ATLAS BANGLADESH LTD. (ABL) POTENTIALITY AND ABILITY INTRODUCTION OF ABL • Atlas Bangladesh Ltd. started business in 1966 with Honda Motor Company Limited, Japan under private ownership.
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ATLAS BANGLADESH LTD. (ABL) POTENTIALITY AND ABILITY 1 INTRODUCTION OF ABL • Atlas Bangladesh Ltd. started business in 1966 with Honda Motor Company Limited, Japan under private ownership. In 1972 after independence of Bangladesh ABL was nationalized and placed under Bangladesh Steel & Engineering Corporation (BSEC), Ministry of Industries. • In 1988, it was made a public limited company & listed with Dhaka Stock Exchange. Its 49% share off loaded to public and 51% share to BSEC/Govt. ABL company board consisting of 9 members. 5 members including Chairman from Govt. share and 4 from public share holders. 2 INTRODUCTION (contd.) • ABL started business with Hero Honda since 1993. In The Year 2010 Honda, japan and Hero Honda Dissolved Their Partnership. • Now Honda, japan and Hero, India are operating their business separately by establishing their own company. 3 Company Message • Atlas Bangladesh Ltd. is one of the renowned automobile Company in Bangladesh. We have a long experience in motorcycle business with Honda and Hero Honda. Now we are searching a new renowned motorcycle manufacturing company to make long term business relationship. • Presently we are engaged in assembling motorcycle (80cc to 150cc). • Besides, ABL has 48 years experience in motorcycle business and also has huge land properties and capital, that can be employed in our new business. 4 Manpower At present ABL’s total manpower : 1. Engineer, Sales and Administrative Officer 39 nos 2. General Staff 67 nos 3. Worker 119 nos Total = 225 nos 5 STRENGTH OF ABL Marketing and Service • Atlas Bangladesh Ltd. has a very strong marketing setup and also very strong Dealers network. It has 110 nos dealers situated all over the country and a strong sales team are working in every doorsteps. 6 STRENGTH OF ABL Marketing and Service • As per Govt. circular Govt. organization can buy products from govt. company directly without tendering, under this circular as Govt. company ABL can sale 8,000 to 10,000 units motorcycle per year to the Govt. companies and agencies. • ABL have two well equipped service centers, one is in factory premises and other is in Tejgaon, Dhaka. (Center of Dhaka). 7 STRENGTH OF ABL Infrastructure • ABL has two well structured office building and five assembling Unit in a building and two sheds. One CKD shade. One storage building. Land Position - Constructed area 2380 Sq. meters - Vacant area 16633 Sq. meter Total area 39013 Sq. meter Latitude: 23°53'2.86"N ; Longitude: 90°23'41.76"E 8 STRENGTH OF ABL Financial Position 1000 million BDT (12.50 million USD) 237.04 million BDT ( 2.963 million USD ) c. Fixed Asset 3823.48 million BDT ( 47.79 million USD ) d. Current Asset 1977.87 million BDT ( 24.72 million USD ) e. Current Liabilities 842.53 million BDT ( 10.53 million USD ) f. Working Capital 1135.34 million BDT ( 14.19 million USD ) 0.41 million BDT ( 0.005 million USD ) 4882.03 million BDT ( 61.02 million USD ) BDT ( 2.57 USD) a. Authorized capital b. Paid up capital (No. of. Share 23.70 million, @ Tk.10 each ) g. Current ratio h. Long term loan i. Net worth j. Value per Share 2.35:1 205.96 9 STRENGTH OF ABL Assembling equipment lines Machineries and •There are five assembling line and one auto convey belt. One hundred and ninteen workers are working in here. • ABL were engaged in manufacturing three wheeler (Mishuk) with 80cc Honda engine. These are still running in Dhaka city. But stopped new product by the Govt. 10 LAST 5 YEARS PRODUCTION SALES AND PROFIT profit 297.50 382.30 396.00 377.40 300.00 40000 Million USD 29.75 38.23 39.60 37.74 30.00 36869 55.90 64.90 74.80 70.70 57.10 36896 Million BDT 41961 Value (million USD) 42111 50190 52087 Sales Value (million Qty BDT) 44937 4,375.70 48790 5,076.40 50190 5,856.60 41961 5,536.10 36869 4,474.40 48790 50000 Sales 49355 60000 No. of Motorcycle 45554 49355 52087 42111 36896 44937 2008-09 2009-10 2010-11 2011-12 2012-13 production 45554 Year production 30000 20000 Sales 10000 0 2008-09 2009-10 2010-11 2011-12 2012-13 11 FUTURE PLAN OF ABL 1. Presently ABL has 110 dealers all over the country out of which 70 nos are exclusive dealers. ABL now plans to re-organize and resize the number of dealers as per suggestion of new company. 