Assignment:

Industry Analysis

Course Title:
Strategic Management

Course Code:
MGT 490 (Section 03)

Course Instructor:
Prof. Dr. Lt. Gen. (Ret.) Mohd. Aminul

Submitted by:
Abu Sayeed Md Ashraf Alif (2030524)
Mir Oishe Imam (1830393)
Fatema Tuj Zahura (1610535)
Farhan Eshraq (1720446)
Mahbuba Mim (1520380)

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 Table of Content
Serial Content Page No.
1. Executive Summary 3
2. Background of BSRM 4
4. Evolution & Journey of BSRM 4-5
5. Vision 5
6. Mission 5
7. Objectives 5-6
8. Values 6-7
9. Porter’s 5 Dimensions 7-9
10. BSRM SWOT Analysis 10-11
11. Financial Analysis of BSRM 12-20
12. Current Market Share of BSRM 20
13 BSRM Current Scenario 21-22
14. Differentiation in terms of Cost Leadership and Cost Comparison 22-23
15. Differentiation in terms of focus with the same type of company. 23-24
16. The Steel Industry in the Nation 24-26
17. Conclusion 26
18. References 27

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 Executive Summary
This report first looks at the background of the company we have chosen which is BSRM. Then
we have looked at the history and the evolution of the company from its inception to now at the
present time. Then the report looks at the vision statement, the mission statement, the objectives,
the values of the company. Then next part of the report looks at the Porter’s 5 Dimensions with
the company and the steel industry in general and the various dimensions. Then we look at the
SWOT analysis of the company and after that we have conducted some financial analysis of the
company from the year 2016 to 2020 which is for the last 5 years. Then we look at the current
market share of BSRM. Then the next two parts about differentiation in term of Cost Leadership
and Cost Comparison where we compare how BSRM charges pricing and how everyone else
does and in the latter part it looks at prices charged by the company in comparison with the
prices of the other rivals that sell their steel products as well. Then there is the differentiation in
terms of focus which highlights the innovation, the differences and the unique aspects of BSRM
which have given the brand so much power and that is why BSRM is at the top of the steel
industry. Lastly there is an outlook of the steel industry in terms of the status and also looks at
the companies, the industry during COVID and more. Lastly there is the conclusive remarks
which will be followed by the references used to gather information.

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 Background of BSRM
Bangladesh Steel Re-Rolling Mills Ltd., or BSRM, is a steel production company situated in
Chittagong, Bangladesh. It is the nation's largest maker of building steel. In Nasirabad,
Chittagong, in 1952, five Indian businessmen named Akberali Africawala, Alibhai Africawala,
Taherali Africawala, Abdul Hussain Africawala, and Rajabali Africawala established the first
BSRM steel re-rolling plant in the then-East Bengal. The operation back then began with with
four hand-operated rolling mills. Later on in 1996, the company set up and commissioned their
plant which was used for billet casting with the name of "Meghna Engineering Works Limited".
Many years later again in 2002, the company took over an a new firm and that was as is known
now to be as BSRM Steels Ltd and it was opened up to run a turnkey re reolling mill and the
building process of this plant began in the year 2005 in Fouzderhat, Chittagong. It cost 3.7
billion Bangladeshi taka to finish. With an annual capacity of 375,000 metric tons, the factory
entered commercial operation in April 2008. The Dhaka Stock Exchange and the Chittagong
Stock Exchange both listed BSRM Steels Ltd on January 18, 2009.BSRM Ltd, the holding
company, owned around 45 percent of the shares in BSRM Steels Ltd as of 2019. (BSRM
Wikipedia)

Evolution & Journey of BSRM

The evolution and development of BSRM began in 1952 with its first steel re-rolling mills and
then later on in 1984 they introduced the TORSTEEL bars to everyone in the industry. 3 years
later the company then brought out High Strength Deformed reinforcing steel bars conforming to
ASTM 615 Grade 60 for the construction industry.. In 1996 the company then went on to
commission Meghna Engineering Works Limited which at that time was the biggest billet
making plant. Later on in 2006 the company established the use of micro reinforcement wires,
below 8mm, for low cost rural construction. 2 years later in 2008, the company started their
production of Grade 500 steel bars which they called as Xtreme500W. The following year the
company was finally listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange. In
2010, the company then commenced production of their biggest billet making plant in the nation.
A couple of years later, the company increased their production capacity to 600, 000 MT and

