FMCG Industry Review of Bangladesh PDF

FMCG Industry Review of
Bangladesh
(This document has been prepared by the Research Team of EBL Securities Limited for information only for its clients.
No part of this report should be copied or used in any other report or publication or anything of that sort without
any prior permission taken from the authorized publisher of this report)
Analyst: Asaduzzaman Ashik
research@eblsecurities.com
FMCG Industry Review of Bangladesh

FMCG at a Glimpse
Consumer goods refer to the final goods and services that are consumed by the households and not used in the
production process of other goods & services. Consumption of these goods and services is defined as the Private
Consumption or Household Consumption.
On the other hand, Fast Moving Consumer Goods (FMCG) are products that are sold rapidly and at comparatively
lower cost. Examples of such FMCGs are packaged foods, beverages, toiletries, over the counter drugs and similar
consumables.
Usually, FMCGs have a short shelf life. Some FMCGs are highly perishable such as meat, fruits, vegetables, dairy
products and baked goods. Others products like toiletries, packaged foods, soft drinks, housework products have
high turnover rates. Revenue margin from the FMCGs is comparatively small, these products are generally sold in
bulk quantities to make considerable aggregate earnings. The business of FMCGs is considered as the most definitive
instance of low margin and high volume business.
Based on how fast products are sold to the customers, consumer goods are also classified as Slow Moving Consumer
Goods (SMCG). SMCGs are those which have a useful life longer than a year including stuffs such as domestic
appliances, furniture and home upgrading products. These products have a sluggish sales regularity and are not
circling as quickly as FMCGs.
Characteristics of
FMCGs
Consumer's Producer's
Angle Angle
Extensive
Frequent Low High Stock
Low Price High Volumes Low Margin Distribution
Purchase Involvement Turnover
Networks
FMCGs industry is one of the fastest growing segments of

GDP & Private Consumption Growth
the market. The population of Bangladesh was 164.67
million in the end of 20171. This large number of 16.00%
population of the country makes the FMCGs industry

11.00%
very prospective. With the considerable growth of GDP,
the private consumption growth has also increased over 6.00%
the years. In FY 2016-17, GDP Growth rate was 7.28%
compared to 7.11% in FY 2015-16 whereas Private 1.00%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
consumption growth in FY 2016-17 was 10.3% compared
to 9.1% in FY 2015-162. GDP Private Consumption
Source: BB, BBS & EBLSL
Consumption Nature in Bangladesh

Private Consumption which is also known as Household Consumption is backing up the stable growth of the economy
of Bangladesh. In FY 2016-17, Private Consumption was 67.6% of GDP compared to 69.1% in FY 2015-16. The private
consumption trend is downward since FY 2010-11 where it was 74.3% of GDP. GDP at current market prices was
BDT 19,561 billion in FY 2016-17 whereas Consumption at current prices was BDT 13,213 billion in the same period.
1
http://www.worldometers.info/world-population/bangladesh-population/
2
https://www.thedailystar.net/country/bangladesh-gdp-growth-rate-in-2016-2017-fiscal-year-7-percent-government-1491103
1 EBL Securities Limited Research 21st June, 2018

According to Bangladesh Bureau of Statistics (BBS), Private Consumption as % of GDP
consumption expenditure was 96% of average monthly 74.3% 73.7% 72.9%
household income (national) in 2010 where it was 83% in 72.6% 72.4%
2005 and 78% in 2000. Consumption expenditure was 93% 69.1%
67.6%
of average monthly household income (Urban) in 2010
compared to 79% in 2005 and 74% in 2000.
From this historical trend, we can see that the consumption
expenditure as % of total income has increased significantly 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Source: Bangladesh Bureau of Statistics
over the periods both in urban and rural areas.
Year Income Consumption Expenditure % of Income

Expenditure
National
2015 15,945 15,420 97%
2010 11,479 11,003 96%
2005 7,203 5,964 83%
2000 5,842 4,537 78%
Rural
2015 13,353 13,868 103%
2010 9,648 9,436 98%
2005 6,096 5,165 85%
2000 4,816 3,879 81%
Urban
2015 22,565 19,383 86%
2010 16,477 15,276 93%
2005 10,463 8,315 79%
2000 9,878 7,337 74%
The breakdown of Consumption Expenditure as % of total is as follow:

Rural
Year Food & Beverage Cloth & Footwear Housing & Rent Fuel & Lighting Household Effect Others
2010 58.7% 5.1% 7.3% 6.1% 1.9% 20.9%
2005 58.5% 5.5% 9.8% 6.1% 1.8% 18.3%
2000 59.3% 6.5% 5.7% 7.2% 1.2% 20.1%
Urban
2010 48.2% 4.7% 14.4% 4.9% 1.4% 26.4%
2005 45.2% 5.5% 16.8% 5.8% 2.5% 24.3%
2000 44.6% 5.7% 16.1% 6.0% 1.8% 25.9%
From the table above, we can see that most of the expenditures are occurring in Food & Beverage items both in
rural and urban areas. In Urban areas, Housing and rent expenses are second area in terms of expenditure as % of
total Consumption expenditure by the individual consumers.

Asian Countries Overview on Some selected Indicators:
GDP from manufacturing activities is highest in India in FY 2016-17 which was USD 80.96 billion where Indonesia was
in second position with USD 38.66 billion. Food Inflation was lowest in Nepal on 2017 which was -0.90% whereas
highest food inflation was in Bangladesh (7.13%). Consumer Spending in India was USD 296 billion which was highest
in south Asian region. Consumer Price Index (CPI) was lowest in Maldives and the index was 112 points in the end of
2017. CPI was 245 points in Bangladesh at the same period.
GDP Per GDP from GDP from Consumer

Inflation Food Population
Countries Capita PPP Manufacturing Services CPI Spending
Rate Inflation (in million)
(in USD) (in USD billion) (in USD billion) (in USD billion)
Bangladesh 3,319 0.24 1.54 5.83% 7.13% 245 68.62 164.67
India 6,093 80.96 1,186 4.44% 3.26% 136 296.00 1,299.00
Indonesia 10,764 38.66 3.24 3.18% 3.40% 132 100.02 259.00
Maldives 12,236 0.08 2.96 2.10% 1.10% 112 2.323 0.42
Nepal 2,288 0.47 0.99 4.20% -0.90% 120 6.48 28.98
Pakistan 4,866 13.09 56.95 3.80% 5.10% 184 79.30 208.00
Sri Lanka 11,417 2.22 9.00 4.50% 6.00% 122 51.27 21.20
Source: world bank data & trading economics data :::: Data presented here are for FY 2016-17 or 2017
Factors Accelerating the Growth of FMCG Sector of Bangladesh
Urban Population of the Country

Urban Population in Bangladesh (In mn)
The enlarged urban population of the country has stimulated
58.75
reasonable growth for the food and consumer goods and has 60
57.09
58
55.25 36. 00%
caused sizable needs for the related products. The growth of 56

53.43
51.61
35. 00%
urban population of the country is remarkable over the years.

54
49.82 35.70%
35.00%
34. 00%
52
In the end of 2017, the urban population of the country stood 34.30%
50
33. 00%
48
33.50%
at 58.75 million which represents 35.70% of the total
32. 00%
46
44 32.80%
32.00%
31. 00%
population. According to Bangladesh Bureau of Statistics (BBS),

42
40 30. 00%
the urban population of the country will be 85.95 million within 2012 2013 2014 2015 2016 2017
2030 and 111.88 mn within 20404. Urban Population % of total population
Source: World Bank & EBLSL Research
Middle Class Income Category
Like urban population, middle class people has Currently
contributed and expected to contribute in the growth of 34 million 25% People
fast moving consumer goods industry. According to Boston MAC by 2025 are Middle
Consulting Group, 2 million Bangladeshis are joining the Class
rank of middle and affluent class (MAC) a year. Currently
the number of MAC is around 12 million which is expected 12 million
33% Middle
people are
to be 34 million by the year 2025. According to Bangladesh Middle & Class by 2030
MAC
Development Studies (BIDS), 20% of the total population Affluent
in Bangladesh belongs to the middle class income category Class
compared with 24.1% in India. Researchers believe that
25% of the total population will belong to middle class
income category within 2025 and 33% will belong within Source: Financial Express (November 2017) & EBLSL Research
20305.
3
https://www.wttc.org/-/media/files/reports/economic%20impact%20research/countries%202015/maldives2015.pdf
4
http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/d6556cd1_dc6f_41f5_a766_042b69cb1687/PocketBook2016.pdf
5
https://thefinancialexpress.com.bd/views/opinions/burgeoning-growth-of-the-middle-class-1511362584

Labor Force & Participation Rate
The labor force, which is also known as
work force, is the populace of able- Labor Force (in million) & Participation Rate
68 57. 10%
57. 00%
bodied, keen people who are currently 66
66.6456. 90%
56.99%
employed or looking for work. Labor 56.88%
64
56.70% 65.38 56. 80%
64.32
Force is the depiction of the labor pool 56.79%62
63.21
56. 70%
62.11
56. 60%
of a certain country. Students, 61.02

60
56.62% 56. 50%
housewives, and persons above the age 59.93 58 56.53% 56.50%

56. 40%
58.86 56.44%
of 64 are not numbered in the labor 56
56. 30%
force6. The participation rate refers to

56. 20%
54 56. 10%
the total number of people who are 2010 2011 2012 2013 2014 2015 2016 2017
currently employed or in search of job. Labor Force Labor Force Participation Rate
In Bangladesh, the labor force are Source: World Bank, ceidata & EBLSL Research
increasing day by day. In 2017, total
labor force was 66.64 million compared to 58.86 million in 2010. Besides, labor force participation rate was 56.50%
in 2017 where the world average rate was 61.94% in the same year7. The labor force participation rate of Bangladesh
is clearly ahead of some other Asian countries. In 2017, labor force participation rate was 56.12% in Saudi Arabia,
54.44% in Pakistan, 53.79% in India, 53.54% in Sri Lanka8. This labor force has helped Bangladesh to reduce the
unemployment rate to 4.1% in 2017 compared to 35% in 2001 9. The lifestyle of the employed population has
changed and consumption pattern too. This huge working population is a major driver to the growth of FMCGs
industry over the year.
Rural Consumption
Consumption in rural areas is considered as one of the major drivers of the growth of the FMCG industry. According
to BBS, Rural consumption expenditure was 103% of total income in 2015 where urban consumption was 86% of the
total consumption. In last 15 years, consumption expenditure for rural areas has increased significantly and reached
at 103% from 81%. This rural market segment has immense prospects enticing overall FMCG growth.
Availability of Raw Materials & Low Labor Cost

