EXECUTIVE SUMMARY

Ceramics represent useful ornamental articles made from non-metallic, inorganic solids (clays, sand, and
feldspar) which are hardened at high temperature after molding. The industry is basically an
advancement of traditional earth made pottery works. Before reaching the age of ceramic and porcelain,
people had tried different materials starting from clay to wood, stone, shell and metal media. Based on
the diversity of final merchandises (type, size, quality, and standard) ceramic products are used to satisfy
household as well as industrial demand around the globe. The ceramics industry is a booming
manufacturing sector in Bangladesh. Over the years the industry has flourished immensely. While it
caters to 85 percent of the local demand it also exports quality ceramic products to international markets.
The growth trend is an indication of the industry's potential to be one of the top foreign exchange earners
of the country. After much inspection, we have decided to choose Shinepukur Ceramics Ltd as our
company of choice. Their dedication to maintaining international quality in every aspect of their
business is something the sets them apart from their competition in the market. Radiant takes an
employee centric approach in their business by recruiting highly skilled employees and giving them
training which is unrivaled in the market. Radiant is the only company that has a dedicated,
internationally affiliated training center for their employees and this has contributed immensely in the
quality of their workforce. However, SLC does face some challenges in the market, as do most of the
ceramics companies in the country and they must take effective measures to tackle these.

.
 CERAMICS INDUSTRY IN BANGLADESH

2.1 INTRODUCTION

The ceramic industries started during the late 1950s when the first ceramic industrial plants were
established. The industry mainly produces tableware, sanitary ware, and tiles As of 2011, there were 54
ceramic industrial units throughout Bangladesh, employing about 500,000 people. In the first nine
months of the fiscal year 2013- 14, Bangladesh exported about USD 36 million worth of goods after
meeting 80% of the domestic demand. The main export destinations are the EU, USA and the Middle-
East.

The first ceramic plant was established in Bogra in 1958. Owned by Tajma Ceramic Industries, it was a
small manufacturing plant for porcelain tableware. Peoples Ceramic Industries, formerly Pakistan
Ceramic Industries, started production in 1966. Bengal Fine Ceramics Ltd, the first Bangladeshi
stoneware manufacturer, began its operations in 1986. One of the largest ceramic manufacturers in
Bangladesh, Monno Ceramics, was established in 1985 to produce porcelain tableware with other
ceramic items later. Shinepukur Ceramics was established in 1997 for the production of bone china and
porcelain tableware. Shinepukur later captured around 60% of the domestic market.
2.2 PRODUCTS BY CERAMICS INDUSTRY

The local ceramics industry mainly produces tiles, tableware, and sanitary ware. According to
Bangladesh Ceramics Manufacturers and Exporters Association (BCMEA), the yearly production
capacity of the local ceramics industry is as follows: tableware (250 million pieces), tiles (120 million
square meters) and sanitary ware (7.5 million pieces). Value addition in ceramics stands at nearly 65
percent. To cater to the increasing demand for ceramic products all major Bangladeshi ceramic
companies have been expanding their plants and operations. The local industry is also actively exploring
the potential of manufacturing advanced ceramic products such as industrial ceramics for spinning and
textile factories, medical ceramics, ceramic plate for bulletproof jackets, and so on.

2.3 SUCCESS OF CERAMICS INDUSTRY

Currently, more than 500,000 people are engaged in the local ceramics industry. To create skilled
manpower for the sector specialized departments and institutes have been established in the leading
universities of the country such as the department of glass and ceramic engineering (GCE) in
Bangladesh University of Engineering and Technology, Rajshahi University of Engineering and
Technology, Bangladesh Institute of Glass & Ceramics, Faculty of Fine Arts in Dhaka University, and
so on.

