Professional Documents
Culture Documents
Supermarkets in Bangladesh:
Leveraging Convenience and Availability for Urbanites
A “fresh from the oven” news, turned the spotlight gradual shift in consumer shopping preference to
on Bangladesh in international premise. supermarkets from the mom-and-pop shops or
kitchen/wet market, a great deal of offers by the
Minhaj Chowdhury, the Bangladeshi entrepreneur Superstores to catch the middle and lower-middle
has won the first-ever “Under 30 Impact Challenge” slice of the social class. Supermarkets have already
at the Forbes Under 30 Summit in Boston, USA. jumped the e-commerce bandwagon in order
He started a water technology company named to take consumers’ convenience in shopping to
“Drinkwell”, which combats arsenic, fluoride the next level. In a city like Dhaka, full of hustle-
and iron contamination in water and currently bustle, where the average traffic speed dropped to
operating in Bangladesh and India. 7km/hour from 21 km/hour in just five years, the
initiative is much time befitting. However, this
A quite obvious industry trend of Bangladesh is just the start. The industry is yet to create the
is: it hits a global trend in its lateral waves. Take perfect blend between online and offline shopping
Supermarket industry as a case in point. Global experience in one seamless platform and it has
Supermarket is a 100 year old industry and some way to go to reach that level.
Bangladesh became a part of it in early 2000s. The
Supermarket industry in Bangladesh is making
strides towards expansion in a steady manner Adnan Rashid
with three key players. In the last couple of years, Assistant General Manager
the industry witnessed few positive turns: a IDLC Finance Limited
04
Research In Focus
21
Entrepreneurs’ Corner
32
Industry Update
NBFC In India: The Changing Exclusive Sweets Ltd. • Agent Banking
Landscape • RMG
06 21
• Power
• Cement
Cover Story
34
IDLC News
Supermarkets: New trend
in urban shopping
The Supermarket industry in Bangladesh got off the
ground in early 2000s. During this timeframe, the
industry witnessed a steady growth. Mostly run by
22
Economy At A Glance
The Month In Brief
three key players- Shwapno, Agora and Meena Bazar,
36
the industry brought a major shift of consumers’
24
shopping preference from the mom-and-pop stores
to the superstores, to a certain extent. Not only that,
it is accountable for a larger chunk of employment
generation- starting from the root-level farmers to
the urban university-goer storekeepers.
Spotlight on Startup For the Record
14 Kiksha.com
37
EXPERT OPINION
26
Design & Printing: nymphea l www.nymphea-bd.com
Becoming a Brand
Sabbir Hasan Nasir Youth Leadership Analytics
Executive Director, Shwapno (ACI Logistics) An Evaluation of the Performance of
LightCastle Partners
Independent Marketers’
Association (IMA) New Commercial Banks
18
EXPERT OPINION 28 38
Tale Of Growing Steady Trailblazers Capital Market Review
Shaheen Khan In Conversation with
CEO, Gemcon Food and Agricultural Products Ltd Ferhat Anwar
(Meena Bazar) Professor, IBA, University of Dhaka
All rights reserved. No part of this journal may be reproduced in any form, by print, photoprint, microfilm or any other means without written permission from the publisher.
RESEARCH IN FOCUS NBFC IN INDIA: THE CHANGING LANDSCAPE
4 of 40
From: First Access Mobile phone records: From: First
If you just applied
Phone calls Access
for a loan at ABC
Texts Bill pay Recommended
Bank and
Airtime top-up Mobile money business loan for
authorised your
Zulfiqar Tahari at
mobile records to
Demographic Geographic Financial Social ABC Bank: 500
be used in your
USD over 12
credit evaluation,
months. Eligible
reply 1 now. Reply 2
for instant
to deny. Reply 3 for
disbursal
more information.
based company, rates borrower on repay to the loans. contributes to the overall economic steadiness and
The scoring is done on the basis of thousands of data growth of NBFIs in the economy as well mitigate
points gather from social media activity across multiple systematic risk in a large extent. But scarcity of fund,
platforms. Lenddo include number of social media high cost and low-cost deposit mobilization lead the
accounts which linked to the customer profile. NBFIs in more comparative situation.
Spotlight 3: Assessing personality As commercial banks faced jolt from sliding interest
rates and lower credit growth, non-bank financial
Another game changer factor of credit scoring is institutions (NBFIs) marked an impressive 37.94
psychometric data. Number of countries are countries %growth in 2016- compared to banking growth of
are considering the inclusion of demographic and 15.32%thanks to their innovative approaches. Industry
psychometric data to help build better credit scores, experts, NBFIs have become an alternative source of
India has to catch up with existent practices of capturing financing for many entrepreneurs and integral part of
individual data which is conspicuously missing from Bangladesh financial market over the year.
information sets and relevant to credit scoring.
