Group Project(MGT489)

On
ABDUL MONEM LIMITED
Submitted to,
Samuel Mursalin(SMM4)
Lecturer, Management Department
North South University
Submitted by,
NAME ID
Tasnuve Maliha Himi 1230748030
Rahat Khan 1331138630
Mahmud Morshed 1110329030
Syeda Sumaiya Noureen 1410299630
MD.Mizanur Rahman 1410555030
MD.Taijul Islam 1410152630
Shamma Rushafy Abantee 1311661030
Sadia Islam 1331294630
Anonya Islam Chowdhury 1411187030
Sec:14
Course: MGT489
Date:20-04-18
 Acknowledgements
We take this opportunity to express our profound gratitude and deep regards to our guide

Samuel Mursalin sir for his exemplary guidance, monitoring and constant encouragement

throughout the course. The blessing, help and guidance given by him time to time shall carry us a

long way in the journey of life on which we are about to embark. We are very obliged to those

who have been a part of this research starting from our driver to our friends and everyone who

took the trouble to get our project done. Lastly, we thank almighty, our parents for their support

and encouragement, without which this project would not be possible.

CONTENTS PAGE NUMBER

OVERVIEW 1

DETAIL DESCRIPTION OF BUSINESS LINE 4

SWOT ANALYSIS 15

COMPETITOR’S ANALYSIS 17

INDUSTRY ANALYSIS 22

CORPORATE LEVEL STRATEGY 25

BUSINESS LEVEL STRATEGY 26

FUNCTIONAL LEVEL STRATEGY 26

RECOMMENDATIONS 28

REFERENCE 30

APPENDIX 31
 Overview of Abdul Monem Group
Abdul Monem Limited (AML) is one of the leading diversified business conglomerates of
Bangladesh and their fundamental promise is
‘Touching Lives… Building Capabilities…!’
Vision
“Our Vision materializes our Roadmap. We are aimed at contributing to the economic, social and
environmental progress and prosperity of Bangladesh through optimum use of our resources
applied in constant development of our value-added products and services.”
Mission
“Our Mission defines our Roadmap. We excel to develop and deliver value added goods and
services to our esteemed customers, consistently outperform our peers, build enduring
relationship with our business associates and stakeholders, provide a dynamic and challenging
environment for our employees and aim to achieve incremental growth of our business thereby
having a positive economical and social impact on the community and the nation.”
The honorable Managing Director and Chairman Mr. Abdul Monem had established the
organization in the year 1956 and he still strongly and successfully runs it along with his two
eligible sons working as the Deputy Managing Directors (DMD) of the company, Mr. A.S.M.
Mainuddin Monem and Mr. A.S.M. Mohiuddin Monem. Since 1956 and onwards, they have led
others to follow. The core strength of the organization is rooted in their capacity to gather the
resources to complete infrastructure projects on a grand scale ( funded by Word Bank, ADB,
JICA etc.) thus demonstrating their ability to bear the initial risks associated with such projects
and proving our sustainability throughout the long development periods.
Over a successful period, AML has not just developed a wealth of experience in infrastructure
and development project arena in order to meet the international standards of quality and
services, it has also become the bottler of Coca Cola, the producer of number one ice-cream
brand Igloo, Igloo milk and dairy products, Igloo food items and snacks, manufacturer of
pharmaceuticals, maker of auto bricks, bitumen and other selected construction materials. It also
established AM Sugar Refinery Ltd., AM Rice Bran Oil), ServicEngine BPO, AM Securities and
Financial Services Ltd., etc. In 2015, it was awarded to develop one of the first private economic
zones of the country as Abdul Monem Economic Zone (AMEZ) in Daudkandi, Munshiganj on
its land of 216 acres. All these strategic units are established with a view to leveraging the
strength of the parent company as well as to contribute to the national economy with an intention
of generating employment opportunities for fellow citizens. Even though, AML began as a
family owned business, it has transformed into a multi-disciplinary modern day business group
delivering value to the customers. As such, their priority has been to focus on building
capabilities to infuse strength and character in their people. Their business partners, associates
and stakeholders resulting in robust and dynamic growth of the establishment.
10,000+ talented and highly skilled workforces are the rock bottom of their strength and long-
term success. Hence, their policy requires that they take responsibility for ensuring their safety
and security as well as safeguarding their health and welfare. They also take great pride in
contributing to the community and society as a whole through active corporate social
responsibility and engagement. The ultimate focus therefore, is to use their valuable resources in
order to create value-added products and services, which would contribute to the economic,
social and environmental progress and prosperity of Bangladesh. Altogether, they aim to lead by

1
paradigm and to learn from everyday experiences but they set their endeavors to high standards
for their people at all levels and consistently meet them.
AML’s Values and Beliefs
Their values and beliefs driven by 3ps and these are-

• People: AML prioritizes to nurture and provide them with the opportunities to achieve
their maximum competence. They also express preeminent desire to serve the needs of
valued customers, business partners and the society in general by being responsible in
creating and delivering our valuable products, services and business practices.
• Prosperity: “Prosperity outlook is key to success”. AML contributes immensely to the
prosperity of the people and the country. Therefore, they ensure to utilize advanced
technologies, skills and knowledge of a dedicated, well-trained and motivated workforce
in delivering high quality products and services to their esteemed customers.
• Progress: “We explore for progress”. AML believes in sustainable development by
investing in the future of people, business, society and nation as a whole. Thus, they
continuously explore ways to progress and elevate practices, standards and expectations.

