So with the increase of population the demand of food and beverage is increasing (16%) at a high rate. So to fulfill this demand company in food and beverage sector are also increasing simultaneously. So as a rate about 5% new food company and beverage industries are introduced with in 3years. That means now in Bangladesh there are over 20,000 confectionaries and 1500 local and foreign beverage companies are available. •
Specialized Chemicals
Most of the company uses some specialized chemicals and some ordinary chemicals. These specialized chemicals mainly their competitive advantages. So they try to collect this chemicals by their own or partner indenters. The specialized chemicals are: Hydro generated vegetable oil, Egg powder, Flavor, Biscuit no: 01, Gum azoic methyl pare sodium (methyl sodium citrate). •
Ordinary chemicals
Other ordinary chemicals that companies use mainly depend on the local chemical market or on some indenters. These ordinary chemicals are available in the market but their demand is increasing at a high rate. This ordinary chemicals are: citric acid, Sodium bi carbonate, Sugariness, benzoic acid, sodium benzoate, mythel pare sodium, Sodium cyclamate (sugar) In this case the producers want some reliability in chemicals. So always want to deal with a company that can produce the best quality, price, perfect quantity, on time delivery and over all a huge source to continue for long time business. So, in this sense ACI has a bright future to inter in the food & beverage chemicals sectors. 2.1Different Sectors of Chemicals
Like other countries of the world Bangladesh uses chemicals in different sectors. With the increase of the people and their demand different industries exists in different sectors. Now Bangladesh has RMG industry, leather industry, plastic industry, textile industry and food & beverage industry. In every sector chemicals is required. From a journal, in RMG industry required 38% chemical, leather 19%, plastic 5%, textile 20%, food & beverage 6% and others 12%. So we can understand the use of chemicals is increasing day by day. In food & beverage sector we have to depend on India, China, German and Italy. So, the availability of these chemicals is much essential for the production. As production will increase it will make our GDP constant.
GRAPH – 1: Chemicals Required by Different Sectors 12%
6%
38%
20% 5%
19%
RMG I ndustry
Leather
Plastic
Textile
Food & Beverage
Others
2.1Annual Requirements of Chemicals
TABLE – 1: Annual Requirements (Demand) of Chemicals in Quantity & Value Price Name of chemicals
Citric acid
HS code
2918.14
Price (Tk/per kg) 70-80
C&F ($) 280
Quantity (MT) 3000-3500
Sodium benzoate
2916.31
120-140
600-650
1200-1500
Sodium bi carbonate
2836.30
257-280
1000-1100
2000-2500
Hydrogen per oxide
2847.00
40-60
1500
2.5 lac-3 lac
CMC powder
3912.31
320-430
180-200
10000-15000
Cream of tarter
2918.12
85-120
180-200
850-1000
Sources: • •
Bangladesh Chemicals & Perfumery Merchant Association, CNF (Price) Information from “Lucky Chemicals & Perfumery”, March-2006
Chapter 3: Name of Identified Chemicals 3.1
Name of Major Identified Chemicals
1) Citric acid: Citric acid is the form of vitamin C. Now in Bangladesh it is widely used. In all most all local and foreign food company use this citric acid. It is one of the most usable chemicals in Bangladesh. The use of citric acid was 2000-5500 MT in Bangladesh in the year in 2003, 2800-3200 MT in 2004, and finally 3000-3500 MT in 2005. So we can see the growth rate is about 15%. But this supply is not sufficient. On my market survey I found that food producer mainly depend on local market citric acid and the price also increase with increasing demand. GRAPH – 2: Use of Citric
2003 2004
(Maximum Amount)
2005
MT
6000 5000 4000 3000 2000 1000 0
TABLE – 2: Use of Citric
2003 2004
(Minimum Amount)
2005
MT
3000 2500 2000 1500 1000 500 0
Use of Citric Acid Year Maximum (MT)
Minimum (MT)
2003
5500
2000
2004
3200
2800
2005
3500
3000
2.Sodium benzoate: In Bangladesh there are three types on preservatives are used in food and beverage sector. 1. benzoic acid 2. mythel pare sodium 3. sodium benzoate. From this three, benzoic acid and mythel pare sodium are expensive .some few producers use these chemicals. But most of the company use sodium benzoate as it is reasonable and supportive in nature. We can find that the use of Sodium benzoate was about 1200-1500 MT in 2004-05. In local market this chemicals plays a huge role and it has a great demand in market all the year round.
MT
GRAPH – 3: Use of Sodium
1500 1250 1000 750 500 250 0
2004-2005
2) Sodium bi carbonate: In food sector sodium bi carbonate is used to make bread, biscuits, cake and different snakes. It is also known as baking powder. It is the mane or core material to produce food items. We can find that the use of Sodium benzoate was about 2000-2500 MT in 2004-05. So, to fulfill increasing demand every year Bangladesh has to import lots of sodium bi carbonate. But now in Bangladesh some institutions are producing sodium bi carbonate but the quality is very low. Some low quality company uses this local chemical. Most of the medium, large and standard company use imported sodium bi carbonate.
MT
2500
GRAPH – 4: Use of Sodium bi
2000 1500 1000 500 0 2004-2005
3.Carboxyl methyl cellulose (CMC) powder: Cmc powder is widely used in beverage sectors. Most of the users import this product from China and German. It is mainly used to give the beverage softness and clearness. Cmc powder is now widely used for multiple uses. In textile sector it is used about 10000-15000 MT & in the food sector about 800900 MT for the year 2005.
