Monthly Business Review - March 2015 PDF

Volume 11 l Issue 3 l March 2015
CONTENTS this issue

ECONOMY COVER STORY
Development process to slow down for political turmoil 28 Bangladesh’s Cement Industry: Thriving
After Years of Restructuring
Bangladesh becoming a top spot for Muslim travelers 28
Bangladesh cement industry is the 40th
largest market in the world. Cement, being
a bulk commodity, is a freight intensive
TRADE industry and transporting it over long
02
distances can prove to be uneconomical.
Exporters fear growth may drop for unrest 30 For that reason, the industry in Bangladesh
is regional in nature.
More investment required for escalating tea production 30
IDLC NEWS
BUSINESS
IDLC and USAID arrange a 3 day event in Chittagong titled
“Industrial Best Practices for Energy Efficiency”
Cotton consumption ascended on rising garment export 32
Global demand to coerce home textile investment 32
REGULATORY NEWS
Banks to turn their back on call money market 34
42
Central bank imposed on indebted banks 34
INTERNATIONAL
Facebook bought shopping search engine ‘The Find’ 37 IDLC CSR NEWS
EU to query cross-border e-commerce barriers 37 IDLC organizes an Environment Awareness Workshop for
School Teachers
MARKET ROUNDUP
Commodity Market Roundup 38
Currency Market Roundup 39
CAPITAL MAKET REVIEW

Market Commentary 44
43
Design & Printing nymphea
All rights reserved. No part of this newsletter may be

reproduced in any form, by print, photoprint, microfilm or any
other means without written permission from the publisher.
If you have any comments and/or
suggestions, please write to us at mbr@idlc.com
IDLC MONTHLY BUSINESS REVIEW
Cover Story
Bangladesh’s Cement Industry

Thriving After Years of Restructuring
- Md. Yasin Hossain
C
ement is one of the major elements on which today’s civilization stands. In academic term,
cement could be defined as a fine, soft, powdery-type substance which is made from a mixture of
elements that are found in natural materials such as limestone, clay, and sand. When mixed with
water, cement sets, hardens and bind other materials together. Color of cement is usually gray,
though white cement is also found but comparatively more expensive in usual cases. There are 27 types of
common cement which can be grouped into 5 general categories and 3 strength classes: ordinary, high and
very high. In addition, some special cement is also available like sulphate resisting cement, low heat cement
and calcium aluminate cement. Only cement has the ability of enhancing thickness of concrete which in
return provides better bonding among the elements used in a concrete mix. Cement used in construction
can be characterized as either hydraulic or non-hydraulic; depending upon the ability of the cement to
be used in the presence of water. Following the natural condition of Bangladesh, hydraulic cement (e.g.,
Portland cement) is more appropriate as the chemical reaction after use allows construction to set in wet
condition and protects the hardened material from further chemical attack.
The amount of The amount of cement consumed by a country is an important indicator for identifying its economic
cement consumed progress while the demand is closely linked to the growth of construction sector. However, due to long
by a country is implementation period (around two years) for new capacity building, existing demand scenario may
change. This can lead to a fall in cement prices, and the industry could face a downturn, leading to reducing
an important
operating rates or shutting down capacities.
indicator for
identifying Global Scenario
its economic
progress while Cement plays a significant role in the development of national economy. To support the rapid growth of
the demand is urbanization throughout the world, accumulated world production of cement is increasing in a relentless
basis. Research report of international cement review stated that the global demands have doubled
closely linked
within a decade between 2002 and 2012 from 1.8 billion MT to 3.7 billion MT; reflecting a CAGR of 7.4%
to the growth which was much higher than the CAGR of 4.3% in the previous decade (1992-2002) though 5 year (2007
of construction to 2012) CARG was 6.2% and is estimated to be CAGR of 4.3% for the period 2012 to 2017. According
sector. to Mineral Commodity Summaries of January 2015 published by U.S. Geological Survey, estimated World
Production and Capacity of cement was 4,080.0 million MT in 2013 which climbs to 4,180.0 million MT last
2
WORLD CEMENT year. Continuous increment of cement demand is fueled by rising investments in infrastructure among the
developing countries of the world; driven by economic growth and increasing per capita income levels. The
PRODUCTION world production as well as consumption is dominated by China followed by India; together they account
IN 2009 for more than 50% of the total cement produced and consumed in the world. Other major countries are
4.60%
USA, Brazil, Russia, Vietnam, Iran, Turkey and Japan. Capacity expansions in China, India, Saudi Arabia, UAE,
2.40%
2.50%
5.50% Turkey, Egypt, and Brazil at a significant level are underway and planned for the next few years. The largest
0.40% global players are Lafarge (France), Holcim (Switzerland) and Cemex (USA). In the various markets around
the world, these companies compete each other and also against strongly-established local producers.
8.60%
0.40% Following the product’s nature, cement has regional concentration both in production and consumption
54.20%
13.40% as transporting over long distances reduce the bottom line profitability of the producers by adding cost
which makes cement a regional commodity where lower distribution cost is remunerative for producers.
6.20%
Cement consumption varies region wise because the demand-supply balance, per capita income and
1.80%
level of industrial development differ in each region. In a recently published article, it was mentioned
China Japan
Oceania CEMBUREAU that the per capita cement consumption of Bangladesh is 107 Kg, which is 210 Kg in India, 265 Kg in
Other America USA
India Other Asia Pakistan, 310 Kg in Sri Lanka and 570 Kg in Korea. Recently world’s two largest cement makers, France’s
Europe Union CIS
Africa
Lafarge and Switzerland’s Holcim, agreed to a merger to create a company worth USD55 billion with
a presence in more than 90 countries. If it happens then it will change the business dynamics of the
Source: Global Cement Magazine
industry throughout the world.
Bangladesh Perspective
There was no cement factory under private ownership in Bangladesh upto the year 1994 as Government
forbids the sector and following such inability of production, total demand of cement was fulfilled by
imported products. After getting positive Government node several multinational manufacturers as well
as local entrepreneurs rushed for capitalizing the windows of opportunity. However, following the capital
intensive business nature it took years for the producers to enter in the Greenfield sector. Breakthrough of
the industry came when M. I Cement started exporting their product (Crown Cement) in 2003 and within
a decade of industry’s birth, aggregate production capacity of the country exceeds its demand. So far,
several Bangladeshi manufacturers have experienced to export own brands to seven sister zone & West
Bengal of India and there remains a good potentiality to accelerate the export volume. During the year
CEMENT DEMAND 2002 and 2006, rapid increase of construction works in housing, industry and public sector gave comfort
to the local cement manufacturing companies. Afterwards, due to global economic turmoil the cost of all
AND CAPACITY commodities along with the rising fuel price pushes the cost of construction materials including cement.
Moreover, Bangladesh’s political instability after 2008 affected the demand of cement, causing stressed
28 situation for cement manufacturers. The industry got a breathing space during 2010 to 2012 but again
2014
17.5 faces trouble following the rough socio-political situation.
25 There are five types of Portland cement used in the world. Among them, two types are produced and
2013
used in Bangladesh (type- CEM I and CEM II). CEM I is named as Ordinary Portland Cement (OPC) with
16
no SCM (Supplementary Siliceous Materials; such as fly ash, slag, silica fume etc.) while CEM II is Portland
22 Composite Cement (PCC) where SCM or pozzolana is added by replacing a significant portion of clinker. In
2012 areas of durability problem such as sulphate or chloride attack, PCC performs better. The basic difference
15
between OPC and PCC lies in the use of raw materials. To produce OPC, 95% clinker is required while in
PCC percentage of clinker in the mixture stays between 65% and 80%. As a result, PCC is gaining popularity
21
2011 worldwide due to its environmental significance and comparative low cost. Traditionally, OPC was used in
14.5 Bangladesh and since 2003, production of Portland Composite Cement (PCC) has been started complying
with the guidelines of European Standard Methods (ESM).
20
2010
13.9 Portland cement is the most common type of cement used in general, not only in Bangladesh but also around
the globe. Portland cements can be modified easily, depending on the raw materials used and the process used
Demand (Million Metric Tons) to combine them. Of the numerous blends of Portland cement, Ordinary Portland Cement (OPC) and Portland
Capacity (Million Metric Tons)
Composite Cement (PCC) are mostly used in Bangladesh. PCC is fit for all kinds of construction, while OPC is used
Source: IDLC Research Report 2013 in cases where salinity, heat, moisture, weather, etc. related problems are considered for construction works.
3
MARKET Bangladesh has a high need for basic infrastructure, housing and services which are supported
by incremental economic activities, and therefore, a robust growth is expected in the demand for
SHARE cement. Based on market volume, the cement industry of Bangladesh is the 40th largest market in
the world, at present. The country’s increasing urbanization has stimulated the building materials
16% sector and has generated considerable needs for cement. Most of the large cement manufacturing
companies operating in Bangladesh undertook capacity expansion plan in last five years, to tap the
10% opportunity. However, due to delay in starting construction of Padma Bridge, current political turmoil,
economic slowdown coupled with sliding business of real estate sector, the demand for cement was
52%
8% not increased as per expectation for which the sector may face challenge to ensure economic range of
utilization in near future.
7%
7%
Cement sector in Bangladesh experiences seasonality. September/October to April/May is the peak
Shah Cement Heidelberg season where the demand usually inclines; however, the demand declines during May/June to August/
Meghna Lafarge
September (depending on monsoons). Manufacturers gives incentive, commission and foreign trip
Holcim Others
campaign to target achiever (includes company employed executives and dealers/distributors/traders)
Source: IDLC Research Report 2013
over the year while taking promotional activities in off pick season. Following the undifferentiated
commodity nature of cement, the industry is characterized as a very high competitive business area, not
in Bangladesh but throughout the world. The bargaining power of the customers is limited irrespective
of having excess capacity in the sector as most of industry players struggles to achieve economies scale
of production. Many national level producers set marginal profit while entering in new regions which
pushes regional manufacturers to set back. Moreover, the requirement of high electricity requirement,
environmental concerns and entire dependency on imported raw materials eventually put strong barriers
for new entrance. To market own products in Bangladesh a cement brand needs to be accredited by BSTI
to ensure its quality, weight, and services.
Industry Participants
Cement is one of the most competitive industries in Bangladesh as it has surplus capacity alongside
having the presence of worldwide prominent cement makers including Holcim, Lafarge, Cemex and
Heidelberg. Since 1994, more than 120 companies were registered with the Board of Investment as
a cement manufacturer; among them around 75 came into operation and of them almost all the small
factories (specially in Mongla, Khulna, Jessore and North Bengal areas) were forced to shut the production
following their financial inability to compete with national players in the face of rising production costs,
location disadvantage and shortage of utility supply. In June 2013, Semen Indonesia, announced that the
company is planning to acquire a cement plant in Bangladesh, but so far no movement was reported in
mass media in this regard. As per the estimation of Bangladesh Cement Manufacturer’s Association (BCMA),
the industry comprises of 95% Grinding Projects and 5% Integrated Projects. Industry specialists estimated
the annual demand for cement in the country lies between 18-20 million tons, while the combined
production capacity of the active cement producers is more than 36 million ton, almost double of local
demand. As capacity exceeds local demand by huge margin, several producers desperately searches new
ways to tap new export markets. Still, there are some companies producing for geography concentrated
markets only as carrying and familiarizing regional brands in far places is economically burdensome. In
spite of excess capacity and tight economic growth, several manufacturers are still involved with capacity
enhancement (like Aman Cement Mills Ltd, Shun Shing Group and Olympic Cement Ltd). At present, seven
cement companies are listed in the two stock exchanges. The portfolio is made up of two multinationals
and five local cement companies. The multinationals are: HEIDELBERG Cement Bangladesh Ltd, which
was enlisted on the DSE in 1989 and on CSE in 1995, and Lafarge Surma Cement Ltd., which was enlisted
on both exchanges in 2003. Of the local companies, Confidence Cement Limited was enlisted on both
exchanges in 1995; Meghna Cement Mills Ltd was enlisted on DSE in 1995 and on CSE in 1996, Aramit
Cement Limited in 1998, M. I. Cement Factory Limited in 2011 and Premier Cement Mills Limited in 2013.
The Country’s cement sector employs over one lac people, both directly and indirectly. All these with the
slower pace of development activities has made cement market growing at lesser pace in recent times and
the effect was evident in most front side companies.
4
List of prominent market players

Capacity
Start Access to
Name of the Company Affiliated Group Brand (Million
Production River
MT/p.a.)
Akij Cement Company Ltd 2002 Shitalakshya Akij Group Akij 1.20
Aman Cement Mills Ltd 2003 - Aman Group AmanCem 0.21
Anwar Cement Limited 2002 Meghna Anwar Group Anwar 0.24
Aramit Cement Limited 1999 Karnaphuli Aramit Group Camel 0.21
CEMEX Cement Bangladesh Ltd 2001 Shitalakshya Mexico based CEMEX CEMEX 0.55
Confidence Cement Limited 1994 - Confidence Group Lion 0.75
Malik Group and Habib
Diamond Cement Ltd 1998 Karnaphuli Diamond 1.33
Group
Seven Horse and
Eastern Cement Industries Ltd 1999 Shitalakshya Doreen Group Seven Horse 0.54
Supreme
Heidelberg Cement Bangladesh
2000 Karnaphuli Ruby 1.45
Ltd German based Heidelberg
Heidelberg Cement Bangladesh Cement Group
1999 Shitalakshya Scan 1.20
Ltd
Holcim (Strong, Red
Holcim (Bangladesh) Ltd 2000 Meghna 2.20
Swiss-based Holcim and Strong)
Holcim (Bangladesh) Ltd 2014 Pashure
JV between Lafarge and Supercrete,
Lafarge Surma Cement Ltd 2006 Surma 1.50
Cementos Mollins Powercrete
M.I. Cement Factory Ltd 2000 Dhaleshwari GPH Group Crown 1.74
Madina Cement Industries Ltd 2007 Meghna Tiger 1.69
Madina Group
Madina Cement Mills Ltd 1997 Buriganga 0.09
Meghna Cement Mills Ltd 1996 Pashure King 1.00
Bashundhara Industrial 2008 Pashure Bashundhara Group 1.20

