corporate level strategy: how diversified is aci group?

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Corporate Level Strategy: How diversified is ACI Group?

Honda investing in Abdul Monem Economic Zone (AMEZ): a new era of industrialization pg 10 ...


Editorial Board

Mr. Muza�ar Ahmed FCMA, FCS - ChairmanMs. Sarwat AminaMr. Asiful HuqMr. Tanzirul IslamMs. Nusrat AminaSyed A. Mamun, PhD, FCMA - Editor

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Corporate Level Strategy: How diversified is

ACI Group?

By CRISL Research Team


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IntroductionTypically, a corporate sets its corporate level strategy by diversifying its business into di�erent sectors to exploit competitive advantages. A good number of corporate groups have been emerged in Bangladesh for last two decades. This paper sheds light on such a corporate namely Advanced Chemical Industries (ACI) group to explore its corporate diversi�cation strategy.

CRISL Business Review, October - December 2017Corporate Level Strategy: How diversified is ACI Group?

ACI group is one of the largest business conglomerates which was established in 1973 by taking over the business of the then Imperial Chemical Industries Bangladesh Manufacturing Limited (ICI Bangladesh). Though Pharmaceutical is the core business of the group, it has diversi�ed its business into di�erent segment such as consumer goods, agricul-ture and retail chain. At present, ACI group operate its business activities through its fourteen subsidiaries presented in table 1.

ACI group is one of the largest business conglomerates which was established in 1973 by taking over the business of the then Imperial Chemical Industries Bangladesh Manufacturing Limited (ICI Bangladesh).

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”Table 1 Subsidiaries of ACI Group

Sl. ACI Subsidiaries /Business Unit Activity

Advanced Chemical Industries Ltd. (ACI)

The main objectives of the company are to carry out the business of manufacturing of pharmaceuticals, consumer brands, animal health care products and marketing them along with fertilizer, seeds and other agricultural items.

ACI Subsidiaries:

1 ACI Formulations Limited The principal activities of the company are manufacturing and marketing of a number of agrochemical and consumer products.

2 ACI Salt Limited The principal activity of the company is manufacturing and marketing of edible branded salt.

3 ACI Foods Limited The main objectives of the company are manufacturing, processing and marketing of di�erent food items including spices and di�erent snack items.

4 ACI Pure Flour Limited The main objectives of the company are to carry on the business of milling, processing, packaging and marketing of wheat flour products

5 ACI Motors Limited Trading of Agricultural Machineries, Small Commercial Vehicles and Construction machineries

6 Creative Communications Limited The principal activities of the company are managing media solutions and similar services for di�erent clients including television commercials and other advertisement and promotion related activities.

7 Premia�ex Plastics Limited The main objectives of the company are to carry out the business of manufacturing and marketing of plastic products, �exible printing and other ancillary business associated with plastic and �exible printing.

8 ACI Edible Oils Limited The main objectives of the company are to carry out the business of manufacturing as well as trading of all kinds of crude and re�ned edible oils, edible fats, food grade chemicals, cleansing materials, preservatives and other allied food products.

9 ACI Healthcare Limited The principal activities of the company are to be manufacturing and marketing of pharmaceutical products for regulated markets. The company is yet to start its commercial operation.

CRISL Business Review, October - December 2017Corporate Level Strategy: How diversified is ACI Group?

Sl. ACI Subsidiaries /Business Unit Activity

10 ACI Logistics limited The main objective of the company is to set-up nationwide retail outlets in order to facilitate the improvement in goods marketing e�ciency and to provide a modern self service shopping option to customers.

11 ACI Chemicals Limited The main objective of the company is to represent foreign and local principals and market and promote their products and process and engage in the service of indenting on their behalf.

12 ACI Agrolink Limited The main objectives of the company are to carry on the business of manufacturing, formulating and packaging of pesticide, fertilizer, plant nutrient, animal food and other nutrient products

13 Flyban Insecticides Limited The company's main function was to manufacture and sale of mosquito coil. The company was inactive since its inception.

14 Infolytx Bangladesh Limited The main objective of the company is the Development of computer software, e-commerce, information technology, communication and marketing.