Leading 28 companies disbursed loans amounting
Recent trends in funding sources for NBFCs to BDT 112,483.69 million in 2016, which is 37.94
%higher than the loan disbursed by the companies in
NBFCs have emerged as the largest net receiver of funds 2015, according to Bangladesh Leasing and Finance
from the rest of the financial system. According to the Companies’ Association (BLFCA), the apex body of
Financial Stability Report, 2015, scheduled commercial NBFIs in operating Bangladesh. Of the total loans
banks (SCBs) have the highest exposure to NBFCs of NBFIs, home loan growth was 35.45 %to BDT
at 1,927 billion INR, followed by asset management 33,985.16 million while the growth of auto loan was
companies managing mutual funds (AMC-MFs) at 32.45 %to BDT 7,494.32 million, SME loan at 28.38 %to
1,376billion INR and insurance companies at 1,064 BDT 56,614.25 million, and factoring loan at 26.02 %to
billion INR (as of September 2015). BDT 11402.69%. More than 80 %of the loans disbursed
Funding structure is also changing from short-term by NBFIs were term lending as their capital structure
borrowings to long-term borrowings. Over the last few provides better support for term financing rather than
years, the proportion of short-term borrowings has working capital financing. NBFIs are increasingly
been increasing since NBFCs were hesitant to lock in coming forward to provide credit facilities for meeting
long-term funding, expecting a fall in interest rates. The the diversified demand for investment fund in the
trend is changing towards more long-term borrowings country’s expanding economy.
as NBFCs will take advantage of the benign interest rate
environment to strengthen their liquidity profile. Time-honored and highly standardized product design
strategy creates a vacuity for NBFIs to widen their
NBFIs in Bangladesh:
activities with custom design-quick adapt product
Diversified investment sectors, long term investment strategy; more customers oriented non-conventional
plan, more customer customized products etc. financing activities.
5 of 40
6 of 40
The Supermarket industry
in Bangladesh got off the
ground in early 2000s.
During this timeframe,
the industry witnessed
a steady growth. Mostly
run by three key players-
Shwapno, Agora and Meena
Bazar, the industry brought
a major shift of consumers’
shopping preference from
the mom-and-pop stores to
the superstores, to a certain
extent. Not only that, it is
accountable for a larger
chunk of employment
generation- starting from
the root-level farmers to
the urban university-goer
storekeepers.
SUPERMARKETS:
NEW TREND
IN URBAN
SHOPPING
RESHAPING MODERN
RETAIL TRADE
7 of 40
SUPERMARKETS: NEW TREND IN URBAN SHOPPING
COVER STORY RESHAPING MODERN RETAIL TRADE
Men seek convenience. Amongst all other psychological The concept of Supershop: Global Perspective
traits of a normal human being, it is perhaps the most
common attribute that they are on the lookout for Clarence Saunders’ Piggly Wiggly stores: The
ease and comfort. Having said that, while seeking for “groceterias”
comfort, they must conduct the daily chores e.g. taking
food, going to work or shopping necessaries in order Picking up a basket while grocery shopping may
to keep themselves going. The concept of Supershopis seem second nature now, however, the idea was
embedded on the theory – “Convenience in shopping once groundbreaking. That was far from the
under one roof ”. only thing that changed when Piggly Wiggly, the
first modern American supermarket, opened
“Supershop”- why it is “super”? 101 years ago. Prior to it, the Great Atlantic and
Pacific Tea Company (established in 1859) set up
“Supershop”- also acknowledged as supermarket/ small grocery stores concentrating on one aspect
superstore, is a marketplace selling a wide array of of food retailing, butchers and greengrocers were
product lines- groceries, dry foods, fish & meat, separated. It was in 1916, when Clarence Saunders’
household goods and equipment, electronic items, Piggly Wiggly stores came up with self-service
clothing and so forth. Like the way the fictional shopping, which came to be known as “groceterias”
character Superman, possesses some bonus powers for reflecting the cafeteria-style eateries.
than a regular human being, supershops provide some
extra perks than traditional markets. One gets the relief The “Drive-in Market” (1930-1940)
from the hassle of visiting multiple stores for multiple
requirements e.g. going to kitchen market for groceries, As early at the 1920s, some chain grocers were
to wet market for raw fish and meat, to electronic experimenting with consolidated (albeit still
appliance store for electronic purchase and the like in rather small) stores that featured at least a small
presence of nearby supershop. selection of fresh meats and produce along with
the dry grocery items. Grocery stores started to
expand as the beginning of the “drive-in market”
phenomenon, where several complimentary food
retailers (a butcher, a baker, a
grocer, and a produce vendor,
for example) would locate
within the same small shopping
center surrounding a parking
lot. The large chains started to
consolidate their small service
stores into larger supermarkets,
often replacing as many as five
or six stores with one large, new
one. Their store count reduced
by half, however, sales were up.