The climatic condition of Bangladesh is suitable for the productions of livestock, milk, rice, wheat, maize, sugarcane,
fruits & vegetables which makes a large raw material base for many FMCG companies. Moreover, importing of
required raw materials (which is not available in local markets) is very cost efficient for the geographical location of
Bangladesh. Besides the availability of raw materials, low labor cost in Bangladesh is another driver of the growth of
FMCG industry in this country. Low labor cost supports low cost of productions which makes Bangladesh a favorable
investment destination for FMCG industry.
6
https://economictimes.indiatimes.com/definition/labour-force-participation-rate
7
https://data.worldbank.org/indicator/SL.TLF.CACT.ZS
8
https://www.indexmundi.com/facts/indicators/SL.TLF.CACT.ZS/rankings
9
https://www.indexmundi.com/g/g.aspx?c=bg&v=74

Overview of FMCG Companies in Bangladesh
Before 1979
1980 to 1999
2000 to 2017
Major Classifications of FMCG Industry in Bangladesh

In Bangladesh, the FMCG industry can be classified in
three major categories- Foods and Beverage,
Personal Care and Household Care Industries. Foods
and Beverage Industry includes all food products Foods & Personal Household
such as milk & dairy products, biscuits and bakery Beverage Care Care
products, frozen foods, ice cream, tea, coffee, baby
foods, soft drinks, tobacco and others.
On the other hand, Personal Care industry includes
the products which are used for personal care like
perfume, cosmetics, toiletries products and other related products. Household products include the products which
are useful to maintain the house like cleaning and decorating. It includes room scents or sprays, detergent powder,
liquid detergent, soap noodles and related products.

1. Foods & Beverage Industry
Popular foods & beverage companies in Bangladesh are Acme Agro Vet & Beverages Ltd, ACI Foods Limited, Akij
Food & Beverage Ltd, Aarong, BD Foods Limited, Bashundhara Foods & Beverage Industries Limited, Bombay Sweets
& Company Ltd, British American Tobacco Limited, Cocola Food Products Limited, Dhaka Tobacco Limited, Golden
Harvest Agro Industries Limited, Globe Soft Drink Ltd, Haque Group of Industries, Ifad Foods Limited, Ispahani Foods
Limited, Meghna Group of Industries, Nestle Bangladesh, New Zealand Dairy Products Bangladesh Limited, Nabisco
Biscuits & Bread Factory Ltd, Olympic Industries Limited, Pran RFL Group, Partex Beverage Ltd, Perfetti Van Melle
Private Limited, Prome Agro Foods Limited, Square Foods & Beverage, Sajeeb Group, Transcom Beverages and
others.
1.1 Milk and Dairy Industry

Milk & Dairy Industry Overview
Milk production is one of the important economic activities in Bangladesh, providing 3.6 million households with
supplementary income. The dairy system in Bangladesh is characterized by small-scale operations, coupled with
crops and other off-farm activities. Several government, NGO and private sector initiatives have made progress in
transforming dairy into a more value-driven and market-oriented sector. The dairy market in Bangladesh is lucrative
for investors given the country’s large population, rising incomes and evolving diet.
Growth Drivers:
 One of the highest cattle density in the world: 172 large ruminants per square kilometers in 2016-17
 Rising demand for milk-based food products in daily consumption and as beverages
 Low cost of input (raw materials, human resources etc.)
 Introduction of Ultra High Temperature (UHT) milk, milk powder, yogurt, flavored milk products and other
popular product varieties by dairy enterprises
 Introduction of aseptic milk packaging leading to longer shelf life
Investment Insights on Dairy Market In Bangladesh

Within the formal dairy sector in Bangladesh, over 90% of the Demand & Supply of Milk (in Lakh MT)
milk is processed as pasteurized packaged milk and only 10% is
processed into cheese, butter, ghee and milk powder. Key 148.65
leverage points for expanding the dairy market are cattle feed 92.83
55.82
production, improved breeds of high yielding cows, milk
collection points and dairy cold chain as well as product
Demand Supply Deficiency
varieties. The supply for milk and related products are not Source: Dept. of Livestock Services
enough to meet the demands. There is a huge gap between the
demands and supplies of dairy products.
Per Capita Milk Consumption in Bangladesh

Currently, each Bangladeshi consumes 159 ml of milk
Per Capita Milk Intake (in ML) 521
(per capita) daily where the Food & Agriculture 550
500
Organization suggests that daily milk consumption 450
should be 250 ml (per capita) for an adult. Our

400
350
250 247
neighbors India and Pakistan are consuming around 300
250
158
247 ml and 521 ml (per capita) daily respectively. As 200
150
people are getting more conscious about the 100
50
balanced food, it is expected to increase the milk FAO Standard Bangladesh India Pakistan
consumptions day by day.
*Source: Daily Star, Dec 2016; Dhaka Tribune, June 2017; Department of Livestock Services, 2017

Milk Production in Bangladesh
Though, the milk production in Bangladesh is Milk Production (in mn MT)
increasing but these quantity is not enough to 9.28
meet the local demands. Hence, every year 6.97 7.28
5.07 6.09
Bangladesh needs to Import a huge amount of 2.95 3.46
2.29 2.37
liquid and powder milk. In 2008-09, milk
production in Bangladesh was 2.29 mn metric
tons whereas the production of milk in 2016-17 is 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
9.28 mn metric tons.

Source: Department of Livestock Services, 2017 & EBLSL Research
Milk Imports in Bangladesh:
In 2016-17, Bangladesh imported 113 thousand tonne powder Powder Milk Import ( in thousand tonnes)
130
milk, worth BDT 35 to 45 billion10. So there is a good opportunity 105 113
for the local dairy industries to contribute to this gap. Even if the 85 79
local processing industries triple their output it would only
offset the import. 2012-13 2013-14 2014-15 2015-16 2016-17
Powder Milk: Source: BBS 2017 & EBLSL Research
There are some local producers of powder milk like: Sanowara

Corporation, Danish Condensed Milk and Meghna Group (Fresh milk powder) and others. Most of the powder milk
brands available in Bangladesh import raw materials and distribute within Bangladesh. The basic information is as
follows-
 Average retail price of locally produced milk powder is USD 6.21/BDT 510 per kg (2016-17)
 Average retail price of imported milk powder is USD 6.92/ BDT 570 per kg (2016-17)
 Total import in 2016-17 is 113 thousand tonnes.
Popular Powder Milk Brands & Prices in Bangladesh
No. Brand Name Country of Origin Price* (in Marketing/production by

01 Dano Denmark BDT/KG)
600 Arla Foods & MMPL
02 Nido New Zealand 690 Nestle Bangladesh
03 Aarong Bangladesh 550 BRAC Dairy
04 Anchor New Zealand 600 New Zealand Dairy Products Ltd.
05 Diploma Australia 560 New Zealand Dairy Products Ltd.
06 Farmland New Zealand 525 New Zealand Dairy Products Ltd.
07 Pran Bangladesh 480 Pran RFL
08 Marks Australia 500 Abul Kair Group
09 Starship China 400 Abul Kair Group
10 Fresh China 460 Tanvir Foods ( Megna Group)
Source: EBLSL Research & chaldal.com :: ** Price varies on different criterions of milk ingredients
Pasteurized Milk Brands & Prices:

 Total number of commercial dairy firms in Bangladesh is 15-20.
 Milk price at source (based on fat content) is BDT 45-55 per liter.
 Average retail price is BDT 70 per liter (2016-17)
 Flavored milk varieties include Chocolate, mango, banana and strawberry etc.
10 http://www.dhakatribune.com/opinion/op-ed/2017/06/24/milk-money/

Brands Price (1ltr/BDT) Brands Price (1ltr/BDT)
Milk Vita 68 Ultra 65
BRAC 65 Aftab 65
Pran UHT 80 Aarong UHT 80
Pran 65 RD Milk 65
Amo 65 Akij 65
Farm Fresh UHT 80 Savar 65
Source: EBLSL Research & chaldal.com
Pasteurized Milk Market Share:

According to a research on the scenario of processed dairy products in Bangladesh conducted by FAO, the market
share of pasteurized milk brands are as follows:
46.0% Market Share

45. 0%
24.8%
35. 0%
15.3%
25. 0%
15. 0%
6.1%
5.0 %
1.5% 1.0% 1.5% 2.0% 0.5% 1.0%
-5.0%
Milk Vita Aarong Pran Milk Akij Milk Amo Milk Ultra Milk Aftab milk RD Milk Army milk Pabna Dairy
Source: citeseerx & EBLSL Research
1.2 Biscuit & Bakery Industry

