internship on unilever

7/23/2019 Internship on Unilever

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1. Introduction

a. Report Background: The report Development of an Ecient

Treasury Management Model for nilever Banglades! "imited

has been conceived as requirement of Internship program. This report

aims to look into treasury operations of Unilever Bangladesh, look into

industry practices, benchmark its performance, identify areas of

improvement and design recommendations.

#. $#%ective:

Broad $#%ective: The broad obective of this report is to understand

treasury operations of UB!, benchmark "ith other companies, and propose

recommendations.

&peci'c $#%ectives:

i# $hat is the treasury organi%ation structure&ii# $hat are the treasury activities'operations done by UB!&iii# $hat is the bank a'c structure of UB!&iv# (o" is cash de)cit'surplus managed&v# (o" is the collection process monitored&vi# $hat kinds of collection bank products are used&vii# (o" is the payment process monitored in UB!&

viii# $hat kind of payment products are used by UB!&i*# $hat kind of collection products are used by peer companies&*# $hat kind of payment products are used by peer companies*i# (o" is liquidity risk managed by UB!&*ii# (o" is commodity price risk managed in UB!&*iii# (o" is e*change rate risk managed in UB!&*iv# $hat are the practices of peer companies&*v# In each of the front "hat are the improvement points for UB!&*vi# $hat are the ne" products banks are o+ering "hich "ould add

value in Treasury perations in UB!&

c. &cope: The scope of the report is to have an overvie" of treasuryoperations of Unilever Bangladesh !imited. -ompare operation "ith

other peer companies. The scope of the comparison is on the bank

products used for their respective payment and collection process.

d. Met!odology:In order to conduct this report, secondary information

has been used as "ell primary information source has been used.


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Under primary information collection, follo"ing intervie"s "ere conducted/

i# 0inance -ontroller/ 1r. 2hsan (abib, 0inance -ontroller have been

intervie"ed on several occasions, to understand Treasury

perations and overall )nance overvie"ii# 0inance 3hared 3ervices/ 1r. 3hahadat Ullah, 033 1anager, have

been intervie"ed to understand the payment process and to

understand the requirements of suppliersiii# -4 0inance/ 1r. 251 2mdadullah Bhuiyan, 0inancce 6*ecutive, -4

0inance, has been intervie"ed to understand the collection process

and ho" it is related stock dispatchiv# 1arico Bangladesh !imited/ 1r. 0aisal 3iddiquee, 3r. 6*ecutive,

Treasury, has been intervie"ed to understand the end to end

treasury operations and thus benchmark "ith UB!.v# Berger 7aints Bd !td/ 1r. 1asud 8omani, 2ssistant 1anager of

Berger 7aints Bd !td has been intervie"ed to understand the end to

end treasury operations of the Berger B4

Unilever Bd !td9s treasury operation is governed by its global mandates.

These documents have been studied for a better understanding of operation

policies. In addition to that di+erent facility and service document "ithdi+erent banks have been studied.

e. "imitation

This report has not investigated the cash forecast, bank reconciliation

and other internal accounting entry process. It has overvie"ed the

banking products, banking infrastructure and other IT integration

related to bank process have been looked and compared "ith 1arico

Bangladesh !td and Berger 7aints Bd !td. This report has not made any

cost comparison : rather has looked into process and control issues.

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4ue to time and accessibility constraints other comparable companies

have not been overvie"ed.

(. )ompany Background

Unilever?@s, $illiam (esketh !ever, founder of !ever Bros, "rote do"n his

ideas for 3unlight 3oap : his revolutionary ne" product that helped

popularise cleanliness and hygiene in Aictorian 6ngland. It "as


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ver the last C centuries, Unilever


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Unilever Bangladesh is a leading 0ast 1oving -onsumer Foods -ompany "ith

a heritage of over E> years. Unilever started its onshore operations in

Bangladesh in ?GE "hen its soap factory "as set up at -hittagong. UnileverBangladesh !imited "as incorporated on Huly , ?JC as !ever Brothers

Bangladesh !imited. 7rior to independence of Bangladesh, the company

operated under the name = !ever Brothers 7akistan !imited. 2fter liberation of

Bangladesh in ?J, all the property, assets, liabilities and businesses of

!ever Brothers 7akistan !imited "ere taken over by !ever Brothers

Bangladesh !imited.

2t present, Unilever Bangladesh !imited has its corporate oKce at L8 To"er,

7lot 8o. ;, Moad 8o. >, Fulshan , 4haka ;;, Bangladesh. Its factory and

registered oKce are located at 5alurghat (eavy Industrial 2rea,

-hittagong, Bangladesh. -urrently, UB! is one of the largest fast moving

consumer goods company N01-F# in Bangladesh. It is a leading company in

home, personal care and food products, continuously introducing ne" and

"orld=class products for the Bangladeshi consumers. The company is

engaged in manufacturing Nincluding local third party manufacturing# O

marketing of soaps, glycerin, detergent po"ders, and personal products and

blending and packing of tea for local sales. The company also e*ports bulk

tea, glycerin and other products as and "hen any opportunity arisesUnilever

Bangladesh is market leader in J of the > categories it operates in, "ith G

brands spanning across (ome and 7ersonal -are and 0oods.

Brands of Unilever Bangladesh Limited:


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Unilever is o+ering *norr &oup and Taa+a Tea to quench thirst of its

consumers. 5norr 3oup is a tasty and healthy snack option for J pm meal

moment. 5norr is Unilever9s biggest brand globally, and is no" available in

Bangladesh through 5norr 3oups. There are E variants under it : -hicken

-orn, -hicken Finger, Tomato and Thai soup.

Taa%a stands for premium quality, bringing in the "orld famous tea blending

e*pertise and heritage of the Brooke Bond (ouse. Taa%a stands for freshness

and comes in a special moisture=proof pack that preserves the aroma and

freshness of the tea leaves inside. Its unique blend has maintained its place

in the hearts of consumers "ith the freshest and most revitali%ing cup of tea

around.

Under (ome -are category, ,!eel- im- &urf E/cel and Rinare o+ered to

the market. $heel is an o+ering to millions of "omen across Bangladesh,

helping to transform a tedious chore like laundry into a delightful e*perience

that lifts her spirits for the rest of the day. It is one of the highest selling

brands in Bangladesh.

The brand is available in t"o formats

. !aundry 3oap

;. 4etergent 7o"der

Aim has brought a revolution in kitchen management in Bangladeshi

households. 3ince its launch in ?>J, Aim has been synonymous "ith

sparkling clean dishes.

im &courer 0 Introducing t!e #rand in Banglades!

G


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+ering a more hygienic and e+ective cleaning solution compared to

ash, Aim dish"ash po"der "as )rst introduced to Bangaldeshi households in

?>J. 2 tough, abrasive, multi=purpose po"der, Aim 3courer

leaves kitchen"are beautifully clean and also "orks on a number of other

surfaces.

im Bar T!e core of Banglades! dis!2as! market today

Aim Bar "as a revolutionary innovation for household products : bringing

together tradition and technology : to come up "ith a dish"ash solution in

soap form. Aim Bar is a po"erful grease cutter that removes tough burnt

marks easily. It is also suitable for all types of dishes and o+ers easy cleaning

"ith a pleasing lemon fragrance. The highly popular PAim Bar -hallenge9

campaign generated plenty of hype in households all over the country.

im "i3uid &tepping0up consumers to t!e ne/t level

Aim liquid is another format of Aim that takes utensil cleaning convenience to

the ne*t level. It is specially formulated for taking care of high

quality dinner"are. $ith Aim !iquid, only one "ipe is enough to provide

scratch=free, sparkling clean dishes, as sho"cased in the recent Pne $ipe9

campaign depicting dishes themselves relishing in the sparkling cleanliness

that Aim !iquid provides them "ith.

