fmcg industry review of bangladesh

(This document has been prepared by the Research Team of EBL Securities Limited for information only for its clients. No part of this report should be copied or used in any other report or publication or anything of that sort without

any prior permission taken from the authorized publisher of this report)

FMCG Industry Review of

Bangladesh

1 EBL Securities Limited Research 21st June, 2018

FMCG Industry Review of Bangladesh FMCG at a Glimpse Consumer goods refer to the final goods and services that are consumed by the households and not used in the production process of other goods & services. Consumption of these goods and services is defined as the Private Consumption or Household Consumption. On the other hand, Fast Moving Consumer Goods (FMCG) are products that are sold rapidly and at comparatively lower cost. Examples of such FMCGs are packaged foods, beverages, toiletries, over the counter drugs and similar consumables. Usually, FMCGs have a short shelf life. Some FMCGs are highly perishable such as meat, fruits, vegetables, dairy products and baked goods. Others products like toiletries, packaged foods, soft drinks, housework products have high turnover rates. Revenue margin from the FMCGs is comparatively small, these products are generally sold in bulk quantities to make considerable aggregate earnings. The business of FMCGs is considered as the most definitive instance of low margin and high volume business. Based on how fast products are sold to the customers, consumer goods are also classified as Slow Moving Consumer Goods (SMCG). SMCGs are those which have a useful life longer than a year including stuffs such as domestic appliances, furniture and home upgrading products. These products have a sluggish sales regularity and are not circling as quickly as FMCGs.

FMCGs industry is one of the fastest growing segments of the market. The population of Bangladesh was 164.67 million in the end of 20171. This large number of population of the country makes the FMCGs industry very prospective. With the considerable growth of GDP, the private consumption growth has also increased over the years. In FY 2016-17, GDP Growth rate was 7.28% compared to 7.11% in FY 2015-16 whereas Private consumption growth in FY 2016-17 was 10.3% compared to 9.1% in FY 2015-162.

Consumption Nature in Bangladesh Private Consumption which is also known as Household Consumption is backing up the stable growth of the economy of Bangladesh. In FY 2016-17, Private Consumption was 67.6% of GDP compared to 69.1% in FY 2015-16. The private consumption trend is downward since FY 2010-11 where it was 74.3% of GDP. GDP at current market prices was BDT 19,561 billion in FY 2016-17 whereas Consumption at current prices was BDT 13,213 billion in the same period.

1 http://www.worldometers.info/world-population/bangladesh-population/ 2 https://www.thedailystar.net/country/bangladesh-gdp-growth-rate-in-2016-2017-fiscal-year-7-percent-government-1491103

Characteristics of FMCGs

Consumer's Angle

Frequent Purchase

Low Involvement

Low Price

Producer's Angle

High Volumes Low MarginExtensive

Distribution Networks

High Stock Turnover

1.00%

6.00%

11.00%

16.00%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

GDP & Private Consumption Growth

GDP Private Consumption

Source: BB, BBS & EBLSL

Analyst: Asaduzzaman Ashik [email protected]

mailto:[email protected]


According to Bangladesh Bureau of Statistics (BBS), consumption expenditure was 96% of average monthly household income (national) in 2010 where it was 83% in 2005 and 78% in 2000. Consumption expenditure was 93% of average monthly household income (Urban) in 2010 compared to 79% in 2005 and 74% in 2000. From this historical trend, we can see that the consumption expenditure as % of total income has increased significantly over the periods both in urban and rural areas.

The breakdown of Consumption Expenditure as % of total is as follow:

From the table above, we can see that most of the expenditures are occurring in Food & Beverage items both in rural and urban areas. In Urban areas, Housing and rent expenses are second area in terms of expenditure as % of total Consumption expenditure by the individual consumers.

Year Income Consumption Expenditure Expenditure

% of Income

National

2015 15,945 15,420 97%

2010 11,479 11,003 96%

2005 7,203 5,964 83%

2000 5,842 4,537 78%

Rural

2015 13,353 13,868 103%

2010 9,648 9,436 98%

2005 6,096 5,165 85%

2000 4,816 3,879 81%

Urban

2015 22,565 19,383 86%

2010 16,477 15,276 93%

2005 10,463 8,315 79%

2000 9,878 7,337 74%

Source: Bangladesh Bureau of Statistics

Rural

Year Food & Beverage Cloth & Footwear Housing & Rent Fuel & Lighting Household Effect Others

2010 58.7% 5.1% 7.3% 6.1% 1.9% 20.9%

2005 58.5% 5.5% 9.8% 6.1% 1.8% 18.3%

2000 59.3% 6.5% 5.7% 7.2% 1.2% 20.1%

Urban

2010 48.2% 4.7% 14.4% 4.9% 1.4% 26.4%

2005 45.2% 5.5% 16.8% 5.8% 2.5% 24.3%

2000 44.6% 5.7% 16.1% 6.0% 1.8% 25.9%


74.3% 73.7% 72.9% 72.6% 72.4%

69.1%67.6%

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Private Consumption as % of GDP



Asian Countries Overview on Some selected Indicators: GDP from manufacturing activities is highest in India in FY 2016-17 which was USD 80.96 billion where Indonesia was in second position with USD 38.66 billion. Food Inflation was lowest in Nepal on 2017 which was -0.90% whereas highest food inflation was in Bangladesh (7.13%). Consumer Spending in India was USD 296 billion which was highest in south Asian region. Consumer Price Index (CPI) was lowest in Maldives and the index was 112 points in the end of 2017. CPI was 245 points in Bangladesh at the same period.

Countries GDP Per

Capita PPP (in USD)

GDP from Manufacturing (in USD billion)

GDP from Services

(in USD billion)

Inflation Rate

Food Inflation

CPI Consumer Spending

(in USD billion)

Population (in million)

Bangladesh 3,319 0.24 1.54 5.83% 7.13% 245 68.62 164.67

India 6,093 80.96 1,186 4.44% 3.26% 136 296.00 1,299.00

Indonesia 10,764 38.66 3.24 3.18% 3.40% 132 100.02 259.00

Maldives 12,236 0.08 2.96 2.10% 1.10% 112 2.323 0.42

Nepal 2,288 0.47 0.99 4.20% -0.90% 120 6.48 28.98

Pakistan 4,866 13.09 56.95 3.80% 5.10% 184 79.30 208.00

Sri Lanka 11,417 2.22 9.00 4.50% 6.00% 122 51.27 21.20

Source: world bank data & trading economics data :::: Data presented here are for FY 2016-17 or 2017

Factors Accelerating the Growth of FMCG Sector of Bangladesh Urban Population of the Country The enlarged urban population of the country has stimulated reasonable growth for the food and consumer goods and has caused sizable needs for the related products. The growth of urban population of the country is remarkable over the years. In the end of 2017, the urban population of the country stood at 58.75 million which represents 35.70% of the total population. According to Bangladesh Bureau of Statistics (BBS), the urban population of the country will be 85.95 million within 2030 and 111.88 mn within 20404.

Middle Class Income Category Like urban population, middle class people has contributed and expected to contribute in the growth of fast moving consumer goods industry. According to Boston Consulting Group, 2 million Bangladeshis are joining the rank of middle and affluent class (MAC) a year. Currently the number of MAC is around 12 million which is expected to be 34 million by the year 2025. According to Bangladesh Development Studies (BIDS), 20% of the total population in Bangladesh belongs to the middle class income category compared with 24.1% in India. Researchers believe that 25% of the total population will belong to middle class income category within 2025 and 33% will belong within

20305.

3 https://www.wttc.org/-/media/files/reports/economic%20impact%20research/countries%202015/maldives2015.pdf 4 http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/d6556cd1_dc6f_41f5_a766_042b69cb1687/PocketBook2016.pdf 5 https://thefinancialexpress.com.bd/views/opinions/burgeoning-growth-of-the-middle-class-1511362584

49.8251.61

53.4355.25

57.0958.75

32.00%32.80%

33.50%34.30%

35.00%35.70%

30. 00%

31. 00%

32. 00%

33. 00%

34. 00%

35. 00%

36. 00%

40

42

44

46

48

50

52

54

56

58

60

2012 2013 2014 2015 2016 2017

Urban Population in Bangladesh (In mn)

Urban Population % of total population

Source: World Bank & EBLSL Research

Middle & Affluent

Class

12 million people are

MAC

34 million MAC by 2025

Currently 25% People are Middle

Class

33% Middle Class by 2030

Source: Financial Express (November 2017) & EBLSL Research


Labor Force & Participation Rate The labor force, which is also known as work force, is the populace of able-bodied, keen people who are currently employed or looking for work. Labor Force is the depiction of the labor pool of a certain country. Students, housewives, and persons above the age of 64 are not numbered in the labor force6. The participation rate refers to the total number of people who are currently employed or in search of job. In Bangladesh, the labor force are increasing day by day. In 2017, total labor force was 66.64 million compared to 58.86 million in 2010. Besides, labor force participation rate was 56.50% in 2017 where the world average rate was 61.94% in the same year7. The labor force participation rate of Bangladesh is clearly ahead of some other Asian countries. In 2017, labor force participation rate was 56.12% in Saudi Arabia, 54.44% in Pakistan, 53.79% in India, 53.54% in Sri Lanka8. This labor force has helped Bangladesh to reduce the unemployment rate to 4.1% in 2017 compared to 35% in 20019. The lifestyle of the employed population has changed and consumption pattern too. This huge working population is a major driver to the growth of FMCGs industry over the year.

Rural Consumption Consumption in rural areas is considered as one of the major drivers of the growth of the FMCG industry. According to BBS, Rural consumption expenditure was 103% of total income in 2015 where urban consumption was 86% of the total consumption. In last 15 years, consumption expenditure for rural areas has increased significantly and reached at 103% from 81%. This rural market segment has immense prospects enticing overall FMCG growth.