2. Training : ABL will develop its own trainer in collaboration with new company to train the sales representatives and service personnel. 3. After sales Service : Free service campaign program will be made regularly. 4. Dealer co-ordination meeting will arrange to find the way to fetch challenges. 12 FUTURE PLAN OF ABL 6. Establishment of a customer care centre. 7. Set up of regional office and delivery Depot. 8. Set up of 7 company showroom for creating image in 7 divisional city, such as Dhaka, Chittagong, Sylhet, Khulna, Rajshahi, Barishal and Rangpur. 9. Regular advertisement through national news paper, TV and Bill Board will be arranged in important various places of Dhaka and other Districts. 13 MOTORCYCLE MARKET OF BANGLADESH 14 PRESENT MARKET CONDITION At present Indian motorcycle companies are dominating Bangladesh market. Market Share 2012-13 Current market Share DUYUNG CHINA, 2% POTHERS CHINA, 7% WALTON CHINA, 6% India 69% of total market Japan 2% China 29% Brand Name Origin BAJAJ HERO HONDA TVS YAMAHA HONDA DAYANG WALTON DUYUNG OTHERS INDIA INDIA INDIA INDIA PAKISTAN CHINA CHINA CHINA CHINA Market Share 2012-13 (%) 40 16 10 3 2 14 6 2 7 BAJAJ INDIA, 40% DAYANG CHINA, 14% HONDA PAKISTAN, 2% YAMAHA INDIA, 3% TVS INDIA, 10% HERO HONDA INDIA, 16% Honda has already started their own business in Bangladesh. Hero also started their own business with Nitol-Niloy group. Recently, Mohendra, India also intervene with Bangladeshi partner NAVANA and Suzuki, Japan also coming soon in Bangladesh market. 15 Future Expected Motorcycle Market in Bangladesh Year Instututional (nos) Personal (nos) Total (nos) Expected Growth Rate 2013-14 15000 200000 215000 9% 2014-15 20000 220000 240000 10% 2015-16 25000 245000 270000 11% 245000 220000 200000 Institutional Personal 15000 2013-14 20000 2014-15 25000 2015-16 16 Market Segment 1. Bangladesh market is only for motorcycle. Scooter market is very small 2. Customer Segment : Personal Use Sale Institutional Sale = 85% = 15% 3. Geographical Segment wise sales: Dhaka. Rajshahi. 29 % 21 % Sylhet. Khulna. 10 % 20% Chittagong. 11% Barisal 9% 4. Segment of model wise customer: 50cc & 80cc 20% 100cc 55% 125cc & 150cc 25% 17 SOME POPULAR MODELS IN BANGLADESH MARKET Model : CBZ Xtreme Origin: INDIA Displacement: 150 cc Model : Bajaj Discovery Origin: INDIA Displacement: 150 cc Model : Glamour Origin: INDIA Displacement: 125 cc Model : Discovery Origin: INDIA Displacement: 125 cc Model : CD Deluxe Origin: INDIA Displacement: 100 cc 18 SOME POPULAR MODELS IN BANGLADESH MARKET Model : Deluxe Origin : CHINA Displacement: 80 cc Model : Freedom Origin : CHINA Displacement: 125 cc Model : Bulet Origin : CHINA Displacement: 100 cc 19 Benefit of Localization • Due to potentiality for expanding of present market of two wheeler in next 7/8 years, presently Chinese importers are planning to go for local manufacturing. • At present by manufacturing of minimum 4/5 % of components huge financial benefits can be possible in respect of exemption of supplementary taxes • Other Indian manufacturers manufacturing matter. • BAJAJ, India already started dialogue manufacturing. • HONDA Japan also come up with their manufacturing program in Bangladesh. • ABL has 16633 Sq. meter vacant land and if necessary that can be used for expansion and developing manufacturing facilities. are also actively studying for local with their principal for local 20 Thanks To All Atlas Bangladesh Ltd. 21