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then in 2013, they received the largest syndicated loan facility arranged for a private company in
the country that was valued at BDT 5908 million. In 2015, the capacity of the steel production
rose even further to 700000 MT per year and also at that time a new product branded BSRM
Maxima was introduced. On the other hand Bangladesh Steel Re-Rolling Mills had increased
their production from 120000 MT to 450000 MT. Then Bangladesh Steel Re Rolling Mills was
also listed in both the CSE and the DSE. In 2016 and 2017, the company introduced EPOXY
coated bars CENTURA and ULTIMA. Then they also hit another big milestone as sales cross
one million ton. In 2017 the business Started to set-up a state-of-the-art Galvanized Iron (GI)
wire and Low Relaxation Pre-stressed Concrete (LRPC) wire manufacturing plant and after that
the they also established Business Intelligence (BI) Analytics Tool for BSRM Group which went
live in May 2018. Then during 2018 and 2019, the Second melting unit of BSRM Steels Limited
has successfully announced its commercial production on April 16, 2019 with a capacity of
430,000 MT billets per annum. lastly in the period from 2019 to 2020, the company Introduced a
new product called “FastBuild & SecuRing” - customized Steel solutions.

Vision
 Maintain leadership position in the steel industry by producing the best quality steel
products, continuously enhancing customer satisfaction and becoming a reliable business
partner of Customers and Suppliers.
 Be an employer of choice, with a focus on nurturing talent and developing future leaders
of the organization.
 Protect the interest of shareholders through sustainable growth and value creation.
 Preserve the trust of all stakeholders by adopting ethical business practices.
 Support the society through Corporate Social Responsibility initiatives.

Mission
The Mission of the Company is to make life of the people secured and safe by providing
quality products at a reasonable price and to be a partner in the nation building activities

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 Objectives
 To delight external and internal customers at every stage of interaction with them by
really understanding their needs, offering them own most excellent products and
services
 To ensure steady improvement in the quality of products and services, efficiency of
processes and profitability of business
 To set benchmarks through their products, processes and people

Values
 Sustainable Growth
Consistent improvement in the quality of products and services, efficiency of processes
and profitability of business; continuously anticipating and responding to the changing
business and environmental needs using innovation; sharing knowledge and experience
within the organization.
 Quality
Create products and services valued by customers; constantly improving processes
through innovation and adopting best practices; reducing wastage; minimizing costs;
investing in systems and technology and developing the people to build a highly capable
workforce.
 Reliability
Be the preferred business partner of customers and suppliers by offering quality products;
providing best and timely service before, during and after business transactions and
honoring all commitments despite challenges.
 Trust
Preserve the faith and goodwill of all the stakeholders – customers, shareholders,
suppliers, employees, regulatory bodies and society - by adopting ethical and transparent
business practices, being fair and honest in all dealings and building robust governance
and risk management processes.
 Leadership

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 Be a role model, setting benchmarks through the products, processes and people;
constantly moving ahead of competition by differentiating the products, innovating the
processes, increasing the market share and nurturing talent to develop leaders within the
organization.
 Social responsibility
Acknowledge and fulfill obligations towards the society by undertaking initiatives for the
general uplifting of the society, building capability and making facilities available to the
underprivileged.
 Customer Satisfaction
Delight external and internal customers at every stage of interaction with them by truly
understanding their needs, offering them best products and services, treating them with
respect and actively seeking and acting on their feedback

Porter’s 5 Dimensions
Porter’s 5 dimensions or more commonly known as Porter's Five Forces Framework is a
framework that has been used and is still used by small and large businesses alike to analyze the
competition that a business or organization faces in general and it takes into account five forces
that help to understand the level of competitive intensity and these five forces are
 Threat of New Entrants
 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Availability of Substitutes
 Competitive Rivalry