GRAPH – 5: Use of Carboxyl methyl cellulose (CMC) powder For the Year 2005 MT
Textile Sector
MT
16000
900
14000
800
12000
700
Food Sector
600
10000
500
8000
400
6000
300
4000
200
2000
100
0
0
TABLE – 3: List of Major Identified Name
Hs code
Market Price (Tk/kg) 70
C&f Price ($) 280
Quantity (Demand) MT 4000
Citric acid
2918.14.00
Sodium benzoate
2916.31.00
120
600-650
450
Sodium bi carbonate
2836.30.00
257-280
1000-1100
2000-3000
Carboxyl methyl cellulose
3916.31.00
320-430
1500
1000-1500
Hydrogen per oxide
2847.00.00
40
180-200
2.5-3lac
Sources: • Bangladesh Chemicals & Perfumery Merchant Association •
CNF (Price) Information from “Lucky Chemicals & Perfumery”, March-2006
3.2Name of Other Identified Chemicals
TABLE – 4: List of Other Identified Name
Cream of tarter potassium hydrogen tartrate
Hs code
Biscuits 29181200
Price (PER KG)
Quantity (MT)
85
1000-1200
Sodium bi carbonate
2836.30 28363000
257-280
1500-2000
Sugariness
1702 2000
185
150-200
Crystal glucose
1702 3000
---
180-220
2902.20.0000
220
50-110
29163100
120
850-950
---
560
50-80
2929 90 00
180
300-400
151219
---
600-950
---
45
200-220
Tartaric acid
291812 2918.12.0000
250
220-350
Coca powder
1805000000
160
1500-1800
Egg powder
2923201000
140
100-400
Preservative a)
Benzoic acid
b)
Sodium benzoate
c)
Mythel pare sodium
Sodium cyclamate (sugar) Hydro generated vegetable oil Glucose
Flavor a)
Biscuit no:01
2106.90.97
700
50
b)
Biscuit no:09
---
900
50
Citric acid
291814 2918.14.0000
70-80
1100-1350
Malt
1107100000
125
200
Name
Hs code
Price (PER KG)
Quantity (MT)
2847.00.0000
40
5000-7000
291814
70
800-10000
Ascorbic acid
2936.27.0000 29362700
500-700
300-400
Sodium cyclamate
2940.00.0000
200
300-400
Preservative (sodium benzoate)
29163100
120
350-550
Carboxyl methyl cellulose (CMC)
39123100
320-430
1000-1500
Gum azoic
39123900
375
50-100
Sodium citrate
29181500
100
400-500
Soft Drinks Hydrogen per oxide Citric acid
Juice/ Energy Drinks CMC powder a)
grade-10000
39123900
320
400-900
b)
grade-50000
39123100
430
10000-15000
29163100
120
350-450
2902.20.0000
220
200-350
39123900
560
320-420
---
240-900
Market price
Preservative a)
sodium benzoate
b)
benzoic acid
c)
methyl pare sodium (methyl sodium citrate)
Food color
Name
Hs code
Price (PER KG)
Quantity
1805.00.000
90-95
100
291814
70
850-1000
Preservative (sodium benzoate)
29163100
120
200-300
Sodium cyclamate (sugar)
2929.9020
180
500-800
Vegetable fat
151800
70
100-200
Coca powder
1805.00.000
---
500-800
Ice cream Ice powder/ corn flower/skim milk Citric acid
Sources: • Different traders, indenters and importers. • Different end users. • Bangladesh Chemicals & Perfumery Merchant Association, Chapter 4: Major Traders of Chemicals 4.1About Traders In Bangladesh chemical business plays an important role. Here we can see there are a few indenters and importers in the market. Most of the business men and end users mainly depend on the local traders. In this case traders mainly collect their chemicals from the several importers. On performing this survey I have found that every trader mainly carries out their business with several chemicals of several sectors (food, beverage, cosmetics and pharmaceuticals). Here the products are very much homogeneous and price is the same. From the year report of Bangladesh Chemicals & Perfumery Merchant Association, 2005, there are about 1000-1500 traders in whole Bangladesh. These traders are the main source of different chemicals. Mostly the local end users collect their required chemicals from these traders. Armanian street, Midfort, Babu bazaar, ALu bazaar and Moulovi bazaar are the main market for these local traders. But, there are lots of problem in this chemicals market. These traders have to depend on the supply and price of the importer5s and traders. Also knew from the Year report these traders market also doing business of 2000corer taka. That also plays an important role in our GDP.
So we can see that ACI has a great chance in this market. In this case ACI can provide chemicals to these traders and also to the final users. At the time of doing this survey we got to know that most of the traders a searching to reliable & dependable sources of supply.
40%
25%
Traders Importers & Indenters
35%
Company & Others
GRAPH – 6: Contributions made by
Traders
4.1
Name
Mitali cheminals Nippon perfumery and chemicals Ismail sons
M/S alim and brothers
Address
List of Major Traders
Phone no.
56, Mitford road, hazi usufe manson under ground market 18haka-1100 Bismillah bhobon, girjagoli20, armanitola
Tele:7393322
Hazi usuf manshon, undergroundmarket 56 Mitford road
Tele:7395720
106, KP gosh street, armanitola
Tele:7395942
Fax no.
--
Mobile: 0171626459 Tele:7318127 -Mobile:01718259035 -Mobile: 01711526485 -Mobile:0171135210
M/SRIPON PERFUMARY & chemical
9, Mitford (imamcomplex)
Rupsha chemical works
15, Armanian street (arman court)
Tele:7311632 Mobile:0181214965
Fax: 88027314932
Tele:7314458 -Mobile:01711523137
New bikrampur perfumery house
56, Mitford road, Dhaka-1100
Bikrumpur perfumery house
56, Mitford road (babu bazar)
Tele:7313888 -Mobile:1072963589 Tele:7392216 -Mobile:1073038658
TABLE – 5: List of Major Traders
Major Product Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, CMC Citric acid, sodium benzoate, molt
Name
Address
Burhan perfumery house
56/57 Mitford road yousuf medicin market
New burhan perfumery house
56/57 Mitford road,shop no-7 hazi yusuf mansion
Ferdous chemical & solvent
1 no, Armanian srteet mitford road
Amin chemicals & perfumery
218(47/b) Mitford road, Dhaka-1100 shop no:02
Mashallah chemical & perfumery
19, Armanian street (rashid plaza) Dhaka1100
Karim perfumery & chemicals
Rashid plaza, girza goly 19, armanian street, Dhaka-1100
Rashid perfumery idol
Bismillah bhaban 20aranian street mitford, Dhaka-1100
M/S sonali perfumery & chemical supply Al-amin design silinder & chemical M/S Suma enterprise
21, Armanian street (mona complex) mitford.
Phone no. Tele: 7390901 Mobile:0171549090
19 no Armanian street, armaintola. Dhaka-1100
Makhail market,1no Armanian street Mitford
Fax no. Fax: 88-029566419 E-mail: bphzamal @yahoo.com
Tele: 7393896 Mobile:0171536043 Tele: 7312812 Mobile: 01711423266 Mobile:01711460858, 019-3624990
Fax:88-029566423
---
Order basis
---
Order basis
Fax n0:08802-8960657
Mobile:1052387496
Order basis
---
Order basis
Fax no:88-027314524
Order basis
---
Order basis
Mobile:0191311650 Tele:7313330 Mobile:01711330410 Tele: 7321791
Order basis Order basis
Mobile:019385627 Tele: 7317952 Mobile:01714221764 Tele:7313573
Order basis
---
Tele:7312724 Mobile:01711460724 Tele:7310468
Major Product
Fax:0088-02 -9713490 E-mail: arafat chemical @yahoo.com
All food & beverage chemicals
Name
Address
Arafat chemical &dyes
Kamal perfumery & chemical house
56, Mitford road, dhaka-1100 hazi yousuf manson shop#15 ½ Rahim (notun metro) market, babu bazar ¾ Babu bazar, mitford road, Dhaka 1100
Lucky perfumery house
¾, Babu bazar mitford road, azim market.
