abul khair steels

Abul Khair Steels

Formed in 2009 Pioneer of steel productsSingle largest most advanced steel mill in

Bangladesh Known for quality, excellent personalized

customized support serviceUsed the TMT technology for the 1st time in

BangladeshProduction capacity of 1.2 million metric ton

AKS mission statement

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

Vision

By 2030 Abul Khair Steel would like to become a brand name throughout the World in steel industry

Target market

High price

Low price

High technology

Low technology

AKS

KSRM

RSRM

GPH

BaizidSteel

Marketing Mix

Marketing mix

What is TMT bar?

TMT = thermo mechanical treatment use the technology of Oxygen Lancing

before the procedure of TMT bar.Procedure for TMT bar: tempering,

quenching ,slitting , chilling Due to this technology , both mechanical and

chemical quality of the steel is improved.Which enables the product to bear extreme

weight.

Raw material

Steel billets, Square bars, Scrap steels

•Scraps steels are collected from local market

•Rest of the raw materials are imported from China. Japan, South Korea, Iran and Thailand

Production process

Production Procedures

Oxygen Lancing: The raw materials are refined to get a controlled mixtures of carbon, silicon, manganese, sulfur etc.

Tempering: billets are heated at 1200 degree Celsius to make it ready for quenching.

Quenching: after tempering, the outer surface of the billets are cooled.

Slitting: the billets are cut down with heavily pressurized water.

Chilling: final process of TMT bar production where the steel bars are given the actual shape of TMT bar

Production procedure

Tempering Quenching

Slitting Chilling

Quality

The latest technology for graded steel bars.It is made from 100% purified steel billets.

Maintains national and international bar standards: BDS ISO 6935:

BANGLADESH BS4444: Great Britain

ASTM: USA DIN 488: Germany

NFA 350 16:France JIS 3112:Japan

AUS 4671: Australia NSZ 4671: New Zealand

GOST 10884: RussiaTested and approved by BUET

ContinuedSkilled stuff.

Full automation.

Have a full, highly skilled team of 12 persons from “BAO steel", China , which is one of the finest steel mill in the world.

Gets training and technological support from Cumming steel mill

Features of TMT bar

Features of TMT bar

Service level

Whenever there is a complaint, the sales and marketing department goes there with a team of 50 people.

The team call back the products to their research center and verify the problem.

Every month they do a survey on their quality acceptance from the customers.

Pricing

Average selling price is 73000 Tk per ton and Average cost is 70000 Tk per ton.

The main competitor BSRM’s average selling price is 77000 Tk

No pricing list for retailer and middleman.

Pricing Policy

BSRM selling price is 77000tk per ton where AKS selling price is 73000 tk.

AKS selling price is comparatively low because they enjoy economies of scale

Due to high sales volume which leads to more use raw materials, self established power plants and as well as has a agreement with Govt. for supply of gas.

Allowance policy: 500 to 1000 tk per ton to wholesalers.

Credit term: no specific credit terms. In special cases, gives 15 to 30 days of credit term to loyal customers.

Payment period: Depending on letter of credit (LC), pays within 1 to 6 months to suppliers.

Place

Channel: 8 to 10 depotsCoverage: Whole BangladeshAssortments: All the depots are in convenient

positionLocations: Depots are in the main regions Inventory: keep total 30% inventoryTransportation: Has own transportationLogistics: Well positioned

Channel

Depots are located inDhaka, Chittagong, Khulna, Faridpur, Sylhet,

Jessore, Barisal, Rajshahi, Rangpur, and Cox’s Bazar.

Coverage

Depots are situated in such a way that it is easy to cover whole of Bangladesh.

AKS factory is in Chowdhury Ghata, Barowalia, CTG which is covering the whole Bangladesg according to their demand.

Inventory

Keeps 30% on hand. In case of emergency AKS use this 30%. These inventories are kept in all the warehouse.

Inventory is also kept for special purposes such as order form loyal customers, additional need for real states.

Location

As we can see, depots are in the main regions of Bangladesh. Depots are in places where it is more populated.

Depots are supporting AKS to give desired service to the customers.

AKS has their own transportation for delivery of goods to depot. They have many trucks to make moving of goods time effective. Though after delivering goods to the depot AKS plays no further role in transportation

Transportation

Logistics

People can visit the depots easily. They are easy to access and people does not have to go through any hassle. Transfer of goods from the factory to selected depots is suitable.

Sales promotion

Pull strategy: Spends a lot on advertising. Every year they spend around 30 cores for advertising.

Seminars with BUET engineersTaking the sponsorship of various reunion

program of school and collegesAKS do sales promotion in rehab fair by using

leading real estate companies

Advertising

Web sitesElectronic mediaPrinting mediaBillboardsOutdoor

SitesSites Electronic mediaElectronic media

Face bookTwitterAlibaba.com

TV RadioWebsites

Print Media

Newspaper

Selective magazines

Public Relation

Open air concerts- Last year on 31st December they held the biggest concert in Bangladesh.

Environmental work.

Conclusion

So far AKS has done excellent work in steel industry. They gained the trust of consumers in short period of time through high quality and service. They have already 25% loyal customers.

As far as we can see the 4 p’s of AKS are quiet good enough to support its mission and vision and which is helping to achieve its target profit.

It is easy to say that Abul Khair Steels has become a key player in steel industry.