The industry is also positioned to expand rapidly in the global market with its high-quality products, low
labor costs, and creative entrepreneurs. Traditional manufacturers of ceramics such as Italy and Spain
have been experiencing difficulties in remaining competitive due to rising labor cost and the ongoing
global financial crisis. Therefore more orders are being placed to low-cost countries like Bangladesh. In
terms of quality Bangladeshi ceramics can easily compete with the products of its close competitors
China and India. Now, if the industry gets proper incentives and support from the government, it has all
the potential to be one of the top ceramics-exporting countries in the world. Much like the garments
industry, this would be another manufacturing success for Bangladesh.
2.4 OVERVIEW OF SOME COMPANIES OF THE CERAMICS INDUSTRY

Mean of
Companie N Operat ROA ROE Ran Curren Total Debt
s Mean ing Net ks t Quic Inventor Asset equity
profit profit Ratio k y Turnove ratio
ratio Turnove r
Monno 6 20.49 12.52 1.08 .88 2.61 4 .97 .26 2.02 .77 .94
Shinepuk 6 33.58 27.86 10.66 3.56 9.24 2 .99 .31 1.44 .35 1.11
ur
RAK 6 33.84 18.92 11.82 6.78 11.19 1 1.31 .68 2.46 .58 .40
Ceramic

Source: Different Annual Reports of Companies 2006-2012

2.4.1 Monno Ceramics

The Monno ceramics is maintaining satisfactory operating profit though it is earning poor gross profit
and net profit. The net profit margin is really in worst position. The same is to be said regarding the
ROA and ROE. The poor profitability is not due to blockade of huge money in current assets that is
proved by the poor current and quick ratio. The low inventory turnover depicts the poor sales
management of the company. The profitability is worsening due to poor asset management that is also
reflected by asset turnover ratio. The debt equity ratio is indicating that the firm using more leverage in
an adverse position of poor net profit earning environment.

2.4.2 Shinepukur Ceramics

The Shinepukur is one of the better performer among the selected companies in profitability reflected by
the gross profit, net profit and operating profit ratio but poor working capital management is reflected by
the below standard current and quick ratio. The inventory turnover is also same as other firms that
should be improved. The poor total asset turnover is also reflecting the asset management of that firm is
not satisfactory. The debt equity ratio is depicting that the firm is using more debt capital in their capital
structure.
2.4.3 RAK Ceramics

The RAK ceramics is the best performer regarding gross profit, operating profit and net profit margin. It
gains also better return on asset and on equity. Though the liquidity ratios are below the standard of
convention, are better among the selected companies. The inventory and total asset turnover is
comparatively better also. The debt equity ratio is showing an optimum capital structure.

SHINEPUKUR CERAMICS

After conducting research and findings, the company we chose is Shinepukur Ceramics LTD. It is one of
the fastest growing ceramics companies in the industry. Unlike RAK ceramics, Shinepukur
manufactures and produces ceramics tableware’s only. They are the top ceramics tableware producing
company in Bangladesh.

3.1 COMPANY PROFILE

Shinepukur ceramics (SCL) was founded in Bangladesh in the year 1997 under the companies act, 1994
as a privately held company and started its manufacturing operation in 1999 and has been one of the
fastest growing companies in the industry.

It was converted into a public listed company in the year 2008 and the shares of the company has been
listed in the Dhaka Stock Exchange and Chittagong Stock Exchange under the DSE and CSE direct
listing regulations 2006. Currently BEXIMCO owns its 100% shares thereby becoming its holding
company. It has so subsidiary or associate company.

Shinepukur Ceramics operates a single industry segment engaged in manufacturing and marketing high
quality porcelain and high value added Bone China tableware both sold locally and imported in
international market. They also manufacture and sell ivory China, high alumina porcelain as well as
satin China. Currently Shinepukur Ceramics is one of the leading top ceramic companies in Bangladesh.

It has its Corporate office located in Dhanmondi R/A, Dhaka however the industrial units are located in
Beximco industrial park, Sabaro, Kashimpur and Gazipur.

3.2 PARENT COMPANY

BEXIMCO is a multinational conglomerate holding company based in Bangladesh currently it is

Bangladesh’s largest private sector industrial enterprise. It has evolved from being primarily a
commodities trading company to a leading, diversified group with a presence in industry sectors
including textiles, trading, marine food, real estate development, hospitality, construction, information
and communication technologies, media, ceramics, aviation, pharmaceuticals, financial services and
energy that account for nearly 75% of Bangladesh's GDP.