AAML’s Partners

2
These are some of their partners but they have partnership with other companies as well.

Achievement & Recognition

• The President’s Awards
• The longest TAX payer award
• The longest VAT payer award
• IFAWPCA gold medal
• Business person of the year 2008, Bangladesh
• Commercially important person of 2010, 2011 & 2012
• Excellence for business performance from Jamuna Bank ltd
• Igloo- No.1 ice-cream brand by Bangladesh Brand Forum
• Other recognition from various Government departments for business performance,
corporate governance and contribution to national development

3
 Business Line
Abdul Monem limited (AML) is one of the most successful business entity in Bangladesh. It has
both related and unrelated diversified business which are running successfully. From grocery
item to construction in every sector they have their presence. Abdul Monem limited proudly
represents brand like Coca cola, Igloo,fanta,sprite, Kinley,AM energy, Novus pharmaceuticals,
AM sugar refinery and other well-known brands. Now AML has eight different business lines.

Construction Food & Beverage

➢ Igloo ice cream ➢ Igloo foods ltd

➢ AM mango pulp ➢ Igloo dairy ltd
processing unit ➢ Igloo ice cream
➢ ML Construction ➢ AM mango pulp
➢ AM auto bricks processing unit
➢ AM Asphalt & ready mix
➢ AM beverage
➢ Danish Bangla Emulsion
ltd( Joint venture)
Cocacola,fanta,sprite
➢ AM sugar refinery

Service Others

➢ Pharmaceuticals

➢ Service Engine BPO Novus Pharmaceuticals ltd.

➢ AM securities abd
financial service
Energy:
AM energy

AML Construction: Economic Zone; AMEZ

With the vision to lead the infrastructure development of the country, pioneering entrepreneur
Mr. Abdul Monem in the year 1957 embarked upon the journey to start the first and currently the
largest business concern of AM group of Companies.
4
Since its inception Abdul Monem Limited has built a strong reputation for delivering quality
service, on time project completion and meeting set construction standards. They are the
construction contractors of roads highways, bridge, buildings, flood embankment. Now they are
doing almost 60% government projects. AML construction has high quality updated equipment’s
& machineries which are helping them to stay on top. Now they are involve in some mega
project like Metro rail, Padma bridge, Shahjalal airport reconstruction. They are very trustworthy
to our government. Because of their quality work and maintenance capability they are becoming
the leading construction company.

Ongoing projects of AML Construction:

Title
Cost

Project Director
Padma
Multipurpose
Janjira Approach Road
Bridge Project, Government 08 07
and Selected Bridge End
1 Bangladesh of Bangladesh October October 140,063,557.26
Facilities, ICB No.:
Bridge (GOB) 2013 2016
PMB/AR/01
Authority, Setu
Bhaban, Banani,
Dhaka-1212

Project Director
Padma
Construction of Service Multipurpose
Area 2 under Padma Bridge Project, Government 12
11 July
2 Multipurpose Bridge Bangladesh of Bangladesh January 26,638,405.08
2016
Project, ICB No. Bridge (GOB) 2014
PMB/SA/02 Authority, Setu
Bhaban, Banani,
Dhaka-1212

Mawa Approach Road

Government 27
and Selected Bridge End 26 July
3 - Do - of Bangladesh January 24,661,575.57
Facilities, ICB No. 2016
(GOB) 2014
PMB/AR/02

Construction of 1 x 152
‘C’/’D’ type Qtr (20
storied foundation with DW & CE
basement floor, Car (Army) Dhaka, Government
4 parking & other facilities of Bangladesh June 2015 June 2016 4,689,654.73
Dhaka
in basement floor & Cantonment. (GOB)
ground floor) including
ancillary Works for 17 Inf
Div at Sylhet Cantt (1st
5
 phase)

Construction of
Accommodation for 1 x
1200 Cadets (8story with 8 DW & CE
Government
storied foundation) (Army) Dhaka,
5 of Bangladesh June 2015 June 2016 5,648,661.36
including ancillary Dhaka
(GOB)
Works for BMA Cantonment.
Bhatiary, Chittagong (1st
Phase).

Contract No.: SASEC-

RCP/lCB/W-01 (Lot No.
WP-02) Part-l:
lmprovement of Road Chief Engineer,
from Kaliakor Bypass Roads and
Asian
intersection to Dulla Mari Highways December December
6 Development 83,355,918.05
Road (18.00 km) from 2- Department, 2015 2018
Bank (ADB)
Lane to 4-Lane including Sarak Bhaban,
structures. Provision of Tejaon, Dhaka
support to project for third
party maintenance quality
check.

Igloo Ice cream: Igloo is the most popular impulse and take-home ice cream of Bangladesh.
Equipped with the most modern machinery, skilled human resources and using only the best
ingredients Igloo never compromises on quality and taste. Igloo is the most preferred ice cream
brand having 60% share. The ice cream range is growing day by day and Igloo continues to lead
the top of the mind awareness among consumers.
Igloo ice cream is available in more than 20,000 retail outlets across the country as well as in
supermarkets, hypermarkets and has a large number of corporate customers.

Recently Igloo has been voted to be the No. 1 Ice Cream Brand by the Bangladesh Brand Forum

Mi-Amore- Mi-Amore is one of a kind range of premium product offering rich taste and
creaminess for the ice cream lovers of the country.

6
Igloo dairy limited: Igloo Dairy Milk was established on 31 August 2004 with the aim to
maintain the production capacity of Igloo Ice Cream as well as meet some market demand for
pasteurized milk. With the increase of per capita milk consumption and the need for nutritional
value in national diet, milk production and availability has been growing incrementally. In this
business scenario, Igloo Dairy has built the capacity to 14,000 liters per day from the initial
5,000 liters.