The business activities of Business units and subsidiaries of ACI group presented in table 1 show that ACI group has diversi�ed its business into di�erent sub-sectors including plastic, chemical, logistic, food, agri-equipment etc. In spite of such a wider diversi�cation, the business of ACI is highly concentrated to pharmaceutical. More than 40% of the total revenue of ACI group comes from ACI pharmaceutical business unit which holds almost 50% of total group assets. Following its pharmaceutical unit, ACI group largely depends on its retail and agro-chemical business unit to generate revenue.

In brief, ACI group is broadly diversi�ed into pharmaceutical, agriculture, consumer goods and retail chain. However, the lion share of the group revenue is still concentrated to its pharmaceutical business unit which indicates the moderate level of corporate diversi�cation of ACI group.

Figure 1: Corporate Level Diversi�ication of ACI Group

In spite of such a wider diversification, the business of ACI is highly concen-trated to pharmaceutical. More than 40% of the total revenue of ACI group comes from ACI pharmaceutical business unit which holds almost 50% of total group assets.

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A better world with Big Data Analytics

SM MUSA, a graduate from Rotterdam School of Management, Erasmus University.

By SM Musa


Strong PublicationsCRISL Rating QuarterlyCRISL Business Review (CBR)

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CRISL Business Review, October - December 2017A better world with Big Data Analytics

IntroductionPresent day organizations have access to more data than they ever had. This access to enormous data has posed a new challenge for this organization: how to use this data to improve the performance of the organization? This challenge can easily be overcome through Big Data Analytics. This article is an attempt to discuss about the applications of Big Data and Big Data analytics, and the challenges to implement big data analytics in the organizations. Before we go into the main discussion let’s �rst see what is Big Data and Big Data Analytics.

Researchers have estimated that everyday almost 2.5 quintillion bytes of data are generated. And interestingly 90% of total data that has been generated so far, has been generated in last two years only. Big Data is di�erent because of its enormous volume, wide variety, and high velocity.

On the other hand, Big Data analytics can be de�ned asthe examining of large amounts of data to uncover hidden patterns, correlations and other insights”. With all the advanced technologies we are blessed with, it is very much possi-ble to analyze available data and get answers from it to help in our decision making.

Big Data applicationsBig Data analytics could be used almost every area of our business as well as society and environment. Many global corporations as well as other non-pro�t organizations are using Big Data analytics to improve the performance of whatever they do as their core activities. The next part of this article will present some prominent applications of Big Data analytics.

What is Big DataMckinsey Global Institute de�nes Big Data as “data-sets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze”. Big Data does not come from vacuum – it is generated from many data sources. We are generating data every single moment. For exam-ple, the social media activities such as like, comment, share etc. in Facebook, the product we are buying/selling both o�ine and online, the places we are visiting are sources of di�erent types of data about ourselves.

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Researchers have estimated that every-day almost 2.5 quintillion bytes of data are generated. And interestingly 90% of total data that has been generated so far, has been generated in last two years only.

Many global corporations as well as other non-profit organizations are using Big Data analytics to improve the performance of whatever they do as their core activities.

1. Understanding CustomersThe most evident application of Big Data analytics is to understanding customers.In fact, this is the most publicized areas of big data use today. Through Big Data analytics companies can now better understand customers than ever.For example, Big Data analytics help U.S. retailer Target to accurately predict even when their customers will expect babies; Wal-Mart can predict what products will sell.

Apart from corporate world, Big Data can be used even in politics to optimize supports from general public. Many people believe that Obama's win after the 2012 presidential election campaign was due to his team's superior ability to use big data analytics. Governments can use Big Data to understand people and their popular demands better.

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3. Improving Healthcare and Public HealthBig Data analytics have made it possible to decode entire DNA strings in minutes. This ultimately is helping scientists to �nd new cures and better understand and predict disease patterns. Apple's new health app, called ResearchKit, has turned the phone into a biomedical research device.Researchers are now able to develop studies through which they collect data from users’ phones and then compile data for further and better healthcare studies.