Availability of Raw Materials & Low Labor Cost The climatic condition of Bangladesh is suitable for the productions of livestock, milk, rice, wheat, maize, sugarcane, fruits & vegetables which makes a large raw material base for many FMCG companies. Moreover, importing of required raw materials (which is not available in local markets) is very cost efficient for the geographical location of Bangladesh. Besides the availability of raw materials, low labor cost in Bangladesh is another driver of the growth of FMCG industry in this country. Low labor cost supports low cost of productions which makes Bangladesh a favorable investment destination for FMCG industry.

6 https://economictimes.indiatimes.com/definition/labour-force-participation-rate 7 https://data.worldbank.org/indicator/SL.TLF.CACT.ZS 8 https://www.indexmundi.com/facts/indicators/SL.TLF.CACT.ZS/rankings 9 https://www.indexmundi.com/g/g.aspx?c=bg&v=74

58.8659.93

61.0262.11

63.2164.32

65.3866.6456.99%

56.88%56.79%

56.70%

56.62%56.53%

56.44%56.50%

56. 10%

56. 20%

56. 30%

56. 40%

56. 50%

56. 60%

56. 70%

56. 80%

56. 90%

57. 00%

57. 10%

54

56

58

60

62

64

66

68

2010 2011 2012 2013 2014 2015 2016 2017

Labor Force (in million) & Participation Rate

Labor Force Labor Force Participation Rate

Source: World Bank, ceidata & EBLSL Research


Overview of FMCG Companies in Bangladesh

Major Classifications of FMCG Industry in Bangladesh In Bangladesh, the FMCG industry can be classified in three major categories- Foods and Beverage, Personal Care and Household Care Industries. Foods and Beverage Industry includes all food products such as milk & dairy products, biscuits and bakery products, frozen foods, ice cream, tea, coffee, baby foods, soft drinks, tobacco and others. On the other hand, Personal Care industry includes the products which are used for personal care like perfume, cosmetics, toiletries products and other related products. Household products include the products which are useful to maintain the house like cleaning and decorating. It includes room scents or sprays, detergent powder, liquid detergent, soap noodles and related products.

Foods & Beverage

Personal Care

Household Care

Before 1979

1980 to 1999

2000 to 2017


1. Foods & Beverage Industry Popular foods & beverage companies in Bangladesh are Acme Agro Vet & Beverages Ltd, ACI Foods Limited, Akij Food & Beverage Ltd, Aarong, BD Foods Limited, Bashundhara Foods & Beverage Industries Limited, Bombay Sweets & Company Ltd, British American Tobacco Limited, Cocola Food Products Limited, Dhaka Tobacco Limited, Golden Harvest Agro Industries Limited, Globe Soft Drink Ltd, Haque Group of Industries, Ifad Foods Limited, Ispahani Foods Limited, Meghna Group of Industries, Nestle Bangladesh, New Zealand Dairy Products Bangladesh Limited, Nabisco Biscuits & Bread Factory Ltd, Olympic Industries Limited, Pran RFL Group, Partex Beverage Ltd, Perfetti Van Melle Private Limited, Prome Agro Foods Limited, Square Foods & Beverage, Sajeeb Group, Transcom Beverages and others.

1.1 Milk and Dairy Industry

Milk & Dairy Industry Overview Milk production is one of the important economic activities in Bangladesh, providing 3.6 million households with supplementary income. The dairy system in Bangladesh is characterized by small-scale operations, coupled with crops and other off-farm activities. Several government, NGO and private sector initiatives have made progress in transforming dairy into a more value-driven and market-oriented sector. The dairy market in Bangladesh is lucrative for investors given the country’s large population, rising incomes and evolving diet. Growth Drivers:

One of the highest cattle density in the world: 172 large ruminants per square kilometers in 2016-17

Rising demand for milk-based food products in daily consumption and as beverages

Low cost of input (raw materials, human resources etc.)

Introduction of Ultra High Temperature (UHT) milk, milk powder, yogurt, flavored milk products and other popular product varieties by dairy enterprises

Introduction of aseptic milk packaging leading to longer shelf life Investment Insights on Dairy Market In Bangladesh Within the formal dairy sector in Bangladesh, over 90% of the milk is processed as pasteurized packaged milk and only 10% is processed into cheese, butter, ghee and milk powder. Key leverage points for expanding the dairy market are cattle feed production, improved breeds of high yielding cows, milk collection points and dairy cold chain as well as product varieties. The supply for milk and related products are not enough to meet the demands. There is a huge gap between the demands and supplies of dairy products. Per Capita Milk Consumption in Bangladesh Currently, each Bangladeshi consumes 159 ml of milk (per capita) daily where the Food & Agriculture Organization suggests that daily milk consumption should be 250 ml (per capita) for an adult. Our neighbors India and Pakistan are consuming around 247 ml and 521 ml (per capita) daily respectively. As people are getting more conscious about the balanced food, it is expected to increase the milk consumptions day by day.

*Source: Daily Star, Dec 2016; Dhaka Tribune, June 2017; Department of Livestock Services, 2017

250

158

247

521

50

100

150

200

250

300

350

400

450

500

550

FAO Standard Bangladesh India Pakistan

Per Capita Milk Intake (in ML)

148.65

92.8355.82

Demand Supply Deficiency

Demand & Supply of Milk (in Lakh MT)

Source: Dept. of Livestock Services


Milk Production in Bangladesh Though, the milk production in Bangladesh is increasing but these quantity is not enough to meet the local demands. Hence, every year Bangladesh needs to Import a huge amount of liquid and powder milk. In 2008-09, milk production in Bangladesh was 2.29 mn metric tons whereas the production of milk in 2016-17 is 9.28 mn metric tons.

Milk Imports in Bangladesh: In 2016-17, Bangladesh imported 113 thousand tonne powder milk, worth BDT 35 to 45 billion10. So there is a good opportunity for the local dairy industries to contribute to this gap. Even if the local processing industries triple their output it would only offset the import.

Powder Milk: There are some local producers of powder milk like: Sanowara Corporation, Danish Condensed Milk and Meghna Group (Fresh milk powder) and others. Most of the powder milk brands available in Bangladesh import raw materials and distribute within Bangladesh. The basic information is as follows-

Average retail price of locally produced milk powder is USD 6.21/BDT 510 per kg (2016-17)

Average retail price of imported milk powder is USD 6.92/ BDT 570 per kg (2016-17)

Total import in 2016-17 is 113 thousand tonnes. Popular Powder Milk Brands & Prices in Bangladesh

Pasteurized Milk Brands & Prices:

Total number of commercial dairy firms in Bangladesh is 15-20.

Milk price at source (based on fat content) is BDT 45-55 per liter.

Average retail price is BDT 70 per liter (2016-17)

Flavored milk varieties include Chocolate, mango, banana and strawberry etc.

10 http://www.dhakatribune.com/opinion/op-ed/2017/06/24/milk-money/

No. Brand Name Country of Origin Price* (in BDT/KG)

Marketing/production by

01 Dano Denmark 600 Arla Foods & MMPL

02 Nido New Zealand 690 Nestle Bangladesh

03 Aarong Bangladesh 550 BRAC Dairy

04 Anchor New Zealand 600 New Zealand Dairy Products Ltd.

05 Diploma Australia 560 New Zealand Dairy Products Ltd.

06 Farmland New Zealand 525 New Zealand Dairy Products Ltd.

07 Pran Bangladesh 480 Pran RFL

08 Marks Australia 500 Abul Kair Group

09 Starship China 400 Abul Kair Group

10 Fresh China 460 Tanvir Foods ( Megna Group)

Source: EBLSL Research & chaldal.com :: ** Price varies on different criterions of milk ingredients

85 79105

130113

2012-13 2013-14 2014-15 2015-16 2016-17

Powder Milk Import ( in thousand tonnes)

Source: BBS 2017 & EBLSL Research

2.29 2.37 2.95 3.465.07 6.09 6.97 7.28

9.28

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Milk Production (in mn MT)

Source: Department of Livestock Services, 2017 & EBLSL Research


Pasteurized Milk Market Share: According to a research on the scenario of processed dairy products in Bangladesh conducted by FAO, the market share of pasteurized milk brands are as follows:

1.2 Biscuit & Bakery Industry Biscuits and confectionary items are considered as one of the preferable snacks of Bangladeshi consumers especially for the middle income class group who are driving the biscuits market to grow rapidly. The biscuits industry in Bangladesh comprised of organized industrialized manufacturers and unorganized small and local producers throughout the country. Stimulated by growing demand, particularly from the lower middle and middle income groups, a large number of firms have joined the foray in the last several years. Some old players have also expanded their production capacity. The biscuit market is growing mainly because of consumers' hunt for hygienically prepared foods. The market insiders believe that the biscuit & confectionary market will grow at a rate of 15% annually in the next 10-15 years where the organized segment is expected to grow at around 10%11. Market Size of Biscuits & Confectionary Industry in Bangladesh The current market size of Biscuit, Bakery and Confectionary items is BDT 50 to 60 billion. The market was earlier dominated by small bakeries. But now, about 40% to 50% of the total market shares are taken by the large and well-known brands of the country. At present, the annual market for branded biscuits is nearly BDT 30 billion12. Demand for biscuits is growing as entrepreneurs have shifted to automation in baking and consumers are looking for a variety of quality foods at low prices.

