INDUSTRIAL TOUR REPORT

On
HEIDELBERG CEMENT BANGLADESH LIMITED

Prepared To:
Mr.Shanewaz Mahmood Sohel
Associate Professor
Department of Management
University of Chittagong

Prepared By:
Nayem Uddin
B.B.A (4th Year)
ID no: 12302155
Session: 2011-12
Department of Management
University of Chittagong

Date of Submission: 23th may, 2017

 Letter of Submission

May 23
To
Mr. Shanewaz Mahmood Sohel
Associate Professor
Department of Management
University of Chittagong.

Subject: Submission of tour report on Heidelberg Cement Bangladesh Ltd.

Sir,
With the greatest pleasure, I would like to submit my report on “Heidelberg Cement
Bangladesh Ltd” that have assigned to me to prepare as the analytical requirement of my
BBA(4th year) course under the Dept. of Management, University of Chittagong. During the
tour and preparation of report on it, I have seen and learnt how a capital intensive industry
does really work. It has been a very positive and uplifting experience as I have learnt
practically a lot that would not be possible otherwise.

I sincerely hope that you would be gracious enough to accept my tour report for evaluation
and thus oblige thereby.

Sincerely yours,

Nayem Uddin
ID no: 12302155
Session: 2011-12
BBA (4th Year)
Department of Management Studies
University of Chittagong
 Preface

The Industrial Tour is a program that is essential for gathering practical knowledge, because
practical knowledge has no alternative. A perfect co-ordination between through and
practice is a paramount importance in the context of the modern business world. In order to
resolve the dichotomy between these two areas, the Dept. of Management, University of
Chittagong arranges ‘Industrial Tour Program’ a practical complication of final examination
B.B.A course. This program is very important to complete his/her B.B.A course. Industrial
Tour Program brings closer to the business practical and thereby help them to substantiate
knowledge so that they can prepare themselves to start a successful career.

As the student of Business Faculty, I got the adventurous through of the program under our
Dept. of Management. The program intends to provide practical training in handling of
managing jobs as well as integrate the knowledge of financial analysis, formulas,
frameworks and models.
 Acknowledgement

I have the immense pleasure and satisfaction in presenting report, which is termination of
my project works at HEIDELBERG CEMENT BANGLADESH LTD.
I am heartiest to all those who spare their time to share their mindfully art of judging of
merits and faults and have given valuable suggestions. From the very outset, I would
especially like to extend thank to my departmental guide honorable teacher Mr. Shanewaz
Mahmood Sohel, Associate Professor. Dept. of Management whose inspiration and
consideration during the entire program made it possible to prepare this report.

I would like to thank all of the field staffs of the Heidelberg Cement group limited and also
special thanks to my honorable Mohammad Alamgir, Country Head and Safety manager
and Head of HR; Engr. SM Javed, Plant manager; MD. Sohel Talukder, Production
manager; MD. Imran, HR official to give us the necessary information about the industry.
 Table of Content

SL NO. Topic Page no.

1. Title page
2. Letter of Submission
3. Preface
4. Acknowledgement
5. Introduction
6. Objectives of the study
7. Methodology of the study
8. Limitation of the study
9. Company profile
10. Literature review
11. Management department
12. Human resource department
13. Marketing department
14. Recruiting and Selection
15. Training and Performance management
16. Reward system
17. Labor management
18. Production management
19. Quality control
20. Supply chain management
21. Social responsibilities
22. Findings
23. Recommendations
24. Conclusion
 Introduction

HEIDELBERG CEMENT BANGLADESH LTD. is one of the leading cement producers in

Bangladesh, that’s why we have chosen this industry for preparing the report Cement
industry is an evolving and growing sector in Bangladesh. As a student of business
studies, I felt great interest and attempted to visit a cement factory like HEIDELBERG
CEMENT BANGLADESH LTD to take knowledge about the real business situation such as
HRM, production, marketing, financial mgt etc in such organizations. Although this is very
difficult to find out the real and contemporary situation in any industry, as the activities of
these areas are very wider and more complex, we dared to gather concept and ideas about
situational areas in HEIDELBERG CEMENT BANGLADESH LTD with my little
endeavor.
In Bangladesh, the usage of cement is increasing day by day with the faster change of its
infrastructural development. Industrial policy of the Govt., Cement industries had been kept
open for establishment without any restriction whether it is in 100% local, joint venture, or
100% foreign investment. Taking cue from the Govt. encouragement, several cement plants
(mostly grinding) were coming up in private sector.
Heidelberg Cement Bangladesh Ltd, one of the group companies of Heidelberg Cement
Group, founded in Germany in 1873, with its core products being cement, ready-mixed
concrete, aggregates and related activities, is one of the leading producers of building
materials worldwide. The group employs around 43,000 people in more than 50 countries.

