https://www.researchgate.

net/publication/305736906_Internationalisation_of_Bangladeshi_Companies

https://www.researchgate.net/publication/
348732456_Internationalisation_Pattern_of_the_Bangladeshi_Firms_A_Study_on_the_Readymade_Gar
ments_RMG_Sector

file:///C:/Users/USER/Downloads/SSRN-id2816780.pdf

https://www.academia.edu/44967452/
Internationalisation_Pattern_of_the_Bangladeshi_Firms_A_Study_on_the_Readymade_Garments_RMG
_Sector

https://www.academia.edu/34820818/Assignment_on_international_business

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//

https://www.academia.edu/44967452/
Internationalisation_Pattern_of_the_Bangladeshi_Firms_A_Study_on_the_Readymade_Garments_RMG
_Sector

https://www.academia.edu/34820818/Assignment_on_international_business

https://www.academia.edu/7538223/Market_Structure_of_Akij_Foods_and_Bebarage_ltd

http://dspace.daffodilvarsity.edu.bd:8080/bitstream/handle/123456789/4062/151-11-222%2040_.pdf?
sequence=1&isAllowed=y

http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/9056/14364063_MBA.pdf?
sequence=1&isAllowed=y

// Products of AFBL

https://www.foreign-trade.com/exporter/AFBL/

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Group_10_Discussion_on_Waltons_internationalization_process_A_7th_semester_project_in_Theory_o
f_Internationalization_of_Companies_in_Institutional_Context

https://www.academia.edu/44967452/
Internationalisation_Pattern_of_the_Bangladeshi_Firms_A_Study_on_the_Readymade_Garments_RMG
_Sector
1.1 Introduction

AkijFoodandBeve
rageLtd.
“BringsQualityin
Life”.
AkijFoodandBeve
rageLtd.
“BringsQualityin
Life”.
Akij Food & Beverage Ltd.
 “Brings Quality in Life”

AkijFoodandBeve
rageLtd.
“BringsQualityin
Lif
Akij Food & Beverage is a unit of Akij Group. The company started its journey in 2006. The
organization prepares snakes and beverage at national and international levels. AFBL is a project
and it is a company of Akij Group. Fast moving consumer goods (FMCG) are experiencing a
successive growth in our country and the beverage products are in a rich position. Thousands of
thousand beverages are being consumed every day. Local and foreign organization has created a
competitive environment in the beverage market to meet demand and taste. AFBL is a Project
worth $70 million & is founded by the Parental Company Akij Group. AFBL started its
production at 400 bph in the carbonated soft drinks line and 300 bph in the juice line. In a span
of one and a half years we have increased our capacity to 1800 bph. At present their capacity one
is at the ground breaking rate of 1900 bph. So in approximately three years’ time our capacity
has increased three folds, during this same period most of their brands became either number one
or are almost on the verge of becoming number on in their respective categories. Most of our
machineries have been imported from world famous brands as Crones, Tetra Pak, Alfa Laval,
Spa, and Risky to achieve best quality.

1.2 Company Overview

AFBL is one of the well-equipped and country leading local manufacturers of soft drinks in
FMCG sector. In the arena of globalization and free trade, it is very tough to compete in this
Energy drinks and the competition style of this sector changing day by day. The AFBL is
continuously upgrading itself with this changing environment of competition. Our term paper
initially provides a nominal idea of the internationalization of beverage industry in our country.
Then the overview of AKIJ Group and also Akij Food & Beverage Ltd (AFBL), this is a unit of
Akij group, is presented. After the company descriptive part, analysis segment is incorporated.
Starting with Competitive analysis of AFBL, SWOT analysis, AFBL principles and Branding
strategies. Different National and MNCs organizations are now on the field to fulfill the overall
demand. AFBL requires expert Marketing and Branding which is remarkably different from the
manufacturing and other service sector companies. Because all companies of this industry need
to upgrade them constantly to stay in the competition. Every day the customers’ Demands and
taste are changing and the competitors are also offering customized products, which is the nature
of this industry. So, the success in this industry depends largely on the continuous upgrade of
Branding Activities. I have learned how to develop products and increasing demand through
different kind of events. AFBL has strong presence of Digital marketing. I have gathered
conceptual knowledge as well as practical knowledge.

1.3 Mission, Vision and Objectives

Mission: To be the market leader in quality food & beverage sector discovering & satisfying the
desire & need of the community working in harmony with our customers, employees and
business partners.
Vision: To be the leading food & Beverage brands excelling in product quality, social, technical
& marketing creativity; and service to our customers through the skills and cordial commitment
of our employees. According to Late Mr. Sheikh Akij Uddin regarding AKIJ Food and Beverage
Limited (AFBL), “We will manufacture and introduce those high quality products in the market
that we ourselves and our family will always use; we will not just produce products for the
consumers in the market and let our family consume other foreign products”.
Objectives: The main objective of the company is to increase the market share in related
diversified Products in Bangladesh and to assure the potential customers of the quality and
durability of the products.”