Biscuits and confectionary items are considered as one of the preferable snacks of Bangladeshi consumers especially
for the middle income class group who are driving the biscuits market to grow rapidly. The biscuits industry in
Bangladesh comprised of organized industrialized manufacturers and unorganized small and local producers
throughout the country. Stimulated by growing demand, particularly from the lower middle and middle income
groups, a large number of firms have joined the foray in the last several years. Some old players have also expanded
their production capacity. The biscuit market is growing mainly because of consumers' hunt for hygienically prepared
foods. The market insiders believe that the biscuit & confectionary market will grow at a rate of 15% annually in the
next 10-15 years where the organized segment is expected to grow at around 10%11.
Market Size of Biscuits & Confectionary Industry in Bangladesh
The current market size of Biscuit,
Current
Bakery and Confectionary items is BDT Market Size
15% expected Branded Biscuits 10% expected
50 to 60 billion. The market was earlier growth in Market Size BDT growth in
BDT 50 to 60 30 bn coming years
coming years
dominated by small bakeries. But now, bn
about 40% to 50% of the total market Source: Daily Star, March 27, 2017 & EBLSL
shares are taken by the large and well- Research
known brands of the country. At present, the annual market for branded biscuits is nearly BDT 30 billion 12. Demand
for biscuits is growing as entrepreneurs have shifted to automation in baking and consumers are looking for a variety
of quality foods at low prices.
Market Share of local and Imported Biscuits Major Classification Market share
The local manufacturers now meet 90% to 95% of the Local Biscuits 90% to 95%
domestic demand and the rest is imported 13. The local Imported Biscuits 5% to 10%
manufacturers have been able to win the confidence of Source: Daily Star, March 27, 2017
consumers by improving food quality and keeping prices
11
http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864
12
http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864
13
Source: http://www.thedailystar.net/business/biscuit-market-grows-fast-demand-rises-1381864

reasonable. As a result, they have been able to sustain their position in the market by driving away imported
products from India, Malaysia and Indonesia. Some firms even Automated Factories in Bangladesh
export biscuits.
15
At present, nearly 5,000 bread and baked goods makers,
including 100 automatic and semi-automatic bakeries, are
50
operating in this segment. Some large firms like Olympic, Pran
make biscuits through fully automated machines. 35
Mega Factories Large Factories Medium Size Factories

Major Players in the Market Source: The Independent, May 7, 2017
Olympic Industries is the market leader having around 39%

market share of the branded biscuits market. The following table contains the major market players in the
market and their most popular brands:
No. Company Names Popular Brands

1. Olympic Nutty, Energy, Tip, Milk Marie, Queen Marie, Malai Cream, Orange, Nutty real
peanut, Dry cake biscuit
2. Pran Special Toast, All Time Cookies, Dry Cake Biscuit, Sweet Toast
3. Goldmark Orange Cream, Milk Cookies, Coconut Cookies, Low Sugar Biscuit, Chocolate
chips, Butter
4. Ifad Tea Time, Kaju Delight, Butter Delight, Choco Delight, Jeera Biscuit, Cheesy Bites
5. Kishwan Toast, Chocolate Cookies, Horlicks Biscuit, Ovaltin, Fiore Butter
6. Bangas Grand Choice, Choco Cream, Mango Slice, Pineapple
7. Danish Toast, Dry cake biscuit, Doreo, Danish Lexus, O La La Potato
8. Nabisco Glucose, Milk Cream, Crunchi, Elachi
9. Al-Amin Orbit, Cosmos, Deena, Pineapple, Racie
10. Cocola Sweet Toast, Chocolate Biscuit
11. Multi Marie Gold, Nimki
12. Haque Digestive, Mr. Cookie, Ding Dong, Milk Chocolate, Mr. coconut, Mr. Milk
13. Bengal Orange Cake, Big Bite
Source: EBLSL Research
1.3 Frozen Food Industry

The global frozen food industry record exceeded USD 250 billion by the end of 2015 and in terms of volume the
market was 43.5 billion kilograms in the same period 14. Global frozen food market is expected to garner USD 306
billion by 2020, registering a CAGR of 4.1% during the forecast period 2015 - 202015. The deep frozen food products
that can be stored and used over a long period are referred to as frozen foods. The most widely used frozen food
products include frozen ready-to-eat meals, fruits & vegetables, meat & poultry, sea food, soups and similar array
of products.
14 http://www.grandviewresearch.com/industry-analysis/frozen-food-market
15 https://www.alliedmarketresearch.com/frozen-food-market
Market of Ready-to-Cook & Processed Meat
The rising demand for easy and hygienically- The market is
prepared foods among the urban middle class Market size for growing for last
is pulling in large investors to the processed ready-to-cook 10 years and
The market is
food and frozen Industry experts
chicken and ready-to-cook frozen foods sector. growing at 20%
snacks is around believe that the
The growth is initiating due to people’s rising per year.
BDT 2,000 growing trend
interest in convenient foods16. million. will sustain in
coming years.
Source: Daily Star & EBLSL Research
Market Share Breakdown

Companies engaged in the business of processed meat and frozen snacks have different products in their portfolio
to meet up the demand of different purposes of the customers. Golden Harvest is the market leader with 25% of the
market share where the closest competitor Lamisa Foods has 15% market share. The market share break down of
these companies in the frozen food industry is as follows:
30%
MARKET SHARE
25%
25%
20%
15%
15%
13%
10%
9% 8% 8% 9%
7% 6%
5%
0%
Golden Lamisa Pran Kazi Farms Rich CP BRAC Igloo Others

Harvest
Source: Golden Harvest Primary Research & EBLSL Research
Major Players in Processed Meat & Frozen Snacks

Along with Golden Harvest Agro Industries Limited, there are some others companies producing varieties of frozen
food products and processed meats in the consumer market. Brac Chicken, Pran RFL, Kazi farms, CP Bangladesh,
Igloo Foods, KFC Bangladesh, Rich Foods & Lamisa Foods have different products to meet the diversified needs of
the clients. Relevant company and their available products are as follows:
16
http://www.thedailystar.net/business/processed-chicken-market-heat-71871

•Frozen Paratha, •Chicken Nuggets, •Paratha, Singara, •Paratha, Roll, Filo •Fried Chicken
Samosa, Dal Puri, Salami Slice, Samosa, Chatpoti, Pastry, Strips, •Frozen Chicken
Aloo Paratha Pepperoni Sausage Spring Roll, Dal Puri, Samosa, Aloo Puri
•Chicken Nuggets, •Chicken Sausage, Popcorn, French Fry •Chicken Nuggets,
Chicken Samosa, Chicken Pepperoni •Chicken Sausage, Meat Balls, Sausage,
Sausage, Meat Ball, Slice, Chicken BBQ Nuggets, Chicken Cutlets, Chicken
Fish Ball, Fish Finger, Burger Patty, White Lollipop, Teasers
Pop Chicken,Drumlets Meat Ball
Golden Harvest BRAC Chicken Pran RFL Kazi Farms CP Bangladesh

Agro Industries
•Crispy Chicken, Hot •Fried Chicken •Plain Paratha, Family •Paratha, Aloo Puri,
Crispy, Hot Wings, Paratha Potato Smiles, Roti,
•Chicken Sausage,
Chicken Pop, Burger, •Chicken Sausage, Singara, Samosa, Breaded Chicken
Drumsticks, Nuggets French Fry Fillet, Chicken
•Chicken Sausage, •Chicken Nuggets, Singara, Chicken
Chicken Ball, Vegi Chicken Ball, Wonton,
Burger
Nuggets
Chicken Pop
•Beef Singara
Igloo Foods KFC Bangladesh Rich Foods Lamisa Foods Bengal Meat
Limited
1.4 Ice-Cream Industry

The total market size of branded ice cream was around BDT 6.5 billion in 2013 but the current size of the industry is
around BDT 10 billion17. The nature of the ice cream industry in Bangladesh is oligopoly. The key player in the market
is Igloo. The ground-breaking ice-cream company in Bangladesh started its operation in 1964 in Chittagong. The
company is now the market leader since 1997 having the market share of 36%. Polar came into the market in 1987
from the parent company Dhaka Ice Cream Industries Ltd. Polar tackled some inner management and financial
complications and in 2009, and the whole brand changed that time. A foremost restoring of the brand and its
products took place which got substantial responses from the customers which is replicated in their current market
share of 26%.
Bellissimo is comparatively a new player in the
ice cream market, they started operations in Ice Cream Market as % of GDP
2013. They belong to Kazi Farm Group Ltd. 0.0 80%
0.069%
Bellissimo currently holds 13% of the market 0.064% 0.0 70%
share. The entry of Bellissimo has altered the 0.0 60% 0.053%
dynamics of the industry as it presented many
0.0 50%
0.031% 0.0 40%
different new types of ice creams. The market 0.0 30%
players are now shifting attention to offering a 0.0 20%
varied range of products. Bloop belongs to 0.0 10%
parent company Golden Harvest and entered 0.0 00%
the market in the 1st week of April, 201318. The Bangladesh India Europe World
ice cream industry of Bangladesh relative to the Source: Euromonitor & EBLSL Research
GDP is on par with global market and higher than some of its neighbors.
Major Market Players
17
http://www.thedailystar.net/news/brand-war-heats-up-in-ice-cream-market
18
https://www.coursehero.com/file/p7kumb7/The-current-size-of-the-ice-cream-market-of-Bangladesh-is-over-BDT-500-crores/

Igloo is the market leader and after Igloo, Polar is in the foray. There are some other popular ice cream brands in the
country. People usually prefer branded ice cream. 4 out of 5 consumers care highly about brands in their purchasing
decisions along with budget and quality. The key market players of the country are as follows:
Chocbar, Mini Choc, Mini Max, Robusto, Crunchy, Rocks, Shor

Malai, Bar, Pista Kulfi, Cornelli, Malai, Doi, Kheer, Googly,
Firni, Ripple, Nawabi Mithai Carnival
Supremo Bianco, Nano,

Royal Magnum, Lolly, U & Me, Mango, Biscotto, Perfetto,
Kheersa, Caramelo, Nolen Ripple, Hiney Almond, Classic
Gur, Butterscotch Vanilla
Scoop, Shor Malai, Mango,

Malai, Maria, Magic, Choc o
Papa, Lemon o Tung,
Conetastic, Exotic Vanilla
Market Shares of Ice Cream Companies

According to the available information in the market, Igloo is the market leader with 36% market share and Polar is
in the channel with 26% market share. Golden Harvest Ice Cream holds around 12% market share where Bellissimo
holds 13%, Kwality holds 11% and other firms hold 2% market share. The market shares based on available public
information are as follows:
Market Share of Ice Cream Brands
Others 2%
Kwality 11%
Bloop 12%
Bellissimo 13%
Polar 26%
Igloo 36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: EBLSL Research & Industry Player's Estimate
1.5 Tobacco Industry

Growing population along with large number of adult and young aged groups are accelerating the pace of growth
in tobacco industry
The country has a population of 164.67 million and is expected to grow by 1.04% per year. There are an estimated 1
billion smokers worldwide, consuming around 6.5 trillion cigarettes annually.
Approximately, 72% of the population of Bangladesh belongs to young and adult age group (age above 15 years).
Meanwhile, with the increase income and purchase power, more and more people are upgrading from their
traditional tobacco consumption, like bidi to Cigarettes.