Market Share of local and Imported Biscuits The local manufacturers now meet 90% to 95% of the domestic demand and the rest is imported13. The local manufacturers have been able to win the confidence of consumers by improving food quality and keeping prices

11 http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864 12 http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864 13 Source: http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864

Brands Price (1ltr/BDT) Brands Price (1ltr/BDT) Milk Vita 68 Ultra 65 BRAC 65 Aftab 65 Pran UHT 80 Aarong UHT 80 Pran 65 RD Milk 65 Amo 65 Akij 65 Farm Fresh UHT 80 Savar 65 Source: EBLSL Research & chaldal.com

Major Classification Market share

Local Biscuits 90% to 95%

Imported Biscuits 5% to 10% Source: Daily Star, March 27, 2017

46.0%

24.8%

15.3%

6.1%1.5% 1.0% 1.5% 2.0% 0.5% 1.0%

-5.0%

5.0 %

15. 0%

25. 0%

35. 0%

45. 0%

Milk Vita Aarong Pran Milk Akij Milk Amo Milk Ultra Milk Aftab milk RD Milk Army milk Pabna Dairy

Market Share

Source: citeseerx & EBLSL Research

Current Market Size BDT 50 to 60

bn

15% expected growth in

coming years

Branded Biscuits Market Size BDT

30 bn

10% expected growth in

coming years

Source: Daily Star, March 27, 2017 & EBLSL

Research


reasonable. As a result, they have been able to sustain their position in the market by driving away imported products from India, Malaysia and Indonesia. Some firms even export biscuits.

At present, nearly 5,000 bread and baked goods makers, including 100 automatic and semi-automatic bakeries, are operating in this segment. Some large firms like Olympic, Pran make biscuits through fully automated machines.

Major Players in the Market Olympic Industries is the market leader having around 39% market share of the branded biscuits market. The following table contains the major market players in the market and their most popular brands:

No. Company Names Popular Brands

1. Olympic Nutty, Energy, Tip, Milk Marie, Queen Marie, Malai Cream, Orange, Nutty real peanut, Dry cake biscuit

2. Pran Special Toast, All Time Cookies, Dry Cake Biscuit, Sweet Toast

3. Goldmark Orange Cream, Milk Cookies, Coconut Cookies, Low Sugar Biscuit, Chocolate chips, Butter

4. Ifad Tea Time, Kaju Delight, Butter Delight, Choco Delight, Jeera Biscuit, Cheesy Bites

5. Kishwan Toast, Chocolate Cookies, Horlicks Biscuit, Ovaltin, Fiore Butter

6. Bangas Grand Choice, Choco Cream, Mango Slice, Pineapple

7. Danish Toast, Dry cake biscuit, Doreo, Danish Lexus, O La La Potato

8. Nabisco Glucose, Milk Cream, Crunchi, Elachi

9. Al-Amin Orbit, Cosmos, Deena, Pineapple, Racie

10. Cocola Sweet Toast, Chocolate Biscuit

11. Multi Marie Gold, Nimki

12. Haque Digestive, Mr. Cookie, Ding Dong, Milk Chocolate, Mr. coconut, Mr. Milk

13. Bengal Orange Cake, Big Bite

Source: EBLSL Research

1.3 Frozen Food Industry The global frozen food industry record exceeded USD 250 billion by the end of 2015 and in terms of volume the market was 43.5 billion kilograms in the same period14. Global frozen food market is expected to garner USD 306 billion by 2020, registering a CAGR of 4.1% during the forecast period 2015 - 202015. The deep frozen food products that can be stored and used over a long period are referred to as frozen foods. The most widely used frozen food products include frozen ready-to-eat meals, fruits & vegetables, meat & poultry, sea food, soups and similar array of products.

14 http://www.grandviewresearch.com/industry-analysis/frozen-food-market 15 https://www.alliedmarketresearch.com/frozen-food-market

15

35

50

Automated Factories in Bangladesh

Mega Factories Large Factories Medium Size Factories

Source: The Independent, May 7, 2017


Market of Ready-to-Cook & Processed Meat The rising demand for easy and hygienically-prepared foods among the urban middle class is pulling in large investors to the processed chicken and ready-to-cook frozen foods sector. The growth is initiating due to people’s rising interest in convenient foods16.

Market Share Breakdown Companies engaged in the business of processed meat and frozen snacks have different products in their portfolio to meet up the demand of different purposes of the customers. Golden Harvest is the market leader with 25% of the market share where the closest competitor Lamisa Foods has 15% market share. The market share break down of these companies in the frozen food industry is as follows:

Source: Golden Harvest Primary Research & EBLSL Research

Major Players in Processed Meat & Frozen Snacks Along with Golden Harvest Agro Industries Limited, there are some others companies producing varieties of frozen food products and processed meats in the consumer market. Brac Chicken, Pran RFL, Kazi farms, CP Bangladesh, Igloo Foods, KFC Bangladesh, Rich Foods & Lamisa Foods have different products to meet the diversified needs of the clients. Relevant company and their available products are as follows:

16 http://www.thedailystar.net/business/processed-chicken-market-heat-71871

Source: Daily Star & EBLSL Research

Market size for ready-to-cook food and frozen snacks is around BDT 2,000 million.

The market is growing at 20% per year.

The market is growing for last 10 years and Industry experts believe that the growing trend will sustain in coming years.

25%

15%13%

9% 8% 8% 7% 6%

9%

0%

5%

10%

15%

20%

25%

30%

GoldenHarvest

Lamisa Pran Kazi Farms Rich CP BRAC Igloo Others

M A R K E T S H A R E


1.4 Ice-Cream Industry The total market size of branded ice cream was around BDT 6.5 billion in 2013 but the current size of the industry is around BDT 10 billion17. The nature of the ice cream industry in Bangladesh is oligopoly. The key player in the market is Igloo. The ground-breaking ice-cream company in Bangladesh started its operation in 1964 in Chittagong. The company is now the market leader since 1997 having the market share of 36%. Polar came into the market in 1987 from the parent company Dhaka Ice Cream Industries Ltd. Polar tackled some inner management and financial complications and in 2009, and the whole brand changed that time. A foremost restoring of the brand and its products took place which got substantial responses from the customers which is replicated in their current market share of 26%. Bellissimo is comparatively a new player in the ice cream market, they started operations in 2013. They belong to Kazi Farm Group Ltd. Bellissimo currently holds 13% of the market share. The entry of Bellissimo has altered the dynamics of the industry as it presented many different new types of ice creams. The market players are now shifting attention to offering a varied range of products. Bloop belongs to parent company Golden Harvest and entered the market in the 1st week of April, 201318. The ice cream industry of Bangladesh relative to the GDP is on par with global market and higher than some of its neighbors. Major Market Players

17 http://www.thedailystar.net/news/brand-war-heats-up-in-ice-cream-market 18 https://www.coursehero.com/file/p7kumb7/The-current-size-of-the-ice-cream-market-of-Bangladesh-is-over-BDT-500-crores/

0.064%

0.031%

0.069%

0.053%

0.0 00%

0.0 10%

0.0 20%

0.0 30%

0.0 40%

0.0 50%

0.0 60%

0.0 70%

0.0 80%

Bangladesh India Europe World

Ice Cream Market as % of GDP

Source: Euromonitor & EBLSL Research

•Frozen Paratha, Samosa, Dal Puri, Aloo Paratha

•Chicken Nuggets, Chicken Samosa, Sausage, Meat Ball, Fish Ball, Fish Finger, Pop Chicken,Drumlets

Golden Harvest Agro Industries

•Chicken Nuggets, Salami Slice, Pepperoni Sausage

•Chicken Sausage, Chicken Pepperoni Slice, Chicken BBQ

BRAC Chicken

•Paratha, Singara, Samosa, Chatpoti, Spring Roll, Dal Puri, Popcorn, French Fry

•Chicken Sausage, Nuggets, Chicken Burger Patty, White Meat Ball

Pran RFL

•Paratha, Roll, Filo Pastry, Strips, Samosa, Aloo Puri

•Chicken Nuggets, Meat Balls, Sausage, Cutlets, Chicken Lollipop, Teasers

Kazi Farms

•Fried Chicken

•Frozen Chicken

CP Bangladesh

•Crispy Chicken, Hot Crispy, Hot Wings, Chicken Pop, Burger, Drumsticks,

•Chicken Sausage, Chicken Ball, Vegi Burger

Igloo Foods Limited

•Fried Chicken

KFC Bangladesh

•Plain Paratha, Family Paratha

•Chicken Sausage, Nuggets

Rich Foods

•Paratha, Aloo Puri, Potato Smiles, Roti, Singara, Samosa, French Fry

•Chicken Nuggets, Chicken Ball, Wonton, Chicken Pop

Lamisa Foods

•Chicken Sausage, Breaded Chicken Fillet, Chicken Singara, Chicken Nuggets

•Beef Singara

Bengal Meat



Igloo is the market leader and after Igloo, Polar is in the foray. There are some other popular ice cream brands in the country. People usually prefer branded ice cream. 4 out of 5 consumers care highly about brands in their purchasing decisions along with budget and quality. The key market players of the country are as follows:

Market Shares of Ice Cream Companies According to the available information in the market, Igloo is the market leader with 36% market share and Polar is in the channel with 26% market share. Golden Harvest Ice Cream holds around 12% market share where Bellissimo holds 13%, Kwality holds 11% and other firms hold 2% market share. The market shares based on available public information are as follows:

1.5 Tobacco Industry Growing population along with large number of adult and young aged groups are accelerating the pace of growth in tobacco industry The country has a population of 164.67 million and is expected to grow by 1.04% per year. There are an estimated 1 billion smokers worldwide, consuming around 6.5 trillion cigarettes annually. Approximately, 72% of the population of Bangladesh belongs to young and adult age group (age above 15 years). Meanwhile, with the increase income and purchase power, more and more people are upgrading from their traditional tobacco consumption, like bidi to Cigarettes.