Milk collection center is situated in Baghabari, Sirajgonj and milk processing factory is located
in Shyampur, Narayangon

AML dairy is not the market leader but they are trying to gain more share by improving their
capacity and good quality packaging. Research & and development team are trying to find out
the reason. As a result they are introducing a new 600 litre milk plant . There is huge demand of
UHT, FCMP in our country. So AML decided to invest more in this sector.

7
Igloo foods limited: Igloo Foods Limited is now started with new offerings and lots of new
products. They have wide variety of products like Chips, chatni, mango bar & roll, pickle, nature
fresh fortified rice, igloo flavored milk, foody chanachur, igloo sugar, Packed fried chicken and
many more. Igloo food has started diversifying very recently. But because of their brand
positioning and brand value they believe they can gain a maximum portion of market share.
Igloo Foods Limited is a manufacturer and marketer of high-quality, brand name food and potato
products for consumers throughout Bangladesh.

Igloo Foods is built on the principle to mileage the existing reputation for delivering quality
products. The company has a strong logistical fleet and manpower to ensure the distribution of
the products across the marketplace. There are regional offices, warehouses and depots at
different strategic points accompanied by a large transport pool to facilitate the trade.

Igloo Foods consistently makes significant investment in marketing to support out the brands.
Marketing investment enhances the consumer awareness and enhances the brand preference,
leading to long term growth in volume. We heighten product appeal using integrated marketing
programs through our relationships with distributors and retailers on a sustainable basis. Igloo
food products are sold through retailers, food service and corporate clients.

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Igloo Foods Limited operates with 3 business wings, frozen food distribution, frozen food
manufacturing, ethnic and snack food production.

Am Beverage: AM Beverage Limited is the authorized bottler of leading beverage Coca-Cola,

authorized by Cocacola international headquarter. AM Beverage Limited is the authorized
bottler of Coca-Cola, Fanta and Sprite. The bottling operation started after acquiring the plant of
K. Rahman & Company in 1982. In 1987 the company made an aggressive move to expand the
market by establishing a new bottling plant of 450 bottles per minute (BPM) capacity in Comilla.
Now they are providing countrywide service except Dhaka & Rajshahi division. As coca cola is
leading beverage brand in the world there is huge demand and AML successfully doing the
bottling and other service. For their highly maintenance. In 1997 the company established
another bottling plant at Chittagong. This state of the art bottling plant of 650 BPM capacities is
the most modern plant in the country, equipped with straight-line technology from Germany.
This plant was established to expand the market further and to deliver products at every
consumer’s doorstep, even to the most remote areas of Bangladesh. AML awarded the
President’s Turtle Award by the President of The Coca-Cola Company in 1990 which is the most
prestigious award for bottlers by Coca-Cola. The water brand of coca cola named Kinley and
other beverage brand like Fanta, sprite is also very popular in our country and AML is
trustworthy to consumers for their positive intent of maintaining quality. Now main two bottling
plant is situated in Comilla & Chittagong. With their superior and dominant distribution channel
AML is now one of the dominant player in the beverage industry.

9
10
Danish Bangla Emulsion limited: Danish Bangla Emulsion Limited (DBEL) is a joint venture
company between Abdul Monem Limited and ENH Engineering A/S, Denmark.

DBEL has been producing bitumen emulsion of international standards by a fully automated
plant for the construction of road and airfield pavement work. The products are used under
different departments of the Government of Bangladesh like RHD-Roads & Highways
Department, CAAB-Civil Aviation Authority of Bangladesh, LGED-Local Government
Engineering Department and the Municipal Corporations meeting their specification
requirements will full satisfaction of the consultants and engineers of the concerned agencies.
Using advanced technology, DBEL meets the stringent national and international specifications
with prescribed quality assurance procedure.
The advantages of bitumen emulsion over traditional cut back bitumen are:

• No requirement for heating saves labor and fuel costs.

• Environment friendly.
• Superior quality and durability, compared to price.
• Enhances work speed as curing period is lesser, thereby reducing time of project
completion.
• No wastage during work, easy to use.
• Appropriate for all weather use, can be used on damp surface in rainy season.
• Offers good working conditions for laborers
• Reduces fire hazard
• No requirement of pre-coating of stone chips for DBS! SBST
• Use in slurry seal to renovate concrete/bituminous surface
• Reduce the consumption of fue

AM securities and financial service limited: AM Securities & Financial Services Ltd. is a
subsidiary of Abdul Monem Group and a leading equity brokerage house in the country with a
diverse clientele of institutions, high net worth individuals, foreign funds and retail investors.
AM Securities & Financial Services Ltd. is a subsidiary of Abdul Monem Group and a leading
equity brokerage house in the country with a diverse clientele of institutions, high net worth
individuals, foreign funds and retail investors. Building and managing the capital has become
very important and it will be the prime driver behind the motion of our economy. So, to fulfill
our dreams of building an economically successful and sustainable nation, AM Group, being the
number one construction firm of Bangladesh (Abdul Monem Construction Ltd.) with successful
11
companies like Coca-Cola, Igloo, AmoMilk and Danone, commenced stock broking activities in
1997.Over the time we have become the largest stock broking company in the country having
developed a strong team of highly skilled and experienced professionals. AMSFSL not only offer
flawless clearing and excellent trade execution quality but have also been a true business partner
as we have rapidly grown our business and expanded our offering. The people at AMSFSL are
very professional and have been flexible and very accommodating to the customer needs

Monem business district: Monem Business District is currently a grand illustration of

architectural excellence. MBD is the corporate head office of the entire group as a whole and is
situated in Karwan Bazar, one of the prime locations of the capital city of Dhaka. MBD is a T-
shaped structure, which happens to be the strongest structure among buildings. It is a 14 Storied
glass cladding and ACP panel building which has 4 underground basements with 6,05,000 sq. ft
of total floor area.