BEXIMCO comprises of five publicly listed companies and sixteen private companies with over 60,000
employees and 230,000 shareholders worldwide. BEXIMCO has now become one of the most
recognizable brand names in Bangladesh with its innovation, trust and quality

3.3 MANAGEMENT

SCL is managed and run under direct supervision of Mr Salman F. Rahman, the deputy chairman of
BEXIMCO.

3.3.1 Board of Directors

 Chairman - A.S.F Rahman

 Vice Chairman – Salman F. Rahman
 DIrectors - O.K. Chowdhury , Iqbal Ahmed and Masud Ekramullah Khan
 Executive Director and Company Secretary – Mohammad Asad Ullah
3.3.2 Management

 Chief Executive Officer – Mohammed Humayun Kabir

 Executive Directors – Md. Luthfor Rahman and Md. Faruque Ali
 General Managers – Md. Rafiqul Islam,
- S.R Ansari (PORCELAIN) and
- Faqurue Ali (BONE CHINA)
 Lower level Managers – there are 7 lower level manager

3.4 MISSION

Each of the activities of SCL must benefit and add value to the society. It is highly believed that the final
analysis SCL is accountable to each of the constituents with whom they interact including the
employees, customers, business associates, shareholders and the citizens of the country.

3.5 VISION

To be regarded as world class ceramics company through product.

3.6 GOALS
 To sustain a significant sales growth
 To develop employee skills through training
 To ensure customer satisfaction
 To ensure quality products

3.7 VALUES
 Transparent and fair in dealings
 Share and ensure social Responsibility
 Work as a team
 Live up to commitment
3.8 POLICY
 Seek customers need and demands, thrive to satisfy and exceed the expectations
 Improvement of productivity
 Cost reduction
 Maintaining high standards of safety, health and environment

REASONS TO CHOOSE SHINEPUKUR CERAMICS

Today, Shinepukur is the leading Bone China and Porcelain Tableware Manufacturer and Exporter
from Bangladesh, equipped with the most modern state-of-the-art and latest Machinery. We chose
this company for the following reasons-

4.1 COMPETITIVE ADVANTAGES OF SHINEPUKUR

There are some competitive advantages of SCL that makes it better than its competitors and an ideal
choice for us.

4.1.1 Management System

ShinePukur follows fully corporate culture. Corporate culture refers to the beliefs and behaviors that
determine how a company's employees and management interact and handle outside business
transactions. Employees have the power and authority to make the critical decisions necessary to
produce quality products and effectively serve to the customers. Employee empowerment is a concept
that vexes many supervisors. Although most managers say they want to empower their employees, few
actually do it well. Employee empowerment is a buzz-word often used by management, yet seldom
practiced effectively in most organizations. In ShinePukur Ceramics limited from higher level managers
to workers, every individuals have the freedom to take decisions which results to empowerment of the
employees. This is one of the strongest factors of ShinePukur which keeps the company ahead of other
competitors.
4.1.2 Export Market

Shinepukur has successfully developed a substantial export market for the top-of-the-line Bone China
and Porcelain Tableware and the customer portfolio now includes world-renowned Tableware
companies of different states. Many of the established and aged companies worldwide had to shut down
the production due to high cost of labourer and raw materials. But considering the Brand value/image
these companies outsource and search for the best suppliers or manufacturer. ShinePukur has a good
reach to this Brand market, As a result many partners and clients all over the world. On the other hand
the other local companies of the country cannot reach to this Brand market. So they target the local
consumers and supply their products partnering with local supershops to reach mass number of
consumers. Hence they have sell the products at much lesser price considering the economic condition
of the country. Though some companies export their products to different countries company, but as
they cannot reach to the Brand market, the products don’t get the expected rate. As a result very less
percentage of profit from their export sales.