36%

26%

13%

12%

11%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Igloo

Polar

Bellissimo

Bloop

Kwality

Others

Market Share of Ice Cream Brands

Source: EBLSL Research & Industry Player's Estimate

Chocbar, Mini Choc, Mini Max, Malai, Bar, Pista Kulfi, Cornelli, Firni, Ripple, Nawabi Mithai

Royal Magnum, Lolly, U & Me, Kheersa, Caramelo, Nolen Gur, Butterscotch

Robusto, Crunchy, Rocks, Shor Malai, Doi, Kheer, Googly, Carnival

Scoop, Shor Malai, Mango, Malai, Maria, Magic, Choc o Papa, Lemon o Tung, Conetastic, Exotic Vanilla

Supremo Bianco, Nano, Mango, Biscotto, Perfetto, Ripple, Hiney Almond, Classic Vanilla



The market for tobacco products can be classified based on age and gender of consumers. Currently, adult smoking counts for highest number of tobacco consumers while consumption of tobacco among the young age group growing. With over 43% of 115 million adults in Bangladesh consuming various tobacco products, the country has been one of the largest tobacco consuming countries in the world. In Bangladesh, as on April 2014,

Approximately 43.3% of adults (age 15+) in Bangladesh use tobacco products. Among youth between age group 13 to 15, 2% smoke cigarettes and 6% use tobacco products other than

cigarettes.- Smoking rates are much higher among men than women; an estimated 45% of men and 1.5 % of women

smoke. Rates of smokeless tobacco use are slightly higher among women than men (28% vs. 26%). Bidis, inexpensive hand-rolled cigarettes, account for 75% of the cigarettes sold in Bangladesh.

Cigarettes dominate among various forms of tobacco consumption The consumption of tobacco products takes place in several forms, which includes: Cigarettes, Bidis, Chewing tobacco (Loose leaf , Pellets, Plug, Twist), Cigars’ Blunts’ Cigarillos, Dokha, Roll-Your-Own cigars, Kreteks, Creamy snuff, Dipping tobacco, Extra-long cut, Dissolvable tobacco, Tobacco gum etc. Gul, jarda, sadapata and khainy are known as smokeless tobacco that largely consumed by the low income group of people. Smokeless tobacco includes products that are chewed, sucked, dipped, held in the mouth, or inhaled. Bidis are more popular among the poor in Bangladesh and account for 75% by volume of the cigarettes sold in the country. Cigarettes is the major form of modern day tobacco consumption. Based on consumers’ preferences and income group, the Cigarettes products can be divided into four categories in Bangladeshi tobacco market – Premium, High, Medium and Low segment.

An oligopolistic market, where only four companies control the total market The tobacco industry of Bangladesh is controlled by British American Tobacco (BATBC), Dhaka Tobacco (under Akij

Group), Abul Khair Tobacco and Nasir Tobacco. BATBC is the only multinational cigarette producing company having

the leadership position in the market while others are local conglomerate having diversified business presence in

the country. BATBC has active presence in all four categories of cigarettes in the market while Abul Khair Tobacco

Company goes for the medium and lower segments and Nasir Tobacco Industries competes only in the lower

segment. BATBC is specialized in producing cigarette only while other manufacturers also produces bidi.

Market Segmentation of Top Tobacco Brands

Premium High Medium Low

BATBC Benson &

Hedges

John Player Gold Leaf,

Pall Mall and Capstan

Star, Scissors,

Starlight

Bristol, Pilot and Hollywood

Dhaka Tobacco Marlboro Castle Navy Legend White, Surma and Diamond, Red

& White, Gold Mine, Sheikh and K2

Abul Khair Tobacco n/a n/a Marise Rally and Sun Moon

Nasir Tobacco

Industries

n/a n/a n/a Nasir Gold, Asia and Top 10

27.76%19.36%

39.73%

6.93% 6.23%

0-14 years: 15-24 years: 25-54 years: 55-64 years: >65 years:

Age Distribution Structure

Source: CIA (US Central Intelligence Agency) World fact book


Tobacco price trend in Bangladesh The price of tobacco leaf as well cigarette & other tobacco related products has been increased over the period due to increased tax and other duty as well as other factors. Over the year 2008 to 2016, nearly all the tobacco related products increased up to thrice.

1.6 Tea Industry

Tea is one of the most popular and preferred beverages around the world. Currently, more than 30 countries of the world are producing tea where India, China, Sri Lanka, Indonesia and Bangladesh are in good positions. Though Malinechera is the first commercial tea garden of Bangladesh which was established in Sylhet in 1857 but the history of tea gardening in Bangladesh started in 1840 with the establishment of a tea garden in Chittagong Club. Bangladesh is now one of the largest tea producing countries in the world having more than 172 commercial tea gardens and some of them are world famous for quality tea production. The tea industry employs more than 4 million people as labor force and produces 3% of the total tea produced in the world. Tea contributes 1% of the GDP of Bangladesh19. Sylhet, Habigang, Maulavi Bazar, Chittagong and Panchagarh are famous for tea production.

According to Bangladesh Tea Board, tea production target was 70.68 million kg in 2017, where actual production was 78.95 million kg. Bangladesh imports some value added tea from India, China & Kenya. On the other hand, Bangladesh exports tea to China, Japan, Saudi Arabia, Pakistan, United Arab Emirates, United States of America, Kuwait and some other countries.

The local consumptions of tea was BDT 13.74 billion in FY 2016-17 compared to BDT 12.76 billion in FY 2015-16. The local consumptions of tea have experienced 7.14% CAGR since FY 2009-10. Average price of per KG tea was BDT 189.89 in FY 2016-17 compared to BDT 190.40 in FY 2015-16.

Moreover, Bangladesh export tea to some countries including Japan, Kuwait, Saudi Arabia, Pakistan & USA. In FY 2016-17, total revenue generated from exporting tea was USD 4.19 million compared to USD 1.56 million in FY 2015-16. The price of per KG ‘Value Added Tea’ was USD 3.21 and per KG ‘Loose Tea’ was USD 1.70 in FY 2016-17.

19 https://www.tea.globaltradeconcern.com/

Annual Average Retail Prices (BDT) of Tobacco Products in Dhaka

Tobacco leaf-Motihari Cigarette-Gold leaf (King size filter tipped)

Cigarette-Star

Unit/ Year KG Packet of 20 Packet of 10

2008-09 150.0 49.2 13.5

2009-10 157.0 58.0 15.0

2010-11 153.3 68.3 18.5

2011-12 181.0 82.0 50.0

2012-13 288.3 98.7 57.1

2013-14 296.7 99.5 -

2014-15 378.2 114.6 54.6

2015-16 400.0 155.4 52.7 Source: Statistical Pocketbook of Bangladesh, BBS

8.48 10.07

8.96

12.96 11.09 11.64

12.76 13.74

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Local Consumption of Tea (in BDT billion)

Source: Bangladesh Tea Board & EBLSL Research

4.79

2.572.81

2.05

2.87

2.16

1.56

4.19

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Tea Export (in USD mn)

Source: Bangladesh Tea Board & EBLSL Research


Top 3 tea brands in Bangladesh

According to Bangladesh Brand Forum, Ispahani Mirzapore is the most preferred brand of tea by Bangladeshi consumers. In 2017, the top three brands of tea are on the chart.

In 2016, Finlay tea from The Consolidated Tea and Lands Company (Bangladesh) was in 3rd position of the most preferred tea brands in the country.

1.7 Drinks & Beverages

Bottled Water Mum is the market leader in bottled water segment. Moreover, Pran, Fresh, Jibon, Aquafina, Kinley, Shanti, Acme, Muskan, Ifad & Spa are the popular and available bottled water brands in Bangladesh. Top three brands of bottled water of 2017 are on the chart.

Health Food Drinks Horlicks from GSK Bangladesh is the market leader in this segment. Besides, Complan, Maltova, Tang, Foster Clarks are very popular health drink brands in Bangladesh. Top three brands of 2017 in this category are on the chart.

Juice Pran Frooto is the flagship brand of Pran Foods which is the market leader in Juice segment in Bangladesh. Other popular brands in this category are Frutika, Fazlee, Starship, Shezan, Nectar, Sajeeb, Danish and others. The top there brands of 2017 of this segment are on the chart.

Carbonated Soft Drinks In Bangladesh, Transcom Beverages, International Beverages Private Limited, Partex Beverages, Globe Beverage Company, Pran RFL Group, Akij Food & Beverages, Globe Soft Drinks Limited and AM Beverage Limited are engaged in the business of carbonated soft drinks. The popular brands of soft drinks are Pepsi, 7up, Cocacola, Sprite, Mirinda, Mountain Dew, RC Cola, Lemon, Virgin, Zam Zam Cola, Pran Up, Pran Cola, Maxx Cola, Moju, Clemon, Speed, URO Cola, URO Lemon, FizzUp, Royal Tiger Energy Drinks and others. 7up is the most preferred brand in Bangladesh. The top three preferred brands of carbonated soft drinks in Bangladesh is as follows:

M.M Ispahani Limited Unilever Bangladesh Abul Khair

Consumer Goods

Ltd

Partex Beverage Ltd Meghna Group of Industries Pran Foods

GSK Bangladesh Transcom Beverage GSK Bangladesh

Pran Foods Akij Food & Beverage Ltd Globe Soft Drinks Ltd

Transcom Beverage The Coca Cola Company The Coca Cola Company


1.8 Food Ingredients & Snacks Atta, Maida, Suzi Fresh is the market leader in this segment. The other key market players are Fresh (Meghna Group), Teer (City Group), Pusti (TK Group), ACI Pure (ACI), Sajeeb (Sajeeb Group), Ifad (Ifad Group), Fouzi (Sena Kalyan Sangstha) and other local brands. The top three brands of 2017 in this segment are on the chart.

Salt Salt Industry is the largest labor oriented cottage industry in Bangladesh. In 2017, 1.4 million tonnes of salt was produced in Bangladesh against the annual demand of 1.6 million tonnes20. Salt is produced from sea water by solar and lixiviation process (separating soluble from insoluble sunstances) in the seaside areas of the districts of Chittagong, Cox’s Bazar, Noakhali, Barishal, Khulna and adjoining off shore islands. Cox’s Bazar produces 95% of the total production of salt in the country. The key brands of the salt market are ACI Pure Salt, Molla Super Salt, Fresh Super Salt, Confidence Salt and others. The top three brands in this segment of 2017 are on the diagram.

