The Standard

Department of Human Resource Management
University of Chittagong
Project Report
On
Karnaphuli Gas Distribution Company Limited
i
Project Report
On
Karnaphuli Gas Distribution Company Limited
Submitted by
Atair Rahaman Molla

ID : 17305013
Session: 2020-2021
Submitted to
Dr. Md. Aftab Uddin

Professor
Date of Submission: 10th May, 2023

ii
Letter of Submission
Date: 10th May, 2023

Dr. Md. Aftab Uddin
Professor
Subject: Submission of the project report on "Karnaphuli Gas Distribution Company Limited".
Dear Sir,
I am pleased to submit you the project report that you have assigned as a partial requirement of the
course for our MBA final semester. My report topic is "Project Report on Karnaphuli Gas Distribution
Company Limited" that you gave authorization to prepare and submit.
It has been a worthwhile experience for met to prepare this report, which is so closely related to our
studies. I have learned about the current situation of our country. i have tried to give all my efforts to
fulfill the requirements. Here I have enclosed lots of information regarding industry analysis of
garments sector and internal and external analysis of Karnaphuli Gas Distribution Company Limited.
I have tried with my best to make all requirements available as you suggested. I will be so grateful if
you kindly take a look in my report and accept it with your kind consideration.
Sincerely yours
........................
Atair Rahaman Molla
ID: 17305013
Session: 2020-21
iii
Acknowledgement
Before starting, I would like to send all my praises and gratitude to the almighty Allah for providing
me the means and strength to finish the task by his mercy.
I would like to acknowledge my gratitude to my academic supervisor, Dr. Md Aftab Uddin, Professor,
University of Chittagong, Department of Human Resource Management, for his kind assistance,
constant supervisions, insightful guidance and helpful suggestions regarding this report. I would like
to show my gratitude to my Almighty Allah for giving me adequate patience as well as wisdom to
make this report. Besides, I would also like to show my gratitude to my Family Members, without the
support of whom it was not possible to prepare the report.
My thanks and gratitude to the authority of Karnaphuli Gas Distribution Company Limited for
allowing me to collect data at their company. To be more specific, I would like to express my
indebtedness to Manager Kamrul Hassan Chowdhury and Md Abdul Aziz for providing me with such
opportunity.
At last, I want to express my gratitude to everyone who has offered their opinions about work being
done, give me the data I needed, critiqued, and praised me. This appreciation is insufficient to convey
to them the magnitude of the influence their viewpoint has on the report, the extent of my obligation
to them. I want to thank them all from the bottom of my heart.
iv
Supervisor's Declaration
This to certify that, the business project report titled with “Project Report on Karnaphuli Gas
Distribution Company Limited” is prepared by Atair Rahama Molla, ID: 17305013 at University of
Chittagong, Department of Human Resource Management.
The project report has been prepared by him under my continuous supervision and guidance. He is
permitted to submit the project report. I wish him very success in his life.
Supervisor
……………………………..
Dr. Md. Aftab Uddin
Professor
v
Executive Summary
The business project report prepared by myself is based on Karnaphuli Gas Distribution Company
Limited in Bangladesh. In this report, basically an analysis has been conducted on the economy of
Bangladesh, the company as well as the industry and the problems of the company has been identified
which are followed by the recommendations.
I have tried to discuss, in the 1st chapter of the report, introduction, objectives, scopes, methodology
and limitations of the study.
In the 2nd chapter, I depicted the overall company profile which includes the company overview,
vision, mission, company aim, organogram etc.
In the 3rd chapter, I brought the economic analysis of Bangladesh which includes various indicators
such as GDP, GDP growth, balance of payment, inflation rate, employment rate, per capita income,
and unemployment rate.
In the 4th chapter I have done industry analysis which includes the overview of gas distribution sector
of Bangladesh, Porter's five forces analysis, Sustainable Company Analysis.
In the 5th chapter, I did the company analysis which includes external environment analysis and
internal environment analysis. Here I showed PESTEL analysis for KGDCL's industry. Then I did
value-chain analysis, VRIO analysis, BCG matrix, financial analysis for KGDCL.
In the 6th chapter, I showed the findings of the report by using SWOT Analysis.
In the 7th and final chapter, I showed the Policy intervention, social impact and learning‟s.
vi
Introduction, Objectives,
Chapter 1 Scopes, Methodology and
Introduction Limitations.
Company overview, vision,

Chapter 2 mission, company aim,
Company Profile organogram
GDP, GDP growth, BoP,

Chapter 3 inflation rate, employment
Bangladesh Economic rate, per capita income, and
Analysis unemployment rate.
Chapter 4 Porter's five forces analysis,

Industry Information Sustainable Company
& Analysis Analysis
Chapter 5 Value-chain analysis, VRIO

Company Analysis analysis, BCG matrix,
financial analysis
Findings with SWOT

Chapter 6
Findings
Policy intervention. Social

Chapter 7 impact, learnings.
Conclusion
Figure Technical Map
vii
Table of Contents
Letter of Transmittal ................................................................................................... iii
Acknowledgement ...................................................................................................... iv
Supervisor‟s Declaration ............................................................................................ v
Executive Summary ................................................................................................... vi
Chapter 01- Introduction ....................................................................................... 01

1.1 Objective of the study .......................................................................................... 02
1.2 Scope of the Study ............................................................................................... 03
1.3 Methodology……………………………………………………………………. 03
1.3.1 Primary Sources ………………………………………………………. 03
1.3.2 Secondary Sources …………………………………………………… 04
1.5 Limitation of the study………………………………………………………..... 04
Chapter 02 - Company Profile .............................................................................. 05

2.1 Nature of Business .............................................................................................. 06
2.2 Collection and Distribution Procedure of KGDCL ............................................ 07
2.3 Vision, Mission, Objective and structure of KGDCL ........................................ 07
2.3.1 Vision ………………………………………………………………... 07
2.3.2 Mission ……………………………………………………………… 07
2.3.3 Objective …………………………………………………………….. 08
2.3.4 Organizational Board of Directors ………………………………… 08
2.3.5 Company Organogram ……………………………………………… 09
2.4 Areas of KGDCL ………………………………………………..…………… 10
2.4.1 KGDCL Franchise Area ……………………………………………. 10
2.4.2 KGDCL Suppliers Area …………………………………………….. 10
2.5 Buyers and Sellers of KGDCL ………………………………………………. 11
2.5.1 Sellers of KGDCL ………………………………………………….. 11
2.5.2 Buyers of KGDCL …………………………………………………. 11
Chapter 03 - Bangladesh Economic Analysis ....................................................... 12

3.1 Economic Overview ………....................................................................... 13
3.2 GDP ........................................................................................................ 13
viii
3.3 GDP Growth ........................................................................................... 14
3.4 Balance of Payment ................................................................................ 15
3.5 Inflation Rate ……………....................................................................... 16
3.6 Per Capita income ………………………………………………….. 17
3.7 Unemployment Rate …………………………………………..….. 17
3.2 Contribution of KGDCL in Bangladesh Economy …………………………... 18
Chapter 04 - Industry Information and Analysis ............................................... 20

4.1 Key players in the industry ............................................................................... 21
4.2 Porter's five forces model of industry competition ............................................ 22
4.3 Sustainable Company Analysis ........................................................................... 23
4.3.1 Environmental Sustainability ………………………………………... 24
4.3.2 Social Sustainability …………………………………………………. 24
4.3.3 Economic Sustainability …………………………………………….. 24
Chapter 05 - Company Analysis ............................................................................ 25

5.1 External Environment Analysis (PESTLE)…………………………………. 26
5.2 Internal Environment Analysis .......................................................................... 27
5.2.1 Value chain analysis ………………………………………………… 27
5.2.2 VIRO Analysis ……………………………………………………… 29
5.2.3 BCG Portfolio Matrix ……………………………………………….. 31
5.3 Financial Analysis of KGDCL (2021-2022) ..................................................... 32
5.3.1 Current Ratio Analysis ………………………………………………. 32
5.3.2 Quick Ratio Analysis ………………………………………………... 33
5.3.3 Return on Asset (ROA) Analysis ……………………………………. 33
5.3.4 Total Assets Turnover Ratio Analysis ………………………………. 33
5.3.5 Cash flows statement of KGDCL (2021-22) ………………………... 34
5.3.6 Projection of KGDCL's Last Five Year's Sales ……………………... 35
Chapter 06 - Findings .................................................................................. 37

6.1 Strategy Formulation on SWOT Analysis ........................................................... 38
6.1.1 Strategy Evaluation ............................................................................... 40
6.1.2 Choice ….......................................................................................... 41
ix
6. 1.3 Implement .............................................................................................. 42
6.1.4 Control ................................................................................................. 43
Chapter 07- Conclusion …………………………………………………………… 45

7.1 Policy Intervention …………………………………………………………… 46
7.2 Social Impact …………………………………………………………………... 47
7.3 Learning …………………………………………………………………………. 48
Bibliography ............................................................................................................. 49
i. Turnitin Report ……….……………………………………. 50
ii. Attendance …………………………………………………… 58
x
List of Figures
Figure 2.1 Collection and Distribution procedure of Natural Gas 07