AMENITIES & FEATURES

• Central air conditioning controlled by sophisticated BMS (Building Management

System) for energy efficiency and extended life time of equipment
• High performance laminated, reflective safety glass curtain to reduce heat gain and loss
• Pressurized plumbing with Flush Valve System
• Advanced electrical system
• Fire fighting System following international standards
• Use of the best consultants in the country regarding the technicalities of the building,
also ensuring maximum quality and value
• Full backup power through its sophisticated BMS
• Further details along with more concrete information about MBD are provided in our
DOWNLOADS section for further reading

Abdul Monem Sugar Refinery Ltd: AMSRL- high-grade refined sugar in the name of Igloo
AML, guided by the vision and belief to ensure long-term existence through profitability,
success and sustainability, established the Abdul Monem Sugar Refinery Limited (AMSRL) in
2006 as a standalone sugar refinery with an annual capacity of more than 3, 00,000 metric tons
of high-grade refined sugar in the name of Igloo Sugar. The annual consumption of sugar in
Bangladesh is approximately 1.2 million metric tons and AMSRL is one of the very few private
sugar refineries in the country, which provide majority of this supply to the consumers. AMSRL
is the first ISO 22000-2005 certified refinery and is regarded as the cleanest, most cost-effective
and professionally managed one compared to the other refineries existing in the country in the
meantime.
AM energy Ltd: AM Energy Limited was established in 2005 as a captive power generating
plant.Initially it was designed for generating 10MW by steam turbine generator but presently has
6MW capacity with 3.5MW maximum power generated. 2.5MW is supplied to Abdul Monem
Sugar Refinery Limited for the factory operations and 1MW is transmitted to REB-Rural
Electrificati

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AM asphalt & ready mix concrete Ltd

To ensure high quality and consistent form of concrete for all its own infrastructure and
construction projects as well as provide the same to Government Departments and private
contractors and builders, Abdul Monem set up AM Ashpalt & Ready Mix Concrete Ltd.

Asphalt is known for its durability, cost-effectiveness, simplicity of construction, and strength.
Our asphalt withstands heavy loads and, when combined with proper asphalt maintenance, lasts
for many years. AM Ashphalt & Ready Mix Concrete Ltd. is rewarded with trust and confidence
as one of the best asphalt companies in the country.

It has the most advanced asphalt paving equipment for manufacturing, preparing and laying
asphalt. Those machineries and paving equipment, combined with our experienced and highly
qualified team, provide our customers the best asphalt at the best price. Our asphalt batch plant
has the capacity to undertake a vast number of projects and provide customers with the most
reliable asphalt paving equipment such as rollers, graders, and finishers and well-trained
operators, which enables us to be efficient

Their asphalt batch plant has the capacity to undertake a vast number of projects and provide
customers with the most reliable asphalt paving equipment such as rollers, graders, and finishers
and well-trained operators, which enables them to be efficient.

AM auto bricks Ltd: AM Auto Bricks Limited is a unit of the Abdul Monem group which was
established in the year of 2011. It is located at near of Meghna Ghat (South), Choto Raypara,
Gazaria, Munshigonj. It is producing and delivering Auto Bricks only. Bricks are refined by
technology and machines are available to produce them in mass quantity in less time, thus it is
producing and delivering auto bricks only.
AM Auto Bricks use modern kilns to do the firing work. The molded bricks are fired in a kiln or
oven at high temperatures. Bricks are refined by technology and machines are available to
produce them in mass quantity in less time.
Is today the leading manufacturer of quality engineered structural clay products, It has expertise
in the production of modern structural clay products

AM mango pulp processing unit: With the modern production machineries and Standard
Operating Procedure for maintaining quality, employee safety and clean environment they are
trying to bring positive impact in this sector.

13
To make a positive impact in this sector, AM Mango Pulp Processing Unit was established in the
year of 2000 and it went for commercial production in the year of 2005.(Factory: Igloo Foods
Ltd, Mango Pulp Processing Unit, BSCIC Industrial Area, Chapainawabganj). With the modern
production machineries and Standard Operating Procedure for maintaining quality, employee
safety and clean environment are in application in both production and storage functions.

AM Bran oil: It is a joint-venture operation with Surin Bran Oil Co. Ltd.; Thailand. Abdul
Monem Bran Oil Company Limited is presenting heart –friendly “Nature Fresh” Rice Bran Oil –
extracted from nature and full of natural health nutrients. It is processed and refined using world-
class advanced technology, utmost hygiene and strict quality control to produce comprehensive
healthy cooking oil.
Novus pharmaceutical Ltd:
With a vision to revolutionize the massive demand supply gap of proper medicines & drugs,
Novus Pharmaceuticals Limited, started in 2008, develops and delivers healthcare solutions with
the highest priority on quality. As a fully integrated pharmaceutical company, our purpose is to
provide affordable and innovative medicines through our core businesses. It has a unique effluent
treatment plant (ETP) as per cGMP standard and also separate wing of cephalosporin with
HVAC facility with a Research and Development (R&D) department.Novus plant facility is
capable of producing solid, PFS, liquid and sachet preparations.It has also separate wing of
cephalosporin with HVAC facility with a Research and Development (R&D) department. Highly
equipped quality assurance department is our great strength. We have a unique effluent treatment
plant (ETP) as per cGMP standard.Novus Pharmaceuticals Ltd. is committed to produce quality
medicines for customers by continuous improvement of its resources and process. We address
this challenge with excellence in innovation and quality.