M/S s.s chemicals
3, Armanian srteet Dhaka1100
Ziad chemicals & perfumery
M/S kashem chemicals& pharmacy M/S alim & brothers M/S ripon perfumery & chemical
203, Medicine market mitford road, Dhaka -1100 Kp ghosh street, armaniantola Dhaka-1100 9, Mitford road (imam complex) Dhaka.
Phone no. Tele:7392331 Mobile:0171645683 Mobile:0189275194 Tele:7321920 Mobile: 01711524233 Tele: 7314944 Mobile:0171532183 Tele:7317452 Mobile:1819228682 Tele:7310449 Mobile:01715566651 Tele:73959442 Mobile:0171135210 Tele:7311632 Mobile:018214965
Fax no. Fax no:0088-02 -9713490 --Fax no: 0088-028321451
Major Product All food & beverage chemicals All food & beverage chemicals All food & beverage chemicals
Fax no:0088-027161734
All food & beverage chemicals
Fax no: 0088-027310964
All food & beverage chemicals
E-mail: kbchem@ yahoo.com
All food & beverage chemicals
Fax no: 0088-027317621
All food & beverage chemicals
Fax no:088-027314932 E-mail: mtrading@ glinktel.com
All food & beverage chemicals
Sources: • Personal visit to different markets. • Bangladesh Chemicals & Perfumery Merchant Association,
Chapter 5: Major Indenters or Importers of Chemicals 5.1 About Indenters or Importers Now a day’s chemical business is guided and shaped by the indenters. In this case they are the main sources of the imported chemicals. As the traders are very much limited and they try to avoid risk to every import depend on these importers and the indenters.
In this case every large end users mainly depend and have their own indenters. So, they mainly collect the chemicals from the indenters on a regular basis. Most indenters contact with the foreign suppliers and place their orders. Padma chemicals, Agies international, Stonewall Limited, Lucky Chemicals Corporation are the main indenters in Bangladesh. As the size of the indenters is not so huge they have to suffer from different political obstacles and social problems. Taxation, tariff, customs and shipment are the main problems in chemicals industry. In this case ACI has a great opportunity. Mostly huge food and beverage producers (pran, square) are our client and we have long time business relationship. So as an indenter ACI can take orders and can easily solve the barriers.
GRAPH – 7: Contributions made by Importers or
Indenters
5.2 List of Major Indenters or Importers
TABLE – 6: List of Major Indenters or
Name
Address
Phone/ fax
Products
Agies international
BCIC Sadan, (2nd Floor), Motijheel C/A
9557300, 7113163 fax880-2-9564421
Citric acid, hydrogen per oxide, Sodium bi carbonate
Padma chemicals
Padma store , mokim katara molovi bazaar
7311444
Citric acid, Crystal glucose, sodium benzoate
Dysin-Chem Ltd.
Estern Housing Comm. Bldg. (6th Floor), 56, Inner Circular Road, Metro Scout Market, (Ground Floor)
8311052, 9566949, 9561637 Fax: 880-2-8311052
Citric acid, hydro Zen per oxide
Stonewall Limited
Ellal Chamber 7 th Floor, 11, Motijheel Commercial Area. Dhaka – 1000, Bangladesh.
+880-2-9559663, 9550279, 9568755 ahmedd@aitlbd.net
Pharmaceuticals And confectionary chemicals.
Lucky chemicals corporation
Meherab plaza,sute#8/B(8thfloor ,33 topkhana road)
+880-2-9571089, 9569822, 9558996, 01711-186428 Fax +880-29550710
All chemicals contract basis
JDH Chemical Bangladesh Ltd.
House # 40, Road # 12, Block # E, Banani
+880-2-9894460, 01713-005381 Fax: +880-28814713
Order basis
Name
Phone/ fax
Products
78, Motijheel C/A (6th floor), Baitul Hauqe Bhaban 47?Dahmed market 3rd floor mitford
+880-2-9666518, 9568771, 01819-221180 fax +880-2-9568771
Order basis
7313641 Fax:88-02-7319322 reponc@spectrabd.net
All chemicals contract basis
N/Smonir trading
1,no moulovi bazaar,Dhaka
7312104
All chemicals contract basis
Alif international
106 Haziosman goni road Dhaka
7167220 ]mobile:01715107692
Citric acid, hydro Zen per oxide
Advance Chemicals Est
Mehedi chemicals
Address
MIFTAchemicals
Hazi yousuf mansion 56 mitford road.
7319155 Parvez_mif@yahoo.com
Pharmaceutica ls And confectionary chemicals. All chemicals contract basis
Arif enterprise
Baitul aziz 1, moulovi bazaar Dhaka
7311600
GTI corporation
47/d Mitford road,Dhaka
www.gtirepon.com fax:88-02-7120473
Order basis
Essential drug company ltd
395/397 tejgaon i/a Dhaka 208 gpo 2447
9130489 Fax:88-02-8119697 edci@bttb.net.bhd
Order basis
5.2Other Indenters or Importers
TABLE – 7: List of Other Indenters or Name
Address
Phone
Pacific Trade Link
78, Motijheel C/A (6th floor), Baitul Hauqe Bhaban
+880-29666518, 9568771, 01819-221180
Fax +880-2-9568771
Milon Chamical
Globe Chamber (1st floor), 104 Motijheel C/A
+880-29568092, 01711-842289
Fax +880-2-9568990
l Asian Chemical Co. Ltd.