Export Market of ShinePukur:

Major Partners and Clients :

  COUNTRY   PARTNERS AND CLIENTS  
  Argentina : Falabella  
  Bangladesh : Biman Bangladesh Airlines  
  Canada : Air Canada, Renaud and Cie  
  Egypt : Zeiny Center  
  France : ARC International, Kozillius, Promotion 7  
  Germany : Villeroy & Boch, Clou & Classic, Breker, Tchibo, Kahla  
  India : Goodearth, Jindal, Kabani Crockery, Lakshmi Sales, Les Classiques, Stallion Hotel  
Richard Ginori, Tognana Porcellane, Abert, Bitossi Home, Cislaghi, Fade, Profili
  Italy :  
Pinto, Thun
  Russia : Orion, Sakinat  
Porsgrund, Hadeland, Christiania GlasMagasin, Iittala AB, Rosendahl, Tilbords,
  Scandinavia :  
Wik & Walsoe, Fyrklovern AB, Duka, Perfect Home
  Spain : La Cartuja, Aramis Décor, Riera, IMC, Dalper  
  Turkey : Koleksiyon, Hisar, Bernardo, Pasifik Group  
  U.A.E. : Hadi Enterprise  
Wedgwood and Royal Doulton, Portmeirion, Denby, British Airways,
  UK :  
Sainsbury’s, Fenwicks, TCC
  U.S.A. : Libbey Inc., Cardinal, Cru International
4.1.3 Advanced Technology

Shinepukur Ceramics is equipped with cutting-edge technology, the top-of-the-Line Testing and Quality
Control Laboratory, own raw material disposal set-up, own captive gas-based Power generation
capability, own water supply through Deep Tube well and Sanitary facilities. The facility has its own
Medical Center with in-house registered doctor. Hence world class product quality and its blue chip
overseas customers.

4.2 OPERATIONS

The company started its commercial operation of porcelain and bone china units in the year 1999 and
has been continuing as one of the fastest growing company in the industry. Despite the complex
economic issues worldwide along with increased competition from new entrants posing new challenges
for every concern in this industry, this company is fully geared to meet these challenges and continues to
perform well by focusing on product quality, product innovation and customer’s satisfaction and
improving the customer base.

At 2003 for installing the new machinery, the gross turnover stands at taka 1126.02 million with a
growth of 11.94% as compared to previous year’s turnover of taka 1005.90 million. Considering the
rapid increase of demand of the products in foreign and domestic markets, the management of the
company took steps to expand its porcelain until to double the existing production capacity and keep its
share in the international and domestic market.
4.3 STATISTICS

4.3.1 Financial Statistics

Particulars 2009 2008 2007

Authorized Capital 5,000,000,000 5,000,000,000 5,000,000,000

Paid up Capital 6,60,600,000 6,60,600,000 6,60,600,000

Share holders equity 2478711483 2376363149 103462888

Turnover 1695710571 1529918239 1386130532

Gross Margin 559200398 499392643 455662273

249186649 210397136 172862878

Net Profit before tax

Net Profit After tax 172371934 179915587 130231324

Amount of Dividend 126.04 210.06 138.73

Number of Share 84028320 70023600 28620000

Share holder‘s equity 2478711483 2376363149 1034628881

Return on paid up Capital 322243902 308691588 355161290

Rate of Dividend 15% 10% 10%

EPS 2.05 2.14 1.86

Number of Share holder 27803 2204 1940

4.3.2 Key Operating and Financial Data

Particulars 2009 2008 2007

Turnover 1695710571 1529918239 1386130532

Cost of goods sold 1136510173 1030525596 930468259

Gross Profit 559200398 499392643 455662273

Operating expense 87971260 9063779 80054090

Operating Profit 471229138 408754864 375608183

Financial cost 209672116 188309477 203162044

Total Asset 4645020937 4449211423 3058685463

Total Current Asset 1320809490 1193107130 1263361276

Total Current Liabilities 1503775825 1340348231 1142008842

Total Banking Borrowing 1954411181 1902953557 1778831707

4.3.3 Market Share

2008 2009 2010 2011 2012

Monno 968,613,719 779,581,461 813,786,510 826,088,878 778,623,849
Fu-Wang Ceramics 296667642 312617029 428081147 607801483 744109070
Sheinpukur LTD 1,529,918,239 1,695,710,571 1,926,745,719 1,901,444,562
RAK 3,839,025,765 4,009,021,454 4,580,008,209 4,908,171,279
Standard 106,048,680 110,755,163 172,586,011 210,283,278 210,196,455
Total Sales 20,000,000,000 20,000,000,000 20,000,000,000
Market Share
Growth Rate