Figure 2.2 Organogram of KGDCL 10
Figure 3.1 GDP in last 5 years 14
Figure 3.2 GDP growths in last 6 years 15
Figure 3.3 Balance of Payment is last 7 years 16
Figure 3.4 Inflation rate in last 6 years 16
Figure 3.5 Per capita incomes over last 6 years 17
Figure 3.6 Unemployment rate over last 7 years 18
Figure 3.7 Petrobangla's Financial Comparison 19
Figure 4.1 Porter's five Forces Model 22
Figure 5.1 PESTLE Analysis 26
Figure 5.2 Value Chain Analysis Model 28
Figure 5.3 VIRO Analysis 30
Figure 5.4 BCG Portfolio Matrix 32
Figure 5.5 Cash flows statement 35
Figure 5.6 Graphical representation of last five years' export values of KGDCL 36
xi
List of Tables
Table 2.1 Board of Directors of KGDCL 08

Table 5.1 Five Year's Sales 35
Table 6.1 SWOT Analysis 39
xii
List of Abbreviations
MBA Master of Business Administration

KGDCL Karnaphuli Gas Distribution Company Limited
BCG Boston Consulting Group
GDP Gross Domestic Product
SWOT Strenths Weakness Opportunities Threats
HR Human Resource
BGSL Bakhrabad Gas Systems Limited
BGFCL Bangladesh Gas field Company Limited
BAPEX Bangladesh Petroleum Exploration and Production Company Limited
SGFL Sylhet Gas Fields Limited
IT Information Technology
FY Financial Year
USD United States Dollar
LNG Liquefied natural gas
BERC Bangladesh Energy Regulatory Commission
xiii
Chapter – 01
Introduction
1
Business project report is based on the analysis of a particular organization in a specific industry.
Preparing a business project report is a partial requirement of Master of Business Administration
(MBA) degree which is a part of evaluation of the student. To prepare the business project
report, after considering the overall all factors, I have selected the company named Karnaphuli
Gas Distribution Company Limited (KGDCL).
Karnaphuli Gas Distribution Company Limited (KGDCL) was established in 1997 as a state-
possessed company in Bangladesh. The company operates in the Chittagong region of
Bangladesh, which is the alternate- largest megacity and one of the most important marketable
capitals of the country. KGDCL's main responsibility is the distribution of natural gas in the
region, which is sourced from the national grid. KGDCL's operations include the transmission,
distribution, and marketing of natural gas through a vast network of channels and distribution
stations.
The company's channel network covers a total length of over 2,000 kilometers, with over 1,100
kilometers of distribution channels and further than 900 kilometers of transmission channels. The
distribution stations are responsible for regulating the inflow and pressure of gas, and also for
icing the safety and trust ability of the gas force. KGDCL's commitment to furnishing continued
gas force has been necessary in perfecting the quality of life of the original population. The
vacuity of natural gas has helped to reduce the dependence on other forms of energy, similar as
coal and wood, which aren't only precious but also contribute to environmental pollution.
The vacuity of natural gas has also encouraged the growth of diligence and businesses in the
region, which has led to increased employment openings and profitable development. Still,
KGDCL also faces colorful challenges in its operations. One of the primary challenges is the
high cost of natural gas, which affects the affordability of the gas force for low- income homes.
The company also faces specialized challenges in maintaining the channel network and
increasing the safety of the gas force. Also, the company needs to misbehave with strict safety
and environmental regulations, which bear significant investment in structure and technology.
Despite these challenges, KGDCL has a devoted platoon of professionals who are committed to
furnishing dependable and affordable gas force to the people of Chittagong.
The company also has a strong emphasis on safety and environmental compliance, which ensures
that its operations are conducted in a responsible and sustainable manner. With the growing
demand for natural gas in the region, KGDCL is poised to contribute to the profitable
development of Bangladesh by furnishing a dependable source of energy to diligence,
businesses, and homes in the region.
1.1 Objective of the study
There are few significant objectives for the fulfillment of which the business project paper has
been prepared. The objectives of this business project paper which is prepared based on
Karnaphuli Gas Distribution Company Limited, are given below:
2
I. To acquire an overview of the organization.
II. To recognize the external environment as well as internal environment of the company by
various analysis.
III. To conduct natural gas industry analysis as well as company analysis using several
models such as PESTLE, Porter‟s five forces model, BCG matrix and others.
IV. To formulate strategy on SWOT analysis
1.2 Scope of the study
The scope of the study for the KGDCL project report is to provide a detailed analysis of the
company's operations, challenges, and future prospects, with a focus on its role in providing a
reliable and sustainable source of energy to the Chittagong region. The project report will
identify the future prospects of KGDCL, including its growth potential, market trends, and
competition. This will involve analyzing the company's financial performance, its strategies for
expansion, and the impact of government policies on its operations. The report will help
managers, HR professionals, students, teachers in future.
1.3 Methodology
To prepare the business project report on KGDCL, two sources of data collection have been
used. One source is Primary Source of data collection and another one is Secondary Source of
data collection.
1.3.1 Primary Sources
i. Face to face conversation

Through direct interaction with the employees of KGDCL, data has been gathered to
prepare the business project report. The advantages of using face-to-face interviews
include the ability to establish a rapport with the participant, which can lead to more in-
depth and honest responses. In addition, face-to-face interviews allow for non-verbal
communication to be observed and recorded, providing additional context and insight
into the participant's responses.
ii. Conversation through phone call

It is one of the primary sources of data collection. A portion of the total information has
been collected through the conversation over phone call with the concern representatives
of the company. It is convenient for both the interviewer and the participant, regardless of
their location. In addition, phone calls can be recorded, allowing for a detailed review of
the conversation and the opportunity to transcribe the data accurately. MD Abdul Aziz
Manager (Establishment Department) 01797-527209.
iii. Direct Observation of the organizational activities

It is another primary source of data collection. Observing the activities of the
organization, data have been collected to perform the company as well as industry
3
analysis. , direct observation allows for a more objective and detailed analysis of
organizational activities
1.3.2 Secondary Sources
There are some secondary sources of data collection to prepare the business project report
effectively. These are given below.
(i) Website of KGDCL

(ii) Articles
(iii) Journals
(iv) Annual Reports
(v) Other related and published documents of the company
1.4 Limitation of the study
1.4.1 Limited availability of data

Data regarding KGDCL's operations, financial performance, and consumer feedback may be
limited in the study. The company might not have provided all pertinent information or might
only have limited data on some elements of its operations, which could have an impact on the
study's accuracy.
1.4.2 Confidentiality
Company officials were reluctant to share a large amount of information. It is because they
wanted to maintain the confidentiality of the data and information. We know that most of
companies in our country do not wish to share their information publicly because they fear that
their competitors are going to know their secret business strategies.
1.4.3 Sample bias

The study may be limited by sample bias, particularly if the student has limited access to
stakeholders and customers of KGDCL. This may affect the generalizability of the study and
limit the ability to draw broader conclusions.
1.4.4 External factors

External factors, such as adjustments in governmental policies, the state of the economy, or
environmental issues, which are beyond of KGDCL's control, may have an impact on the study's
scope. These elements might have an impact on the study's accuracy or the applicability of its
findings.
4
Chapter - 2
Company Profile
5
Chittagong, Bangladesh's port city, serves as the country's commercial hub. Natural gas
consumption is expanding as a result of the expansion of industry and commercial clients, as
well as its use as a fuel. The government of Bangladesh has taken the commendable step of
establishing a separate gas distribution company for improved management and customer service
in the Chittagong region.
KGDCL was established in February 2010 as a government- possessed common stock company
(under the Company's Act 1913) with the thing of delivering natural gas throughout the broader
Chattogram area. Taka 30 million was the allowed capital. Due to Karnaphuli Company‟s
incapability to supply acceptable gas, power product at Raozan Power Station and Shikalbaha
Peaking Power Plant was halted in 2012.
The business bought the first Deiced Natural Gas payload in Bangladesh from Qatar in 2018, with
plans to distribute it in Chattogram. Preliminarily, the company was known as Bakhrabad Gas
Systems Limited ( BGSL), which was resolve into two independent companies, BGDCL and
KGDCL, in February 2010 for better service. KGDCL was established in response to a long-
standing desire from the people of Chattogram and larger Chattogram, and within the compass of
the government's decentralization docket.
The establishment was established by a review announcement issued by the Ministry of Power,
Energy, and Mineral coffers of the Government of the People's Republic of Bangladesh on
November 11, 2008. KGDCL began collecting income on July 1, 2010. The Government of
Bangladesh formed Karnaphuli Gas Distribution Corporation Limited as a common stock
company in February 2010. Its sanctioned capital at the onset was 30 million takas. Due to the
Karnaphuli Company‟s incapability to supply acceptable gas, power product at Raozan Power
Station and Shikalbaha Peaking Power Plant was halted in 2012.
The business bought the first Deiced Natural Gas payload in Bangladesh from Qatar in 2018, with
plans to distribute it in Chittagong City. In February 2019, a company line burst caused a three-
day gas outage in Chittagong City, Bangladesh's second largest megacity. On September 8, 2010,
the Honorable Prime Minister of the People's Republic of Bangladesh, Sheikh Hasina, formally
opened the KGDCL. Huge development enterprise are planned to ameliorate KGDCL‟s script and
insure gas force for the Chattogram region, and if those plans are enforced, the life of the broader
Chittagong region will change. The Company's primary thing was to make, enjoy, and operate
natural gas distribution installations in the Chattogram and Chattogram Hill Tract sectors, with the
capability to buy, transmit, distribute, vend, and dispose of natural gas.
2.1 Nature of Business
KGDCL is a reputable state-owned gas distribution company in Chattogram under the

administration of Ministry of Power, Energy & Mineral resource of Government. Now days it
mainly purchases gas form Qatar but previously it buys gas from Bangladesh Gas field Company
Limited (BGFCL), Sylhet Gas Field Ltd, Bangladesh Petroleum Exploration and Production
Company Ltd. After purchasing they transmit and distribute gas into different district and hilly
tracts of Chattogram.
6
2.2 Collection and Distribution Procedure of KGDCL
KGDCL buys overwhelming part of natural gas from Qatar but in previous they used to buy gas
from BGFCL, SGFL, BAPEX Station, Tallow and Chevron Gas Field. KGDCL supply gas to
domestic, commercial and industrial sector.
Figure 2.1 shows the collection, transmission and distribution procedure of Gas in the company.
First the buy gas from different national and international company then they keep those gas into
their reservation and last of all the distribute those gas to the end user.
Purchas
e
Transmission
Distribution
Figure 2.1 Collection and Distribution procedure of Natural Gas