Threat of New Entrants

In terms of threat of new entrants, it is pretty medium and this is because of several reasons. For
instance firstly the main threat is the need for very high capital requirement since the steel
business requires very heavy, large and specialized machinery which not all businesses and those
wishing to start can gain or afford and even other than that capital is required for the hundreds if
not thousands of employee needed to run a steel plant in a traditional sense. Another threat is that
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the large steel businesses that exit including BSRM all have to donate some certain aspect of
their funding towards corporate social responsibility and also have to invest in corporate social
responsibility activities and that is something a new business with a small budget cannot do and
cannot reach all the people. The steel businesses in the field consists of various types of
economics of scale such as purchasing economies of scale, technological economies of scale, etc.
Besides what this means is that the businesses there including BSRM is able to afford and enjoy
various discounts and benefits from their large productions which helps them keep their average
costs low which help theirs their revenue and ultimately their profits to increase but small firms
are not in a position to enjoy these sorts of economies of scales. Other threats of new entrants
include how there is very minimal differentiation in terms of products that each business in the
steel industry provide, which means that unlike those wishing to enter the market have a wholly
new kind of steel or something then it would be hard to survive against the big names and that
also means the customers can easily switch over to another business instead of BSRM.

Bargaining Power of Suppliers

The bargaining power of suppliers is low and has always been low and there is good reason for
that. First and foremost the cost of switching suppliers is no issue and it should also not be an
issue because the products and services provided by all the businesses in the steel industry are
pretty similar. Also other than that BSRM and the other rivals have been trying to increase
backward linkage in the value chain and produce their raw materials by themselves and this
would be great news had it only been BSRM that was planning these but the other rival
organizations have been planning and many are implementing this as well which has led and can
lead to instances where the price of steel will drop and this will mean that BSRM will have to
reduce their prices even further which might cut into their profits too. Other than that it is also
quite hard to get a grip on buyers who switch from steel to aluminum or plastic products.

Bargaining Power of Buyers

The bargaining power of the buyers has always been quite moderate or medium and this is
simply because the products provided by the various steel businesses have applications in many
industries such as gas, oil and automobile, shipping, consumer power and durables but there is a

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catch in the sense that quantity of reliable sellers is significantly low and also there is another
aspect which is that the products are all to some extent pretty standard in terms of quality which
is why the prices are so competitive between all the firms in the industry.
Therefore the task falls on each firm to do what they can to attract customers to buy their
products which so far BSRM has been able to do very well through their great marketing and
constant top quality.

Availability of Substitutes
It should be remembered that the availability of substitutes is also pretty high which not a good
sign is for BSRM or for any of the other companies. This is because it means that if anyone
provides even a slightly better service of if any other provider provides steel products and
services at cheaper rates than BSRM would lose a good deal of customers. Also another point is
that even though the consumption and application of aluminum has been rising in the sectors of
automobile and consumer durables, it still does not pose any massive problem to steel businesses
as steel is such as product that is still needed for various important reasons. It is just not possible
for steel to be filly replaced by aluminum, plastics, and their alloys in large quantities but
alternatives are being found more and more which has led to the construction of many water
funnels that are made of PVC pipes and PVC tank which are plastic

Competitive Rivalry
When it comes to this last dimension, it could be said that competitive rivalry is either very high
or very low. It could be said as being low in the sense that despite there being more than 400 plus
firms as of 2018, half of the market is served and controlled by just 5 companies and the big
company here is none other than BSRM. It could be said that the rivalry is very high because
there is intense competition from abroad, more specifically from international exporters in China
where steel is produced at chapter rates. There is also intensive rivalry between the main
businesses in terms of advertising costs, marketing campaigns and constant spending in research
and development to come up with mote innovative products and in this regard again, BSRM is in
the prime position. This innovation and constant work towards research and development has led
to increased market share, increased brand loyalty and constant profits and success for BSRM.

