North Western University

Department of Business Administration

Assignment on: PRAN- RFL BANGLADESH LTD

Course Title: Organization Development.

Course Code: HRM-4103
Department: BBA
Batch: Summer-2017.

Submitted To:
Anisur Rahman
Assistant Professor
Department of Business Administration.
North Western University, Khulna.
Submitted By:
ID Name
20172017101 Sk Al Amin Hossan Shourav
20172001101 S.M Rabiul Islam
20172004101 Aziz UL Alam Mashuk (GL)
20172003101 Sarder Sazibul Hasan

Zanntul Madina
20152108101

20172013101 Samanta Tahnim Toa

 INTRODUCTION to PRAN RFL BANGLADESH LTD
PRAN-RFL Group is the Bangladeshi food-products corporation based in Dhaka, Bangladesh.
Founded in 1981. It is the largest food and Nutrition Company of Bangladesh; PRAN-RFL
Group is located at PRAN-RFL Centre, 105 Bir Uttam Rafiqul Islam Ave, Dhaka, Bangladesh. It
is the largest exporter of processed agro products with the compliance of HALAL & HACCP to
more than 100 countries. The Company's principal activity is the manufacture and sale of Juice,
Snacks, Soft Drink, cakes and dairy products. They are currently operating business in South
Asia, Africa, North America, Europe, and Middle East.

Industry Food processing

Founded 17 March 1981

Founder(s) Maj Gen (Retd.) Amjad Khan Chowdhury

Headquarters PRAN-RFL Center, 105, Progoti Sarani, Middle Badda, Dhaka 1212, Bangladesh
Area served South Asia, Africa, North America, Europe, and Middle East

Key people Maj Gen (Retd.) Amjad Khan Chowdhury (CEO)

Revenue Increase ৳ 123.3 billion (2012)

Employees 58,000

 PRAN RFL CONTRIBUTION

PRAN-RFL Making a positive contribution to society through their brands, the commercial
operations and relationships, their voluntary contributions to the community and through their
wider engagement with Bangladeshi society. They are creating a stronger a competition not only
in Bangladesh but also in Asia south Asia by manufacturing Juice, drink, beverage,
confectionery, culinary, snacks, biscuits, bakery, and dairy, Apartment Building, Beverage
Distributor, Elevator Service, Food Products Supplier, Foundry, and Plastic Bag Supplier.

 PRAN-RFL Brand
PRAN-RFL is currently producing more than 200 food products under 10 different categories.
Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery,
Biscuits & Dairy Elevator Service, Foundry, Plastic Bag Supplier globally. However many of
these are now Internationally recognized that can be found in South Asia, Africa, North
America, Europe, Middle East , almost entirely in two categories-

• PRAN - The largest processors of fruits and vegetables in Bangladesh.

• RFL – Cast iron, PVC and plastic items.
• Property Lifts – Lift, elevator generator
• ELEVATOR service Plastic Bag Supplier globally.

The main development of PRAN-RFL Company

Agricultural Marketing Company Limited (AMCL-Pran) has witnessed a 63 percent in its sales
in the last six accounting years.

Listed with the share market, the company has provided 32 percent cash dividend to its
shareholders in each of the last six years.

In keeping with that trend, the shareholders of the company on Saturday approved a 32 percent
cash dividend at the Annual General Meeting of the company for the 2018-19 accounting year.

Company Chairman Ahsan Khan Chowdhury, Managing Director Eleash Mridha, Directors
Uzma Chowdhury, Sabiha Amjad, Independent Director Md Abdus Salam, Chief Financial
Officer Mohammad Yamin, Director (Marketing) Chowdhury Kamaruzzaman, and Director
(Accounts) Choudhury Atiur Rasul , and Company Secretary Abdur Rahman, among others,
were present at the meeting.

 Products

AMCL-Pran has been producing various food items such as juice, drinks, mineral water, soft
drinks, ice pop, mango bar, etc.

The total sale of the company in the fiscal year 2013-14 was Tk172.72 crore and Tk282.18 crore
in the fiscal year 2018-19, a 63 percent increase in the last six years.

However, the net profit of the company has not increased accordingly. Its net profit was Tk5.55
crore in the fiscal year 2013-14 and Tk5.84 crore in the fiscal year 2018-19.

"The production cost increased in the last six years. The cost of raw materials for packaging also
increased substantially." Ahsan Khan Chowdhury, chairman of AMCL-PRAN told the
shareholders.