Bashundhara
Complex Ltd
2012 Shitalakshya 2.10
Metrocem Cement Ltd 2002 Dhaleshwari Metrocem Group Metrocem 0.13
Mir Cement Ltd 2000 Shitalakshya Mir Group Mir 0.18
Mongla Cement Factory 1994 Pashure Sena Kalyan Sangstha Elephant 0.60
Olympic Cement Ltd 2002 Kirtonkhola - Anchor 1.20
Premier Cement Mills Limited 2004 Shitalakshya - Premier 2.40
Kabir Steel Group & BSA
Royal Cement Limited 2001 Royal 1.15
Group
S. Alam Cement Limited 2000 Karnaphuli Minar 0.43
S. Alam Group
Portman Cements Limited 2005 Karnaphuli Cemex 0.18
Seven Circle (BD) Ltd 2001 Shitalakshya Hong Kong Based Shun Seven Ring 1.60
Shun Shing Cement Mills Ltd 2014 Rupsha Shing Group Seven Ring 1.30
Shah (Special &
Shah Cement Industries Ltd 2002 Dhaleshwari Abul Khair Group 5.20
Popular)
Unique Cement Industries Ltd 2001 Super Fresh, Fresh,
Meghna Meghna Group 3.60
Fresh Cement Industries Ltd 2010 Meghnacem
* The chart is prepared from available secondary data.
There are some other manufacturers who are also operative at present in different niche market which
includes Ahad Cement Ltd, Alhaj Mostafa-Hakim Cement Industries Limited, Chhatak Cement Company
Ltd, Dubai Bangladesh Cement Mills Ltd, Emirates Cement Bangladesh Ltd, Niloy Cement Factory, NGS
Cement Industries Limited and Noapara Cement Mills Ltd. While all the manufacturers in Bangladesh
As capacity producing their own brands, ‘Lafarge Surma Cement Limited’ has a strategic agreement with ‘Madina
exceeds local Cement Industries Ltd’ (MCIL) to manufacture one of their brands namely ‘Powercrete’ using only MCIL’s
demand by new facility. Lafarge also has an agreement with ‘Metrocem Cement’ that Lafarge Surma Cement will supply
huge margin, clinker to Metrocem for producing a Portland Composite Cement brand under the name of ‘Duracrete’ for
Lafarge Surma. If the recent merger deal between Lafarge and Holcim takes place, then it will reshape the
several producers
industry dominance in Bangladesh as both the companies already operates own business here.
desperately
searches new Raw materials
ways to tap new
export markets. Two types of materials are necessary for the production of cement: one rich in calcium or calcareous
materials such as limestone, chalk, etc. and one that is rich in silica or argillaceous materials such as clay,
5
AMOUNT which are extracted from quarry. There are also various other raw materials used for cement manufacturing
(i.e. fly ash, slag, gypsum, mill scale and bauxite). From the basic mineral/natural raw materials, clinker, the
OF CLINKER main ingredient for producing cement, is produced. The cement manufacturing companies in Bangladesh
IMPORTED (USD IN are highly dependent on imported raw materials including clinker as Bangladesh does not possess
MILLION) adequate mineral resources like limestone, as the land is composed of silt and sediment. Clinker plays the
most vital role for ensuring the strength and quality of cement and more than 80% of the clinker used for
cement production in Bangladesh is imported. Of the 30 plus cement producers only two have clinker
2013-14 619
production facility at their own plants. One is Chhatak Cement Factory Ltd, a government owned company,
2012-13 487 with limited production capacity and another one is Lafarge Surma Cement Ltd. Both factories are situated
at Chhatak, Sunamganj. Lafarge Surma Cement Ltd produces approximately 10% of total clinker required
2011-12 504 for Bangladesh. At present, several local cement manufacturers procured clinker from Lafarge while most
of the manufacturers import clinker from China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
2010-11 446
Philippines, Singapore, Thailand and Vietnam. Major cost component of producing cement is incurred from
2009-10 333
raw material portion where clinker contributed around 65% to 70% of total cost of goods sold. As per data
stored in Bangladesh Bank, Bangladesh imported clinker valued USD 12 million in FY 1994-95 which stood
Source: IDLC Research Report 2013 at USD 619 million in FY 2013-14. Some manufacturers also use local limestone collected from Sylhet.
Majority portion of imported fly ash is sourced from India; slag is imported from China, India, Japan and
Singapore while Gypsum is sourced from China, India, Indonesia and Japan. Most portions of imported
raw materials from India is imported through Mongla port and several land ports while materials imported
from other countries mainly comes through Chittagong port. Following the high contribution of raw
materials in the cost structure, any movement in the price of clinker and other raw materials will eventually
affect the profitability and performance of the cement manufacturer. One month stock of raw material in
hand is literally ideal for smooth production. In most of the factories, clinker is stored under shed while
the other materials are stored in open place. Utility expenses account for second highest cost of cement
production. Though a large portion of the power requirement is met through national grid, increasingly
large companies are attempting to use captive power plants to reduce costs and to have continuous power
supply to ensure uninterrupted production.
Proportioning of the raw materials for producing cement is based on a series of simultaneous calculations
that take into consideration the chemical composition of the raw materials and the type of cement to be
produced. American Society for Testing and Materials (ASTM) provides specification C150 for eight types
of Portland cement: Types I, IA, II, IIA, III, IIIA, IV, and V, where the “A” denotes air-entraining cement. These
cements are designed to meet the varying needs of the construction industry. Manufacturers need to take
BDS EN 197-1:2003 certification from BSTI for marketing cement in Bangladesh.
Process of production
The natural raw materials (i.e. limestone, chalk, clay, shale, mill scale and bauxite) are crushed to a very fine
The quality of powder and then blended in the correct proportions for getting the desired variation. This blended raw
clinker needs to be material is called as ‘raw feed’ or ‘kiln feed’ and is processed in a rotary kiln, where the materials are heated
good to get better in high temperatures and quickly cooled down. Such movement of temperature begins a series of chemical
reaction forming new compounds- silicates, aluminates and ferrites of calcium in the kiln and finally a product
quality cement.
named ‘clinker’ is found; the process could be dry, wet, semi-dry or semi-wet according to the state of the raw
Then the clinker material. The quality of clinker needs to be good to get better quality cement. Then the clinker is processed in
is processed in grinding mill where it is grinded to a fine and homogenous powder, named cement. At the time of grinding
grinding mill Gypsum (calcium sulphates- it controls the setting properties of the cement when water is added) and
where it is grinded possibly additional cementitious (such as blast furnace slag, coal fly ash, natural pozzolanas, etc.) or inert
to a fine and materials (limestone) are added to the clinker. In addition to compound composition, the fineness of cement
also affects its reactivity with water. Limits on fineness of cement are set at the time of grinding and heat
homogenous
evolved on hydration. The blend found after mixing is named as Cement and from the grinding mills the final
powder, named product is directly conveyed to the silos (silos are the large storage tanks of cement). From the silos, cement is
cement. sent to the packaging section where it is packed in small bags (20-50 Kg/bag) or shipped in bulk quantities by
6
FACTORY suitable transports. Manufacturer employs their best efforts to ensure product quality at desired level in every
stage of production (from the quarry to delivery) with the help of modern technology.
CONCENTRATION
2% Quality Control
8%
Based on raw material quality, production process, and effectiveness of quality control system, a cement
12% production unit incurs 3.0% to 5.0% process loss during grinding, on an average. Manufacturers continuously
executes different types of tests to ensure proper mixture, fineness, setting time, comprehensive strength,
moisture, residue, packing durability, etc. The quality tests are done in every stage of production on a
16% regular basis to ensure desired output quality. In this regard, manufacturers adopt quality control measures
62%
through setting up well equipped laboratory, trained personnel and monitoring system.
Pricing
Dhaka Mongla
Chittagong Sylhet
Rajshahi The pricing of cement of various producers in the industry are very close to one another due to the
Source: IDLC Research Report 2013
homogenous nature of products. Although, bargaining power of the cement manufacturing companies
as a whole is comparatively low for over capacity; economies of scales, long relationship with suppliers,
location advantage with own transport facility, availability of sufficient captive power supply and brand
image give competitive advantage to few big companies to limitedly achieve bargaining power for setting
credit terms and price. Location of a cement plant and the cost to transport the raw materials to the plant
and the cement to distribution terminals, determines the plant’s competitive position and price in most
cases. In Bangladesh, cement prices have been on an upward trend since 2007 which is parallel to the steady
increase of clinker costs and fuel price; though the large capacity expansions were expected to weigh down
on price realizations by the cement companies due to increasing availability of product. Seasonal factors
have high influence on fluctuation in retail price and following the freight cost, cement price are not same
throughout the country at a single point of time though the price of cement produced by different players
in the industry are very close to one another. Currently, the standard price of one bag (50 kg) cement
produced by the multinational & local companies ranges within BDT 420 to BDT 470 per bag. Following
import dependency on raw materials, profitability of the sector largely depends on uninterrupted import
facility and favorable foreign exchange condition. Gloomy condition in the real estate sector for last couple
of years may linger further in response to the current political turmoil, stressing the possibility of significant
increase in demand to absorb additional supply. However, implementation of mega projects like Padma
Bridge and Government’s initiatives to use RCC pavements in highways may boost the demand up to reach
economies scale of production.
Distribution dilemma
Intense competition in crowded markets such as Bangladesh keeps pressure on cement manufacturers
to find effective ways to lower costs. In this industry, logistics is a key cost differentiator and the producer
that can master the distribution channel will be the clear winner in the marketplace. Approximately 10 –
15% of the cost of cement can be attributed to the cost of distribution, begins counting from the gates of
the cement facility. The key for effective cement distribution lies in the use of modern technology, which
can result to achieve better margins while squeezing costs. It is obvious that the movement of cement in
bulk is less expensive than movement in small and jumbo bags, since the cost of bagging and debagging
is eliminated. However, it is not always possible to move in bulk due to a variety of factors, ranging from
location to inadequate or nonexistence of bulk storage and receipt facilities. As an optimum solution,
manufacturers use a combination of distribution methods, which includes bulk and bags via road, rail,
and inland waterways and also by sea; where the logistics managers have to integrate IT solutions with
actual demand and supply and, most importantly, include all options of cement movement and storage
into the management cycle. The most inexpensive method of moving cement is in bulk by water; though
in Bangladesh, around 85% of cement is transported by road and the remainder by barge. Other factors
influencing cement distribution includes market demand, seasonal surges, government policies, political
lobbies, connectivity, infrastructure and technology used.
7
TURNING UP THE HEAT
Alternative sources such as
Cement is used in everything from fly ash from coal plants could
payments to skyscrapers- and is eliminate the need for any extra
a major source of carbon emissions. heating and use less energy.
Sand Clay
Limestone
1 Limestone is crushed... 2 ...mixed with clay...
Most of the carbon emissions

come from fuel burned to heat
the kiln and from CO2 baked
from the limestone.
Clinker cooler
Kiln
4 ... to produce grey nodules of clinker. 3 ... and roasted at 1,500 C in a kiln...
Cement storage
Gypsum
Grinding mill
5 The clinker is mixed with gypsum

and ground to a fine powder.
6 The powder is ready to be mixed with water, along with sand,
gravel or stone, and used at a construction site.
Source: Global Cement Magazine

In conversation with
The cement market is really concentrated as
Ms. Zebun Nahar only 10 players has 85 percent market share.
Sector Specialist - Cement Industry
(Worked at IDLC Investment Ltd as an Assistant Manager for more than 4 years in
the Research wing and also worked at Holcim Bangladesh as Head of Planning &
Development for 2 years)
Current capacity, capacity utilization and demand scenario own transportation vehicle, so the supply chain is faster
- The production of cement depends directly on demand. than others. Most cement manufacturers have to rent
The demand of the year 2012 was really good. After that, the trucks for delivery.
the downtrend in the cement industry started; the year
2014 was the worst. Most of the local companies survived Import dependent industry (uncontrollable macro variables)
but, the multinational companies suffered a lot. Suppose,
- The main raw material for cement is clinkers and it is 100%
the demand was 70% in 2012, it came down to 50% or less,
imported. The cement industry is totally Import dependent.
in 2014. In 2012, most of the companies went for capacity
Most companies import clinkers by renting a mother
expansion as there was huge demand for cement, but,
vessel which imports for all and that’s how the companies
after increasing the capacity, the demand got very low.
get their own share of clinkers. The only problem faced is
The hidden capacity is there but it’s not actually hidden as
during appreciation of dollar price.
there are around 12% wastage. We call it waste because of
production error.
Environmental hazards
- Cement manufacturers can harm the environment at the
Local producers Vs MNCs
time of packaging. The production phase does not have any
- Among the multinational companies and local companies, hazard but at the time of packaging lots of dust is created so
locals are leading. The market is really concentrated as only you need an Environment Clearance Certificate (ECC). There
10 players has 85 percent market share. Shah, Meghna, is a specific parameter. At the time of factory inspection, if
Heidelberg, Lafarge, Seven Rings and Holcim are the key the authority see you’re creating too much dust they will
market players. charge the companies for compensation.
Future demand trend (per capita cement consumption is rising) Cost of fund (high lending rate)
- The future demand of cement market currently depends on - The cement companies takes short term working capital
the government infrastructures as the main profit comes loans so the interest rate is high. Suppose, the dealer buys
from those infrastructures. The other thing about cement in credit and will pay after 15 days so at that time we need
industry is that it depends on the plant location. You can only working capital loans.
supply cement in the area close to the plant because of high
transportation cost. For example, Lafarge leads the Sylhet
Seasonal and regional impact
market as they have a plant there.
- The seasonal impact is quite high, at the time of rainy season
the demand is really low as there is no construction works
Increased use by government (mega projects, use of RCC in going on. After this season the demand start getting pace.
highways) Vs poor growth in private construction (real estate) Usually, peak season starts from September to February.
- The government infrastructures mainly impact the big Dhaka has the highest demand and South Bengal has very
players. For example, Hatirjheel project’s exclusive supplier low demand for cement.
for foundation was done by Holcim. After the foundation
the rest was done by local companies like Shah, Premier Limited post production storage life and Possibility of government
cement etc. intensive to patronize deemed export
- Cement can be stored for 7 days as it turns into stone
Shortage of required power (cost of power is also in a rising trend) after that time. If it gets contact with water or moisture
- The cement manufactures who have their own captive it will also turn into stone. You only need a dry place to
power plant like Shah cement, get extra competitive store it. You can store it up to 15 days if the packaging
advantage in production. However, now that the is really good. Cement is also exported from Bangladesh
industry is flat the advantage is of less beneficial. and the Government also provides subsidy to promote
Another thing is the supply of cements. Shah has their cement exporting.
9
PERCENTAGE Success Factors

Business success of a cement manufacturing organization depends on the following issues-
DEMAND
The cement industry poses high barriers to entry following very high initial investment, shortage of
adequate power supply and regulatory requirement.
Competitive advantage of a cement manufacturer could be derived from location of the factory
(having access to rivers and national highways), own transport pool (ocean going vessel, inland
35%
40% vessel, truck) to carry raw materials and finished goods, economies scale of production, receivables
collection and inventory management efficiency, strong distribution network (dealers and retailers)
and effective as well as efficient marketing communication system.
In Bangladesh, business operation of the most of the cement manufacturers is geographically
25% concentrated. To gain optimum control in specific vicinity, cement manufacturers establish production
facility there. Such initiatives are not only driven by the intention of reducing high transportation cost
Individual Home Makers but also required by the product nature itself as quality of cement starts to diminish after production.
Real Estate Developers A cement manufacturer needs to have strong distribution network in its operating areas to distribute
Government Organization
the final product within shortest possible time after bagging.
Source: IDLC Research Report 2013 To preserve the post production quality at desired level packaging is the key and following the
importance of quality packaging manufacturers often tries to establish own packaging plant.
It is not a major concern for Bangladeshi manufacturers regarding import dependency of raw materials
as almost all the cement manufacturing companies in the country entirely depends on imported raw
materials. Rather, manufacturers need to be cautious regarding product risk arising from market
competition. To flank future market competition, manufacturers need to continuously search new use
and new market like exporting cement to neighboring countries.
To gain extra market share, pricing is a key in the crowded market with excess capacity. Several
national level producers practices fluctuating pricing policy between regions to achieve competitive
benefits.
Continuous supply of electricity is crucial for uninterrupted production of a cement factory. So
sourcing of adequate power at minimum cost is a great challenge for a cement manufacturer.
Manufacturer needs to practice a 360 degree marketing effort. To grasp the increasing market
demand and ensure sustained growth of sales, several manufacturers has customer care centre with
adequate marketing personnel to work in the field level to observe, collect and report daily feedback
to top management regarding the overall market demand and status (by maintaining relationship
with contractor, household owner, and mason by using the different dealers point as office in different
places). Manufacturers also need to maintain relationship with PWD, RHD, CMMU, City Corporation,
Engineering Office, and Corporate Clients (Retailer, Construction Company) to sell own brands for the
large projects. Effective market feedback helps to reduce access production while perfectly fulfills the
market demand.
To increase the profitability level a manufacturer has to have the capability to face challenges in
respect to making room for increased capacity, retaining the cost even after more spending on market
and keeping an above average price of its product.
Manufacturers have to focus on the product quality in terms of strength and durability. Though,
strength is the main focus of quality related issues of cement in the country so far, but manufacturers
also need to focus the durability issues in order to ensure overall sustainability.
Manufacturer needs to have the ability to brace the seasonal slump of monsoon and to sustain in dull
season through effective promotional and market communication activity to revamp the sales.
Interest rates of financial sectors are of paramount importance as a driver of construction activity,
which has positive correlation with the growth of cement industry.
Environmental Impact and mitigation strategies
Cement manufacturing causes environmental impacts at all stages of production, use and demolition;
starting from emissions of airborne pollution in the form of dust, gases and noise during blasting in quarries
to the time of mixing, using and demolition of the concrete when its strength become fragile. Limestone
is collected from quarries through blasting results gas, dust and noise; the damage done in countryside
10
from quarrying is irrecoverable. At the time of producing clinker, the primary component of cement, emits
carbon dioxide through the calcinations of limestone, accounts for about half the emissions attributable to
cement production. The bulk of the other half comes from the energy-intensive process of grinding the raw
materials and processing them into cement. Production of required electricity, transportation of materials
and operation of machinery also contributed in the industry’s emissions.
As people are becoming more environment conscious; and research into sustainable practices and
renewable energy proceeds, there is great potential for continued and more substantial mitigation
efforts from the cement sector. Carbon dioxide reduction strategies by the cement industry mainly aim
at reducing emissions per ton of cement produced rather than by a plant overall. One area of opportunity
is replacing clinker with other mineral components. Research continues toward developing cements that
require less energy to manufacture compared to producing Portland cement and that uses more benign
raw materials. Approaches include installation of more fuel-efficient kilns, partial substitution of non-
carbonate sources of calcium oxide in the kiln raw materials, and partial substitution of supplementary
cementitious materials (SCM) for producing Green cement, such as pozzolans. Equipment to reduce
dust emissions during quarrying and manufacture of cement is widely used, and equipment to trap and
separate exhaust gases are coming into increased use. Environmental protection also includes the re-
integration of quarries into the countryside after they have been closed down by returning them to nature
or re-cultivating them. To reduce the transport of heavier raw materials and to minimize the associated
costs, it is more economical for cement plants to be closer to the limestone quarries rather than to the
consumer centers. Although individual plant reserves are subject to exhaustion, cement raw materials,
especially limestone, are geologically widespread and abundant, and overall shortages are unlikely in
the future. However, growing environmental concerns and increasing cost of fuels of fossil origin have
resulted in many countries in sharp reduction of the resources needed to produce cement and effluents
(dust and exhaust gases). In manufacturer level, most of the world leading cement manufacturers has
taken some steps to reduce CO2 emission. Like, Holcim has been working to incorporate fly ash, a
waste material from coal-fired power plants, and slag, a waste by-product of steel manufacturing, into
its product portfolio as composite cements. Lafarge is also making efforts to improve efficiency across
production, replace dirty fossil fuels with more sustainable energy forms such as biomass, and promote
sustainable construction initiatives.
In last couple of decades most cities of the world are expanding vertically rather than horizontally to
achieve maximum utilization of available space and to ensure future food security by not urbanizing
fertile land. In Bangladesh, where population density is high in cities, unplanned urbanization and
rapid economic development have fueled the process of urbanization, where cement plays a non-
substitute role. Future of Bangladesh lies on vertical expansion of city and transportation infrastructure
like developed countries. Aggregate cement production capacity of Bangladesh is almost double of
the demand which remains very limited space for further capacity expansion for the next couple of
years. However, consumption of cement has steadily been rising over the last two decades.
In 2010, the International Monetary Fund (IMF) indicated that Bangladesh’s economy had become
the 48th largest in the world. United Nations has estimated that the Bangladesh needs at least
USD 5 billion per annum for the next 10 to 15 years to build the necessary infrastructure, such as
new power stations, roads and bridges, before reaching middle-income status. In line with this
strategic vision, the government has undertaken massive programs for infrastructure development
in partnership with the private sector. To support the vertical urbanization, roads and highways also
needs to be vertical like inclusion of underground tunnel and flyover with existing transportation
infrastructure. Furthermore, if the construction works of Padma Bridge continues with current pace
according to the latest declaration made by the Government then the total cement industry will
achieve a momentum. So, it is obvious that the demand of cement in Bangladesh will increase day
by day, until the invention of a better substitute of cement
(Md. Yasin Hossain is an Senior Executive Officer of Credit Risk Management at IDLC Finance Limited and currently
works at IDLC’s Comilla Branch)
11
Research in Focus
Top 10 Emerging Technology of 2015
T
echnology is perhaps the greatest agent of change in the modern world. While never without risk,
technological breakthroughs promise innovative solutions to the most pressing global challenges
of our time. From zero-emission cars fuelled by hydrogen to computer chips modeled on the
human brain, this year’s 10 emerging technologies offer a vivid glimpse of the power of innovation
to improve lives, transform industries and safeguard our planet. To compile this list, the World Economic
Forum’s Meta-Council on Emerging Technologies, a panel of 18 experts, draws on the collective expertise
of the Forum’s communities to identify the most important recent technological trends.
Fuel cell vehicles

