1.

Introduction

1. Introduction–
ACI was established as a subsidiary of Imperial Chemical Industries (ICI) in the then
East Pakistan in 1968. After independence the company has been incorporated in
Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited
and Adlo as Public Limited Company. This company also obtained listing with Dhaka
Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9
March, 1994. Later on 5 May, 1992, ICI divested 70% of its shareholding to local
management. Subsequently the company was registered in the name of Advanced
Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on
22 October 1995. ACI limited being one of the largest conglomerates in Bangladesh
with a multinational heritage operates across the country through its four diversified
strategic business unit. These are ACI Pharmaceutical, ACI Consumer Brands, ACI
Agribusinesses and ACI Retail Chain.

2. Objective of the Study–

The objective of the study can be described as Board Objective and Specific
Objective.

Board Objective: The board objective of the assignment on the strategic practice
and theory of ACI Company.

Specific Objectives: Specific objectives of the study are

1. Analyzing the practice of strategic management of ACI Company.
2. Identifying the strengths and weakness of ACI Ltd.
3. Analyzing the different level of strategic.
4. Illustrate the PEST Analysis of ACI.
5. Illustrate the strategic plan of the company.
 1. Company Background
1. Overview of Business.
ACI or Advanced Chemical Industries is one of the largest Bangladeshi
conglomerates. The company operates through three reportable segments:
Pharmaceuticals, Consumer Brands and Agribusiness. ACI established as the
subsidiary of Imperial Chemical Industries (ICI) in 1968. It has been
incorporated as ICI Bangladesh Manufacturers Limited on 24 January 1973.
The company was renamed as Advanced Chemical Industries Limited (ACI
Limited) on 5 May 1992. The company sold its insect control, air care and toilet
care brands to SC Johnson & Son in 2015.

2. Mission and Vision -

 Mission
1. ACI's Mission is to enrich the quality of life of the people through
responsible application of knowledge, technology and skills.
2. ACI is committed to the pursuit of excellence through world-class
products, innovative processes and empowered employees, to provide the
highest level of satisfaction to customers.
3. Provide the highest level of satisfaction to customers.

 Vision
1. Attain a high level of productivity in all our operations through effective
utilization of resources and adoption of appropriate technology.
2. Promote inclusive growth by encouraging and assisting our distributors
and suppliers in improving efficiency.
3. Ensure superior return on investment through judicious use of resources
and efficient operations, utilizing our core competencies.

3. Business Objective -
1. Provide products and services of high and consistent quality, ensuring
value for money to our customers.
2. Endeavour to attain a position of leadership in each category of our
businesses.
3. Develop our employees by encouraging empowerment and rewarding
innovation.
4. Promote an environment for learning and personal growth.
1. Management Team –
Dr. A.K.M Fareyzul Haque Ansarey
Managing Director & CEO, ACI Motors Limited, Premiaflex Plastics Limited, ACI
Agrolink Limited, ACI Marine and Riverine Technologies Limited
Mr. M Mohibuz Zaman
Managing Director, ACI HealthCare Limited, ACI Biotech Limited
Mr. Pradip Kar Chowdhury
Executive Director, Finance & Planning
Mr. Sabbir Hasan Nasir
Executive Director, Logistics
Mr. Md Monir Hossain Khan
Finance Director
Mr. Imam Ahmed Istiak
Director, Operations, Pharmaceuticals

2. Owners --

Mr. M. Anis Ud Dowla

3. Background of Owners
Mr. M. Anis Ud Dowla, the Chairman of ACI Group, is one of the most
successful personalities in Bangladesh business circle. Mr. Dowla has
maintained a high profile, and has provided leadership to the business
community in different capacities. He served in the British Oxygen Group of
UK in Pakistan, Bangladesh and Kenya for 27 years, including 12 years as
Managing Director of Bangladesh Oxygen Ltd. In 1987, he became the
Group Managing Director of the three ICI companies in Bangladesh. With
experience gathered while working with two British multi-nationals for over
32 years, Mr. Dowla has continued to maintain the multinational culture and
management style in ACI, with especial emphasis on quality, productivity
and customer services. He was the President of Metropolitan Chamber of
Commerce & Industries, Dhaka in 1977, 1978, 1995 and 2010. Mr. Dowla
has considerable contribution in the field of Industrial Relations of the
country. He was elected President of Bangladesh Employers' Federation
for four terms in 1975-1976, 1976-1977, 1991-1992 and 1992-1993.
Besides, he was the Chairman of Pioneer Insurance Company Limited for
three terms. At present, he is a Director of the Credit Rating Agency of
Bangladesh. He has also been re-elected as the President of the
Bangladesh Seed Association (BSA) for three consecutive terms. He is a
member of the Board of Trustees of the Independent University of
Bangladesh.
Products of the company