&urf E/cel

3urf 6*cel believes that dirt is good it is an essential part of a child9s

development. It9s ho" children learn, e*press their creativity, and even

bolster their immune system.

-hildren are so involved in "hat they do that "ithout noticing they can get

dirty in a matter of minutes. (o"ever, 3urf e*cel reali%es that this should not

stop them from trying to e*plore the "orld around them.

J


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The all ne" 3urf 6*cel has the po"er of lemon, liquid blue and soap bar that

helps in removing multiple stains "ith ust product. 3urf e*cel is the highest

selling premium "ashing po"der in Bangladesh. ver the last t"enty years it

has anticipated the changing "ashing needs of the Bangladeshi homemaker

and constantly upgraded itself.

Rin 4o2er ,!ite: Min 7o"er $hite plays an integral part in helping us to

look good by providing superior "hiteness, giving us the con)dence to reali%e

our ambitions.

3triking "hite clean clothes help us make great impressions on the people "e

meet and also provide us the con)dence to reali%e our ambitions. Min 7o"er

$hite understands this need and strives to deliver best "hiteness.

ver the years, Min 7o"er $hite has undergone several innovations to meet

the changing consumer needs. The ne" and improved Min 7o"er $hite has

the P"orld9s best yello"ness removal technology9, that removes the faded

yello"ed look. Min 7o"er $hite provides a premium laundry e*perience at an

a+ordable price.

Under 7ersonal -are, Unilever is catering the market "ith brands like 5/e-

)lear- )lose p- Dove- 6air 7 "ovely- "ife#uoy- "u/- 4epsodent-

4onds- Re/ona- &unsilk and aseline.

&unsilk understands and has designed its "ash and care collections to

address the most common hair dramas in >@ countries around the globe.

>


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3unsilk "as launched in ?GE and is no" a global brand "ith presence across

>@ countries. 3unsilk9s hair care range provides a complete hair care solution

and functions as a C=step combination of cleansing, nourishing andmanageability that gives a ;@=something girl the con)dence to e*press

herself.

ariant of &unsilk &!ampoos

&unsilk &tunning Black &!ine &!ampoo: 6nriched "ith 2mla 7earl

-omple* "hich gives long lasting shine.

&unsilk 8airfall &olution &!ampoo:-ontains 3oya Aitamin -omple* "hich

strengthens every inch of hair for strong hair "ith less hairfall.

&unsilk T!ick 7 "ong &!ampoo:-ontains 5eratin Qoghurt 8utria -omple*

that thoroughly nourishes hair from root to tip to give thick and long hair

ariant of &unsilk )onditioners

&unsilk 8airfall &olution )onditioner:-ontains 3oya Aitamin -omple* for

visibly less hairfall.

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In >G?, Mobert -hesebrough, a dispensing chemist, discovered something

ama%ing. (e discovered a @@R natural product, rich in minerals from deep

"ithin the earth yet totally pure, "hich had remarkable healing properties

"hen applied to cuts, burns and abrasions of the skin. That product "as

aseline.

Hust as Mobert -hesebrough in the >@@9s, Unilever continues to be motivated

by a passion and curiosity about skin. It is an incredibly comple* and

miraculous creation of nature : a set of interdependent systems and

elements that even today its not fully understand. It protects us from adverse

climate and from infection. It recreates and regenerates itself through our

lives. It stretches, yet retains its form. It is "aterproof, yet it can emit "ater.

Re/ona"as originally created in 2ustralia in ?@@ by a pharmacist and his

"ife. 3ince then it has led the )eld by providing consumers "ith cutting=edge

technology that is proven to deliver outstanding results.

Me*ona o+ers a "ide range of highly e+ective antiperspirant deodorants to

meet the everyday needs of men and "omen = every"here. Me*ona "ith its

unique active ingredients provides ;E=hours protection against body odor and

underarm "etness to help keep one physically fresh and mentally con)dent,

even in the toughest moments. Me*ona roll=on is available in t"o si%es= E@ml

and ;ml

4ond9s delivers products that make a real di+erence to "omen


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complete beauty solution platform and portfolio that can make "omenEG, 7ond9s has been kno"n for simple, e+ective skin care products

that "ork. That


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Pond's Nourishing Facial cru!: 7ond


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Pond's Moisturising Body Lotion: 7ond


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2ge 1iracle -oncentrated Mesurfacing 3erum and 7ond9s 2ge 1iracle 4aily

Megenerating 0acial 0oam.

Ponds Gold Radiance: 7ond9s Fold Madiance combines the po"er of the best

anti=aging ingredients "ith real gold micro particles to revitali%e and energi%e

skin. It is clinically proven to )ght deterioration in the four dimensions/

te*ture, color, evenness of tone and hydrations.

Fold has been used for skin care for ages. 8o" 7ond9s found a "ay to

combine this "ith the best anti aging ingredients to instantly bring youthful

Madiance back into the skin. 7ond9s Fold Madiance is available in E formats =

Madiance Mevealed 0acial 0oam, 7recious Qouth 3erum, Qouthful 4ay-ream,

and Qouth Meviving 6ye -ream.

4epsodentis committed to bringing the best oral care to families. $ith this

mission, 7epsodent o+ers a "ide range of products for Bangladeshi

consumers, "hich are best suited to their needs

Unique Formulation

7epsodent9s unique Fermicheck formula is forti)ed "ith ingredients that

remove up to ?R germs in ; minutes. 2s a result it prevents common oral

problems such as tooth decay, toothache, gum diseases, plaque and providesstrong and "hite teeth "ith a fresh breath.

Toot!paste

E


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7epsodent9s unique Fermicheck formula is forti)ed "ith ingredients

that remove up to ?R germs in ; minutes. The magnets in the

toothpaste sticks to germs as one brushes and destroys them.

7epsodent $hitening "hitens teeth in ; "eeks. It contains 7erlite, an

e+ective polishing agent "hile helps removes stains. Its formula is

clinically proven to bring back and maintain the natural "hiteness of

teeth.

7epsodent (erbal contains the po"er of natural elements = Basil !eaf,

1int !eaf, -ardamom, 8atural -alcium and 3alt. Its Douride and

calcium makes stronger teeth and prevents tooth decay. Thus, it allo"s

people to eat their favorite food.

Toot!po2der

7epsodent toothpo"der9s Fermicheck 7lus formula )ghts against

germs. Its calcium helps to prevent tooth decay.

Toot!#rus!

The three angled design of 7epsodent 0ighter allo"s the brush to reach

comfortably all the "ay to the last tooth. Brush head shape is inspired

by inde* )nger for better reach. Its inter=dental bristles pro)le cleans

in=bet"een teeth e+ectively and is soft so that they don


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looking great is an integral part of being a "oman. !u* is here to remind,

encourage, inspire "omen and have fun "ith them = because deep do"n,

every "oman "ants to feel like a fortune. n this note, !u* is celebrating

the feminity and playfulness to remind "omen to enoy absolutely

everything about becoming and being beautiful.

!u*, "ith its abundance of e*otic beautyfying ingredients has lead to

beautiful skin = thereby making "omen "ho use it more gorgeous

naturally. In recent times, !u* has embraced beauty and feminity of the

;st century "omen. It aims to be the paradigm of the ne" feminity.

That


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53ua &parkle: !u* 2qua 3parkle, "ith refreshing mineral salts and

sea"eed e*tracts, is the best kept secret to help rene" skin from bored to

full of life.

"ife#uoy9s goal is to provide a+ordable and accessible hygiene andhealth solutions that enable people to lead a life "ithout fear of hygiene

an*ieties and health consequences.

