[pic] [pic] 2. 0 ORGANIZATION PART Advanced Chemical Industries Limited 2. 1 INTRODUCTION Advanced Chemical Industries (ACI) Limited is one of the leading and largest local conglomerates in Bangladesh. ACI consists of different business groups namely: Pharmaceuticals, Consumer brands, Agri-Business. ACI is the first company in Bangladesh to earn both the ISO9001 certification of Quality Management System in 1995 and the ISO14001 Certification for Environment Management System in 2000. ACI is a public limited company listed in DSE and CSE.

Beside this, the company has a large list of international associates and partners with trade and business agreement. Today ACI is one of the fastest growing companies in Bangladesh. ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current businesses and ensures that current Good Manufacturing Practices (cGMP) as recommended by World Health Organization is followed properly.

ACI has been accepted as a Founding Member of the Community of Global Growth Companies by the World Economic Forum which is the most prestigious business networking organization. 2. 2 HISTORY ACI was so named in 1992. But the history of ACI dates back to 1926, when Imperial Chemical Industries (ICI) was incorporated in the United Kingdom as four companies namely Novel Industries Limited, British Dyestarts Corporation, Brunner Mond and Company Limited and United Alkali Company merged. Since then ICI plc has been operating world wide as a multinational company.

In the year of formation ICI started operation in the Indian subcontinent in the name of ICI (India) limited. After separation of the India and Pakistan in 1947, the Karachi office of ICI (India) Limited renamed to be ICI (Pakistan) Limited. After the independence of Bangladesh, the ICI Pakistan Limited was renamed as ICI Bangladesh Limited in 1973 and its manufacturer unit changed to ICI Bangladesh Manufacturing Limited. The national Drug Policy of 1982 created a strong barrier in the way of operations of multinational companies in Bangladesh.

Among the multinationals ICI was badly affected, it had to stop producing some of its brand, which was the market leader. That is why ICI decided to terminate its operation from Bangladesh. As the part of termination process, on 5 May, 1992, ICI plc divested 70% of its shareholding to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. ACI is a public limited company since 1992 when ACI was diversified. The results of this diversification have been positive.

ACI pharmaceutical is the first company to win ISO 9001 certificate for Quality Management System & EMS 14001 for Environment Management System. Listing of ACI with Chittagong Stock Exchange was made on 22 October 1995. 2. 3 MISSION ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. 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 its customers. 2. 4 VISION

To realize the mission ACI will: ? Endeavor to attain a position of leadership in each category of its businesses. ? Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with core competencies. ? Develop its employees by encouraging empowerment and rewarding innovation. ? Promote an environment for learning and personal growth of its employees. ? Provide products and services of high and consistent quality, ensuring value for money to its customers. Encourage and assist in the qualitative improvement of the services of its suppliers and distributors. ? Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence. 2. 5 Values [pic] Quality [pic] Customer Focus [pic] Transparency [pic] Continuous Improvement [pic] Innovation [pic] Fairness 2. 6 Business Units The company has diversified into three major businesses. ? Pharmaceuticals ? Consumer Brands & Commodity Products ? Agribusinesses: Crop Care Public Health; Livestock & Fisheries; Fertilizer; Cropex; Seeds. [pic] Source: ACI Annual Report, 2007 Figure: 01 ACI has the following subsidiaries: ? ACI Formulations Ltd. ? Apex Leathercrafts Limited ? ACI Salt Limited ? ACI Pure Flour Limited ? ACI Foods Limited ? Consolidated Chemicals Limited ? Creative Communication Limited ? ACI Motors Limited ? ACI Logistics Limited Joint Ventures: ? ACI Godrej Agrovet Private Limited ? Tetley ACI (Bangladesh) Limited ? Asian Consumer Care (Pvt) Limited 2. 7 MANAGEMENT COMMITTEE Management Committee | |Mr. M Anis Ud Dowla |Chairman | |Dr. Arif Dowla |Managing Director | |Dr. F. H. Ansarey |Executive Director, Agribusinesses | |Mr. Syed Alamgir |Executive Director, Consumer Brands | |Mr. M.

Mohibuz Zaman |Chief Operating Officer, Pharmaceuticals | |Mr. Muallem A. Choudhury |Executive Director, Finance and Planning | |Mr. Asif Iqbal |Chief Operating Officer, Corporate Communications | |Mr. Towfiqur Rahman |Director, Business Development | |Mr. Priyatosh Datta |Director, Quality Assurance | |Mr.