Heidelberg Cement Bangladesh Ltd., which is the 2nd market leader in Bangladesh, operates
two cement-grinding plants in Dhaka and in Chittagong.
Objective of the Study

This study is aimed at providing me invaluable practical knowledge about the “Heidelberg
Cement group Limited”. It will help me to develop my concept of cement industry and its
operation. The objectives are:
(i) To relate theoretical knowledge with practical experience in several functions of
the cement industry.
(ii) To know about the production department of Heidelberg Cement Group Ltd.
(iii) To be acquainted with how cement industry perform its operations.
Methodology of the Study

The study was fully a descriptive in nature. The study was conducted using the participatory
method. To know the in-depth information, topic was discussed with the expert
professionals related to Heidelberg Cement Group Ltd. for several times and review of
record of Heidelberg Cement Group Ltd. and other related secondary information.
Data Collection Methods:
Data have been collected from two sources. These are under
(1) Primary Data
(2) Secondary Data

The Primary Sources of Data include the following:

a. Face to face conversation with the officers.
b. Study of different sections of the industry.
c. Practical field observation.

The secondary sources of data include as under-

a. Annual report of Heidelberg Cement Group Limited 2015.
b. Online data on Heidelberg Cement Group Limited.
Limitations of the Study

Every report suffers from several limitations. The Limitations of my report is mentioned
below -
➢ The main barrier of my report writing is time limitations. Since the information of
my study is extended in vast area, it is very tough to carry on the study within a
limited time with utmost devotion.
➢ Insufficient data provided by HEIDELBERG CEMENT BANGLADESH LTD. for
the sake of maintaining of organizational secrecy.
Beside these limitations, I tried to find out the facts and to overcome the obstacles by my
sincerity and devotion. I committed to prepare a report as accurate as possible in spite of
these limitations.
Company Profile

1. Name of the company Heidelberg Cement Bangladesh ltd.

2. Chairman Albert Scheuer
3. Managing Director Jose Marcelino Ugarte
4. Director Daniel Robert Fritz
Fong Wei Kurk
Sim Soek Peng
Jashim Uddin Chowdhury FCA

5. Head Office “Symphony” 6th & 7th floor, plot no: SE (F) 9, Road no: 142,
South Avenue, Gulshan-1, Dhaka-12/2.

6. Plant Dhaka Plants: Tatki, Jatramora, Tarabow, P.S.- Rupgonj,

Dist.- Narayangonj.

Chittagong Plants: South Halishahar, Patenga

Chittagong- 4204.
7.Year of establishment 1967
8. Year of operation 1973
9. No. of employees 265( overall), 125(Chittagong plant)
10. Nature of ownership Wholly Owned
11.Type of company Capital intensive
Corporate Vision
The Corporate Image:

Building worldwide growth by building a better world

Business Culture:

Building on local responsibility for international success

Employee Policy:

Building our business on the knowledge of our people

Corporate Mission
Market Strategy:

Building our growth on a solid base of earnings

Customer Philosophy:

Building customer satisfaction, because their success is our success

Quality Standard:

Building on quality products to build our reputation

Values
Commitment to Environmental Protection:

Building on environmental care also makes economic sense

Commitment to Innovation:

Building on new technologies determines our future success

Literature of Review

Heidelberg Cement Bangladesh Limited Associated with the Heidelberg Cement Group- A
group with a long tradition.
In more than 20 countries across the world, the name of Heidelberg Cement stands for
competency & quality in construction. Heidelberg Cement Group, which has a long and
successful history in cement industry in world, started its business back in 1973 in
Germany.

In 1998, Heidelberg Cement group established its presence in Bangladesh by setting up a

floating terminal with on board bagging facilities in the port of Chittagong and by
distributing the cement to the key markets of Dhaka and Chittagong.