The market for tobacco products can be classified based Age Distribution Structure
on age and gender of consumers. Currently, adult
39.73%
smoking counts for highest number of tobacco
27.76%
consumers while consumption of tobacco among the 19.36%
young age group growing. With over 43% of 115 million 6.93% 6.23%
adults in Bangladesh consuming various tobacco
products, the country has been one of the largest
0-14 years: 15-24 years: 25-54 years: 55-64 years: >65 years:
tobacco consuming countries in the world.
Source: CIA (US Central Intelligence Agency) World fact book
In Bangladesh, as on April 2014,
 Approximately 43.3% of adults (age 15+) in Bangladesh use tobacco products.
 Among youth between age group 13 to 15, 2% smoke cigarettes and 6% use tobacco products other than
cigarettes.-
 Smoking rates are much higher among men than women; an estimated 45% of men and 1.5 % of women
smoke.
 Rates of smokeless tobacco use are slightly higher among women than men (28% vs. 26%).
 Bidis, inexpensive hand-rolled cigarettes, account for 75% of the cigarettes sold in Bangladesh.
Cigarettes dominate among various forms of tobacco consumption
The consumption of tobacco products takes place in several forms, which includes: Cigarettes, Bidis, Chewing
tobacco (Loose leaf , Pellets, Plug, Twist), Cigars’ Blunts’ Cigarillos, Dokha, Roll-Your-Own cigars, Kreteks, Creamy
snuff, Dipping tobacco, Extra-long cut, Dissolvable tobacco, Tobacco gum etc. Gul, jarda, sadapata and khainy are
known as smokeless tobacco that largely consumed by the low income group of people. Smokeless tobacco includes
products that are chewed, sucked, dipped, held in the mouth, or inhaled. Bidis are more popular among the poor in
Bangladesh and account for 75% by volume of the cigarettes sold in the country.
Cigarettes is the major form of modern day tobacco consumption. Based on consumers’ preferences and income
group, the Cigarettes products can be divided into four categories in Bangladeshi tobacco market – Premium, High,
Medium and Low segment.
An oligopolistic market, where only four companies control the total market
The tobacco industry of Bangladesh is controlled by British American Tobacco (BATBC), Dhaka Tobacco (under Akij
Group), Abul Khair Tobacco and Nasir Tobacco. BATBC is the only multinational cigarette producing company having
the leadership position in the market while others are local conglomerate having diversified business presence in
the country. BATBC has active presence in all four categories of cigarettes in the market while Abul Khair Tobacco
Company goes for the medium and lower segments and Nasir Tobacco Industries competes only in the lower
segment. BATBC is specialized in producing cigarette only while other manufacturers also produces bidi.
Market Segmentation of Top Tobacco Brands

Premium High Medium Low
BATBC Benson & John Player Gold Leaf, Star, Scissors, Bristol, Pilot and Hollywood
Hedges Pall Mall and Capstan Starlight
Dhaka Tobacco Marlboro Castle Navy Legend White, Surma and Diamond, Red
& White, Gold Mine, Sheikh and K2
Abul Khair Tobacco n/a n/a Marise Rally and Sun Moon
Nasir Tobacco n/a n/a n/a Nasir Gold, Asia and Top 10
Industries

Tobacco price trend in Bangladesh Annual Average Retail Prices (BDT) of Tobacco Products in Dhaka
The price of tobacco leaf as well Tobacco leaf-Motihari Cigarette-Gold leaf Cigarette-Star
(King size filter tipped)
cigarette & other tobacco related
Unit/ Year KG Packet of 20 Packet of 10
products has been increased over the 2008-09 150.0 49.2 13.5
period due to increased tax and other 2009-10 157.0 58.0 15.0
duty as well as other factors. Over the 2010-11 153.3 68.3 18.5
year 2008 to 2016, nearly all the 2011-12 181.0 82.0 50.0
2012-13 288.3 98.7 57.1
tobacco related products increased up
2013-14 296.7 99.5 -
to thrice. 2014-15 378.2 114.6 54.6
2015-16 400.0 155.4 52.7
Source: Statistical Pocketbook of Bangladesh, BBS
1.6 Tea Industry

Tea is one of the most popular and preferred beverages around the world. Currently, more than 30 countries of the
world are producing tea where India, China, Sri Lanka, Indonesia and Bangladesh are in good positions. Though
Malinechera is the first commercial tea garden of Bangladesh which was established in Sylhet in 1857 but the history
of tea gardening in Bangladesh started in 1840 with the establishment of a tea garden in Chittagong Club. Bangladesh
is now one of the largest tea producing countries in the world having more than 172 commercial tea gardens and
some of them are world famous for quality tea production. The tea industry employs more than 4 million people as
labor force and produces 3% of the total tea produced in the world. Tea contributes 1% of the GDP of Bangladesh19.
Sylhet, Habigang, Maulavi Bazar, Chittagong and Panchagarh are famous for tea production.
According to Bangladesh Tea Board, tea production target was 70.68 million kg in 2017, where actual production
was 78.95 million kg. Bangladesh imports some value added tea from India, China & Kenya. On the other hand,
Bangladesh exports tea to China, Japan, Saudi Arabia, Pakistan, United Arab Emirates, United States of America,
Kuwait and some other countries. Local Consumption of Tea (in BDT billion)
The local consumptions of tea was BDT 13.74
12.96 12.76
13.74 billion in FY 2016-17 compared 11.09 11.64
10.07
to BDT 12.76 billion in FY 2015-16. The 8.48 8.96
local consumptions of tea have
experienced 7.14% CAGR since FY
2009-10. Average price of per KG tea
was BDT 189.89 in FY 2016-17
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
compared to BDT 190.40 in FY 2015-16.
Source: Bangladesh Tea Board & EBLSL Research
Moreover, Bangladesh export tea to
some countries including Japan, 4.79 Tea Export (in USD mn)
Kuwait, Saudi Arabia, Pakistan & USA. 4.19
In FY 2016-17, total revenue generated
2.81 2.87
from exporting tea was USD 4.19 2.57
2.05 2.16
million compared to USD 1.56 million in
1.56
FY 2015-16. The price of per KG ‘Value
Added Tea’ was USD 3.21 and per KG
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
‘Loose Tea’ was USD 1.70 in FY 2016-
Source: Bangladesh Tea Board & EBLSL Research
17.
19
https://www.tea.globaltradeconcern.com/

Top 3 tea brands in Bangladesh
According to Bangladesh Brand Forum, Ispahani
Mirzapore is the most preferred brand of tea by
Bangladeshi consumers. In 2017, the top three brands
of tea are on the chart.
M.M Ispahani Limited Unilever Bangladesh Abul Khair
In 2016, Finlay tea from The Consolidated Tea and Lands
Consumer Goods
Company (Bangladesh) was in 3rd position of the most Ltd
preferred tea brands in the country.
1.7 Drinks & Beverages
Bottled Water
Mum is the market leader in bottled water segment.
Moreover, Pran, Fresh, Jibon, Aquafina, Kinley,
Shanti, Acme, Muskan, Ifad & Spa are the popular
and available bottled water brands in Bangladesh.
Top three brands of bottled water of 2017 are on the
chart.
Partex Beverage Ltd Meghna Group of Industries Pran Foods
Health Food Drinks

Horlicks from GSK Bangladesh is the market leader in
this segment. Besides, Complan, Maltova, Tang, Foster
Clarks are very popular health drink brands in
Bangladesh. Top three brands of 2017 in this category
are on the chart.
GSK Bangladesh Transcom Beverage GSK Bangladesh
Juice
Pran Frooto is the flagship brand of Pran Foods which
is the market leader in Juice segment in Bangladesh.
Other popular brands in this category are Frutika,
Fazlee, Starship, Shezan, Nectar, Sajeeb, Danish and
others. The top there brands of 2017 of this segment
are on the chart.
Pran Foods Akij Food & Beverage Ltd Globe Soft Drinks Ltd
Carbonated Soft Drinks

In Bangladesh, Transcom Beverages, International Beverages Private Limited, Partex Beverages, Globe Beverage
Company, Pran RFL Group, Akij Food & Beverages, Globe Soft Drinks Limited and AM Beverage Limited are engaged
in the business of carbonated soft drinks. The popular brands of soft drinks are Pepsi, 7up, Cocacola, Sprite, Mirinda,
Mountain Dew, RC Cola, Lemon, Virgin, Zam Zam Cola, Pran Up, Pran Cola, Maxx Cola, Moju, Clemon, Speed, URO
Cola, URO Lemon, FizzUp, Royal Tiger Energy Drinks and others. 7up is the most preferred brand in Bangladesh. The
top three preferred brands of carbonated soft drinks in Bangladesh is as follows:
Transcom Beverage The Coca Cola Company The Coca Cola Company