Spice As an agriculture-based country, Bangladesh produces different spices. The market of processed spices are growing by 15% to 20%. The estimated market size of packed spices (which has replaced fresh spices) is around BDT 9 billion to 12 billion21. The branded spices are getting popular by branding efforts of the respective companies. The spices of Bangladesh are now exporting to some countries especially in Middle East, Malaysia and Australia. Radhuni, Pran, BD, Arku are the key players in the market. Radhuni has approximately 66% market share, Pran holds 19% market share, BD Food Holds 7% market share, Arku holds 3% market share and other brands hold 5% market share. The top three brands of 2017 in this segment are on the chart.

Edible Oil In Bangladesh, per capita edible oil consumption is 9.9 kg compared to 15 kg in India and 16.1 kg in Pakistan22. Edible oil consumption in Bangladesh is far below from the world average which suggests significant considerable growth potential for the edible oil industry. The growth of trademarked edible oils is anticipated to persist favorable with the support of the growth of the retail sector and increasing income levels. Every year Bangladesh imports more than 2 million tonnes of edible oil which costs around USD 1.5

20 https://thefinancialexpress.com.bd/economy/bangladesh-produces-14m-tonnes-salts-this-year-1503209483 21 http://www.thepages.com.bd/2017/03/17/spice-industry-great-opportunity-market-bangladesh-anika-fowzia/ 22 http://bida.portal.gov.bd/sites/default/files/files/bida.portal.gov.bd/page/f40752f4_ccac_45d4_9bc4_3367eb475e8a/ValueProposition_EdibleOil.pdf

Meghna Group City Group TK Group of Industries

ACI Limited Meghna Group Molla Group

Square Food & Beverage Pran Foods BD Foods

Bangladesh Edible Oil Ltd Meghna Group City Group

9.9 15 16.125 25.2

5061

Bangladesh India Pakistan China World USA EU

Per Capita Edible Oil Consumption (in KG)


billion23. Bangladesh usually imports around 80% of the total demand of edible oil in the country24. The top three brands of 2017 in this segment is on the diagram.

Sugar The sugar industry of Bangladesh is highly dependent on imports. Bangladesh imports 95% of its annual demand for the sweetener by importing from Brazil and Argentina25. Currently, there is a local demand for 50 to 60 thousand tonnes of sugar per month26. In 2017, total production of sugar was 125 thousand MT compared to 65 thousand MT a year earlier. The production of sugar fluctuates highly with the availability of raw materials that is sugar cane. In 2017, Bangladesh imported 2,097,000 MT sugar compared to 2,283,000 MT in 2016. The import of sugar has increased since 2010 when the import was 1,361,000 MT. The top three preferred brands of 2017 in this segment is as follows:

Noodles According to Euromonitor International the market value of the overall packaged food industry is around USD 21.2 billion. The Noodles and Pasta segment experienced a CAGR of 17% since 2013. The top players are Maggi (Nestle Bangladesh), Cocola (Cocola Food Products Ltd), Mr. Noodles (Pran), Doodles (New Zealand Dairy), Ifad (Ifad Foods), Sajeeb (Sajeeb Group), Mama (Presidents Foods), Knorr (Unilever), Chopstick (Square Foods) and others. The top three brands of 2017 in this segment are on the chart.

23 http://www.observerbd.com/2015/12/13/125763.php 24 http://www.thedailystar.net/news-detail-173242 25 http://www.thedailystar.net/business/city-group-deshbandhu-get-nod-export-sugar-1471171 26 http://www.bizbangladesh.com/business-news-1914.php

65

110

75

115140

8565

125

50

80

110

140

2010 2011 2012 2013 2014 2015 2016 2017

Sugar Production (in 000' MT)

Source: Index Mundi & EBLSL Research

1,361 1,537

1,700 1,547

2,085 1,982 2,283

2,097

2010 2011 2012 2013 2014 2015 2016 2017

Import of Sugar (in 000' MT)

Source: Index Mundi & EBLSL Research

Meghna Group ACI Limited City Group

Nestle Bangladesh Cocola Food Pran Foods


2. Beauty & Personal Care Industry The cosmetics and toiletries industry is mainly dominated by the international brands where quality issue surpasses the pricing of products amidst the factors influencing the buying decisions. Local manufacturers produce lower priced toiletries and perfumes under their own brands focusing middle to low price market niche. Local firms facing difficulties to compete with multinational brands due to trade liberalization. 7 firms control around 95% of the total market which are Unilever, Keya Cosmetics, Lily Cosmetics, Marks & Allys, Aromatic Cosmetics, Square Toiletries and Kohinoor Chemical Company (Source: Japan Bangladesh Business Centre). The cosmetics industry is highly import oriented. 90% of the cosmetic chemicals are imported from different countries. Bangladesh usually import from India, Singapore, Uganda, Thailand and China. Bangladesh imports 41% of total imported cosmetic goods from India27.

2.1 Toilet Soap The key players in this segment is Unilever which holds around 43% market share. Besides, Keya Cosmetics, Lily Cosmetics and Kohinoor Chemical Company hold 10% market share each. The most popular brands are Lux, Lifebuoy, Sandalina, Meril, Keya, Aromatic, Lily, Tibet, Camelia, Dettol, Savlon, Dove, Ice Cool, Cosco and others. The top three brands of 2017 are on the diagram.

2.2 Fairness Cream & Lotion Unilever Bangladesh is the market leader in this segment. Furthermore, the most available brands are Himalaya, Garnier, Lotus, Olay, White Pearl, Clean & Clean, Vivel, Nivea, Enami Fair & Handsome, White & Spa, Loius and others. The top three preferred brands of 2017 was from Unilever Bangladesh Limited. They are Fair & Lovely Advanced Multivitamin, POND’S and Fair & Lovely Men Max Fairness.

2.3 Oral Care There are many brands of toothpaste that are available in Bangladesh. Some brands are produced locally and some of them are imported from different countries. The popular toothpaste brands are Close Up, Pepsodent, White Plus, Mediplus DS, Keya Active, am pm, Meril, Cute Smokers, Fresh gel, Everyday Super Mint, Dabur Meswak, Sensodyne and Colgate. The top three brands of 2017 are on the diagram.

27 https://tradingeconomics.com/bangladesh/imports/essential-oils-perfumes-cosmetics-toileteries

Unilever Bangladesh Unilever Bangladesh Kohinoor Chemical Company

Ltd

Unilever Bangladesh Unilever Bangladesh Unilever Bangladesh

Unilever Bangladesh Unilever Bangladesh Anfords Bangladesh Ltd

41.0%

24.0%7.7%

5.9%

4.2%

3.2%

14.0%Cosmetics Imports Concentration

India Singapore Uganda Thailand China UAE Others

Source: UN COMPTRADE & EBLSL Research


2.4 Shampoo Available and popular brands of Shampoo in Bangladesh are Sunsilk, Dove, Clear, Revive, Select Plus, Head &

Shoulders, Vatika, Dabur Amla, L’OREAL and Kumarika. The top three brands of shampoo of 2017 are as follow:

2.5 Hair Oil Hair oil market is divided in some sub categories. They are Coconut based oil, Amla based oil, Light Hair oil, Cooling oils and others special purpose oils. From the Indian market of hair oil, we can get a holistic scenario of hair oil market in South Asian countries including Bangladesh. Coconut based oils hold 46% market share of the total hair oil market where Light hair oil holds 16%, Amla based oil holds 15% and cooling oil holds 11% market share (Source: Value Research Stock Advisor). Moreover, the global coconut based oils industry is expected to grow at 11% in coming years28. The market of coconut oil is huge in Asia pacific region compared to Europe or North American countries. In Bangladesh, the most popular brands are Parachute, Jui, Kumarika, Dabur Amla, Bajaj Almond Drops, Emami Oils, Dabur Vatika, Jojoba Oil, Castor Oil, Nihar Amla, Tibet and others. The top three brands of 2017 in this category are on the chart.

3. Household Care Industry & Miscellaneous

According to Euromonitor International, the global home care industry witnessed 5% growth in 2016 and reached at USD 143 billion. Home care industry in Asia pacific region experienced 5.70% YoY growth in FY 2016-17. Online shopping is a major catalyst which driving the home care industry worldwide. Tissue & Hygiene products noted 205% CAGR and Home Care products recorded 142% CAGR since 2012 to 2016 which traded through internet retailing29.

3.1 Laundry Detergent Most popular and available brands of laundry detergent in Bangladesh are Wheel, Rin Power White, Surf Excel, Jasmin, Mr. White, Smart, Ray, Fast Wash, Jet, Tibet, Rocket, Chaka, Keya, Ghari, Tide and others. The top three preferred brands of 2017 in this category are on the chart.

28 https://www.researchnester.com/reports/virgin-coconut-oil-market-global-demand-analysis-opportunity-outlook-2023/253 29 https://blog.euromonitor.com/2017/06/top-trends-home-care-2017.html


Marico Bangladesh Ltd Square Toiletries Ltd Hemas Manufacturing Ltd



3.2 Toilet Cleaner Popular brands of toilet cleaner in Bangladesh are Harpic, Clean Master, Shakti, Lysol, Swift, Vanish, Tixol, White, Harpoon, Finpic and Ozol. The top three brand in this category are on the chart.

3.3 Mosquito Aerosol Most popular mosquito aerosol brands are Xpel (Square Toiletries), ACI Mosquito Aerosol Spray (ACI), Hit (Godrej) and Mortein (Reckitt Benckiser). Xpel is the market leader in this segment.