Pradip Kar Chowdhury |Financial Controller | |Ms. Sheema Abed Rahman |Director, Corporate Affairs | |Mr. Abdus Sadeque |Director, Marketing & Sales | |Mr. Imam Ahmed Istiak |General Manager, Operations | Table: 01 2. 8 Financial (YEAR ENDING, 2007) Authorized Capital Taka 500 Million

Paid Up Capital Taka 161. 70 Million Sales Taka 5756. 81 Million Number of Employees 4027 (Four Thousand Twenty Seven) 2. 9 BOARD OF DIRECTORS |Board of Directors | |Mr. M Anis Ud Dowla |Chairman | |Mr. Arif Dowla |Managing Director | |Mr.

Syed Manzur Elahi |Director | |Mrs. Najma Dowla |Director | |Mr. Waliur Rahman Bhuiyan |Director | |Mr. Md. Ziaul Haque Khondker |Director | |Ms. Shusmita A. Salam |Director | |Mr. Waliur Rahman |Director | |Mr.

Wajed Salam |Director | |Ms. Sheema Abed Rahman |Director and Company Secretary | Table: 02 2. 10 HEAD OFFICE ACI Centre, 245, Tejgaon Industrial Area, Dhaka-1208, Bangladesh. 2. 11 Auditors Rahman Rahman Huq (A member firm of KPMG International) 2. 12 Legal Advisor Barrister Rafique-ul Huq, Huq and Company 2. 13 Financial Consultant Mr. M Sikander Ali 2. 14 Principal Bankers Standard Chartered Bank The Hongkong and Shanghai Banking Corporation Limited Commercial Bank of Ceylon Limited

Citibank N. A 2. 15 ACI Pharmaceuticals ACI carries the legacy of ICI- world renowned British Multinational in providing the people of Bangladesh with quality medicines and healthcare products. Its state-of-the art pharmaceutical plant represents Bangladesh’s quest for a truly world class manufacturing facility. ACI’s rich heritage leads to innovative and higher value added formulations. The comprehensive product range of ACI pharmaceuticals include products from all major therapeutic classes and in various dosage forms like tablet, capsule, dry powder, liquid, cream, gel, ointment, ophthalmic and injectable.

ACI Pharma also has state of the art plant on Novel Drug Delivery System (NDDS). It produces world class Modified Release drug and medicine to cater the requirement of pharmaceutical manufacturer of domestic and international market. It exports high quality pharmaceuticals to a good number of countries of Asia, Africa & South America. ACI Pharma has achieved the second top position in the sales growth rate of 2008. They have made 34. 12% of sales growth in the year 2008 and on the top position Opsonin Pharma has achieved 57. 03% of the sales growth of 2008. 2. 6 ACI Agribusinesses ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock and Fisheries and deals with Crop Protection, Seed, Fertilizer, Agri-machineries and Animal Health products. These businesses have glorified presence in Bangladesh. CC & PH supplies crop protection chemicals, Seed supplies Hybrid Rice, vegetable and Maize seeds, Fertilizer Supplies Micronutrient and Foiler fertilizer, Agri-machineries supplies Tractors, Power Tiller and Harvester and Animal Health supplies high quality Nutritional, Veterinary and Poultry medicines and vaccines.

ACI Agribusiness is having strong partnership with national and international R & D companies, universities and research institutions. Before introducing any product, it is elaborately tested in the laboratory and farmers field. ACI provides solution to the farmers through a large team of scientists & skilled professionals. [pic] 2. 17 ACI Consumer Brands 2. 17. 1 Introduction ACI Consumer Brands was initiated in 1995 with two major brands of the company – ACI Aerosol and Savlon. These are two of most prestigious products which are enjoying the leadership position in the market.

The division started to take new businesses through off shore trading as well as local manufacturing. In this process ACI Consumer Brands launched many new products and also bonded with Joint Venture business relationships with ‘Dabur India’ and ‘Tetley UK’ and attained international alliances with world renowned companies. ACI Consumer Brands Strategic Business Unit is headed by the Executive Director, Mr. Syed Alamgir. Mr Alamgir is regarded as an authoritarian personality in the area of Sales and Marketing in Bangladesh market.

His track record has many successful brands which reached leadership position in different categories in FMCG market. He is supported by competent group of professionals working in the Marketing and Sales operations, lead by Business Manager. 2. 17. 2 Home Care Products ACI Limited is proud of these two homecare products: ACI Aerosol and ACI Mosquito Coil. ACI Aerosol is one of the prestigious products of this country which has been enjoying the market leadership position since its marketing in 1967. ACI Aerosol is produced through a unique process of production and quality checking.

The Formulation Factory of ACI Aerosol is situated in Rajbari, Gazipur. This factory was established with the technical collaboration of UNDP. The product is one of its kinds with unique fragrance and mosquito killing ability. It is fully free from any environmentally perilous material like CFC. ACI Mosquito Coil is another product of the Home Care category products of ACI Consumer Brands. It is also produced in ACI Formulations. ACI Mosquito Coil also has some differentiation based on color, shape and fragrance. These are: ACI Mosquito Coil Green, ACI Black Fighter Coil, ACI Super Coil and ACI High Booster Coil.

