Business level strategies and the impact or performance on an industrial enterprise “ A case study of Marico Bangladesh Limited”
Md. Enayet Hossain
MBA Program, spring 2011
MBA 601 strategic management
School of Business
University of Information Technology & Sciences (UITS)
Table of Content
Titles Page Number
Market status 06
Business level strategy06
Impact of strategies07
Profit, productivity, sales turnover09
Possible measure improve performance10
Marico Bangladesh Limited (hereinafter referred to as “MBL”/”Marico”/”the company”) is a public limited company incorporated in Bangladesh on 6 September 1999. The company was incorporated under the Companies Act 1994 as a private company limited by shares. Subsequently, the company was converted to “Public Company” limited by shares vide special resolution passed in the extra ordinary general meeting held on 21 September 2008. The company is a wholly owned subsidiary of Marico Limited, India.
The address of the company’s registered office is House # 01, Road # 01, Sector # 01, 4th and 5th floors, Uttara Model Town, Dhaka- 1230. Earlier, the registered address was at 272, Tejgaon Industrial Area, Dhaka-1208 which was changed to the current place on 2 July 2008. the authorized capital of the company is Tk. 400,000,000 divided into 40,000,000 number of ordinary shares of Tk. 10.00 each. The company was registered with an authorised capital of Tk. 10,000,000 divided into 1,000,000 numbers of ordinary shares of Tk 10 each. Subsequently, the authorised capital was increased to Tk. 300,000,000 divided in to 30,000,000 number of ordinary shares of Tk. 10 each vide special resolution passed in the extra ordinary general meeting held on 18 September 2008. The company further increased its authorised capital to Tk. 400,000,000 divided into 40,000,000 number of ordinary shares of Tk. 10 each vide special resolution passed in the extra ordinary general meeting held on 31December 2008. MBL is a wholly owned subsidiary of Marico Limited, India.
Nature of Business Activities
MBL carries on business in Branded Fast Moving Consumer Goods (FMCG) in Bangladesh. The company manufactures, markets and trades products under brands such as Parachute, Aromtaic Gold, Camelia, Hair Code, Parachute Advansed, Parachute Therapie, Parachute Hair Cream, Parachute After Shower Gel etc. MBL’s products reach its consumers through retail outlets serviced by its own distribution network comprising 3 sales depots and through Messrs Kallol Limited located strategically around the country. The Agreement with Kallol Limited expired on 31 December 2008. MBL has started it’s Dhaka depot operations from 1 January 2009 to service its consumers in greater Dhaka.
MBL has set up a manufacturing unit at Mouchak, Gazipur and went into commercial production in that unit from 27 October 2002. The factory land measuring 66 decimals and building had been acquired from Quality Chemical Industries Limited on 12th March 2007. Adjacent land of the factory measuring 128.50 decimals had also yet been purchased on 14 November 2007. A deed of agreement for purchase for another piece of land measuring 15 decimals had been signed on 14 November 2007.
Marico Bangladesh Limited (MBL) holds a leadership position in the FMCG space. MBL is the subsidiary of Marico Limited, India (Marico). MBL’s Products in Pure Coconut oil, Hair care and Skin Care reach out to more than 450,000 outlets in Bangladesh. MBL generated a turnover of about Tk. 2650 Million (about USD 38.4 Million) during 2007-08. MBL markets well-known brands such as Parachute,...