BSRM makes different & distinctive from others is that the mill can only use M.S.

Billets of
regular shape and proper size which means it is a hundred percent billet based mill. No scrap or
ingot can be rolled and hence there is no possibility of using any sub-standard raw material
which in itself is a guarantee of the mill's product quality.

TORSTEEL
Major Advantages of Torsteel compared to mild steel round bars

Chemical Composition

Details of Dimensions, Masses Etc.

The introduction of high yield strength deformed bar as reinforcing steel has
revolutionized the world of reinforced concrete design. Rebbed - Torsteel bar or in
short TORSTEEL - a high strength cold - twisted deformed bar, originally
developed by TORISTEG STEEL CORPORATION of Luxembourg, Germany is now a
widely accepted re-bar in most countries of the world. BSRM was the foremost in
Bangladesh to produce and market Torsteel under licence from its inventors who
possess the patent right in Bangladesh for its manufacturing process with various
profile combination.

Torsteel is produced from mild steel billets with limited carbon content (0.30%
max.) by controlled cold - twisting of hot-rolled deformed bar with its
characteristic configuration. Each bar is cold-twisted individually. The cold
twisting works the steel beyond its elastic limit and a bar with normally inherent
defect breaks during twisting. Every piece of Torsteel bar thus undergoes this
severe automatic test during its twisting process.

Use of Torsteel bar results in 40% steel saving and 30% saving in steel cost
compared to mild steel round bars of 36,000 psi (250 N/mm2) yield poin.

QUALITY CONTROL
The company maintains standard quality of the product by ISO-9001 Certified Company.
But BSRM used ASTI for quality control and ISO for management. And also its have program
for improving the quality of the product.

Research and development department

The company has R&D department for improving the product quality.

Brand name of their product:

BSRM

Standard of quality of the product

Their product standard is approved by BUET.

Countries from where the necessary machinery imported:
The imported machinery of the company from China, Malaysia, Indonesia, etc.
Export of product

BSRM products are used in local region

The company may be able to produce the product for export in the foreign market.

Ensuring quality control

The organization ensures the quality by:

Continuous checking process in every stage of the production by sampling.

Production:

Senior manager and manager (inventory) are the of production department

Sources of raw material: Import and local production by their sister concern
Meghna Engineering Works.

Production Capacity the machines : 20 metric tons Per hour. Computerized

technologies are used in production system.

Location: (Head Office)

Mr. Tapan Sengupta (GM)

Ali Mansion , Sadarghat Road,

P.O. Box No. 337,

Chittagong-4000,
Bangladesh.

Phones : 88-031-613282, 637758, 613759,616402

Fax : 88-031-610101

E-mail: bsrm@globalctg.netm

Location: (Factory)

Mr. Sankar Roy (AGM)

147/148/149 Baizid Bostami Road,

Nasirabad Industrial Area,

Chittagong-4000,

Bangladesh

Phone : 88-031-683053, 683164.

E-mail: bsrm@spnetctg.com

Dhaka Office :

Mr. Kazi Anwar Ahmed (GM)

Mahbub Castle, 35,

Purana Paltan Line (2nd Floor),

Inner Circular Road (VIP Road ),

Dhaka-1000, Bangladesh,

Phones: 88-02-8313135,408587

Fax: 88-02-8312905.

E-mail: bsrm@bangla.net

Advanced manufacturing technology(AMT):

AMT improves the manufacturing process of BSRM because the manufacturers have always preferred
long production runs of the same product since the unit cost of producing the product falls as volume rise.
they typically involves computer aided design (CAD) and computer aided manufacturing(CAM). CAD
allows to design the steel and CAM allows to interpret CAD data to coordinate the production process.

Supply chain management:

Installation of AMT has also coincided with a mejor remodelling of the manufacturer’s supply chain. For
supply chain management Just In Time method is used. This techniques allows them to get the raw
materials whenever it is needed. For this they have to make good relationship with the suppliers of the
raw materials. The major suppliers of BSRM are-

No. Name of the principle suppliers

1 Meghna Engineering Works LTD.Chittagong.
2 Nortrade International LTD, Australia.
3 Maithan International ,Mumbai
4 BGH Exim LTD,Kolkata.

Electronic Data Interchange:

Electronic data interchange allows documents like invoices and orders to be transmitted between
organizations. BSRM uses this techniques for making thecommunication with the required party. They
often uses Internet for developing a Wide Area Network.Because the mejor suppliers of their product is
foreign country’s supplier so it is neccesary to use the internet in order to make communication with
them.

Some of the machines which are using in producing steel is given bellow:

Mandrel: It is a machine by which some specific properties of Reinforcement are tested. The tests are Re-
bend Test.