ACI Coils enjoys very predominant position and fighting to become absolute leader in the market place. [pic] 2. 17. 3 Hygiene Products Savlon ACI has another very strong range of products in its Hygiene Product category. Savlon is almost an essential product in every home of this country. Savlon Liquid Antiseptic is the highest selling antiseptics. It is used in minor burn, cut and abrasion. Savlon has unique proportion to heal and sooth wound and protect from infection. It washes the wound, heals and protects instantly from getting infection. It has more than 75% market share of its category.

Savlon Liquid Antiseptic has four pack sizes. They are: 56 ml, 112 ml, 500 ml, and 1 liter. Savlon Antiseptic Cream is another range of products in Hygiene Product category. The product is basically another disinfectant for using only on skin surfaces. It also cleans the wound, soothes and heals the pain. It has a special effect on skin-cut or wounds because it can stay for longer time on the impact area than Savlon liquid antiseptic. Savlon Antiseptic Cream is routinely used in almost 90% of the country’s Hair Cutting salon as after shave antiseptic. It has two pack sizes: 30 gm and 60 gm.

Savlon liquid Soap is a powerful hand wash which not only kills bacteria but also moisturizes the skin. Savlon liquid Soap has two pack sizes. They are: 250 ml, 1000ml. 250 ml pack has both dispenser and refill pack. Savlon range takes care of almost all the aspects of hygiene of a family. For bath time pleasure and protection from bacteria and also a stress less shower, ACI Consumer Brands has Savlon Bath Soap in two different variants: Mild and Active in two sizes: 75 gm and 100 gm. Savlon Freedom For feminine hygiene ACI launched Savlon Femme Sanitary Napkin last year.

This product is very good in quality as it has ‘Super Absorbent Polymer’ to keep its user dry for whole day. The product has two variants: Regular and Heavy Flow. Vanish ACI has introduced a high quality toilet cleaner for the disinfection and cleaning in the brand name of Vanish Toilet Cleaner. The product kills bacteria in the toilet, fragrances the surroundings and keeps the toilet sparkling. 2. 17. 4 International Alliances Oral Care: Colgate Palmolive ACI represents Colgate Palmolive Company as exclusive marketing partner and distributor for the territory of Bangladesh.

Colgate is the world wide leader of the oral care products category. The products have a high demand among the consumers of Bangladesh like any where in the world. Personal Care: Nivea ACI was appointed as sole distributor and marketing partner of Beiersdorf AG, Germany the manufacturer of Nivea brand products. The products are best in their category in respect of quality. Nivea products are getting popular day by day in Bangladesh. Hair Care: Godrej ACI represent Godrej Consumer Products Limited to market their products. Currently the demands of Godrej hair dye products are on sharp rise.

Low Calorie Sweetener: Merisant ACI consumer Brand markets low calorie sweetener products of Merisant for weight conscious customers and also for them who want to avoid direct sugar. The products are: Canderel and Equal both in tablet and powder form. 2. 17. 5 Best Brand Award of ACI Salt ACI Salt won Best Brand Award last year by Bangladesh Brand Forum (BBF) in Food and Beverage Category. Since 2006, ACI Salt captured the leadership position in the packed salt industry and improved its position and distance from the competitors day by day.

ACI Salt now holds more than 21% of the national salt market, as well as it holds 29% market share in urban Bangladesh Market. (source: Best Brand Award Brochure by BBF) ACI Salt has been highly accepted and appreciated by the consumers of the country. To the target consumers, ACI salt now stands as a symbol of purity and trusted friend that accompanies their development. [pic] [pic] Narayangaj Plant of ACI Rajbari Plant of ACI 2. 17. 6 SWOT Analysis of ACI Consumer Brands Division STRENGTH |WEAKNESS | |Well established brands like ACI Aerosol, ACI Salt, Savlon |Less expense on advertisement than the competitors like | |Antiseptic with the unparallel market leadership. |Square, Unilever, Reckitt Benkiser. | |Best Brand Award of ACI Salt in the year 2008. |Lack of reliability among retailers on ACI regarding timely | |One of the fastest growing company on FMCG category. |gift disbursement of any trade program. |Annual Sales’2008 of ACI Consumer Brands increases to 390 cr BDT |Lack of proper merchandizing in outlets. | |from 199 cr BDT of Year 2007. | | |OPPORTUNITY |THREAT | |Expanding business by niche marketing in Japan and Singapore. |Unparallel market leadership of Radhuni spice is threat for | |On December, 2008 ACI Pure Atta, Maida was in 1st position for |the survival of ACI Pure spice. | |the first time in monthly sales volumes. Aggressive trade promotions of Lifebuoy and Dettol soap. | |Growth of Savlon Bath soap is 407% in last year. |Unparallel market leadership of Harpic is threat for the | | |survival of Vanish. | Table: 03 2. 17. 7 Key Factors of ACI Consumer Brands ? Clear business goals ? Professional management ? Motivation through empowerment ? Result oriented strategies and operations ? Innovative approaches ? Partnership with reputed foreign companies 2. 18 Finacial Information OF ACI Limited 2. 18. 1 Six Years Comparative Statistics 2002-2007