Source: Authors' Own Compilation
KGDCL provide 24-hour customer services for the satisfaction of their customer including
domestic, industrial and commercial in the Chattogram division also hilly tracts by providing
uninterrupted supply of gas. The subsequent activities performed by KGDCL are, Pipeline
Construction Customer Connection and Category wise Gas sale.
The subsequent services performed by KGDCL are, Domestic, Commercial and Industrial
Connection, Prepaid Meter, Customer Portal, Bill paying Places, Application Portal.
2.3 Vision, Mission, Objective and Structure of KGDCL
2.3.1 Vision
The vision of KGDCL is “Uninterrupted Supply & Distribution of natural gas to the customer”.
2.3.2 Mission
The mission of KGDCL is “Affordable, safe, uninterrupted supply of natural gas to meet the demand of
the customers of KGDCL franchise area”.
7
2.3.3 Objectives
The Strategic objectives of KGDCL are
i. Ensure fuel security

ii. Efficient use of fuel and prevention of waste
iii. Increase the efficiency of human resource
The essential strategic objectives are
i. Increase transparency and ensuing accountability in official activities

ii. Bringing dynamism in performance and increasing the quality of service
iii. Development of financial and asset management
2.3.4 Organizational Board of Directors
The responsibility of board of directors are the proper management of the company and KGDCL
has a well-organized Board of Directors which consist of 10 members including one Senior
Secretary, two Joint Secretary, one First Secretary, two Director from Petro Bangla, one Retired
Additional Secretary, one Ps to Senior Secretary and Managing Director.
Table 2.2 shows the name as well as the designation of the assigned Board of Directors in of
Karnaphuli Gas Distribution Company Limited.
Table 2.1 Board of Directors of KGDCL
Chairman Md. Mahbub Hossain

Senior Secretary, Energy and Mineral Resource Division
Ministry of Power, Energy and Mineral Resources, Dhaka.
Director Shaheena Khatun

Joint Sectary (Development), Energy & Mineral Resources
Division, Dhaka.
Director Mohammas Elius Hossainbru

Joint Sectary (Admin), Energy & Mineral Resources
Division, Dhaka.
8
Director Md. Eidtajul Islam
First Secretary (Joint Secretary) (Customs
& VATA dministration), National Board of
Revenue (NRB), Dhaka.
Director Md. Altaf Hossain
Director (Administration), Petrobangla.
Director Engr. Ali Mohd. Al-Mamun

Director (Operation & Mines), Petro Bangla, Dhaka.
Director Md. Ramjan Ali

Retired Additional Secretary
Niharika -1, Iskaton Garden Officers Quarter, Old Elephant
Road, Dhaka.
Director Kazi Shajahan

PS to Senior Secretary (Deputy Secretary) Energy &
Mineral Resources Division.
Director Md. Moniruzzaman

Lake Circus, Kalabagan, Dhaka.
Director M A Mazed
Managing Director, KGDCL, Sholashahar, Chattogram.
Source: KGDCL Official Site
2.3.5 Company Organogram
The purpose of a company organogram is to provide clarity on the roles and responsibilities of
different members of the organization, as well as to establish a clear chain of command. Figure
2.2 shows the Organogram of Karnaphuli Gas Distribution Company Limited.
9
Managing
Director
Managing
Vigilance
Director
Department
department
Audit
Department
Administration Secretariat Planning & Operation & Engineering & Finance &
Division Division Development Marketing IT Division Accounts
Division
Administration Sale Prepaid Meter Revenue

Public Planning
Department Department Department Department
Relation & Department
Coordination
Purchase Maintenance IT Tax
Pipeline
Department Department Department Department
Legal Department
Affairs
Establishment Testing Budget, Fund
Warehouse
Department & Quality Department
Co.secretariate Department
Department Department
Security Welfare
department Department
Figure 2.2 Organogram of KGDCL

2.4 Areas of KGDCL
2.4.1 KGDCL Franchise Area
i. Chattogram
ii. Rangamati
iii. Khagrachori
iv. Bandorban
v. Coxsbazar
2.4.2 KGDCL Supplied Area

i. Chattogram City
ii. Sitakunda
iii. Mirsarai
iv. Hathazari
v. Raozan
vi. Patiya
10
vii. Rangonia
viii. Boalkhali
ix. Anowara
x. Fatickchari
2.5 Buyers and Sellers of KGDCL
2.5.1 Sellers of KGDCL
Now a days KGDCL purchase gas from Qatar Previously the purchase gas from some national
and international company likes,
i. BGFCL
ii. BAPEX
iii. SGFL
iv. Tallow
v. Santos
vi. Chevron gas field
2.5.2 Buyers of KGDCL
The bulk customer of KGDCL is
i. Shikalbaha Power Station (SPS)

ii. Usmania Glass Sheet Company Ltd. (UGSFL)
iii. 210 MW Thermal Power Station
iv. Eastern Refinary Ltd. (ERL)
v. Tripple Super Phosphate (TSP)
vi. Chittagong Urea Fertilizer Ltd. (CUFL)
vi. Karnaphuli Fertilizer Company Ltd. (KAFCO)
The non-bulk customers of KGDCL are
i. Captive power
ii. CNG
iii. Domestic
11
Chapter – 3
Economic Analysis of Bangladesh
12
The stagnation of global economic activity due to the ongoing Coronavirus pandemic has
adversely affected the fiscal management of Bangladesh. In order to contain and mitigate the
impact of the pandemic, the government has introduced various reform programmes and
incentive packages. With a view to augment revenue mobilisation as well as to create a
comfortable trade environment along with transparency and accountability, NBR has been
implementing a wide range of reforminitiatives. Meanwhile, following the automated system and
by creating favourable environment, the implementation of Value Added Tax law and rules made
under it has been going on
The economy appears to have weakened so far in FY 2023 (July 2022–June 2023). The chief
culprit has been weakness in the global economy; merchandise exports expanded 10% in July–
January compared to 34% in FY 2022. That said, in the same period, remittances remained
relatively robust, rising 4% year on year (FY 2022: minus 15%), largely due to the global
reopening from Covid-19. Meanwhile, higher energy prices have further hurt economic growth,
with a hike in fuel prices in August likely denting private consumption. In addition, the weakness
in the external sector has hit international reserves.
This led the government to secure a financing agreement from the IMF in November, with final
approval from the Fund‟s board granted on 30 January for a USD 4.7 billion loan. This
development means that Bangladesh, unlike its neighbors Pakistan and Sri Lanka, is highly
unlikely to suffer a balance of payments crisis for the foreseeable future. Indicators of economic
analysis of Bangladesh such as GDP, GDP Growth rate, Balance of Payment, Inflation rate, per
capita income, Savings, Employment rate, Sectorial contribution
3.1 Economic Overview
The incredible narrative of Bangladesh's progress and fight against poverty is told to the globe.
Bangladesh rose to lower-middle income status in 2015 from being one of the poorest countries at
the time of its founding in 1971. In 2026, it is expected to be removed from the UN's list of least
developed nations (LDC). Using the $1.90 per day international poverty level as a benchmark,
poverty decreased from 43.5 percent in 1991 to 14.3 percent in 2016. (using 2011 Purchasing Power
Parity exchange rate). Additionally, numerous parameters of human development outcomes
increased.
3.1.1 GDP
The GDP of Bangladesh has been steadily growing over the years. In 2020, Figure 3.1 shows
that Bangladesh's GDP was $327.2 billion, making it the 41st largest economy in the world. The
GDP growth rate was 5.2% in 2020, down from 8.2% in 2019 due to the Covid-19 pandemic.
The major drivers of GDP growth in Bangladesh are agriculture, manufacturing, and services.
Agriculture accounts for about 15% of GDP and employs about 40% of the workforce. The
manufacturing sector, which includes textiles, garments, and leather products, contributes about
13
20% of GDP and employs about 15% of the workforce. The services sector, which includes
transportation, communication, and financial services, accounts for about 55% of GDP and
employs about 45% of the workforce.
Figure 3.1 GDP in last 5 years