In 2003, the two companies were amalgamating and the company’s name was
changing to “Heidelberg Cement Bangladesh Ltd.” The company has further increase the
capacity of its Kanchpur Plant by installing a second grinding unit of .45 million ton per
year that was commissioned in February 2008. At present, the company has cement
operations with total annual capacity of 2 million tons of cement. It currently operates two
plants, one of which is located in Chittagong (2 units) and another in Kanchpur,
Narayangang (2 units).

Industrial tour is to make an anchor between theoritical knowledge and practical knowledge.
Through this tour we’ve been able to observe how a factory really works like this, whereas
technology is applied to production. How overall activities from raw materials to final
finished product after packaging is done can only be understood by the help of industrial
tour.
Management Department

Management authority of Heidelberg Cement Bangladesh Ltd. Follows

functional management style. Top levels take the strategic decisions. Basically,

they take all type of plans including short, intermediate and long term. They

practice participative management in decision making. There is no level of

management except flat management.

Production department

There are two t ypes of cement produced. Ruby cement and Scan cement. In
both case, these are two t ypes.

(1)Portland composite cement (PCC):

It is composed of gypsum (5%), clinkers (63%-67%), slag (25%-27%) and limestone (2%-
3%). Basically, it is used for residential purposes.

(2)Ordinary port land cements (OPC):

Ordinary Portland cement is manufactured in the form of different grade, the most common
in Bangladesh being grade – 53, grade – 43 and grade – 33. Ordinary Portland cement is
manufactured by burning siliceous materials like limestone at 1800 degree Celsius and
therefore grinding it with gypsum. It is composed of gypsum 5% and clinkers 95%. It is
used for mega construction purposes like bridge, culvart.

1.Clinker Storage 5 (maximum 27000 ton and

minimum 5000 ton)
2.Production Mills 3 ( max. capacit y 65 ton per hour)
3.Jetti (own) 180 metre long (onl y Heidelberg
Cement BD. Ltd has)

They import raw mat erials from Thailand, Vietnam, Singapore, Indonesia
and Japan.

Whole production system is controlled through software. S ystem of

production is continuous. Two production mills can be run at a time. Slag is
boiled at 1800 degree celcius temperature. The installed capacit y of their
plants was lead capacit y.
They never failed achieving production target. Moreover, they are satisfied
and profitable with existing production volume.

Rest hour, Rest room and Uniform facilities are available in their company.
They have safet y measures for the workers of their company such as -
a) Personal Protective Equipment(PPE)
b) Permit To Work (PTW)
c) Safe work procedures
d)COTOTO- Call Out, Tay out, Try out fo equipment/mechanical
isolation
e) Emergency drills
f) Other equipment engineering control.
Ruby cement Production process phases
1. Raw material extraction/ Quarry
2. Grinding, Proportioning and Blending
3. Pre-heater Phase
4. Kiln Phase
5. Cooling and Final Grinding
6. Packing & Shipping

PHASE 1: RAW MATERIAL EXTRACTION

Cement uses raw materials that cover calcium, silicon, iron and aluminum. Such raw
materials are limestone, clay and sand. Limestone is for calcium. It is combined with much
smaller proportions of sand and clay. Sand & clay fulfill the need of silicon, iron and
aluminum.

Extraction of raw material and crushing of material

Generally cement plants are fixed where the quarry of limestone is near bye. This saves the
extra fuel cost and makes cement somehow economical. Raw materials are extracted from
the quarry and by means of conveyor belt material is transported to the cement plant.

PHASE 2: PROPORTIONING, BLENDING & GRINDING

The raw materials from quarry are now routed in plant laboratory where, they are analyzed
and proper proportioning of limestone and clay are making possible before the beginning of
grinding. Generally, limestone is 80% and remaining 20% is the clay.

Proportioning of raw material at cement plant laboratory

Now cement plant grind the raw mix with the help of heavy wheel type rollers and rotating
table. Rotating table rotates continuously under the roller and brought the raw mix in
contact with the roller. Roller crushes the material to a fine powder and finishes the job.
Raw mix is stored in a pre-homogenization pile after grinding raw mix to fine powder.
PHASE 3: PRE-HEATING RAW MATERIAL
After final grinding, the material is ready to face the pre-heating chamber. Pre-heater
chamber consists of series of vertical cyclone from where the raw material passes before
facing the kiln. Pre-heating chamber utilizes the emitting hot gases from kiln. Pre-heating of
the material saves the energy and make plant environmental friendly.