From zero-
emission cars “Fuel cell” vehicles have been long promised, as they potentially offer several major advantages over
fuelled by electric and hydrocarbon-powered vehicles. The technology has only now begun to reach the stage where
automotive companies are planning to launch them for consumers. Initial prices are likely to be in the range
hydrogen to of USD 70,000, but should come down significantly as volumes increase within the next couple of years.
computer chips Unlike batteries, which must be charged from an external source, fuel cells generate electricity directly,
modeled on using fuels such as hydrogen or natural gas. Mass-market fuel cell vehicles are an attractive prospect,
the human because they will offer the range and fuelling convenience of today’s diesel and petrol-powered vehicles
while providing the benefits of sustainability in personal transportation. Achieving these benefits will
brain, this year’s require the reliable and economical production of hydrogen from entirely low-carbon sources, and its
10 emerging distribution to a growing fleet of vehicles.
technologies offer
a vivid glimpse Next-generation robotics
of the power Although heavily used, these robots are large and dangerous to human co-workers; they have to be
of innovation separated by safety cages. Robot bodies are becoming more adaptive and flexible, with designers taking
to improve inspiration from the extraordinary flexibility and dexterity of complex biological structures, such as the
lives, transform human hand. Robots are becoming more connected, benefiting from the cloud-computing revolution by
being able to access instructions and information remotely, rather than having to be programmed as a fully
industries and autonomous unit. Robots are ideal for tasks that are too repetitive or dangerous for humans to undertake,
safeguard our and can work 24 hours a day at a lower cost than human workers. There remains the risk that robots may
planet. displace human workers from jobs, although previous generations of automation have tended to lead to
higher productivity and growth with benefits throughout the economy.
12
>
Recyclable thermoset plastics
Plastics are divided into thermoplastics and thermoset plastics. The former can be heated and shaped many
times, and are ubiquitous in the modern world, comprising everything from children’s toys to lavatory
seats. Thermoset plastics however can only be heated and shaped once, after which molecular changes
mean that they are “Cured”, retaining their shape and strength even when subject to intense heat and
pressure. Due to this durability, thermoset plastics are a vital part of our modern world, and are used in
everything from mobile phones and circuit boards to the aerospace industry. As a result, most thermoset
polymers end up as landfill. Given the ultimate objective of sustainability, there has long been a pressing
need for recyclability in thermoset plastics.
Precise genetic-engineering techniques
The technique is proven and reliable, and despite widespread public fears, there is a consensus in the
scientific community that genetically modifying organisms using this technique is no more risky than
modifying them using conventional breeding. These include ZFNs, TALENS and, more recently, the CRISPR-
Cas9 system, which evolved in bacteria as a defense mechanism against viruses. More precise genome
editing may allay public fears, especially if the resulting plant or animal is not considered transgenic
because no foreign genetic material is introduced. Taken together, these techniques promise to advance
agricultural sustainability by reducing input use in multiple areas, from water and land to fertilizer, while
also helping crops to adapt to climate change.
Additive manufacturing
As the name suggests, additive manufacturing is the opposite of subtractive manufacturing. The
latter is how manufacturing has traditionally been done: starting with a larger piece of material,
layers are removed, or subtracted, to leave the desired shape. Additive manufacturing instead starts
with loose material, either liquid or powder, and then builds it into a three-dimensional shape using
a digital template. 3D products can be highly customized to the end user, unlike mass-produced
manufactured goods.
Other medical applications are taking 3D printing in a more biological direction: by directly printing
human cells, it is now possible to create living tissues that may find potential application in drug
safety screening and, ultimately, tissue repair and regeneration. Bioprinting has already been used
to generate skin and bone, as well as heart and vascular tissue, which offer huge potential in future
personalized medicine.
Emergent artificial intelligence
In recent years, AI has advanced significantly: most of us now use smartphones that can recognize human
speech, or have travelled through an airport immigration queue using image-recognition technology. Self-
driving cars and automated flying drones are now in the testing stage before anticipated widespread use,
while for certain learning and memory tasks, machines now outperform humans.
Intelligent machines, having faster access to a much larger store of information, and able to respond
without human emotional biases, might also perform better than medical professionals in diagnosing
diseases. Long the stuff of dystopian sci-fi nightmares, AI clearly comes with risks - the most obvious being
that super-intelligent machines might one day overcome and enslave humans.
Distributed manufacturing
Distributed manufacturing turns on its head the way we make and distribute products. In traditional
manufacturing, raw materials are brought together, assembled and fabricated in large centralized factories
into identical finished products that are then distributed to the customer. In distributed manufacturing,
the raw materials and methods of fabrication are decentralized, and the final product is manufactured very
close to the final customer. In essence, the idea of distributed manufacturing is to replace as much of the
material supply chain as possible with digital information.
13
Distributed manufacturing may encourage broader diversity in objects that are today standardized, such
as smartphones and automobiles. Product features will evolve to serve different markets and geographies,
and there will be a rapid proliferation of goods and services to regions of the world not currently well
served by traditional manufacturing.
‘Sense and avoid’ drones
Unmanned aerial vehicles, or drones, have become an important and controversial part of military capacity
in recent years. So far all these drones have had human pilots; the difference is that their pilots are on the
ground and fly the aircraft remotely. The next step with drone technology is to develop machines that fly
themselves, opening them up to a wider range of applications. For this to happen, drones must be able to
sense and respond to their local environment, altering their height and flying trajectory in order to avoid
colliding with other objects in their path.
In nature, birds, fish and insects can all congregate in swarms, each animal responding to its neighbor
almost instantaneously to allow the swarm to fly or swim as a single unit. With reliable autonomy and
collision avoidance, drones can begin to take on tasks too dangerous or remote for humans to carry out:
checking electric power lines, for example, or delivering medical supplies in an emergency.
Drones are essentially robots operating in three, rather than two, dimensions; advances in next-generation
robotics technology will accelerate this trend. Flying vehicles will never be risk-free, whether operated by
humans or as intelligent machines. For widespread adoption, sense and avoid drones must be able to
operate reliably in the most difficult conditions: at night, in blizzards or dust storms. Unlike our current
digital mobile devices, drones will be transformational as they are self-mobile and have the capacity of
flying in the three-dimensional world that is beyond our direct human reach. Once ubiquitous, they will
vastly expand our presence, productivity and human experience.
Neuromorphic technology
Computers move data back and forth between memory chips and a central processor over a high-speed
backbone. The brain, on the other hand, is fully interconnected, with logic and memory intimately cross-
linked at billions of times the density and diversity of that found in a modern computer.
With vastly more compute power available for far less energy and volume, neuromorphic chips should
allow more intelligent small-scale machines to drive the next stage in miniaturization and artificial
intelligence. Potential applications include: drones better able to process and respond to visual cues, much
more powerful and intelligent cameras and smartphones, and data-crunching on a scale that may help
unlock the secrets of financial markets or climate forecasting. Computers will be able to anticipate and
learn, rather than merely respond in pre-programmed ways.
Digital genome
While the first sequencing of the 3.2 billion base pairs of DNA that make up the human genome took many
years and cost tens of millions of dollars, today your genome can be sequenced and digitized in minutes
and at the cost of only a few hundred dollars.
Many of our most intractable health challenges, from heart disease to cancer, have a genetic component.
Cancer is best described as a disease of the genome. With digitization, doctors will be able to make decisions
about a patient’s cancer treatment informed by a tumor’s genetic make-up.
14
Career Advice
Exclusive interview with But never misunderstand the fact that CGPA
Ms Bilquis Jahan alone cannot be the only parameter to select the
Head of Human Resources, IDLC Finance Limited potential candidates.
What are the key qualities a fresh graduate need to cultivate the belief, ethics or does not fit the culture of the company,
before approaching an interview? because they always have a hard time to cope and perform.
- We never have sky high expectations from a fresh graduate as How important is CGPA or grade to secure a good job?
they are inexperienced and most likely to be recruited in entry - CGPA is important as your grade tells a lot about you. This is
level position. However, to me few things are more important your evaluation of your academic career in different age and
for fresh grads to attract prospective employers- phases over the years. We value CGPA a great deal because
Attitude is very important for any candidates we believe it represents your capacity and how dedicated you
Physical posture and gestures should emanate confidence were to manage your responsibility.
but not over-confidence What is the acceptable CGPA to you?
Seriousness in the candidates
Careful consideration in dress-up for the interview - Average CGPA of a particular batch usually lifts the standard
Presence of mind regarding the surroundings automatically. All graduates should remember that, it is a
competition within your friends as well! So if your CGPA is poorer
What do you look in potential candidate? Overall present-ability than most of your friends, you may find yourself in disadvantageous
or sheer talent? position. But never misunderstand the fact that CGPA alone cannot
- If talent means written exam result only, then perhaps no. be the only parameter to select the potential candidates.
The candidate has to do well in other aspects like interview, How the recruitment process has changed from past in recent
overall communication skill, presentation skill, positive times.
attitude, etc. But for the lateral entry (which means experience
employees from other organization) certain skillets are prime - Not much! Of course, multinational houses adds few additional
parameter for the selection whereas for fresh graduates, tests like psychometric test, presentation skill; problem solving
overall presentability will be the key. But over-confidence can capacity working within a group, team work etc but the
be dangerous as this can give wrong signals to the employer. overall selection process is still the same. To be more precise
Because often what happens that contestant might think of these tools are means of shortlisting the candidates for final
very high of himself, ended up in frustration as the people who selection. It also ensures transparency in the selection process.
she or he will be working might be much smarter. It’s a war and all have to fight to prove worthy.
What are things that need to be addressed in a CV? How important What have your hiring strategies been? How do you find talented
is a CV? people for the company?
- Always keep in mind that employer employs some judgment - For fresh position we hire fresh graduates but for senior positions
looking at the CV. So, it is very important for fresh graduates as we prefer lateral entry. We usually prefer online job sites to
CV is the first communication with the employer and we all know advertise and also replacement departments of the Universities,
that first impression is very important. A standard CV should have: send their deserving candidates time to time. We usually don’t do
advertisement in the newspaper. Internal reference also does help.
Adequate Information
How important are extracurricular activities for an aspiring new
Tailored to the need of the particular job recruit? What are the key differences between one who has lots
Fresh graduate should mark educational qualification first and one who has none?
and experience people should focus more on experience. - Extracurricular activities are always considered plus points, as it
Well organized means he or she can multitask. But this is not a decisive factor.
Practical Career Objective Once onboard, what are the expectations from an employee? What
Easy to find information/ Understandability. is the key to success?
No Spelling mistakes - Employees are expected to do the tasks assigned to him

or her but few things are important to practice to be apart.
Does family background of the candidate, gives any upper hand in Level of dedication, being proactive and, not to be late or ask
selection process? for unnecessary leaves, showing interest in taking additional
- We, in IDLC, believe in equal opportunity so particular family responsibilities and work as a team member apart from the
background or class does not get any privilege. However, regular job description needs to be cultivated. Creating a
whatever family, class you belong, it’s your behavior, attitude good impression not only within the department but other
that sets you apart. It is the personal quality that ensures departments as well. Creating a good impression about the
whether you are fit for the job. It’s very important to nurture person is very important. Bad impression is very hard to erase
progressive mentality in the family which matters the most. rather fresh incumbent need to try to create a good impression
Nobody wants to recruit someone who is not in line with which will help the person for the rest of the person.
15
Analysis Monitor
MasterCard Index of Women’s Advancement 2015:

Bangladesh a shining example of women employment
In celebration of International Women’s Day,
Women in Asia Pacific MasterCard is releasing a special edition of research
focusing on women’s well-being across Asis Pacific.
A Snapshot of Work, Life and Equality in 2014 In addition, MasterCard also announced the results
of its annual Index of Women’s Advancement.
Entering the Workforce Balanging Work and Life
Getting an Education Becoming Leaders
B
angladesh has made significant progress in women’s employment thanks to better education
and wider opportunities. The 2015 Index of Women’s Advancement marks the MasterCard’s
effort in tracking the progress of women towards gender parity based three main indicators
that were derived from additional sub-indicators: employment (workforce participation, regular
employment), capability (secondary education, tertiary education) and leadership (business owners,
business leaders, political leaders). The results reveals that the progress made by women towards gender
parity in the majority of the 16 markets in Asia Pacific is sluggish with the large gaps in Leadership and to a
lesser extent. Employment, remaining prevalent and an ongoing area of concern. Although opportunities
exist for women to pursue higher levels of education (reflected through the high scores for Capability),
labor market conditions are not always conducive for them in seeking employment. Drawing on the
results of MasterCard’s latest Women’s Well Being Index Survey for 2014, it is noted that despite the slow
progress made by women, the perception of their overall wellbeing in life remains optimistic. This could be
attributed to their particularly high resilience in life from threats such as violent and financial crime, natural
disasters and pollution, as well as their ability to cope with stress both at home and at the workplace.
Capability
As an indicator of Female to Male Secondary and Tertiary School Gross Enrolment Rate (GER) ratio, the
Capability sub-index reflects the degree of women’s access to education and acquisition of knowledge
assets as compared to their male counterparts. Of the three sub-indexes, Capability remains the strongest
indicator of Asia Pacific women’s advancement towards gender parity for the 9th consecutive year. With
the exception of Korea (85.9 points), the Capability index scores for all Asia Pacific countries are above 90.0.
Employment
As an indicator of Workforce Participation and Regular Employment, the Employment sub-index measures the female
to male ratio of participation in economic activity and access to regular employment. The results show Employment
remaining as the second strongest sub-index over the 9-year period from 2007 to 2015 with 4 markets scoring higher
than 90.0 points: New Zealand (91.3), China (91.2), Australia (90.8) and Taiwan (90.2). With the exception of Indonesia
(78.4), the Philippines (76.5) and Malaysia (75.9), women across most of Asia Pacific are making some progress towards
being as economically active as their male counterparts, scoring above the 80-point mark.
16
Leadership
As a measurement of the female-to-male ratio in business ownership, business leadership and political
participation, the Leadership sub-index reflects women’s progress in the business, economic and political
sectors as compared to their male counterparts. Of the 3 main sub-indexes, Leadership remained the weakest
from the previous year (and also over the 9-year period) with New Zealand (50.6) and the Philippines (50.1) being
the only two countries having more than 50 women business/government leaders for every 100 male business/
government leaders. The latest results also indicate that the ratio of female-to-male Thai business/government
leaders has declined markedly from 33.5 to 23.7, while that in Singapore picked up slightly from 40.9 to 41.5.
SOUTH ASIA
Women in all 5 South Asian markets continue to advance, with the overall index scores improving from 2013.
The largest increase in advancement score is observed in Nepal (up 35.7 points to 71.8) due to the representation
of women in politics. In fact, of the 5 markets in South Asia, Nepalese women made the most progress towards
gender parity in terms of political participation. In contrast, women in Pakistan advanced the least in business
and politics (Leadership score of only 3.5) and in labor force participation, placing them in the lowest rank in
South Asia.
Employment
South Asian women’s progress towards gender parity in terms of labor force participation and regular
employment remains sluggish. With a score of 96.0 (unchanged from the previous year), Nepal has the highest
Employment score in the region, followed by Bangladesh (83.3, up 0.3 points), India (59.8, unchanged), Sri Lanka
(46.2, up 0.1 points) and Pakistan (41.4, up 0.4 points and lowest in South Asia).
Capability
Within South Asia, the sub-index of Capability continues to be the strongest among the 3 components measured.
Specifically, women in Sri Lanka outshine their regional peers in terms of gender parity towards the acquisition
of basic and advanced knowledge assets relative to men – this is reflected through the score of 100.0 for the 7th
consecutive year. Similarly, Nepalese women show impressive strides in enrolment for secondary and tertiary
education with the Capability score rising from 90.0 the previous year to 93.5 (up 47% since 2007).
Leadership
The latest women’s advancement index for Leadership shows that with the exception of Nepal, most of the
women in South Asia are making slow progress in business and political representation. In terms of business
ownership, Nepalese women have the highest representation in the region (72.4 women out of every 100 men)
compared to their regional peers (Sri Lanka at 13.4, India at 13.2, Bangladesh at 11.7 and Pakistan at 0.5).
The results of
MasterCard’s Summarizing South Asia
latest Women’s In general, we observe progress towards gender parity among South Asian women to be largely sluggish.
Well Being Index With the exception of Nepal, women are mostly economically inactive and lack political empowerment. This is
Survey for 2014, reflected in the low ‘Employment’ scores in India (59.8), Sri Lanka (46.2) and Pakistan (41.4) and extremely low
we note that ‘Leadership’ scores of 3.5 in Pakistan, 12.1 in Bangladesh, 16.8 in India and 14.5 in Sri Lanka. Within the region,
Nepal remains the strongest market with an overall index score of 71.8, an achievement that is mostly attributed
despite the slow to their much stronger leadership participation score of 41.2 as compared to their South Asian peers.
progress made
by women, the The results from the 2015 MasterCard Index of Women’s Advancement (MIWA) underscore the
perception of incremental steps made by women towards gender parity in Capability (knowledge assets). Efforts made
their overall by women in South Asia are especially commendable, as is reflected in the increase in Capability scores
wellbeing in in Bangladesh (up 1.1 point to 87.6), Nepal (up 3.5 points to 93.5) and Pakistan (up 1.2 points to 89.2). In
Asia Pacific, women’s solid traction towards gender parity in basic and advanced knowledge is promising
life remains in the markets of Philippines, Thailand, New Zealand and Vietnam where Capability scores of 100 have
optimistic. been achieved consecutively since 2007 (2009 for Vietnam).
17
Entrepreneurs’ Corner IDLC MONTHLY BUSINESS REVIEW
Ligion Herbal Ltd.