Source: World Bank (2023)
3.1.2 GDP Growth
The GDP growth experienced a sharp fall at 3.45 percent in FY 2019-20 from 7.88 percent
growth of pre-pandemic year However, GDP growth rebounded and stood at 6.94 percent in FY
2020-21. According to the provisional estimate of BBS, the GDP growth is expected to be 7.25
percent in FY 2021-22. During the period, the per capita GDP and GNI stood at US$ 2,723 and
US$ 2,824 respectively.
Figure 3.2 shows that the per capita GDP and GNI of the previous fiscal year were US$ 2,462
and US$ 2,591 respectively. The agriculture sector has been least affected sector by the
pandemic and recorded a growth of 3.42 percent in FY 2019-20. The growths in agriculture
sector slightly decelerated to 3.17 percent in FY 2020-21, but sharply fall at 2.20 percent in the
current fiscal year.
14
Figure 3.2 GDP growths in last 6 years
3.1.3 Balance of Payment
Bangladesh is another classic example of the „twin deficits hypothesis‟ depicting a strong causal
link between the economy‟s fiscal balance and current account balance. An empirical
investigation in 2021 finds unidirectional causation starting from the fiscal deficit to the trade
deficit, and hence the current account deficit in the long-term.
Therefore, maintaining a sustainable budget deficit is crucial in maintaining a stable current

account deficit in Bangladesh‟s economy. This phenomenon is quite prevalent for consumption-
driven developing economies like Bangladesh, characterized by high levels of domestic and
international debts.
As the country holds excess demand levels, which necessitate increased imports to match the
consumer‟s needs, and further drives inflation which has happened in the case of Bangladesh the
commodities thus being produced domestically have often been seen as less competitive in
global export markets. Figure 3.3 shows BoP of Bangladesh over last seven years.
15
Figure 3.3 Balance of Payment is last 7 years
3.1.4 Inflation Rate
Inflation is a price rise that reduces purchasing power. The rate of purchasing power decline is
reflected in the average price increase of selected products and services over time. A unit of
currency buys less due to a percentage-based price increase. Deflation, when prices fall and
buying power rises, contrasts with inflation. Figure 3.4 shows the Inflation rate of last 6 years.
Figure 3.4 Inflation rate in last 6 years

16
3.1. 5 Per Capita income
In 2020, the per capita income of Bangladesh was $2,088, which is an increase from $2,064 in
2019. This growth in per capita income reflects the country's overall economic growth and
development. However, Bangladesh is still considered a low-income country, with a per capita
income that is much lower than many other countries in the region.
The major drivers of per capita income growth in Bangladesh are economic growth and poverty
reduction. Over the years, Bangladesh has experienced significant economic growth, driven by a
strong agricultural sector, a thriving manufacturing sector, and a growing services sector. This
has led to job creation, increased productivity, and higher incomes for many people.
In addition to economic growth, poverty reduction has also played a critical role in driving per
capita income growth in Bangladesh. The country has made significant progress in reducing
poverty, with the poverty rate in figure 3.5 shows declining from 31.5% in 2016 to 20.5% in
2021. This has helped to increase the income of many people and improve their standard of
living.
Figure 3.5 Per capita incomes over last 6 years

3.1. 7 Unemployment Rate
Over the years, Bangladesh's unemployment rate has varied. In figure 3.6, the unemployment
rate increased from 4.2% in 2019 to 4.4% in 2020. The country has a sizable and expanding
population, thus even modest changes in the unemployment rate can have a big impact, despite
the fact that this may appear like a very low unemployment rate.
17
Figure 3.6 Unemployment rate over last 7 years
The poor rate of job creation compared to the size of the labor force is the main cause of
unemployment in Bangladesh. Although there is a sizable and expanding work force in the
nation, there are few job prospects, especially in the formal sector. As a result, there is a
significant amount of informal employment, with many people holding precarious, low-paying
positions. The absence of investment in job development is one of the major obstacles to
lowering Bangladesh's unemployment rate. To accommodate the expanding work force, the
nation must increase employment creation, especially in the formal sector. This necessitates
spending in vital industries including manufacturing, services, and infrastructure.
Another challenge is the need to address the skills mismatch in the labor market. The country
needs to invest in education and training programs that help workers acquire the skills and
qualifications needed to secure higher-paying jobs.
3.2 Contribution of Karnaphuli Gas Distribution Company Limited in Bangladesh Economy
According to Figure 3.7 Petrobangla's financial statements for the fiscal year 2019-2020, the
company had a total revenue of approximately BDT 430 billion (USD 5 billion) and a net profit
of around BDT 30 billion (USD 352 million). Karnaphuli Gas Distribution Company Limited
(KGDCL) is one of the leading gas distribution companies in Bangladesh, operating since 1988.
KGDCL is responsible for the distribution of natural gas in the Chittagong region of Bangladesh,
which is a significant economic hub of the country.
18
Steel, textiles, apparel, shipbuilding, and other industries have all grown thanks to the natural gas
made available by KGDCL. These industries' production costs have decreased thanks to the
usage of natural gas as their main energy source, increasing their profitability and
competitiveness. The activities of KGDCL have made a substantial contribution to the
government of Bangladesh's revenue generation. The government receives taxes and royalties
from the business, which are used for a variety of national development initiatives.
Figure 3.7 Petrobangla's financial Comparison

Source: Petrobangla Annual Report
19
Chapter – 4
Industry Information and Analysis
20
The natural gas distribution industry in Bangladesh is dominated by a few state-owned
companies, such as the Bangladesh Gas Fields Company Limited (BGFCL), the Gas
Transmission Company Limited (GTCL), and the Karnaphuli Gas Distribution Company
Limited (KGDCL). These companies are responsible for the exploration, production,
transmission, and distribution of natural gas in Bangladesh.
Bangladesh's natural gas business is regarded as being essential to the growth of the nation's
economy since it offers a consistent and reasonably priced supply of energy for a number of
industries, including manufacturing, power generation, and fertilizer production. The industry
contributes significantly to the household sector of the economy by supplying natural gas for
heating and cooking.
The majority of Bangladesh's natural gas deposits are found in the onshore Titas and Feni gas
fields, as well as the offshore Sangu and Bibiyana gas fields. Natural gas output in the US has
been rising gradually in recent years, and it will likely reach about 2.7 trillion cubic feet in 2020.
To fill the gap left by the insufficient natural gas output needed to meet the rising demand,
Bangladesh must import LNG from other countries.
In recent years, Bangladesh's natural gas distribution business has had to contend with a number
of difficulties. One of the primary issues is the industry's lack of investment, which has left it
without the infrastructure and tools it needs, disrupting the supply chain and decreasing
efficiency. The nation's political unrest, which has caused delays and disruptions in the execution
of programs and policies, is another major obstacle.
The Government of Bangladesh has been making efforts to overcome these challenges by
implementing policies and initiatives to attract private sector investment in the natural gas
industry. The government has also been working to improve the regulatory framework and
enhance the capacity of the state-owned natural gas companies to increase efficiency and
productivity.
In conclusion, the natural gas distribution industry in Bangladesh is a vital sector for the
country's economic development, providing a reliable and affordable source of energy for
various industries and the domestic sector. The industry has been facing several challenges, such
as lack of investment and political instability, but the government is taking measures to
overcome these challenges and attract private sector investment to improve the infrastructure and
efficiency of the industry.
4.1 Key players in the industry
The natural gas distribution industry in Bangladesh is primarily controlled by a few state-owned
companies. The key players in the industry include
4.1.1 Bangladesh Gas Fields Company Limited (BGFCL)

BGFCL is a state-owned company that is responsible for the exploration, production, and
transmission of natural gas in Bangladesh. The company operates several natural gas fields in the
21
country, including the Sangu and Bibiyana fields.
4.1.2 Gas Transmission Company Limited (GTCL)

Another state-owned business, GTCL, is in charge of Bangladesh's natural gas transmission. The
business runs a system of pipelines and compressor units to deliver natural gas to clients from the
source fields. Karnaphuli Gas Distribution Company Limited (KGDCL): KGDCL is a
PETROBANGLA subsidiary and is in charge of distributing and selling natural gas to industrial,
commercial, and residential customers in the Bangladeshi districts of Chittagong and Cox's
Bazar.
4.1.3 Titas Gas Transmission and Distribution Company Limited (TGTDCL)

TGTDCL is a state-owned company that is responsible for the distribution and sale of natural gas
to industrial, commercial, and domestic customers in the Dhaka, Narayanganj, and Brahmanbaria
districts of Bangladesh.
4.1.4 Jalalabad Gas Transmission and Distribution System Limited (JGDSL)

JGDSL is a state-owned company that is responsible for the distribution and sale of natural gas
to industrial, commercial, and domestic customers in the Sylhet, Moulvibazar, and Habiganj
districts of Bangladesh.
These state-owned companies operate under the supervision of the Ministry of Power, Energy
and Mineral Resources, and the Bangladesh Energy Regulatory Commission (BERC). It's
important to note that, in recent years, there have been discussions and plans to privatize some of
these state-owned gas distribution companies in order to improve the efficiency and service
quality of the industry.
4.2 Porter's Five Forces Model of Industry Competition
The five forces model is a framework developed by Michael Porter to analyze the
competitiveness of an industry. Figure 4.1 Basically Showing the Porter‟s five forces model‟s
visual representation.
22
Figure 4.1 Porter's five Forces Model
4.2.1 Threat of new entrants

In Bangladesh, the danger posed by new competitors in the natural gas distribution sector is
minimal. State-owned businesses dominate the market, and entry barriers are high because
starting a new business requires a sizable capital investment and requires obtaining licenses and
permits from the government.
4.2.2 Bargaining power of suppliers