9/G Motijheel C/A
+880-29562377
Fax +880-2-9564729
(2nd floor), Suite# 2
Fax E-mail
Product
Cream of tarter, Sodium bi carbonate, Sugariness, Citric acid, Sodium benzoate Cream of tarter, Sodium bi carbonate, Sugariness, Citric acid, Sodium benzoate Cream of tarter, Sodium bi carbonate, Sugariness, Citric acid, Sodium benzoate
Kazi Bhuyan Chemical Mansion (2nd IndustriesName floor), 6 Address Motijheel C/A
+880-29558291, 01711-337539 Phone
BASF HR Bhaban 880-2Shovon Kazifloor), +880-2Bangladesh0 18,(5th 9348374-6, Enterprise Nazrul Islam 9661784, Ltd. 26/1 Kakrail 8313479 Ltd Avenue (2nd 8611662, Road Floor) Sheba 154 Motijheel 8619733, +880-2ChemicalsShahbagh C/A (1st floor) 9663349 7165960, 01199Aero Asia Meherba Plaza, +880-2049531 (PTE) Ltd. 33, Topkhana 9568703, New +880-2Road9/2 (6th Floor) 9567656, Diamond Secretariate 9551063, 9557472 Chemicals Road, 7315756, Fulbaria 01711522482, 01711400605 Sun Shine 56/57, Mitford +880-2Traders Road 7321988, 7321993, 7392339, 01714021289 l Stonewall 11, Motijheel +880-2Ltd. C/A (7th 9550279, Pharmchord Floor) 9568755 Ltd
Fax +880-2-9666736 Fax E-mail Fax +880-2Fax 8313599 +880-2-8613552 E-mail: E-mail www.basf.com.sg www.shovongroup.co Fax m +880-2-9552828 Fax +880-2-9569971 ----
E-mail www.bdtradeinfo .com Fax: +880-2-9564648 E-mail: www.tradeinfo .com
Cream of tarter, Sodium bi carbonate, Sugariness, Product Citric acid, Sodium benzoate Order basis Order basis
Order basis Order basis
Exclusive Enterprises of Cylinder filled Ammonia Gas, Apriton, Binder, Aica, Softner &Chemicals All kinds of Chemicals Importer and supplier
Dealing in Pharmaceutical Raw materials including Pharmaceutical & Confectionery project machineries
Initial Chemicals Limited
Aptt.-1, House60-D, Road131, Gulshan South
+880-2881871011
Fax +880-2-8818709
Order basis
Universal Trade Centre
16, Motijheel C/A (3rd Floor), Namazee Chamber
+880-29568703, 9567656, 9557472
Fax +880-29569971
Order basis
Name Name Ibrahin Chemie trading co. Wrold Ltd. Elite Dhaka Cosmatica Chemical supply & Co.
Address Address 26, Shahid Roomno-24,S.F. nazrul islam Chamber hat khola road 1093,Steand shop#6 Road 2/1, ka, 123, New Sukrabad kakrail road shantinogor 78, mothijheel c/a baitul haque 61/ Motijheel bhaban c/a dhaka
Phone Phone
Fax Fax E-mail E-mail
7110457 Fax:88-02-7111787 +880-31- Fax +880-31-710057 711235 +880-27114747, 9125319 7119643
Fax +880-2-8311052 ---
Order basis Order basis Order All kinds of basis Chemicals Importer and Order supplier basis All kinds of Chemicals Importer and Order supplier basis
Fax: 88-02-9568771 E-mail 880-2Fax: ptl@bol-online.com 8618087 880-2-9550573. 9552840 E-mail: Meherab plaza, 9568703 Fax: 88-02-9569971 topaz@bdmail.net 33, topkhana E-mail road utaa@dhaka.agni.com Panam nbsp125, New 880-2E-mail: All kinds of Chemical Kakrail Road, Chemicals A.F.C.C I 123,new kakrail 7160058, 9338710 info@panamFax: 88-02-8321108 Order Corporation Santinagar 880-2chemical.com Importer international road shantinogor E-mail basisand Plaza 7161905 premiercorpobd@yahoo.com supplier Advanced Topaz Chemicals International EST Ltd. Aero- asia (pte) ltd
General Agro ALA Chemicals chemicals Ltd. Tex-Chem Corporation ALPHA chemicals Rainbow Chemicals Ltd.
9/G Motijheel Jeba(2nd tower,57 C/A shahidSuite# tajuddin floor), 2 sharani rasulbag 56/57, Mitford Road 12-13 motijheel c/a rahman Rowshan chamber Dhakatower 152/2a2 1000 green road panthapath
9666518
Product Product
880-2E-mail: 8816610 general@accesstel.net Fax: 88-02-8815316 8319251 8316348, 8315263 9567603 8119225, 8118206
E-mail: %20intramex@bangla.net Fax: 88-02-9559795 E-mail: %20ishna@bdonline.com
All kinds of Order Chemicals basisand Importer supplier Order basis Order Orderbasis basis
BEXIMIN corporation ltd
Ahmed plaza 819begum rokeya sharani shewrapara
8110341
Fax: 88-02-8110341 E-mail beximin@bdonline.com
Order basis
D.S chemicals
Rowshan tower 152/2a-2 green road panthapath
9331604
Fax:88-02-9123735 E-mail bosstank@bdlink.com
Order basis
Sources:
• • •
Yellow pages Personal visit Bangladesh indenters association
Chapter 6: Major Suppliers of Chemicals 6.1Major Sources of Supply
TABLE – 8: List of Major Sources of 1. Sodium bi carbonate
Company Name
Address
Importer or Indenter
Price
Chemicals
257-280
Sodium bi carbonate, Citric acid,
Henan Boom Gelatin Co., Ltd.
96 Middle Of Hanghai Road, Zhengzhou City, He'nan Province. China. 86-37168879601, 66826773
Agies international, Stonewall Limited
Naicy chemical co.,ltd.
Xizang zhong road,
Padma 270-280 chemicals, JDH Chemical Bangladesh Ltd.
shanghai
shanghai, Shanghai, 200001 China . [86] (21) 28682986
Bicarbonate, Sodium bicarbonate
Sinochem Hebei Qinhuangdao Imp. & Exp. Corp.
Fax: +86-335-3609071
Lucky chemicals corporation
260-300
Sodium Benzoate, Potassium Benzoate
Price
Chemicals
2. CMC POWDER
Company Name
Address
Importer or Indenter
Zhengzhou Best Chem Imp. & Exp. Co., LTD.
NO 226, Nanyang Road, Zhengzhou City, China, Henan, China 450053. 86371-6376-9006
Victor Agency
320-430
CMC, Sodium Benzoate, Benzoic Acid
Shanghai Plucky International Trade CO., LTD
lane 1180 No.22 Hualing road west shanghai china, Shanghai, China 200442.PH#86 -021-6636-4118
Fair Contact
300-450
CMC, Sodium Benzoate, Potassium Benzoate
Shandong Longlive Biotechnology Co., Ltd.
Yucheng High-Tech Development Zone, Yucheng High-Tech Development Zone, Yucheng City, Shangdong Province, China Zip: 251200
Saka International Ltd.