Abdul Monem Economic Zone (AMEZ)

The envisaged economic zone is located in Gazaria, within two mouzas (Bausia and Jajira) of
Gazaria upazilla under

Munshiganj, covering almost 216 acres (with option for expansion up to 300+ acres) of
exclusively owned land.

The area is popularly known as Daudkandi

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 SWOT Analysis
Strength

• Client of international corporations like World Bank, Japan Bank and ADB.

• More than 10,000 work force

• Multifunctional teams comprising of highly experienced professionals
• Highest aggregate experience in construction industry
• Largest fleet of construction industry equipment
• Backward linkage: Own production of auto-bricks, bitumen emulsion & asphalt ready-
mix concrete
• Possession of huge chunk of land in strategic locations of the country
• 18 fully functional operation units, each having major shareholding in the concerned
business sector
• Number One Ice-cream brand-Igloo, Bottling of a renowned global brand like Coca-cola,
placing within Top 100 global BPO companies by IAOP
• Most extensive distribution network (100,000 outlets) in FMCG industry with the widest
cold chain system
• Abilities to deal out goods and services in the farthest and remotest territories of
Bangladesh etc.

Weakness

• Incurrence of high-level expenses in the Research and Development (R&D) sector. High
operating and maintenance expenses resulting from the large size of the business.
• Packaging materials bought from other company: As an FMCG producer the AM
Beverage Company engages in the particular production. It puts emphasis on the
production of FMCG only. It doesn’t have a different segment for packaging materials. It
has to bring in the packaging materials from other companies. So as to it depends on other
companies in the packaging aspect.
• Over dependency on the international Coca Cola authority.
• Tall organizational structure hence slower in response to market changes
Opportunity
1. Huge scope in Bangladesh: Bangladesh is a country full of opportunities. Since AML is
home to a huge span of product and services it can seize the opportunities easily by
producing various new products and modifying the present products.
2. Huge promotional activities in various satellite channel: Satellite channels are
mushrooming in our country. The scope of advertisement in those channels and
improving, accelerating the promotional activities also rise with the increase of the
satellite channel. For instance-current production of sugar is only 5% of total demand.
There is a big scope to catch the huge market as the government has to import 75% of the
total demand.

15
 3. Market share gain able: Through effective penetration, huge market share can be gained.
Larger the market share higher the opportunity for the company to flourish.
4. Reference group influence: AM Beverage is associated with lots of CSDs, super stores,
hotels, restaurants and other companies. It can use the reference from them in order to
improve their company image and improve its goodwill further.
5. Demand of Bangladeshi medicine is very high in North America. It can be a large market
for Abdul Monem Group
6. Diversification opportunities exist
Threat
1. Political instability: There is a lot of political instability in the country. This may
anytime bring interruptions in the proper flow of the operation.
2. Threat of new Entry: Market is free for all. If any new company enter in the market that
will effect the establish company like AML and its product.
3. Presence of competitors: There are a number of both local and foreign competitors in the
beverage market. These companies; especially the multinational companies such as
Transcom Beverage, Pertex Group, PRAN, Globe Beverage, Akij Food and Beverage
Limited, pose a huge threat to AML.
4. Increase of price of raw materials in the international market: The price increase in the
international market is another matter of concern for AML. This would also create a
situation for the AML to increase their price as well, which in turn may decrease their
sales because of the prevailing purchasing power parity of most people of our country
which is much lesser than that compared to most other countries abroad.

16
 Competitor’s Analysis
Construction:
Spectra Engineers is the biggest competitor of AM construction sector.There are also other
competitors such as Concord Engineers & Construction Ltd., Bengal Development Corporation,
Desh Unnayaon Ltd., ENA Properties, Build Asia, Akhtar Group, Azmir Builders, Associated
Builders Corporation Ltd. etc. Though AM Construction sector has more experience, expertise &
reputation ,the competitors are giving an intense competition in this sector.

Food & Beverages:

PRAN: PRAN is one of the largest food and beverage brands in Bangladesh and has been
exported to 138 countries which is the biggest competitor of AML in this sector. They have
variety range of drinks, juices, frozen food, noodles etc. They also export so many of their
products in different countries.

17
Kazi farms:
Kazi farms are another major competitor of AML specially in the ice cream & dairy sector. Kazi
farms have well established ice-cream products such as Zan Zee, Bellissimo which provides a
good competition to Igloo Ice cream.

Transcom &Brac Dairy(Aarong):

Transcom has the license of Pepsi which provide direct completion to AML’s Coca-Cola. On the
other hand, Aarong of Brac Dairy is a good alternative to AML dairy products.

18
Pharmaceutical:
Square:
Square Pharmaceuticals Limited, the flagship company of Square Group, is holding the strong
leadership position in the pharmaceutical industry of Bangladesh which is a direct competitor of
AML Pharmaceutical sector.

19
Beximco Pharma:

Beximco Pharma is an emerging generic drug player committed to providing access to affordable
medicines. Company’s state-of-the-art manufacturing facilities have been accredited by the
regulatory authorities of USA, Australia, European Union, Canada, and Brazil, among others
which is another competitor of AML in this sector.

Incepta Pharmaceuticals:

Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in

the year 1999 is one of the leading competitors of AML in this sector.

20
Services:
IDLC Securities Limited is the biggest competitor of AM service sector. There are also other
competitors such as IFIC Securities Ltd., Lankabangla Securities Limited, NCCB Securities and
Financial Services Limited, Standard Bank Securities Limited etc.