Preheating of raw material | Vertical cyclone

PHASE 4: KILN PHASE

Kiln is a huge rotating furnace also called as the heart of cement making process. Here, raw
material is heated up to 1450 ⁰C. This temperature begins a chemical reaction so called
decarbonation. In this reaction material (like limestone) releases the carbon dioxide. High
temperature of kiln makes slurry of the material.

Rotary kiln
The series of chemical reactions between calcium and silicon dioxide compounds form the
primary constituents of cement i.e., calcium silicate. Kiln is heating up from the exit side by
the use of natural gas and coal. When material reaches the lower part of the kiln, it forms
the shape of clinker.

PHASE 5: COOLING AND FINAL GRINDING

After passing out from the kiln, clinkers are cooled by mean of forced air. Clinker released
the absorb heat and cool down to lower temperature. Released heat by clinker is reused by
recirculating it back to the kiln. This too saves energy.

Clinker cooling | Cement making process

Final process of 5th phase is the final grinding. There is a horizontal filled with steel balls.
Clinker reach in this rotating drum after cooling. Here, steel balls tumble and crush the
clinker into a very fine powder. This fine powder is considered as cement. During grinding
gypsum is also added to the mix in small percentage that controls the setting of cement.

Rotating ball mill

PHASE 6: PACKING AND SHIPPING

Transportation of cement from silos

Material is directly conveyed to the silos (silos are the large storage tanks of cement) from
the grinding mills. Further, it is packed to about 20-40 kg bags. Only a small percent of
cement is packed in the bags only for those customers whom need is very small. The
remaining cement is shipped in bulk quantities by mean of trucks, rails or ships.

MANUFACTURING PROCESS FLOW CHART

flow chart present the summary of whole process as shown below.

 Ruby cement making process flow chart

Supply Chain Management

Suppl y chain management is having all the address of the developer

branches of the company. The working strategies of suppl y chain
management departm ent is outstanding on the basis of the current programs.
Apart from these, the delivery activit y of the departm ent is excellent. The y
are trul y satisfied with the way their war ehouse is managed. They have
ERP-Enterprise Resource Planning software (includi ng warehouse &
inventory management system) that they employed for the management of
their warehouse. Besides, they use different sorts of transportation for
suppl ying their products like dealers transport own bulk carrier for big real
estate and govt. pro jects. Thus, they have 5 bulk carriers (own/having
capacit y of 25lakh ton in which bulk carriers owned and others are managed
by dealers.

Quality Control
The organization has qualit y control department like other elite company.
They have program for impr oving product qualit y. Research and
development department works for improving qualit y. BSTI and ISO
standard are the basis of qualit y measurement and between these they follow
BSTI standard in case of product qualit y control. Moreover, they have
inspection team for qualit y control.
 Marketing Department
Most important department of any organiz ation is marketing department.
That’s why Heidelberg Cement Bangladesh Ltd conducts and maintains
their marketing through judicious and effective ways. Basicall y, they select
the media on the basis of media impact. They have all level of distribution
channels but they prefer dealers. Different sales offer for dealers and
retailers for achieving sales target. They trul y believe that they provide
better qualit y prod uct that that of competitors that’s why they rate their
products Excellent.
Apart from this, their crucial marketing approaches and activities are

1.Pricing Approach Premium pricing

2.Distribution channel Manufacturer to Wholesaler to
Retailer
3.Basis of selecting agents or Strong market representation
dealers
4.Advertising Media Preference a)Newspaper b)Television
5.Promotion Mix Strategy a)Price-off b)Premium
6.Marketing Intelligence System Active
7.Marketing Research Conduction Active

Customer
They have two kinds of targeted customer group:

➢ Individual customers are their major target group.

➢ Corporate customer also like prestigious projects.

Product Line
Heidelberg cement Bangladesh limited currently using only two product delivery systems
those delivery channel are:

➢ They receive order direct from the corporate and delivery the product directly that
means corporate sales.
➢ Using intermediaries like dealer method.