1.8 Food Ingredients & Snacks
Atta, Maida, Suzi
Fresh is the market leader in this segment. The other
key market players are Fresh (Meghna Group), Teer
(City Group), Pusti (TK Group), ACI Pure (ACI), Sajeeb
(Sajeeb Group), Ifad (Ifad Group), Fouzi (Sena Kalyan
Sangstha) and other local brands. The top three brands
of 2017 in this segment are on the chart. TK Group of Industries
Meghna Group City Group
Salt
Salt Industry is the largest labor oriented cottage industry
in Bangladesh. In 2017, 1.4 million tonnes of salt was
produced in Bangladesh against the annual demand of 1.6
million tonnes20. Salt is produced from sea water by solar
and lixiviation process (separating soluble from insoluble
sunstances) in the seaside areas of the districts of ACI Limited Meghna Group Molla Group
Chittagong, Cox’s Bazar, Noakhali, Barishal, Khulna and
adjoining off shore islands. Cox’s Bazar produces 95% of the total production of salt in the country. The key brands
of the salt market are ACI Pure Salt, Molla Super Salt, Fresh Super Salt, Confidence Salt and others. The top three
brands in this segment of 2017 are on the diagram.
Spice
As an agriculture-based country, Bangladesh produces different spices. The market of processed spices are growing
by 15% to 20%. The estimated market size of packed spices (which has replaced fresh spices) is around BDT 9 billion
to 12 billion21. The branded spices are getting popular by branding efforts of the respective companies. The spices
of Bangladesh are now exporting to some countries
especially in Middle East, Malaysia and Australia. Radhuni,
Pran, BD, Arku are the key players in the market. Radhuni
has approximately 66% market share, Pran holds 19%
market share, BD Food Holds 7% market share, Arku holds
3% market share and other brands hold 5% market share. Square Food & Beverage Pran Foods BD Foods
The top three brands of 2017 in this segment are on the
chart.
Edible Oil
In Bangladesh, per capita edible oil consumption is Per Capita Edible Oil Consumption (in KG)
9.9 kg compared to 15 kg in India and 16.1 kg in 61
50
Pakistan22. Edible oil consumption in Bangladesh is
far below from the world average which suggests 25 25.2
9.9 15 16.1
significant considerable growth potential for the
edible oil industry.
Bangladesh India Pakistan China World USA EU
The growth of trademarked edible oils is anticipated
to persist favorable with the support of the growth of
the retail sector and increasing income levels.
Every year Bangladesh imports more than 2 million
tonnes of edible oil which costs around USD 1.5
Bangladesh Edible Oil Ltd Meghna Group City Group
20
https://thefinancialexpress.com.bd/economy/bangladesh-produces-14m-tonnes-salts-this-year-1503209483
21
http://www.thepages.com.bd/2017/03/17/spice-industry-great-opportunity-market-bangladesh-anika-fowzia/
22
http://bida.portal.gov.bd/sites/default/files/files/bida.portal.gov.bd/page/f40752f4_ccac_45d4_9bc4_3367eb475e8a/ValueProposition_EdibleOil.pdf

billion23. Bangladesh usually imports around 80% of the total demand of edible oil in the country 24. The top three
brands of 2017 in this segment is on the diagram.
Sugar
The sugar industry of Bangladesh is highly
Sugar Production (in 000' MT)
dependent on imports. Bangladesh imports 95% of
140
its annual demand for the sweetener by importing 115 125
110
from Brazil and Argentina25. Currently, there is a
140
110
75 85
local demand for 50 to 60 thousand tonnes of sugar 65 65
80
per month26. 50
In 2017, total production of sugar was 125 2010 2011 2012 2013 2014 2015 2016 2017
thousand MT compared to 65 thousand MT a year Source: Index Mundi & EBLSL Research
earlier. The production of sugar fluctuates highly
with the availability of raw materials that is sugar Import of Sugar (in 000' MT)
cane. 2,283
2,085 1,982 2,097
In 2017, Bangladesh imported 2,097,000 MT sugar 1,700
compared to 2,283,000 MT in 2016. The import of 1,537 1,547
1,361
sugar has increased since 2010 when the import
was 1,361,000 MT.
2010 2011 2012 2013 2014 2015 2016 2017
Source: Index Mundi & EBLSL Research

The top three preferred brands of 2017 in this
segment is as follows:
Meghna Group ACI Limited City Group
Noodles
According to Euromonitor International the market value of the
overall packaged food industry is around USD 21.2 billion. The
Noodles and Pasta segment experienced a CAGR of 17% since
2013. The top players are Maggi (Nestle Bangladesh), Cocola
(Cocola Food Products Ltd), Mr. Noodles (Pran), Doodles (New
Nestle Bangladesh Cocola Food Pran Foods
Zealand Dairy), Ifad (Ifad Foods), Sajeeb (Sajeeb Group), Mama
(Presidents Foods), Knorr (Unilever), Chopstick (Square Foods) and others. The top three brands of 2017 in this
segment are on the chart.
23
http://www.observerbd.com/2015/12/13/125763.php
24
http://www.thedailystar.net/news-detail-173242
25
http://www.thedailystar.net/business/city-group-deshbandhu-get-nod-export-sugar-1471171
26
http://www.bizbangladesh.com/business-news-1914.php

2. Beauty & Personal Care Industry
The cosmetics and toiletries industry is mainly dominated by the international brands where quality issue surpasses
the pricing of products amidst the factors influencing
the buying decisions. Local manufacturers produce Cosmetics Imports Concentration
14.0%
lower priced toiletries and perfumes under their own
brands focusing middle to low price market niche. Local 3.2%
firms facing difficulties to compete with multinational 4.2%
41.0%
brands due to trade liberalization. 7 firms control 5.9%
around 95% of the total market which are Unilever, Keya
Cosmetics, Lily Cosmetics, Marks & Allys, Aromatic
7.7%
Cosmetics, Square Toiletries and Kohinoor Chemical 24.0%
Company (Source: Japan Bangladesh Business Centre).
The cosmetics industry is highly import oriented. 90% of India Singapore Uganda Thailand China UAE Others
the cosmetic chemicals are imported from different Source: UN COMPTRADE & EBLSL Research
countries. Bangladesh usually import from India,
Singapore, Uganda, Thailand and China. Bangladesh imports 41% of total imported cosmetic goods from India27.
2.1 Toilet Soap

The key players in this segment is Unilever which holds around 43% market share. Besides, Keya Cosmetics, Lily
Cosmetics and Kohinoor Chemical Company hold
10% market share each. The most popular brands
are Lux, Lifebuoy, Sandalina, Meril, Keya, Aromatic,
Lily, Tibet, Camelia, Dettol, Savlon, Dove, Ice Cool,
Unilever Bangladesh Unilever Bangladesh Kohinoor Chemical Company
Cosco and others. The top three brands of 2017 are Ltd
on the diagram.
2.2 Fairness Cream & Lotion

Unilever Bangladesh is the market leader in this segment. Furthermore, the most available brands are Himalaya,
Garnier, Lotus, Olay, White Pearl, Clean &
Clean, Vivel, Nivea, Enami Fair &
Handsome, White & Spa, Loius and others.
The top three preferred brands of 2017 was
from Unilever Bangladesh Limited. They are
Fair & Lovely Advanced Multivitamin,
POND’S and Fair & Lovely Men Max Unilever Bangladesh Unilever Bangladesh Unilever Bangladesh
Fairness.
2.3 Oral Care

There are many brands of toothpaste that are available in Bangladesh. Some brands are produced locally and some
of them are imported from different
countries. The popular toothpaste brands are
Close Up, Pepsodent, White Plus, Mediplus
DS, Keya Active, am pm, Meril, Cute Smokers,
Fresh gel, Everyday Super Mint, Dabur Unilever Bangladesh Unilever Bangladesh Anfords Bangladesh Ltd
Meswak, Sensodyne and Colgate. The top
three brands of 2017 are on the diagram.
27
https://tradingeconomics.com/bangladesh/imports/essential-oils-perfumes-cosmetics-toileteries

2.4 Shampoo
Available and popular brands of Shampoo in Bangladesh are Sunsilk, Dove, Clear, Revive, Select Plus, Head &
Shoulders, Vatika, Dabur Amla, L’OREAL and Kumarika. The top three brands of shampoo of 2017 are as follow:
Unilever Bangladesh Unilever Bangladesh Unilever Bangladesh
2.5 Hair Oil

Hair oil market is divided in some sub categories. They are Coconut based oil, Amla based oil, Light Hair oil, Cooling
oils and others special purpose oils. From the Indian market of hair oil, we can get a holistic scenario of hair oil
market in South Asian countries including Bangladesh. Coconut based oils hold 46% market share of the total hair
oil market where Light hair oil holds 16%, Amla based oil holds 15% and cooling oil holds 11% market share (Source:
Value Research Stock Advisor). Moreover, the global coconut based oils industry is expected to grow at 11% in
coming years28. The market of coconut oil
is huge in Asia pacific region compared to
Europe or North American countries.
In Bangladesh, the most popular brands
are Parachute, Jui, Kumarika, Dabur Amla,
Marico Bangladesh Ltd Square Toiletries Ltd Hemas Manufacturing Ltd
Bajaj Almond Drops, Emami Oils, Dabur
Vatika, Jojoba Oil, Castor Oil, Nihar Amla, Tibet and others. The top three brands of 2017 in this category are on the
chart.
3. Household Care Industry & Miscellaneous

According to Euromonitor International, the global home care industry witnessed 5% growth in 2016 and reached
at USD 143 billion. Home care industry in Asia pacific region experienced 5.70% YoY growth in FY 2016-17. Online
shopping is a major catalyst which driving the home care industry worldwide. Tissue & Hygiene products noted 205%
CAGR and Home Care products recorded 142% CAGR since 2012 to 2016 which traded through internet retailing29.
3.1 Laundry Detergent

Most popular and available brands of laundry detergent in Bangladesh are Wheel, Rin Power White, Surf Excel,
Jasmin, Mr. White, Smart, Ray, Fast Wash, Jet, Tibet, Rocket, Chaka, Keya, Ghari, Tide and others. The top three
preferred brands of 2017 in this category are on the chart.
Unilever Bangladesh Unilever Bangladesh Unilever Bangladesh
28
https://www.researchnester.com/reports/virgin-coconut-oil-market-global-demand-analysis-opportunity-outlook-2023/253
29
https://blog.euromonitor.com/2017/06/top-trends-home-care-2017.html

3.2 Toilet Cleaner
Popular brands of toilet cleaner in
Bangladesh are Harpic, Clean Master,
Shakti, Lysol, Swift, Vanish, Tixol,
White, Harpoon, Finpic and Ozol. The
top three brand in this category are on
the chart. Reckitt Benckiser Bangladesh Kohinoor Chemical Company Square Toiletries Ltd
3.3 Mosquito Aerosol

Most popular mosquito aerosol brands are Xpel (Square Toiletries), ACI Mosquito Aerosol Spray (ACI), Hit (Godrej)
and Mortein (Reckitt Benckiser). Xpel is the market leader in this segment.
3.4 Liquid Antiseptic