Types of products
 
Food items: 
ACI Pure Salt, ACI pure Thai Noodles, ACI Pure Sugar, ACI Nutrilife Rice Bran oil.
PURE Basic Spice. Chilli Powder. Turmeric Powder. Coriander Powder. Cumin Powder.
Gold Coffee. ACI GOLD Coffee Sachet, Gold Coffee Special Blend.
Xtra FUN Plain Cake. Xtra FUN Plain Cake Butter Cream.
FUN Potato Crackers. Potato Crackers Masala Mix. Potato Crackers Spicy Tomato Flavour. Potato
Crackers Tomato Chutney.

Pharmaceutical product: 
Abaclor, Abecab, Abetis, Acora, Aptim, Blocid, Caloren, Cefsox, Clorel, Drovin, Indever, Lopenta, oxima
and many more. 

Antiseptic & Hygiene:

Savlon Liquid Antiseptic, Savlon Antiseptic Cream, Savlon Antiseptic Bandages, Sanitary Napkin.

Electrical products:
Sparkle LED, Sparkle CFL Lotus, CFL Bulbs.

ACI crop care:

Emclore, Sunup, Difer Konja Plus, Emlosim, Newben, Rovanon, ACImix etc.

Household Insecticidescal product: 

ACI Aerosol, ACI Cockroach Spray, ACI Mosquito Coil.

                     Target customer

ACI LTD. has customers all over in Bangladesh. Newborn to grownups we all use medicine, farmers
use fertilizer & insecticides. ACI food items like sugar, salt, chips etc. we somehow use & need those
products.

                             Sales

In the end of June 2016 ACI LTD. net local sales were 22295.0162 million TK &
Export sales were 213.03983 million TK
Following that, end of June 2017, 2018, 2019, 2020
net local sales were 18133.8453 million Tk  
                                    21167.9899 million TK
                                    21560.5837 million TK
                                    22902.3823 million TK
& Export sales were
171.88534 million TK
219.11514 million TK
234.99888 million TK
299.59471 million TK

Market Description: Since its inception, it has been mainly involved in the
pharmaceutical and pest control products business, but later, ACI entered various
sites through the establishment of one subsidiary company after another. ACI has
been doing business in the domestic pharmaceutical market for 30 years. So,far, ACI
has brought more than 250 pharma molecules like Protein, Amino Acid, Nucleic
Acid,etc. In more that 100 therapeutic classes of vitamin, antibacterial, respiratory,
oncology etc.Later then ACI brings more 33 molecules. ACI is exporting medicines
to 30 countries on four continents to fulfil the demand of the country. Regular
activities are also underway to expand to more than 15 businesses in Africa and
central America. ACI has a presence in the home care segment through these two
types of products, pest control and non pest control. In addition, the American
consumer brand SC Johnson is marketing various products as a manufacturing and
distribution partner. In the aerosol market, ACI Aerosol is the number one choice of
the ACI. In this market ACI has more than 90 percent market share. ACI Coil shares
8% in the mosquito coil market. ACI entered the media and communication industry
in 2000 by setting up a subsidiary called Creative Communications LTD. Creative
communication is working in various other sectors including media planning, event
management. The company’s revenue for the fiscal year was Rs.7.5 crore. In 2003,
ACI started producing, packaging and selling tea under the name Tetley ACI
Bangladesh in the giant company of Asia and Tata Global Beverages Overseas
Holding LTD. The two established brands of this company are Tata tea and Tetley.
ACI started business in the salt market in 2004 through ACI Salt LTD. Domestic
companies including ACI,MOLLA Salt have been doing competitive business for
several years due to high sales of low quality salt imported from outside without
BSTI approval. But during this hardship ACI salt topped 8 times. In the same year,
2004 ACI established a joint venture company with India Godrej Agrovet,named
ACI Godrej Agrovet Private LTD.ACI started the seed business in 2006. ACI has
been able to capture more than 90% of the entire market by introducing new
varieties of Boro rice, Hybrid rice, corn. 2008 was an important year for ACI.That
year ACI joined several new businesses such as food, surface care, hygiene,
supermarket business. ACI also entered the electronics marketing and packaging
business this year. In the same year, ACI started its journey as the official distributor
of the world famous brand Panasonic TV, refrigerator, air condition and other
products.

