In this report we have presented the overall working capital management of Heidelberg Cement Bangladesh Limited (HCBL). We have gather maximum information from the annual reports and by taking interview of Board of Director, M. Abul Hashem; Company Secretary. In this report we have tried to match the terms and conditions that we learned in FIN340 with HCBL’s working capital management. We have done financial analysis and gave recommendation. Company Overview:
Heidelberg Cement Bangladesh is one the largest producers of quality cement in Bangladesh. Heidelberg Cement Group from Germany, one of the world’s leaders in construction and building material with operations in more than 50 countries, owns 61% shares of the company. In 1998 Heidelberg Cement Group established its presence in Bangladesh by setting up a floating terminal with on board bagging facilities in the port of Chittagong and by distributing the cement to the key markets of Dhaka and Chittagong. In 1999 the group further strengthened its position in Bangladesh and built a greenfield manufacturing plant near Dhaka namely “Scancement International Limited” with an installed capacity of 0.750 million tons per year. In 2000 Heidelberg Cement group also bought a minority position in Chittagong based company namely “Chittagong Cement Clinker Griding Co. Limited (CCCGCL)” quickly followed by the acquisition of a in controlling stake. The plant in Chittagong has an installed capacity of 0.7 million ton per year. In 2003, the two companies were amalgamated and the company’s name was changed to Heidelberg Cement Bangladesh Limited. Corporate Mission:
The Corporate Image : Building worldwide growth by building a better world. Business Culture : Building on local responsibility for international success Employee Policy : Building our business on the knowledge of our people Market Strategy : Building our growth on a solid base of earnings Customer Philosophy : Building customer satisfaction Quality Standard : Building on quality products to build reputation Commitment to Innovation : Building on new technologies determines our future success Brief History
Heidelberg Cement Bangladesh Limited meets 13% of the Bangladesh demand for cement from two plants located at Dhaka & Chittagong. Heidelberg Cement Bangladesh Limited employs 260 people across the country. The company with 1.5 million tones annual cement production has become a major force in the Bangladesh Cement industry over the last eight years. In Bangladesh, Heidelberg group is one of the largest foreign investors having an investment of 100 million US$ with more than 260 employees working round the clock to materialize the mission of this great global company. By satisfying the needs and aspirations of its customers, employees, shareholders and the wider community, the company is able to maintain its position of strength as a sustainable cement provider without compromising commitment to long term stability and environmental responsibility. Heidelberg Cement Bangladesh Limited is a sister concern of Heidelberg Cement Group. Environmental Policy
Heidelberg Cement Bangladesh Limited Protection of the environment is an integral part of Heidelberg Cement Group’s strategy. As natural resources are the basis of cement, measures for sustainable environmental care are adopted in all our operations. In Bangladesh, our policy is to produce high quality cement, optimize operations to save on natural resources and prevent pollution in order to create a cleaner and safer environment. Products & Innovation
Portland Composite Cement (PCC)
As part of its relentless pursuit for innovation and constant drive to improve quality, HeidelbergCement has introduced Portland Composite Cement (PCC) during 2003. Absorbing European Norms in cement...