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 BSRM SWOT Analysis
Strengths
 The company is the market leader and holds around 12 percent of the entire market share
 They are very well known and have built a great reputation overseas and also at home
 The company has around 300 dealers and are able to sell and cover the entire country
with their various sales depots in many regions
 The company uses only the best state of the art technology
 The firms is known for being extremely reliable with their very high quality steel
products coupled with the very quick and standardized prompt service before and after a
transaction is done which attracts and keeps suppliers and customers happy.
 The amount of equipment and technological resources that are available with the
company is always evolving and is leagues ahead of other companies and an instance of
this is how the BSRM Xtreme 500w was thought up by consultants from Germany called
Badische Stahl Engineering (BSE) and also when it comes to the provision of metal
industry equipment and plants, the company receives most of it from Danieli Group, Italy
which is one of the big 3.
 The workforce of the organization is one of the most lucrative aspects of the entire
company because they work with a strong cohesion and bond with each other, enjoying
each other’s company and helping the organization achieve its goals.
 BSRM also has a very strong product distribution lineup with 300 plus dealers all over
the nation and all of these dealers help customers and businesses get BSRM products.
These dealers also have various sales and supply depots in regions such as Dhaka,
Comilla, Borga, Shylet, and Khulna, etc.
 The organization has a very brand image due to their strong marketing as almost
everyone is aware of their products and their success.
 BSRM has also tried to and is constantly trying to increase the competitive edge by
decreasing their dependence on raw materials from other sources so the organization is
trying to increase its backward linkage work and it has made progress by founding the
BSRM Iron and Steel Co Ltd which happens to be the biggest plant in the nation that
makes billet. The company has also decided to acquire the total ownership of BSRM Iron
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 and Steel Co Ltd by buying out 95 percent of total shareholdings from existing
shareholders of the company.
Weaknesses
 The main weakness has to be how the company has taken way too many loans from
various banks as it desperately needs their help to run and even their profits go back as
repayments
Opportunities
 Despite their falling profits, the company is becoming more and more popular and stands
to gain more market share in the near future
 The company is also able to export to various nations which many other rivals are not
able to and are therefore able to secure customers and make them loyal.
 The demand for their products is constantly on the rise, more specifically their 500 grade
rods which means chance for increased profit and market growth
Threats
 There are many competitors who are also doing great such as RSRM, GPH Ispat, etc
 The current state of the economy is not so good with the pandemic and the lockdowns
halting economic growth from reaching great heights and that added on with the 2008
global recession and the impacts of that, everything has actually become much more risky
with steel sales falling by half of what it was before the global recession.
 Due to the COVID pandemic, the issue of labor unions has arisen again and the company
may have to pay more wages and salaries.
 There is a constant and ever growing power crisis which is causing the business to
operate at half capacity or not full at the very least since gas and electricity are not always
available

- TrippleEe. (2016).

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 Financial Analysis of BSRM

Net Profit Ratio

Year 2016 2017 2018 2019 2020

7.61 4.49 3.73 2.83 1.92

8 7.61

5 4.49

4 3.73

3 2.83

1.92
2

0
2016 2017 2018 2019 2020

The Net Profit Ratio is a profitability metric in which net profit is divided by total revenue to
arrive at a valuation. In general, the higher the number, the better, and BSRM is in difficulty
because their net profit ratio has been steadily declining, from 7.61 in 2016 to 1.92 in 2020.

The business should therefore implement some cost cutting or try to increase revenue by better
promotion or by lowering prices through efficient production where costs are decreasing.
(BSRM Annual Report)

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Return on Equity (ROE)

Year 2016 2017 2018 2019 2020

14.01 14.66 14.06 8.27 3.47

16
14.66
14.01 14.06
14

12

10
8.27
8

4 3.47

0
2016 2017 2018 2019 2020

Divide Net Profit after Tax or Net Operating Income by Shareholders' Equity or Total Equity to
get the Return on Shareholders' Equity. The larger the amount, the more effectively the business
is able to use the funds raised through shares to contribute to overall profit, but unfortunately, the
quantity of ROE has been declining, and at an alarming rate.

In the beginning in 2016, the ROE was 14.01 and then it rose by a small percent to 14.66 but
after that the downfall started and it continued all the way to 2020 where the ratio is now at a
mere 3.47 which means the business is not properly using the finance from shareholders. The
company has to manage these finances better and use them towards revenue generation. (BSRM
Annual Report)

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Current Ratio

Year 2016 2017 2018 2019 2020

1.13 1.08 1.06 1.15 1.11

1.16 1.15

1.14 1.13

1.12 1.11

1.1
1.08
1.08
1.06
1.06

1.04

1.02

1
2016 2017 2018 2019 2020

Divide current assets by current liabilities to get the current ratio. Normally, any current ratio
greater than one is regarded as a positive indicator, indicating that the company can pay off all of
its short-term loans without difficulty.