!ifebuoy is the largest health soap brand in Bangladesh. Its vision is to

meet the health and hygiene needs of @ million Bangladeshis. !ifebuoy

is a household name and this health soap is remembered in every sector

of the nation. !ifebuoy is kno"n traditionally for its red bulky bar and

distinct smell but has over the years slo"ly changed to meet the changes

in consumer needs and no" !ifebuoy comes in four germ=)ghting forms.

The latest re=launch of the soap in ;@@? has proven ho" !ifebuoy is in

accord "ith the changing lifestyles and requirements. The ne" mi*

includes a ne" formulation, making it more relevant to both ne" ande*isting consumers.

The ne" !ifebuoy variants are shaped even more eKciently to keep the

soap more dry "hile giving more lather faster and "ith using less "ater,

making them longer=lasting and budget eKcient. The modern packaging

also gives !ifebuoy a better feel, fragrance and e+ectiveness.

The bar soaps are available in t"o variants/

J


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"ife#uoy Total: This variant o+ers all the goodness of the original red

!ifebuoy "ith an improved ne" fragrance and unique shape. Its unique

germ protection gives all day protection from germ for the entire family.

"ife#uoy )are: This variant is a special formula "hich is gentle and

caring and takes care of delicate skin. It protects from germs all day long.

2nd yet it is mild and gentle and on skin.

!ifebuoy (and"ash

!ifebuoy also o+ers speci)c health bene)ts through its speciali%ed product

formats like !ifebuoy (and"ash. This is a highly speciali%ed hand "ash

product from !ifebuoy available in liquid form. !ifebuoy (and"ash has

been quickly accepted as the fastest and e+ective protection from germs

"ithin @ seconds. 7roven to e+ectively clean and provide care for hands

and "ashing a"ay germs by ??.?R, !ifebuoy (and"ash promises a

healthy lifestyle. It is proven to protect hands from harmful germs that can

cause diarrhea, stomach infections etc. The hand"ash is currentlyavailable in t"o variants Total and -are.

!ifebuoy is continuously improving its ability to )ght germs so that it

keeps its promise to ensure a healthy family.

6air 7 "ovelyunderstands that di+erent people have di+erent fairness

needs based on age or skin type and therefore o+ers e*pert fairness

solutions relevant to di+erent consumer needs

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The $orld9s 8o. fairness cream, 0air O lovely, "as developed in ?J

and is the )rst fairness cream in the "orld. 6ven though, it9s skin

lightening technology is kno"n to be the best in the "orld, this hasn9t

stopped the brand from innovating further to pioneer the development of

cutting=edge fairness solutions.

0air O !ovely understands that di+erent people have di+erent fairness

needs based on age or skin type and therefore o+ers e*pert fairness

solutions relevant to di+erent consumer needs.

0air O !ovely 1ultivitamin -ream

0air O !ovely 1ultivitamin "ith a breakthrough Tri=0air Aitamin -omple*

"orks on key barriers to clear fairness. 0air O !ovely 1ultivitamin o+ers

superior fairness bene)t of Pclear fairness9 that rivals the best professional

beauty treatment, but "ithout bleach or harmful chemicals that can

damage the skin.

0air O !ovely 2yurvedic -are -ream

0air O !ovely 2yurvedic -are -ream o+ers natural fairness solutions for

people "ith sensitive skin. It is enriched "ith the magical 2yurvedic blend

of 5umkumadi il= a mi*ture of G 2yurvedic ingredients, "hich provides

clear fairness even for sensitive skin.

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0air O !ovely $inter 0airness -ream

In "inters, consumers e*press a fairness disappointment because of the

addition of moisturi%ers Ncold creams# to their portfolio. $hile cold cream

helps them combat "inter dryness, it also leaves them looking dark. 0air O!ovely $inter fairness, "ith 1ultivitamins and 2ctive 1oisturi%ers, o+ers

fairness "ith bene)ts of cold cream.

0air O !ovely 2nti=marks -ream

0air O !ovely 2nti=marks o+ers fairness solutions for skin "ith pimple spots

and is targeted to"ards young, teenage girls "ith a dominant fairness

problem of pimple marks.

0air O !ovely 12W 0airness -ream

0air O !ovely 12W 0airness for 1en is ;W better than any other ordinary

fairness cream for men. Its revolutionary Aitama* -omple* and UA )lters

"ork intensely on tough male skin and helps give/ Aisible fairness, Aisible

spot reduction and Triple sunscreen UA protection.

0air O !ovely Body 0airness 1ilk

0air O !ovely Body 0airness milk, "ith its double sunscreen and Tri=0air

Aitamin -omple* gives protection from the sun and matches the fairness

on body "ith the fairness of face. Its gentle formulation gives fairness all

year round.

;@


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0air O !ovely 1ultivitamin 0ace"ash

In 1arch ;@;, 0air O !ovely introduced 0air O !ovely 1ultivitamin

0ace"ash "hich has Tri=0air Aitamin -omple* and 2ntio*idants that "orks

gently on the skin to provide clear fair skin. 1ultivitamin face"ash, "henused "ith 1ultivitamin cream gives double action fairness.

0air O !ovely 12W 0airness 0ace"ash

0air O !ovely is also launching 12W 0airness 0ace"ash for 1en "hich

contains Aita12W -omple* that deep cleanses impurities from tough male

skin to help provide long lasting fairness.

Dove today is in >@ countries making "omen beautiful everyday and

enabling them to enoy their o"n brand of beauty by providing a "ide

range of personal care, hair care, and skin care products. 4ove is kno"n

to be a keeper of promises and has given real products to "omen all over

the "orld.

4ove 3kincare

In the skincare segment, 4ove o+ers facial foams "ith moisturi%ing and

e*foliating bene)ts as "ell as moisturi%ing lotions.

Dove 6acial 6oams

4eveloped "ith a moisture system that both deposits and locks moisture

into "et skin, 4ove 0acial 0oams cleanses and e*foliates the skin, leaving

it visibly more radiant. The t"o variants Beauty 1oisture and Fentle

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6*foliating 0acial 0oams are designed to give great cleansing "hile

delivering on softness.

Dove "otion

4ove lotions are available for pampering skin "ith unique rich

moisturi%ers. It is available in the follo"ing variants/

4ove 6ssential 8ourishment "hich gives 3oftness for longer

4ove Fo 0resh 8ourishment for a -ooling sensation

Dove Beauty Bar

Irrespective of seasons, our skin needs moisturi%ing. $ith 'Eth

moisturi%ing cream, 4ove Bars, 4ove 0acial 0oams and 4ove Body $ashes

provides a complete moisture care. $ith 'Eth moisturi%ing cream blended

"ith cleansers, 4ove Bar cleanses skin "ithout drying it, "hich no soap

can promise.

4ove beauty bars are available in three variants/

Dove ,!ite Beauty Bar: It -ontains 'Ethmoisturi%ing cream and mild

cleansers that leave skin clean, soft and smooth.

;;


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Dove 4ink Beauty Bar/ -ontains'Ethmoisturi%ing cream richly blended

"ith its mildest cleansers, no other beauty bar has more skin=natural

moisturi%ers than 4ove. 6veryday moisture is the key to beautiful skin.

Dove 6res! Moisture Beauty Bar: -ontains an ultra=light hydrating

formula and the crisp, soothing scent of cucumber and green tea. It

7rovides a refreshing, uplifting sensation for skin.

4ove (aircare

4ove kno"s that superior care that deeply nourishes and replenishes is

the only "ay to get truly beautiful hair. (air is depleted of essential

nutrients on a daily basis. This is e*acerbated by the environment, or

"hen hair is genetically dry, or is undergoing aging or being damaged by

styling. That is "hy 4ove has developed speci)cally tailored solutions to

deeply nourish dry hair and repair damaged hair, leaving it properly cared

for so that it feels as good as it looks.

Dove 8airfall Rescue &!ampoo and )onditioner/ -ontains 1icro

1oisture 3erum "hich strengthens hair to prevent it from falling.