The bargaining power of suppliers in the natural gas distribution industry in Bangladesh is
relatively low. The industry is dominated by state-owned companies and the government has
significant control over the exploration, production, and supply of natural gas.
4.2.3 Bargaining power of buyers

In Bangladesh's natural gas distribution market, purchasers have a fair amount of negotiating
power. State-owned businesses dominate the market, and the few few large industrial and
commercial clients that do exist have enormous bargaining power.
4.2.4 Threat of substitute products

The threat of substitute products in the natural gas distribution industry in Bangladesh is
relatively low. Natural gas is considered the primary source of energy for many industries and
households, and there are limited alternative sources of energy available.
4.2.5 Competitive rivalry

In Bangladesh, there is not much fierce competition in the natural gas distribution sector. State-
owned businesses dominate the sector, and there is little inter-company competition. However,
since the government intends to privatize some of these state-owned businesses, future rivalry
might become more intense.
Overall, the natural gas distribution industry in Bangladesh is relatively consolidated and
dominated by state-owned companies. The barriers to entry are high, and the government has
significant control over the exploration, production, and supply of natural gas. The industry faces
challenges such as lack of investment, political instability, and supply chain disruptions.
However, the government is taking measures to overcome these challenges and attract private
sector investment to improve the infrastructure and efficiency of the industry.
4.3 Sustainable Company Analysis
Karnaphuli Gas Distribution Company Limited (KGDCL) is a state-owned company in

Bangladesh that is responsible for the distribution of natural gas in the Chittagong and southern
districts of the country. As a company in the energy sector, KGDCL has a significant impact on
the environment and society, and thus its sustainability performance is of utmost importance.
23
4.3.1 Environmental Sustainability
KGDCL has put in place a number of strategies to lessen its environmental impact and
encourage environmental sustainability. It has made investments in a network of pipelines that
decreases the need for natural gas to be transported by road, thereby lowering greenhouse gas
emissions. The business also developed an energy efficiency and conservation policy, which
calls for actions like installing energy-efficient lighting systems in its offices and using
renewable energy sources where practical.
In order to decrease its water consumption and wastewater discharge, KGDCL has also taken
action. At addition to installing effluent treatment plants at its industrial facilities to treat
wastewater before discharge, it has developed a rainwater harvesting system in its main office
building.
4.3.2 Social Sustainability
KGDCL has undertaken several initiatives to promote social sustainability. It has implemented a
community development program that focuses on improving the lives of the people living in the
areas where it operates. The program includes initiatives such as the provision of healthcare
services, education and skills training, and infrastructure development.
The company also places a strong emphasis on health and safety, both for its employees and the
communities in which it operates. It has implemented a health and safety management system to
ensure the safety of its employees and the public. It also conducts regular safety audits and
training programs to promote a culture of safety.
4.3.3 Economic Sustainability
KGDCL contributes to the local economy by supplying natural gas for residential and
commercial use. It has helped the expansion of small and medium-sized businesses in the area
and provided employment opportunities for locals. The business has also taken steps to
strengthen its financial viability, including the introduction of a cost-management program and
the application of contemporary technologies to increase operational effectiveness.
24
Chapter - 5
Company Analysis
25
Internal analysis and external analysis are two crucial processes that companies undertake to gain
an understanding of their current position, identify strengths and weaknesses, and develop
strategies to achieve their goals.
The process of assessing a company's internal resources, capabilities, and competencies to

identify its strengths and weaknesses is known as internal analysis. This analysis entails a
comprehensive investigation of a company's internal environment, including its management
procedures, business operations, financials, and marketing plans.
Internal analysis is primarily used to pinpoint areas where a business can boost productivity,
increase efficiency, and acquire a competitive edge. It aids businesses in comprehending their
special value offer and how to best use their assets to accomplish their objectives. SWOT, value
chain, and balanced scorecard analyses are the three primary internal analysis tools.
External analysis is the process of evaluating the external environment in which a company
operates. It involves analyzing the company's industry, market trends, competition, and
regulatory environment.
5.1 External Environment Analysis (PESTLE)
Finding opportunities and dangers that could have an impact on a company's business strategy is
the goal of external analysis. It aids businesses in comprehending the competitive environment
and formulating plans to better position themselves in the market. PESTLE analysis, Porter's
Five Forces analysis, and industry analysis are the primary methods utilized for external analysis.
Companies use internal analysis and external analysis as two essential techniques to assess their
current condition, identify their strengths and weaknesses, and develop strategies to achieve their
goals. By combining the knowledge gained from these two investigations, businesses may make
informed decisions regarding their business strategy, investments, and operations.
PESTEL analysis is a framework used to identify and analyze the external macro-environmental
factors that may affect a business. The following is a PESTEL analysis of Karnaphuli Gas
Distribution Company Limited, a state-owned company in Bangladesh that distributes natural
gas:
Figure 5.1 shows the factors of PESTLE which affect an organization.
Figure 5.1 PESTLE Analysis

26
a) Political Factors: The activities of Karnaphuli Gas Distribution Company Limited may
be significantly impacted by the political stability of Bangladesh. The operations of the
corporation could be impacted by changes in governmental policies, political instability,
or corruption.
b) Economic Factors: The economic stability of Bangladesh is another crucial factor that
can impact the company's operations. Factors like inflation, exchange rates, and the
overall economic growth of the country can all influence the company's financial
performance.
c) Sociocultural Factors: Karnaphuli Gas Distribution Company Limited may be impacted

by sociocultural variables such as shifts in social values, lifestyle trends, and
demographics. For the business to make wise choices regarding marketing and customer
service, it must be aware of these issues.
d) Technological Factors: Technological advancements can have a significant impact on

the company's operations. Karnaphuli Gas Distribution Company Limited needs to be
aware of emerging technologies and ensure that its infrastructure and systems are up to
date.
e) Environmental Factors: The company‟s operations can have a significant impact on the
environment, and it needs to comply with the environmental regulations of Bangladesh. It
also needs to ensure that its operations are sustainable and do not harm the environment.
f) Legal Factors: The company‟s activities may be impacted by legal factors, such as rules
and legislation governing the energy sector. It is the responsibility of Karnaphuli Gas
Distribution Company Limited to make sure that it abides by all applicable laws and
rules.
Overall, Karnaphuli Gas Distribution Company Limited needs to monitor these external factors
continuously and adapt its operations accordingly to remain competitive in the energy sector in
Bangladesh.
5.2 Internal Environment Analysis
5.2.1 Value Chain Analysis
Karnaphuli Gas Distribution Company Limited is a state-owned company in Bangladesh that is

responsible for the distribution of natural gas to different parts of the country. The company is a
subsidiary of Petrobangla, the national oil, gas, and mineral resource company of Bangladesh. In
this article, we will conduct a thorough value chain analysis of Karnaphuli Gas Distribution
Company Limited to understand the different activities the company undertakes to deliver value
to its customers.
27
Figure 5.2 shows that, organizational value creating activities can be divided into two groups.
One is called Primary Activities and another is called Supporting Activities.
Figure 5.2 Value Chain Analysis Model

a) Inbound Logistics
Inbound logistics are the initial phase in Karnaphuli Gas Distribution Company Limited's value
chain analysis. Natural gas is obtained by the corporation from several upstream suppliers and
transported to its storage facilities. Natural gas is transported across the nation by the company's
enormous network of pipes. To move natural gas to other regions, the corporation also uses other
forms of transportation like trucks and ships. The corporation must guarantee both the excellent
quality of the gas it sources and the effectiveness and affordability of its transportation strategies.
b) Operations
Natural gas is processed, stored, and distributed to clients as part of Karnaphuli Gas Distribution
Company Limited's operations. Modern gas processing equipment owned by the corporation is
used to clean and prepare natural gas for use. Before distributing natural gas to clients, the
business stores it in a number of storage facilities. The corporation also maintains a vast network
of pipes and other channels for the distribution of natural gas throughout the nation. To cut
expenses, the business must make sure that its systems and infrastructure are current and that its
operations are productive.
c) Outbound Logistics
The company's outbound logistics involve delivering the natural gas to its customers through its
extensive network of pipelines and other distribution channels. The company needs to ensure that
its delivery methods are reliable and that it meets its customers' needs. The company has several
customer service centers that address customer queries and complaints. The company also
provides emergency services to its customers in case of gas leakages or other emergencies.
28
d) Marketing and Sales
The marketing and sales activities of Karnaphuli Gas Distribution Company Limited involve
promoting its services and products to potential customers and building strong relationships with
existing customers. The company needs to ensure that it communicates its value proposition
effectively and that it provides excellent customer service. The company has several marketing
and sales teams that conduct market research and develop marketing strategies to attract new
customers. The company also conducts different promotional activities like advertising and
sponsoring events to promote its services.
e) Service
The service activities of Karnaphuli Gas Distribution Company Limited involve providing
support and maintenance services to its customers. The company needs to ensure that its service
offerings are of high quality and that it meets its customers' needs. The company provides
different types of services like installation, maintenance, and repair services to its customers. The
company also conducts different training programs to educate its customers on gas safety and
usage.
f) Procurement
The company's procurement activities include buying supplies like pipes, valves, and other
equipment that are necessary for its operations. The business must make sure that it sources its
inputs from reputable vendors and that it bargains for advantageous terms. The business has a
number of procurement teams that evaluate vendors and bargain contracts with various
providers.
g) Human Resource Management
The human resource management activities of Karnaphuli Gas Distribution Company Limited
involve recruiting, training, and managing its employees. The company needs to ensure that it
hires and retains the right talent and that it provides a safe and healthy working environment. The
company has several HR teams that conduct recruitment drives.
5.2.2 VIRO Analysis
VIRO analysis is a strategic tool used to evaluate the internal resources and capabilities of a
company. The acronym stands for Value, Rarity, Imitability, and Organization. In this section,
we will conduct a VIRO analysis of Karnaphuli Gas Distribution Company Limited to
understand its competitive advantages and internal strengths.
Figure 5.3 shows that how the VRIO framework works for an organization. VRIO analysis is one
of these tools for analyzing a firm's internal resources. The original creator of the tool, J. B.
Barney, established four characteristics that a firm's re-sources must have in order to be a source
29
of prolonged competitive advantage in his 1991 article, "Firm Resources and Sustained
Competitive Advantage."
Figure 5.3 VIRO Analysis