Monno 3.897907305 4.06893255 4.13044439 4.032428082

Fu-Wang Ceramics 1.563085145 2.140405735 3.039007415 2.247499432
Sheinpukur LTD 8.478552855 9.633728595 9.50722281 9.20650142
RAK 19.19512883 20.04510727 22.90004105 20.71342571
Standard 0.553775815 0.862930055 1.05141639 0.82270742

The table consists a comparative data of the companies in the Ceramics Industry

4.4 ACHIEVEMENTS:

Soon after launching, Shinepukur could establish its leadership in Ceramics Tableware Export of
Bangladesh, achieving nearly 60% of total National Ceramic Tableware Export every year. It’s worth
mentioning that Shinepukur is the largest Ceramic Tableware exporter from Bangladesh since
establishment. The company has been awarded with many international and national awards in their
journey of 22 years. These are:

4.4. 1 National Export Trophy:

In recognition of its excellence in ceramic export and become the highest exporter, Shinepukur
Ceramics has been awarded “National Export Trophy” for record four times, i.e. for the Fiscal Year
2009-2010, 2005-2006, 2002-2003 and 2000-2001 by the Government of Bangladesh
4.4.2 Asia’s Most Promising Brand Award:

Shinepukur Ceramics awarded “Asia’s Most Promising Brand 2013” by World Consulting and
Research Corporation (WCRC) at the Asian Brand and Leadership Summit 2013 held in Dubai.

4.4.3 Dun & Bradstreet Corporate Award:

Shinepukur Ceramics Limited was awarded “Dun & Bradstreet (D&B) Corporate Award” in 2011
in its respective category. Shinepukur Ceramics is the first and only listed ceramic tableware
manufacturer of the country to win such recognition from Dun & Bradstreet Rating Agency
Bangladesh Limited.

4.4.4 Superbrands Award:

SCL was also awarded “Superbrands” in 2010 first and only ceramic tableware manufacturer of
Bangladesh to receive such recognition of its excellence in domestic market operation.

4.4.5 Certification:

The company also has been certified with ISO 9001:2008 by Det Norske Veritas (DNV) of
Netherlands for quality and Process Management.

COMPANY ANALYSIS

5.1 PORTER’S FIVE FORCES

Threat of new entrant

  Bangladesh suitable for ceramics industry

 Comparatively high start up cost as raw materials needs to be imported

 New companies with modern or attractive designs can be a threat

Bargaining power of Supplier

 Raw materials imported

 supplier can increase prices any time

 High cost

 Time consuming

 Customs charges

Threat of substitute

 Food graded plastic tableware like Bengal Plastic

 Corelle Glassware

Bargaining power of buyer

 Fixed price

 Buyers have upper hand

 Customers can easily switch to other brands

Rivalry among existing competitions

 No co ordination or co operation among companies

  Too many competitors both local and international

5.2 PESTLE ANALYSIS

Political

 Political conflicts

 trading policies

 Import export policies

Economic

 Local and foreign economic situations

 High tax rates

 Custom charges

 Inflation rates

 Rising labor costs

Social

 Demand of different people

 Buying behavior

 Buying pattern

 Brand preferences

 Ethical barriers

Technology
  Research and development

 Advanced machinery

Legal

 Laws to maintain regulation

 Employment law

 Import export law

Environment

 Minimize harmful substances

 Reduce pollution

 Reduce waste

PROBLEMS AND RISKS

6.1 Problems faced by the company:

Low efficiency of workers:

One of the prime problem of the company is the workers are not highly efficient. In other countries the
work done by only a single labor is done by 3 persons in Bangladesh.
Importing all raw materials:

In Bangladesh the clay found in Mymensingh is not suitable for making tableware. It’s only suitable for
making tiles. So, the chief raw materials have to be imported from different countries and resulting in
investing more to import instead of locally producing products. The damage and poor quality goods
cannot easily be returned.

