Internship Report on British American Tobacco Bangladesh Limited

Topics: Tobacco, Cigarette, Tobacco industry Pages: 121 (31100 words) Published: August 20, 2010
British American Tobacco Bangladesh, is the market leader in cigarette manufacturing companies in Bangladesh. BATB is a company faced with multifarious challenges of tobacco manufacturing industry. Company Overview

British American Tobacco Bangladesh (BATB) is one of the pioneer cigarette manufacturers in the world. The company was formed at the turn of the 20th century with the objective of establishing a worldwide business. Today British American Tobacco sells the leading brands in over 30 markets covering 102 countries, has more than 200 brands worldwide, employs more than 55,000 people and produces some 2 billion cigarettes every day. British American Tobacco Bangladesh Company Limited is one of the largest private sector enterprises in Bangladesh, incorporated under the Company’s Act 1913 on 2nd February 1972. BAT has over the decades consistently invested in Bangladesh market through Bangladesh Tobacco Company (BTC). Thus BTC has always been on the business of manufacturing and marketing different brands that meet the standards found everywhere in the world.

BAT has a plan to build their business in three ways:
1.Organic growth in their existing markets
2Quick and effective entry into new markets and
3.Potentially attractive acquisition, joint ventures or other strategic alliances.

The merger of British American Tobacco with Rothmans International had been announced on 11th January 1999. This global merger was completed on 7th June 1999. This brings together the number 2 and 4 players which will boast a combined volume exceeding 900 billion cigarettes around the world with some 120,000 employees and a worldwide market share of 16 percent (Phillip Morris has a 17 percent share). The merger will help to attain in British American Tobacco’s vision of becoming the world’s leading International Tobacco Company.

The British American Tobacco Group is one of the world’s leading international manufacturers of cigarettes, marketing its products in almost every country worldwide. It is the clear leader in a competitive and fast moving business. The group consists of four tobacco subsidiaries, which are given below:

1.British American Tobacco Company Limited, which produces cigarettes in over 45 countries for domestic and foreign markets in Europe, Australasia, Latin America, Asia and Africa. 2.Brown & Williamson Tobacco Corporation is the third largest tobacco company in the US. 3British American Tobacco (Germany) GMBH is a leading cigarette company in Germany. 4.Souza Cruz S.A. is the market leader in Brazil and a world leader in tobacco leaf export. BAT subsidiaries operate in more than 90 countries employing around 173,000 people. Its aim is to grow its share in the world market and its profitability within the share- by offering more brands against competitors, and by running its business efficiently and well. With its current position and plans, BAT is heading towards obtaining its objective, which is to be the world’s number one in tobacco industry.

British American Tobacco Co. Ltd.

British American Tobacco is the second largest Tobacco Company in the world. Based in London, UK, it operates in more than 50 countries with the strength of 100,000 employees and sells more than 250 brands in more than 180 markets worldwide. Tracing its heritage back to a joint venture formed by the Imperial Tobacco Company of the United Kingdom and The American Tobacco Company of the United States in 1902, today's British American Tobacco Company was born. Extent of operation of British American Tobacco Company is given below:

America-Pacific (USA, Japan, South Korea)
Asia-Pacific (China, Indo-China, Taiwan, South-East Asia,
Europe (50 countries including Russia)
Latin America (Central & South America, Mexico, Caribbean) Africa (More than 50 countries)
MESCA (Middle East, South & Central Asia)

History of British American Tobacco :...

References: 6. Annual Report (1994-19999) of British American Tobacco Bangladesh
14. Depositories Act, 1999.
Balance Sheet (1994-1999)
British American Tobacco Bangladesh Company Limited
Total Liabilities & S/E 2051654 2556457 2558619 3273004 3972523 4218423
Income Statement (1994-1999)
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