Savlon is the market leader in this sub category
and one of the most preferred brands of 2017.
Then Dettol holds the second position in this
sector. Other available brands available in
Bangladesh are Lizol, Zici, Midas, Suthol,
Lifebuoy (hand wash), Shinex and Bionil. The
top two brands of 2017 are on the diagram. ACI Limited Reckitt Benckiser Bangladesh Ltd
3.5 Plastic Goods

In Bangladesh, there are 3,000 small,
medium and large plastic goods
manufacturing firms which has directly or
indirectly employed 1 million workforce30.
The plastic industry of Bangladesh has
RFL Plastics Limited Bengal Plastic Partex Plastics Limited
been growing at around 20% a year.
According to Bangladesh Plastic Goods Manufacturers & Export Association, the domestic market size of plastic
goods is BDT 250 billion in FY 2017-18. The average Plastic consumption in Bangladesh is about 2 kg per person
compared to 6 kg in India and 10 kg in Southeast Asia31. Currently Bangladesh produces 142 items and exports to
USA, Canada, China, India, Nepal and Europe. The global plastic market size is around USD 546 billion where
Bangladesh’s market share is only 0.6% (Source: Daily Star, March 2018). The top three brands of 2017 in this sector
are as follow:
30
http://bpgmea.org.bd/v2/index.php/bpgmea
31
http://www.thedailystar.net:8080/business/plastic-industry-shows-promise-demand-rises-1550146

Supply Chain Management of Consumer Goods
In Bangladesh, most of the consumer goods are distributed through Wholesaler Channel and Retailer Channel.
Products like laundry detergent, toilet soap, fairness cream, toothpastes, shampoo, hair oil, spice, salt, edible oil are
distributed through Wholesaler Channel. In Retailer channel, ice creams, beverages are distributed. In agent channel,
agents or brokers help to distribute goods to the wholesalers and retailers. Products such as footwear, refrigerator,
plastic goods, paints, cement, and tiles are distributed through this process.
Manufacturer Retailer Consumer
Retailer Channel
Manufacturer Wholesaler Retailer Consumer
Wholesaler Channel
Capital Market Performance

FMCG Companies that are traded in DSE & CSE are mainly from Food & Allied Sector as well as Pharmaceuticals &
Chemicals Sector. The FMCG companies are- Agricultural Marketing Company Limited (PRAN), Apex Foods Limited
(APEXFOODS), Bangas Limited (BANGAS), British American Tobacco Bangladesh Company Limited (BATBC), Fine
Foods Limited (FINEFOODS), Fu Wang Food Limited (FUWANGFOOD), Golden Harvest Agro Industries Limited
(GHAIL), National Tea Company Limited (NTC), Olympic Industries Limited (OLYMPIC), Rangpur Dairy & Food
Products Limited (RDFOOD), Rangpur Foundry Limited (RANFOUNDRY), ACI Limited (ACI), GlaxoSmithKline
Bangladesh Limited (GLAXOSMITH), Kohinoor Chemicals Company Limited (KOHINOOR), Reckitt Benckiser
Bangladesh Ltd (RECKITTBEN) and others. Some selected stocks (blue chips) have been discussed in this segment.
Shareholding Structure
The shareholding structures (as on 31 May 2018) of some selected companies are as follows:
Tickers Sponsor/Director Govt. Institute Foreign Public

ACI 45.48% 0.00% 28.62% 0.00% 25.90%
GLAXOSMITH 81.98% 0.00% 15.95% 0.91% 1.16%
KOHINOOR 48.72% 0.00% 14.10% 0.04% 37.14%
MARICO 90.00% 0.00% 2.74% 6.53% 0.73%
RECKITTBEN 82.96% 3.77% 5.97% 2.70% 4.60%
AMCL(PRAN) 40.15% 0.00% 13.17% 0.00% 46.68%
GHAIL 33.03% 0.00% 44.56% 0.00% 22.41%
OLYMPIC 27.77% 0.00% 13.03% 44.35% 14.85%
NTC 50.72% 4.33% 9.37% 0.00% 35.58%
BATBC 72.91% 0.64% 10.51% 15.21% 0.73%

Comparative Position in the Capital Market
ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN

Current Price 344.2 1,441.3 424.2 1,158.4 1,785.5
52 Week Range 329.9-638.4 1400.0- 365.0-482.0 1000.0- 1470.2-2280.0
Market Cap. (in BDT mn) 16,590.4 1700.10
17,361.9 5,945.6 1293.7
36,489.6 8,436.5
Paid Up Capital (in BDT mn) 482.0 120.5 140.2 315.0 47.3
No. of Shares (in mn) 48.2 12.0 14.0 31.5 4.7
Free Float (in mn) 26.8 2.2 7.2 3.2 0.8
Market Weight 0.43% 0.45% 0.16% 0.95% 0.22%
Current PE 28.8 31.4 41.5 22.2 60.8
1 Year Avg. Turnover ( In BDT 39.97 1.12 3.27 2.43 2.15
million)
1 Year Average Volume 81,195 735 7,785 2,139 1,154
1 Year Return -33.41% -1.97% 5.68% 12.96% 18.72%
AMCL(PRAN) GHAIL OLYMPIC NTC BATBC

Current Price 230.0 38.2 231.1 637.0 3,455.0
52 Week Range 205.1-246.9 35.0-49.5 228.0-296.0 561.0-690.7 2750.0-3838.0
Market Cap. (in BDT mn) 1,840.0 4,164.1 46,205.9 4,204.2 207,300.0
Paid Up Capital (in BDT mn) 80.0 1,090.1 1,999.4 66.0 600.0
No. of Shares (in mn) 8.0 109.0 199.9 6.6 60.0
Free Float (in mn) 4.8 73.0 144.4 3.3 16.3
Market Weight 0.05% 0.11% 1.21% 0.11% 5.41%
Current PE 28.2 23.1 25.8 51.4 18.9
1 Year Avg. Turnover ( In BDT 5.15 33.09 22.43 9.02 6.99
million)
1 Year Average Volume 22,946 756,742 81,254 14,430 2,127
1 Year Return 4.28% -11.37% -14.47% 5.79% 26.49%
Dividend History
2013 2014 2015 2016 2017

ACI 20%B 100%C/15%B - 115%C/10%B* 115%C/10%B
GLAXOSMITH 300%C 420%C 550%C 500%C 550%C
KOHINOOR 25%B 25%B 30%C 10%C/20%B 15%C/15%B
MARICO 150%C 900%C 425%C 450%C 500%C
RECKITTBEN 400%C 550%C 650%C 775%C -
AMCL(PRAN) - - 32%C 32%C 32%C
GHAIL 10%C/5%B 10%C 10%B 10%B 10%B
OLYMPIC 10%C/50%B 20%C/35%B 30%C/20%B 40%C/5%B 45%C
NTC - 20%C - 30%C* 18%C
BATBC 620%C 550%C 550%C 600%C 600%C

Rebased Performance of FMCG Companies & DSEX
Rebased Performance with DSEX
300
250
200
150
100
50
14-Jul-14 14-Jan-15 14-Jul-15 14-Jan-16 14-Jul-16 14-Jan-17 14-Jul-17 14-Jan-18
DSEX ACI AMCL(PRAN) BATBC GHAIL GLAXOSMITH
Rebased Performance with DSEX (Cont'd)

260
180
100
20
14-Jul-14 14-Nov-14 14-Mar-15 14-Jul-15 14-Nov-15 14-Mar-16 14-Jul-16 14-Nov-16 14-Mar-17 14-Jul-17 14-Nov-17 14-Mar-18
DSEX KOHINOOR MARICO NTC OLYMPIC RECKITTBEN

STATEMENT OF COMPREHENSIVE INCOME
(In BDT Million)
2016-17 2017 2016-17 2016-17 2016

BDT Million
Gross Turnover 47,668.03 6,796.56 3,393.19 6,916.11 3,326.62
Value Added Tax - - - - -
Net Turnover 47,668.03 6,796.56 3,393.19 6,916.11 3,326.62
Cost of Goods Sold 33,563.74 4,161.05 2,784.39 3,710.29 1,548.20
Gross Profit 14,104.28 2,635.51 608.79 3,205.82 1,778.42
Other Operating Income/Loss 82.48 26.18 - (8.77) -
Total Operating Income 14,186.76 2,661.69 608.79 3,197.05 1,778.42
Operating Expenses 10,901.74 1,776.79 400.25 1,338.60 1,306.70
Selling/Distribution Expense 10,901.74 1,330.68 345.36 537.61 1,306.70
Administrative Expense - 446.12 54.88 800.98 -
Profit from Operations 3,285.02 884.89 208.55 1,858.45 471.71
Financial Expense 1,457.82 - 7.76 - -
Financial Income - 62.71 - 68.52 9.56
Non-operating Income 403.90 - 7.85 - -
Non-operating Loss - - 2.38 - -
Share of Profit from Associates 143.91 - - - -
Profit Before WPPF 2,375.01 947.60 206.26 1,926.97 481.28
Contribution to WPPF 186.02 - 9.82 - 22.92
Profit Before Tax 2,188.99 947.60 196.44 1,926.97 458.36
Current Tax 1,166.43 278.30 50.57 486.77 162.27
Deferred Tax 13.39 - (0.93) - -
Net Profit After Tax 1,035.95 669.30 146.80 1,440.19 296.09
Non-Controlling Interest (29.21)
Total Comprehensive Income 1,065.16 669.30 146.80 1,440.19 301.37
Number of Shares 43.82 12.05 12.19 31.50 4.73
EPS (in BDT) 24.31 55.56 12.04 45.72 62.66