Outsourcing:
Maxzion IT is one of the best outsourcing and IT firm in Bangladesh which is a good competitor
of AML in this sector. There is also another company named JOINTFIRMBD another
Outsourcing company Bangladesh. The company which also has office in the US, has been
named in The Global Outsourcing 100, an annual listing of the world’s best outsourcing service
providers compiled by the International Association of Outsourcing Professionals, for the third
consecutive year.

21
 Industry Analysis
PESTLE Analysis

Political:
Political condition of Bangladesh is quite unstable. Two main political leagues often create chaos
situation for normal people of this country. Blockages in road, vandalizing normal people’s
property, strikes are some phenomenal seen in Bangladesh. So political instability might
sometimes influence Abdul Monem’s business, for instance, moving equipment’s from one place
to another or taking materials (like construction machines, foods & beverages) one place to
another place. Moreover, there is widespread corruption in the government administration that
sometimes create obstacles for the smooth flow of operations. Despite these factors government
has implemented some policies in favor of these industries. Abdul Monem group has done many
projects along with the government. Recently Bangladesh Govt. gave an opportunity to Abdul
Monem group to operate an economic zone.

Economical:
The market-based economy of Bangladesh is the 44th largest in the world in nominal terms, and
32nd largest by purchasing power parity; it is classified among the Next Eleven emerging
market economies and a Frontier market. According to the IMF, Bangladesh's economy is the
second fastest growing major economy of 2016, with a rate of 7.1%. The Construction sector of
Bangladesh is growing rapidly & has a huge potential. Also, food & beverage sector is also
growing in Bangladesh. But recently these sectors are facing unfavorable interest rate that enable
higher borrowing cost. The unemployment of Bangladesh is high. Abdul Monem group has more

22
than 10000 workers. The interest rate and currency exchange rate affect the business. Abdul
Monem needs to imports machineries, food and other raw materials from other countries. When
the rate appreciates or depreciates it directly affect the business.

Social:
The population growth rate of Bangladesh is high. A company need to think about it customer’s
religion, belief, attitude, life-style. For example, Alcohol is not permitted in Bangladesh. The
income level of the people and family size will have impact on the company. In the food &
beverage sector customer preference changing towards a trendy lifestyle and favors specialty.

Technological:
The construction, pharmaceutical, energy, food & beverage sectors are gaining a massive
technological advancement. Most of the construction materials are imported from foreign
countries which incurs high cost. As a result, only, the large players can afford the blessings of
technological advancement in this sector. Abdul Monem is operating its business for a quite long
time. The company has many technological resources for producing and packaging products. In
this modern world a technology is spreading very quickly. It is good for Abdul Monem when the
company want to use this technology. but it may bring loss in the business if other companies
also adopt the same technology.

Environmental:
Global warming is a major issue now a day. So, every country is talking about taking proper
steps to reduce pollution by making eco-friendly products. The laws regarding recycling is very
strict. But Bangladesh Government & businesses are less concerned about environment & more
focused on profits. Despite that, Abdul Monem group is producing auto bricks which consume
30% less energy and emits less CO2.
Legal:
These are the external factors which are laws or legislations which might affect a business in
terms of how they operate or how the consumers behave. This also takes into account the laws
which are also specified in terms of promoting a specific product or service. Anyone can copy
the business idea or the brand.it is a risk for Abdul Monem group .The legal system in
Bangladesh to ensure good business environment is not very good. In the construction,
pharmaceutical & energy sector there is lack of industry regulations, health & safety measures &
effective implementation of the existing regulations. Bangladesh also have some legal issues
relating formation under legal entity, taxation system, labor law and others.

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Porter’s five forces

Threats of new entrants:

Construction Sector
Low-Abdul Monem group is operating its business since 1956. That shows that the company is
operating it’s for a quite long time and has gained economies of scale. Their construction unit
has a very good reputation
Foods & Beverages
Medium – lots of participants already in the Food and Beverage industry and it is indeed a very
profitable and growing one, however there are also certain drawbacks and loopholes that make
new entries at times difficult.
Pharmaceutical & Energy
Low – few established companies already in sector, huge investment needed
Services
High- lots of participants already in the BPO & Financial service sector
Bargaining power of Buyers:
The bargaining power of the Abdul Momen Group’s buyer is high since there are lots of
alternatives in every sector.
Bargaining power of suppliers:
Abdul Monem group never compromises with its product quality. And the company has already
owned its customer’s faith for this. For this reason, sometime the suppliers have the high
bargaining power in Food & Beverage sector. But in other sectors there is very low threat related
to bargaining power of suppliers. Inputs for industry are standard. Easy to switch between
suppliers. Raw material for this industry is not much differentiated.

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Competitive Rivalry:
Food & Beverages
Medium – There is existence of small, medium and large enterprises in the F&B industry
however the head on challenge is a bit low and under control considering the rise in middle
income families and their purchasing power.
Construction
Medium – many established construction firms
Pharmaceutical & Energy
Medium– few firms
Threats of substitute products:
There is high threat to substitute products in construction ,pharmaceutical, Energy, Services
Food & Beverages sector . Abdul Monem has some products which has very good reputation in
the market. But Alternative to these products are also available which gives the customer low
switching cost. For example, igloo ice cream is has captured 63% of ice cream market. There are
many juice companies who can attract it consumers. In Bangladeshi market there is also ZaNZee
ice cream, Bellissimo, polar, kwality, bloop. TRANSCOM BEVERAGES LIMITED supplies
products of PepsiCo limited>moreover, they have competitors like kazi farm, golden harvest
,Brac dairy etc. There are many sugar refineries in Bangladesh such as city group, S alam sugar
industries, deshbandhu sugar mills ltd. Novus Pharmaceuticals Limited, started in 2008 but there
are already existing players in the market.