Expansion to suburbs
(1950s and 1970s)
8 of 40
to suburban locations was beginning. This can be WHY INDIAN MODERN
termed as the matured phase of global supermarket
scenario with bright new stores opening on a regular RETAILERS HAD TO STRUGGLE
basis, generating excited and glowing newspaper TO WIN CONSUMERS?
reports, and serving a significant marketplace.
In 2014, India’s home-grown Supermarkets
After 1970, supermarket industry was quite accounted for only 2% of food and grocery sales
booming. Stores were facing the wind of change in and were struggling to make profit. Revenues
terms of interior, adding new product line, giving did not keep pace with rising rents. The bet
discount offers and so forth. In 1980s to 1990s, the made by the chains was that as India became
middle range began to disappear, albeit slowly, as richer, its consumers would abandon kerbside
mainline stores went more “upscale” and low end stalls and kiranas (mom-and-pop shops) for
stores moved more toward a warehouse model. air-conditioned stores with wide aisles and
The other big trend during this time was toward broad ranges. Why has it not then paid off?
mergers and leveraged buyouts which affected
almost all the major chains. In larger part, Supermarkets are not
compelling draw in terms of price and
service, in a context where most shoppers
How “Supermarket revolution” happened in Asia (in India) have heavy frequency in purchase.
and in Bangladesh?
The mom-and-pop stores are preferred
because they are closer to home, are usually
A “supermarket revolution” in developing countries
open longer and offer credit to familiar
started in the early 1990s. This revolution involves the
customers. Many deliver free of charge.
rapid increase of modern retail shares in food retailing
at the expense of traditional shops and wet-markets. Supermarkets competed with clusters of
The diffusion of modern food retail rolled out in three kiranas, which together can offer most of
waves. The first-wave countries (in Latin America, the same products. A traditional kirana
Central Europe, and South Africa) tended to go from sells confectionary, fresh eggs and poultry.
a small share of modern food retail in overall food
retail in the early 1990s to some 50% or more by the Aisle upon aisle of global brands did not
mid-2000s. The second wave, in the mid- to late 1990s, prove such a big draw. That has forced
was in Southeast Asia (outside transition countries like a rethink by some of the big grocery
Vietnam), Central America, and Mexico. The second- retailers- which came to light in the name
wave countries in Asia started later and reached a range of “Convenient Store” or in other words,
of some 30–50% share by the mid-2000s. The third the limited range Supermarkets.
wave, in the late 1990s and 2000s, has been in China,
Mr. Kishore Biyani, the CEO of Future Group
Vietnam, India, and Russia.
(Big Bazaar is their food and grocery format
outlet) makes a good case for betting on
The record shows that the rapid growth observed in
convenience stores. Turnover per square meter
the early 2000s in China, Indonesia, Malaysia, and
is higher than in Supermarkets. Small plots
Thailand has continued, and the “newcomers”—
are also easier to acquire. Trent, a retail joint-
India and Vietnam—have grown even faster. Asia’s
venture between Tata Sons and Tesco, reckons
supermarket revolution has exhibited unique pathways
there might be mileage in limited-range
of retail diffusion and procurement system change.
Supermarkets of 450-750 square meters.
Several approaches are being tried to link small farmers
to supermarkets. Some are unique to Asia, for example
assembling into a “hub” or “platform” or “park” the
9 of 40
various companies and services that link farmers to - said a retail expert. Bangladesh became the part of the
modern markets. Global Supermarket revolution in early 2000s- which is
called the fourth wave of Supermarket revolution. Key
According to Thomas Reardon, a professor at the socioeconomic changes necessary for a change in the retail
Department of Agricultural, Food and Resource environment happened in Bangladesh at a pace much
Economics at Michigan State University, Bangladesh is slower than, for example, in India. Supermarket diffusion
part of a fourth wave that just barely has emerged in is ascribed to changes like increasing urbanization,
the last few years. Other countries at a similar stage are increasing number of women working outside their
Cambodia, Bolivia and certain countries in West Africa. home (which leaves them with less time for shopping of
essentials), and increasing income per capita.
Start of Supermarket in Bangladesh
Per capita income in Bangladesh is on rising track.
It amounted to USD 1,602 in FY 16-17, from USD
“THE ORIGINAL 1,466 in the previous FY. In 2010, it was only USD
757.
THINKING WAS, GIVE
THE CONSUMER A The female unemployment rate dropped to
6.4%. The largest share of female employment
ROOMFUL OF CHOICE is in services and sales (30.3%). Female share of
employment as administrative and commercial
AND HE’LL CHANGE managers was 20.3% in the industry sector and
10.7% in the services sector. Overall, 12.9% female
HABITS.” share of employment is in the capacity of chief
executives.