Dove Intense Repair &!ampoo and )onditioner/ $ith 1icro 1oisture

3erum and 0iber 2ctives "hich reconstructs hair deep inside and preventssplit ends and breakage

Dove ouris!ing $il )are &!ampoo and )onditioner/ $ith

revolutionary 8utri ils, cleanses hair "ithout drying.

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)lose up= The closer the better our mouths are our gate"ay to life. -lose

up helps people to live life con)dently and brings the taste of success.

-lose up "as launched as a gel toothpaste containing micro="hiteners

and mouth"ash in ?>E, and )red the imagination of the population "ith

it


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they can make the ma*imum impact. That is "hy -lear is the scalp e*pert

that/ o+ers customi%ed solutions for holistic scalp health and helps

harness the po"er of the healthy scalp as the foundation for healthy,

impactful hair

-lear is Unilever9s leading anti dandru+ shampoo brand. 3ince its )rst

launch in ?J;, in 2sia, the -lear formulation has continuously evolved

"ith intensive research and clinical trials conducted by scientists at the

-lear 7aris Institute. $ith a constant focus on leading edge technology,

-lear is pegged as the "orld9s leading scalp care shampoo.

-linical research sho"s that dandru+ and other scalp problems like

dryness originate deep under the scalp. $ashing a"ay visible Dakes on

the surface does little to treat the root cause, "hich is a "eak and

damaged scalp barrier. Thus, dandru+ keeps coming back.

6*perts at -lear understand that scalp is skin. Therefore -!62M has

partnered "ith the "orld9s leading dermatologists from the International

2cademy of 4ermatology NI2-4# to bring the scalp nutrient technology :

ne" -!62M "ith 8utrium @ to its consumers.

To address the di+erent needs of male and female scalp, -lear has come

up "ith 8utrium @ technology for "omen and 7ro 8utrium @ for men.

-ombining the bene)ts of pro=vitamins, minerals and sunDo"er oils,

8utrium @ treats dandru+ at the root/ nourishes the scalp to eliminate

Dakes, soothes dryness and repairs the scalp barrier to strengthen its

natural resistance.

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8e" -!62M 2nti=4andru+ 3hampoo9s 8utrium @ has been identi)ed by

I2-4 as the scalp care technology that "ill lead the paradigm shift in scalp

care management. It took years in the making and is a part of -!62M9s

mission to deliver the most e+ective anti dandru+ shampoo for healthy

scalp and hair. This technology "ill contribute not only to better scalp

health, but also improve dandru+ su+erers9 quality of life.

-!62M variants are

$omen

&oft and &!iny 0Transforms hair from dry to lusciously soft and shiny

5nti08air 6all 0 3trengthens from the root to tip and increases hair9s

defense against hairfall and breakage

1en

)ool &port Ment!ol 0$ith active menthol, for all scalp and hair types

5nti 8airfall0$ith 7ro=3trength Finseng Technology for "eakened hair

)ber, strengthens hair O defends against hair fall

Unise*

)omplete 5ctive )are 0Xuenches thirsty scalp and hair "ith essential

nourishment

Ice cool Ment!ol 0 Mefreshes and revives scalp and hair "ith an

invigorating burst of menthol freshness

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5;E


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0inance -ontroller

Treasury 1anager

2ssistant Treasury 1anager 0inance 6*ecutive NTr

7ureit is a revolutionary "ater puri)er and the )rst of its kind. It directly

puri)es tap "ater and provides Sas safe as boiled "ater "ithout the

hassles of boilingS. It runs "ithout gas or electricity and hence helps save

valuable natural resources. 1ade "ith high quality plastic, 7ureit9s -lassic

model has a ma*imum capacity of > litres.

7ureit

0inance 4irector


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Chart 1: rganogram o! "reasury #u$ Function

0inance operation is led by 0inance 4irector. $ithin )nance function

there are numerous sub functions : 0inancial 2ccounting, Indirects

-ontrol, 3upply -hain 0inance, Business Unit 0inance N1anagement

2ccounting, Treasury, !egal, Information Technology, Information

1anagement, -ustomer 4evelopment 0inance N-4 0inance# etc.Treasury is under -ontrollers 4epartment and Treasury 1anager

Meports to 0inance -ontroller. 2ssistant 1anager and 0inance

6*ecutive, Treasury.

2lthough this is the local )nance structure, there is continuous

collaboration and operation "ith regional treasury teams.

=. 1 >lo#al Treasury &tructure of nilever

The structural hierarchy of Treasury perations includes Flobal

Megional Treasury team, Megional Treasury team and then local

treasury team. The follo"ing chart provides an overvie" of function of

the global treasury operations/

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-apitalstructureUnileverMisk1anagementUnileverFlobal

BankingMelationsMating2gencies

TransactionalBanking

!iquidity1anagementMisk 1anagement

p-o9s -apital3tructure!ocal 0unding4ecisions

p-o9sBusiness 7artner

Global TreasuryOperations

Corpor

ateFinance

Internati

onalFundingGroup

Flobal Treasury

Chart %: Glo$al "reasury #tructure

Flobal Treasury includes sub functions like -orporate 0inance,

International 0unding Froup and Flobal Treasury peration. -orporate

0inance activities include capital structure and funding decisions.

International 0unding Froup9s activity includes deciding "hat "ould be

minimum risk e*posure of each p-o at any moment "ith a particular

bank, "hat kind of banking relationships do be maintained, analyse

reports from rating agencies of the banks and assess ho" much risk

Unilever "ould choose to have "ith each of them. Flobal treasury

operations do transaction on behalf of local companies. This includes,

0oreign e*change dealing, interest rate risk management, liquidity

management etc. 0or Unilever Bangladesh !imited, FT team is more

involved "ith 0W risk management and counterparty monitoring so that

there is not breach of limit set by I0F team for e*posure at any point in

time "ith each of the bank.

Unilever Bangladesh !imited has to adhere to the policies, any

deviation needs to be communicated to Flobal team and take

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clearance on it. Thus there is continuous collaboration "ith the regional

and global team.

T!e ma%or !ig!lig!t of glo#al mandate includes:

. 7rimary Banking 3tructure/ 2ccording to Unilever Treasury3tandard there are recommended banks "hich "ill be used by

!ocal operations. These banks are termed as Folden -ircle

banks. 2mongst the Folden -ircle Banks, ; tiers are referred/ F

and F;.

7rimarily it is recommended that F banks should be used since

there is global strategic relationship bet"een Unilever and these

banks. ther"ise F; banks should be used. It is recommended

that other bank should not be used. Thus payment, collection

and investment all should be done though the recommended

banks

;. -ounterparty !imit/ The I0F sub function of Flobal Treasury

decides for every legal entity of Unilever "hat "ould be the

ma*imum e*posure at any point in time "ith a particular bank.

This includes, a'c balance, any investment amount "ith accrued

interest as "ell as possible gain from all.

C. 8o Mecourse' Fuarantee to any banks'0Is

=.( Treasury $perations:

In Unilever, Treasury is treated more as a service centre of the

company rather than the pro)t centre of the company. 2lthough idle

cash is invested in interest bearing accounts or in form of )*ed

deposits, but the idea is not make gain from such instruments. UB! for

its foreign e*change risk does hedging, but this is only to the e*tent oflocking the price and kno"ing the cost. It does not do any kind of

currency trading or does not hedge "ith a vie" of making gain.

UB!9s treasury activities facilitates sales team, by negotiating "ith

Bank for easier and faster collection process and providing additional

products to distributors "hich "ill in turn facilitate the sales process. It

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help supply chain = buying team through on time purchasing of foreign

currency for imported goods, negotiating "ith banks for minimum cost

and lo" turn around time helps payment team by arranging fund for

all payment process O introducing products that "ould lessen the

entire payment process. ther than that it is helping the entire

organi%ation through risk controlling and liquidity management. 0urther

details of UB!9s treasury activities are discussed belo"/

. Misk 1anagement/Under risk management, interest rate risk management, foreign

e*change risk management and commodity price risk management.