Corporate Sales

A sale is treated as corporate sales when it exceeds 5000 bags for a single buyer. The
respective buyer is treated as corporate customers of HCBL. Actually this buyer does not
sell to the retailer rather it is one type of end-users.
Dealer Sales
Dealer sales are treated those sales in which the dealer will buy goods/cements from the
factory and sells to the retailers/ end-users. To get the dealership, some procedures need to
be fulfilled on the perspective of the dealership seekers. Upon the completion of the
agreement between the dealership seeker and the HC authority, credit limits, bank guarantee
are permitted to the concerned dealer. In every sale, the conditions mentioned in the
agreement to be complied otherwise dealership will be abolished.
Three types of extra services they offer to the customers:

1. Online ordering

2. Online delivery

3. Online accounting

Distribution channel of HCBL

Marketing Mix(4p)
4P’S of marketing mix comprises of:
Product
The products of Heidelberg Cement Bangladesh Ltd are Scan Cement and Ruby Cement.
They are the most preferred brands for long lasting constructions. They have the following
features:
•Consistent proven quality
•Long age strength ensuring continuous strength gain
•Higher durability- sustainable from generation to generation
•Higher workability
•Low heat of hydration
•Better resistance to sulphate and other chemical attack
Price
The price of the products of Heidelberg Cement Bangladesh Ltd is a little higher than the
othercements in the market. This is due to their high quality of cement. However,
commissions are given to their customers especially the retailers based on the volume taken.
Place
Heidelberg Cement Bangladesh Ltd has two factories of their own. One is located in
Kanchpur which is situated in Dhaka and the other one in Chittagong. This enables easy
access to raw materials and ensures flexible transportation facility lowering their overhead
costs.
Promotion
Heidelberg Cement Bangladesh Ltd uses a mixture of promotional activities to advertise their
products. The most widely used instrument is Newspapers. They keep on updating about their
products to the local customers through both English and Bangla newspapers like Daily Star,
Financial Express, Jugantor, Prothom Alo, kaaler Kontho,etc. Moreover, they also go for
Billboard advertisement to attract the customers. Sometimes the Scan cement uses TV
advertisement to reach their customers. They also use brochures and posters to inform their
customers.

Figure: A graphical synopsis of the organization

Human Resource Department

1.No. of employees Total:10 (male 10)

2.Èmployees extent Permanent: 125
Casual: 71
3. HR planning techniques a) HR information system
for decision making b) Succession planning
4. Job analysis method a)observation method
b)Individual interview method
c)Diary method

Moreover, the authorit y conducts job anal ysis to come up with J ob

Description, Job Evaluation and Job Specification. Besides, there are Job
Description and job specification for every position in this organization.
They strictl y select employees according to job specification.

Their perception regarding co -worker cooperation and their performance at

work is to develop a culture of or ganizational citizenship behavior and team
culture they are ni ce famil y. They’ve different employees engagement
programs which strengthen their bonding as one famil y.

Health and Safety Policy

At Heidelberg Cement, we take our social responsibility seriously and are convinced
that a corporate culture based on employee-orientation and partnership will lead to the
long-term success of the company. Occupational Health & Safety is a core value of
our company and integral part of all our business activities.

Being convinced that injuries, occupational illnesses and diseases are preventable we
are continuously striving to minimize risks for our employees, contractors and third
parties by pursuing the goal of zero harm.

Scope

This Policy applies to all locations and operations of the Heidelberg Cement Group
where we exercise management control.
Commitment

In order to continually improve our performance we manage Health & Safety through
appropriate management systems. The key elements are:

• Establishing clear objectives and corresponding action plans.

• Providing safe and healthy workplaces, safe equipment and safe work
procedures and practices based on the results of regularly reviewed risk
assessments.
• Training employees in Health & Safety issues that affect their work to ensure
they have the proper competencies to conduct their tasks safely
• Inspecting and reviewing work areas and practices on a regular basis to ensure
compliance with internal and external requirements
• Supervising, monitoring and analyzing the Health & Safety performance and
processes against requirements
• Providing guidance and instructions on the handling of our products in
accordance with applicable laws

Heidelberg Cement is committed to conducting its business in accordance with all

applicable local, regional, national and international legislations, and within its own
standards and procedures related to Health & Safety. We also work together with
employees, contractors, and third parties to prevent accidents and inform them and
the public regularly about our Health & Safety performance.