3.4 Liquid Antiseptic Savlon is the market leader in this sub category and one of the most preferred brands of 2017. Then Dettol holds the second position in this sector. Other available brands available in Bangladesh are Lizol, Zici, Midas, Suthol, Lifebuoy (hand wash), Shinex and Bionil. The top two brands of 2017 are on the diagram.

3.5 Plastic Goods In Bangladesh, there are 3,000 small, medium and large plastic goods manufacturing firms which has directly or indirectly employed 1 million workforce30. The plastic industry of Bangladesh has been growing at around 20% a year. According to Bangladesh Plastic Goods Manufacturers & Export Association, the domestic market size of plastic goods is BDT 250 billion in FY 2017-18. The average Plastic consumption in Bangladesh is about 2 kg per person compared to 6 kg in India and 10 kg in Southeast Asia31. Currently Bangladesh produces 142 items and exports to USA, Canada, China, India, Nepal and Europe. The global plastic market size is around USD 546 billion where Bangladesh’s market share is only 0.6% (Source: Daily Star, March 2018). The top three brands of 2017 in this sector are as follow:

30 http://bpgmea.org.bd/v2/index.php/bpgmea 31 http://www.thedailystar.net:8080/business/plastic-industry-shows-promise-demand-rises-1550146

Reckitt Benckiser Bangladesh Kohinoor Chemical Company Square Toiletries Ltd

ACI Limited Reckitt Benckiser Bangladesh Ltd

RFL Plastics Limited Bengal Plastic Partex Plastics Limited


Supply Chain Management of Consumer Goods In Bangladesh, most of the consumer goods are distributed through Wholesaler Channel and Retailer Channel. Products like laundry detergent, toilet soap, fairness cream, toothpastes, shampoo, hair oil, spice, salt, edible oil are distributed through Wholesaler Channel. In Retailer channel, ice creams, beverages are distributed. In agent channel, agents or brokers help to distribute goods to the wholesalers and retailers. Products such as footwear, refrigerator, plastic goods, paints, cement, and tiles are distributed through this process.

Capital Market Performance FMCG Companies that are traded in DSE & CSE are mainly from Food & Allied Sector as well as Pharmaceuticals & Chemicals Sector. The FMCG companies are- Agricultural Marketing Company Limited (PRAN), Apex Foods Limited (APEXFOODS), Bangas Limited (BANGAS), British American Tobacco Bangladesh Company Limited (BATBC), Fine Foods Limited (FINEFOODS), Fu Wang Food Limited (FUWANGFOOD), Golden Harvest Agro Industries Limited (GHAIL), National Tea Company Limited (NTC), Olympic Industries Limited (OLYMPIC), Rangpur Dairy & Food Products Limited (RDFOOD), Rangpur Foundry Limited (RANFOUNDRY), ACI Limited (ACI), GlaxoSmithKline Bangladesh Limited (GLAXOSMITH), Kohinoor Chemicals Company Limited (KOHINOOR), Reckitt Benckiser Bangladesh Ltd (RECKITTBEN) and others. Some selected stocks (blue chips) have been discussed in this segment.

Shareholding Structure The shareholding structures (as on 31 May 2018) of some selected companies are as follows:

Tickers Sponsor/Director Govt. Institute Foreign Public

ACI 45.48% 0.00% 28.62% 0.00% 25.90%

GLAXOSMITH 81.98% 0.00% 15.95% 0.91% 1.16%

KOHINOOR 48.72% 0.00% 14.10% 0.04% 37.14%

MARICO 90.00% 0.00% 2.74% 6.53% 0.73%

RECKITTBEN 82.96% 3.77% 5.97% 2.70% 4.60%

AMCL(PRAN) 40.15% 0.00% 13.17% 0.00% 46.68%

GHAIL 33.03% 0.00% 44.56% 0.00% 22.41%

OLYMPIC 27.77% 0.00% 13.03% 44.35% 14.85%

NTC 50.72% 4.33% 9.37% 0.00% 35.58%

BATBC 72.91% 0.64% 10.51% 15.21% 0.73%

Manufacturer Retailer Consumer

Retailer Channel

Wholesaler Channel

Wholesaler Manufacturer Retailer Consumer


Comparative Position in the Capital Market

ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN

Current Price 344.2 1,441.3 424.2 1,158.4 1,785.5

52 Week Range 329.9-638.4 1400.0-1700.10

365.0-482.0 1000.0-1293.7

1470.2-2280.0

Market Cap. (in BDT mn) 16,590.4 17,361.9 5,945.6 36,489.6 8,436.5

Paid Up Capital (in BDT mn) 482.0 120.5 140.2 315.0 47.3

No. of Shares (in mn) 48.2 12.0 14.0 31.5 4.7

Free Float (in mn) 26.8 2.2 7.2 3.2 0.8

Market Weight 0.43% 0.45% 0.16% 0.95% 0.22%

Current PE 28.8 31.4 41.5 22.2 60.8

1 Year Avg. Turnover ( In BDT million)

39.97 1.12 3.27 2.43 2.15

1 Year Average Volume 81,195 735 7,785 2,139 1,154

1 Year Return -33.41% -1.97% 5.68% 12.96% 18.72%

AMCL(PRAN) GHAIL OLYMPIC NTC BATBC

Current Price 230.0 38.2 231.1 637.0 3,455.0

52 Week Range 205.1-246.9 35.0-49.5 228.0-296.0 561.0-690.7 2750.0-3838.0

Market Cap. (in BDT mn) 1,840.0 4,164.1 46,205.9 4,204.2 207,300.0

Paid Up Capital (in BDT mn) 80.0 1,090.1 1,999.4 66.0 600.0

No. of Shares (in mn) 8.0 109.0 199.9 6.6 60.0

Free Float (in mn) 4.8 73.0 144.4 3.3 16.3

Market Weight 0.05% 0.11% 1.21% 0.11% 5.41%

Current PE 28.2 23.1 25.8 51.4 18.9

1 Year Avg. Turnover ( In BDT million)

5.15 33.09 22.43 9.02 6.99

1 Year Average Volume 22,946 756,742 81,254 14,430 2,127

1 Year Return 4.28% -11.37% -14.47% 5.79% 26.49%

Dividend History

2013 2014 2015 2016 2017

ACI 20%B 100%C/15%B - 115%C/10%B* 115%C/10%B

GLAXOSMITH 300%C 420%C 550%C 500%C 550%C

KOHINOOR 25%B 25%B 30%C 10%C/20%B 15%C/15%B

MARICO 150%C 900%C 425%C 450%C 500%C

RECKITTBEN 400%C 550%C 650%C 775%C -

AMCL(PRAN) - - 32%C 32%C 32%C

GHAIL 10%C/5%B 10%C 10%B 10%B 10%B

OLYMPIC 10%C/50%B 20%C/35%B 30%C/20%B 40%C/5%B 45%C

NTC - 20%C - 30%C* 18%C

BATBC 620%C 550%C 550%C 600%C 600%C


Rebased Performance of FMCG Companies & DSEX



50

100

150

200

250

300

14-Jul-14 14-Jan-15 14-Jul-15 14-Jan-16 14-Jul-16 14-Jan-17 14-Jul-17 14-Jan-18

Rebased Performance with DSEX

DSEX ACI AMCL(PRAN) BATBC GHAIL GLAXOSMITH

20

100

180

260

14-Jul-14 14-Nov-14 14-Mar-15 14-Jul-15 14-Nov-15 14-Mar-16 14-Jul-16 14-Nov-16 14-Mar-17 14-Jul-17 14-Nov-17 14-Mar-18

Rebased Performance with DSEX (Cont'd)

DSEX KOHINOOR MARICO NTC OLYMPIC RECKITTBEN


STATEMENT OF COMPREHENSIVE INCOME (In BDT Million)

2016-17 2017 2016-17 2016-17 2016 ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN

BDT Million

Gross Turnover 47,668.03 6,796.56 3,393.19 6,916.11 3,326.62

Value Added Tax - - - - -

Net Turnover 47,668.03 6,796.56 3,393.19 6,916.11 3,326.62

Cost of Goods Sold 33,563.74 4,161.05 2,784.39 3,710.29 1,548.20

Gross Profit 14,104.28 2,635.51 608.79 3,205.82 1,778.42

Other Operating Income/Loss 82.48 26.18 - (8.77) -

Total Operating Income 14,186.76 2,661.69 608.79 3,197.05 1,778.42

Operating Expenses 10,901.74 1,776.79 400.25 1,338.60 1,306.70

Selling/Distribution Expense 10,901.74 1,330.68 345.36 537.61 1,306.70

Administrative Expense - 446.12 54.88 800.98 -

Profit from Operations 3,285.02 884.89 208.55 1,858.45 471.71

Financial Expense 1,457.82 - 7.76 - -

Financial Income - 62.71 - 68.52 9.56

Non-operating Income 403.90 - 7.85 - -

Non-operating Loss - - 2.38 - -

Share of Profit from Associates 143.91 - - - -

Profit Before WPPF 2,375.01 947.60 206.26 1,926.97 481.28

Contribution to WPPF 186.02 - 9.82 - 22.92

Profit Before Tax 2,188.99 947.60 196.44 1,926.97 458.36

Current Tax 1,166.43 278.30 50.57 486.77 162.27

Deferred Tax 13.39 - (0.93) - -

Net Profit After Tax 1,035.95 669.30 146.80 1,440.19 296.09

Non-Controlling Interest (29.21)

Total Comprehensive Income 1,065.16 669.30 146.80 1,440.19 301.37

Number of Shares 43.82 12.05 12.19 31.50 4.73

EPS (in BDT) 24.31 55.56 12.04 45.72 62.66


STATEMENT OF COMPREHENSIVE INCOME (CONT’D) (In BDT Million)