Promotional activities of the company:

(1) Advertising: Advertising is defined as any paid form of nonpersonal

communication about an organization,product,service, or idea by an identified
sponsor. Mainly ACI uses a few numbers of nonpersonal components like
TVC,newspaper.It is a very important promotion tool, particularly for ACI
companies whose products are targeted at mass consumer markets.

(2) Sales promotion: Sales promotion defined as those marketing activities that
provide extra value or incentives to the sales force, the distributor, or the ultimate
consumer and can stimulate immediate sales. ACI mainly uses trade oriented sales
promotion which is targeted toward marketing intermediaries such as wholesalers,
distributors and retailers.

(3)Out of home advertising: It includes Billboards, Street furniture, Alternative

media and transit.
 ACI-LTD Income Statement

Advanced Chemical Industries Limited

Statement of profit or loss

Unaudited

Figures in '000'

For the first quarter ended 31 March

In Taka Note 2015 2014

Revenue 10 3,186,441 2,932,854

Cost of sales 11 (1,822,824) (1,717,688)

Gross profit 1,363,617 1,215,166

Administrative, selling and distribution expenses 12 (1,031,369) (867,705)

Other income 14,043 12,368

Operating profit 346,291 359,829

Finance costs (64,720) (84,773)

Profit before contribution to WPPF 281,571 275,056

Contribution to WPPF (14,079) (13,753)

Profit before tax 267,492 261,303

Income tax (expense)/ income (67,352) (74,644)

Profit after tax 200,140 186,659

Earnings per share

Basic earnings per share 5.78 5.43

 Note 30 September 2016 30 September 2015

Revenue 13 4,033,288 3,825,145

Cost of sales 14 (2,265,589) {2,237,3742

Gross profit 1,767,699 1,587,771

Administrative, selling and distribution expenses 15 (1,411,342) (1,277,041)

Other income 19,691 21,395

Operating profit 376,048 332,125

Net finance costs 25,4642 p,8062

Profit before contribution to WPPF 350,584 328,319

Contribution to WPPF (17,5292 (16,416)

Profit before tax 333,055 311,903

Income tax exeense {88,2432 {91,0052

Profit after tax 244,812 220,898

Earnings per share

Basic earnings per share (EPS) 6.15 5.55

July 2018 July 2017

to September to September

Note 2018 2017

Revenue 13 5,472,683 4,889,790

Cost of sales 14 (2,980,458) (2,658,852)

Gross profit 2,492,225 2,230,938

Administrative, selling and distribution expenses 15 (1,990,329) (1,916,803)

Other income 31,063 33,881

Operating profit 532,960 348,016

Net finance costs (153,910) (92,848)

Profit before contrib ution to WPPF 379,049 255,168

Contribution to WPPF (18,952) (12,758)

Profit before tax 360,097 242,410

Income tax expense (93,771) (60,602)

Profit after tax 266,325 181,808

Earnings per share

Basic ea rnings per share (EPS) 5.53 3.77

Note 2018 2019

 Revenue 10 3,186,441 2,932,854
Cost of sales 11 (1,822,824) (1,717,688)
Gross profit 1,363,617 1,215,166
Administrative, selling and distribution expenses 12 (1,031,369) (867,705)
Other income 14,043 12,368
Operating profit 346,291 359,829
Finance costs (64,720) (84,773)
Profit before contribution to WPPF 281,571 275,056
Contribution to WPPF (14,079) (13,753)
Profit before tax 267,492 261,303
Income tax (expense)/ income (67,352) (74,644)
Profit after tax 200,140 186,659

Earnings per share

Basic earnings per share 5.78 5.43

July 2020 to July 2019 to

September 2020 September 2019
Note

Revenue 13 6,819,531 , 5 535,084

Cost of sales 14 ( 3,701,176) (2,800,009)

Gross profit . 3,118,355 2,735,076

Administrative, selling and distribution expenses 15 (2,237,843) (2,184,345)