The price of natural gas

India has all the raw materials required for producing tableware but cannot produce as the natural
gas is not sulfur free. The natural gas of Bangladesh is sulfur free. But, recently the price of natural
gas has increased. So, along with other industries the ceramics industry is facing problems. The
company pays high tariffs on gas compared to other sectors.

Problems with wages:

The government has now increased the wages of garments workers. The minimum wage is 8000tk
for a garments worker at present. So, the ceramics workers would shift jobs to the nearby garments
industry if not paid accordingly.

Irregular power and gas supply:

The firm suffers due to irregular power and gas supply. According to industry sources, to harness
power during the shortfall period they use diesel-run generators but due to high oil prices it turns
out to be very expensive.

High import duty:

The industry imposes high import duty on certain ceramic raw materials from 7.5 percent to 15
percent. Besides this sector pays high value added tax (VAT) of 15 percent on produced goods.
The company lacks high level manufacturing and industrial engineering techniques, required
machinery and equipment and international standard laboratory for testing and quality control.

Difficulties in getting health certificates from BSTI:

The firm faces difficulties in getting health certificates from BSTI, which is required by many
international buyers, especially in the European market. The existing complex pre-shipment
procedure delays the process of export and involves additional expenditure to increase production
cost.

6.2 RISK FACTORS AND MANAGEMENT PERCEPTIONS:

Risk is always associated with any kind of investment. So before taking decision on investing in the
shares of Shinepukur Ceramics Limited the investors should carefully analyze the following risks in
addition to the information contained in the information Document:

Interest Rate Risk:

Interest rate risk is concerned with borrowed funds of short term and long term maturity. Volatility in
money market and increased demand for loans/investments funds raise the rate of interest. High rate of
interest enhances the cost of fund of a Company and squeezes the profit. SCL is not affected by this
type of risk as the Company has not borrowed fund at flexible rate.
Management Perception: Since the SCL has not borrowed fund at flexible rate, hence, the interest rate
risk does not arise.

Exchange Rate Risk

Exchange rate risk relates to the core business of SCL, since it mostly exports abroad in foreign currency
and imports materials from abroad in foreign currency also. Sometimes, the Company imports
machineries from abroad where foreign currency is involved and exchange rate can impact the matter.
The Company is also exposed to foreign currency loans.

Management Perception: As SCL earns I foreign currencies, it can also meet its foreign currency
liabilities and costs out of its foreign currency earnings.

Industry Risk:
Like other companies, SCL also suffers from industry risks arising out of changes in customer choices,
fashion and design.

Management Perception: SCL continuously carries out research and development (R & D) to keep pace
with the customer choices, fashion and design.
Market & Technology Related Risk:
Technology for a ceramics manufacturing Company is being upgraded in the developed countries as
well as other developing countries in the world. Emergence of new technology may cause obsolescence
of existing technology/equipment. So embracing with new technology is essential for ensuring better
services and cost efficiency.

Management Perception: The Management of SCL is aware of technological changes and has adopted
new technology gradually according to a well designed strategy. The gradual adoption of new
technology helps to mitigate the risk of obsolescence or other uncertainties. Further routine and proper
maintenance of the plants and equipment carried out by the SCL ensures longer service life for the
existing equipment and facilities.

Potential or Existing Government regulations:

Like other Companies, SCL operations are also affected by potential or existing Government
regulations relating to import, export, and foreign exchange, monetary and fiscal regimes.

Management Perception: Since SCL is an export oriented Company the Government regulations are
mostly investment friendly including lower taxes and duties, “duty drawback” and easier access to
credits.