Natural Superlative Quality
Ligion Herbal Ltd. started with a business philosophy centered upon
flexibility and the goal to meet complete customer satisfaction. It
was established in the year 1995. Ligion Herbal Ltd. is a well known
name in the herbal cosmetics marketing arena. For the last 20 years,
Ligion Herbal have been catering to the cosmetic needs of the
patrons through top quality herbal products and are determined to
continue the same unequaled performance in the future.
Owner : Ms. Tania Haque
Year of Establishment : 1995
Website : www.ligionherbalbd.com
Mehedi & various herbal
Main Product :
products etc.
Number of Factory : 2
Number of Employees : 500
MBR: Tell us something about the origin, growth and success of

‘Ligion Herbal’.
Ligion Herbal: Ligion Herbal started its journey back in 1995, when
we explored the fact that there was a lack of local herbal products
around the country. We ourselves did courses on herbal products
from India, and launched our first product Herbal Shampoo. Then,
after a few months we introduced Uptan. We faced a lot of problems
while introducing Uptan because most people at that time didn’t have
any idea what the product was. My husband and I took the challenge
positively and made it workout smoothly, that’s basically the story of
Ligion Herbal Ltd.
MBR: How much investment does an aspiring entrepreneur require
for starting herbal product’s business?
Ligion Herbal: A total investment of BDT 50 lac to one crore is
required to start herbal product’s business. The capital investment
is high because there are a lot of players in the market with similar
products. So, in order to sustain in the market in the long run starting
the business with that much capital is necessary.
MBR: What is the most challenging aspect of a herbal company?
Ligion Herbal: The challenging fact about herbal company back then
was that people wasn’t aware of the concept of herbal products. We
had to help them understand that herbal products are completely
safe with no side effects and also that there are no chemical involved.
However, nowadays people are more conscious about themselves
and their perception toward herbal products changed.
MBR: How do you manage to create value for the customers?
Ligion Herbal: For the last 20 years, we are trying to highlight the fact that
our products are 100% herbal. People can differentiate our products from
other products as Ligion Herbal provides the best quality in the market.
Ms. Tania Haque
Partner, Ligion Herbal Ltd.
18
MBR: Are people outside Dhaka using herbal products too? Which honesty and should maintain the quality of their products.
are the successful markets for Ligion Herbal?
MBR: According to you, how has Bangladeshi cosmetics market
Ligion Herbal: We are getting the same positive response from outside evolved over the time?
Dhaka too. The successful markets for Ligion Herbal are Chittagong,
Ligion Herbal: There is a positive change in the people of Bangladesh
Mymensingh, Tangail, Rajshahi, and of course our capital Dhaka.
for using local consumer products. It was only possible because of big
MBR: A number of appalling herbal products are being sold in the corporate companies who are working hard to make better products
market around the country. How has this impacted your business? for their country. The trend toward local products is shifting and in a
Ligion Herbal: A few years back, some substandard companies and few years people will depend less on imported products.
their flawed products slightly harmed the reputation of other high- MBR: How do you plan to shape coming years of Ligion Herbal?
quality local herbal products in the short run. However, eventually the
Ligion Herbal: We were only manufacturing a few products, however,
good companies retained there position in the market because they
didn’t compromise with their quality and overcame the situation. we are planning to diversify to more day to day based products that a
person needs from morning to night. Very soon we will be launching
MBR: In all of your work experience, which accomplishment are men shaving foam, after shave, etc. So, adding more products to the
you the most proud of and why? cart is our next bid move.
Ligion Herbal: The thing that I am most proud of is that I am a MBR: How are you planning to overcome the current political
woman entrepreneur. I can do a lot for other women. Most of the situation?
workers in my two factories are women. They are outstanding at
their work. Ligion Herbal: The current situation hasn’t been a problem for our
business as the product we make is not perishable and also our supply
MBR: Any advice for the young entrepreneurs.
chain hasn’t been disrupted. Our customers will get our products, the
Ligion Herbal: Any new entrepreneur must have a strong will power, same way they used to get it before.
19
New Initiatives IDLC MONTHLY BUSINESS REVIEW
in Market
F-Commerce
f-commerce
F
acebook commerce (F-commerce) refers to e-commerce that is facilitated by the Facebook social
media platform. Facebook is a major enterprise, with hundreds of millions of users and near-
constant media exposure. F-commerce seeks to use elements of Facebook to drive sales. Those
who analyze F-commerce often distinguish between transactions that take place on a Facebook
page and those that use Facebook Open Graph, a tool for fusing third-party websites with Facebook’s
site. Some companies set up dedicated Facebook stores to capture sales from Facebook users, while
others set up sophisticated promotional ads to direct Web users toward some other sales venue. The list of
companies pursuing F-commerce is extensive and most marketing experts agree that the volume of future
F-commerce will grow into many billions of dollars annually.
More than 30 million small businesses have pages on Facebook globally, and they are making money on the
site using tools from profiles. Commerce on Facebook benefits from a feeling of community, of interacting
with friends or people with shared interests on groups. Facebook has created some tools to help people
take advantage of the network. Facebook offers click to purchase with a buyer’s information stored and
ready to buy with a single click. The companies have seen significant business growth.
In the perspective of Bangladesh, f-commerce industry is nascent. It was analyzed that initially people
started f-commerce business as time pass but after a while most of the people got serious about this as it is
trendy and is growing. The f-commerce industry is still not properly structured however, if proper support,
training on customer service, customer query management, lead time, etc. is given, this industry can surely
boom in no time. Though, until now the industry is even smaller than any micro industry.
On February 7, 2015, a two day “National F-commerce Summit 2015” was organized at Dhaka by Geeky
Social Advantage. The objective of F-commerce Summit was to help F-commerce businesses to flourish
and translate their potential into reality. It was a national level summit where entrepreneurs, policymakers,
industry insiders, media, domain experts was brought under one roof to discuss and create a unified voice
for these businesses for the ultimate goal of economic prosperity of our beloved motherland Bangladesh.
The Summit mainly focused on popularizing the term F-commerce amongst the entrepreneurs of
Bangladesh who are conducting their business through social media, notably Facebook. The prime purpose
of the event was to recognize five successful F-commerce entrepreneurs in Bangladesh, to understand
the hurdles faced by F-commerce businesses in Bangladesh and ways to solve them and to enlighten the
audience about the major operational issues in F-commerce.
20
MBR: Please briefly say something about yourself and your career.
Md. Saimum Hossain: I completed my studies both bachelors and masters from University of Dhaka.
I started my career as an Investment Analyst in a global hedge fund firm which had some allocation in
Bangladesh. I worked there for 6 months. Then, I joined IDLC as a Management Trainee and worked there
for nine months, I was placed in IDLC Securities within the first four months of my rotation. I worked there in
a research team for five months. I left IDLC and joined University of Dhaka as a faculty and I am still working
there. Later, I again joined IDLC as a consultant in the same team. That’s all about my corporate career. I was
an entrepreneur even before I started my corporate career. I started Geeky at June 2013 to provide research
and planning support to emerging businesses. After sometime, we start Geeky Social from February 2014
and most of our clients belonged to f-commerce.
MBR: What prompt you to become an entrepreneur?

Md. Saimum Hossain Md. Saimum Hossain: We work in the same way an offline advertising agency works, the only difference
Head of Strategy is, our delivery channel is not offline (billboards, television commercials, etc) its online or social, i.e. we
Geeky Social Advantage
promote our activities using social networking sites like Facebook, Twitter, Linkedin, etc platform.
MBR: Please tell us something about your firm Geeky?

Md. Saimum Hossain: Even though, I am a finance graduate, I always had the passion for branding,
communication & marketing. Also, I had a zeal for technology too. Hence, mashing up these two factors
Digital Marketing became inevitable. At Geeky Social, we help brands especially smaller brands make better
marketing decision and promote those brands using social media. We have to come up with new products
to attract our customer with various packages.
MBR: Please comment on Geeky’s social advantage, organization’s activities?

Md. Saimum Hossain: The key activities of Geeky are social media campaign or strategic campaign, which has
high impact with low frequency, community management and social content development is also our specialty.
We additionally manage live events, for example, we covered the Digital World event. We took photos, recorded
quotes and updated the facebook page instantly during the event. We already covered 6 big events till now.
Geeky also works on data research and analytical report on f-commerce industry mapping.
MBR: What are the problems of f-commerce?

Md. Saimum Hossain: The pitfalls of f-commerce are customers’ credibility and the payment system; in
Bangladesh COD (cash on delivery) payment system is used whereas globally the payments are always
done in advance.
MBR: If you put the f-commerce industry in Porter’s five forces for analysis, what will be the outcome?
Md. Saimum Hossain: Threat of new entrant is very high as the capital requirement is very low; it’s as
simple as opening a facebook page, taking photos of your products, uploading photos, selling products
and delivering the product to the customer.
Bargaining power of supplier is quite high as most of the business doesn’t have their own production
facility so they usually purchase from a different source or imports the products from abroad. The supply
chain is fragmented.
Bargaining power of buyer is medium as some products sold online, don’t have very good quality. Also,
the customers have limited options so it was supposed to be low however, most products sold through
f-commerce are luxury items not necessity goods. So, the sale usually depends on the need of the customer.
Industry Rivalry among business is very less as the market is fragmented. It’s a complete blue ocean not a
red one.
Threat of substitute product or services is medium as the most closest is e-commerce. Our main focus is to
gradually shift from f-commerce to e-commerce.
21
Spotlight on IDLC MONTHLY BUSINESS REVIEW
Startup
SINGULARITY LIMITED
Mir Shahrukh Islam

Co-Founder & Managing Director, SINGULARITY LTD.
S
ingularity is not a contemporary or conventional startup which pitches ideas, raising valuation, takes
funding from investors, etc. Singularity started like a startup; however, without the investor’s part. Mir
Shahrukh Islam stated his venture with his own money, not his family’s funding or bank loan. He is an
undergraduate student, currently in his 4th year at Islamic University of Technology (IUT) studying Electrical
Engineering. He is expecting to be a graduate this September. He was involved in many extracurricular
activities from college life.
Shahrukh started his business when he was in college, that time he had no idea about where to go from
there, what to do, etc. He generally had no idea which company was better than others. He always had
the passion of doing something different. As a freelanced individual, he and his friend Zafir Sharifee (Co-
founder of Singularity), used to work in various online freelance projects. He worked for Spellbound,
AsiaTech, etc. Then, they thought they should start their own firm because the work they were doing,
nobody in the market was doing as freelancers. They understood the basic technology and could integrate
it with marketing tools. Thus, Singularity was born. So, at a certain point, when Shahrukh had the feeling of
developing his career, he already had a firm with stable cash flow.
22
When Shahrukh first went to open an account in the name of Singularity Limited, the account manager
“The space for started laughing at him as he was carrying a backpack and wearing t-shirt and jeans. At that time, he had no
innovation, doing idea about name clearance, RJSC registration, Trade License, etc. The account manager told him he needs
something great to show all the documents necessary for opening a private limited company’s account. Hence, it took him
for the humanity close to one and a half months to open a bank account. For him, the lack of information for running a going
while bringing a concern was the biggest challenge while starting his firm.
tangible change
in life cannot be Singularity started developing & selling creative kaos and technological animation things. However, the co-
achieved being a founders retained the earnings instead of spending it, and when their saving summed up to become a good
jobholder.” amount of investment; they rented a small office with some equipment and dropped off their portfolios
at big MNCs. The companies called up and gave them work and they in turn expanded their creative,
operation and finance team and developed a sustainable business model. They have four divisions’ studio &
motion graphics, software & mobile applications, website & online solutions, robotics & hardware solutions
and so on. Within six months they were serving more than 300 clients. The first time in Bangladesh, they
developed vehicle tracking system, and recently, they had an agreement with a telecom giant where that
telecom firm will sell the products in its name and Singularity will be its technology partner.
The future plans of Singularity include some applications as a tool for digital experience. They are planning
to bring a cloud application in the country. They want to investigate animation, so that it can create a
better experience for the people. Besides Singularity, Shahrukh is working on Bondstein, their hardware
manufacturing company, currently they are working on secured calling bells. They want to be the largest
Digital Marketing content provider in Bangladesh, while touching very digital citizen’s life.
Shahrukh’s family or friends never discouraged him on being an entrepreneur, one thing they wanted was
to be careful and handle the pain of being failure. He has the confidence in him that if he fails in something
he can rise back immediately. His family encourages him a lot because he manages two offices, goes home
to do his studies and assignments, go to university to attend classes and exams, etc. all by himself. The only
concern from his family is to have a healthy life and have contingency plans.
Shahrukh was a young achiever of the Daily Star’s “Digital on 24”. He is one of the founders of IM SME, they
received Bangladesh Brand Forum Communication Award, and then he was also one team member of the
winning team in IIT Mumbai International Robotics Championship.
23
Economy at
Import Monetary and credit Spread of lending
Others
Highest:
Industrial Raw
Materials, 38% developments & deposit rate
Consumer goods
12% Net Foreign
23% Assets of
banking system
1673
Net Domestic
Assets of 5739
banking system
5.31
9% 38% Industrial
5.22
5.21
raw materials Currency 820 5.15 5.13 5.12
outside banks 5.17
9% 5.14
5.1 5.09 5.06
9% 5.06
Deposits 6593
Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15
Capital machinery
Machinery for misc. inds. 0 1000 2000 3000 4000 5000 6000 7000
Petroleum & petro.prodts.
Monetary and credit developments as of December 2014
Sector-wise import as of July - Jan 2015(%) (in Billions of BDT)
remittance export Highest:

Woven
garments, 41%
45% 41%
40%
40%
2013-14 2014-15 (in billion USD) 35%
3.00
30%
2.50
25%
2.00 1.49
1.02
1.28 1.24
1.18 20%
1.34 1.18
1.50 1.17 14%
15%
1.00 10%
1.24 1.23 1.21 1.26 1.17
0.50 1.01 1.03 1.06 5% 3% 2%
0.00 0%
July Aug Sep Oct Nov Dec Jan Feb
Jute Knitwear Woven garments Frozen food Others
Remittance decreased by USD 0.06 billion in February'15 Category-wise breakdown of exports January 2015
compared to January'15
24
at a Glance
Liquidity position:scheduled banks
Highest: Import credit development
Liquidity
Private Banks (Other
1% than Islamic) 42%
8% State owned Banks
12% 36% Private Banks (Other than

Islamic)
remittAnce
42%
Private Banks (Islamic)
Foreign Banks Export

inflation
Specialised Banks
Total liquidity assets for December 14 was BDT 2268.81 billion
inflation kEY INFO