Interest rate risk management is not relevant for Unilever Bd,

commodity risk management is e*ecuted by global purchasing teams,

and only foreign e*change risk management is e*ecuted in UB!.

Unilever Bd !td huge portfolio items that are imported/ Ma" 1aterial,

3emi 0inished Foods, 1achineries and 3pare parts, 7acking 1aterial

etc. Thus at any point in time UB! have commitment outstanding

"hich "ould include foreign payment. The impact on 7n! "ould be

large for any radical movement in foreign e*change. In order to

mitigate )nancial loss and kno" e*act payable, diligently (edging is

done in terms of 0or"ard -over purchase. The idea is to minimi%e risk

and not think of gain from hedging.

6very "eek, local treasury team calculated their e*posure and ho"

much hedging needs to be done against "hich import. 0rom purchase

team, date of maturity is received and

;. !iquidity 1anagement/ Unilever Bd !td operates on a negative

"orking capital model, thus generally cash is at a surplus level.

!iquidity management initial process includes yearly cash forecast "ith

monthly phasing. n top of it every day possible payable from each of

the bank a'c is tracked. !iquidity management includes proactively

monitoring cash level, "hether it is suKcient to meet immediate

payables, design "ays in case there is a possible de)cit at any

moment as "ell as invest for e*cess amount. U! B4 invests in 0i*ed

4eposits as per global mandates.

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C. Transactional Banking/ Transactional banking includes everyday

transaction "ith bank, transferring funds from each bank to another

depending on funding requirement, defunding to ma*imi%e investment

or increasing balance in remunerating a'c etc. This also includes

foreign transaction settlement. 2ll tangible good procurement is done

through !etter of -redit. $hen documents are coming to banks for

payment and once it is cleared o+ by the supply chain team : treasury

team upload documents request in a "eb portal called 6 5it. This is

basically a portal through "hich communication is made to $orld

Treasury perations team for settling "ith banks. 3ince they do trading

on behalf of all local operations, they actually get bene)ts of

economies of scale, greater leverage of kno" ho" etc.

=.= Banking Infrastructure:

The global mandates require t"o e*ecute operation using one or t"o

banks "hich are under either F'F; categories. These banks are to be

used for local payment, collection, foreign payment, out"ard

remittance, purchase short terms investment products.

-urrently Unilever Bangladesh !imited has banking e*posure in (3B-,3-B, -iti, -B-, BM2- Bank, O 3onali Bank holding ? a'c. The

operations are not restricted to F'F;, due to business requirement

and limitation of recommended banks on type of products and net"ork

base. 3uch deviations have also been approved. The risk pro)le is

maintained by udging the capital base of each of the banks and daily

e*posure or counterparty limit is approved accordingly.

#ollection tructure:

UB! sells through multiple sales channels : general trade, modern

trade, rural, alternate route to market Npollydut and apraita#. UB!

caters to appr* E. lac outlets through ;G distributors. These

distributors are the direct customers of UB!. f the ;G distributors, ;

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distributors are dedicated distributors for $ater Business Nfor 7ureit#

and distributor is dedicated for catering to 1odern Trade

Unilever Bangladesh !imited has unique sales collection structure,

"hereby there is high level of integration "ith collection bank NBM2-

bank#, minimi%ing manual intervention, and makes the reconciliation

process eKcient.

-urrently there are C a'c s "ith BM2- bank. The distributors are

categori%ed in ; categories for collection process : -ontinuous

Meplenishment 3ystem 4istributor N-M3 distributors# and 8on

-ontinuous Meplenishment 4istributors N8on -M3 4istributors#. -M3

4istributors avail credit facility from BM2- bank at about ; to CR lo"er

than market interest rate. This credit facility is in the form of 4facility, and the si%e of the 4 facility is bet"een to ; days sales

volume. 8on -M3 4istributors are not obtaining credit facility from

BM2-.

Both -M3 and 8on -M3 customers use soft"are 413 plus, "hich is

used largely for inventory management, order adustment and placing

order to Unilever Bangladesh !imited. This soft"are is integrated "ith

UB!9s 6M7 and against any order placement data directly Do"s in UB!9s

6M7 and is recorded against each unique customer code. UB!9s 6M7 is

also integrated "ith collecting Bank9s soft"are. The sum total of order

placement of each customer Do"s to Bank.

0or -M3 -ustomer, Bank9s system checks credit limit and cash

availability. In the event the amount suKces, the corresponding

account is debited and UB!9s account is credited. 3ubsequently a

positive feed is transmitted to Unilever. The corresponding customer

balance accordingly is raised and against that stock is dispatched. In

case the amounts do not suKce, a negative feed is transmitted and no

stock is dispatched.

The entire collection process is cash basis and )nancing solution plays

a maor role. 4istributors 0inancing 2rrangement "ith BM2- is on an

understanding basis and has no recourse to UB!. The )nancing facility

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7roportionate 2mnt

delivered4ispatch

3ales rder -ross-hecking "ith

4istributor4eposit

3ales rderFenerated in4istributors

soft"are3ales rder -ross-hecking "ith

4istributorBalance N4!imit -ash

Balance#

4o theamoun

tsmatch

4o theamou

nts

matchQes NBankdebits4istributor,credits UB!#

8odeliver

y

-ollectionBank

e*tended to distributors under this program is used for Unilever

purchase only. This program can be availed by any distributor

0or 8on -M3 -ustomer, in a similar "ay stock order cumulative amount

is transmitted to BM2-. 8on -M3 customers deposit 4emand 4raft or

7ay rder in nearest collection Bank Branch'316 unit. This 44'7

amount is uploaded against the respective customer code by BM2- and

data Do"s back to UB!9s 6M7. 2s per the deposited amount, customer

balance is adusted and stock dispatched. The data Do" is real time

and -ollection bank refreshes in every C@ minutes.

Chart &: 'ata Flo( in Collection Ban)ing #tructure

6very day9s collection from both the customer base are collected in ;

a'c9s and are at day end these ; a'cs are defunded and the collected

amounts are transferred to the third a'c in BM2-, "hich is an interest

bearing a'c . This remains there for ; days and then through a standing

instruction this is transferred to payment a'c in other banks.

C

-M3

collection

a'c


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Chart *: Collection Ban) A+C ,n!rastructure

BM2- has a huge net"ork base as "ell Unilever has been able to

capitali%e on IT integration and distributor )nancing product.

The timing of funds reali%ation by UB! di+ers across di+erent depots.

2t present, ?R of UB!9s funds get cleared on day , ;;R in day ;'C and

the remaining G?R take more than C days. 3ometimes this G?R of

funds take C to @ days to be cleared by the banks because of location

distance.

Though the fund reali%ation is taking time, but the bank transaction

process is very immediate. The funds are credited instantly or at day @

by the banks and the goods are dispatched from the depots "ithin to

C hours after receiving the orders. (ere, the time varies because of

di+erent collection modality.

Beside this basic transaction facility, the banks provide additional

services to UB!. 0or e*ample, BB! accepts small notes from UB!

distributors.

In case of erroneous information provided by distributors, banks

urgently notify the both parties and request the distributor to correct

the information as soon as possible.

If any 44'7 is lost, then a Feneral 4iary NF4# has to be )led by the

liable party Neither bank or distributor#. 2fter this, a stop payment

order and a ne" 44'7 are issued by distributor.

3crap sale collection is maintained in 3-B. There aren9t much value

addition done on this, and the reconciliation process is manually. 3ince

CG

2t day end

collection

transferred

to interest

bearing a'c

-ollection

amnt

transferredto paying

bank on Crd

day

2ssigned

payment a'c

in other ban

Interest

bearing

a'c

8on -M3

collection

a'c


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such collection occurs at in frequent basis, this part is not kept under

general collection modality.