i. Value
The natural gas distribution industry is essential for Bangladesh's economic growth, and
Karnaphuli Gas Distribution Company Limited plays a critical role in ensuring the
reliable supply of natural gas to industries, businesses, and households. Natural gas is a
valuable resource in Bangladesh as it is used for power generation, industrial production,
and household cooking. Karnaphuli Gas Distribution Company Limited's ability to
distribute natural gas to different parts of the country is a valuable asset that provides
significant value to its customers.
ii. Rarity
Karnaphuli Gas Distribution Company Limited is the only state-owned company in
Bangladesh that is responsible for the distribution of natural gas. The company's
extensive infrastructure, including its gas processing plants, pipelines, and storage
facilities, is not easily replicated by competitors. This rarity of resources gives the
company a significant competitive advantage in the natural gas distribution industry.
iii. Imitability
The natural gas distribution industry requires significant capital investments, expertise,
and government support. These factors make it difficult for new entrants to imitate the
company's resources and capabilities. Karnaphuli Gas Distribution Company Limited has
30
also invested heavily in its infrastructure, which is not easily replicable by competitors.
Therefore, the company's resources and capabilities are relatively difficult to imitate.
iv. Organization
Karnaphuli Gas Distribution Company Limited has a well-organized structure that
ensures the efficient and effective distribution of natural gas. The company has highly
skilled and trained employees who work in different departments such as operations,
customer service, and human resource management. The company has also invested in
different training programs to develop the skills and capabilities of its employees. This
well-organized structure and skilled workforce give the company a competitive
advantage in the natural gas distribution industry.
The VIRO analysis of Karnaphuli Gas Distribution Company Limited reveals that the company
has several competitive advantages and internal strengths that make it a valuable player in the
natural gas distribution industry in Bangladesh. The company's extensive infrastructure, skilled
workforce, and well-organized structure are not easily replicable by competitors. These resources
and capabilities give the company a competitive advantage in the industry, which it can leverage
to achieve its strategic goals and objectives.
5.2.3 BCG Portfolio Matrix
The BCG matrix is a tool used for portfolio analysis to assess a company's business units or
product lines based on their growth potential and market share. In this section, we will use the
BCG matrix to analyze the business units of Karnaphuli Gas Distribution Company Limited.
Karnaphuli Gas Distribution Company Limited has two main business units:
i. Gas distribution to households and commercial customers

ii. Gas distribution to power plants and industries
This business unit has a high market share and is in the maturity stage of its life cycle. The
demand for natural gas for household and commercial use has been increasing in Bangladesh due
to the government's initiative to expand the usage of natural gas. Karnaphuli Gas Distribution
Company Limited is the only state-owned company responsible for the distribution of natural gas
in Bangladesh, and it has a strong market position. Therefore, this business unit can be classified
as a "Cash Cow" in the BCG matrix.
This business unit has a lower market share compared to the gas distribution to households and
commercial customers. However, it is in the growth stage of its life cycle as the demand for
natural gas in power plants and industries is increasing due to the government's initiative to
reduce the dependence on coal and oil for energy production. Karnaphuli Gas Distribution
Company Limited has been expanding its infrastructure to cater to the increasing demand for
natural gas in power plants and industries. Therefore, this business unit can be classified as a
"Question Mark" in the BCG matrix.
31
Figure 5.4 shows the BCG matrix chart which represents four elements named stars, cash cows,
question marks and dogs.
Figure 5.4 BCG Portfolio Matrix

The BCG matrix analysis of Karnaphuli Gas Distribution Company Limited reveals that the
company has a strong market position in the gas distribution to households and commercial
customers, which is a "Cash Cow" business unit. The gas distribution to power plants and
industries is a "Question Mark" business unit that has a growth potential but a lower market
share. The company needs to focus on expanding its infrastructure and improving its market
share in this business unit to turn it into a "Star" in the BCG matrix. Overall, the BCG matrix
analysis suggests that Karnaphuli Gas Distribution Company Limited should maintain its market
leadership in the gas distribution to households and commercial customers while investing in the
gas distribution to power plants and industries to achieve a higher growth rate in the future.
5.3 Financial Analysis of KGDCL (2021-2022)
5.3.1 Current Ratio Analysis
A financial ratio called the current ratio assesses a company's capacity to settle its current
liabilities with its current assets. It is computed by subtracting current obligations from current
assets. A greater current ratio suggests that the business has sufficient current assets to cover its
immediate liabilities. The current ratio is a crucial indicator of a company's liquidity, and
creditors, investors, and analysts frequently use it to assess a company's financial standing.
32
Formula to calculate Current Ratio = (Current Asset / Current Liability)
Current Ratio of KGDCL = (38,262,436,544 / 11,485,304,610

= 3.33: 1
5.3.2 Quick Ratio Analysis
The Quick Ratio, often called the Acid-Test Ratio, is a financial ratio that assesses a company's
capacity to cover its most liquid assets against its short-term obligations. It is determined by
taking current assets and prepaid costs out of the equation, then dividing the result by current
liabilities. Because it doesn't include inventory, which could be difficult to turn into cash, the
quick ratio is a stricter indicator of a company's liquidity than the current ratio. A greater quick
ratio shows that the business has the liquid assets necessary to cover its immediate obligations.
Formula to calculate Quick Ratio = (Current Assets - Inventories) / Current Liabilities
Quick Ratio of KGDCL = (38,262,436,544- 672,344,293) / 11,485,304,610

= 3.27: 1
5.3.3 Return on Asset (ROA) Analysis
Return on Asset (ROA), often referred to as return on Investment (ROI), is a financial statistic
that assesses how well a firm uses its assets to produce earnings in order to determine its
profitability. By dividing net income by total assets, it is computed. A greater ROA shows that
the firm is making the most of its resources to make money. Investors and analysts frequently
use the ROA to assess a company's financial performance since it is a significant indicator of a
company's profitability.
Formula to calculate ROA = (Net Income / Total assets)
ROA of KGDCL = (11,880,274,830/ 48,142,610,443)

= 0.27 X 100
= 27%
5.3.4 Total Assets Turnover Ratio Analysis
A financial statistic called the total assets turnover ratio assesses how well a business uses its
assets to produce revenue. It is computed by subtracting total assets from net sales. A greater
total assets turnover ratio shows that the business is making good use of its assets to drive sales.
Investors and analysts frequently use the total assets turnover ratio to assess a company's
financial performance since it is a key indicator of its efficiency.
33
Formula to calculate Total Assets Turnover Ratio = (Net Sales / Total Assets)
Total Assets Turnover Ratio of KGDCL = (74,900,751,259/ 48,142,610,443)
= 1.56: 1
5.3.5 Cash flows statement of KGDCL (2021-22)
The inflows and outflows of cash and cash equivalents during a certain time period are displayed
on a cash flow statement, which is a financial statement. It offers details about how a company or
organization generates and uses money. Operating operations, investing activities, and financing
activities make up the statement's three standard sections.
The cash flows from the company's main business activities, such as sales, inventory purchases,
and supplier payments, are displayed in the operational activities section.
The cash flows from the company's long-term investments in assets like property, plant, and
equipment are displayed in the section on investing operations.
The cash flows from the company's financing operations, such as the issuance or repurchase of
shares, borrowing or repaying loans, and paying dividends to shareholders, are displayed in the
section under "Financing Activities." Because it sheds light on a company's liquidity, solvency,
and general financial health, the cash flow statement is crucial. It aids analysts and investors in
assessing a company's capacity to pay off debt, engage in expansion, and distribute earnings to
shareholders by illuminating how cash is generated and used by the business.
Figure 5.5 Cash flows statement shows the comparison between 2021-22 and 2020-21.
34
Figure 5.5 Cash flows statement
Source: KGDCL‟s Audit Report 2021-22
5.3.6 Projection of KGDCL's Last Five Year's Sales
Table 5.1 shows us KDGCL's sales of last 5 years. The sales values are demonstrated in pieces.
Table 5.1 Five Year's Sales
Year Sales value(BDT)