1.4 Internal Situation analysis

 Factory & Machinery: The factory of Akij Food & Beverage is stands in Krishnapur,
Dhamrai in Dhaka. It is the largest and biggest food and beverage industry in Bangladesh.
All the machines in the factory are imported from Japan. Each machine is fully automatic
and controlled in a digital way. This factor reflects the quality of the factory and the
machineries which in turn reflects the quality standard of the products of AFBL
 The Manpower: More than three thousand workers work in the factory.
 Financial: AFBL has a strong financial backup because the backup provided by the Akij
Group. Akij group collaborates with AFBL for different types of investments and loans.
All the initial investments regarding the establishment of the company, its products and
even for the marketing purpose, the parent company provided full support. No financial
out-sourcing such as debt or bank loan was being made by AFBL.
 Human resource: AFBL believes that teamwork is their main strength. AFBL made up
of a group of passionate individuals, uniquely qualified from diverse disciplines but
working towards their vision.

1.5 Products of AFBL:

The recent launching of the Akij Groups beverage line has been gaining popularity among all
carbonated water and energy drinks lovers. It gained popularity particularly among teenage
people and children. The favorite brand name Speed gained popularity within a short period.
Presently the company able to introduce new types of product which increase the depth of the
category of AFBL Akij food &Beverage limited. The products which are offering now by the
company are given bellow:

Product Brand SKU Out Look& Tag Line

Category Name (Stock
Keeping
Unit)

250ml pet
and can,
Cola Mojo 500ml pet,
1 liter pet
and 2 liter
pet.

Mojo 250 ml Pet

Diet Cola Light and Can

250ml pet
and can,
Cloudy Lemu 500ml pet,
Lemon 1 liter pet
and 2 liter
pet.

250ml, 500
Orang Twing
Drink ml, 1 liter

250ml pet
Energy Speed and Can
Drink
1.6 Internationalization of AFBL
Until recently internationalization through acquisition was something that corporate Bangladesh
could only dream about. But it has now become a shining reality since the Government of
Bangladesh has relaxed its control over outward foreign investment and allowed the Akij Group
to acquire two Malaysian companies - Robin Resources Malaysia SDN BHD and its subsidiary
Robina Flooring SDN BHD in a transaction involving $77 million. Both the companies are
located in the Mentakab, Pahang, 4 some 150 kilometers from Kuala Lumpur, Malaysia. The
companies were established in the year 1994 and 2000 respectively. Both the companies
manufacture medium density fiberboards, wood floor tiles, and different other wood products
and export to about 60 countries around the world, generating $8 - $9 million profit a year. This
landmark achievement by AFBL is a pathway towards a new era of internationalization process
for Bangladeshi companies. Business ventures from Bangladesh would now be able to go for
diversification in international markets as well as boost foreign exchange income through
outbound investments. Thus this acquisition possesses a significant importance for investment
activities conducted to and from Bangladesh.

1.7 Mode of entry into foreign market of AFBL

Company generally wants to introduce itself to huge markets, increase its sales and profits, gain
brand recognition, reduce the risk of only operating in one market and extend its product’s life
cycle. So, it wants enter into foreign market. When a company wants to put steps into foreign
market, it follows specific method. So, these methods are known as market entry methods which
tells about how to take the business abroad. For AFBL, the mode of entry for acquiring the two
Malaysian companies consists of the following –

1. Exporting: Exporting is the easiest mode of entry into international business. Therefore
AFBL begin their international expansion using this model of entry. Exporting is the sale
of products and services in foreign countries that are sourced from the home country.
They produce and export a wide variety of products including Fruit Drinks, Snacks,
Energy Drinks, Dairy Products, Baked Products, Spices and Aromatic Rice in Middle
East, Africa, South Asia, Southeast Asia, Europe and Americas.
2. Franchising: Franchising is mode in which the franchisee is granted permission to use a
name, process, method, or trademark. And also the franchisor firm assists the franchisee
with the operations of the franchise or supplies raw materials, or both. The franchisor
generally also has a larger degree of control over the quality of the product. Payment
under franchising agreements is that the franchisee pays an initial fee and a proportion of
its sales or revenues to the franchising firm. Setting the price fixed to $77 million, AFBL
group returned to Bangladesh. The next destination was Bangladesh Bank to convince
them approving the transaction. The Group prepared a detailed proposal explaining how
the acquisition would be helpful for the company as well as for the whole economy of
Bangladesh. In addition there would be employment generation opportunity for
Bangladeshi workers in the Malaysian soil. Highlighting all these benefits AFBL group
requested the Bangladesh Bank to release their Export Retention Quota (ERQ) to buy the
two companies. After analyzing all the facts and benefits, the Bangladesh Bank authority
 released $20 million and asked AFBL Group to go for debt financing. The group
immediately started looking for potential financiers. Green Delta Capital Limited
(GDCL) was the mandated lead arranger and advisor to the deal.
3. Foreign Direct Investment: Foreign Direct Investment involves the company entering an
overseas market by making a substantial investment in the country. Some of the modes of
entry into international business using the foreign direct investment strategy includes
mergers and acquisitions, joint ventures and Greenfield investments. AFBL group met
with the Singaporean parent company to discuss the FDI for the acquisition and other
systematic procedures. The initial asking price from Singapore was $100 million.
However, the price was not fixed and there was a bargaining opportunity. Both the group
tried to maximize their own pie. The FDI price was capped at $77 million after a
successful negotiation. Seeing AFBL Group’s dedication and professionalism, the
Singaporean management felt happy and confident to make the deal with Akij and
thereby, they sold the two companies to Akij. Thus a landmark deal was achieved, history
was made and a first Bangladeshi company performing an acquisition internationally was
made.