Payment tructure:

7ayments are routed from banks and there are di+erent types ofpayment generated from di+erent units thus separation is maintained.

If payment nature is considered, there are import payments through

!-'!-2, foreign out"ard remittance through s"ift Nfor intangible item#,

local payments to vendors, duty payment in government a'c.

Import payment is processed through normal banking process. Items

are imported through opening !- or !-2, and on arrival documents,

document currency is purchased from bank and the documents are

settled accordingly. Banks debit a'c account accordingly. UB! enoys

minimum charge dedicated courier service etc. C banks are kept as a

part of back up as "ell segregation of item.

0oreign out"ard remittance are items payment to a foreign entity

occurring made through foreign currency for an intangible item like

agency fee, consultancy fee etc. 0or some of these payments pre

approval of Bangladesh Bank is required and kno"ledge basis is given

importance in selecting from "hich bank to route these payments.

!ocal payments are made to di+erent kind of vendors, "hich are

generated from both 4haka as "ell as -tg location depending from

"here the procurement "as made. 1aority of payment Do"s from

(3B- a'cs. 7ayment requests are generated in UB!9s e*isting 6M7.

nce these are internally approved, payment )les are transferred the

bank9s system. 4epending on the a'c either instrument are printed in

(3B- premises in 4haka or -hittagong. The instrument bears

approvers signature. These are then delivered to Unilever oKce Neither

4hk or -tg#. 7ayment to vendors is accordingly done. This has lessened

the manual ob as "ell as there is no cost on printing and delivery of

this. ther than this modality there are very fe" local payments made

through manual process.

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%nvestmentsare basically in the form of )*ed deposit. Usually these

are kept for tenure ranging from month to C months. These are only

done in approved banks.

?. 4eer )ompanies< 4ractice

To understand and benchmark Unilever Bangladesh9s treasury operations,

1arico Bangladesh !td9s O Berger 7aints Bd !td9s treasury operations have

been overvie"ed.

?.1 $vervie2 of Marico Banglades! "imited

1arico Bangladesh !imited N1B!# holds a leadership position in the 01-F

space.

1B!9s 7roducts in 7ure -oconut oil, 6dible il, (air care and 3kin -are reach

out to more than @@,@@@ outlets in Bangladesh. 1B! touches the lives of

out of every C Bangladeshi through its portfolio of brands such as 7arachute,

3a+ola, (air -ode, 2romatic, -amelia and Beliphool to name a fe", most of

"hich enoy leadership positions N8o. in coconut oil segment#, "ith

signi)cant market shares in respective categories.

Brands of Marico Bangladesh Limited

7arachute is one of the largest brands in Bangladesh and is the undisputed

leader in the branded coconut oil segment, commanding a market share of

almost JCR. It is one of the most trusted brands in the country. Mecently

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a"arded the Gth Best Brand in Bangladesh by Brand 0orum, 7arachute "as

also ranked the Crd Best Brand amongst 01-F brands. 7arachute has come a

long "ay since its launch in Bangladesh in the late


40/57

7arachute Therapie "as launched in 2ugust ;@@>. It has already established

itself as the only

e*pert hair fall solution. 7arachute Therapie addresses M40 Nroot destroying

factors#, a combination of stress, pollution, quality of "ater, imperfect hair

care, imbalanced diet and ageing = the main cause of hair fall. 7arachute

Therapie has natural Moot 2ctivising 2lpha 7roteins, a unique blend of

proteins, vitamins, herbs and minerals that reduces the e+ect of M40,

bringing a reduction in hair fall in ust E days.

&a@ola

1arico Bangladesh !imited launched 3a+olaY Fold, the st ever blended

edible vegetable oil in Bangladesh on ;Crd 2pril9@. 3a+ola Fold has the

unique composition of >@R Mice bran il and ;@R 3aZo"er'5ardi il.

Mice Bran il NMB#/ (eart healthy nutrients in MB such as tocopherols,

tocotrienols and ory%anol are kno"n for their cholesterol lo"ering ability.

Besides, MB also has a high percentage of monounsaturated fatty acids,

"hich have been proven to not only reduce the Pbad9 !4! cholesterol levels

but also increase the levels of Pgood9 (4! cholesterol in blood.

3aZo"er 3eed N5ardi# il/ !inoleic acid, an omega=G=polyunsaturated fatty

acid, is present in a high percentage in saZo"er oil and is very potent in

reducing cholesterol levels.

8air )ode 8er#al 8air Dye

(air -ode (erbal (air 4ye "as launched in Bangladesh in ;@@>. It is available

in Gg sachet packs. 7eople use di+erent hair dyes to cover premature greying

as nobody likes to have an elderly look and hence, a lo" self esteem. These

dyes have chemicals only "hich may lead to hair damage. (air -ode (erbal

(air 4ye has the goodness of (enna, 2mla O (ibiscus. $ith regular usage,

(air -ode gives you shiny black hair evenly for longer period, making your

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hair soft, smooth and "ell nourished, giving you the con)dent, smart look

that others admire.

5romatic

1arico acquired Brand 2romatic from 2romatic -osmetics !td. in ct ;@@

and re=launched the brand as 2romatic Fold in ct ;@@G. 2romatic brings you

gently fragrant beauty solutions, from the treasure trove of 1other 8ature. 2

beauty soap "ith the goodness of age=old natural ingredients that protect the

skin and nourish it at the same time. The brand stands for modern beauty

and traditional values.

e2 International )amelia

-amelia is enriched "ith a unique, long=lasting fresh Doral fragrance to keep

one feeling active and refreshed throughout the day. It has Aitamin 6 added

to it to nourish the skin. It is suitable for all skin types. -amelia Beliphool is

available in all leading outlets in packs of Jg. The s"eet and soothing

fragrance of Beliphool helps to calm the mind and makes one feel cheerful,

refreshed and con)dent, all day long. Its Aitamin 6 property conditions,

nourishes and protects the skin, leaving it glo"ing and beautiful.

*-1-1 "reasury .erations o! Marico Bangladesh /imited

)ollection 4rocess

1arico Bangladesh !imited N1B!# has sales depots in Bangladesh. They are

in 4haka, -omilla, -hittagong, Hessore O Bogra. 1arico9s G@R of sales andcollections are done in 4haka region. To ensure this, the company has a sales

force, consisting of J@@ distributor9s sales representative.

Performing Ban&s ()ercising %nstruments

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E di+erent banks are involved in managing the collection process of 1B!.

They are 3-B, -iti Bank 8. 2., (3B- and BM2- Bank !imited. The company

does not make any sales on credit. They only receive 44s, 7s and

sometimes cash. 1ost of the transactions are through -iti Bank. (3B- deals

"ith 4haka region and receives only 44s, "hereas, BM2- bank accepts cash

only from -hittagong region.

The distributors can deposit 44s, 7s to the mentioned banks "ith necessary

information regarding sales order. The instruments are also can be deposited

to the nearest depots. In that case, bank representatives collect them from

those depots and deposit them to the respective banks.

*iming

The average collection time of 1arico Bangladesh !imited di+ers "idely for

depots because of geographical distances.

"a$le 1: /ocation (ise Clearance "ime !or MB/

!ocation 2verage -ollection Time4haka day-hittagong E= daysBogra C=E days

Hessore C days-omilla C days

3o, the timing of crediting the funds di+ers across regions. The goods are

dispatched only "hen the instrument is physically reali%ed. 2nd because of

this there is a time lag bet"een funds received and goods delivered by the

company.