280-320
CMC, Sodium Benzoate, Benzoic Acid, Cream of tarter Crystal glucose Hydro generated vegetable oil
3. CITRIC ACID
Company Name
China XiangDing Chemical International Company
Address
Room 604, JiaBuilding,XinDa Du GuangChang, 85#ChangFu Street, Nanjing China.
Importer or Indenter
Price
Chemicals
Stonewall Limited
70-110
Citric Acid & Pharmaceuticals
Agies international
196
Citric acid & Pharmaceuticals
Padma chemicals
90-110
Citric acid, hydro Zen per oxide
Agies international
75-80
Pharmaceuticals. & food chemicals on order basis.
P.C.:210002 ,Tel : 0086 25 84293351 Zhaoping Chemicals ltd (chaina)
DCC Chemicals (korea)
zhaoping@ihjuchem.c om Oriental Chemical Bldg., 50 Sogongdong, Jung-gu, Seoul 82-2-7279-500 www.dcchem.co.kr +82-2-757-4111
Inner Mongolia Tianqi Building IHJUCHEM Xinhu East Road, Industrial CO., Ruyu Arca, Hohhot, LTD China Tel:+86-471 Fax:0086-04712212810 info@ihjuchem.com
4. Sodium benzoate
Company Name
Address
Importer or Indenter
Price
Chemicals
Remex Corporation, Paradise.
120
Sodium benzoate. Citric acid, Pharmaceuticals
Payam Chemical Co. PCCO
No. 59, Khodabandeh Ave., Nasser Khosro St. Tehran, 11166 Iran Phone: (+ +9821) 3113456 and 3118353
Miwon commercial co. ltd
325-1 seoksu 2-dong, anyang manna ,gyeinggi-do430806,korea Ph#+82-(31)472-0161 Fax#+82-(31)-472-9233
Stonewall Limited
130
Sodium benzoate, Potassium, Mechanical products
CFM Oskar tropitzsch
Oskar tropitzsch, gaderstrasse, marktredwitz D95615,germany Ph#+49-(9231)-9619-60
Stonewall Limited
110
Citric acid, Pharmaceuticals
6.1Major Suppliers
TABLE – 9: List of Major Suppliers
Name
Pure Chem Company Limited
Address
64/12 Soi 20 Sukhumvit Road, Bangkok 10110, Thailand.
Contact Address
Tel: +66 2 2581028 Fax: +66 2 2581029
Mailing Address
Local Principals
Products Offer
info@pu rechem.net
Remex Corporation
Food Chemicals
Roquette
DC Chemical Corporation Ashok Alco Chem Ltd.
Inner Mongolia IHJUCHEM Industrial CO., LTD
Roqette Freres 625080 , Lestrem Cedex France Korea
406, Sharda Chambers, 33, New Marine Lines, Mumbai, Maharashtra 400020, India
Tel: 03 21 63 36 00 --Fax: 03 21 63 38 50 Tel: +82-2- dept11@dcchem. 7279-383 Fax: +82-2- co.kr 756-9611
Phone: (22)2006410, 2001796 Fax: (22)-2009456
Tianqi Building Tel:+86-471Xinhu East Road, 2212811/12/ Ruyu Arca, Fax:0086Hohhot, China 0471-2212810
Paradise Corporation
Order basis
Padma Chemical
Citric Acid, Order basis
Grand Corporation
Order basis
Agies International
CITRIC ACID Order basis
---
info@ihjuch em.com
Name
DSM Nutritional Products Asia Pacific PTY.LTD
Address
78 Shelton Way # 21-01 Lippo center Singapore
Doshion Ltd Plot No.: 24 Phase II GIDC Vatva Ahmedabad 382445 India LG Chemicals Ltd
Korea LG Chem Headquarters LG Twin Towers 20, Yeouidodoing,
ISU Chemical Co. Ltd.
Korea Isu Chemical B/D,112-4, Panpo4-Dong, Socho-Gu, Seoul Korea 137-044
Contact Address
Local Principals
Products Offer
Tel: fthcom@ba +65.6325.6200 ngla.net Fax: +65.6220.1976
Fair Trading Corporation
Beverage Chemicals
Tel: +91.79.2583.1 156 Fax: +91.79.2583.3 302
Grand Corporation Ltd
Order basis
Grand Corporation
PHARMACE UTICALS and confectionary
Grand Corporation Ltd
Food chemicals.
---
02-590-6600 fax02-5906666
Mailing Address
arunpahwa @doshion.c om
---
www.isu.co, kr/chemical
6.3 Other Sources of Supply
TABLE – 10: List of Other Sources of Name
Address
Phone
Fax/E-mail
Quantity
RIDDHI MR.NILESH SHAH CHEMICA PROP. LS 15, Sundaram Apt., 4th Name Address Flr., Ramchandra Lane, Malad (W), Mumbai – 400064 Kalpataru Engineering DHRUVAL B/305, Sushila Bldg., Industries ENTER S.N. Road, Tambe PRISES Nagar, Mulund (W), Patel Industries Plot No 5623, Ph-2, Mumbai-400080, GIDC Industrial Area, Maharashtra, India Vatva, Nr. Water Pollution Plant JAIN ACID MR. SATISH JAIN Ahmedabad - 380 AND 19/A, Avenue, 001,Central Gujarat, India CHEMICALS Gandhibagh, Nagpur440012 IRZA MR. ABID JAWA Ningxiang Postal/ZIPRd., Code: PHARMA 109-College Gor-I, Xinyang 410600 (PVT) The Mall Lahore Chemical State/Province: Hunan LTD. Z0 Pakistan, Lahore AsiaCo.,Ltd. [CN] 54000, City:Pakistan. Changsha
(022) 65093994 / Fax: 28832603 (022) 28832603 Phone
Fax/E-mail
Order basis Quantity
0712 ) 2369 --Order basis 45 (022) 66313163 / Fax: Order 56093163 (022) 23453107 basis Email +(91)-(79)- Fax: Order basis dhruvalent@mtnl 25896545 / +(91)-(79).net.in 25894651 25895830 E-mail (0712) 2761283 / Fax: Order patelind@icenet.ne 2766923 (0712) 2761506 basis t (09242) 6371530 Fax: Order Fax:(09242) 86-731-6365632 Citric acid, , 86-7316371531 basis 4587031 4587032 citric.Sodiu m, Monosodiu m citrate
KALPANA MR.CHANDRAKANT 079 ) 25622415 / Fax: Order Lianyungang Postal/ZIP Code: +86Fax: 86-518-5437Sodium CHEMICALS E-186, 1st Flr., 25620518 (079) 25620518 basis Zhengrong 222000 5185912777 042 Citrate, Delhiiangsu Food AdditiveB.G.Towers, State/Province: E-mail Potassium Gate, Ahmedabad – Factory [CN] City: Lianyungang www.lygchen.net Citrate 380004 Hunan Postal/ZIP Code: 86-0731Fax: 86-0731Order basis Dongting Citric 410205 8925288 8902068 INR IYYAPPAN S. 2nd 044 ) 24713089 E-mail Fax: Order Acid ChemicalsMR. State/Province: Hunan TRADING Floor, Kala Complex, (044) 24713089 basis Co.,Ltd [CN] City: Changsha www.hnxyca.com Ashok Nagar, Chennai, Tamil Nadu - 600083
Sources: • • •
Personal visit to the end user, traders, and indenters Yellow page Internet sources
Chapter 7: Major End Users of Chemicals 7. End Users
TABLE – 11: List of Major End Users
Name
Address
Phone
Fax/E-mail
Use Chemicals
Drinks Desh beverage co.ltd German bangle j.v. food lyd
BSECbhaban (1st floor) 102 kazi nazrul islam avenue,Kawran bazar Rns trade international 79, siddashari circular road.