Other income 9,194 8,517

Operating profit 889,705 559,248

Net finance cos ts (121, 208) (174,373)

Profit before contribution to WPPF 768,498 384,875

Contribution to WPPF (38,425) (19,244)

Profit before tax 730,073 365 ,631

Income tax expense (209,208) (106,596)

Profit after tax 520,864 259,035

Earnings per share

Basic and diluted earnings per share (EPS) 9.08 4.51

ACI-LTD BALANCE SHEET

Assets
Fiscal year is July-June. All values BDT Millions. 2020 2019 2018 2017 2016 5-year trend

Cash & Short Term Investments 2,959 2,373 2,187 1,595 1,250

Cash Only 2,959 2,373 2,187 1,595 1,250

Cash & Short Term Investments Growth 24.69% 8.53% 37.09% 27.62% -

Cash & ST Investments / Total Assets 4.81% 3.87% 3.94% 3.40% 3.47%

Total Accounts Receivable 12,922 14,458 12,185 9,597 6,707

Accounts Receivables, Net 12,213 13,827 10,963 8,530 5,899

Accounts Receivables, Gross 13,200 14,630 11,486 9,017 6,384

Bad Debt/Doubtful Accounts (987) (803) (522) (487) (485)

Other Receivables 709 631 1,222 1,067 808

Accounts Receivable Growth -10.63% 18.66% 26.97% 43.09% -

Accounts Receivable Turnover 5.38 4.37 4.61 4.97 4.89

Inventories 12,546 13,560 11,793 10,551 8,402

Finished Goods 8,762 9,419 8,440 7,036 6,154

Work in Progress 345 377 322 270 217

Raw Materials 3,902 4,123 3,196 3,536 2,204

Progress Payments & Other (463) (359) (165) (291) (173)

Other Current Assets 1,976 1,647 4,268 4,104 3,831

Prepaid Expenses 1,579 1,311 3,909 3,821 3,056

Miscellaneous Current Assets 398 336 358 283 775

Total Current Assets 30,403 32,039 30,432 25,847 20,190

Net Property, Plant & Equipment 28,199 27,050 23,017 19,454 14,527

Property, Plant & Equipment - Gross 33,772 31,079 25,839 21,254 15,481

Buildings 5,443 1,934 1,723 1,547 1,360

Land & Improvements 8,609 8,382 8,089 7,494 6,621

Machinery & Equipment 8,430 6,222 4,461 3,272 2,476

Construction in Progress 5,037 8,889 7,693 5,936 2,919

Leases - - 55 55 55

Leased Property 11 55 - - -

Transportation Equipment 1,347 1,303 1,233 792 550

Other Property, Plant & Equipment 3,389 2,814 2,585 2,158 1,501

Accumulated Depreciation 5,573 4,029 2,822 1,800 954

Buildings 297 160 109 62 19

Machinery & Equipment 2,408 1,584 1,019 550 169

Leases 11 44 - - -

Leased Property 11 44 - - -

Transportation Equipment 939 698 448 244 93

Other Property, Plant & Equipment 1,918 1,543 1,202 900 636

Total Investments and Advances 2,446 2,153 1,879 1,583 1,322

LT Investment - Affiliate Companies 1,669 1,304 1,143 1,068 924

Other Long-Term Investments 777 848 735 515 398

Intangible Assets 116 103 118 86 31

Net Goodwill 5 5 5 5 12
Fiscal year is July-June. All values BDT Millions. 2020 2019 2018 2017 2016 5-year trend