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M% +iftness

1arico receives 1I3 only from BM2- Bank !imited once in a day. But for

-hittagong transaction, it sends 1I3 in every ; hours. 2lthough, -iti Bank still

does not provide direct 1I3, but they are in the negotiation process "here -iti

"ill send 1I3 to 1arico t"ice a day. (o"ever company regularly gets to kno"

"henever the -iti Bank representatives collect 44s from company depots.

,ther ervices

1arico faces diKculties in BM2- bank in terms of small notes, as the bank

only accepts notes above @@tk, in some region due to their limited vault

capacity.

In case of erroneous information provided by the distributors, banks block

that respective party account and issue'raise 4ebit 8ote'7 "hich refers that

the distributor o"es money to the company. 2nd until that party pays the due

amount, he cannot give any further order in the future.

$henever any 44'7 gets lost, the bank )les a Feneral 4iary against that

instrument. But it may take a month to recover the money. (ere, 1arico

suggests that it "ill be eKcient if the F4 is )led by the courier service. The

bank can keep the main copy and send another copy to the company. Then

the company "ill for"ard it to the distributor and tell them to issue a stop

payment order. 2fter this, the distributor has to issue ne" 44. In this "ay,

collection "ill be recovered "ithin a "eek. But here, the company has to bear

the cost of 44.

In case of IT failure or do"n serer, the banks provide the physical list or

scanned copy of transactions to the company. (ere, the problem is that the

company has to make physical entry of those transactions "hich is time

consuming.

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The banks also provide immediate service in case of long'slo" moving queue.

If it is possible to inform the Melationship 1anager NM1# of the bank earlier

then special arrangements can be ready for that speci)c day to operate the

transaction quickly.

Distri!utors Product

1arico9s distributors are enoying check "arehousing facility from 3-B. If a

distributor kno"s its total monthly requirements then he can place early

orders to the bank. Then the bank "ill place the orders on the speci)c issuing

dates to the company.

ecurity

The banks are al"ays alert about security issues. $henever they detect any

fake currency, fake 44'7 or face any reection of 44'7, they notify the

company as "ell as the distributor about the occurrences. Beside this, banks

block the distributor account so that transactions cannot be made against

that instrument. But no parties repeat this incident again. 2nd basically no

aKrmative actions are taken by the company.

,ther Pro!lems

1arico sometimes faces reconciliation problems from the performing banks.

0or e*ample, in case of any collection entry for 4haka region, they credit

company9s current account instead of 4haka account. ther than these,

1arico Bangladesh !imited does not face any maor diKculties.

4ayment 4rocess

The payment process of 1arico Bangladesh !imited is quite simple.

Performing !an&s e)ercising instruments

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1arico9s payment process is done through ; di+erent banks -iti Bank 8. 2.

and (3B-. The maority of transactions are processed through -iti Bank. 2nd

the payments are made by cheques.

1arico Bangladesh !imited has ; payment days in a "eek 1onday and

$ednesday. 3o, 1arico makes >=? payment cases monthly.

*iming

1arico can provide payment instruction anytime during the banking hour :

this is for both !- settlement payment as "ell as local payment. There are

cheque "rite soft"are installed of -Iti, (3B- and 3-B. Thus cheques are

printed, "hich is minimi%ing the manual error. But again these cheques need

to be signed manually once the printing is done. The cheques are delivered

through physical collection from vendor as "ell as through courier. Aendors

later submit these cheques for encashment. It is often found that the Bank

system is updated at a later hour. (ence "hen a'c balance is checked, often

the volume of cheque encashed is missed and may result into negative

balance.

M% +iftness

The tracking system for 1arico9s payment process is not satisfactory. They

actually do not get any 1I3 or noti)cation information regarding any payment

instruction. They only get 1I3 in case any kind of reection.

,ther ervices

The banks provide immediate service in case of long'slo" moving queue. But

for this, they are needed to be informed earlier.

ecurity

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In case of any reections, banks provide instant noti)cation to the company.

Then they recheck, verify the documents as "ell as accounts and resend the

payment instructions.

?.( $vervie2 of Berger 4aints Banglades! "imited

Berger 7aints is one of the oldest names in the paint industry, yet, it is one of

the most technologically advanced companies in the country. It is constantly

striving for innovating superior quality products and services. $ith more than

;@ years of rich heritage, Berger manufactures "orld class paints for all

kinds of substrates and also provides unparallel services.

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Berger9s inception "as laid out in JG@ by a Ferman national named !ouis

Berger, "ho started dye and pigment making business in 6ngland. !ouis

involved his family into the business and eventually changed the status of the

company to !ouis Berger O 3ons !imited. The company gre" and e*panded

rapidly "ith a strong reputation for e*cellence in innovation and

entrepreneurship. In the initial years, !ouis successfully re)ned the process of

manufacturing 7russian blue, a deep blue dye. This dye "as "idely used for

the uniforms of many 6uropean armies of that time. 7roduction of dyes and

pigments evolved into production of paints and coatings, "hich till today,

remains the core business of Berger. The company gre" rapidly, by

establishing branches all over the "orld and through mergers and

acquisitions "ith other leading paint and coating manufacturing companies.

Berger 7aints started Ppainting9 Bangladesh since independence. ver the

past fe" decades, Berger has evolved and transformed itself in becoming the

leading paint solution provider in the country "ith a diversi)ed product range

that caters to all your painting needs.

Berger has heavily invested in technology and Mesearch O 4evelopment

NMO4# compared to any other manufacturer in this market. Investment in

technology and plant capacity is even more evident from the establishment

of 7o"der -oating and 6mulsion plants at the 4haka factory. The state=of=the=

art 4haka factory is an addition to Berger 3ales 4epots

strategically located at 4haka, -hittagong, Mashahi, 5hulna, Bogra, 3ylhet

,-omilla and 1ymensingh has an unmatched capability to ans"er to paint

needs at almost any"here in Bangladesh.

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Berger


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Hhilik paints, 2sian paints, Mo*y paints, 2nchor paints, 7ailac paints etc. The

secret behind this huge gro"th and leading position of B7B! is no quality

compromise commitment and importance to any customer claims.

B7B! has ? depots at ? di+erent areas of Bangladesh. They are in 4haka,

-hittagong, -omilla, Bogra, Mashahi, 5hulna, 1ymensing, Barishal and

3ylhet. B7B! is a dealer based business. The company has appro*imately

;;@@ dealers "ho are "orking for B7B!.

Performing Ban&s ()ercising %nstruments

The collection from the dealers is happened mainly through -iti Bank 8. 2.

The areas, "here there is no branch of -iti, I0I-, Ismali Bank and 3outh 6ast

Bank "ork as collection banks under direct guidance of -iti. 2ll the collections

take on an average of days to be collected by the company. 7er month

only R of the sales of the company remain as outstanding on an average.

B7B! has C@ day terms of condition for sales. 2nd the dealers get di+erent

facilities and'or penalties for paying early, in=bet"een and delayed payments.

The banks receive cheques, 44s and 7s from the dealers as collection

instruments. The dealers deposit them to the nearest depots. 2nd then,

banks representatives collect them or depot representatives send them to the

banks for further processing.

*iming

The average collection time of B7B! Ductuates from J to days for di+erent

locations. 4haka and the nearest locations have an average collection time of

J days "hereas the others have an average collection time of days.

"a$le %: A0erage Clearance "ime !or Berger Paints Bangladesh /imited

"ocation 5verage )ollection Time

E?


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4haka, -omilla O 1ymensignJ days

-hittagong, Bogra, Mashahi, 5hulna,

Barishal O 3ylhet days

3o, the timing of crediting the funds varies from J to days for di+erent

locations. But the good are dispatched from the depots "henever the

requirements are sent by the dealers.

M% +iftness

The 1I3 update frequency is very high and satisfactory in the collection

process of B7B!. -iti Bank 8. 2. provides noti)cation after occurrence of

every transaction in a day. 3o, B7B! gets instant and continuous information

of each and every collection procedure.

