FARR CERAMICS LIMITED

Presented By: ID
Shabhin Shahrin 161-2030-660
Md. Kawsur Ahmad Sojib 161-2197-060
Mohammad Johny 161-2270-060
Md. Ahsanuzzaman Nishu 171-5427-660
Yaminur Rahman 163-5135-660
 Introduction

• The ceramics industry in Bangladesh started its journey in

1958 by Tajma Ceramic Industries in Bagura
• Currently more than 60 ceramic manufacturers in the
country
• Another 20 will hit the market by June 2018
• According to (BCMEA), the yearly production capacity of the
local ceramics industry is tableware (250 million pieces),
tiles (120 million square meters) and sanitary ware (7.5
million pieces)
 Company Overview

• FARR Ceramics Limited (FCL) was established on 4th January

2005
• The entire plant was set up with machinery from Germany,
Italy and Japan.
• FCL started its commercial production from March 2007
with an installed capacity of 32,000 Pcs per day
• FARR Ceramics Limited has its global network in more than
35 countries of the world
 Company Overview

• Normally FCL exports 80% of its products to international

market and 20% to local market
• Total Revenue: US$ 2.5 – US$ 5 Million
• Main Market : North America, Eastern Europe, South East
Asia, Middle East, Western Europe.
• Product line : Round plate, dinner plate, meat plate,
breakfast plate
 Industry Market Share

Market Share of Tableware

Others
6%
Protik Ceramics Shinepukur Ceramics
9% 21%

Shinepukur Ceramics
Standard Ceramics
Farr Ceramics Star Porcelain
12% Standard Ceramics
4% Monno Ceramics
Star Porcelain Artisan Ceramics
5% Paragon Ceramics
Peoples Ceramics Peoples Ceramics
6% Farr Ceramics
Protik Ceramics
Others
Paragon Ceramics Monno Ceramics
12% 19%
Artisan Ceramics
6%

• Figure 1 Market Share Tableware as per BCWMA

 Six Segment Analysis of Ceramic
Industry of Bangladesh
• Global
Global recession
Increased labor cost in developed countries
Competitive advantage for Bangladesh because of
 Lower labor cost
 Availability of natural gas
 Hurts by ban on GSP
• Socio-Cultural
More women in workforce
Changing lifestyle
Increased demand for premium ceramic tableware
 Six Segment Analysis of Ceramic
Industry of Bangladesh
GDP Growth in Bangladesh
% Per Year
• Economic 9
8
7 6.5 6 6.1 6.6 7.1 7.2 7.4 7.6
8

Increasing GDP 6
5
4
GDP

Increasing disposable income 3

2
1
Decreasing inflation rate 1 -1
2
2 -1
3
3 -1
4
4 -1
5
0
5 -1
6
6 -1
7
7 -1
8
8 -1
9
9 -2
0
1 1 1 1 1 1 1 1 1
20 20 20 20
Decreasing interest rate 20 20 20 20 20

Static unemployment rate over last two years

• Socio-Cultural
Increased demand for ceramic sanitary ware and tiles
More women in workforce
 Changing lifestyle
Increased demand for premium ceramic tableware
 Six Segment Analysis of Ceramic
Industry of Bangladesh
• Demographic
Large population of 166,368,149
58.8% participation rate in labor force (2016)
life expectancy 70.65 years (2017)
Huge market opportunity
• Political/ legal
Stable political condition increases demand
• Technological
People are getting conscious about environment
Pressure group
Using environment friendly technology
 Porters Five force analysis
Interpreting Industry Analysis
• Competitive force differs across industries
• Michael. E. Porter suggests competition arises from-
 Rival sellers
 Potential new entrants
 Substitute products sellers across industries
 Supplier bargaining power
 Customer bargaining power
• Low entry barrier
• Weaker position of buyer and supplier
• Weak rivalry among competitor
• Moderate threat from substitute product
 Internal Environment
Analysis
Core Competencies
• Hi-Tech state of the art production machineries and processes

• Vertically integrated supply chain management system with other FARR

owned ancillary (power, designing, printing, packaging) firms

• Fastest production and delivery using the most modern technology

• National Export Gold Trophy for the consecutive years of 2011, 2012, 2013,
2014

• Brand name and market reputation of the firm

 SWOT Analysis of FARR
Ceramics Ltd.
Strengths Weaknesses
• Largest Production Capacity in • Only Specialized in Porcelain
the Industry of Porcelain Items Items
• Modern and Technologically • Less Focus on Local Market of
Advanced Factory Bangladesh
• Technological Know-Hows • Competitors Providing Both
• Vertically Integrated Supply Porcelain and Bon Chan Items
Chain Management System
• Huge Export Market
 SWOT Analysis of FARR
Ceramics Ltd.
Opportunities Threats
• Expansion to New Locations of Local • Changing Customer Lifestyles and
Market Tastes
• Production of Bon Chan Items • Substitute Products from China at
Lower Prices- Cheaper Imports
• Anti-Dumping Policies Imposed on
China in European Union (EU) • Increased Competition from Local
Ceramic Industry
• Expanding its Ancillary Firms to
Include Other Potential Support • New Market Entrants Offering Lower
Services Prices
• Creating more Sophisticated Designs • Gas and Electricity Shortages
of Tableware providing Richer,
• Political Instability
Satisfying Experience for Consumers.
 Corporate Level Strategy
• Corporate-Level Strategy – taken to gain a competitive advantage through the selection
& management of a mix of businesses competing in several industries or product markets
• Corporate Strategies:
 Allocation of resources
 Organization Organogram
 Portfolio Management
 Strategic
• Types of Corporate Strategies:
 Growth Strategy - methods to get more revenues from the sales of products or
goods
 Diversification Strategy - adding products, services to the existing business
 Related - owns more than one business that uses a similar set of tangible and
intangible resources take advantage of resources to achieve economies of
scope
 Unrelated - firm that manages several businesses with no reasonable
connection; creates value through financial economies, distributing capital over
many business units
 FARR Corporate Strategy

• FARR Corporate Strategies:

 Local Market Growth
 New design every six months
 Increase price by 5% twice a year
 Delivery option
 Creating artificial demand

 Export Market Growth

 Strong Internal Quality Assurance
 Creating new market every year ( 2015 - Argentina, 2014 – Brazil)
 Capacity building through agents
 Attending Expo’s worldwide
 Corporate Social
Responsibility

Unfortunately FARR Ceramics Ltd has no CSR

activities though their officials do some personal
social works.
 Recommendations

• Promotional activities such as TVC, newspaper & radio ad

• CSR activities such as – tree plantation, blood donation,
vaccination programs etc.
• Inform its consumers and customers about the new
improvement of its products
• Encourage its customers (retailers) by providing different
types of trade offers, complementary samples, gift offerings
etc.
• Availability of its products for more convenience of the end
users
• Increase the annual budget for merchandising expenses
THAN
K YOU