9131442-6
01711-526577
Fax: 880-029127860 e-mail: bengla01@bdmail.n et e-mail: mx@hotmail.com
Cocacola(abdul monem ltd)
6, Nobab habibullah road,shahbagh,Dha ka
9669570
Fax:88-02-9668638 e-mail: aml@bangla.net
Amcl(pran group)
Property heights, 12, r.k.mission road. g.p.o box:83
7167412
Fax:88-20-9559415 e-mail: amcl@pranfoods.co m
Global beverage co.ltd
Youth tower, 822/2 rokeya shoroni mirpur. Dhaka
9115594
Fax:88-02-8113651 E-mail: youth@bdonline.co m
Madina trading co. (pvt) ltd
65-66 DCCI building(9th floor) motijheel,Dhaka
9551922
Fax:88-02-9568395 Email: madina@globalbd. com
Citric acid, Sodium benzoate, CMC powder Citric acid, Sodium benzoate, CMC powder Citric acid, Sodium benzoate, CMC powder Citric acid, Sodium benzoate, CMC powder Citric acid, Sodium benzoate, CMC powder Citric acid, Sodium benzoate, CMC powder
Name
Phone
National beverage ltd
13/1 Topkhana road(3rd floor) segun bagicha, Dhaka
9567929
Fax:88-029567918
Citric acid, Sodium benzoate, CMC powder
Tabani beverage co.ltd
474, Chiriakhana road, boxnagar, mirpur, Dhaka
8012128
Fax:88-0280115232
Citric acid, Sodium benzoate, CMC powder
Techno food agro industries ltd
380/B Mirpur road (3rd floor) dhanmondi#27
9120130
Fax:44-028126181 E-mail: echfeod@citechc o.net
Citric acid, Sodium benzoate, CMC powder
K.Rahaman & C/O Hotel ali company international stand road, barishal
0431-53756
---
Citric acid, Sodium benzoate, CMC powder
Northen ltd
6667,6281
---
Citric acid, Sodium benzoate, CMC powder
inds, Fudighi, bogra
Abdul monem Chittagong unit, 12, ltd ep mohar industrial area kalurghat
031-671532
Fax/E-mail
Use Chemicals
Address
Fax:88-031671547
Citric acid, Sodium benzoate, CMC powder
Name
Address
Phone
Fax/E-mail
Use Chemicals
---
Sodium bi carbonate, citric acid, sodium benzoate, coco powder, sodium cyclamate
Ice cream Bangladesh milk producers co-operative union ltd ( milk vita)
139-140 Tejgaon industrial area, Dhaka
8811828-9
Dhaka ice- 62, Midtown hotel cream shopping arcade industries ltd road#130 gulshan#1
8812437
Fax:88-028823094
Sodium bi carbonate, citric acid, sodium benzoate, coco powder, sodium cyclamate
Emon ice- 67, Motijheel c/a, cream & cold Dhaka-1000 storage
9552341
Fax:88-028113383
Sodium bi carbonate, citric acid, sodium benzoate, coco powder, sodium cyclamate
Rainbow ice- Hussania plaza, cream road#28,house#1,d hanmondi
9122739
---
Sodium bi carbonate, citric acid, sodium benzoate, coco powder, sodium cyclamate
Scoop’s cream parlour
8915769
---
Sodium bi carbonate, citric acid, sodium benzoate, coco powder, sodium cyclamate
ice Sectior-3 baily complex, uttara model town
Name Name
Baneful & co. (pvt) ltd Sajeeb corporation a.b. biscuit co. ltd Agricultural marketing co. ltd (pran) Al –amin brad &Anan biscuits ltd international (pvt)ltd DUB Bakery (Bangladesh) chemical supply ltd co. MCK Ltd
Tower trade Olympia ind ltd corporation Vegitable juice company Olympia bakery & confectionery Tazaqrat enterprise (ptv) ltd
Address Address
397, Sk, mujib road, chittagong
Phone
Fax/E-mail
Phone Fax/E-mail Bakery 716406 Juice
Use Chemicals Use Chemicals
Fax:88-02-710666
Coco powder, egg powder, sodium bi carbonate, Ibrahim 031Fax:88-031Cmc powder, preservative & mansion,12 terri 6330752 610808 preservative, citric others bazaar chittagong acid and others 28, Dilkusha c/a 9550392 --Coco powder, Dhaka egg powder, sodium bi 12 R.k mission 9563126 Fax:88-02Cmc powder, road Dhaka-1203 9559415 preservative,carbonate, citric & E-mail: acid andpreservative others others mkt@prangro 152/1 Ambia monzil, 9347664up.com --Coco powder, bara mogbazar egg powder, 41/bChamelibagh 8312143 Fax: 88-02Cmc powder, st (1 floor) 8322772 preservative,sodium citric bi carbonate, shantinogor acid and others preservative & others 7/a-F.D.C.road 9116386 --Cmc powder, 104, Awladhossain, 8124797 Fax:88-02-9129829 Coco powder, tejgaon1/A preservative, citric Market, room#03 E-mail: egg powder, acid and others nasana@bttb.net.bd sodium bi 6/c/2, 9558803-4 --Cmc powder, carbonate, Segunbagicha, preservative, citric preservative & Dhaka acid and others others th 48, Dilkusha c/a 9558805 Fax:88-02Cmc powder, Amin court 6 floor, PabxCoco powder, nd (2mothijheel floor)Dhaka 9558805 citric c/a Dhaka 9565226--- preservative, egg powder, acid and others 30 sodium bi carbonate, Lily plaza, new 9351410 Fax: 88-02Cmc powder, preservative & circular road, 9335518 preservative, citric others siddheswari E-mail: acid and others 8, Lal Mohan shaha 7114833buks@lpostbo Coco powder, street Dhaka --egg powder, x.com sodium bi 145, Motijheel c/a 9569228 Fax: 88-02Cmc powder, (3rd floor) 9565565 preservative,carbonate, citric preservative & acid and others others
Name
Address
Phone
Fax/E-mail
Al-amin bread & biscuits ltd
Al-amin house,college road, maijdee noakhali 3803
61290
Nabisco biscuit & bread factory
94, Motijheelc/a(1st floor) Dhaka
9554022
Fax:88-2-956146
East asia trading co.
Bogdad building, amer market khatungong, chittagong
031632582
Fax:88-031-610064
French care and pastries
13, M.mali road, lalkhan bazaar chittagong
0316143360
Fax:88-031-610004
Friend’s food product
11, Jamal khan road, chittagong
031612596
Fax:88-321-61079 E-mailal-amin@bttb.net.bd
---
Use Chemicals Coco powder, egg powder, sodium bi carbonate, preservative & others Coco powder, egg powder, sodium bi carbonate, preservative & others Coco powder, egg powder, sodium bi carbonate, preservative & others Coco powder, egg powder, sodium bi carbonate, preservative & others Coco powder, egg powder, sodium bi carbonate, preservative & others
Sources: • Personal visit • Information from the traders and importers • Yellow page
Chapter 8: Competitors Competitors Bangladesh is converting from agri- based to industrialized based society. So the use of chemicals is increasing at a high rate. A large number of people are engaging in chemical business. Now a day about 50,0000 people are directly or indirectly involved in this sector.
Researchers also predicting that this market will increase and will be more competitive with years by years. On our survey we got that this chemicals market is very much competitive. It has a balance demand; price is backed by the major importers and no large institution haven’t directly involved in this market. Large end users mainly import major chemicals by their own and for their own use not for resell. For minor chemicals they mainly depend on the local traders, indenters and importers. These minor chemicals have a huge demand and their quantity is huge. So I think in this task ACI has a great opportunity to perform as an indenter or as an importer. As ACI has enough capital and manpower it will be easy to grab the market and to be the market leader within very short period of time. In this case of competition ACI has some strong support: •
ACI has enough resource both capital & manpower.
•
ACI has market goodwill, so end user can easily rely on them.
•
Foreign suppliers are willing to start business with ACI.
•
Large number of end users are also the client of ACI ,
•
ACI also continuing good business relationship with local & foreign companies.
•
Credit support is very important.
•
Assurance to the end users for shipment of chemicals.
•
ACI can also provide logistical support.
•
As ACI is a well recognized company they can easily protect import barriers.
Chapter 9: Major Findings Major Findings ACI is one of the leading local giant in Bangladesh, as it has several wings (share, consumer, seeds, agro-product and trading). In case of expanding their business in chemicals do believe that it will be a first-rate idea. Doing this problem study would realize that there is a huge demand of food chemicals each year. So it will be an affective idea to expand there business in this sector as it has market demand and ACI has a market position. Can suggest this through educational skill. 9.1 Growth Opportunities We can forecast the market of ACI through the growth opportunities. In this case we can see that ACI has a new product and they may have both old and new customers. As we know that in Bangladesh there over 15000 local and brand bakeries, 150 beverage and ice cream factories. And the most competitive advantages are that there is no huge company or firms involved in chemicals business. ACI has good will and strong capital back up, so it will very
easy to grab the existing market within a very short period of time. Here we can see the initial market position for ACI. NEW MARKET
MARKET PENETRATION
MARKET EXPANTION
FORMAT DEVELOPMENT
DIVERSIFICATION
EXISTING PRODUCT
EXISTING MARKET
NEW PRODUCT
ACI
9.2
SWOT Analysis
ACI has a favorable position through the whole chemical market. We can easily understand this by the SWOT analysis. Here we can mane sure that the condition we have to expand, minimize and control. The foremost concentration is that there are a few huge competitors in the market and the mainly maintaining the whole market, there price and supply. Most of the traders mainly collect products from there importers or indenters. On the field most of the end user and the traders are not happy with the rules and regulations of government and the importers. So in this case ACI has a great opportunity. We can see the SWOT analysis of our study.
Strength • • • • •
Good will Capital Market demand Reliability Client Relationship
Weakness •
Aci can easily solve every problems through marketing research
Opportunities • • 9.3
Larger competitors are not yet exist Easily grab the market through goodwill
BCG Growth-Share Matrix
Threats • • • •
New market New product Political instability Traditional business mentality of marketers
Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. In the early 1970's the Boston Consulting Group developed a model for managing a portfolio of different business units (or major product lines). The BCG growth-share matrix displays the various business units on a graph of market growth rate vs. market share relative to competitors. SBUs are classified as stars, cash cows, question marks or dogs. Cash Cow - a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. Star - a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures. ACI is in star position because it has enough market share and strapping capital. Question Mark (or Problem Child) - a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. Dog - a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.
Analysis By analyzing sales records and market data of ACI, we can conclude that ACI is in Star . ACI is well-known and familiar in the market. their market shares are too high as well as growth rate is too fast. For these reasons we can consider ACI, to be in the star.
Analysis of Annual Sales of Chemicals by ACI (From 30th June 2004 to 30thJune 2005)
Year
Total Sales
30 June 2004
1,568,410,000
30 June 2005
1,322,719,000
TABLE – 12: Annual Sales of Chemicals
GRAPH – 8: A Chart Showing Annual Sales of Chemicals
1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 2004
2005
From the above Table and Graph we can clearly understand that growth rate of ACI Trading Ltd. is increasing very rapidly. Between year 2004 and 2005 this growth rate was about 19%. This high growth rate backed up by relatively high market share refers that in BCG growth-share matrix ACI is in the Star. The BCG matrix provides a framework for allocating resources among different business units and allows one to compare many business units at a glance. However, the approach has received some negative criticism for the following reasons: •
The link between market share and profitability is questionable since increasing market share can be very expensive.
•
The approach may overemphasize high growth, since it ignores the potential of declining markets.
9.4 The concept of Product Life-Cycle & ACI Product life-cycle is the course of a product’s sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline. Product Development: It begins when the company finds and develops a new-product idea. In this stage generally a company faces following incidents: 1. Product born stage 2. Find and development of new product idea 3. Pre commercial stage 4. Limited production and zero sales Introduction: This is a period when of slow sales growth as the product is introduced in the market. Introduction stage faces the following incident: 1. Stage of product commercialization 2. High market cost and low profit margin 3. Growth and maturity stage depends on how product introduce toward customer 4. Low increase of sale Growth Stage: Growth is a period of rapid market acceptance and increasing profits. In this stage the product’s sales start climbing quickly: 1. Create market acceptance for product 2. Increase amount of production and reduce per unit production cost 3. Increase product quality and improve production technology 4. Face competition with other similar company Maturity Stage: Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. It includes the following incidents: 1. It is the most satisfactory level of the company 2. Achieve optimum profit margin 3. Extent the existing market 4. Increase number of competitors and competitions Decline: This is the stage when sales fall off and profits drop. It is the most critical time of the company. It includes the following incidents: 1. Customers preferences change 2. Fall sale as well as profit margin 3. Competitors create some gap by establishing better POP and POD. Product Life-Cycle stage of ACI Trading Limited
Now ACI is going to introduce chemicals in new sectors. ACI has started their journey in 1992. Standing at present we can see ACI is a successful company. It has its relative market share and enough capital. So according to these criteria we can say ACI is in introduction stage in food and beverage chemicals business. Some Supporting Reason for which considering that ACI is in the introduction stage in the product life cycle: 1. It already achieved a market acceptance in various others areas and now going to expand their business in Food & Beverage Industries. 2. At present ACI supplies different products in different sectors to the market for its increasing demand. So, for its existing logistic support cost will go down. 3. As ACI has already gained a substantial experience by operating in the market and the use of improved technology, it has availed to obtain high quality. 4. ACI has faced very hard competition with the similar types of company & has enough experience as well as knowledge about market. Product Life Cycle Product Development
Introduction
Growth
Saturation – Maturity
ObsolescenceDecline
In Introducing Chemicals in Food & Beverage Sector Position of ACI Trading Ltd.
Marketing Program ACI from the viewpoint of 4Ps of Marketing Mix•
Product Strategy: Main focus need to be given on the two following areas o No Compromise in Quality will be the strength of ACI Trading Ltd in this new sector “Food & Beverage”. o Packaging & Proper Maintenance is another key area to give exclusive concentration. •
Penetration pricing will be beneficial for ACI as they are new entrant in food & beverage sector. As ACI is a well establish organization, at some area they can go for competitive pricing too.
o o
•
Pricing Strategy: In Food & Beverage Sector it will be beneficial for ACI to adopt any of the following pricing strategies –
Distribution Strategy: In this case ACI should engage in selective distribution. As ACI has a strong distribution network, they can easily reduce the cost. Selective distribution will be able to solve the basic demand of the end users, traders Distribution policy for individual consumers. Concentration need to given in developing following strategiesstrategy for the industrial consumers Distribution strategy for overseas market
o o •
o o o
Promotion Strategy: In chemical business ACI should provide emphasis on direct marketing. As a result good relationship will be build up among the traders, importers, indenters and end users. Focus should be given each of the following areas – Promotion for individual consumers Promotion for industrial consumers Promotion for the overseas marke
Chapter 10: Recommendations Recommendations
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Setting Competitive price (as much as possible):
•
As the market is highly competitive and large number of buyer and seller exist so price should be competitive. As ACI is going to a new market so penetration will be effective. Here ACI should concern how they can reduce the operation cost.
•
Risk bearing ability:
•
ACI is a well known company, so it will be very much easier to risk reducing. There are altos of business partners. So they will easily connect with ACI for their reputation.
•
Keeping good relation with major Traders & Small importers:
Traders and small importers are the core of chemical market. So in this case ACI should keep a good relationship with them. • • • • • • •
•
Credit offer Logistical support Assurance Timely shipment Linking end users Information support Legal supports
Proper market intelligence: We are providing information as an intern. So may have some limitation in survey. So I am suggesting ACI to perform professional survey on our study. •
Satisfying End Users by providing related chemicals:
In this case ACI can provide support to end users through several ways: • • • •
Provide other chemicals Provide newer source of supply Easily and cheap chemicals Right time of delve
Chapter 11: Conclusions Conclusions It is necessary to know the relevance between theory and practical knowledge as well. So, as a partial requirement of BBA program get attached to ACI Ltd. to complete my internship. Want to put potentiality in to the practical field. For this opportunity like to thank Mr. Azmal Hossain, Executive Director, ACI Trading Limited.
After this whole task I got a very clear idea about the weakness and strength of the chemical market of Bangladesh. With the increase of standard of living, demand for chemicals is growing at an elevated rate. As a result a large numbers of people are engaging in this chemicals business. Though this site has prospect our government are not taking strong initiatives. So, large damage occurs by taxation, shipment, tariff and logistics. Finally, from my research and survey can suggest that in food and beverage sector Citric acid, Sodium benzoate, Sodium bi carbonate, Hydrogen per oxide, CMC powder, Cream of tarter has a huge demand in both local and foreign end users. So, ACI can start importing of these chemicals. Both the end users and ACI will be profitable. REFERENCES
No.
Web sites
1.
www.bdyellowpage.com
2.
www.google.com/search
3.
www.aci-bd.com
4.
www.alibaba.com
5.
www.bdcommerce.com
6.
www.bdeconocy.com
Date
10/01/06-20/3/07
SPECIAL THANKS •
like to thank Mr.Azizul Haque, (GM), Nabisco, Mr, Rafiqual Islam, (foodtechnolist) HAQUE BROTHERS ltd, Mr Jasim Rahaman, (product manager) Polar, Mr Golam Morshed (key account manager) Beverage distribution ltd. Mr Taher Ahmed (product analyst) Dipjol Foods.
•
like to thank Mr. Al-Haj Md. Balayet Hossain general secretary, & Md. Ibrahim Fuad, press secretary, Bangladesh Chemicals & Perfumery Merchant Association, for providing me vital information and helpful hands. Also show my gratefulness to different traders who share some confidential information with me.
•
like to thank Mr. Neyamat-U-.Mazumder chief executive of INOVA international and other indenters. Special thanks to Kamal Hossain Polash director Bikalpa Pharmaceuticals ltd.
•
Special thanks to Mr. Saidur rahaman Director Statistic Bureau.