Inflation rate in January 2015 declines as food inflation decreases
The implementation of the annual development
program (ADP) fell significantly by 49% in January
2015 from December 2014. In January, BDT 3,364
10.00% crore of the ADP allocation was spent, against BDT
9.00% 9.09% 6,586 crore in December 2014.
8.81% 8.84% 8.96% 8.95%
8.00% 8.00% 7.94% 7.67% 7.63% 7.16%
5.71% 6.44%
5.45% 5.76% 5.63% 5.74% 5.84%
6.00% 5.23% 5.16% 6.48% 6.01%
5.37% 5.26%
4.00% 49%
2.00%
0.00%
Dec -13 Jan-14 Feb -14 Mar -14 Apr -14 May -14 Jun-14 Jul-14 Aug -14 Sep -14 Oct -14 Nov -14
Food Inflation (point to point) Non-Food Inflation (point to point)
25
Buzzword
Mobile Payment and Near field communication (NFC)
M
-payment (mobile payment) is a point-of-sale payment made through a mobile device, such as a
cellular telephone, a smart phone, or a personal digital assistant (PDA). Using m-payment, a person
with a wireless device could pay for items in a store or settle a restaurant bill without interacting with
any staff member. So, for example, if a restaurant patron wanted to pay quickly and leave the restaurant on
time to get to an appointment, the bill could be paid directly from the table - without waiting for a server to
bring the check. The patron would simply connect to the cash register with a wireless device, punch in the
table number and bank personal identification number (PIN), and authorize payment. According to Orange
Mobile Payment (a Danish company), the entire transaction should take no more than 10 seconds.
Near field communication (NFC) technology enables simple and safe two-way interactions between
electronic devices, allowing consumers to perform contactless transactions, access digital content, and
connect electronic devices with a single touch. Whether swiping your smart phone at the checkout lane
in the grocery store, waving it over a display at a local museum, or bumping phones with a friend to
share the latest games, near field technology lets you pay, play, and learn easily. From its humble roots in
radio-frequency identification to its growing market across the world, learn about this rapidly expanding
Using m-payment, technology that could replace the need to carry multiple credits and debit cards at once.
a person with a
wireless device Overview
could pay for
The earliest m-payment trials were based on the wide area network (WAN) used for cellular phones. That
items in a store or meant, however, that users had to pay cell phone charges to make a payment, and also had to punch in
settle a restaurant long sequences of digits each time. Other technologies tested enable less cumbersome procedures. Palm
bill without and Verifone will use infrared (IR) data transmission for their initial trials. Among the other technologies
being used are Bluetooth, WiFi, and RFID, a short-range transmission system. Public key infrastructure (PKI)
interacting with encryption - considered to be necessary for secure m-commerce in general - is currently being incorporated
any staff member. into digital wireless networks and into an increasing number of wireless devices, a trend that is likely to
increase consumer confidence in m-payment’s security.
26
In developing countries mobile payment solutions have been deployed as a means of extending financial
services to the community known as the “unbanked” or “underbanked,” which is estimated to be as much
as 50% of the world’s adult population, according to Financial Access’ 2009 Report “Half the World is
Unbanked”. These payment networks are often used for micropayments. The use of mobile payments in
developing countries has attracted public and private funding by organizations such as the Bill and Melinda
Gates Foundation, USAID and MercyCorps.
M-payment is already being used in some parts of the world, including Europe and Asia. In North
America, a series of trials are scheduled for late 2001. Commerce Systems, a company based in Kingston,
New York, and Nokia jointly developed a cellular phone m-payment system that is being tested in a trial
with two United States restaurant chains. One small complication hindering wide-spread acceptance
of m-payment is the distinction that credit card companies make between transactions where the card
is physically present at the point of sale and those where it is absent - for example, when you use your
credit card for transactions over the telephone or your computer’s Internet connection. For payments
in what are considered “card not present” situations, credit card companies charge the merchant a
higher transaction fee. Whether m-payment would qualify as a “card present” situation or not has not
yet been determined; that decision may depend on the degree of confidence credit card companies
have in the security of m-payment.
NFC complements many popular consumer level wireless technologies, by utilizing the key
elements in existing standards for contactless card technology (ISO/IEC 14443 A&B and JIS-X
6319-4). NFC can be compatible with existing contactless card infrastructure and it enables a
consumer to utilize one device across different systems. Extending the capability of contactless
card technology, NFC also enables devices to share information at a distance that is less than 4
centimeters with a maximum communication speed of 424 kbps. Users can share business cards,
make transactions, access information from a smart poster or provide credentials for access control
systems with a simple touch.
NFC’s bidirectional communication ability is ideal for establishing connections with other technologies by
the simplicity of touch. For example, if a user wants to connect a mobile device to a stereo system to play
music, he can simply touch the device to the stereo’s NFC touch point and the devices will negotiate the
best wireless technology to use.
Mobile Payment and NFC Application
NFC devices can be used in contactless payment systems, similar to those currently used in credit cards
and electronic ticket smartcards, and allow mobile payment to replace or supplement these systems. With
the release of Android 4.4, Google introduced a new platform support for secure NFC-based transactions
through Host Card Emulation (HCE), for payments, loyalty programs, card access, transit passes, and other
custom services. With HCE, any app on an Android 4.4 device can emulate an NFC smart card, letting users
tap to initiate transactions with an app of their choice. Apps can also use a new Reader Mode so as to act
as readers for HCE cards and other NFC-based transactions. On September 9, 2014, Apple also announced
support for NFC-powered transactions as part of their Apple Pay program. Apple stated that their version
of NFC payment is more secure than competitors because Apple Pay implements tokenization of its data in
order to encrypt it and protect it from unauthorized use.
In 2011, handset vendors released more than 40 NFC-enabled handsets with the Android mobile operating
system and support for the Google Wallet mobile payment service. Google Wallet is officially supported on
The iPhone 6 line most NFC equipped mobile devices running Android 4.4 Kit Kat which introduced Host Card Emulation for
NFC payments. The iPhone 6 line is the first set of handsets from Apple to support NFC, and will use Apple
is the first set of
Pay for payment services. BlackBerry devices have also supported NFC using BlackBerry Tag on a number
handsets from of devices running BlackBerry OS 7.0 and greater. Mastercard has added further NFC support for PayPass
Apple to support for the Android and BlackBerry platforms, enabling PayPass users to make payments using their Android
NFC, and will use or BlackBerry smart phones in addition to a partnership between Samsung and Visa to include a ‘paywave’
application on the Galaxy S4 smart phone. Microsoft added native NFC functionality in their mobile OS
Apple Pay for
with Windows Phone 8, as well as the Windows 8 operating system. Microsoft provides the “Wallet hub”
payment services. in Windows Phone 8 for NFC payment, and can integrate multiple NFC payment services within a single
application.
27
Economy
ADP SPENDING Development process to slow down for political turmoil l

IN 2014-15 (IN
ADP Expenditure(In crores of taka)
CRORES OF BDT) Top 10 (minister/Divisions)
Dec-14 Jan-15
Change In %
Local Government 1280 681 -47
Jan 3364
Power 911 394 -57
Dec 6586 Bridges 1584 24 -98
Primary and Mass education 109 197 81
Nov 5470
Railway 191 441 131
Oct 3413 road Transport and highways 506 197 -61
Health and Family welfare 160 106 -34
Sep 3209
Energy and Mineral Resources 306 254 -17
Aug 1969
Education 335 281 -16
Housing and Public works 245 18 -93
Jul 1847 Source: Implementation Monitoring and Evaluation Division
The implementation of the annual development program amplified every month until December of the
Source: Implementation Monitoring
and Evaluation Division (IMED) current fiscal year, but fell significantly, by 49%, in January from the previous month. In January, BDT 3,364
crore of the ADP allocation was spent, against BDT 6,586 crore in December, according to the government’s
Implementation Monitoring and Evaluation Division (IMED). According to the IMED, during July-January,
BDT 25,858 crore of the ADP money was spent, up from BDT 21,857 crore in the same period a year ago.
Lead economist at the World Bank’s Dhaka stated that ADP implementation usually remains slow at the
beginning of a fiscal year, but it gathers momentum during the dry season.
Bangladesh becoming a top spot for Muslim travelers l
Rank Destination Score

1 Malaysia 83.8
2 Turkey 73.8
3 United Arab Emirates 72.1
4 Saudi Arabia 71.3
5 Qatar 68.2
6 Indonesia 67.5
7 Oman 66.7
8 Jordan 66.4
9 Morocco 64.4
10 Tunisia 64.3
Source: Global Muslim Travel Index
According to a study, Bangladesh has found a place among the world’s top destinations for Muslim
travelers due to its availability of Muslim-friendly services and facilities. The Global Muslim Travel Index
2015 developed by MasterCard, a payment network provider, and Crescent Rating ranked Bangladesh 18th
on the list of destinations.
The Muslim travel market forecasted to be grown to 150 million visitors a year by 2020, and their annual
spending would reach about USD 200 billion, according to the study. Around 108 million Muslim travelers
spent USD 145 billion globally, representing 10% of the entire travel economy. Muslims has become an
important consumer market for the entire world. They would become an increasingly important segment
for businesses across all sectors. The study also stated that the Muslim population has been growing rapidly
and expected to become 26.5% of the world’s population by 2030.
Travel continues to be a core passion for consumers and the index would prove to be a trusted resource
for this important, fast-growing traveler segment. Not surprisingly, Saudi Arabia saw the highest number of
Muslim arrivals of 10.2 million people in 2014, followed by Turkey at 8.1 million people.
28
Natural disasters may jeopardize Bangladesh

manufacturing l
Natural disasters can be a serious issue for Bangladesh’s aspirations to become a manufacturing core for
investors leaving China, featured among the world’s 100 cities most exposed to natural shocks. Dhaka, the
country’s biggest manufacturing center, came in at 35 of UK-based risk Analytics Company Verisk Maple
croft’s annual list of 100 most exposed cities, which helped organizations identify and compared risks to
populations, economies, business and supply chains.
According to the research, natural hazards constitute one of the most severe disrupters of business and
supply chain continuity, and also threaten economic output and growth in some of the world’s key cities,
especially for those located in the emerging markets. Over the coming years, high-risk countries are
expected to host increasingly large volumes of trade.
With foreign investment continuing to flow into countries highly exposed to natural hazards, those which
would unable to demonstrate robust resilience might lose an element of their competitiveness. The
company decision-making over sourcing locations or market entry was increasingly influenced by issues
such as strength of infrastructure and institutional robustness.
WB to stream USD 200 million loans for rural poor people l

The World Bank provided USD 200 million in loans to lighten poverty for around five million people
in rural Bangladesh. According to the Washington-based lender, the loan under the Nuton Jibon
Livelihood Improvement Project would benefit people of the poorest upazilas in 21 districts and
support livelihoods by increasing access to market through business partnerships and funding small
rural infrastructure. It would also work on nutrition awareness, agricultural knowledge and continue to
focus on youth job opportunities.
Bangladesh has made remarkable progress in reducing poverty, with 16 million people coming out of
poverty in the last one decade, according to WB’s country director. Yet, poverty remained a daunting
development challenge, as there are still around 47 million poor people.
The project would cover around 2,500 new villages in 12 districts in addition to the about 3,200 villages
supported under the Social Investment Programme Project-II. Project that started as a pilot in two of the
poorest districts of Bangladesh in 2003 and gradually extended to 14 more districts.
Selected Economic Indicators l
Item Period/As of Value/ bn Period/ As of Value/ bn +/(-)%
Foreign Exchange Reserve (USD) February'15 23.03 January'15 22.04 4.49%
Workers’ Remittances (USD) February'15 1.18 January'15 1.23 -4.54%
Revenue Collection (BDT) January'15 107.85 December'14 113.38 -4.88%
Broad Money (M2) (BDT) January'15 7385.27 December'14 7412.48 -0.37%
Reserve Money (RM) (BDT) January'15 1396.33 December'14 1391.44 0.35%
Total Domestic Credit (BDT) January'15 6709.91 December'14 6737.35 -0.41%
Credit to Private Sector (BDT) January'15 5418.82 December'14 5434.07 -0.28%
Source: March 2015, Selected Economic Indicators, Bangladesh Bank
29
Trade
EXPORT SECTORS
(IN % OF TOTAL EXPORT) Exporters fear growth may drop for unrest l
In spite of the growing political and financial unrest alike, the country’s apparel industry has maintained a
2% 10% stable positive growth over the first eight months of the fiscal year. Although the situation may not remain
3%
4% as auspicious for the rest of the period, fears garment exporters. The growth might be short lived, and the
impacts of the unrest and turmoil would soon be evident on the garment exports. President of the Bangladesh
Garment Manufacturers and Exporters Association (BGMEA) has vented that the industry was supposed to
reap the benefits of the reforms that had been undertaken previously, but with the current situation the
chances of even reaching the export target for 2014-15 was rapidly faltering.
81%
More investment required for escalating tea production l
Garments Jute Leather
Frozen foods Others
Due to falling production, Bangladesh’s status has changed to tea importing country from an exporting
country. More investment, resolution of land disputes and low interest bank loans are needed for the tea
Source: Export Promotion Bureau
industry to renovate the lost pride of the sector.
MONTHLY RECEIPTS Bangladesh Tea Board stated that Bangladesh could earn significant amount of foreign currency through
(IN BILLIONS) exporting high quality tea. The government has taken an initiative to implement the strategic plan, Vision
2025, aiming at development of the country’s tea industry and boosting the export of tea, according to the
Dec'14 2.88
Ministry of Commerce.
Bangladesh has huge potential to increase the production of tea as the soil of some northern districts is
Nov'14 2.41
suitable for the cultivation of tea. Tea Research Institute has already developed 18 varieties of highbred, 4
biclonal and one polyclonal seeds to boost tea production. In 2013, Bangladesh produced 66.26 million kg of
Oct'14 1.95 tea from 58,719 hectares of land against the local demand of 64 million kg, according to the papers presented
at the workshop. The demand for tea has increased by 3.23% a year while production has increased by 2%
Sep'14 2.55 only, according to statistics of Tea Research Institute.
Aug'14 2.15 Bangladesh to import 7000MW from neighbors l

As stated by Ministry of Power and Energy, Bangladesh has planned to import 6000-7000 MW of power from
Source: Export Promotion Bureau Nepal, Bhutan and India. Therefore, the plan to double the future import of electricity from neighboring
countries is recast. Power Division under the Power, Energy and Mineral Resources organized the workshop
to evolve strategies for development of the country’s power and energy sector which was attended by top
officials from both private and public entities in the sector.
Bangladesh Energy Regulatory Commission (BERC), Power Secretary, Power Development Board (PDB)
and Petronbangla were also present at the workshop. Bangladesh planned to import 6000-7000 MW from
neighbors as part of the regional cooperation.
Investment in handicraft to double in five years l

Despite having some impediments including absence of proper policy and others logistic support, the local
handicraft industry has made significant improvement over the years. According to sector insiders, the total
investment in the sector has doubled to BDT 60 billion in the last five years as many entrepreneurs mainly
women are gradually getting engaged in business.
The handicraft industry’s annual turnover was estimated to be around BDT 15 billion. The sector has
contributed to employment generation of nearly 5.0 million people, where 80% are women. Although export
performance of handicraft sector was insignificant, the overall earning was not lower as the Export Promotion
Bureau data did not include leather, jute-made product, wooden furniture and jute yarn in it.
According to the Export Promotion Bureau data, export earnings from handicraft sector amounted to USD
7.50 million in 2013-14 fiscal year, up from USD 6.16 million one year earlier. During the last eight months of
current fiscal year, the earning is USD 4.97 million. The most exportable items are baskets which are made
of jute, cane, sea grass, date leaves and sugar palm leaves, clay product including terracotta, terracotta tali,
Satoronjee, jute shopping bag, and jute gardening product etc.
30
SHRIMP AND FISH

EXPORTS VOLUMES
Frozen food exporters in an inflexible area l
(IN TONS) Due to the ongoing political turmoil, a sharp fall in the value of the euro and the Russian ruble against the dollar
has hit the frozen food industry firmly. According to exporters, prices of black tiger shrimp, the major frozen
3361
Jan food item that went to the European markets, have slumped 42% to USD 5.25 a pound from August last year.
2890
4477 Bangladesh earned USD 638 million by exporting 55,074 tons of frozen food, including shrimp, in fiscal 2013-
Dec
4405 14. Overall, shipment fell 5% year-on-year to 32,800 tons in July-January of this fiscal year, according to the
Bangladesh Frozen Foods Exporters Association. The earnings dropped 5% to USD 397.6 million during the
4106
Nov period from the same period a year ago, according to Export Promotion Bureau.
4322
4492 Shrimp exporters had to face a liquidity crisis as they cleared their stock at 40% lower than the procurement
Oct
5500 prices. The ongoing political turmoil has dealt another blow to the frozen food processors by affecting
5569
transportation of raw and processed shrimp and fish. Due to the instability, most buyers are not placing new
Sep
6030 orders. The most startling thing was that the amount of inventories fell and incurred losses of around BDT
600 crore for selling shrimp at reduced prices and for the problems in transportation of raw and processed
Aug
5220 products. To ride out the problem, the association demanded that the government should increase cash
5692
subsidy for frozen food export to 25% from 10% now.
5573
Jul
Rice imports goes up to four-year high l

5939
2013-14 2014-15
Rice imports strike a four-year high as traders find foreign produce cheaper mainly from India. According to
Source: Bangladesh Frozen Foods
Exporters Association food ministry data, private traders imported 8.73 lakh tons of rice between July 1, 2014 and March 2, 2015,
which was the highest since fiscal 2010-11. In December last year, a parliamentary panel advised the food
ministry to take steps to discourage imports.
According to the traders and millers, import soared in the current fiscal year due to a zero-duty facility for rice
import and higher production of medium quality rice in India. Increasing trend in import have put millers
in a tight spot as the demand for locally grown coarse and medium quality rice has come down. As per
Bangladesh Bureau of Statistics, Bangladesh produced 3.44 crore tons of rice in fiscal 2013-14, up from 3.38
crore tons a year ago. The government also shipped 25,000 tons of rice to Sri Lanka early this fiscal year, due
to stockpile on the increased output. The Bangladesh Auto, Major and Husking Mills Association, which has
around 17,000 members, reported that they were demanding the government discourage imports to protect
local millers and farmers.
31
Business
Cotton consumption ascended on rising garment

exports l
As per the president of Bangladesh Textile Mills Association, the country’s cotton consumption would
continue to rise given the buoyant forecast for apparel exports. The garment exporters were looking to hit
the USD 50 billion-mark by the end of 2021.
According to BTMA, in fiscal 2004-05, the country imported three million bales of cotton but within a span
of ten years the country’s consumption doubled. Cotton import registered 8% growth to 5.6 million bales
in fiscal 2013-14 and 6% the previous year. Currently, the local spinners and weavers have the capacity to
consume 10 million bales of cotton, but they were unable to go into full production due to inadequate
supply of gas and power to industrial units. Yet, the 400 local spinners could supply 90% of the demand for
raw materials for the knitwear sub-sector of the apparel industry and 40% for the woven sub-sector.
Farmers poorly paid, shortchanged by traders l

Fruit and vegetable growers, given their inadequate staying power with perishables, are among the
hardest-hit in the economy .The blockade and shut-downs over a long period have put the farmers in
double hazard. In the first place, gluts of perishable produces have been left to wither in the fields or just
dumped to rot.
In addition to the blow, the supply chain disruptions have jabbed at the growers and consumers alike; they
now have to deal with a new phenomenon of exploitation. The wholesalers, taking advantage of higher
transport costs, are cashing in on the abnormal situation in two ways: they are paying low to the growers
and marking up prices for the consumers.
In the process, the traders are skimming profits alright, apparently making the most of both worlds:
shortchanging farmers on the one hand, and having the consumers pay higher prices. For, after deducting
input, labor, and transport costs and stockists’ commission, a potato producer would get BDT 5.5 per kg
which does not even cover his production cost.
Global demand to coerce home textile investment l

Despite the downside regarding European Union’s GSP facility to Pakistan and current political turmoil,
a growing global demand was instigating increasing entrepreneurial endeavors in the sector. Newer
opportunities were emerging ahead as buyers from China are shifting to Bangladesh. Good quality,
commitments, low production cost, cheaper wages, duty-free access to some developed countries were
the factors that weigh in favor of Bangladesh for the retailers to source from here.
Good quality,
commitments, low According to the industry insiders, European Union GSP facility for Pakistan, appreciation of the local
production cost, currency against the US dollar and depreciation of EU currency against US dollar and lingering political
cheaper wages, turmoil were considered to be the major impediments to the country’s home textile exports. Bangladesh
duty-free access to would probably face strong competitive pressure from Pakistan in home textile trade, according to a recent
study conducted by Bangladesh Foreign Trade Institute (BFTI). Therefore, Bangladeshi made home textiles
some developed
were lagging behind Pakistan in terms of cost competitiveness.
countries were
the factors that The sector could not flourish to the expected level due to lack of the government policy support, while
weigh in favor of financial institutions like banks did not come up with funds as it did for the garment sector. The industry
Bangladesh. needed capacity building to capitalize on the upcoming opportunities to take a sizeable part of the world’s
home textile market, according to businesspeople.
32
GOLD PRICE Gold price drops l