"The management reviewed the wages of the workers according to the existing labor law and
increased wages due to inflation in food items, which has impacted the production cost
adversely. So, we failed to achieve more net profit growth," he added.
  Exports

In the last couple of years, the company emphasized export revenue. Due to natural disasters and
some unavoidable circumstances the company was not able to collect expected revenue from
exports. In 2018-19 accounting year, exports of the company declined after recording growth in
the previous three consecutive years.

In the 2013-14 fiscal year, the export revenue of the company stood at Tk34.82 crore. In the next
four fiscal years, the company achieved 267 percent growth from export revenue which stood at
Tk127.87 crore. In the last fiscal year, export dropped by 31 percent to Tk88.22 crore.

The chairman of AMCL-PRAN said the management had taken necessary measures to boost the
foreign earnings in upcoming days.

 Share performance

The company has Tk8 crore paid-up capital. It was listed with Dhaka and Chittagong Stock
Exchanges in 1996.

On Thursday, the closing price of its share on the Dhaka Stock Exchange was Tk174.20. In last
one year, the maximum share price of the company was Tk280 and the minimum price was
Tk171.20.

“I want to see Pran products in every supermarket in the world,”

Ahsan Khan Chowdhury, deputy managing director of Pran-RFL Group.

The Challenges of PRAN-RFL Company

At present business is very much complex because of even changing customer choice,
preference, taste etc. and for the technological and high competition. As globalization is on the
competition is spread an over the world. So every organization should be international standard.
Every company or firm wants to make their loyal customer group. Each firm would like to gain
maximum profit through consumer’s satisfaction. Today each company has to face so much
competition. To perform all marketing tasks marketer are to faces. Two types of environment,
one is macro or external and another is micro or internal environment.
We know that juice pack is a consume goods. It is classified as shopping goods. People usually
drink juice for the refreshment and to reduce tiredness. In all seasons juice is widely consumed
by the customers. But the demand becomes high in the summer. Juice is tasty and nutrition’s.
There is a wide demand and high prospects for the juice products. PRAN juice pack is one of the
items to meet this demand.

This study tries to focus on marketing problems and prospects of PRAN juice pack. PRAN juice
pack is one of the popular brands in Bangladesh and also in international market recently. It is
manufactured and marketed by Agriculture Marketing Company Ltd. (AMCL) of PRAN group.
PRAN juice pack is selling mainly local market (all over Bangladesh) already it is exporting in
Europe, America and Middle East also in India. There is much higher demand for locally
produced juice pack in the country than present domestic supply. We see that there is a shortage
of PRAN product in our local market. So Bangladesh imports some juice from Pakistan, India
and other countries. In this situation AMCL has to face few problems as well as meeting other
competing juice company. AMCL has few problem areas such as distribution system,
Government policy, and import system and wholesale/retailers sector. In the true sense,
marketing management concept is not being implemented in the existing juice marketing system.
There is no combination among product, price place and promotion.

In spite of few problems, there is increasing demand for PRAN juice pack all over the country.
So we can say that PRAN juice pack has a bright prospect in the country. Undeniably juice pack
of AMCL would be considered as the most potential juice to give our infrastructure greater
longevity. So company should take to proper action for the fulfillment of the target of juice pack
products of AMCL.

Profit or Losses of PRAN- RFL Group Company

RFL's EPS was Tk2.79 for nine months (July'19-March'20) as against Tk3.05 in the same period
of previous year.

Rangpur Foundry Limited (RFL), One of the sister concerns of PRAN-RFL Group, a local
industrial conglomerate, has reported earnings per share dropped by 29% in third quarter
(January-March) of the current FY20 compared to same period of the previous year.
The earnings per share (EPS) of RFL, dropped to Tk0.61 as against Tk 0.86 for the same period,
as per an official disclosure posted by the company on Dhaka Stock Exchange website on
Monday.

According to un-audited financial statement, RFL's EPS was Tk2.79 for nine months (July'19-
March'20) as against Tk3.05 in the same period of previous year.

The net asset value (NAV) per share was Tk 27.41 as on March 31, 2020 and Tk 26.92 as on
June 30, 2019.

The company was listed on the DSE in 1999. The share price closed at Tk119.30 on Monday.
The company disbursed 23% cash dividend for three years from 2017 to 2019.

The EPS is the company's profit allocated to each share of a listed firm, indicating a company's
profitability.

However, analysts have said the unaudited EPS of a company often does not reflect actual
financial health of a listed firm, but indicates profitability that influences investors towards their
long-term investment plans.

Conclusion

PRAN –RFL is one of the leading companies in Bangladesh. We had the opportunity to view this
company. During this time, we got an opportunity to observe the overall activities of managing
retail environment.

Finally, we would say that this view at PRAN –RFL has increased our practical knowledge about
a manager and how they applied different approach in different situation.