Potential Changes in global or national policies:

The performance of the Company may be affected due to unavoidable circumstances both in
Bangladesh and worldwide, such as war, terrorism, political unrest in the country or customer/ supplier
countries. Changes in global or national policies may also adversely affect the economy in general.

Management Perception: The risk due to changes in global or national policies is beyond control of any
Company. Yet SCL has spreaded its import and export operations in various countries of the world to
reduce the risk. Further, it adopted policies to meet the challenges from potential changes in global or
national policies.

Non-operating History:
There is no history of non-operation in the case of SCL.

Management Perception: To overcome these uncertainties, the Company has its own power backup,
scientific inventory management and continuous market promotion systems, which may reduce the non-
operating risk.
Operational Risk:
Non-availability of imported materials may affect the smooth operational activities of SCL. On the other
hand, the plants and equipment may face operational and mechanical faults due to various disasters, lack
of supervision, unforeseen events and negligence leading to severe accidents and losses.

Management Perception: The Company is equipped with power generation and demand management
system, which reduces operational risk. Besides, the plants and equipment are under insurance coverage
in order to get reasonable compensation for any damages. Apart from those, routine check and proper
maintenance of the plants and equipment also reduce and eliminate the operational risk.

SOLUTIONS

1. Holding Workers Training Programs – since there is a lack of efficiency in the workers
shinepukur should hold worker train and development programs to train the workers and help
them gain skills.

2. Motivating the workers – the managers should communicate with the workers and motivate them.
In order to do so he can hold development programs, cultural programs or offer them incentives
such as a pay raise.

3. Work environment – one reason for inefficiency of workers could be improper working
environment. The managers should try to provide a safe and enthusiastic work environment for
the workers

4. Having multiple suppliers for raw materials – since they import raw materials from other counties
it is very costly. SCL could have multiple suppliers for raw materials and choose the best quality
and cheapest rate.

5. Loan programs – since it is very costly to import raw materials and the tax rates and custom rates
are also high, SCL could sign a bond or contract with a bank for loan programs.
6. Requesting government to reduce gas prices – The price of gases are raising at a high rate. Since
it is not possible to produce ceramics tableware without it they could request the government to
set a comparatively reasonable rate for the natural gas.

7. New policy for the customs – Since the customs procedure at the arrival of raw materials and
exporting of the products are very time consuming and the tax rates are very high, they could try
and talk to the government regarding this to allow a new policy that would reduce the time lost in
the procedures.

8. Manufacturing machineries locally – they currently import all the machineries from outside
which can be manufactured in the country. So they should try to switch to locally manufactured
machines to reduce the costing and easy maintenance.

9. Health certificate from BSTI – they should try to get the health certificate from BSTI
(Bangladesh Standards and Testing Institution) which would help them to get more international
buyers and suppliers and also create a better brand image.

Recommendations

 SCL should improve their designs to more modern designs

 They should confirm the availability of its products for convenience of the users
 They could introduce new products other than being limited to Tablewares only
 SCL should inform its consumers and customers about the new improvement of its products
 They can encourage the customers by providing different types of trade offers, complimentary
samples and gifts.
 Should improve their visible promotion and marketing to reach out to more local customers
 SCL should cover as much outlet it can ensuring the availability of the brand
 Create a brand image through aggressive marketing and advertising
 They should increase the annual budget for merchandising expenses
 They should be more sincere about their local market
BIBILOGRAPHY
1. http://www.shinepukur.com/
2. https://en.wikipedia.org/wiki/Shinepukur_Ceramics
3. Shinepukur Ceramics shareholders okay acquisition by Beximco Ltd"
4. https://www.thedailystar.net/supplements/overview-bangladeshs-ceramics-industry-1498489
5. https://www.beximco.com/assets/investor/scl-annual-2010.pdf
6. http://www.shinepukur.com/index.php?p=products
7. http://www.shinepukur.com/index.php?p=latest_product
8. http://www.beximcoltd.com/ceramics.php
9. http://www.beximcoltd.com/ict.php
10. http://www.thedailystar.net/news-detail-94809