Corporate Level Strategy

Joint Venture: Danish Bangla Emulsion Limited (DBEL) is a joint venture company between
Abdul Monem Limited and ENH Engineering A/S, Denmark. DBEL has been producing
bitumen emulsion of international standards by a fully automated plant for the construction of
road and airfield pavement work.
Franchise: Abdul Monem Group and another company have the license to make Coca Cola in
Bangladesh. But only Abdul Monem alone has the permission to make can Coca Cola. They
distribute Coca Cola to all parts of Bangladesh only except Rajshahi and Dhaka which is covered
by the other company.
Backward integration: In the construction sector Abdul Monem acquired many brick and
concrete companies near the ongoing projects to coordinate the business efficiently. AML tends
to go for such integrations in order to make sure that they operate smoothly.
Export: Abdul Monem exports sugar to Pakistan and currently they have got the permission to
export 35000 MT of sugar to Europe. As a result they will soon be sending sugar to Europe.
Moreover, they are planning to expand the ice cream market in South Africa.
Acquisition: Abdul Monem acquires brick fields and concrete companies that they find potential
enough and beneficial for the smooth operation of their business.

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 Business Level Strategy
Business level strategy focuses on how a firm will compete in an individual industry through
providing value to the potential customers and gaining competitive advantage over competitors.
Broad Differentiation: Abdul Monem has lots of product under Food, beverages,
pharmaceutical. AM also has a construction company, energy company,BPO company, financial
service company whichmakes AM Group a broad differentiator.
Market expansion: Market expansion is a continuous process of AM. In construction sector,
AM is working as A listed contractor with Bangladesh Army in new projects outside Dhaka. AM
wants to expand its business into the housing development sector. In the food & beverage sector
AML is increasing their presence in rural areas. Moreover, AML is trying to supply their Coca-
Cola in Dhaka & Rajshahi.
New product: Recently they tried to launch Momo (chicken, chocolate, vegetable& beef), and is
going to introduce new line of biscuit which is an ongoing process under food and beverages.
Recently they also bought frosted items like French Fries, Chicken roll, Parata, Samosa, Puri. To
ensure rich nutrients AM introduced Fortified Rice for woman and children. This shows that
AML always looks forward to introducing new product for the consumers in order to sustain in
the market.
R & D: AML conducts regular research on the customer responsiveness and they conduct
research on the product development to know the market situation. To conduct these researches,
they hire third party research team. Igloo Doi and Kheer ice-cream was an outcome of their
research.
Market Segmentation: For construction sector, AM focus on the government sector. They are
one of the well renowned contractors of Bangladesh Army and BRTA. In engineering sector,
they focus on MNC’s. AM Constructions is the major supplier of construction equipment to
other engineering companies like MES (Military Engineering Section), Government sector and
to other development sector as well. In Food & Beverage sector AM is trying to attract health
conscious customers by introducing nutrient enriched food.

Functional level strategies

Functional Area Strategies are mostly monitored and supervised by the Board of Directors. This
is due to the necessity to keep balance between different lines of business that the
enterprise pursues.
Quality
Maintaining quality is Abdul Monem Ltd’s first priority. This is why every sector that they have
touched they have made sure that they provide the best quality. In every sector they always
ensure the quality of the products through close monitoring in every points of processing line.
Strictest quality control is done in every aspect of the manufacturing process from procurement
of materials, blending, material flow, manufacturing, packaging, storing, distributing and market

26
shelving by the quality control department. To maintain quality they use strategic approach
which is they take action proactively and focus more on preventing any mistake from taking
place.
To ensure the quality of the employees/ workers they are provided with relevant training
facilities and also workshops are arranged in order to make sure that the workers are putting in
their best in the right way and carries the same mission vision as the company.
Efficiency
To ensure efficiency they offer high salary to their employees so that they are motivated and put
their best into the business. The employees are motivated giving assurance that the company will
stand by them by developing their strengths, valuing their unique perspectives and enabling them
to make a difference to the success of AML, as a result the employees feel important and believe
in being one of the major part of the company. For getting the most from the employees , they
rely on them and ensure them that together they will share the commitments in delivering
performance for the stakeholders; collectively they will build lasting relationships by
demonstrating passion for helping them do good – for customers, communities and their
colleagues. Thus the employees put their best performances making sure the work is done
efficiently.
Innovation
Abdul Monem Ltd has been committed to playing a strong and responsible role in sustainability;
from implementing quality in infrastructure/construction projects to providing innovative
products and services. Their journey of almost six decades has been preoccupied with work.
Their course was determined progressively with the combination of our people and the
prosperity they achieved through their collective ability to master new knowledge and ideas as
well as willingness to safeguard sustainability of the organization. They look forward to
economic, social and technological changes offering them challenges to be innovative in
engaging their resources. AML always thrives for more innovation of their products and
services according to their customer’s needs and change in market demand.
Customer responsiveness
Abdul Monem limited is quite quick in responding towards its customer’s queries, problems,
complaints and demands. Whenever they acknowledge any problems or issues regarding their
products or services, they immediately start to rectify the problems.
Business to Business: Mostly AML deals with B2B issues, so to sustain in the market they
always take feedback from their customers. For example they are one of the major suppliers of
French fries imported from USA and UK to big restaurants and stores of the country, so here
they take feedback from them their customers and customize quantity and price according to
them. Moreover as soon as they get any complaints about any of their products they send it right
away to their R&D sector to bring in change and then if they find it better enough to be able to
stand according to their customer’s requirements only they go for the supply again.
Business to Consumer: They have very less B2C businesses, recently they had launched
‘paratha’ production and distributed to consumers but due to some problems they got a complaint

27
against it, so they took out all their supplies from the market immediately and sent it to their
R&D department to rectify the issue.
They have a tendency of taking continuous feedback from their customers and improve it
immediately so that they have competitive advantage and can sustain in both long run and short
run.