Net Other Intangibles 111 98 113 81 18

Total Assets 61,563 61,344 55,446 46,970 36,070

Assets - Total - Growth 0.36% 10.64% 18.04% 30.22% -

Asset Turnover 1.11 - - - -

Return On Average Assets -1.69% - - - -

Liabilities & Shareholders' Equity

All values BDT Millions. 2020 2019 2018 2017 2016 5-year trend

ST Debt & Current Portion LT Debt 32,131 32,262 26,093 21,377 15,376

Short Term Debt 27,263 27,461 22,526 19,596 14,047

Current Portion of Long Term Debt 4,868 4,801 3,566 1,781 1,329

Accounts Payable 4,897 4,338 2,253 2,347 1,711

Accounts Payable Growth 12.89% 92.55% -4.02% 37.21% -

Income Tax Payable 336 283 2,810 2,618 2,232

Other Current Liabilities 6,089 4,699 3,924 3,325 2,797

Dividends Payable 174 113 101 97 204

Accrued Payroll 824 681 597 550 290

Miscellaneous Current Liabilities 5,091 3,905 3,226 2,679 2,302

Total Current Liabilities 43,453 41,582 35,080 29,667 22,115

Current Ratio 0.70 0.77 0.87 0.87 0.91

Quick Ratio 0.41 0.44 0.53 0.52 0.53

Cash Ratio 0.07 0.06 0.06 0.05 0.06

Long-Term Debt 9,452 9,282 7,972 5,151 2,741

Long-Term Debt excl. Capitalized Leases 8,272 8,079 7,972 5,151 2,741

Non-Convertible Debt 8,272 8,079 7,972 5,151 2,741

Provision for Risks & Charges 1,367 1,179 994 788 641

Deferred Taxes (399) 74 379 724 727

Deferred Taxes - Credit - 74 379 724 727

Deferred Taxes - Debit 399 - - - -

Other Liabilities (excl. Deferred Income) - 0 0 0 0

Total Liabilities 54,273 52,118 44,425 36,331 26,224

Non-Equity Reserves - - - - 2

Total Liabilities / Total Assets 88.16% 84.96% 80.12% 77.35% 72.70%

Common Equity (Total) 7,899 9,579 11,080 10,574 9,707

Common Stock Par/Carry Value 574 499 482 438 398

Additional Paid-In Capital/Capital Surplus 402 402 402 402 402

Retained Earnings 2,211 3,844 5,451 5,153 4,427

Cumulative Translation Adjustment/Unrealized For. Exch.

(1) (1) - - -
Gain

Unrealized Gain/Loss Marketable Securities 433 555 465 300 202

Revaluation Reserves 4,278 4,278 4,278 4,278 4,278

All values BDT Millions. 2020 2019 2018 2017 2016 5-year trend

Other Appropriated Reserves 2 2 2 2 -

Common Equity / Total Assets 12.83% 15.61% 19.98% 22.51% 26.91%

Total Shareholders' Equity 7,899 9,579 11,080 10,574 9,707

Total Shareholders' Equity / Total Assets 12.83% 15.61% 19.98% 22.51% 26.91%

Accumulated Minority Interest (609) (352) (59) 65 137

Total Equity 7,290 9,227 11,020 10,639 9,844

Liabilities & Shareholders' Equity 61,563 61,344 55,446 46,970 36,070

conclusion
Bangladesh is a country of immense opportunities. With a huge population density and
only 22% penetration rate, there is a big untapped market waiting to be discovered. ACI
Limited is the biggest market player in the manufacturing industry and should think about
these opportunities for retaining the market leader position.

Proper Stock Management of ACI Limited is needed to identify both cost and revenue. And
after identification of cost and revenue, profit can be recognized. The Stock Management
of Consumer Brands of ACI Limited is pioneering in introducing and implementing various
modern financial statements like Monthly Stock Report, Refurbish Statement, Non-
Conforming Report, Stock Reconciliation etc. Though they manage stocks in a systematic
ways, but they need more automation in this management.

The Stock management function not only compiles and coordinates the company plan of
the conglomerate but also instrumental in feeding the Local Market of the country as well
as world in large. The Consumer Brands area is one of the most exciting areas in ACI
Limited. But Company should think about incorporating more facilities, inventing newer
services and increasing effectiveness and efficiency in Stock Management system. Only
then it can remain in the position it is in now.

The flourishment of any organization requires combined efforts and co-operation from
several parties. Social, political and macroeconomic environment play pivotal role in this
regard. But taking human resource division the company's betterment purpose the report
surely suggest about structuring it's employee management tactics for optimizing cost,
improving performance of its work force. The framework of business laws and legal
procedures should facilitate in managing employee performance in a timely and cost
effective manner. In Bangladesh, the establishment of a market driven private system is
linked to achieving higher employment. increased productivity, more efficient use of
resources and more rapid economic growth. But the ACI Limited still faces extreme
challenges competing with other multinational companies. ACI Agribusiness is contributing
the country and serving the nation in different ways. If it can up hold it's much toward
advancement, it will be able to set a role model in our country as a leading company.