Entry of the Sample Firms in the International Market

Name of Type of Effect on

Sector the Produc sector Internatio Location Entry
company t nalization Mode

Akij BIDI Hand regulative Knowledge

Market requirements Factory Made (formal) negative Global seeking
Ltd. Cigarette
s
Akij Jute Jute Yarn Cognitive Wholly
Bangladeshi diaspora Mills Ltd. & Twine (informal) positive Malaysia owned
subsidiary
Akij regulative Exporting,
Liberal regulations Cement Cement (formal) positive Thailand Franchising
for FDI Company
Ltd
Akij Cotton regulative Wholly
EU Standards Textile Yarn (formal) negative Germany owned
Mills Ltd. subsidiary
Akij IT Exporting,
Nature of trust Institute of Educatio Cognitive positive Global Franchising
Technolog n& (informal)
y Ltd Training

1.8 Current Status of AFBL

Beverage and soft drinks sector is one of the fast growing sectors of Bangladesh. AFBL is one of
the major local manufacturers of consumer products mostly soft drinks in FMCG sector. In the
age of globalization and free trade, now it is very tough to compete in the any industry. The
competition style of this sector is changing very frequently. The AFBL is continuously managing
itself with this changing environment of competition. In this case, Akij Food & Beverage got
extra facilities because it is performed under the shadow of Akij Group which is one of the
biggest groups of Bangladesh. Akij Food & Beverage strongly aligned with mother company
Akij Group to create synergy (Hoque, 2010). Recently, AFBL is conducting its business with
good reputation. Its sale is increasing over time. Consumers as well as retailers are satisfied with
AFBL in terms of price, quality and service (Akij Group Website, 2018). AFBL is successfully
doing its business in Dhaka rather than other districts.

1.9 Problems Identified:

 AFBL has 11 different products categories. In the market customers not familiar with all
the products. Maximum customers are familiar with Mojo, Clemon, Speed, Frutika &
Farm Fresh. They are not familiar with other products. . The problem that is being made
that in the market their product demand is decrease day by day.
 In the market the retailer stores have no refrigerators of AFBL products but Coca- Cola,
& Pepsi Cola have enough refrigerators in the market. The problems create that in the
market they are fall behind then their competitors.
 Product availability plays a significant role in increasing the market share. In the market
Mojo, Clemon, Frutika, Speed products are available but the others products is not
available. The problem that is being made that they are lost their market share.

1.10 Recommendations:
Among the fast moving consumer goods company AFBL is one of the prominent native
company which has several product line and many more to come in future. After so many
internationalization process problems, they should solve sustain in the competitive market like
Bangladesh.
 AFBL should try to persuade government to remove tax on imported raw materials so
that as a local company they can get a competitive advantages (both in price & quality)to
compete with the competitors.
 AFBL should consider putting on extra effort to popularize the wild brew brand among
the users of the consumers. Like giving discounts on price or giving gifts (mobile phones,
coffee maker, blender machine etc.) while purchasing refrigerator.
 Sales force should be more trained up and proactive to capture the market of beverage.
 Product availability should be maintained by the company.
 They should emphasize on the event (sponsor) & social marketing to increase the brand
awareness of AFBL’s products.

Ref:
https://en.wikipedia.org/wiki/Akij_Group
https://www.academia.edu/7538223/Market_Structure_of_Akij_Foods_and_Bebarage_ltd

http://dspace.daffodilvarsity.edu.bd:8080/bitstream/handle/123456789/4062/151-11-222%2040_.pdf?
sequence=1&isAllowed=y

https://www.foreign-trade.com/exporter/AFBL/

https://www.researchgate.net/publication/305736906_Internationalisation_of_Bangladeshi_Companies

https://www.lawyersnjurists.com/article/marketing-activities-afbl/

https://www.assignmentpoint.com/business/marketing-business/marketing-activities-akij-food-
beverage-limited.html