Notes on understanding the entity

Background
McDonald Steel Building products ltd. (MSBPL) is the pioneer in pre-engineered steel building
construction in Bangladesh. McDonald has experience in Pre-Fabricated Steel Buildings for
about twenty years & established its own production facility in 1998. It was first in Bangladesh
to deliver pre-engineered building solutions through the delivery of high quality support services,
industry leading expertise and a strong commitment to improve overall performance in the
industry.

Products
The Company delivers products related to pre-engineered and structural steel buildings from its
factory located in Gazipur. The Company produces a range of steel products for the following
structures:

Factory Buildings
Warehouses
Power Plant Shed
Gymnasiums
Poultry and Dairy Farms
Cold Storages
Railway Platform Shed
Office and Residential Multi storied Buildings
High Rise Shopping Centers
Showrooms
Supermarkets
Distribution Centers
Aircraft Hangers
Exhibition Halls
Labour Camps
Entertainment Parks
School and College
Low cost housing
Steel Mills
Hospitals
Diagnostic Centers
Bridge Girders
Water Towers
Steel Platforms

Steel Over Bridges

Steel Stairs
Various other usages

Customers
The Companies target customers are generally industrial undertakings. The major target
customers are companies in the garments sector, but the Company also manufactures steel
structures for government structures, hospital buildings, commercial buildings etc. The
marketing department of the Company assesses and selects its customers based on market
information that is collected by its employees (criteria of selection: reputation, size of project,
historical payment tendencies).
The following outlines a list of major clients of the Company:

ACI Formulation Ltd.

City Group
Berger Paint Bangladesh Ltd.
Coats Bangladesh Ltd.
Jamuna Bridge Project (all facility buildings)
Kallol Group
Lafarge Surma Cement Plant
Square Pharmaceuticals Ltd
Viyellatex

Approximate number of clients: 326.

Competitors
From our preliminary discussion with the management, we have gauged that the industry for prefabricated steel structures is highly competitive. It has been historically seen that former
employees of the company go on to create other competitor companies and those are the ones
leading the market. The Company assumes that it holds the fifth position concurrently, in spite of
being a pioneer in this field.
The major competitors are listed as follows according to their market share:
1.
2.
3.
4.

Buildtrade
Sarker Steel
Bangladesh Building System
PEB Steel Alliance Limited

Suppliers
The suppliers of the company supply the basic raw materials such as Bondek, Colorbond-XRY,
Mild Steel Plate, Purlin Feed Raw etc. Most of these raw materials are imported from overseas;
the color sheets are imported from India and MS plates are usually imported from Japan. Some
of the items are also procured locally, but this amount is insignificant.
The key suppliers from whom the Company procures its raw materials are as follows:
1. Nippon Steel & Sumikin Bussan Corporation, Japan.
2. Tata Bluescope Steel Limited, India.
3. ArcelorMittal International Luxembourg S.A.
Joint venture with supplier
In 2014, McDonald Steel Building Company has formed a joint venture Nippon Steel & Sumikin
Bussan Corporation, Japan. The joint venture was formed with the intention of trading MS Steel
plates in the local market.