HELLO!

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Internationalization
Process of
Bangladeshi Firm:
“ACI Pharmaceuticals
LTD.”
 Founded in 1992
 Founded by Mr. M Anis Ud Dowla
 More than 387 products
 Introduced the quality management
system in Bangladesh
 First Company in Bangladesh to
achieve ISO: 9000 certificate in 1995
 Complies with standard environment
policy EMS 14001 certificate in 2001
 More than 5000 employees till now
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 ACI Pharmaceuticals LTD: MISSION

ACI's Mission is to enrich the quality of life of

the people through responsible application of
knowledge, technology and skills. ACI is
committed to the pursuit of excellence through
world-class products, innovative processes and
empowered employees, to provide the highest
level of satisfaction to our customers.

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 ACI Pharmaceuticals LTD: VISION

 Endeavour to attain a position of leadership in each

category of our business.
 Develop our employees by encouraging empowerment
and rewarding innovation.
 Promote an environment for learning and personal
growth.
 Attain a high level of productivity in all our operations
through effective utilization of resources and
adoption of appropriate technology.
 Promote inclusive by encouraging and assisting our
distributor and suppliers in improving efficiency.
 Ensure superior return on investment through
judicious use of resources and efficient operations,
utilizing our core competencies.
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 Quality
Continuous Customer
improvement Focus

VALUES

Transparency
Innovation
Fairness

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 Symbiota Synergy
Neoronta (Antibiotics, (Anti diabetes)
(Antibiotics, Calcium)
Calcium)

Biotech
Synoptica (Anti Cancer)
Langerhens (Ophthalmic)
(Insulin)

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AVERAGE TURNOVER

Average Turnover
Year Turnover

18306

14567
12319
10684

2013 2014 2015 2016

1 2 3 4
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Competitive Advantge
Well equipped production, Quality Control and Product Distribution

Pellet Manufacturing Technology

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 Why ACI invested in the foreign
market?
• ACI is the leading pharmaceutical company in Bangladesh.
• Main Reason of Investment is to achieve economies of scale through
increasing their sales, which will lead to greater market share and
increased customers.
• Maximization of profits.
• Medicines are universal product and don’t need that much
modification and adaptation.
• Some standardization and adaptation of medicines is needed
according to the country’s weather and environment.
• Similar demand of medicines all over the world
• Production procedures would be same as well.
• It is very profitable for ACI to go for the foreign market. 11
 Performance of ACI in the
International Market
• ACI is enriched with GMP certification from Kenya, Ivory Coast, and
Philippines

• Export pharmaceutical products to 30 countries of 4 continents.

• No well established medication facility in these countries

 Turnover Rate- Initially in 1992, ACI started the pharmaceutical

industry with a turnover of BDT 80 million.
• Later with the new management, the turnover grew over BDT 7,365
million in 2008.

 Investment Uncertainty- Huge;

• Not interested in investing abroad at this moment.
• Only concentrated on exporting.

 Return on Investment- Presently Operation is in 30 countries with a

ROI of 3.5 million. Aim to increase more with fair utilization of
resources, efficient operations and utilizing core competencies 12
 Factors ACI consider while investing in
the foreign market
 External Environmental Factors
 Economic Factors- ACI Exports only average and moderately
affordable priced medicines targeted for the middle income people.
 Home and Foreign government regulatory factors- ACI has
chosen regions where exporting of medicines have low barriers
and are guarded by less laws and legal procedures
 Technological Factor- The technology of ACI is not standardized
as like other as other developed or developing countries in the
world
 Environmental Factor- Proper environment for the medicines.
Medicines need cold place to store for a long time, but excessive
cold will result to the spoil of the medicines
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Industry Factors
 Competitors

 Domestic and international competitors

 20 competitors in both domestic and international

markets

 Charges lower price than the competitors

 Good quality medicines

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 Suppliers
 Needs help from India and China
 Has to depend on India and China
 Pay higher prices
 Own plant in Narayangonj

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 Buyers

• Exports to 30 countries

• Buyers are middle and low income countries

• Price sensitive buyers

• Keeps the price low to sustain in the

markets
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 Process
 First Foreign Market to Enter

 Started to export its products in Myanmar

 Small country

 Less advanced in this sector

 Less transportation cost

 Operating in 30 countries of 4 continents

 Increasing demands
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Systematic Approach
of Exporting
 Evaluate the global market opportunity

 Organize for exporting

 Acquire needed skills and competencies

 Implement the export strategy

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Did your firm acquire any local small
businesses or they have started from the
scratch: what problems/ advantages they
had because of it?

ACI Pharmaceuticals started from the scratch.

It has started in foreign market (Myanmar) with new idea

and high demand market.
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Did your firm acquire any local small businesses
or they have started from the scratch: what
problems/ advantages they had because of it?

Lower Cost

Clean Slate
Started
Advantages from
Scratch
Own Way

Choosing Location
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Did your firm acquire any local small businesses or
they have started from the scratch: what problems/
advantages they had because of it?

High Risk

Started
Disadvantages from
Scratch

Delayed Profitability

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Had your firm transfer their knowledge or IT
resources to foreign operations? Or did they go
there to acquire these?

 ACI pharmaceuticals used foreign IT resources (ERP) which they

brought from various countries. ACI also used local IT resources for
their operational usage. ACI pharmaceuticals sent IT experts to foreign
country to collect information regarding IT resources and then took
decision in board meeting to procure those.
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IMPEDIMENTS
 Factory Standardization
Factory standardization in Bangladesh is not up to the mark due to lack of
skilled labor in Bangladesh. Compared to highly-regulated country like
USA, UK and European Union and Bangladesh has not reached the
highest success in this sector.
 Decision Making Process
Pharmaceutical industry in our country lack behind in decision making
timing as the approval process is prolonged. The reason for the complex
and lengthy decision-making process is because of any remissness while
production could lead to a precarious situation for both the host and home
country.
 Pricing Consideration
China has the most competitive pricing model among India and
Bangladesh. To change the current scenario of pharmaceutical market in
our country, ACI has to go through rigorous obstacles and barriers to
compete in international market.
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 Future Plan
 Totally separated plant

 ACI Health care

 Approval of US FDA of marketing distribution and storing

 Raw material collection

 Factory approval of manufacturing is in process

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