2016-17 2016-17 2016-17 2016-17 2017


BDT Million

Gross Turnover 2,380.34 1,526.71 11,290.56 985.67 165,633.76

Value Added Tax - - - - 121,879.99

Net Turnover 2,380.34 1,526.71 11,290.56 985.67 43,753.78

Cost of Goods Sold 1,925.53 829.11 7,523.12 688.66 23,890.90

Gross Profit 454.80 697.60 3,767.44 297.01 19,862.88

Other Operating Income/Loss - 41.11 - - -

Total Operating Income 454.80 738.71 3,767.44 297.01 19,862.88

Operating Expenses 261.43 227.02 1,614.31 192.62 5,936.15

Selling/Distribution Expense 116.64 166.10 1,322.22 34.17 5,936.15

Administrative Expense 144.79 60.92 292.09 158.44 -

Profit from Operations 193.38 511.69 2,153.13 104.39 17,802.42

Financial Expense 119.43 262.42 118.23 34.08 185.29

Financial Income - 1.23 - - -

Non-operating Income 2.37 - 299.19 10.42 24.47

Non-operating Loss - - - - -

Share of Profit from Associates - - - - -

Profit Before WPPF 76.32 250.51 2,334.08 80.73 17,641.60

Contribution to WPPF 3.63 12.27 111.14 - 882.08

Profit Before Tax 72.68 238.23 2,222.94 80.73 16,759.52

Current Tax 20.40 52.89 565.60 5.98 8,121.47

Deferred Tax 2.65 - 13.94 4.65 808.20

Net Profit After Tax 54.94 185.34 1,643.41 79.40 7,829.86

Non-Controlling Interest - 1.71 - - -

Total Comprehensive Income 54.94 187.05 1,643.41 79.40 7,829.86

Number of Shares 8.00 99.10 199.94 6.60 60.00

EPS (in BDT) 6.87 1.89 8.22 12.03 130.50


STATEMENT OF FINANCIAL POSITION (In BDT Million)

2016-17 2017 2016-17 2016-17 2016

BDT Million ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN

Non-Current Assets: 20,653.61 778.32 467.54 730.99 285.09

Property, Plant and Equipment 18,984.70 694.25 312.85 593.54 258.76

Capital Work-in-Progress - - - - -

Intangible Assets, net 85.91 51.64 7.14 9.12 -

Investment in Marketable Securities 1,067.89 - 147.54 10.37 -

Investment in Associates/Subsidiary - - - - -

Other Non-Current Assets 515.12 32.43 - 76.76 26.33

Current Assets: 26,316.41 5,465.49 1,063.27 3,021.12 1,156.70

Inventories 10,550.94 920.53 478.09 1,348.93 295.73

Trade Debtors 8,530.05 1,014.51 2.17 - 16.41

Other Debtor 912.54 4.03 - - -

Advance & Deposits 4,797.85 - 315.98 193.92 75.16

Investment in FDR - - 28.68 - -

Cash and Cash Equivalents 1,511.75 3,526.42 234.47 166.83 769.39

TOTAL ASSETS 46,970.02 6,243.82 1,530.81 3,752.10 1,441.79

Shareholders' Equity: 10,639.06 2,630.35 554.07 1,580.11 236.36

Share Capital 438.2 120.47 121.88 315.00 47.25

Share Premium 402.31 - - 252.00 -

General Reserve 4,579.91 5.00 - - -

Revaluation Reserve - 59.48 7.14 - -

Retained Earnings 5,153.14 2,445.24 425.05 1,013.11 189.11

Non-Controlling Interest 65.5

Non-Current Liabilities: 6,663.79 20.24 371.89 44.30 74.46

Long Term Loans - Secured 5,151.45 - 326.09 - -

Net defined benefit plans 788.03

Other Loan -

Deferred Tax Liability 724.31 17.13 29.02 - -

Current Liabilities: 29,667.17 3,593.23 604.85 2,127.70 1,130.97

Operational Overdraft 1,696.74

Short Term Bank Loans 19,675.65 - 30.89 - -

Long Term Loans - Current Portion -

Trade Creditors 2,352.03 3,471.32 404.74 1,740.56 1,022.88

Other Creditors 3,325.12

Current Tax Liabilities 2,617.63 118.62 - 381.92 105.50

Accrued Expenses - - 155.49 - -

Provision for WPPF - - - - 2.59

Unclaimed Dividend - - 13.73 - -

Other Debts - 3.29 - 5.22 -

Total Shareholders’ Equity & Liability 46,970.02 6,243.82 1,530.81 3,752.10 1,441.79

NAVPS 242.79 218.35 45.46 50.16 50.02


STATEMENT OF FINANCIAL POSITION CONT’D (In BDT Million)

2016-17 2016-17 2016-17 2016-17 2017

BDT Million AMCL(PRAN) GHAIL OLYMPIC NTC BATBC

Non-Current Assets: 474.19 2,371.21 2,363.83 1,730.82 20,915.16

Property, Plant and Equipment 474.19 1,051.27 1,907.12 1,641.79 20,915.16

Capital Work-in-Progress - 488.91 450.26 37.58 -

Intangible Assets, net - 55.15 6.45 - -

Investment in Marketable Securities - - - - -

Investment in Subsidiary - 758.35 - - -

Other Non-Current Assets - 17.52 - 49.44 -

Current Assets: 988.83 1,569.75 6,756.49 402.13 25,499.35

Inventories 547.97 183.54 889.66 211.34 17,469.09

Trade Debtors 140.56 1,091.57 163.38 43.94 2,315.46

Other Debtor - - - 0.92 -

Advance & Deposits 236.57 281.21 1,360.61 37.63 4,736.63

Investment in FDR - - 4,095.49 - -

Cash and Cash Equivalents 63.72 13.43 247.35 59.54 978.17

TOTAL ASSETS 1,463.02 3,940.95 9,120.32 2,132.95 46,414.51

Shareholders' Equity: 573.79 2,199.51 5,412.85 943.71 23,112.44

Share Capital 80 990.99 1,999.39 66 600.00

Share Premium 40 236.78 - - -

General Reserve - - - - 64.9

Revaluation Reserve 15.66 278.35 - 860.11 -

Retained Earnings 438.13 693.4 3,413.46 17.6 22,447.54

Non-Controlling Interest - - - - -

Non-Current Liabilities: 163.4 737.05 298.82 596.37 3,704.68

Long Term Loans - Secured 148.83 641.14 176.15 239.17 -

Net Defined Benefit Plans - - - - 869.11

Other Loan - 1.86 14.97 0.25 -

Deferred Tax Liability 14.58 94.04 107.7 39.27 2,835.57

Current Liabilities: 725.83 1,004.39 3,408.64 592.87 19,597.39

Operational Overdraft - - - - 3,057.91

Short Term Bank Loans 609.19 757.99 846.44 460.04 -

Long term loans- current portion 27.86 101.22 144.8 - -

Trade Creditors 1.98 30.86 529.2 108.34 10,101.62

Other Creditors - - 15.78 - -

Current Tax Liabilities 34.91 - 1,138.14 - 5,364.70

Accrued Expenses 8.41 113.09 58.9 - 1,073.16

Provision for WPPF 4.37 - 352.48 - -

Unclaimed Dividend 5.98 - 111.63 18.94 -

Other Debts 28.03 1.23 25.41 5.55 -

Total Shareholders’ Equity & Liability 1,463.02 3,940.95 9,120.32 2,132.95 46,414.51

NAVPS 71.72 22.20 27.07 142.99 385.21


RATIO ANALYSIS

2016-17 2017 2016-17 2016-17 2016

ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN

Liquidity Ratios

Current Ratio 0.89 1.52 1.76 1.42 1.02

Quick Ratio 0.53 1.26 0.97 0.79 0.76

Cash Ratio 0.05 0.98 0.39 0.08 0.68

Operating Efficiency Ratios

Inventory Turnover Ratio 5.03 7.97 5.45 5.30 11.50

Receivable Turnover Ratio 6.61 6.88 716.22 - 237.52

Average Collection Period (Days) 54.49 52.34 0.50 - 1.52

Inventory Conversion Period(Days) 71.57 45.19 66.06 67.96 31.32

Operating Cycle (Days) 126.06 97.53 66.56 - 32.83

A/C Payable Turnover Ratio 16.52 1.35 6.40 2.42 1.85

Payables Payment Period (Days) 21.79 266.46 56.24 148.67 194.85

Cash Conversion Cycle (Days) 104.27 (168.93) 10.33 - (162.02)

Total Asset Turnover 114.81% 117.32% 209.52% 190.54% 273.37%

Fixed Asset Turnover 284.49% 973.64% 1067.36% 1163.06% 1551.88%

Operating Profitability Ratios

Gross Profit Margin (GPM) 29.59% 38.78% 17.94% 46.35% 53.46%

Operating Profit Margin (OPM) 6.89% 13.02% 6.15% 26.87% 14.18%

Pre Tax Profit Margin 4.59% 13.94% 5.79% 27.86% 13.78%

Net Profit Margin (NPM) 2.17% 9.85% 4.33% 20.82% 8.90%

Return on Total Assets (ROA) 2.50% 11.55% 9.06% 39.68% 24.33%

Return on Equity (ROE) 10.11% 25.66% 30.22% 87.58% 134.04%

Leverage Ratios

Total Debt to Equity 249.31% 0.00% 64.43% 0.00% 0.00%

Debt to Total Assets 56.47% 0.00% 23.32% 0.00% 0.00%

Times Interest Earned (TIE)