2021-2022 47,900,751,259
2020-2021 34,425,724,005
2019-2020 33,921,904,308
2018-2019 28,319,453,524
2017-2018 24,026,560,537
35
Figure 5.6 Graphical representation of last five years' export values of KGDCL.
36
Chapter – 6
Findings
37
The Chittagong region of Bangladesh receives gas from the natural gas distribution firm
KGDCL. With more than 350,000 customers, the corporation holds a considerable market share.
The financial performance of KGDCL has been solid, with revenue and profits rising
consistently over time. The business has also made considerable investments in infrastructure
growth, extending its reach and offering customers greater services.
The market position of KGDCL is one of its advantages. The business is well-known in the
Chittagong area and has made a name for it as a trustworthy natural gas supplier. As a result,
KGDCL has been able to develop a network of devoted clients and produce steady cash streams.
Another strength of KGDCL is its financial performance. The company has been able to increase
its revenue and profits over the years, thanks to its expanding customer base and investments in
infrastructure development. This financial strength has helped KGDCL to reinvest in its
operations, expand its reach, and improve its services.
6.1 Strategy Formulation on SWOT Analysis

Table 6.1 shows that strategy formulation on SWOT analysis that explains strengths,
weaknesses, opportunities and threats and related maximization & minimization of this strategy.
38
Strengths Weaknesses
SWOT i. Established infrastructure
and distribution networks
i. Limited investment and
funding
External Factor
ii. Solid engagements and ii. Dependence on government
relationships with the policies and regulations
Analysis government and other
stakeholders.
iii. Lack of modern technology
and equipment
iii. Experienced and dedicated iv. Limited access to natural
workforce gas resources
iv. Strong reputation and brand
recognition
v. Insufficient geographical
Internal Factor coverage
v. Good customer service
Opportunities Maxi – Maxi Strategy Mini – Maxi Strategy

i. Growing demand for natural
gas in Bangladesh, particularly
in the industrial and Growing demand for natural Potential for increased
commercial sectors foreign investment and
gas in Bangladesh
ii. Government programs aimed
at boosting the infrastructure
partnerships
and productivity of the gas
distribution sector.
iii. Potential for increased foreign
investment and partnerships
iv. Opportunities for expansion
and diversification in the
renewable energy sector
v. Introduction of new
(Strengths-Opportunities) (Weakness- Opportunity)
technologies such as LNG
importation, storage and
regasification
Threats Maxi – Mini Strategy Mini – Mini Strategy

i. Political instability and
regulatory changes
ii. Rivalry with other energy
Strong partnerships and Political instability and
sources like coal and collaborations with regulatory changes
alternative energy. government and other
iii. Harsh weather conditions stakeholders
and natural disasters that
could harm infrastructure.
iv. Economic downturns and
fluctuations in gas prices
that can affect profitability
v. Vandalism, theft, and (Strengths-Threats) (Weakness-Threats)
sabotage of pipelines and
equipment
vi. Environmental and safety
concerns
Table 6.1 SWOT Analysis
39
6.1.1 Strategy Evaluation
a. Growing demand for natural gas in Bangladesh
For
i. Bangladesh's population and economy are expanding quickly, which is increasing

demand for energy, particularly natural gas.
ii. Natural gas has been prioritized for investment and development by the Bangladeshi
government, offering companies the possibility to support the growth of the country's
economy.
iii. Due to Bangladesh's poor natural gas reserves, imports are required to meet domestic
demand, which presents a business opportunity for organizations that can provide
dependable and affordable import solutions.
Against
i. Bangladesh has limited infrastructure for transporting and distributing natural gas, which
can pose a challenge for companies trying to enter the market.
ii. As global natural gas supply competition heats up, Bangladesh may have trouble finding
sufficient supplies at reasonable costs.
iii. Bangladesh is vulnerable to natural disasters and other climate-related risks, which could
disrupt the natural gas supply chain and impact the market.
b. Strong partnerships and collaborations with government and other stakeholders
For
i. The government of Bangladesh has a history of collaborating with the private sector to
drive economic growth, providing opportunities for companies to form strong
partnerships with government entities.
ii. Cooperation with regional groups and other interested parties is essential to establishing
credibility and confidence in the Bangladeshi market.
iii. Strong partnerships can help companies navigate the complex regulatory environment
and gain access to resources and support from the government.
Against
i. The political situation in Bangladesh can be volatile, and changes in government policies
and leadership can disrupt established partnerships and relationships.
ii. Because corruption is such a big problem in Bangladesh, businesses can find it difficult
to work with the government and other stakeholders in an ethical and long-lasting way.
iii. Local communities and other stakeholders may have competing interests and priorities,
making it difficult to achieve consensus and build effective partnerships.
40
c. Potential for increased foreign investment and partnerships
For
i. Bangladesh has a relatively open and business-friendly investment climate, providing

opportunities for foreign companies to invest and partner with local firms.
ii. The Bangladeshi government is actively seeking foreign investment and partnerships to
drive economic growth, particularly in priority sectors such as natural gas.
iii. Foreign companies may bring innovative technologies and expertise that can help
overcome infrastructure and other challenges in the Bangladeshi market.
Against
i. Bangladesh has a history of political instability and regulatory changes, which can create
uncertainty and risk for foreign investors and partners.
ii. Local businesses may perceive foreign partnerships and investments as a danger to their
operations, which could result in pushback and resistance.
iii. Cultural and linguistic differences can create challenges for foreign companies trying to
establish themselves in the Bangladeshi market.
d. Political instability and regulatory changes
For:
i. Bangladesh has made progress in improving political stability in recent years, which can
provide a more favorable environment for companies to operate in.
ii. Regulatory changes might give businesses the chance to expand their operations or enter
new markets.
iii. Companies that can adapt quickly to changing political and regulatory environments may
have a competitive advantage in the Bangladeshi market.
Against:
i. Political instability remains a significant challenge in Bangladesh, and changes in

government policies and leadership can create uncertainty and risk for companies
operating in the market.
ii. Companies who are attempting to negotiate a complicated and frequently opaque
regulatory environment may find it difficult as a result of regulatory changes.
iii. Companies that are heavily dependent on government contracts or support may be
particularly vulnerable to political instability and regulatory changes in Bangladesh.
5.1.2 Choice
Choosing the ideal point is determined by a number of variables, such as a company's

capabilities, resources, and risk tolerance. The rising demand for natural gas in Bangladesh,
41
however, can be seen as the factor that offers the most potential for profit for businesses wishing
to enter the Bangladeshi natural gas industry.
Bangladesh is anticipated to have ongoing growth in the need for energy, notably natural gas,
due to its rapidly expanding population and economy. Further underscoring the prospects for
businesses in this market, the Bangladeshi government has designated natural gas as a priority
sector for investment and development. Businesses who are able to offer dependable and
affordable natural gas solutions will be well-positioned to grab a larger portion of this market.
5.1.3 Implement
Here are some guidelines for companies looking to implement their choice to invest in the
Bangladeshi natural gas market:
i. Conduct thorough market research

Companies should conduct comprehensive market research to gain a deep understanding
of the Bangladeshi natural gas market, including supply and demand dynamics,
infrastructure and regulatory requirements, and key players in the industry.
ii. Develop a strong local network

Building relationships with local partners, suppliers, and other stakeholders is crucial to
successfully operating in the Bangladeshi market. Companies should work to establish a
strong local network and identify potential partners and collaborators.
iii. Adapt to local conditions

Bangladesh has a unique culture, language, and business environment, and companies
should be prepared to adapt their business practices to local conditions. This may include
developing localized marketing and communication strategies, as well as adapting
products and services to meet local needs.
iv. Invest in local talent

Building a skilled and experienced local workforce is critical to the success of any
business operating in Bangladesh. Companies should invest in local talent development
programs and seek to hire and train local employees wherever possible.
v. Prioritize social responsibility and sustainability

Bangladesh faces a range of environmental and social challenges, and companies should
prioritize sustainability and social responsibility in their operations. This may include
investing in renewable energy solutions, reducing waste and emissions, and engaging
with local communities to build trust and legitimacy.
42
vi. Stay informed and adaptable
Bangladesh's political and regulatory environment can be unpredictable, and companies
should stay informed about changes that could impact their operations. They should also
remain flexible and adaptable, with contingency plans in place to respond to unexpected
developments.
By following these guidelines, companies can effectively implement their choice to invest in the
Bangladeshi natural gas market and position themselves for long-term success in this growing
and dynamic market.
5.1.3 Control
Implementing a control mechanism can help companies ensure that their investment in the
Bangladeshi natural gas market is successful and sustainable. Here are some suggested control
mechanisms:
i. Regular monitoring of performance

Companies should regularly monitor their performance in the Bangladeshi natural gas
market against key metrics such as sales, market share, and profitability. This can help
them identify potential issues early and take corrective action as needed.
ii. Risk management

Companies should have a comprehensive risk management strategy in place to identify
and mitigate potential risks in the Bangladeshi market. This may include risks related to
political instability, regulatory changes, currency fluctuations, and supply chain
disruptions.
iii. Compliance with local regulations

Companies must comply with local regulations and laws in Bangladesh to avoid legal and
reputational risks. Regular monitoring and compliance checks can help ensure that the
company is meeting its legal obligations.
iv. Stakeholder engagement