Turning Lathe: It is computer Numerical control Lathe machine. A vast quantity of controlling
works can be done by this Machine. Such as: To decrease higher diameter iron made objects to lower
diameter objects.
Testing Machine (UTM): It is a Machine by which tensile properties of Reinforcement are tested. Yield
Strength, Ultimate tensile strength & Elongation of Reinforcement are obtained from this Machine.

Attached with UTM: A computer is attached with the Universal Testing Machine. The tested data’s of
UTM are transferred to this computer. Then the computer shows the graphical representation of Yield
Strength, Ultimate Tensile Strength & Elongation of Reinforcement.
Technology development:

Before the industrial revolution and the growth of the large organization important
discoveries, such as in mental working and milling, may have come about by
chance. People of independent means pursued life-long interests which gradually
advanced understanding and occasionally led to a new exploitable technology.
Several people worked independently, but simultaneously, on the steam engine, yet
it is Stephenson’s first locomotive, the Rocket, in 1818 that we remember.
Accidental or random discoveries of important new knowledge such as Alexander
Fleming’s discovery of antibiotic behavior are now very much the exception. In the
main, discoveries and the innovations resulting from them are not random
processes. Scientific and engineering know how are usually deliberately focused on
a problem in response to societal pressures or needs (Syres, 1991). This is certainly
the case today when business and government research funding is clearly targeted
on specific social, industrial or agricultural problems, for example.
The state of related and supporting technologies also affects the rate of progress, in
an area. Consider, for instance, the growth in computer5ized travel shows how
progress in one area can accelerate progress in another

Funding of research & Development:

For continuous improvement of technology the R & D arise. There R & D can
improve the technology by making research on it & for this a fund is require. Mainly
any first the govt. makes an investment on it. Universities /non-profitable
organization also invest on it.

The BSRM steel mills also invest in Research and Development. Because their
business is technology related. So if they do not give their concentration on the
technology then they will not able to survive in the competitive market.

Types of Research and Development:

Basic or fundamental research is experimental or theoretical work undertaken
mainly to acquire new knowledge. Such work would be undertaken without a
particular and use in mind. An example would be the synthesis of new chemical
compounds but without and notion of what use they might have.

Applied research is undertaken with some application in mind, for example

investigating the usefulness of innovations to medicine or materials technology.

Experimental developments are the use of both basic and applied research in
the development of materials, processes and synthesis and would typically extend
to the prototype or pilot stage

So base on the needs BSRM makes investment on R&D.

• They give emphasis on experimental developments

• They need to improve the quality of the steel products
• Try to capture the maximum market share.
With the establishment of BSRM (the new plant) exclusively for MS rod
production in huge capacity, the BSRM is now designed to produce value added
products where there is awide scope of market exposure. This move also free up
the existing mill-BSRM_for MS rod production , over & above, concentrate only value
 added product like spring steel flats , wire rods , channels, angles. So for this new
project they emphasis on R&D.

Technology & Productivity:

Technology refers to the systematic application of scientific or other organization knowledge to
practical tasks. On the other hand productivity refers to the ratio between the inputs & output for
converting input to output technology is used & the output of given input is productivity. So there
is a direct relationship between technology & productivity. The higher the efficient use of
technology the higher its productivity.

For increasing the productivity different utilities are used by BSRM which are:

Utility Sources Requirement

Bangladesh 102 kw/ton
POWER
Power Development

Deep tube well 0.5 m3/ton

WATER
Bakhrabad Gas System 38 m3/ton
GAS

Procurement Strategy:
The company will procure its raw materials mainly from International markets as well as from its sister
concern “Meghna Engineering Works Limited”. It adopted a policy to maintain an inventory of “Bilet”-
the basic raw materials both in stock and on pipeline, for at least equivalent 3 months production
requirement through alternatives arrangement to reduce the single source dependency. Due to high price
volability of Billet in the international market the company always faces market force to adjust with its
pricing to establish backwad linkage industry to ensure large quantity of billet supply for BSRM steels
LTD.

Grades:
Grades of rod known as Grade 40 and Grade 60 which refers to the yield strength 40,000 psi and 60,000
psi, of 2 different types of steel bars. BSRM has now introduced yet another type of bar known as Xtreme
500W which conforms to Grade 500 or having yield strength of 72500 psi which is superior to both to
grade 40 and grade 60. Then there is another type of bars from the ship-breaking industry based on the
scrap plates and open cast ingots for which there is no mill certificate or test result. These are non-graded
steel products and unfit for any properly designed construction.