Big data techniques are already being used to monitor babies in a specialist premature and sick baby unit. By record-ing and analyzing every heartbeat and breathing pattern of every baby, researchers are able to develop algorithms that can now predict infections 24 hours before any physical symptoms appear. This is a huge application of Big Data analytics, as it has made it possible to use data to predict future public health condition especially in third world coun-tries. For example, Big Data analytics allow to monitor and predict the developments of epidemics and disease outbreaks. Integrating data from medical records with social media analytics enables us to monitor �u outbreaks in real-time, simply by listening to what people are saying.

2. Optimizing Business ProcessesBig data is also increasingly used to optimize business processes. Many Retailers are now able to optimize their inven-tory based on predictions generated from Big Data analyticsthrough the data generated from social media data, web search trends and weather forecasts.

One such business process is seeing supply chain. This particular business process is increasingly bene�ting from Big Data analytics. Using geographic positioning and radio frequency identi�cation sensorsto track goods or delivery vehicles and optimize routes by integrating live tra�c data, corporations are developing an optimized supply chain process.

HR business processes canbe improved using big data analytics. Big Data can help in optimizing talent acquisition and personnel performance by measuring company culture and matching perfect �t from the new talent pools. By moni-toring employees’ activities and their �nal performance, companies now able to formulate models that can help get the optimized performance from every employee.

4. Optimizing Machine and Device PerformanceBig Data analytics can transform a dull machine or device to smart and autonomous. For example, Big Data tools are using to develop self-driving car technology.Google along with many other start-ups is working to bring the self-driving cars in reality.Now, many cars are �tted with cameras, GPS as well as powerful computers and sensors to safely drive on the road with minimumhuman intervention. Big Data tools can also be sued to optimize the perfor-mance of computers and data warehouses.

For example, in Ireland, grocery chain Tescos has its warehouse employees wear armbands that track the goods they take from the shelves, distributes tasks, and even forecasts completion time for a job.

5. Improving Security and Law EnforcementBig Data analytics promise us a secure world. Big Data can help low enforcing agencies to prevent activities that are threats for public safety.The National Security Agency (NSA) in the U.S. uses big data analytics to foil terrorist plot. Big Data analytics also help to prevent cyber-attacks. Police forces use big data tools to catch criminals and even predict criminal activity and credit card companies use big data from transactions to detect fraudulent transactions.

For instance, in February 2014, the Chicago Police Department sent uniformed o�cers to make "custom noti�cation" visits to individuals they had identi�ed as likely to commit a crime through a computer generated list. The idea was to prevent crime by providing certain individuals with information about job training programs, or let them know about increased penalties for people with certain backgrounds. Though this kind of activities by low enforcement authority are not always welcome by all the citizens.

6. Optimizing City Resources and Improving City LivesBig data is used to improve many aspects of our cities. For example, Big Data allows cities to optimize tra�c �ows based on real time tra�c information as well as social media and weather data. A number of cities are currently piloting big data analytics to turn themselves into Smart Cities, where the transport infrastructure and utility processes are all joined up. Where a bus would wait for a delayed train and where tra�c signals predict tra�c volumes and operate to minimize tra�c jams.For example, American city Los Angeles uses data from magnetic road sensors and tra�c cameras to control tra�c lights and thus the �ow of tra�c around the city. A tech startup called Veniam is testing a new way to create mobile wi-� hotspots all over the city in Porto, Portugal. More than 600 city buses and taxis have been equipped with wi� transmitters, creating the largest free wi-� hotspot in the world. Veniam sells the routers and service to the city, which in turn provides the wi-� free to citizens, like a public utility. In exchange, the city gets an enormous amount of data - with the idea being that the data can be used to o�set the cost of the wi-� in other areas. For example, in Porto, sensors tell the city's waste management department when dumpsters are full, so they don't waste time, man hours, or fuel emptying containers that are only partly full.