Rules

To ensure the safety of our employees, contractors and third parties, it is compulsory
to wear the following Personal Protective Equipment (PPE) at all operational
workplaces1 of Heidelberg Cement:

• Safety helmet
• Eye protection
• Safety boots
• High visibility clothing

Furthermore, all employees and contractors working for us have to comply with the
following Cardinal Rules:

• All Personal Protective Equipment (PPE) required for a given task must be
properly used.
This applies in particular but not exclusively to the use of:
- Seat belts when driving
- Appropriate fall protection equipment when working at height
 • Equipment has to be properly isolated from all inherent energy sources and
must be tested to ensure it cannot start or move prior to conducting any tasks
• Safeguards must be in place before equipment is (re)started
• Entry into confined spaces is only allowed for competent persons and with a
Permit to Work signed by the responsible superior
• Driving for the company is done in strict accordance with local laws and
company requirements
• All occupational incidents are reported and investigated to identify the root
causes and to set up corrective actions and lessons learned

Further Health & Safety requirements to comply with are laid down in Group
guidelines and local documents which are regularly reviewed and adjusted.

• Non-compliance with these rules will not be tolerated.

• Local management has to specify any exemptions and to define the product
specifications, based on results of risk assessments.

• Exemptions from this rule and defining “non-permit confine

• Spaces” must be authorized by the local management based on
• Results of risk assessments.
Roles and responsibilities

Heidelberg Cement holds all levels of management accountable for Health & Safety
in their area of responsibility, while at the same time emphasizing that each employee,
contractor and visitor has direct responsibility to follow safe work procedures which
will ensure their own Health & Safety and that of their colleagues.

Top levels of the company are strictly committed to the issue of Health and Safety.

‘’I am giving the highest priority to Health & Safety and I expect the same from
everybody else. Only together will we achieve our goal of zero harm.’’

Dr. Bernd Scheifele

Chairman of the Managing Board

1
Recruitment
In case of recruiting , they use mix sources to searc h for required candidates.
These sources are internal, employee references, advertisement, and private
employee agencies. They use internet/online like bdjobs.com as an
advertising media for recruiting.

Selection
They follow a sequential selection procedure in employee selection. This
process is
initial screening

completing the application form

employment tests

comprehensive interviews

background investigation

conditional job offer

medical or physical test

permanent job offer

Figure: Employee selection process

Moreover, they are covered depending on t he position vacant top, mid and
lower.
They usuall y follow employee selection tests as Written test, Oral test,
Medical test. After selection they employees to different types of jobs on
the basis of job descriptio n. The most important qualit y the organization
looks for is team work abilit y such as KSA -Knowledge, Skills and Attitude,
Abilities & Intelligence.

2
Training and Performance management

Heidelberg Cement Bangladesh Ltd. always has continuous focus on training

and development program to develop employee skills and productivit y. In
this regard, to determine the training needs of their employees they consider
the following factors such as i) Results of KPI-Key Performance
Indicators in KRA(Key Resource Area) ii)KSA efficiency(gap in
knowledge skills and abilities)

In order to use the performance after training, they assign employees to

previous jobs.

The authorit y uses the following training methods to train their employee s-

1) Job Rotation
2) Simulation exercise
3) Classroom lecture
4) E-learning on e-campus

The authority uses the following performance appraisal methods to appraise the employee
performance –MBO (Management By Objectives)

Reward System
Their basic payment is on the basis of performance, experience, position and academic
experience. They use motivation and training as strategy to retain highly experience people
in their organization. They provide very distinctive facilities to their employees like
Insurance, housing, transportation, medical insurance, life insurance, Income tax
reimbursement etc. They give bonus on the basis of regularly on the achievement of goal
on yearly basis. Pay for performance (individual or group) and commission beyond sales to
customers are the particular pay systems used in their organization.

Labor Management
Like many others industries, Heidelberg Cement Bangladesh Ltd. has also
Trade Union. They have CBA and CBA no. is 81 .CBA’s interference can
influence in decision -making onl y when management found logical their
proposed suggestion and in this regard management may consider. They
follow same procedures like CBA in worker’s participation management in
taking decision. There is no record of industr ial dispute. Speciall y, they

3
follow a secret dispute settlement procedure that is strictl y kept
confidential.