In the beginning it was bad for BSRM as the current ratio was continuously falling as it did from
2016 to 2018 but after that the valuation rose to 1.15 which was a good sign but then again the
ratio fell again to 1.11. Even though the ratio is well above 1, the ratio should never fluctuate this
much and this indicates the business is not so effective at handling their current assets and
keeping their short term debt at a low. (BSRM Annual Report)

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Total Asset Turnover

Year 2016 2017 2018 2019 2020

0.60 1.17 1.06 0.93 0.60

1.4

1.2 1.17
1.06
1 0.93

0.8

0.6 0.6
0.6

0.4

0.2

0
2016 2017 2018 2019 2020

Total Asset Turnover is computed by dividing net sales by total assets or average total assets,
and it indicates how much of a company's assets contribute to revenue. To put it another way,
how much equipment, machinery, factories, and other present assets assist the company generate
more revenue?

Except for 2017, the status of the total asset turnover has not been so fair for BSRM and the ratio
has taken a dive every year from 2017 when it fell to 1.06, then it fell to 0.93 and it finally ended
at 0.6 in 2020. Therefore the business needs to use its assets better and should either dispose of
some assets or should lease some to raise more finance. (BSRM Annual Report)

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Inventory Turnover

Year 2016 2017 2018 2019 2020

3.12 4.23 3.34 4.07 .2.61

4.5 4.23
4.07
4

3.5 3.34
3.12
3
2.61
2.5

1.5

0.5

0
2016 2017 2018 2019 2020

The number of times during the fiscal year that a company's supplies or inventory are exhausted
and must be replenished is referred to as the inventory turnover ratio. The higher this ratio is, the
better it is for the business because it means that customers and other groups demand more and
are constantly consuming the goods produced; on the other hand, the lower the value, the worse
it is because it means that not enough sales are taking place, resulting in storage costs.

As indicated from the above chart, the situation is quite unstable for BSRM but it has been good
for the last 4 years as the turnover ratio has been in the vicinity of 3 to 4 percent but the situation
worsened in 2020 when the value came to 2.61. (BSRM Annual Report)

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Interest Cover Ratio

Year 2016 2017 2018 2019 2020

17.75 5.94 3.14 2.76 1.97

20
17.75
18

16

14

12

10

8
5.94
6

4 3.14 2.76
1.97
2

0
2016 2017 2018 2019 2020

Interest Cover, also known as the Times Interest Earned Ratio, is computed by adding both
operating revenue and depreciation, then dividing the total by Interest Expense. In this case, the
ratio effectively indicates how many times the company can pay off all of its creditors' and other
debts' interest.

Therefore the higher the valuation the better as this means that the business is ready and is able
to pay back all the interests but having to high off a figure means too much of finance is lying
idle which could be the said was the case in 2017 when the ratio was at 17.75 times. However
things became much worse as value sharply fell to 5.94 in 2017 but it did not stop there and the
ratio kept on falling and as of 2020, the figure is at 1.97 which is worrisome. (BSRM Annual
Report)

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Debt to Equity Ratio

Year 2016 2017 2018 2019 2020

1.72 1.93 1.73 1.57 1.61

2.5

2 1.93

1.72 1.73
1.57 1.61

1.5

0.5

0
2016 2017 2018 2019 2020

Debt to Equity Ratio is a ratio that looks at how much of the business or company’s funding and
financing is made of debt from others and is made of the equity generated from shareholders. It
is calculated by simply dividing total debt by total equity and here the valuation should always
be as low as possible or at the very least should not ever go too high as this means the business is
using to much debt instead of their equity which we already know and can see from the poor
performance on the quick ratio.

However the ratio has been falling after the one time increase in 2017 but it rose again in 2020 to
1.61 from 1.57 in the previous year. BSRM should try to handle their debt better and should put
the finance from their shareholder’s equity to better use and invest in other places, businesses
and assets. (BSRM Annual Report)

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Earnings Per Share

Year 2016 2017 2018 2019 2020

3.84 4.98 4.79 4.60 1.97

4.98
5 4.79
4.6

4 3.84

1.97
2

0
2016 2017 2018 2019 2020

Earnings per share, or EPS, should always be as high as possible because it simply shows the
earnings of a stock and benefits both investors and the company. Total earnings are divided by
the total number of stockholders to arrive at earnings per share.