,ther ervices

The banks provide various useful services to B7B! for di+erent issues. 0or

e*ample, in case of erroneous information provided by dealers, banks notify

the parties as soon as possible and request the dealers to alter and adust the

necessary information of that particular instrument or documents.

If it is a matter of lost 44'7, the bank noti)es both of the parties and tells

the dealers to issue stop payment order against it. 2fter this, the dealers

have to issue ne" 44'7 for that transaction. (ere, 44'7 can be lost both

by the bank and the dealers. But the ultimate processing against this activity

has to be taken by the dealers.

3ometimes, the banks face 1I-M machine diKculty because of endorsement

problem or signature mismatch. In this case, the banks )rst identify the

ground of the problem, verify the issues and ask dealers to adust or replace

it soon. To reduce this problem, the bank has a penalty policy N@@ Tk.# for

every dishonored transaction because of 1I-M problem.

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In case of long'slo" moving queue, B7B! gets favor from the banks. The

company has given a special card by the bank so that the representatives

need not to "ait in the queue and they are served instant. 2s B7B! has

products above @@@ Tk price, so, the banks do not accept any small notes

against B7B! products.

ecurity

The banks are very alert about security issues regarding transactions "ith

B7B! -ompany. The chance of any kind of reections, fake currency or 44'7

detection is very rare, around @.@R. Both the performing banks and dealers

are very careful about these issues. 2nd the banks are highly instructed to

handle these situations carefully and strictly.

4ayment 4rocess

The payment process of B7B! is very straightfor"ard. The B7B! portfolio of

collection and payment process is very stable and strong. 0or this reason,

other companies like to adopt or follo" theirs transaction process.

Performing !an&s e)ercising instruments

B7B!9s payment process is done through E di+erent banks/ 3tandard

-hartered Bank, -B of -eylon, -iti Bank 8. 2. and (3B-. 1ost of the

transactions are done through 3tandard -hartered Bank. 2nd the local

payments are made by cheques. 2ll the transactions are made during the

bank as "ell as company oKce hour time.

*iming

The timing of B7!9s payment process is very fast. $henever electronic fund

transfer instructions of sending funds requests are uploaded, the debiting of


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account, any advice of Nun#successful transaction is made instantly. There is

no time lag bet"een these procedures. -heque printing procedure is same as

that of 1arico9s.

M% +iftness

Though B7B! does not get any 1I3 or noti)cations from any of the banks, but

the company can get information "henever it asks from the banks.

ecurity

2s mentioned before, the security system of the banks, in case of transaction

"ith B7B!, is very high. But to avoid the 1I-M machine problem, B7B! is

planning to avoid mannual signature process and to have scanning signature

facility very soon.

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?.= )omparative analysis of Treasury $perations of nilever

Banglades! "imited

-omparative 2nalysis is done on ; parameters collection process and

payments process. Fround on "hich comparison are brought/ Instruments

used, s"iftness, 1I3 received and IT platforms used, security, other value

added services.

)ollection 4rocess

Berger has a more comple* collection process than the other t"o. Berger is

operating by providing credit, thus reconciliation process requires more

vigilance.

2lthough banking infrastructure is almost same amongst the C companies,

but UB! scores better in terms of IT infrastructure and 1I3 update. This is

allo"ing reconciliation "ith minimum intervention in system. Unilever is only

dispatching goods only "hen in internal system collection is recorded. The

time from physical collection to recording is usually less and there is less

likelihood of incorrect recording.

2ll the C companies have the same pitfall "hen funds are collected through

44'7. The encashment time is long thus cash utili%ation process and return

from unutili%ed cash goes do"n. Unilever needs to look into ne" techniques

and structuring to ensure that encashment occurs.

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Berger and 1arico has to endure diKculties in times of lost instrument from

either banks9 courier end or the teller end, as the organi%ation itself has to

ensure that F4 is done by the distributor and accordingly duplicate 44 is

issued "hich itself can take a long time. The bank receiving the instrument

has to take the responsibility.

Recommendation for )ollection 4rocess

3ales is the ultimate obective for and organi%ation thus a smooth collection

process is an important capstone. Unilever is reali%ing on T@ "hen funds are

transferred from distributors a'c to Unilever a'c in BM2-. 0unds can also be

transferred interbank "hen the banks are online bank. 3uch transfer over

B60T8 NBangladesh 6lectronic Transfers# payment con)rmation comes at

least the ne*t day or more. This "ould impede the on time transfer of

products at distributors end. UB! can initiate the process of all distributors a'c

opening in the collection bank. This "ould enable actual cash collection to

occur in T@. 2nother possible solution could be to avail a product like bill

purchase line : this "ould mean on collection of instrument bank "ill credit

equivalent amount in UB!9s a'c. But usually such products are costly.

2ll the organi%ation faces diKculty at times "hen the instrument gets lost in

courier service or at teller front. It can be agreed "ith bank, that if such loss

occurs at bank or other organi%ation appointed by bank, "ithout delay

equivalent amount to be credited to UB! a'c and duplicate 44 issuance can

be done in favor of the collecting bank. This "ill help both the distributor and

UB!.

4ayment 4rocess

2mong the C companies, UB! uses the most variety of instruments to make

its payments to di+erent entities. The timing of the current payment process

of B7B! and UB! are e*cellent "hereas 1B! takes more time to perform the

transaction.

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The 1I3 s"iftness of 1B! is not satisfactory. n the other hand, B7B! and UB!

have very satisfactory 1I3 services from the banks.

-heque printing activity has been largely outsourced, but cheque delivery to

vendor still remains "ith Unilever. ften timely delivery does not happen.

Recommendation for 4ayment 4rocess

Mecently B60T8 has been implemented in Bangladesh as discussed before.

UB! can use this product. This "ill mean there "ill be minimum number of

cheque printing and fund "ill be electronically transferred. This "ill reduce

lead, and bank reconciliation process "ill be much easier.

In case during the internship period, this net"ork has been initiated and

interbank transfers "ithin UB! a'c s have been started. 0or vendors piloting

has started, and it has been planned that ; most frequent and reasonably

high value vendors9 payment "ill be transferred through this net"ork.


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A. )onclusion

Treasury 1anagement in Unilever Bangladesh includes activities of risk

controlling and service delivery to di+erent stakeholders. The function

includes activities ranging from cash forecast, liquidity O investment

management, foreign e*change e*posure management, handling

payment and cash collection process.

2 maority of the day to day activities includes "orking "ith banks and

ensuring that best value added deliveries are crafted in order to

provide best service delivery to di+erent stakeholders ranging from

other functions of the organi%ations to distributors and suppliers of the

company.

The comparative analysis is done "ith another ; peer companies to

understand and benchmark the practices and )nd any gap areas that

Unilever can improve on. In collection front UB! is using instruments

like direct debit and 4emand draft'7ay rder. The system integration is

strong and is minimi%ing manual input and thus minimi%ing possibility

of error and making processes real time. The collection bank is also

o+ering credit line to distributors, "hich is aiding them in being able to

purchase "ith lo" hindrance due to shortage of fund. The gap

observed is in the delay in cash reali%ation "hen instrument other than

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direct debit is used. -ompany can revie" "hether distributors can

open account in collecting bank so that direct debit can be used. 2lso

there are ne" products like bill purchase line, "hich can also be used.

Being a manufacturing company UB! has both import and local

transactions. In case of import transactions, the products are

homogenous, although UB! is enoying some customi%ed services like

dedicated delivery and courier service etc, but the point of distinction

is not much. In case of local payment, once again UB! is "ay advanced

in terms of IT integration. UB! can take leverage of electronic fund

transfer, "hich "ould ensure that payments are cleared on time and

minor manual obs can be avoided.

internship on unilever

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