Building strong relationships with key stakeholders such as government officials, local
communities, and suppliers can help companies navigate the Bangladeshi market more
effectively. Regular engagement with stakeholders can help identify potential issues early
and build trust and goodwill.
v. Continuous improvement
Companies should continuously evaluate their operations and look for ways to improve
their performance in the Bangladeshi market. This may include investing in new
technologies, building a more skilled workforce, or developing new products and services
to meet changing market demands.
43
By implementing these control mechanisms, companies can mitigate risks, ensure compliance,
and position themselves for long-term success in the Bangladeshi natural gas market.
44
Chapter – 7
Conclusion
45
After finishing this project report, (KGDCL) has offered insightful information about the
operations, difficulties, and prospective solutions of the company. We have a thorough
awareness of KGDCL's market position, clientele, financial performance, and infrastructure
expansion ambitions thanks to this project.
We have also noted a number of difficulties faced by KGDCL, such as its reliance on outside
supplies for natural gas, the requirement to upgrade its pipeline infrastructure, and difficulties
with customer service and invoicing procedures.
Completing this project has improved our research, analytical, and communication skills in
addition to our knowledge about KGDCL and the natural gas sector. These abilities will be
useful for both our academic and professional activities in the future.
Overall, this project report has given readers a thorough insight of KGDCL and the Bangladeshi
natural gas market. It has outlined the firm's assets and liabilities and offered suggestions for
how KGDCL might overcome its difficulties and keep delivering dependable, superior services
to its clients.
7.1 Policy intervention
Some potential policy interventions that may be considered after completing a project report
could include:
7.1.1 Regulation
For the purpose of enhancing the security, effectiveness, and caliber of the gas distribution
services offered by Karnaphuli Gas Distribution Company Limited, the government might think
about enacting new legislation or amending existing ones.
7.1.2 Investment
The government might decide to invest in the expansion of Karnaphuli Gas Distribution
Company Limited's infrastructure to provide gas access to more households, businesses, and
industries in the region.
7.1.3 Subsidies
In order to decrease the demand for gas and lower greenhouse gas emissions, the government
might offer subsidies or financial incentives to promote the use of clean energy sources or
energy-efficient technologies, such as solar panels or efficient appliances.
7.1.4 Community outreach

The government might create outreach initiatives to inform locals about the advantages of using
gas for heating and cooking, as well as the precautions that need be taken to avoid mishaps.
7.1.5 Partnership
The government might encourage Karnaphuli Gas Distribution Company Limited to partner with
other companies or organizations to develop innovative solutions that can improve the quality of
46
its services and lower its operating costs.
The policy interventions that might be implemented after completing a project report for
Karnaphuli Gas Distribution Company Limited will depend on the priorities and goals of the
government and the gas distribution company itself.
7.2 Social Impact of This Report
The social impact of completing this project report on Karnaphuli Gas Distribution Company
Limited in Bangladesh can vary depending on the outcomes and recommendations of the report.
However, some potential social impacts of completing this project report could include:
7.2.1 Accessing to improved energy

The study recommends expanding the infrastructure of Karnaphuli Gas Distribution Company
Limited to increase the number of residences, businesses, and industries in the region that have
access to gas. This could give more people access to affordable, clean energy. The inhabitants of
the area could gain from this, especially those who currently rely on traditional energy sources
like wood, coal, or kerosene, which are typically more polluting.
7.2.2 Exaggerate health and safety

In order to reduce the possibility of accidents, injuries, and fatalities caused by gas leaks or
explosions, this study advises improving gas distribution safety legislation and practices. This
might enhance public health and safety, particularly in urban areas where there are more gas
users.
7.2.3 Employment and economic growth

The paper suggests that Karnaphuli Gas Distribution Company Limited expand its activities and
infrastructure, which might lead to the creation of more jobs and regional economic
development. This could improve the local population's quality of life, particularly for those
living in rural areas where employment opportunities may be limited.
7.2.4 Benefits of overall environment

In order to reduce the demand for gas and greenhouse gas emissions, this paper suggests
encouraging the adoption of sustainable energy sources or energy-efficient devices. This might
assist to lessen the consequences of climate change and have a good influence on the ecosystem.
Overall, the social impact of completing this project report on Karnaphuli Gas Distribution
Company Limited in Bangladesh will depend on the recommendations of the report and the
extent to which they are implemented. The potential social impacts mentioned above could be
significant and could help to improve the quality of life of the people in the region while
promoting sustainable development.
47
7.3 Learning outcome from the study
7.3.1 Knowledge of KGDCL's operations

I have gained an in-depth understanding of KGDCL's operations, including its market position,
customer base, and financial performance. I have also learned about the company's infrastructure
development initiatives, including pipeline construction and equipment installation.
7.3.2 Understanding of the challenges faced by KGDCL

I have try to understand the challenges faced by KGDCL, including its dependence on external
sources for natural gas, the need to expand its pipeline infrastructure, and issues related to
customer support and billing processes.
7.3.4 Development of analytical skills

After completing a project report on KGDCL has taught me gathering data, analyze data, and
draw conclusions based on their findings.
7.3.5 Understanding of the natural gas industry

Through the research on KGDCL, makes me understand of the natural gas industry, including its
role in the economy, the challenges faced by the industry, and the potential for growth and
possibility.
Overall, completing a project report on KGDCL can help learners develop their knowledge and
skills in various areas, including research, analysis, communication, and industry understanding.
These skills can be applied in future academic or professional endeavors.
48
Bibliography
KGDCL. (2021, February 1). KGDCL at a glance. Retrieved from http://www.kgdcl.gov.bd/
KGDCL. (2021). History of Company: KGDCL index. Retrieved February 1, 2021, from
http://kgdcl.gov.bd/
Compensation Management: Definition, Objectives, Importance. (n.d.). iEduNote. Retrieved

from https://www.iedunote.com/compensation-management
Milkovich, G. T., Newman, J. M., & Ratnam, C. V. (2013). Compensation (9th ed.). New
Delhi, India: McGraw Hill Education.
What is Performance Management? (n.d.). HRHelpBoard. Retrieved from

https://www.hrhelpboard.com/
What is an external environmental analysis? (n.d.). Smart Capital Mind. Retrieved from
https://www.smartcapitalmind.com/what-is-an-external-environmental-analysis.htm
Armstrong, M. B., & Landers, R. N. (2018). Gamification of employee training and

development. International Journal of Training and Development, 22(2), 162-169.
Halim, M. A., & Rahman, M. S. (2018). The Bangladesh Labour Code. 2006 (15th ed.).
Dhaka: CCB Foundation.
Arora, M. (n.d.). INDUSTRIAL RELATIONS - HRM & IHRM. LinkedIn. Retrieved from
https://www.linkedin.com/pulse/20140807122102-245737269-industrial-relations-hrm
The Financial Express. (n.d.). Youth unemployment rate in Bangladesh stands at 10.6pc:
ILO. Retrieved from https://thefinancialexpress.com.bd/national/youth-unemployment-
rate-in-bangladesh-stands-at-106pc-ilo-1660230652
Finance division, ministry of finance. (n.d.). Bangladesh Economic Review. Finance

Division, Ministry of Finance-Government of the People's Republic of Bangladesh.
Retrieved from https://mof.portal.gov.bd/site/page/28ba57f5-59ff-4426-970a-
bf014242179e/Bangladesh-Economic-Review
49
50
51
52
53
54
55
56
57
58

The Standard

Uploaded by

Copyright:

Available Formats

You might also like

The Standard

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Standard

Uploaded by

Copyright:

Available Formats

Department of Human Resource Management

Atair Rahaman Molla

Dr. Md. Aftab Uddin

Date of Submission: 10th May, 2023

Date: 10th May, 2023

Company overview, vision,

GDP, GDP growth, BoP,

Chapter 4 Porter's five forces analysis,

Chapter 5 Value-chain analysis, VRIO

Findings with SWOT

Policy intervention. Social

Figure Technical Map

Chapter 01- Introduction ....................................................................................... 01

Chapter 02 - Company Profile .............................................................................. 05

Chapter 03 - Bangladesh Economic Analysis ....................................................... 12

Chapter 04 - Industry Information and Analysis ............................................... 20

Chapter 05 - Company Analysis ............................................................................ 25

Chapter 06 - Findings .................................................................................. 37

Chapter 07- Conclusion …………………………………………………………… 45

Figure 2.1 Collection and Distribution procedure of Natural Gas 07

Table 2.1 Board of Directors of KGDCL 08

MBA Master of Business Administration

1.1 Objective of the study

1.2 Scope of the study

1.3.1 Primary Sources

i. Face to face conversation

ii. Conversation through phone call

iii. Direct Observation of the organizational activities

1.3.2 Secondary Sources

(i) Website of KGDCL

1.4 Limitation of the study

1.4.1 Limited availability of data

1.4.3 Sample bias

1.4.4 External factors

2.1 Nature of Business

KGDCL is a reputable state-owned gas distribution company in Chattogram under the

Figure 2.1 Collection and Distribution procedure of Natural Gas

2.3 Vision, Mission, Objective and Structure of KGDCL

i. Ensure fuel security

The essential strategic objectives are

i. Increase transparency and ensuing accountability in official activities

2.3.4 Organizational Board of Directors

Table 2.1 Board of Directors of KGDCL

Chairman Md. Mahbub Hossain

Director Shaheena Khatun

Director Mohammas Elius Hossainbru

Director Engr. Ali Mohd. Al-Mamun

Director Md. Ramjan Ali

Director Kazi Shajahan

Director Md. Moniruzzaman

Source: KGDCL Official Site

2.3.5 Company Organogram

Administration Sale Prepaid Meter Revenue

Figure 2.2 Organogram of KGDCL

2.4 Areas of KGDCL

2.4.1 KGDCL Franchise Area

2.4.2 KGDCL Supplied Area

2.5 Buyers and Sellers of KGDCL

2.5.1 Sellers of KGDCL