On the other hand, we can see that the EPS has dropped from 3.84 in 2016 to a meager 1.97 in
2020. This could be due to poor earnings or a large number of stockholders, but the problem
from the preceding ratios can be understood here because profit is low, which means total
earnings are low as well. (BSRM Annual Report)

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Price Earnings Ratio

Year 2016 2017 2018 2019 2020

24.46 18.25 14.63 12.68 17.02

30

24.46
25

20 18.25
17.02
14.63
15
12.68

10

0
2016 2017 2018 2019 2020

The PERS ratio is used by investors, the firm, and stakeholders to understand a company's
valuation. If a company has a very low Price Earnings Ratio, it is not bad, but it is also not good
since it leads investors to believe there is no sense in investing in the company because the high
ratio encourages investors to give the company more value and consider it to be more valuable
and successful.

Despite the fact that the firm has been performing poorly for the past few years, the PERS ratio
has climbed, which is a positive indicator, but it is still nowhere near the number at the start of
the 5-year period, when the ratio was 24.46. (BSRM Annual Report)

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 Current Market Share of BSRM
Current market share of BSRM along with other brands are shown in the pie chart below

BSRM AKS KSRM GPH Ispat Rahim Steel RSRM Others

20% 19% 8% 7% 4% 2% 41%

Sales

20
BSRM
AKS
41
KSRM
GPH Ispat
Rahim Steel
19
RSRM
Others

2 8
4 7

This is the current market share of some of the top brands and BSRM as well for the year, 2020
and this is a sign of just how well the business is doing even now during the coronavirus.
(NewVision, 2020)

BSRM Current Scenario

The company has been doing great in being able to venture and break into new markets as they
have ventured into South Africa and many other nations to the point that they have registered 45
products in international markets. . The company has also introduced a state-of-the-art
Galvanized Iron (GL) wire, LRPC wire, Welding Electrode and CO2 wire manufacturing plant
in the name of BSRM Wires Limited is under construction. as well as a new steel plant to raise

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the capacity by 5 lac M. Ton MS Products per annum in the name of BSRM Steels Limited. The
company is also able to and is enjoying an unbelievable 197 percent profit was achieved as of
this June despite the COVID situation. This huge profit also led to their stocks to do even better
in the share markets. According to Shekhar Ranjan Kar, the CFO, they were able to achieve this
great feat thanks to lower costs and by increased revenue. The company is doing great even now
and has been able to hold on to their market share and has been increasing and now the market
share stands at 25 percent of the entire market. (Star Business Report, 2021) & (BSRM Annual
Report)

Differentiation in terms of Cost Leadership and Cost Comparison

Cost leadership refers to the organization that has been able to establish or develop a competitive
advantage by having the lowest costs in the entire industry and hence this means charging the
lowest prices of them all because the company or industry is extremely efficient in terms or
production and in all toehr regards but it must be noted that BSRM is not a Cost leadership
example and instead it can be said that the company charges a lot more and is more towards price
skimming and for good reason, even though they charge more than others, their quality and
brand image back that price up so people and customers are always willing to buy more of the
products. Cost Comparison here refers to the costs of the products provided by BSRM in
comparison to the other products provided by the other rivals in the market. Here are the cost
comparison tables and these will indicate just how much more BSRM charges for their products.

But first let us look at all the products that BSRM provides

 FastBuild & SecuRing

 Xtreme B500DWR
 Xtreme B500CWR
 Centura
 Ultima
 Maxima
 Xtrong

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  Square Bar
 BSRM Slag

Here are the selling prices of TMT bar manufacturers in Chittagong before and after the
Lockdown

Company Before Lockdown Current Price

BSRM BDT 60000 BDT 55000
Abul Khair Steel BDT 58000 BDT 53000
KSRM BDT 58000 BDT 53000
GPH BDT 56000 BDT 53000
Golden Steel BDT 53500 BDT 52000

Before Lockdown Current Price

62000
60000
60000
58000 58000
58000
56000
56000 55000

54000 53500
53000 53000 53000
52000
52000

50000

48000
BSRM Abul Khair KSRM GPH Golden Steel
Steel

- Hasan, M.M (2020). & TBS Report (2020)