Particulars |2002 |2003 |2004 |2005 |2006 |2007 | |Taka in million | | | | | | | |Authorized capital |500 |500 |500 |500 |500 |500 | |Issued & paid capital; |162 |162 |162 |162 |162 |162 | |Current assets |1,099 |1,396 |1,342 |1,537 |1,755 |3,121 | |Tangible fixed assets (gross) |468 |668 |1,006 |1,087 |1,131 |1,541 | |Shareowners’ equity |590 |668 |861 |906 |974 |1,272 | |Turnover (net) |2,053 |2,240 |2,558 |3,089 |3,516 |4,917 | |Gross profit |631 |639 |740 |957 |1,176 |1,667 | |Profit before tax |164 |93 |141 |169 |233 |431 | |Profit after tax |109 |85 |90 |112 |154 |313 | |Dividend |61 |65 |69 |73 |97 |137 | |Current ratio (times) |1. 2 |1. 2 |1. 2 |1. 0 |1. 0 |1. 0 | |Quick ratio (times) |0. 5 |0. 5 |0. 5 |0. 6 |0. 6 |0. 6 | |Return on equity (%) |18. 5 |12. 7 |10. 4 |12. 4 |15. 8 |24. 6 | |Inventory turnover (times) |2. 7 |2. 3 |2. 4 |3. 0 |3. 3 |3. | |Debtors turnover (times) |23 |16 |12 |11 |10 |8 | |Fixed assets turnover (times) |8. 8 |7. 3 |3. 8 |4. 2 |5. 1 |5. 7 | |Net asset per share (Taka) |36. 5 |41. 3 |53. 3 |56. 0 |60. 2 |78. 7 | |Market price per share (Taka) |54. 2 |66. 7 |94. 4 |69. 6 |70. 2 |181. 7 | |Earnings per share (Taka) |6. 75 |5. 25 |5. 54 |6. 94 |9. 51 |19. 36 | |Dividend per share (Taka) |3. 75 |4. 00 |4. 25 |4. 50 |6. 00 |8. 50 | |Dividend rate ( %) |37. 5 |40. 0 |42. 5 |45. 0 |60. 0 |85. 0 | |Dividend payout ratio (%) |55. 6 |76. 2 |76. 7 |64. 8 |63. 1 |43. 9 | |Price earnings ratio (times) |8. 0 |12. 7 |17. 0 |10. 0 |7. 4 |9. 4 | |Dividend yield (%) |6. 9 |6. 0 |4. |6. 5 |8. 5 |4. 7 | |Number of employees |1,662 |1,883 |1,931 |2,000 |2,476 |3,050 | |Table: 04 2. 18. 2 Profit and Loss Account [for the year ended 31 December 2007] | |2007 | |2006 | | | |Notes |Taka | |Taka | | | | | | | | | |Sales |23 |4,917,304,331 |  |3,515,862,372 | | |Cost of sales |24 |(3,250,711,677) |  |(2,339,975,616) | | |Gross profit | |1,666,592,654 |  |1,175,886,756 | | |Administrative, selling and distribution expenses |25 |(1,235,098,936) |  |(884,474,379) | | |Operating profit | |431,493,718 |  |291,412,377 | | |Other income |26 |23,346,716 |  |35,345,860 | | |Profit from sale of shares of ACI Trading Ltd. |118,818,000 |  |- | | | | |573,658,434 |  |326,758,237 | | |Financing cost |27 |(119,087,159) |  |(81,555,964) | | | | |454,571,275 |  |245,202,273 | | |Provision for contribution to WPPF | |(22,728,564) |  |(12,260,114) | | |Profit before tax |  |431,842,711 |  |232,942,159 | | |Income tax expenses: | | | | | | |Current tax expense | |(124,518,213) |  |(97,598,579) | | |Deferred tax income | |5,710,733 |  |18,482,035 | | | | |(118,807,480) |  |(79,116,544) | | |Net profit after tax | |313,035,231 |  |153,825,615 | | |Earnings per share (EPS) | |19. 36 |  |9. 51 | | |Table: 05 2. 19 WHAT MAKES ACI AN ATTRACTIVE PARTNER? ? Resourceful company in terms of finance and infrastructure ? ? Professional management ? Strong presence in the market ? Excellent image ? ? Multinational culture in a national company ? Highly motivated, skilled and result oriented work force ? Welcomes foreign partners to lead the business

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