Recommendations
Abdul Monem as a company is doing great in different aspects whereas there are always rooms
for improvement which will make the better eventually. The recommendations are as follows:
1. Background: The government of Bangladesh has to import almost 75% of the local
demand of Sugar as the local producers don’t have the capacity to produce. Igloo Sugar,
a concern of Abdul Monem Ltd. is serving the nation also has stepped into the
international market. But the company’s Food & Beverages sectors’ contribution is not
up to the mark both in local and international arena. Exporting of its production to the
international market which is very minimal. The company is losing a lot of business
despite having standard products and also good demand in the country and outside
country as well.
Recommendation: So, the company could think of expanding its sugar production
capacity and increase its presence in the local and international market.
2. Background: Freedom with responsibility- this is a very powerful concept to make a
company better performing. The employees and the top management at AML receive less
autonomy which obstructs them to take a lot of effective and innovative move promptly.
This is happening because most of the decisions are coming out the Chairman/Director
only. So the people under the top person take a lot of time to implement.
Recommendation: The Company could work on making autonomous to some of the
persons in the top management which will ease the communication flow and decision
making.
3. Background: Abdul Monem ltd. is serving Coca-Cola in Bangladesh for a good amount
of time now. They have a very good distribution chain which helps them to supply their
products to the remotest places. They also know the do's and don’ts and know how to
manufacture beverages.
Recommendation: Taking into account their competencies and know-hows the
company can go for their own brand of beverage and also ranges of different beverages.
This will help them to gain better revenues and profits.
4. Background: AML as a company is less employee oriented which creates a sense of
demotivation among the existing employees. The working environment is not one of the
worth mentioning one also. These all actually results less performance, less sense of
responsibilities among the employees and also increases human turnover.
Recommendation: The Company should focus more on employee happiness and better
working condition which will ensure better result from the employees.
5. Background: AML is doing great in their construction business. They are involved in so
many projects which includes 60% of government’s projects. They have their own brick

28
 production unit and ready-mix from where they can feed their construction business. But
other raw materials and components for construction business are sourced from different
other local or international suppliers.
Recommendation: The Company can go for vertical integration for their construction
business. Although they have some in-house support like Brick, Ready-mix etc for their
construction but they can go for in-house steel industry, Raw materials factory,
Construction equipment unit etc. which actually make their construction business
stronger and more price efficient.
6. Background: AML has no R&D unit where they come up with new businesses and
products. They actually take the help of third party for their R&D activities. This practice
has some disadvantages which are- costly, fear of leaking confidential data, lack of
empathy etc. The company has already faced problem for using third party R&D service.
They introduced a “RUTI” brand in the market which didn’t meet customer and also
company’s expectations as result was taken out of the market immediately.
Recommendation: AML could set up their own R&D department which will save a lot
of money and will eliminate a lot of problems related to third party R&D service. These
will eventually help the company to hold their brand image intact.
7. Background: Novus Pharmaceutical, one of the concerns of AML came into the market
in 2008. This company is infamous in the industry compared to other existing companies
in Bangladesh.
Recommendation: AML could focus more on promoting Novus in Bangladesh among
the doctors and patients through different promotional activities and the company also
can think to export to international market like North America where the medicine of
Bangladesh has good name.
8. Background: AML has many concerns like Igloo, Igloo foods, AM Sugar, Igloo dairy,
Novus Pharma where they need packaging items. As packaging is an important part of
product safety and also promotion.
Recommendation: AML has different suppliers for their packaging of different items
which actually increases their costs. The company could go for a vertical integration
where they will have their own packaging setup which eventually decease their cost and
increase their packaging quality which will ultimately make them more competitive.

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 Reference
1 AML Constuction. Retrieved April 17, 2018 from http://www.amlbd.com/aml-construction/
2 AML Constuction.Our Project.Retrieved April 18,2018 from http://www.amlbd.com/aml-
construction/our-projects/
3. Igloo.Ice cream unit. Retrieved April 17,2018 from http://www.amlbd.com/ice-cream-
unit/igloo/
4. Igloo Dairy Limited. Retrieved April 17,2018 from http://www.amlbd.com/igloo-dairy-
limited/

5. Igloo Foods Ltd. Retrieved April 17,2018 from http://www.amlbd.com/igloo-foods-ltd/

6. Danish Bangla Emulsion Ltd. Retrieved April 17,2018 from http://www.amlbd.com/danish-

bangla-emulsion-ltd

7. AM Securities & Financial Services Ltd. Retrieved April 17,2018 from

http://www.amlbd.com/am-securities-financial-services-ltd/

8. Abdul Monem Sugar Refinery Ltd. Retrieved April 17,2018 from

http://www.amlbd.com/abdul-monem-sugar-refinery-ltd/

9. AM Asphalt & Ready Mix Concrete Ltd. Retrieved April 17,2018 from
http://www.amlbd.com/am-asphalt-ready-mix-concrete-ltd/

10. AM Mango Pulp Processing Unit. Retrieved April 17,2018 from http://www.amlbd.com/am-
mango-pulp-processing-unit/

11. AM Energy Ltd. Retrieved April 17,2018 from http://www.amlbd.com/am-energy-ltd/

12. Monem Business District. Retrieved April17,2018 from http://www.amlbd.com/monem-

business-district

13.Primary Information collected from Mr.Asif(Deputy Manager of Igloo Foods)

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Appendix

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