Differentiation in terms of focus

Differentiation in this regard refers to how the business or an organization is different than the
other rival companies in an industry or field and that can be achieved by several factors from
23 | P a g e
price differences, different features provided, customer service, the brand image of an
organization and many more factors. With that being said the steel industry in our nation is one
where there is not much differentiation between the products and there really is not much
changes in price but the company does have a significantly strong brand image and is the most
differentiated steel business in the organization. According to the managing director, the
company has been able to differentiate itself from others in many ways. For instance the brand
has been able to enjoy such a strong position so far because of constant research and
development initiatives done by the organization which have led to creative construction
solutions. The organization has been trying to do things differently ever since the 90s and it had
done so by introducing Torsteel and then the organization later went on to introduce more types
of steel which it had first introduced again the market and these consisted of introducing 60-
graded deformed bar, TMT500W CWR and TMT 500W DWR. The company were also the first
ones to bring in epoxy-coated bar for construction in areas where there is significant saltwater.
The organization was also the first to establish construction solutions and service center called
FastBuild Service which specifically caters to large projects and even individual house builder
and smaller clients. Other than the organization is most notably famous for its marketing and
branding and this is because it was the first to introduce this concept in the nation and on top of
that they were also the ones who first established their own distribution network of retailers all
over the nation. Lastly one other cool detail is that the company is also the earth’s biggest
producer of steel through the use of the electric induction furnace and the EAF routes but the
company has also innovated this method of producing steel in such a huge and commercial scale
and how the company produces standardized quality goods. (Taylor, 2021)

The Steel Industry in the Nation

Bangladesh's steel sector has created a significant contribution to the development of the nation's
economic infrastructure by supplying long steel products such as rebar, angel, beam, and
channel. Long steel demand has increased significantly in recent years, with 7.5 million MT of
rebar produced now compared to 2.5 million MT a decade earlier. Steel consumption per capita
is now 45 kilograms, up from 25 kilograms in 2012; by 2022, per capita steel consumption is
predicted to be 73 kilograms. Despite decades of fast growth, Bangladesh's steel industry now
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faces a significant threat from the coronavirus epidemic, which has killed over a quarter of a
million people worldwide. BSRM and AKS, two of the biggest steel companies, have already
erected efficient state-of-the-art induction and electric arc furnaces to meet the expanding
demand. Other rivals, such as PHP, GPH Ispat, and KSRM, are also increasing their
manufacturing capacity to meet the demand for various steel products that were previously
imported. Despite the major steelmakers' enormous expenditure, local manufacturers are able to
produce 90% of the minimum total billets. Because some firms make billets for their own re-
rolling mills and a vast handful of small to medium rolling mills lack the billet-producing
capabilities, the nation continues to import billets. In recent times, billet imports have dropped
dramatically. Approximately 1.6 million MT of billet was imported in 2013-2014. This figure
has dropped to only 0.5 million MT in the 2018-2019 fiscal year. Bangladesh now has around
300 steel mills, the bulk of which are manual mills. Approximately 100 mills are currently not in
operations. The quantity of automatic and semi-automatic mills has expanded correspondingly in
recent years. Local firms have been obliged to update their production facilities due to increased
demand for graded products. Some minor mills have formed joint-venture firms to transition
from manual to semi-automatic milling in order to remain competitive. The steelmakers, BSRM
and AKS currently provide nearly 40 percent of the nation’s demand and following them are the
other two next powerful rivals which are KSRM and GPH. (NewVision, 2020)

Here are all the steel businesses in the nation

Bangladesh Steels Re-Rolling Mills Ltd (BSRM), Ratanpur Steel Re-Rolling Mills Ltd (RSRM),
Kabir Steel Re-Rolling Mills Ltd. (KSRM), Rahim Steel Mills Co. (Pvt) Ltd. (RSM), Bandar
Steel Industries Ltd. (BSI), GPH Ispat Ltd. (GPH), HighTech Steel & Re-Rolling Mills Ltd.,
Shahriar Steel Mills Ltd. (SSRM), Salam Steel Re-Rolling Mills (Pvt) Ltd. (SCRM), The Rani
Re-Rolling Mills Ltd. (RRM), Baizid Steel Industries Ltd., Karnafully Steel Mills Ltd. (KSML),
Ambient Steel (BD) Ltd. (ASBRM), Vikrampur Steel Ltd. (VSL), Benz Industries (BD) Ltd.
(BENZ Steel), Purbachal Steel Mills Ltd. (PSML), Binimoy Steel Re-Rolling Mills Ltd., Elite
Iron & Steel Ind. Ltd, Magnum Steel Industries Limited. (MSIL), Metrocem Ispat Ltd.,
Mohammadi Steel Works Ltd. (MSW), Premier Steel Re-Rolling Mills Ltd. (PSRM), Sheema
Automatic Re-Rolling Mills Ltd., SS Steel (Pvt.) Limited., Fazlul Haque Steel & Re-Rolling

