BANGLADESH: MI Cement to add new unit soon

M.I. Cement Factory Ltd looks to install new production unit soon to cater the growing demand for cement in the country.

"We have decided to set up another Packing Unit and 1,500 tonnes capacity OPC Silo to enhance the delivery capacity of our cement (Crown Cement)," Mohammed Jahangir Alam, chairman of M.I. Cement Factory Ltd, said.

"This will also help maintain the quality of our cement and thus keep the pace of increasing revenue," he said in the company's annual report.

Bangladesh is ready to get the wave of much anticipated development in terms of public infrastructure, communication and housing facilities, he said, adding that "So, the cement industry in Bangladesh is headed for a revolution."

High densities of people in cities, unplanned urbanisation and rapid economic development are likely to expand cities vertically rather than horizontally to achieve maximum utilisation of available space and ensure future food security by not urbanising fertile land, he continued.

"To achieve this, there is no alternative to cement," Mr Alam said on behalf of the company's board of directors.

Quoting a recent study, Mr Alam also said that the per capita cement consumption in Bangladesh was still lower at 107 KG, which is 210 KG in India, 265 KG in Pakistan, 310 KG in Sri Lanka and 570 KG in Korea, indicating future growth of cement consumption here.

The growing per capita income and socio-economic condition of the people are pushing them to change their choice and taste towards modern home, further increasing the demand of construction materials including cement, he said.

At present, the company's total production capacity is 5,800 tpd, which is amounted to 1.740 million tonnes, per year.

Listed on the bourses in 2001, the company has emerged as one of the leading manufacturers of cement in Bangladesh.

Mr Alam said that in the fiscal year 2013-14, the political unrest hampered the day to day normal business activities of M.I. Cement and lessened its cement delivery than expected.

However, the competitive environment prevailing in the market, the company always strives towards enhancing the revenue by satisfying the valued customers.

Thanks to the efforts, the company became able to increase its revenue by 17 per cent compared to the previous year despite the political unrest.

Cost of goods sold in the year ended on June 30, 2014 was Tk 6,731.73 million as against Tk 5,731.17 million in the previous year; this increase in cost of goods sold is mainly due to the fiscal year's higher sales volume comparing to that of the previous year.

Its operating profit increased to Tk 937.10 million from Tk 822.47 million of the last year, reflecting the effect of increase in gross profit, said the annual report.

In the year 2013-14, the company's turnover was Tk 7,990.64 million against Tk 6,829.70 million in the previous year, registering 17 per cent growth.

Till date, the company competes internationally to maintain 45 per cent of the cement export from Bangladesh and significantly contribute to the country's economy by earning foreign currency.

In the year ended on June 30, 2014, it contributed Tk 1,969,838,314 to the national exchequer as corporate tax, customs duty and value added tax (VAT) etc.

At the annual report, the board of directors also expressed their continued commitment to comply with all relevant safety, health and environment requirements.