7. Big Data & Financial TradingBig Data analytics and �nancial trading go hand in hand. High-Frequency Trading (HFT) is an area where big data �nds a lot of use today. Here, big data algorithms are used to make trading decisions. Computers are programmed with complex algorithms that scan markets for a set of customizable conditions and search for trading opportunities. The programs can be designed to work with no human interaction or with human interaction, depending on the needs and desires of the client.The most sophisticated of these programs are now also designed to change as markets change, rather than being hardcoded.

Big Data analytics is a game changer. Its potential is widely known. However, the understanding of the true value of big data remains a big challenge for decision makers. As it is di�cult to calculate the future values of implementing Bid Data analytics, many organizations remain undecided on whether to go for it or not. Besides this, there are some other challenges in implementing Big Data analytics. One of such challenges is the necessary skills to optimize the use of Big Data analytics itself.

A Gartner Survey for 2015 shows that more than 75% of companies were investing or were planning to invest in big data in the next two years. These �ndings represent a signi�cant increase from a similar survey done in 2012 which indicated that 58% of companies invested or were planning to invest in big data within the next 2 years. As more and more organi-zations are using Big Data analytics, more and more Big Data analysts will be necessary to get the true bene�ts from it. But lack of skilled analysts remains a big concern for the full development of Big Data analytics.


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As it is difficult to calculate the future values of implementing Bid Data ana-lytics, many organizations remain undecided on whether to go for it or not.

Honda investing in Abdul Monem Economic Zone (AMEZ):

a new era of industrialization in Bangladesh

By CRISL Research Team


Strong PublicationsCRISL Rating QuarterlyCRISL Business Review (CBR)

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CRISL Business Review, October - December 2017Honda investing in Abdul Monem Economic Zone ...

With the vision of to generate 10 million new jobs, earn additional USD 40 billion from exports and attract USD 20 billion in foreign direct investment (FDI) by 2030, Bangladesh government plans to set up 100 new economic zones. Abdul Monem Economic Zone (AMEZ) is the second private economic zone got the license from Bangladesh Economic Zone Authority (BEZA) to allot plot to local and foreign investors who are interested to set up their manufac-turing plant in the economic zone. This economic zone is situated on 216 acres of land at Gazaria in Munshiganj, very close to the Dhaka-Chittagong highway. AMEZ intends to create 100,000 new jobs by attracting new local and foreign investments.

A Japanese automobile giant took decision to invest USD 29 million in AMEZ to set up its manufacturing plant. Honda has already purchased 25 acres of land in AMEZ to set up its motorcycle manufacturing plant with joint venture of state-owned Bangladesh Steel Engineering Corporation (BSEC). Honda holds 70 of the ownership of the joint-venture while BSEC holds 30% of total ownership. The company has already started its production in a rented factory of 8,700 square-meter situated in Sreepur, Gazipur district with production capacity of 80,000 units.

Under this manufacturing project, Honda would like to manufacture 200,000 motorcycles per year in the context of increasing demand of motorcycle in local market. This manufacturing plant is going to create 350 new jobs and also supplies motorcycle at a�ordable costs. The ultimate credit of this investment by Honda must go to authority of AMEZ and BEZA to attract the investment of such a globally reputed company like Honda. In fact, the investment by Honda not only upholds the brand of AMZA but also sends a message to other investors about the viability of this EZ model. This investment example will help AMZA signi�cantly to attract more investors to set up their plant in this economic zone. Moreover, other special economic zone authority get the lesson from this example to convince di�erent global company to invest in their economic zones. If the authorities of economic zones can attract investors for new invest-ments which, in turn, will create huge employment opportunities in Bangladesh. With the increasing trend of employ-ment, Bangladeshi economy Indeed, the success of the model private economic zone may give extra pace in the emerging economy of Bangladesh by increasing foreign direct investment, escalating employment rate, and expedit-ing the industrialization.

Under this manufacturing project, Honda would like to manufacture 200,000 motorcycles per year in the context of increasing demand of motorcycle in local market. This manufacturing plant is going to create 350 new jobs and also supplies motorcycle at affordable costs.

Abdul Monem Economic Zone (AMEZ) is the second private economic zone got the license from Bangladesh Economic Zone Authority (BEZA) to allot plot to local and foreign investors who are interested to set up their manufacturing plant in the economic zone.

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