(BHORI 11.66
GRAMS/TAKA) Due to a turn down in domestic demand for jewelry and the value of the precious metal in the global
market, the prices of gold have dropped 3.24% since January 22. The metal is now vending at BDT 44,506
2015 44506 a bhori, a price level it has reached twice since April 2013. As stated by president of Bangladesh Jewelry
Manufacturers and Exporters Association, annual demand for gold jewelry in Bangladesh fell to 16 tons in
2015 45998
2014 from 45-50 ton in 2004.
2014 44506
2014 45707 According to Bloomberg Global, gold prices had reached a record high of USD 1921.17 an ounce on
September 6, 2011. In the international market, gold prices recently declined by around USD 40 an ounce.
2014 47165
In Europe, gold prices fell almost 1% to a three-month low as the dollar raised to a near 12-year peak versus
2014 48389 the euro, on renewed expectations of a mid-year hike in US interest rates. In London, gold dropped to USD
1,155.6 an ounce in early trade, while silver fell to its lowest in two months at USD 15.57 an ounce. While
2014 47223
entering Bangladesh, a traveler can bring up to 100 grams of gold jewelry without paying any tax and duty
2014 48389 under baggage rules.
2013 46932
2013 48389
Processed chicken market to warm up l
2013 49555
The high-ceilinged demand for easy and hygienically-prepared foods among the urban middle class was
2013 50721
pulling in large investors to the processed chicken and ready-to-cook frozen foods sector.
Source: Bangladesh Jewellers
Samity Local poultry giant Kazi Farms recently entered the segment to grab a pie of the BDT 150-crore market
that was growing by more than 20% a year. People’s lifestyles were changing due to their rising incomes
and higher economic growth of the country. Kazi, with its strong presence in poultry breeding and feed
market entered the market as part of its plan to expand business and provide hygienically prepared and
safe chicken-based foods to consumers. The market has been growing for the last ten years, but it gained
momentum in the last two-three years due to an increase in the number of operators and people’s rising
interest in convenient foods.
33
Regulatory IDLC MONTHLY BUSINESS REVIEW
News
Banks to turn their back on call money market l

Call Money Rate
8.41
7.77 8.21
8.57
7.93
6.65
6.86
6.52
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

Source: Bangladesh Bank
As per bankers, overall transactions on the call money market have dropped drastically as lender banks prefer
lucrative alternatives for higher earnings. According to central bank’s statistics, the overall turnover on the
inter-bank money market fell more than 47% to BDT 27.96 billion on March 25 from BDT 53.29 billion on
March 16. A senior official of a leading state-owned commercial bank, reported that they prefer to invest their
excess funds in inter-bank Repo and term deposits for higher earnings than that from the call money market.
The lender banks easily lend their funds on the inter-bank Repo market by charging interest rates between
8.00% and 8.50%. Some lender banks are also investing their funds in cash-hungry banks and non-banking
financial institutions (NBFIs) in the form of inter-bank placement, generally known as FDR to receive higher
interests than that from call money. The private bankers stated that Bangladesh Bank discourages offering
higher rates on the call money market without assigning any reason so that the excess funds are invested in
both inter-bank Repo and inter-bank placement.
Central bank imposed penalty on indebted banks l

Bangladesh Bank (BB) was likely to impose commitment failure fee against the scheduled banks which would
not settle the overdue inland and foreign bills of letters of credit in due time. The central bank was thinking
about the amount of commitment failure fee to be imposed on the banks.
The BB earlier took initiative to settle the overdue inland and foreign bills by deducting funds from the
indebted banks’ current accounts maintained with the central bank. As stated by the BB official, the central
bank earlier issued show-cause notice to a number of banks and imposed financial penalty on them as they
did not settle the bills in due time. However, BB was to bring discipline in inland bills settlement in the banking
sector as banks were still maintaining a large amount of overdue bills. For this reason, the BB has taken move
to impose commitment failure fee against the indebted banks to force them to settle their overdue inland bills
in due time to the creditor banks. At one stage in 2013, the overdue inland bills stood at around BDT 4,000
crore in the banking sector. The BB official hoped that discipline in the overdue bills in the country’s banking
sector would return when the central bank would implement its new decision.
BB loosen up provisioning requirement for banks’

mutual fund investment l
Due to the recent price collapse of the mutual funds, Bangladesh Bank (BB) has recently reduced the
provisioning requirement of banks for their investment in mutual funds. BB has recently announced that
banks would not require maintaining provision against their investment in a mutual fund if the cost price of
a unit equals or goes below 85% of market price or net asset value of the unit.
The provision would be calculated based on two formulas; the first one would consider the provision based
on cost price and market price. The second one would consider the difference between the cost price of a
unit and 85% of the net asset value. This directive would be only be applicable for the closed end mutual
fund. For the open ended one, however, the banks would have to maintain provision if the unit of the
fund equals or went over 85% of the net asset value of the unit. The price of many of the mutual funds had
slumped in recent times amid bearish trend in the capital market, resulting in losses of the banks and their
subsidiaries, according to the central bank.
34
Central bank gave job shield for NBFI CEOs l

Bangladesh Bank has taken initiative to give job protection for managing directors and chief executive
officers of non-bank financial institutions as the boards of directors of the NBFIs were able to suspend their
MDs and CEOs on their own consideration without taking approval from the central bank.
According to the chief of the association of the NBFIs, they would apply to the central bank to take measures
in this regard citing that the boards of scheduled banks have to take approval from the BB to eliminate their
CEOs and managing directors. BB governor with chief executive officers and managing directors of the
NBFIs at the central bank headquarters, warned the NBFI CEOs of taking disciplinary measures against their
chairman, directors and chief executives if they continued to commit financial corruption.
BB set restriction on debit card annual fee l

Bangladesh Bank set restrictions on annual fee of debit cards offered by scheduled banks as some of them
enforce excess charge on their clients for using the product. According to BB official, the central bank was
likely to impose annual charge between BDT 300 and BDT 400 for all types of debit cards of the banks in a
bid to popularize more the online-based transaction.
The banks forced annual charge on the debit cards between BDT 300 and BDT 2,000 which was impeding
to accelerate the card-based transaction through automated teller machine and point-on-sale. BB official
further added that the central bank would also take an initiative to allow the clients to enjoy the debit card
service without any annual fee if they make a certain amount of transaction through their cards.
In addition, the BB imposed restriction on card and PIN replacement fees for the banks as the charges were
also high considering the existing rate. According to the latest BB data the banks issued 7,285,805 debit
cards and 577,864 credit cards and 102,787 prepaid cards as of September 30, 2014 while they set up 6,035
ATM booths and 26,140 POS terminals. Charging less transaction fee on debit cards would increase the
usage of debit cards that would eventually reduce the use of printed currency note and coin.
35
Entrepreneurs’ IDLC MONTHLY BUSINESS REVIEW
Assistance Tool
Import Registration Certificate

I
mport is an integral part of present day business. To start an importing business in Bangladesh, is a
common trend for many new entrepreneurs. In the present time, import and export trade dominate the
world economy. For establishing an import business in Bangladesh, one must need Import Registration
Certificate (IRC). Many young entrepreneurs now are involving in the import and export business. These
businesses are easy to start, need comparatively low investment and can earn higher rate of profit.
The main import goods in Bangladesh are capital machinery, raw materials of garments products and
pharmaceuticals. The IRC are issued by The Chief Controller of Import and Export (CCI&E), under the
Ministry of Commerce in Bangladesh.
How to collect Import Registration Certificate in Bangladesh?
Requirements of a new importer for getting Import Registration Certificate (IRC):

Application in a prescribed form.
Valid Trade license.
Membership certificate of the respective trade organization or Membership from the Chamber of
Commerce & Industry.
Registered partnership deed/Memorandum and Articles of Association along with Certificate of Incorporation.
Two copies attested photograph of the applicant(s).
Affidavit from 1st class Magistrate.
Asset Certificate of the applicant(s).
Ownership deed or Lease deed of the office premises along with rent receipt.
Bank solvency certificate.
Tax Identification Number (TIN) Certificate.
Money receipt of requisite fee.
Any other document as required.
After submission of the application by the intending importers for IRC alongwith the papers mentioned
above and deposit of requisite fees, on being satisfied, the Chief Controller of Import & Export (CCI&E)
issue IRC to the Industrial Consumers or Commercial importers with their half yearly/yearly entitlement
mentioning item of commodities.
Import Registration Fees
Value of Annual
Catagory Registration fees (BDT) Renewal fees (BDT)
Import (BDT)
First 5,00,000 5,000 3,000
Second 25,00,000 10,000 6,000
Third 50,00,000 18,000 10,000
Fourth 1,00,00,000 30,000 15,000
Fifth 5,00,00,000 45,000 22,000
Sixth Above 5,00,00,000 60,000 30,000
Source: The Register of Joint Stock Companies & Firms (RJSC)
Contents of an IRC
Validity period & issue date mentioned

Name of the importer mentioned
Sometimes amount limited
Sometimes item limited.
Name of the Bank (LC)
Exempted persons from Registration as an Importer
In terms of the Importers (Registration order 1981), no person can import goods into Bangladesh unless
registered with the CCI&E or exempted from the provision of the said order. Personal user needs no
registration. They may import beyond USD 5,000/- with the permission from CCI&E.
36
International
Facebook bought shopping search engine ‘The Find’ l

Facebook expanded its reach in the e commerce realm by acquiring the popular shopping search engine
‘TheFind.com’. The website has been helping people find the suitable and proper shopping solution
for the last nine years and has recently decided to join forces with most popular social networking
website Facebook. The Find members hope to wield their technological competency to make the ads on
Facebook “more relevant”.
Facebook has been relentlessly looking for better ways to provide information to its valued customers
and this acquisition was just another step towards their ultimate goal of making information ubiquitous.
‘The Find’ is everything you need when shopping, to quickly decide what to buy and where to buy it
from. The operation base of ‘The Find’ in Silicon Valley may move to Facebook’s campus in Menlo Park,
California.
EU to query cross-border e-commerce barriers l

The EU’s competition announced plans for a probe into whether companies were creating barriers to stop
consumers buying online from other countries. Although half of all EU consumers shopped online last
year, only 15% bought from sellers based in other member states in the 28-nation bloc. It was high time to
remove remaining barriers to e-commerce, which was a vital part of a true digital single market in Europe.
European consumers might be prevented from accessing a particular website based on their residence
or credit-card details. After the initial general probe was completed next year the Commission could
then take on specific cases of “restrictive business practices and abuse of dominant market positions.”
Europe as a bloc was the world’s biggest economy, but despite its 500 million potential consumers it
largely remained a divided continent of 28 distinct economies, especially when it came to media and the
Internet. Across the EU, digital services like music streaming site Spotify or shopping behemoth Amazon,
often remain confined to national borders, with separate accounts required from one country to another.
Twitter bought live stream app maker Periscope l

Twitter purchased the maker of the video streaming app Periscope, amid what seems to be surging
interest in live video sharing. Twitter did not release details about the deal, but media reports said Twitter
was paying between USD 50 million and USD 100 million for the app, which was in the testing phase and
has only been available by invitation.
The news comes amid growing interest in live video sharing, and a rush of users to another streaming
app called Meerkat. It was not immediately clear if Twitter would maintain Periscope as an independent
app or integrate it into the messaging platform.
A developed nation is a
prosperous nation.
At IDLC, we help you

contribute to this
process.
We are in the business

of financing happiness.
37
Market Roundup
Commodity Market Roundup
Global food price lowest since July 2010 l
2002-2004-100
250
2011
230
2012
210 2013
190
2014
2015
170 J F M A M J J A S O N D
Source: Food and Agricultural Organization
The global food prices in February 2015 were nearly 1% below its revised value for January and 14% lower
than in February 2014. The prices of cereals, meat and, especially, sugar, dipped last month, while they
remained steady in the case of oils and rebounded sharply in the case of dairy products.
Cereal price declined by 3.2% from January, primarily driven by the prices of wheat, coarse grains and rice,
but the decline was most pronounced for wheat, reflecting continued improvement in the 2015 wheat
production prospects, amid already large world inventories.
Prices of oils and fats averaged 156.6 points in February from January 2015. The small gain was driven
by palm oil, reflecting recent floods that impaired production in Malaysia and the prospect for a surge of
consumption in Indonesia following a hike in domestic biodiesel subsidies.
Dairy products saw a rapid rise of 8 points or 4.6% over January 2015. Whole milk powder registered the
strongest increase, followed by skimmed milk powder and butter; cheese quotations remained unchanged.
Meat price decreased to 187.4 points in February, only 1.4% than its revised value from January. The
reduction was caused by lower bovine and ovine meat quotations, while poultry meat prices were
unchanged and those of pig meat recovered after eight straight months of decline.
Sugar price fell down 10.6 points or 4.9% from January. The decline mainly reflected improved crop
prospects in Brazil, the world’s largest producer and exporter of sugar, following recent rainfalls in the main
producing region of the country.
Global oil market – Monthly Overview l

Organization of the Petroleum Exporting Countries (OPEC) has published its Monthly Oil Market Report
on March 16, 2015. The OPEC Reference Basket (ORB) ended February over 20% higher than the previous
month, amid a pickup in prompt demand from Europe and Asia and optimism that oil prices may have
reached a bottom.
The ORB improved USD 9.68 to USD 54.06/b during the month, though still significantly down from a year
ago. Crude oil futures defied fundamentals and moved up sharply after seven months of a declining streak
that ended with values down by almost 60%. Despite a continuing imbalance in the global crude market,
oil futures bounced back, supported by improving physical demand, supply outages and speculation that
low crude oil prices have begun to affect US tight oil production. The ICE Brent contract surged USD 9.04 or
18% m-o-m to USD 58.80/b. The Nymex WTI contract was up USD 3.40 or 7.2% at USD 50.72/b. Meanwhile,
speculative bets on higher ICE Brent prices further increased net length, but sentiment was less bullish on
US crude. The Brent-WTI spread widened, as growing US crude stockpiles resulted in less of an increase in
the Nymex WTI front-month contract. The Brent premium to WTI widened to above USD 8/b in February.
38
Currency Market Roundup

(April, 2015)
Money Market l
The Bangladesh interbank call money rate was around 7.00% – 7.50% on April 05, 2015.
Foreign Market l
Local: The USD/BDT rate was steady and was range bound as on April 04, 2015 as it was last business day
of the year. Trading volume was steady with more cross currency transactions.
International: The dollar tumbled on Friday after a significantly weaker-than-expected U.S. jobs report that
will increase speculation over whether the U.S. Federal Reserve holds off tightening monetary policy for
longer than expected. U.S. employers added the fewest jobs in more than a year in March amid signs the
economy has been hurt by the dollar’s climb to multi-year highs.
Non-farm payrolls rose by 126,000 last month, the smallest gain since December 2013 and well under the
245,000 economists had forecast. The unemployment rate held at a 6-1/2 year low of 5.5%. The euro shot
up over 1 percent after the report to a one week high of USD 1.10270 before drifting to USD 1.09750, a gain
of 0.88% on the EBS trading platform. Trading volumes were very thin owing to the Easter holiday weekend
that has much of Europe closed and skeletal staffing at U.S. banks. U.S. stock markets are closed.
Treasury Bill/Bond Auction Information l

Auction Date Tenure & Name of the Securities Sale Value (in BDT mn) Weighted Average Yield (%)
3/10/2015 30-day BB Bill 7166.203 5.25
3/9/2015 91 days T.Bill 7860.085 7.17
3/2/2015 182 days T.Bill 7083.308 7.65
3/9/2015 364 days T.Bill 8335.752 8.03
3/4/2015 2 yr T.Bond 4360.5 8.5
3/11/2015 5yr T.Bond 7500 9.45
2/18/2015 10yr T.Bond 3883.9 10.85
2/25/2015 15yr T.Bond 1500 11.4
2/25/2015 20yr T.Bond 1500 11.97
* Sale value not applicable, Face Value used. Source: Bangladesh Bank
Financial Sector Prices l

The spread of weighted average lending and deposit rate declined to 5.06% in January, 2015 which
was 5.21% in December, 2014.
The weighted average call money rate in the interbank market went down from 8.57% in January 2015
and stood at 8.21% in February, 2015.
Bangladesh Bank has changed repo and reverse repo rate at 7.25% and 5.25% respectively, following
a declining revision by 50 basis point effective from February 1, 2013.
Exchange and Forward Rates l (As of April 04, 2015)

Major Currency Exchange Rates Major Currency Exchange Rates Exchange Rate of Some Currencies
BC Sell TT Buy BC Sell TT Buy
Currency Currency Currency Per BDT per
BDT BDT BDT BDT Currency
USD Currency
USD 78.00 77.00 CAD 64.59 61.49
EUR 86.71 82.71 HKD 10.10 9.60 INR 61.96 1.25
GBP 117.28 113.28 SGD 58.86 55.98 PKR 101.90 0.76
AUD 61.53 58.57 AED 21.32 20.27 LKR 133.15 0.58
JPY 0.68 0.64 SAR 21.49 20.46 THB 32.41 2.39
CHF 84.08 80.01 DKK 11.49 10.92 MYR 3.67 21.12
SEK 9.20 8.75 KWD 261.12 248.20 Source: Standard Chartered Bank.
39
Insight Analysis l
Smartphone use *1,644 British adults surveyed
between February and April 2014
% reporting use by hour of the day, over a week*
By age group By device
16-34 35-54 55+ Smartphone TV Radio
00:00 00:00
60 100
21:00 03:00 21:00 03:00