Social Responsibilities
Like other elite organizations, Heidelberg Cement Bangladesh Ltd. also
follow business ethics. They perform many social work such as scholarship
for poor elementary and high school students, school bag distribution, wheel
chair distribution to paral yzed people, develop the road for school to
facilitate safel y movement during rainy seasons. A part from this, they have
future plan to be more sociall y responsible. They also provide internship
facilit y to fresh graduates.

4
SWOT Analysis
With the help of SWOT anal ysis, I will try to find out the scenario of
internal and external environment of Heidelberg Cement Bang ladesh Ltd.

Strength

• Strategic location of factory in Dhaka and Chittagong

• Port facilit y of Chittagong
• Strong brand equit y of ruby and scan cement with premium price
• Strong sales force and dealer network information technology
• Strong relationship with co rporate customer and large end user
• Creating service and awar eness through advisory cell and other
marketing policies
• Consistent qualit y and organizational pos itioning as 'Qualit y Leader'
• First choice of customer for main structure of any mega construction
• Owning pcc as the category
• Owning pride project as a referral

Weakness

• Price is expensive than customer’s perceived value

• Logistics dependencies on rented truck

• No conveyer belt: expensive coaster delivery

• One product line

• High production cost

• Day time delivery

• Selective distributors

5
 • Less availability and product knowledge provided to the user’s

• No commission for retailers in existing distribution channel

Opportunities
• Growth of cement market due to development work
• Demand for quality cement
• New product line
• Educating customer
• Affiliation with regular consumers through seminars and advisory cell
• Ruby/Scan cement has its unique quality product and brand image which is quite
important to establish new clients both in govt. and private sectors

Threats
• Other popular brands offer lower price
• Low priced brand loyalty-price sensitiveness
• Increased competition through unhealthy pricing practice by competitors
• Increased price of intermediaries in international market
• Entry of other reputed multinational in the market
• Other cement company provides more commission than HCBL to dealers and retailers
• New entry of Lafarge Surma cement, Aman cement, Tiger cement etc will participate
in the market share; as a result, market saturation may cause less profitability
• Less encouragement and incentives has been taken by the govt. to neutralize the
present rising price of most primary raw materials of construction

6
Findings
After completing m y tour and the SWOT anal ysis of the company, I found
the facts

• Own jetty for loading raw materials from ship

• Promotional Activities at limited print media
• Cement price is higher than that of others
• Availability of Input
• Good Transportation system
• No commission for retailers
• Large promotional market share
• One product line
• Selective distributors
• Effective safety management system
• Continuous Production of cement

7
Recommendation
Ruby cement is enjoying its leadership in market share since its birth in Chittagong. The
market is becoming hypercompetitive day by day. To effectively thrive and prosper in
upcoming future life the following recommendations are suggested:
• Large scale advertisement in print media, social media and electronic media to
be ensured;
• If they increase production capacity, the company may be able to capture more
market share;
• If the authority can reduce the price of cement maintaining quality, the company
may be able to capture more market share as well’;
• Brand Promoters are to be provided enough facilities say, Bags, Umbrella,
Motor Cycles;
• If the company provides commission to the retailers, this might help to capture
more local customers and market as well;
• Market visits of the employees need to be ensured regularly to know about the
nature of the market and need, want and demand of the customers/consumers;
• Scattered sales which comprise of a few in single but comes to a large portion of
the market shares. HCBL needs to emphasize more on the end-users promotion;
• It is necessary to focus more on South Chittagong and North Chittagong.
• Proper informative website for HCBL should be established for information
seeking purpose of customers

8
Conclusion
Industrial tour on Heidelberg Cement Bangladesh Ltd. really opened an arena of knowledge
of real situation. I think that Heidelberg Cement has a deep concern about its better quality
assurance, modern production technology, meeting customer demand, effective marketing
strategies etc. It meets a large portion of demand of cement in Bangladesh. Only better
quality product and strategic marketing helped Heidelberg BD Ltd.

Bangladesh is a small developing country. In accelerating it’s development process

infrastructure development is a must. Cement is one of the most important elements for this
purpose. It became indispensable part of development activities in the industrial,
commercial, rural infrastructure building or in the communication sector globally. It is
expected that locally produced cement will satisfy the consumers in view of quality.