Unique feature of BSRM product:

1. High design yield strength of 500 Mpa (72500psi) (Min)
2. Requires 15% less steel in construction compared to Grade 60 rebars
available in the market.
3. The bars have superior bendability and can be safely bent without cracking.
4. All bar sizes are rolled to a very close tolerance (possible on a
DANIELIcomputerized rolling mill) so that customers get more meters of steel
per ton - more value for money without having to sacrifice structural
integrity. Estimated savin
5. De-scaled bars have better bonding with concrete and less wastage at site. Estimated savings :
0.5
6. Xtreme bars are safely weldable under field conditions.Another 0.5% to 1.5% of steel is saved by
avoiding large splices
7. The bars are needle-straight, thanks to the Danieli QTB process - no need for straighteningon the
construction site.

Problem facing in operating the existing or new

technology:

Different problems may arise because of adopting new technology or operating

the existing technology. Because the user of new technology may become unaware
or unskilled to use it. Some times they may face problem in operating existing
technology.

Presently most of the quality value added steel products are imported from
Japan and India especially spring steel flats which is used in trucks all over the
country .So to adopt this new technology some problem may be faced by BSRM.
 Besides the competitor may take the technological advancement before BSRM
take the benefit. This problem often faced by BSRM because it is not always
possible to take the new technology.

The major competitors of BSRM are:

1. Rahim Steel Mills LTD

2. Kabir steel Re-rolling Mills

3. Seema Steel Re-rolling Mills LTD

4. Bashundhara Steel

Does the price is higher than other company’s product using the same
technology?

prices may seem to be higher then other products in the market the overall cost of steel on structures
designed with BSRM product will be lower for 3 main reasons:

1. BSRM Xtreme rebar conforming to ISO BDS 6935 has minimum guaranteed yield strength of 500
Mpa which needs 15% less steel compared to Grade 60 bar.

2. BSRM rebar is rolled to a 3% minus tolerance consistently. This is possible only in a high class
automatic rolling mill of European design and make, which only BSRM has procured and installed

3. The other reasons are consistency in length, no short pieces, which minimizes bar splicing and accurate
weighing on computerized scales hence less steel

buy from the nearest dealer at BSRM listed price to avoid delays. All BSRM products are sold through
dealers at factory listed prices, so there is no point in buying direct from the factory.

For Grade 500 a minimum concrete strength of 3600 psi [25 Mpa] is advised. As concrete is a field or site
manufactured product in most cases in Bangladesh, it is expected that there will be a greater variation in
its compressive strength. Concrete prepared in batching plants with admixtures and additives under more
controlled conditions have better consistency and reliability.

Distribution of product/services
BSRM Steels Limited has appointed 80 dealers to sell it’s product to the ultimate customers.
In addition to that, the Company
has several sales depots at Comilla, Bogra, Sylhet, and Khulna & Moulvi Bazar. We may
demonstrate the distribution channel
as follows:
Sources and availability of raw materials and principal suppliers
Serial No Name of the principal suppliers
01 Meghna Engineering Works Limited, Nasirabad I/A, Chittagong.
02 DuferCo Asia PTE Limited, Singapore
03 Nortrade International Pte Limited- Australia.
04 Maithan International, Mumbai, India.
05 BGH Exim Limited Kolkata, India.
Factory

Retailer
End User

Issuer Issue Managers

BSRM Steels Limited ﾁ¡ ﾁ¡ ﾁ¡ Alliance Financial Services Limited
South Asia Capital Limited
- 18 -
Competitive condition in business
BSRM always has a solid reputation in the local steel market as one of the oldest
establishments producing the quality rods
available in the country. This has enabled BSRM to command the premium prices and still
retain the largest market share in a
highly fragmented industry with so many players. Following are the main competitors of
BSRMS:
Name of the Organization
1. Rahim Steel Mills Limited
2. Kabir Steel Re-Rolling Mills Limited
3. Seema Steel Re-Rolling Mills Limited
4. Bashundara Steels
It may be noted that none of the above companies are producing Grade 500 (72,500 psi) MS
rods in Bangladesh.
Sources of, and requirement for power, gas and water or any other utilities
Input Source Requirement
Power Bangladesh Power Development Board (BPDB) 102 kwh/ ton
Water Deep Tube well (Established at project site) 0.5M³ / ton
Gas Bakhrabad Gas System Limited 38M³ / ton
Customers providing 10% or more revenues
No revenue has been generated by the project up to Balance Sheet date except from sale of
products during trial operation of
the project.
Contract with principal customers and suppliers
The company has no contract with its customers and suppliers except contract with
suppliers of the Plant and Machineries
regarding Technical assistance, maintenance, spare parts supply. BSRMS has contracted
with following companies: