First, fast, furious...Bangladeshi business blog

We provide
--social media strategies for Bangladeshi businesses worldwide
--public speaking on Bangladeshi businesses and social media
--paid product/service/website reviews of Bangladeshi companies

Interested to place an advertisement for your business?
Showing posts with label heidelberg cement. Show all posts
Showing posts with label heidelberg cement. Show all posts

Friday, August 10, 2007

Time to get flooded...with money!

Heidelberg Cement has appeared to be a soldier fighting the evils of recent floods in Bangladesh. Yesterday they published a front page advertisement in Daily Star saying that 'for every pack of their cement we buy, 1 taka from it will go to the aid of flood victims of Bangladesh'. Amazing example of charity isn't it? The company has never forgotten the misery of the flood-hit people of Bangladesh, their hearts bleed to see the plight of rural Bangladesh in despair. At the same time, the cement manufacturer never overlooks another opportunity to squeeze out money of our pockets at the cost of the flood victims, their business acumen is worthy of praise, they have clearly shown how to take opportunity of circumstances and increase sales figure. So I buy 100 packs of your cement say at 100 taka and you will pay 10 taka to the flood victims and I will go home happy thinking that I have made my minutest but morally significant contribution to help the flood affected countrymates. But hang on hang on hang on....where does the rest 90 taka go? Oh...pardon me for explicitly mentioning that it will go to your pocket, after all its your business, so its taken for granted that you will make money, no matter what...be it floods or cyclones or fire, as long as you are safe and sniff out money, you will dig out money. Thanks.


In a world of 'cause and effects' we at Bangladesh get bothered about the effects, we do talk about the causes once in a while but we, till now, never have managed to do something definitive about the root causes of the 'most of the time miserable' effects that follow consequently. Floods in Bangladesh are a predictable natural calamity, we all know it. But until and unless we are hit by it, our homes...sorry their homes are washed away by it and we stand in front of epidemics and human disasters, we don't seem to take any proactive measures against it. A word of wisdom is to be able to distinguish between what is controllable by us and what is not. To what extent we can prevent floods from happening in Bangladesh? Geographically speaking, being the largest delta of the world does come with a heavy price. We live in a land which is the mouth of many mighty rivers...rivers which are the lifelines of any human establishments. Now we cannot change geography...so we don't. But many a times the lifelines that flow through our country are grabbed by the throat by highlanders...leaving us grasping for water...leading to droughts. And when we don't want any more fluid, the highlanders let loose all gates and we have floods in our pants. Now this is man made and we can change this....politically. But we could not..thanks to our politician babas and babes. Pigs, prostitutes, politicians all start with a P. Pigs are unconsciously dirty by nature, many prostitutes unwillingly trade fleshy entertainment due to circumstances, but politicians have the unique ability to consciously show characteristics of both from time to time. Poverty, pollution, prime ministers, presidents, political parties, prices etc. all start with a painful P, beyond the 4Ps of product marketing and 7Ps of service marketing, we in Bangladesh need to devise N number of Ps to tackle the evil Ps eating up Bangladesh.


Prevention is also better than cure. When we know that we are going to have floods every year, why don't we take measures to prevent it? Why don't companies like Heidelberg Cement make use of their cements to build dams and embankments before the disaster strikes? Will they accuse the government and their bribe-ridden bureaucratic processes even to accomplish a CSR? Well its always easy to blame the government but the business-motived actions of the corporates during times of calamities do not make them look like saints sent from heaven to ease away our misery. I am sure in the coming days you might see the event management firms of Bangladesh making best use of the 'event' (floods) when they will arrange charity concerts, fashion shows, dinner etc......just to aid the poor and flooded of Bangladesh. The rich and the affluent will sway away with the tunes of Ayub Bachchu or Atif Aslam in the concerts in Radisson or Regency and will keep praying that floods don't reach their mansions in Gulshan, Baridhara, Dhanmondi or Banani. I wonder why these mushrooming event management firms don't arrange awareness, health safety events in villages, other city centers when there is no flood. Where is their sense of charity when our grounds are dry? No wonder they wait for the right moment to come, the floods...when they can apply emotional advertising to raise funds, give a portion to the flood victims, take lots of good photos, publish them in the national dailies and go home...flooded with...money!

Monday, July 16, 2007

Cementing the leading position

FE Report
HeidelbergCement Bangladesh Ltd., sold more than one million tonnes of cement in calendar 2006, maintaining the company's market leadership.The leading cement company's sales volume rose to 1,010,478 tonnes in the year ended December 31, 2006 from 816,470 tonnes of the corresponding period of the previous year."Our two brands -- ScanCement and RubyCement -- maintained a leading position in cement market due to high quality and uninterrupted supply that helped achieve a new milestone in sales volume in the year," director of the company Md Ziaul Haque Khondker told the FE Sunday.The company held the 18th annual general meeting (AGM) June 7 and approved a cash dividend at the rate of 16 per cent and stock dividend at the rate of 5.0 per cent against each share for 2006.The cash dividend was 8.0 per cent and stock dividend 10 per cent for 2005.The company's net profit whopped to Tk 521.57 million in 2006 from Tk 148.69 million in the previous year. Earlier, the company incurred losses for two consecutive years in 2004 and 2003."The previous years were somewhat challenging for our shareholders, but 2006 was an exceptional year in the company's history in every way," Daniel Lavalle, (French?)chairman of HeidelbergCement Bangladesh said in the latest annual report.The company's net sales turnover rose to Tk 5.0 billion in 2006 from Tk 3.65 billion in 2005.According to the company's post balance sheet events, sales from January 2007 to March 2007 were 250,090 tonnes against 292,139 tonnes of the previous year.The earning per share soared to Tk 97 in 2006 from Tk 31 in 2005.Commenting on the cement sector's overall situation, managing director of the company, Jean-Claude Jamar said the sector attained a growth of 10.8 per cent in 2006 against an estimate of 8.0 per cent because of delayed monsoon and prompt fund release for the construction projects of the government. Shortage of clinker, frequent power outages and higher freight cost affected the sector in 2006, the annual report pointed out.The company, A-category share, was traded at Tk 1232 against the face value of Tk 100 each Sunday on the DSE. The company, previously known as Chittagong Cement Clinker Grinding Co Ltd., got listed on the DSE in 1989.Later in early 2003, the scheme of amalgamation of Scancement International Ltd., and Scancem Bangladesh Ltd., with Chittagong Cement was approved by the high court.The other listed companies in cement sub-sector on the DSE are Lafarge Surma, Meghna Cement, Niloy Cement, Padma Cement, Confidence Cement, Aramit Cement and Modern Cement.
Good going by Heidelberg, I wonder how Lafarge Surma is playing the catch-up game. Any headway in their legal tussle with Indian authorities?

Sunday, May 20, 2007

Holcim enters Indian market

Bangladesh is finally going to export cement in bulk to the northeastern Indian states from early next month. Holcim Bangladesh (Pvt) Ltd recently got thumbs up from the Indian government to export cement to Assam, Meghalaya and other northeastern states. The multinational cement manufacturer is already exporting cement to Tripura. Holcim also entered an agreement in April to supply cement for a big government-financed project--construction of highways in Assam, he said. India generally does not allow Bangladesh Standard and Testing Institute (BSTI) certification for import of cement from Bangladesh (why?).The local cement manufacturers need to get the standard certificate from the Bureau of Indian Standard (BIS), which takes time. Local manufacturers have long been saying that such a certification is a major barrier other than tariff to exporting cement to the Indian market, especially to the northeastern states. The BIS finally accepted the BSTI certificate for import of Holcim cement.
Commerce ministry officials said a team of experts from India would come to Dhaka soon to assess capabilities of Bangladeshi testing labs for certification of cement. Bangladesh would take measures to strengthen the BSTI after the assessment, the officials said. Holcim began its journey in September 2000 through acquisition of Hyundai Cement Bangladesh. Later, Holcim bought out United Cement Industries at Meghnaghat and Saiham Cement Industries at Mongla to strengthen its position in Bangladesh. Holcim's combined capacity now stands at 1.3 million tonnes a year. Bangladesh has 21 cement factories with an annual production capacity of around 80 lakh tonnes. The local annual demand is about 60 lakh tonnes. Good going Holcim, I wonder what Lafarge Surma Cement, Heidelberg, Shah Cement etc. are doing on the export front? Do they export? What are their capacities?