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Mills Ltd. (FSRM), HKG Steel Mills Ltd. (HKG Steel), Kadamtali Steel Mills (Pvt) Ltd.
(KSML), Bashundhara Steel Complex Ltd ,EHSAN Steel Re-Rolling Mills Ltd. (ESRM) , Al-
Aqsa Steel & Re-Rolling Mills Limited., Al Aksha Steel Mills Ltd., Hazi Islam Uddin Steel &
Re-Rolling Mills Ltd., H.R. Re-Rolling Mills Ltd., Islam Re-Rolling Mills Ltd., Haque Steel and
Re-Rolling Industries Private Ltd., Mirzaboo Steel Ltd., Multi Steel Castings Ltd., Saleh Steel
Industries Ltd, RAHIMA ISPAT LTD. (HRRM 60G Rebar & RIL Angle Channel), Prime Steel
Re-Rolling Mills Ltd., Bangladesh Auto Re-Rolling & Steel Mills Association. (BARSMA)
-
- (List of Steel Mills in Bangladesh)

Conclusion
In conclusion I would say BSRM is in a great position despite the pandemic and has been doing
well constantly for the longest time. Even though the organization does not charge low prices,
the business has been able to do great things and is still doing so with innovation, research and
development, efficiency, consistency and the customers and their suppliers knows it as well.
Along with that the steel industry is one that is very hard to enter and survive for a new business
according to Porter’s Five Forces and SWOT Analysis. Other than that BSRM should also search
for other sources of power since electricity and power is not constant in Bangladesh at the
moment, perhaps they could invest in solar panels, hydroelectricity, etc. BSRM can also do a
much better job at handling the shareholders equity and they can hire specialist managers who
can better use these finances to create revenue and increase ROE. BSRM should also try to find
other sources of finance since they have already racked up a lot of debt and these could be from
issuing shares and also by selling of assets and plants that are not performing well

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 References
 BSRM. Article. Wikipedia. https://en.wikipedia.org/wiki/BSRM
 BSRM Annual Report 2016
 BSRM Annual Report 2017
 BSRM Annual Report 2018
 BSRM Annual Report 2019
 BSRM Annual Report 2020
 TrippleEe. (2016). SWOT Analysis of BSRM Steels, SWOT Analysis, SWOT Bangla,
https://swotbangla.wordpress.com/2016/06/21/swot-analysis-of-bsrm-steels/
 Star Business Report. (2021). BSRM profit soars 197pc in Jul-Mar, Business, Home,
Daily Star, https://www.thedailystar.net/business/news/bsrm-profit-soars-197pc-jul-mar-
2112529
 Hasan, M.M (2020). Steel & Re-Rolling Industry of Bangladesh: Strengthening
Country’s Infrastructural Development. IDLC Monthly Review.
https://idlc.com/mbr/article.php?id=348
 Taylor, B (2021). The FYI on BSRM. Recycling Today.
https://www.recyclingtoday.com/article/bsrm-bangladesh-steel-recycling-ferrous-scrap-
alihussain/
 TBS Report (2020). Pick-up in construction shoots rod prices. The Business Standard.
https://www.tbsnews.net/economy/industry/pick-construction-shoots-rod-prices-162184
 NewVision (2020). Bangladesh Steel Industry Analysis. Coronavirus Effect on the
Bangladesh’s Steel Industry. http://newvision-bd.com/bangladeshs-steel-industry-
analysis/
 List of Steel Mills in Bangladesh. Company List. Home.
https://bangladeshbusinessdir.com/steel-manufacturers-in-bangladesh/

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