STATEMENT OF COMPREHENSIVE INCOME (CONT’D)
(In BDT Million)
2016-17 2016-17 2016-17 2016-17 2017
BDT Million
Gross Turnover 2,380.34 1,526.71 11,290.56 985.67 165,633.76
Value Added Tax - - - - 121,879.99
Net Turnover 2,380.34 1,526.71 11,290.56 985.67 43,753.78
Cost of Goods Sold 1,925.53 829.11 7,523.12 688.66 23,890.90
Gross Profit 454.80 697.60 3,767.44 297.01 19,862.88
Other Operating Income/Loss - 41.11 - - -
Total Operating Income 454.80 738.71 3,767.44 297.01 19,862.88
Operating Expenses 261.43 227.02 1,614.31 192.62 5,936.15
Selling/Distribution Expense 116.64 166.10 1,322.22 34.17 5,936.15
Administrative Expense 144.79 60.92 292.09 158.44 -
Profit from Operations 193.38 511.69 2,153.13 104.39 17,802.42
Financial Expense 119.43 262.42 118.23 34.08 185.29
Financial Income - 1.23 - - -
Non-operating Income 2.37 - 299.19 10.42 24.47
Non-operating Loss - - - - -
Share of Profit from Associates - - - - -
Profit Before WPPF 76.32 250.51 2,334.08 80.73 17,641.60
Contribution to WPPF 3.63 12.27 111.14 - 882.08
Profit Before Tax 72.68 238.23 2,222.94 80.73 16,759.52
Current Tax 20.40 52.89 565.60 5.98 8,121.47
Deferred Tax 2.65 - 13.94 4.65 808.20
Net Profit After Tax 54.94 185.34 1,643.41 79.40 7,829.86
Non-Controlling Interest - 1.71 - - -
Total Comprehensive Income 54.94 187.05 1,643.41 79.40 7,829.86
Number of Shares 8.00 99.10 199.94 6.60 60.00
EPS (in BDT) 6.87 1.89 8.22 12.03 130.50

STATEMENT OF FINANCIAL POSITION
(In BDT Million)
2016-17 2017 2016-17 2016-17 2016
BDT Million ACI GLAXOSMITH KOHINOOR MARICO RECKITTBEN
Non-Current Assets: 20,653.61 778.32 467.54 730.99 285.09
Property, Plant and Equipment 18,984.70 694.25 312.85 593.54 258.76
Capital Work-in-Progress - - - - -
Intangible Assets, net 85.91 51.64 7.14 9.12 -
Investment in Marketable Securities 1,067.89 - 147.54 10.37 -
Investment in Associates/Subsidiary - - - - -
Other Non-Current Assets 515.12 32.43 - 76.76 26.33
Current Assets: 26,316.41 5,465.49 1,063.27 3,021.12 1,156.70
Inventories 10,550.94 920.53 478.09 1,348.93 295.73
Trade Debtors 8,530.05 1,014.51 2.17 - 16.41
Other Debtor 912.54 4.03 - - -
Advance & Deposits 4,797.85 - 315.98 193.92 75.16
Investment in FDR - - 28.68 - -
Cash and Cash Equivalents 1,511.75 3,526.42 234.47 166.83 769.39
TOTAL ASSETS 46,970.02 6,243.82 1,530.81 3,752.10 1,441.79
Shareholders' Equity: 10,639.06 2,630.35 554.07 1,580.11 236.36
Share Capital 438.2 120.47 121.88 315.00 47.25
Share Premium 402.31 - - 252.00 -
General Reserve 4,579.91 5.00 - - -
Revaluation Reserve - 59.48 7.14 - -
Retained Earnings 5,153.14 2,445.24 425.05 1,013.11 189.11
Non-Controlling Interest 65.5
Non-Current Liabilities: 6,663.79 20.24 371.89 44.30 74.46
Long Term Loans - Secured 5,151.45 - 326.09 - -
Net defined benefit plans 788.03
Other Loan -
Deferred Tax Liability 724.31 17.13 29.02 - -
Current Liabilities: 29,667.17 3,593.23 604.85 2,127.70 1,130.97
Operational Overdraft 1,696.74
Short Term Bank Loans 19,675.65 - 30.89 - -
Long Term Loans - Current Portion -
Trade Creditors 2,352.03 3,471.32 404.74 1,740.56 1,022.88
Other Creditors 3,325.12
Current Tax Liabilities 2,617.63 118.62 - 381.92 105.50
Accrued Expenses - - 155.49 - -
Provision for WPPF - - - - 2.59
Unclaimed Dividend - - 13.73 - -
Other Debts - 3.29 - 5.22 -
Total Shareholders’ Equity & Liability 46,970.02 6,243.82 1,530.81 3,752.10 1,441.79
NAVPS 242.79 218.35 45.46 50.16 50.02

STATEMENT OF FINANCIAL POSITION CONT’D
(In BDT Million)
2016-17 2016-17 2016-17 2016-17 2017
BDT Million AMCL(PRAN) GHAIL OLYMPIC NTC BATBC
Non-Current Assets: 474.19 2,371.21 2,363.83 1,730.82 20,915.16
Property, Plant and Equipment 474.19 1,051.27 1,907.12 1,641.79 20,915.16
Capital Work-in-Progress - 488.91 450.26 37.58 -
Intangible Assets, net - 55.15 6.45 - -
Investment in Marketable Securities - - - - -
Investment in Subsidiary - 758.35 - - -
Other Non-Current Assets - 17.52 - 49.44 -
Current Assets: 988.83 1,569.75 6,756.49 402.13 25,499.35
Inventories 547.97 183.54 889.66 211.34 17,469.09
Trade Debtors 140.56 1,091.57 163.38 43.94 2,315.46
Other Debtor - - - 0.92 -
Advance & Deposits 236.57 281.21 1,360.61 37.63 4,736.63
Investment in FDR - - 4,095.49 - -
Cash and Cash Equivalents 63.72 13.43 247.35 59.54 978.17
TOTAL ASSETS 1,463.02 3,940.95 9,120.32 2,132.95 46,414.51
Shareholders' Equity: 573.79 2,199.51 5,412.85 943.71 23,112.44
Share Capital 80 990.99 1,999.39 66 600.00
Share Premium 40 236.78 - - -
General Reserve - - - - 64.9
Revaluation Reserve 15.66 278.35 - 860.11 -
Retained Earnings 438.13 693.4 3,413.46 17.6 22,447.54
Non-Controlling Interest - - - - -
Non-Current Liabilities: 163.4 737.05 298.82 596.37 3,704.68
Long Term Loans - Secured 148.83 641.14 176.15 239.17 -
Net Defined Benefit Plans - - - - 869.11
Other Loan - 1.86 14.97 0.25 -
Deferred Tax Liability 14.58 94.04 107.7 39.27 2,835.57
Current Liabilities: 725.83 1,004.39 3,408.64 592.87 19,597.39
Operational Overdraft - - - - 3,057.91
Short Term Bank Loans 609.19 757.99 846.44 460.04 -
Long term loans- current portion 27.86 101.22 144.8 - -
Trade Creditors 1.98 30.86 529.2 108.34 10,101.62
Other Creditors - - 15.78 - -
Current Tax Liabilities 34.91 - 1,138.14 - 5,364.70
Accrued Expenses 8.41 113.09 58.9 - 1,073.16
Provision for WPPF 4.37 - 352.48 - -
Unclaimed Dividend 5.98 - 111.63 18.94 -
Other Debts 28.03 1.23 25.41 5.55 -
Total Shareholders’ Equity & Liability 1,463.02 3,940.95 9,120.32 2,132.95 46,414.51
NAVPS 71.72 22.20 27.07 142.99 385.21

RATIO ANALYSIS
2016-17 2017 2016-17 2016-17 2016

Liquidity Ratios
Current Ratio 0.89 1.52 1.76 1.42 1.02
Quick Ratio 0.53 1.26 0.97 0.79 0.76
Cash Ratio 0.05 0.98 0.39 0.08 0.68
Operating Efficiency Ratios
Inventory Turnover Ratio 5.03 7.97 5.45 5.30 11.50
Receivable Turnover Ratio 6.61 6.88 716.22 - 237.52
Average Collection Period (Days) 54.49 52.34 0.50 - 1.52
Inventory Conversion Period(Days) 71.57 45.19 66.06 67.96 31.32
Operating Cycle (Days) 126.06 97.53 66.56 - 32.83
A/C Payable Turnover Ratio 16.52 1.35 6.40 2.42 1.85
Payables Payment Period (Days) 21.79 266.46 56.24 148.67 194.85
Cash Conversion Cycle (Days) 104.27 (168.93) 10.33 - (162.02)
Total Asset Turnover 114.81% 117.32% 209.52% 190.54% 273.37%
Fixed Asset Turnover 284.49% 973.64% 1067.36% 1163.06% 1551.88%
Operating Profitability Ratios
Gross Profit Margin (GPM) 29.59% 38.78% 17.94% 46.35% 53.46%
Operating Profit Margin (OPM) 6.89% 13.02% 6.15% 26.87% 14.18%
Pre Tax Profit Margin 4.59% 13.94% 5.79% 27.86% 13.78%
Net Profit Margin (NPM) 2.17% 9.85% 4.33% 20.82% 8.90%
Return on Total Assets (ROA) 2.50% 11.55% 9.06% 39.68% 24.33%
Return on Equity (ROE) 10.11% 25.66% 30.22% 87.58% 134.04%
Leverage Ratios
Total Debt to Equity 249.31% 0.00% 64.43% 0.00% 0.00%
Debt to Total Assets 56.47% 0.00% 23.32% 0.00% 0.00%
Times Interest Earned (TIE) 2.25 - 26.88 - -
Growth Rates
EPS Growth Rate -50.81% 3.84% 23.05% 1.85% 6.69%
Dividend Growth Rate 0.00% -9.09% 50.00% 11.11% 19.23%
Sales Growth Rate 45.22% 8.16% 13.25% -2.12% 15.33%
Gross Profit Growth Rate 36.46% 7.57% 13.17% 0.78% 18.83%
EBIT Growth Rate 35.08% 12.47% 9.04% 2.70% 16.47%
Net Income Growth Rate -49.98% 3.84% 23.05% 1.85% 6.69%
Dividend Payout Ratio 103.29% -12.45% 21.90% 9.09% 11.75%
Retention Rate -31.33% -458.23% -2.49% 3736.89% 121.89%
Total Asset Growth Rate 30.22% 16.86% -10.39% 6.98% 45.35%
Valuation Ratios
P/B (price to book) Ratio 2.13 6.81 9.19 20.37 30.09
Book Value Per Share 242.79 218.35 45.46 50.16 50.02
EPS 24.31 55.56 12.04 45.72 62.66
Dividend per Share 11.50 50.00 1.50 50.00 77.50
Dividend Payout Ratio 0.47 89.99% 12.45% 109.36% 123.68%