2.25 - 26.88 - -

Growth Rates

EPS Growth Rate -50.81% 3.84% 23.05% 1.85% 6.69%

Dividend Growth Rate 0.00% -9.09% 50.00% 11.11% 19.23%

Sales Growth Rate 45.22% 8.16% 13.25% -2.12% 15.33%

Gross Profit Growth Rate 36.46% 7.57% 13.17% 0.78% 18.83%

EBIT Growth Rate 35.08% 12.47% 9.04% 2.70% 16.47%

Net Income Growth Rate -49.98% 3.84% 23.05% 1.85% 6.69%

Dividend Payout Ratio 103.29% -12.45% 21.90% 9.09% 11.75%

Retention Rate -31.33% -458.23% -2.49% 3736.89% 121.89%

Total Asset Growth Rate 30.22% 16.86% -10.39% 6.98% 45.35%

Valuation Ratios

P/B (price to book) Ratio 2.13 6.81 9.19 20.37 30.09

Book Value Per Share 242.79 218.35 45.46 50.16 50.02

EPS 24.31 55.56 12.04 45.72 62.66

Dividend per Share 11.50 50.00 1.50 50.00 77.50

Dividend Payout Ratio 0.47 89.99% 12.45% 109.36% 123.68%


Retention Rate 0.53 10.01% 87.55% -9.36% -23.68%

P/E Ratio 21.25 27.91 34.67 22.35 24.02

EV/EBITDA 14.52 16.25 24.99 17.23 13.45

EV/Sales 1.00 2.12 1.54 4.63 1.91

Price/Sales 0.47 2.64 1.50 4.65 2.14

Tobin's q 2.13 6.81 9.19 20.37 30.09

Sales/ Share 1,087.80 564.19 278.42 219.56 704.05

Other Data

Stock price- Period End 516.50 1550.80 417.60 1,021.70 1,505.10

Number of shares (mn) 44 12 12 32 5

Market Cap (BDT mn) 22,633 18,682 5,090 32,184 7,112

EBITDA (BDT mn) 3,285 885 209 1,858 472

EV (BDT mn) 47,711 15,155 5,212 32,017 6,342

DUPONT ANALYSIS

Net Profit AT/Sales 2.17% 9.85% 4.33% 20.82% 8.90%

Sales/Total Assets 114.81% 117.32% 209.52% 190.54% 273.37%

ROA 2.50% 11.55% 9.06% 39.68% 24.33%

Net Profit AT/Total Assets 2.50% 11.55% 9.06% 39.68% 24.33%

Total Assets/Stockholder’s Equity 4.05 2.22 3.33 2.21 5.51

ROE 10.11% 25.66% 30.22% 87.58% 134.04%

Extended DUPONT ANALYSIS

Net Profit/Pretax Profit 47.33% 70.63% 74.73% 74.74% 64.60%

Pretax Profit/EBIT 66.64% 107.09% 94.19% 103.69% 97.17%

EBIT/Sales 6.89% 13.02% 6.15% 26.87% 14.18%

Sales/Assets 114.81% 117.32% 209.52% 190.54% 273.37%

Assets/Equity 4.05 2.22 3.33 2.21 5.51

ROE 10.11% 25.66% 30.22% 87.58% 134.04%


RATIO ANALYSIS

2016-17 2016-17 2016-17 2016-17 2017


Liquidity Ratios

Current Ratio 1.36 1.56 1.98 0.68 1.30

Quick Ratio 0.61 1.38 1.72 0.32 0.41

Cash Ratio 0.09 0.01 0.07 0.10 0.05

Operating Efficiency Ratios

Inventory Turnover Ratio 4.26 10.00 15.35 4.62 3.30

Receivable Turnover Ratio 18.39 2.00 67.67 18.44 30.77

Average Collection Period (Days) 19.57 179.62 5.32 19.52 11.70

Inventory Conversion Period(Days) 84.54 35.98 23.45 77.94 108.94

Operating Cycle (Days) 104.11 215.60 28.77 97.45 120.64

A/C Payable Turnover Ratio 834.35 22.03 13.58 4.64 2.97

Payables Payment Period (Days) 0.43 16.34 26.51 77.64 121.32

Cash Conversion Cycle (Days) 103.68 199.27 2.26 19.81 (0.69)

Total Asset Turnover 162.91% 43.58% 134.72% 46.88% 127.11%

Fixed Asset Turnover 467.27% 154.88% 631.02% 62.01% 286.09%

Operating Profitability Ratios

Gross Profit Margin (GPM) 19.11% 45.69% 33.37% 30.13% 47.69%

Operating Profit Margin (OPM) 8.12% 33.52% 19.07% 10.59% 34.26%

Pre Tax Profit Margin 3.05% 15.60% 19.69% 8.19% 32.25%

Net Profit Margin (NPM) 2.31% 12.14% 14.56% 8.06% 15.07%

Return on Total Assets (ROA) 3.76% 5.29% 19.61% 3.78% 19.15%

Return on Equity (ROE) 9.83% 8.80% 33.05% 8.61% 37.29%

Leverage Ratios

Total Debt to Equity 136.96% 68.21% 21.57% 74.09% 13.23%

Debt to Total Assets 53.72% 38.07% 12.80% 32.78% 6.59%

Times Interest Earned (TIE)

1.62 1.95 18.21 3.06 96.08

Growth Rates

EPS Growth Rate 3.66% 4.63% 1.04% -40.05% 3.26%

Dividend Growth Rate 0.00% - 12.50% - 9.09%

Sales Growth Rate 13.81% 6.94% 2.97% 2.75% 18.76%

Gross Profit Growth Rate 11.96% 6.58% 2.08% -12.91% 24.77%

EBIT Growth Rate 1.62% 6.15% 1.73% -36.00% 27.83%

Net Income Growth Rate 3.66% 5.58% 1.17% -40.05% 3.26%

Dividend Payout Ratio -3.53% - 11.34% - 5.64%

Retention Rate 3.30% 0.00% -10.97% -14.96% -4.35%

Total Asset Growth Rate 0.26% 28.58% 19.36% 2.93% 31.31%

Valuation Ratios

P/B (price to book) Ratio 3.02 2.07 10.29 4.06 8.83

Book Value Per Share 71.72 22.20 27.07 142.99 385.21

EPS 6.87 1.89 8.22 12.03 130.50

Dividend per Share 3.20 - 4.50 1.80 60.00

Dividend Payout Ratio 46.60% 0.00% 54.75% 14.96% 45.98%

Retention Rate 53.40% 100.00% 45.25% 85.04% 54.02%


P/E Ratio 31.53 24.37 33.88 48.28 26.07

EV/EBITDA 12.69 11.82 26.30 42.85 11.58

EV/Sales 1.03 3.96 5.01 4.54 3.97

Price/Sales 0.73 2.99 4.93 3.89 3.93

Tobin's q 3.02 2.07 10.29 4.06 8.83

Sales/ Share 297.54 15.41 56.47 149.34 866.06

Other Data

Stock price- Period End 216.50 46.00 278.50 580.80 3,401.60

Number of shares (mn) 8 99 200 6.7 60

Market Cap (BDT mn) 1,732 4,559 55,683 3,833 204,096

EBITDA (BDT mn) 193 512 2,153 104 17,802

EV (BDT mn) 2,454 6,047 56,618 4,473 206,176

DUPONT ANALYSIS

Net Profit AT/Sales 2.31% 12.14% 14.56% 8.06% 15.07%

Sales/Total Assets 162.91% 43.58% 134.72% 46.88% 127.11%

ROA 3.76% 5.29% 19.61% 3.78% 19.15%

Net Profit AT/Total Assets 3.76% 5.29% 19.61% 3.78% 19.15%

Total Assets/Stockholder’s Equity 2.61 1.66 1.69 2.28 1.95

ROE 9.83% 8.80% 33.05% 8.61% 37.29%

Extended DUPONT ANALYSIS

Net Profit/Pretax Profit 75.59% 77.80% 73.93% 98.36% 46.72%

Pretax Profit/EBIT 37.59% 46.56% 103.24% 77.34% 94.14%

EBIT/Sales 8.12% 33.52% 19.07% 10.59% 34.26%

Sales/Assets 162.91% 43.58% 134.72% 46.88% 127.11%

Assets/Equity 2.61 1.66 1.69 2.28 1.95

ROE 9.83% 8.80% 33.05% 8.61% 37.29%

DISCLAIMER This document has been prepared by the Research Team of EBL Securities Limited (EBLSL) for information only of its clients residing both in Bangladesh and abroad, on the basis of the publicly available information in the market and own research. This document has been prepared for information purpose only and does not solicit any action based on the material contained herein and should not be taken as an offer or solicitation to buy or sell or subscribe to any security. Neither EBLSL nor any of its directors, shareholders, member of the management or employee represents or warrants expressly or impliedly that the information or data of the sources used in the documents are genuine, accurate, complete, authentic and correct. However all reasonable care has been taken to ensure the accuracy of the contents of this document. EBLSL will not take any responsibility for any decisions made by investors based on the information herein.

ANALYST DISCLAIMER The person or persons named as the author(s) of this report hereby certify that the views expressed in the research report accurately reflect their personal views about the subject matters discussed. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research report. The views of the author(s) do not necessarily reflect the views of the EBL Securities Limited (EBLSL) and are subject to change without any notice. All reasonable care has been taken to ensure the accuracy of the contents of this document and the author(s) will not take any responsibility for any decisions made by investors based on the information herein.

ABOUT EBL SECURITIES LTD. EBL Securities Ltd. (EBLSL) is one of the fastest growing full-service brokerage companies in Bangladesh and a fully owned subsidiary of Eastern Bank Limited. EBLSL is also one of the top five leading stock brokerage houses of the country. EBL Securities Limited is the TREC-holder of both exchanges of the country; DSE (TREC# 026) and CSE (TREC# 021). EBLSL takes pride in its strong commitment towards excellent client services and the development of the Bangladesh capital markets. EBLSL has developed a disciplined approach towards providing capital market services, including securities trading, margin loan facilities, depository services, online trading facilities, panel brokerage services, trading through NITA for foreign investors & NRBs etc.

EBLSL KEY MANAGEMENT

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EBLSL RESEARCH TEAM

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