40
60
20
20
18:00 06:00 18:00 06:00
15:00 09:00 15:00 09:00
12:00 12:00
Source: Ofcom
Earth is rapidly becoming a planet of the phones. Today two billion phones are in use worldwide, and this
number is expected to double by the end of the decade. By then nearly 80% of adults will have a device
in their pocket with the processing power that would have passed for a supercomputer not too many
years ago. To get an idea how much time people will then spend on their smartphones it helps to look at
today’s young people: the chart shows that they report much more use during all times of the day than
older generations. In total, according to Ofcom, the British telecoms regulator, those aged between 16 to
24 years use their device nearly four hours a day; those aged between 55 to 64 only half as much. When
comparing overall screen time however, the smartphone still has some catching up to do to match the
allure of longer established technologies like television.
International Commodity Prices l

Price March 20, 2015 Price 26 February 2015
Commodity Unit Change +/(-)
(USD/unit) (USD/unit)
Crude Oil Barrel 45.72 45.15 0.01
Gold Ounce 1183.10 1281.25 -0.08
Silver Ounce 16.17 17.83 -0.09
Nickel Tonne 13955.00 14375.00 -0.03
Tin Tonne 16930.00 19500.00 -0.13
Lead Tonne 1758.50 1845.00 -0.05
Aluminium Tonne 1763.00 1818.00 -0.03
Zinc Tonne 2015.00 2090.50 -0.04
Copper Tonne 5920.00 5490.00 0.08
Source: LBMA; Worldal; WTRG
Management Change l
Banks, Fis and Other Organizations
Name Position Organization

Abdul Hafiz Choudhury Chairman Green Delta Insurance Co. Ltd.
Kamran Idris Chowdhury Vice Chairman Green Delta Insurance Co. Ltd.
Syed Waseque Md Ali Managing Director First Security Islami Bank Ltd.
Touhidul Alam Khan Deputy Managing Director Prime Bank Ltd.
Mohammad Jalaluddin Deputy Managing Director Bangladesh Development Bank
Md Hashem Chowdhury Additional Managing Director Mutual Trust Bank Ltd.
Head of Communications and Service
Zara Jabeen Mahbub Brac Bank Ltd.
Quality
40
International Economic Forecast

Year on year percentage GDP CPI
change 2014 2015 2016 2014 2015 2016
Global (PPP Weight) 3.2% 3.2% 3.5% 3.6% 3.3% 3.6%
Advanced Economies 1.8% 2.3% 2.6% 1.6% 0.4% 1.9%
Euro Zone 0.9% 1.4% 1.8% 0.4% -0.1% 1.2%
Developing Economies 4.4% 4.0% 4.4% 5.5% 5.9% 5.3%
Forecast as of March, 2015.
Source: Wells Fargo Securities, LLC
International Market Movement l

% Change on
Markets Index Mar 11th Dec 31st, 2014
One Week
In Local currency In USD
United States (DJIA) 17635.4 -2.6 -1.1 -1.1
United States (S&P 500) 2010.2 -2.8 -0.9 -0.9
United States (NAScomp) 4849.9 -2.4 2.4 2.4
China (SSEA) 3448.2 0.3 1.7 0.8
Japan (Nikkei 225) 18723.5 0.1 7.3 6.1
Britain (FTSE 100) 6721.5 -2.9 2.4 -1.0
Canada (S&P TSX) 14739.2 -2.3 0.7 -7.6
Germany (DAX) 11806.0 3.6 20.4 6.5
Hong Kong (Hang Seng) 23718.0 -3.1 0.5 0.4
India ( BSE) 28659.2 -2.5 4.2 5.0
Pakistan (KSE) 32539.6 -2.1 1.3 0.1
Singapore (STI) 3378.6 -1.1 0.4 -4.2
Source: The Economist
Selected Economic & Financial Indicators l

% change on year-on-year
Global domestic product Consumer prices Current account balance Interest rates,
Unemployment
Country Latest 12 % of GDP % 10-year gov’t
Latest qtr 2015 latest 2015 rate, %
months, $bn 2015 bonds, latest
United States 2.4 2.2 3.2 -0.1 0.3 5.5 -388.1 -2.2 2.13
China 7.3 6.1 7.2 1.4 1.5 4.1 213.8 2.1 3.36
Japan -0.8 1.5 1.1 2.4 1.0 3.6 40.1 1.7 0.44
Britain 2.7 2.2 2.6 0.3 0.5 5.7 -163.0 -4.3 2.04
Canada 2.6 2.4 2.1 1.0 1.1 6.6 -39.3 -2.5 1.50
France 0.2 0.3 0.9 -0.4 0.1 10.2 -21.1 -1.1 0.53
Germany 1.5 2.8 1.6 0.0 0.2 6.5 286.4 7.1 0.21
Russia -0.3 0.0 -3.5 16.7 12.5 5.5 56.6 4.6 12.60
Hong Kong 2.2 1.5 2.5 4.1 3.3 3.3 7.7 2.3 1.65
India 7.5 4.0 6.6 5.1 6.0 8.8 -27.4 -1.6 7.76
Singapore 2.1 4.9 3.1 -0.4 0.4 1.9 58.8 22.6 2.45
Brazil -0.2 0.3 0.0 7.7 7.2 5.3 -90.4 -4.1 13.2
Mexico 2.6 2.7 2.9 3.0 3.9 4.4 -26.5 -1.8 5.99
*% change on previous quarter, annual rate. Source: The Economist.
** The Economist poll or Economist Intelligent Unit estimate/forecast.
41
IDLC News
IDLC and USAID arrange a 3 day event in Chittagong

titled “Industrial Best Practices for Energy Efficiency” l
IDLC Finance Limited in association with USAID-CCEB Program arranged a three day long event in
Chittagong titled “Industrial Best Practices for Energy Efficiency” on 3rd to 5th March, 2015. The program
was entitled for the sponsors, entrepreneurs, plant engineers, CFO, compliance managers and other
relevant personnel. Energy efficient initiatives such as efficient lighting system and electronic appliances,
installation of energy efficient boiler, use of variable frequency drive (VFD) type motor system, waste heat
recoveryetc have immersed as an important tool for energy management. The program focused on Energy
scenario, potential of energy efficiency at industrial level, options for modifications, low cost financing
source and availability of other incentives.
Focusing in industry specific agendas, program of 3rd March was held at Hotel Peninsula for the sponsors,
engineers and finance personnel of textile sector. Similar sessions were carried out on 5th March for Frozen
Food and Steel industry. As a part of in house capacity development, prospect and mechanism for financing
EE projects was illustrated in IDLC Chittagong office. The objective of the workshop was to raise awareness
amongst industry owners and plant engineers on the opportunities to improve energy efficiency and its
relative cost effectiveness.
Mr. Mahbubul Alam, President of Chittagong Chamber of Commerce and Industry inaugurated the program
as chief guests. Engr. ManzareyKhorshed Alam, Chairman of Institute of Engineers Bangladesh (Chittagong
Centre) were present as special guest. Senior officials of IDLC Finance Limited and USAID CCEB program
was also present during the three daylong event. It is to be mentioned that IDLC and USAID-CCEB have
partnership to promote industrial energy efficiency and creating scope for availing low cost fund under
Bangladesh Bank green refinancing scheme.
42
IDLC CSR News
IDLC organizes an Environmental Awareness Workshop

for School Teachers l
In continuation to the Environmental Awareness Campaign for School Children, IDLC jointly with LEADS
started the second phase of the program. To make this campaign successful through active participation
from both the children and the respective school authorities, a half day workshop was organized for the
school teachers at Dhanmondi’s Ambala Inn in March 24, 2015. A number of 30 teachers from 20 different
schools of Dhaka participated in the workshop and exchanged their opinions.
The workshop focused on issues such as environmental pollution and mitigation measures; responsible
consumption of natural resources; adoption of the 3R principle of Reduce, Reuse and Recycle to minimize
wastage etc. Moreover it helped to bring the schools on board and plan ahead to conduct the sessions
throughout the year.
Ms. Bilquis Jahan, Head of HR, IDLC Finance Limited inaugurated the event on behalf of the CEO &
Managing Director Mr. Selim R. F. Hussain. Mr. Mehbuboor Rahman, Assistant Manager, Green Banking
Desk, Corporate Division was also present during the program. Mrs. Romina Dewan, Executive Director,
LEADS conducted the whole session.
43
Capital Market IDLC MONTHLY BUSINESS REVIEW
Review
March turned out to be another painful month for the economy as well as the equity market of Bangladesh.
Political situation remained the protagonist of the play and acted against the betterment of the markets. As the
major political parties are yet to reach an agreement, future of its economy remain bleak and uncertain, failing
to instill confidence among investors. Although, city corporation election and indirect participation of the major
opposition gestured a way out, investors may have perceived it inadequate. Under this chaotic circumstance, risk
premium went even higher, discounting equities deeper to an apocalyptic zone. After the agonizing downtrend
throughout the month, all the indices shrank, with DSEX losing 233 points (4.9%), DS30 losing 44 points (2.5%)
and DSES losing 28 points (2.5%). The closing value of the three indices were 4,530, 1,728 and 1,103, respectively.
The whole month had seen a series of short falls interrupted by sharp rises in index. However, the rises had
been meager to offset the incessant decline in indices. Over the month, DSEX lost 233 points, which was
the worst correction in the first quarter of 2015. DS30 and DSES also accompanied the prime index in the
downfall. By the end of first quarter, DSEX eroded 6.9%, while DS30 and DSES both eroded 4.1%. The month
also continued the draught of turnover averaging BDT 2.8 bn per session as against BDT 2.9 bn per session
in February. Meanwhile, during the month ADB cut its growth forecast for Bangladesh to 6.1% from 6.4% in
their earlier forecast considering the loss incurred to the economy in the first quarter.
During March, two new scrips and one mutual fund debuted. SHASHADNIM and ZAHEENSPIN both of
the new debutants were listed in Textile sector. SHASHADNIM appreciated 20% from its offer price, while
ZAHEENSPIN rose 131% from its offer price during March. Meanwhile, almost after one and half year a new
mutual fund ATCSLGF got listed. Investors’ overall aversion to mutual funds punished the debutant. The
fund lost 26% during March sliding down to a P/NAV ratio of 62%.
Fuel & Power and Pharmaceuticals remained in the center of investors’ attraction this month, each capturing
16% of the month’s total turnover. On the other hand, Telecommunication and Pharmaceuticals soared
by 6.3% and 4.1%, respectively against the downturn in broad market. Meanwhile, Large Caps (+0.96%)
offered solace to the investors among all the cap classes.
Monthly Market Statistics l

Index Movement (March, 2015) Advance/Decline (March, 2015)
Index Point Change % Change YTD change Advanced Declined Unchanged
DSEX 4,530.5 -232.7 -4.9% -6.9%
All Category 55 261 7
DS30 1,728.5 -43.9 -2.5% -4.1%
DSES 1,103.1 -27.8 -2.5% -4.1%
Top Ten Gainers’ List (March, 2015) Top Ten Losers’ List (March, 2015)
Top Ten Gainers 31-Mar-15 26-Feb-15 % Change Top Ten Losers 31-Mar-15 26-Feb-15 % Change
RECKITTBEN 1,648.4 1,267.3 30.1% FIRSTFIN* 12.2 17.4 -29.9%
IFADAUTOS 65.3 51.1 27.8% RUPALIBANK* 41.0 54.9 -25.3%
POPULARLIF 168.5 137.0 23.0% MODERNDYE 74.5 96.5 -22.8%
ACI 535.2 436.0 22.8% ABBANK* 23.5 30.0 -21.7%
SHASHADNIM* 42.0 35.0 20.0% PHENIXINS 24.0 30.6 -21.6%
MARICO 1,431.7 1,198.2 19.5% FEKDIL 20.2 25.7 -21.4%
KPCL 64.7 56.9 13.7% BGIC 16.0 20.3 -21.2%
NITOLINS 27.0 24.0 12.5% LANKABAFIN* 31.6 40.0 -21.0%
PROGRESLIF 76.7 68.6 11.8% CITYBANK* 16.9 21.3 -20.7%
PRAGATILIF 110.1 98.8 11.4% DUTCHBANGL* 78.4 98.8 -20.6%

*% change includes post record date effects
44
Top Ten by Value (March, 2015) Market Capitalization USD in mn

Value (BDT
Top Ten (Value) 31-Mar-15 26-Feb-15 % Change
Mn)
LAFSURCEML 114.5 116.40 -1.6% 3,159.9 50,000
SPCL 184.9 188.70 -2.0% 2,877.2 40,000
GP 358.2 335.30 6.8% 2,868.7 30,000
USD in Mn
ACI 535.2 436.00 22.8% 2,707.0 20,000
SHASHADNIM* 42.0 35.00 20.0% 2,336.6 10,000
IFADAUTOS 65.3 51.10 27.8% 2,119.6 -
MJLBD 133.7 127.20 5.1% 1,956.4
Apr-13
Apr-14
Feb-13
Sep-13
Feb-14
Sep-14
Feb-15
Jun-13
Jun-14
Jul-13
Jul-14
Mar-13
Dec-13
Mar-14
Dec-14
Mar-15
Aug-13
Oct-13
Aug-14
Oct-14
Jan-13
Nov-13
Jan-14
Nov-14
Jan-15
May-13
May-14
SQURPHARMA 263.1 263.80 -0.3% 1,688.2
OLYMPIC 222.3 225.90 -1.6% 1,625.5
SAPORTL 55.1 62.00 -11.1% 1,598.4
DSE Turnover and DSEX BDT in mn
*Price of March 04 2015
Lowest P/E and Lowest P/NAV ratio

Turnover Index
DSE Turnover (BDT Mn) DSEX
Lowest P/E Lowest Price/NAV 16,000
5,000
14,000
SOUTHEASTB 3.9x NCCBLMF1 40.2% 12,000 4,000
ONEBANKLTD 4.0x LRGLOBMF1 40.3%

10,000
3,000
8,000
TRUSTBANK 4.4x EBLNRBMF 40.6% 6,000 2,000

4,000
UCBL 4.8x POPULAR1MF 40.7% 2,000
1,000
SIBL 4.9x MBL1STMF 40.9% - -

Apr-…
Apr-…
Jan-…
Nov…
Jan-…
Nov…
Feb-…
May…
Jan-…
Sep-…
Feb-…
May…
Sep-…
Feb-…
Mar…
Jun-…
Jun-…
Dec…
Mar…
Dec…
Mar…
Aug…
Oct-…
Aug…
Oct-…
Jul-13
Jul-14
FAMILYTEX 5.0x IFIC1STMF 41.4%
BANKASIA 5.0x PHPMF1 41.4%
MTB 5.2x 1JANATAMF 42.0% Market Cap Class wise Stock Movement
PUBALIBANK 5.5x TRUSTB1MF 43.2%
ALARABANK 5.5x DBH1STMF 43.4% 1.50%
0.96%
1.00%
Top Ten Market Capitalization (March, 2015)
0.50%
Top Ten Mkt Cap BDT Bn % Change 0.00%

Micro Mini Small Mid Large
GP 483.7 6.8% -0.50% -
BATBC 189.4 3.1%
-1.00% -0.92%
SQURPHARMA 45.8 -0.3%
-1.50% -1.38%
LAFSURCEML 133.0 -1.6%
ICB 82.4 -5.6% -2.00%
TITASGAS 2.3 -2.7% -2.50%

RENATA 0.8 0.6% -3.00% -2.89%
MARICO 5.1 19.5% -3.33%
-3.50%
BERGERPBL 8.2 7.0%
OLYMPIC 35.3 -1.6% Recent
-4.00%
Corporate Declaration l
AGM Record
Company name SD CD Rights
Market Statistics (March, 2015) Date date
Market Stat Unit 31-Mar-15 26-Feb-15 % Change Rupali Insurance Company Ltd. 27.04.15 08.04.15 5% 10%
BDT Bn 3,172.3 3,217.2 -1.4% United Insurance Limited 26.04.15 09.04.15 10%
Mcap (All)
USD Bn 40.8 41.4 -1.4% Apex Footwear Limited 30.04.15 09.04.15 55%
BDT Bn 2,589.7 2,661.7 -2.7% Islamic Finance and Investment Ltd. 14.05.15 09.04.15 4% 8%
Mcap (Equity)
USD Bn 33.3 34.2 -2.7% Phoenix Finance and Investment Ltd. 21.05.15 13.04.15 20%
BDT Mn 2,923.5 2,680.2 9.1%
Turnover Jamuna Bank Limited 04.05.15 15.04.15 19%
USD Mn 37.6 34.4 9.1%
*SD = Stock Dividend **CD =Cash Dividend.
45
Sector Indicators (March, 2015) l

Sector Per-
Sectoral Indicators
formance
Sector Turnover(BDT Mn) % of Total Turnover Industry Cap (Equity) Annualized PE Trailing PE Price/BV March
Telecommunication 182.7 6.3% 19.5% 24.4x 24.4x 10.0x 6.3%
Pharmaceuticals & Chemicals 462.9 15.8% 14.1% 24.2x 27.3x 6.3x 4.1%
Bank 276.3 9.4% 13.7% 6.9x 5.5x 0.8x -11.3%
Fuel & Power 453.0 15.5% 12.6% 12.1x 11.2x 5.2x 0.4%
Food & Allied 142.9 4.9% 9.4% 30.1x 29.3x 6.4x 3.4%
Cement 195.2 6.7% 7.1% 35.4x 33.3x 3.9x -2.5%
NBFI 94.7 3.2% 6.2% 17.2x 14.8x 1.5x -8.8%
Engineering 369.0 12.6% 4.2% 19.8x 19.4x 2.9x -2.0%
Textile 303.6 10.4% 3.3% 11.2x 11.3x 1.7x -7.2%
Miscellaneous 97.3 3.3% 2.7% 31.7x 35.6x 2.9x 5.0%
Life Insurance 43.1 1.5% 2.2% N/A N/A N/A 1.8%
Non Life Insurance 17.0 0.6% 1.3% 9.8x 10.4x 1.4x -12.9%
Tannery 31.8 1.1% 1.0% 25.3x 22.5x 3.9x -2.8%
Travel & Leisure 24.4 0.8% 0.9% 13.9x 12.3x 0.6x -16.3%
Ceramics 14.4 0.5% 0.8% 31.4x 33.1x 1.4x -4.5%
Services & Real Estate 110.9 3.8% 0.7% 37.2x 29.5x 1.9x -8.9%
IT 68.6 2.3% 0.2% 16.6x 18.1x 1.5x -0.9%
Paper & Printing 8.1 0.3% 0.1% 11.5x 8.4x 1.4x -8.0%
Jute 4.0 0.1% 0.0% N/A N/A 0.2x -1.0%
Mutual Funds 22.9 0.8% - - - - -
Corporate Bond 0.7 0.0% - - - - -
2,923.50 100.0% 100.0% 15.8x 14.4x 4.9x -
Weekly (Mar 22 - Mar 25, 2015) Mutual Funds Update l