Retention Rate 0.53 10.01% 87.55% -9.36% -23.68%
P/E Ratio 21.25 27.91 34.67 22.35 24.02
EV/EBITDA 14.52 16.25 24.99 17.23 13.45
EV/Sales 1.00 2.12 1.54 4.63 1.91
Price/Sales 0.47 2.64 1.50 4.65 2.14
Tobin's q 2.13 6.81 9.19 20.37 30.09
Sales/ Share 1,087.80 564.19 278.42 219.56 704.05
Other Data
Stock price- Period End 516.50 1550.80 417.60 1,021.70 1,505.10
Number of shares (mn) 44 12 12 32 5
Market Cap (BDT mn) 22,633 18,682 5,090 32,184 7,112
EBITDA (BDT mn) 3,285 885 209 1,858 472
EV (BDT mn) 47,711 15,155 5,212 32,017 6,342
DUPONT ANALYSIS
Net Profit AT/Sales 2.17% 9.85% 4.33% 20.82% 8.90%
Sales/Total Assets 114.81% 117.32% 209.52% 190.54% 273.37%
ROA 2.50% 11.55% 9.06% 39.68% 24.33%
Net Profit AT/Total Assets 2.50% 11.55% 9.06% 39.68% 24.33%
Total Assets/Stockholder’s Equity 4.05 2.22 3.33 2.21 5.51
ROE 10.11% 25.66% 30.22% 87.58% 134.04%
Extended DUPONT ANALYSIS
Net Profit/Pretax Profit 47.33% 70.63% 74.73% 74.74% 64.60%
Pretax Profit/EBIT 66.64% 107.09% 94.19% 103.69% 97.17%
EBIT/Sales 6.89% 13.02% 6.15% 26.87% 14.18%
Sales/Assets 114.81% 117.32% 209.52% 190.54% 273.37%
Assets/Equity 4.05 2.22 3.33 2.21 5.51
ROE 10.11% 25.66% 30.22% 87.58% 134.04%

RATIO ANALYSIS
2016-17 2016-17 2016-17 2016-17 2017

Liquidity Ratios
Current Ratio 1.36 1.56 1.98 0.68 1.30
Quick Ratio 0.61 1.38 1.72 0.32 0.41
Cash Ratio 0.09 0.01 0.07 0.10 0.05
Operating Efficiency Ratios
Inventory Turnover Ratio 4.26 10.00 15.35 4.62 3.30
Receivable Turnover Ratio 18.39 2.00 67.67 18.44 30.77
Average Collection Period (Days) 19.57 179.62 5.32 19.52 11.70
Inventory Conversion Period(Days) 84.54 35.98 23.45 77.94 108.94
Operating Cycle (Days) 104.11 215.60 28.77 97.45 120.64
A/C Payable Turnover Ratio 834.35 22.03 13.58 4.64 2.97
Payables Payment Period (Days) 0.43 16.34 26.51 77.64 121.32
Cash Conversion Cycle (Days) 103.68 199.27 2.26 19.81 (0.69)
Total Asset Turnover 162.91% 43.58% 134.72% 46.88% 127.11%
Fixed Asset Turnover 467.27% 154.88% 631.02% 62.01% 286.09%
Operating Profitability Ratios
Gross Profit Margin (GPM) 19.11% 45.69% 33.37% 30.13% 47.69%
Operating Profit Margin (OPM) 8.12% 33.52% 19.07% 10.59% 34.26%
Pre Tax Profit Margin 3.05% 15.60% 19.69% 8.19% 32.25%
Net Profit Margin (NPM) 2.31% 12.14% 14.56% 8.06% 15.07%
Return on Total Assets (ROA) 3.76% 5.29% 19.61% 3.78% 19.15%
Return on Equity (ROE) 9.83% 8.80% 33.05% 8.61% 37.29%
Leverage Ratios
Total Debt to Equity 136.96% 68.21% 21.57% 74.09% 13.23%
Debt to Total Assets 53.72% 38.07% 12.80% 32.78% 6.59%
Times Interest Earned (TIE) 1.62 1.95 18.21 3.06 96.08
Growth Rates
EPS Growth Rate 3.66% 4.63% 1.04% -40.05% 3.26%
Dividend Growth Rate 0.00% - 12.50% - 9.09%
Sales Growth Rate 13.81% 6.94% 2.97% 2.75% 18.76%
Gross Profit Growth Rate 11.96% 6.58% 2.08% -12.91% 24.77%
EBIT Growth Rate 1.62% 6.15% 1.73% -36.00% 27.83%
Net Income Growth Rate 3.66% 5.58% 1.17% -40.05% 3.26%
Dividend Payout Ratio -3.53% - 11.34% - 5.64%
Retention Rate 3.30% 0.00% -10.97% -14.96% -4.35%
Total Asset Growth Rate 0.26% 28.58% 19.36% 2.93% 31.31%
Valuation Ratios
P/B (price to book) Ratio 3.02 2.07 10.29 4.06 8.83
Book Value Per Share 71.72 22.20 27.07 142.99 385.21
EPS 6.87 1.89 8.22 12.03 130.50
Dividend per Share 3.20 - 4.50 1.80 60.00
Dividend Payout Ratio 46.60% 0.00% 54.75% 14.96% 45.98%
Retention Rate 53.40% 100.00% 45.25% 85.04% 54.02%

P/E Ratio 31.53 24.37 33.88 48.28 26.07
EV/EBITDA 12.69 11.82 26.30 42.85 11.58
EV/Sales 1.03 3.96 5.01 4.54 3.97
Price/Sales 0.73 2.99 4.93 3.89 3.93
Tobin's q 3.02 2.07 10.29 4.06 8.83
Sales/ Share 297.54 15.41 56.47 149.34 866.06
Other Data
Stock price- Period End 216.50 46.00 278.50 580.80 3,401.60
Number of shares (mn) 8 99 200 6.7 60
Market Cap (BDT mn) 1,732 4,559 55,683 3,833 204,096
EBITDA (BDT mn) 193 512 2,153 104 17,802
EV (BDT mn) 2,454 6,047 56,618 4,473 206,176
DUPONT ANALYSIS
Net Profit AT/Sales 2.31% 12.14% 14.56% 8.06% 15.07%
Sales/Total Assets 162.91% 43.58% 134.72% 46.88% 127.11%
ROA 3.76% 5.29% 19.61% 3.78% 19.15%
Net Profit AT/Total Assets 3.76% 5.29% 19.61% 3.78% 19.15%
Total Assets/Stockholder’s Equity 2.61 1.66 1.69 2.28 1.95
ROE 9.83% 8.80% 33.05% 8.61% 37.29%
Extended DUPONT ANALYSIS
Net Profit/Pretax Profit 75.59% 77.80% 73.93% 98.36% 46.72%
Pretax Profit/EBIT 37.59% 46.56% 103.24% 77.34% 94.14%
EBIT/Sales 8.12% 33.52% 19.07% 10.59% 34.26%
Sales/Assets 162.91% 43.58% 134.72% 46.88% 127.11%
Assets/Equity 2.61 1.66 1.69 2.28 1.95
ROE 9.83% 8.80% 33.05% 8.61% 37.29%

DISCLAIMER
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FMCG Industry Review of

FMCG Industry Review of Bangladesh

FMCGs industry is one of the fastest growing segments of

population of the country makes the FMCGs industry

Consumption Nature in Bangladesh

1 EBL Securities Limited Research 21st June, 2018

Year Income Consumption Expenditure % of Income

The breakdown of Consumption Expenditure as % of total is as follow:

2 EBL Securities Limited Research 21st June, 2018

GDP Per GDP from GDP from Consumer

Factors Accelerating the Growth of FMCG Sector of Bangladesh

Urban Population of the Country

caused sizable needs for the related products. The growth of 56

urban population of the country is remarkable over the years.

population. According to Bangladesh Bureau of Statistics (BBS),

3 EBL Securities Limited Research 21st June, 2018

bodied, keen people who are currently 66

56.70% 65.38 56. 80%

of a certain country. Students, 61.02

56.62% 56. 50%

housewives, and persons above the age 59.93 58 56.53% 56.50%

force6. The participation rate refers to

Availability of Raw Materials & Low Labor Cost

4 EBL Securities Limited Research 21st June, 2018

Major Classifications of FMCG Industry in Bangladesh

5 EBL Securities Limited Research 21st June, 2018

1.1 Milk and Dairy Industry

Investment Insights on Dairy Market In Bangladesh

Per Capita Milk Consumption in Bangladesh

Organization suggests that daily milk consumption 450

should be 250 ml (per capita) for an adult. Our

people are getting more conscious about the 100

6 EBL Securities Limited Research 21st June, 2018

9.28 mn metric tons.

Powder Milk: Source: BBS 2017 & EBLSL Research

There are some local producers of powder milk like: Sanowara

Popular Powder Milk Brands & Prices in Bangladesh

No. Brand Name Country of Origin Price* (in Marketing/production by

Pasteurized Milk Brands & Prices:

7 EBL Securities Limited Research 21st June, 2018

Pasteurized Milk Market Share:

46.0% Market Share

1.2 Biscuit & Bakery Industry

8 EBL Securities Limited Research 21st June, 2018

Mega Factories Large Factories Medium Size Factories

Olympic Industries is the market leader having around 39%

No. Company Names Popular Brands

1.3 Frozen Food Industry

Source: Daily Star & EBLSL Research

Market Share Breakdown

Golden Lamisa Pran Kazi Farms Rich CP BRAC Igloo Others

Source: Golden Harvest Primary Research & EBLSL Research

Major Players in Processed Meat & Frozen Snacks

10 EBL Securities Limited Research 21st June, 2018

Golden Harvest BRAC Chicken Pran RFL Kazi Farms CP Bangladesh

Source: EBLSL Research

1.4 Ice-Cream Industry

0.031% 0.0 40%

different new types of ice creams. The market 0.0 30%

players are now shifting attention to offering a 0.0 20%

varied range of products. Bloop belongs to 0.0 10%

parent company Golden Harvest and entered 0.0 00%