Following table exhibits the Open-End Mutual Funds (8) in order of YTD change in NAV.
Initial Fund
Sl Re-Purchase Selling Effective % Change in NAV YTD Change Fund
Name of Mutual Funds Size (BDT NAV
No Price Price Date* from last week in NAV Manager
mn)
1 CAPM Unit Fund 100 101.0 104.0 29-Mar-15 106.2 2.4% 2.1% CAPM
2 ICB AMCL Unit Fund 100 256.0 261.0 29-Mar-15 255.9 0.0% 0.1% ICB AMCL
3 Bangladesh Fund 50000 108.0 111.0 29-Mar-15 107.7 -0.2% 0.0% ICB AMCL
4 ICB AMCL Converted First Unit Fund 500 10.7 11.0 29-Mar-15 10.7 -3.6% -3.6% ICB AMCL
5 ICB AMCL Pension Holders' Unit Fund 100 190.0 195.0 29-Mar-15 189.8 -5.4% -7.3% ICB AMCL
6 MTB Unit Fund 1000 9.5 9.6 29-Mar-15 9.6 -2.4% -8.6% ACAML
7 Prime Financial First Unit Fund** 200 97.0 100.0 1-Apr-15 100.1 -0.4% N/A PAMC
8 Shandhani Life Unit Fund 500 N/A N/A N/A N/A N/A N/A Alif AMCL
* For ICB AMCL, ACAML amd CAPM, effective date is the date from which repurchase price, selling price and NAV are applicable.
For PAMC and Alif AMCL, effective date is the date until which repurchase price, selling price and NAV are applicable.
** Sale and repurchase of Prime Financial First Unit Fund remains closed each Thursday.
Weekly (Mar 22 - Mar 25, 2015) Mutual Funds Update l

Following table exhibits the Closed-End Mutual Funds (40) in order of YTD change in NAV based on latest NAV/unit as on March 25,2015.
On the basis of Price/NAV, 39 Mutual Funds out of 40 were traded below their respective NAV. NCCBLMF1 and LRGLOBMF1 had the lowest
Price/NAV and both were traded at 60% discount. 1STPRIMFMF was traded at higher multiple than others, 38%premium. Last week, NAV of
9 Mutual Funds decreased, 29 Mutual Funds increased and 2 remained unchanged. On the other hand, price of 26 Mutual Funds decreased,
6 increased while 8 remained unchanged. On an average, price of Mutual Funds decreased by 1.61% while NAV increased by 0.38% from
previous week, against a 0.92% increase in DSEX over the week. In terms of price changes, 6 Mutual Funds outperformed DSEX over last week.
Among all the asset managers, AIMS outperformed most in terms of change in NAV of its funds, adding an additional 1.01% on an average
over Mutual Funds managed by it.
46
%Change of %Change in
Price (Jan Latest NAV/ YTD Change Performance against "Redemption "Fund
DSE Code Name of Mutual Funds Price/NAV Price from NAV from last
22, 2015) unit in NAV DSEX (YTD) Year" Manager"
last week week
1STICB 1st ICB M.F. 1051.9 1707.8 61.6% -4.0% 1.4% 11.4% Outperformed 2015 ICB
3RDICB 3rd ICB M.F. 225.9 355.3 63.6% -3.7% 0.8% 9.6% Outperformed 2015 ICB
1JANATAMF First Janata Bank Mutual Fund 4.6 10.7 43.0% -4.2% 0.2% 1.4% Outperformed 2020 RACE
NLI1STMF NLI First Mutual Fund 8.4 12.7 66.3% 0.0% 0.4% 1.2% Outperformed 2022 VIPB
ABB1STMF AB Bank 1ST Mutual Fund 5.6 11.8 47.5% -1.8% 0.5% 0.3% Outperformed 2022 RACE
SEBL1STMF Southeast Bank 1st Mutual Fund 8.2 12.2 67.2% 1.2% 0.1% 0.0% Outperformed 2021 VIPB
POPULAR1MF Popular Life First Mutual Fund 4.5 10.8 41.7% -2.2% 0.2% -0.2% Outperformed 2020 RACE
EXIM1STMF EXIM Bank 1st Mutual Fund 6.6 10.8 61.3% 4.8% 1.0% -0.5% Outperformed 2023 RACE
FBFIF First Bangladesh Fixed Income Fund 6.0 10.7 56.1% -1.6% 0.2% -0.5% Outperformed 2022 RACE
PHPMF1 PHP First Mutual Fund 4.3 10.1 42.4% 0.0% 0.0% -0.7% Outperformed 2020 RACE
GRAMEENS2 Grameen One : Scheme Two 10.5 18.4 57.1% -1.9% 1.0% -1.0% Outperformed 2023 AIMS
AIMS1STMF Aims 1st M.F. 26.7 36.0 74.2% -0.7% 1.0% -1.4% Outperformed 2015 AIMS
2NDICB 2nd ICB M.F. 268.5 294.5 91.2% 1.9% 0.4% -1.4% Outperformed 2015 ICB
TRUSTB1MF Trust Bank 1st Mutual Fund 4.6 10.4 44.1% -2.1% 0.0% -2.1% Outperformed 2019 RACE
GRAMEEN1 Grameen Mutual Fund One 21.9 29.7 73.8% -0.5% 1.4% -2.2% Outperformed 2015 AIMS
AIBL1STIMF AIBL 1st Islamic Mutual Fund 4.4 9.8 44.9% -2.2% 0.2% -2.4% Outperformed 2021 LR Global
EBLNRBMF EBL NRB MUTUAL FUND 4.2 10.1 41.5% -4.5% -0.2% -2.4% Outperformed 2021 RACE
4THICB 4th ICB M.F. 192.8 279.1 69.1% -5.6% -0.6% -2.6% Outperformed 2015 ICB
IFIC1STMF IFIC Bank 1st Mutual Fund 4.3 10.4 41.4% -2.3% -0.4% -2.7% Outperformed 2019 RACE
LR Global Bangladesh Mutual Fund
LRGLOBMF1 4.0 9.9 40.3% 0.0% -0.6% -4.2% Outperformed 2021 LR Global
One
5THICB 5th ICB M.F. 180.0 239.4 75.2% -4.8% 0.3% -4.2% Outperformed 2016 ICB
EBL1STMF EBL First Mutual Fund 4.7 9.7 48.6% 4.4% -0.1% -4.3% Outperformed 2019 RACE
RELIANCE1 RELIANCE ONE MUTUAL FUND 6.3 11.9 53.0% -3.1% 0.3% -4.3% Outperformed 2021 AIMS
GREENDELMF Green Delta Mutual Fund 4.2 9.7 43.4% -2.3% -0.2% -4.4% Outperformed 2020 LR Global
IFILISLMF1 IFIL Islamic Mutual Fund-1 5.9 9.3 63.2% 3.5% 0.8% -4.5% Outperformed 2019 ICB AMCL
MBL1STMF MBL 1st Mutual Fund 4.0 9.5 41.9% 0.0% -0.1% -5.0% Outperformed 2021 LR Global
ICB AMCL Sonali Bank Limited 1st
ICBSONALI1 6.1 9.4 65.1% -4.7% 0.4% -5.2% Outperformed 2023 ICB AMCL
Mutual Fund
DBH1STMF DBH First Mutual Fund 4.1 9.4 43.4% -6.8% -0.2% -5.8% Outperformed 2019 LR Global
NCCBLMF1 NCC Bank Mutual Fund 1 3.9 9.7 40.2% -2.5% -0.5% -7.8% Underperformed 2022 LR Global
Prime Bank 1st ICB AMCL Mutual
PRIME1ICBA 4.3 7.8 55.2% 2.4% 0.5% -7.8% Underperformed 2019 ICB AMCL
Fund
PF1STMF Phoenix Finance 1st Mutual Fund 4.4 7.3 60.1% -2.2% 0.7% -8.3% Underperformed 2019 ICB AMCL
ICB2NDNRB ICB AMCL 2nd NRB Mutual Fund 6.7 10.2 65.8% -6.9% 1.6% -8.5% Underperformed 2018 ICB AMCL
ICB Employees Provident MF 1:
ICBEPMF1S1 4.3 7.6 56.9% 0.0% 0.9% -9.2% Underperformed 2019 ICB AMCL
Scheme 1
ICB1STNRB ICB AMCL 1st NRB Mutual Fund 19.1 22.5 84.7% 0.0% 1.3% -9.8% Underperformed 2017 ICB AMCL
ICB3RDNRB ICB AMCL Third NRB Mutual Fund 4.1 7.1 58.1% -2.4% 0.3% -9.9% Underperformed 2019 ICB AMCL
ICBAMCL2ND ICB AMCL Second Mutual Fund 4.7 7.9 59.5% 0.0% 0.4% -10.5% Underperformed 2019 ICB AMCL
1STPRIMFMF Prime Finance First Mutual Fund 12.8 9.3 138.1% 0.0% 0.9% -12.4% Underperformed 2015 ICB AMCL
47
Investment IDLC MONTHLY BUSINESS REVIEW
Insight
Olympic Industries Limited
Olympic Industries Limited (DSE: OLYMPIC) 525
DSEX OLYMPIC
475
Current Price (March 25, 2015) 223.5 425
Rebased Price
Total Number of Share (mn) 158.7
375
325
Free Float (%) 68.5% 275

225
Forward PE* – OLYMPIC 36.5x 175

125
Trailing PE* – OLYMPIC 28.3x 75
25
Forward PE – Food & Allied Sector 29.7x
May-13
Nov-13
Nov-14
Aug-13
Aug-14
Mar-13
Sep-13
Dec-13
Feb-14
Mar-14
Sep-14
Dec-14
Feb-15
Mar-15
Apr-13
Apr-14
Oct-14
Jan-13
Jun-13
Jan-14
Jun-14
Jul-13
Jul-14
* Based on earnings of 6M, 2014
Company Profile
Financials (BDT mn) 2013 2014 6M, 2015** Olympic Industries Limited was incorporated as Bengal Carbide Limited
Revenue 7,093 7,922 4,190 in 1979. Later on, in 1982, it commenced Battery manufacturing. The
Gross Profit 1,822 2,283 1,262 company got listed in DSE in 1984 and in CSE in 1996. Back in 1996,
the company commenced its Biscuit manufacturing unit. In 2012, the
Operating Profit 931 1,185 598
company executed supply agreement with GlaxoSmithKline for the
Net Profit After Tax 615 869 486
production of Horlicks brand products. The company shifted its business
Total Asset 3,694 5,049 5,431 focus to Biscuit & Confectionary products which is currently the primary
Total Equity 1,732 2,522 2,754 revenue line. Now, OLYMPIC is a manufacturer and marketer of Dry Cell
**Year ends on June 30 Battery, Biscuit & Candy, Confectionary and Ball pen items. At present,
the company is running 7 Biscuit production lines.
Growth 2013 2014 6M, 2015
Key Revenue Drivers & Company Insight
Revenue 18% 12% 4%
In 2014, OLYMPIC’s top line was BDT 7,922 mn, where 93.3% of total
Net Profit after Tax 32% 41% 20% revenue came from Biscuit & Confectionary unit which was 91.7%
in 2013. The product line of the company contains flagship brands
Per share (BDT) 2013 2014 6M, 2015 Energy Plus and TIP. OLYMPIC’s production capacity of Battery, Biscuit
& Confectionary and Ball Pen was 117.8 mn pcs, 100,336 MT and
Restated EPS 3.88 5.48 3.06 147.6 mn pcs, respectively. But due to less demand in the market,
BVPS 10.91 15.90 17.36 the company utilized its capacity by 42%, 59% and 42%, respectively
in 2014, leaving higher growth potential in both top and bottom
Others 2013 2014 6M, 2015 line. Meanwhile, the company added some capacity to Biscuit and
Confectionary unit through its two new Biscuit lines (6 & 7) by 5,000
Gross Profit Margin 26% 29% 30% and 7,500 ton per day, during later part of 2014. Revenue from
Operating profit margin 13% 15% 14% batteries contributes 4% of the company’s top line, as battery sales
Net profit margin 9% 11% 12% growth was 2%. Additionally, Ball pen contributed 2% of the top line
ROA 20% 20% - but sales decreased by 25% than 2013.
ROE 42% 41% -
Financial Performance
Stock Dividend 50% 35% -
During 2014, Revenue grew by 12%, while bottom line growth was
Cash Dividend 10% 20% -
41%. Gross, Operating and Net Margin increased to 29%, 15% and 11%
Source: DSE; HY & Annual Reports of OLYMPIC and Research, IDLC Investments
compared to 26%, 13% and 9%, respectively in the previous year. Low
Ltd.
cost of raw material attributed to expansion in profit margins. In 6M,
2015 the company recorded an increase in Gross and Net Profit Margin
Terminologies while Operating Profit Margin shrank slightly. Revenue grew by 4%
at that period with 20% growth in the Net Profit after Tax. Recently,
Free Float : % of total shares not owned by Sponsors/ Directors, and Govt.
the company has reported net profit after of Tk. 485.78 million with
Forward PE : Based on Annualized Earnings of the latest declared quarter
consolidated EPS of Tk. 3.06 for the period of six months (July’14 to
Trailing PE : Based on Latest 12 Months Earnings Dec’14) as against Tk. 405.79 million and Tk. 2.56, respectively for the
same period of the previous year.
DISCLAIMER
This Document has been prepared and issued by IDLC Investments Limited on the basis of the public information available in the market, internally developed
data and other sources believed to be reliable. Whilst all reasonable care has been taken to ensure that the facts & information stated in the Document are
accurate as on the date mentioned herein. Neither IDLC Investments Limited nor any of its director, shareholder, and member of the management or
employee represents or warrants expressly or impliedly that the information or data of the sources used in the Document are genuine, accurate, complete,
authentic and correct. Moreover, none of the director, shareholder, and member of the management or employee in any way is responsible about the
genuineness, accuracy, completeness, authenticity and correctness of the contents of the sources that are publicly available to prepare the Document. It does
not solicit any action based on the materials contained herein and should not be construed as an offer or solicitation to buy sell or subscribe to any security. If
any person takes any action relying on this Document, shall be responsible solely by himself/herself/themselves for the consequences thereof and any claim
or demand for such consequences shall be rejected by IDLC Investments Limited or by any court of law.
48
50

Monthly Business Review - March 2015 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Monthly Business Review - March 2015 PDF

Uploaded by

Copyright:

Available Formats

Volume 11 l Issue 3 l March 2015

CONTENTS this issue

CAPITAL MAKET REVIEW

All rights reserved. No part of this newsletter may be

Bangladesh’s Cement Industry

List of prominent market players

Bashundhara Industrial 2008 Pashure Bashundhara Group 1.20

1 Limestone is crushed... 2 ...mixed with clay...

Most of the carbon emissions

5 The clinker is mixed with gypsum

Source: Global Cement Magazine

PERCENTAGE Success Factors

Environmental Impact and mitigation strategies

Top 10 Emerging Technology of 2015

Fuel cell vehicles

Precise genetic-engineering techniques

Emergent artificial intelligence

‘Sense and avoid’ drones

No Spelling mistakes - Employees are expected to do the tasks assigned to him

MasterCard Index of Women’s Advancement 2015:

Entering the Workforce Balanging Work and Life

Getting an Education Becoming Leaders

Ligion Herbal Ltd.

Owner : Ms. Tania Haque

Year of Establishment : 1995

Number of Employees : 500

MBR: Tell us something about the origin, growth and success of

MBR: What prompt you to become an entrepreneur?

MBR: Please tell us something about your firm Geeky?

MBR: Please comment on Geeky’s social advantage, organization’s activities?

MBR: What are the problems of f-commerce?

Mir Shahrukh Islam

remittance export Highest:

8% State owned Banks

12% 36% Private Banks (Other than

Foreign Banks Export

Total liquidity assets for December 14 was BDT 2268.81 billion

inflation kEY INFO

Food Inflation (point to point) Non-Food Inflation (point to point)

Mobile Payment and Near field communication (NFC)

Mobile Payment and NFC Application

ADP SPENDING Development process to slow down for political turmoil l

Bangladesh becoming a top spot for Muslim travelers l

Rank Destination Score

Natural disasters may jeopardize Bangladesh

WB to stream USD 200 million loans for rural poor people l

Selected Economic Indicators l

Item Period/As of Value/ bn Period/ As of Value/ bn +/(-)%

Foreign Exchange Reserve (USD) February'15 23.03 January'15 22.04 4.49%

Workers’ Remittances (USD) February'15 1.18 January'15 1.23 -4.54%

Revenue Collection (BDT) January'15 107.85 December'14 113.38 -4.88%

Broad Money (M2) (BDT) January'15 7385.27 December'14 7412.48 -0.37%

Reserve Money (RM) (BDT) January'15 1396.33 December'14 1391.44 0.35%

Total Domestic Credit (BDT) January'15 6709.91 December'14 6737.35 -0.41%

Credit to Private Sector (BDT) January'15 5418.82 December'14 5434.07 -0.28%

Source: March 2015, Selected Economic Indicators, Bangladesh Bank

Aug'14 2.15 Bangladesh to import 7000MW from neighbors l

Investment in handicraft to double in five years l

SHRIMP AND FISH

Rice imports goes up to four-year high l

Cotton consumption ascended on rising garment

Farmers poorly paid, shortchanged by traders l

Global demand to coerce home textile investment l