121 outlets
USD 200 to
USD 250 million
10 of 40
Storage
8 7 Transportation Land Lease
6
Foodmart Market Intel 3
1
SM Agents
Bazaar Storage Marketplace Farmer
Small Retailers 4
Consumers 5 2
Traders
Consumers
When a direct sourcing chain is not maintained, as Direct sourcing model is an avenue for value addition
depicted in the diagram above, several intermediaries since the model connects the small farmers to the large
take a chunk of the profits, leaving a reduced amount retailers. Direct sourcing means higher income for
for the supermarket and the farmers. Typically, a 30 farmers and is a pathway out of poverty. The downsides
% margin exists between the original producer and for companies sourcing from small farmers are cost and
the end consumer. Supermarkets, via this model, risk. Small-farmer sourcing can be relatively expensive
command about 10 to 12 % of this margin and farmers if a buyer has to pay the costs of the transaction
get about 3 to 4 %. The rest 14 to 15 % is taken by the (negotiating the quantity, quality, and price; setting up
intermediaries, which are about 4 to 8 in number. the logistics of purchasing and payment). In addition,
Except for the bigger players, who have investment to small farmers may not have the capital or production
help them sustain, this anomaly has led to the closure scale to consistently reach contracted quantities or
of many smaller superstores. Sharp rise in overheads – quality standards that food companies require.
rent, utilities, salaries and maintenance costs have also In many countries, direct source is generally not a
contributed. Furthermore, the market growth is also direct transaction with the farmer. Instead, a small
affected as higher prices mean a significant portion of array of institutions- much reduced from the traditional
the middle class is remaining untapped. market structure- operate between the farmer and the
11 of 40
Central Storage Transportation
Foodmart
1
Land Lease
Distribution Hub Contact or Co-Op Farmer
(Sorting Center)
2
Consumers
12 of 40
13 of 40
MBR SURVEY
Monthly Income
28%
Age of respondent Profession of respondent Traditional
markets
46%
Small nearby
Banker 24% grocery stores
18-20 years 17%
Private Service 59%
25- 30 years 43% Government Service 4%
30- 40 years 23% Doctor 3%
Teacher 8%
40- 50 years 12% Lawyer 2%
Gender of Respondent
52%
51% 49% Supershops
FEMALE MALE
14 of 40
Once a week 34% What products do you
Monthly 19% seek for in Supershop
most of the time?
Thrice a week 18%
Once in two weeks 11%
10%
88%
Once in two months
53% 47%
Shwapno Groceries
41%
Agora
33%
Meena Bazar 18%
Cosmetics
43% 71%
They charge VAT on products whereas traditional markets don't
All the necessary products found in one platform
42% 45%
More pricey than the traditional markets
Variety of products
39% 40%
No Bargaining power in Supershop
Saves time of the customers
24% 37%
Some people have this perception that the agro products
in supershops are not fresh
Organized way of shopping
6% 10%
Habituated to shop in traditional markets
Moderate pricing compared to quality
15 of 40
SABBIR HASAN NASIR
EXPERT OPINION EXECUTIVE DIRECTOR, SHWAPNO (ACI LOGISTICS)
BECOMING A BRAND
As part of its Supermarket Industry coverage, MBR had the opportunity for a
one-to-one conversation with Mr. Sabbir Hasan Nasir, Executive Director
Shwapno (ACI Logistics). He enlightened us with the powerful journey of
Shwapno, how it turned out to be a brand and where it wants to go down the line.
Sabbir Hasan Nasir: Last year, Shwapno was awarded Secondly, we focused on service delivery. We had a clear
as the “Number# 1 brand in Supermarket Industry.” In understanding what group of people we are going to
these 9 years of action-packed journey, we have added 62 serve. Are we serving the down-to-earth village class or
outlets in different corners of the capital and other major are they urban, picky consumer class? Are we serving
divisions, and created value to thousands of individuals a boy who migrated to urban from a suburb? How
in terms of generating employment for a larger chunk, was his experience during shopping with his father at
enabling the village farmers and giving our customers childhood? How does he want to see fish? That’s why we
a superior flavor of shopping. I took over the company have kept live fish and live chicken because our endeavor
in early 2012 and the initial days were quite nailing. We was to migrate consumers’ mind from wet market to
tried to understand the market, adjust modern retail trade. I think Shwapno
the business model accordingly and performed really good in bringing
reshape it. relevance to the industry, relevance to
customers and pricing. These are the
Shwapno became the market leader key ingredients for Shwapno.
because we have a good understanding
of the market and the psyche of 2015 was a different ballgame
consumers, which is cardinal. Initially altogether. Like big retailers like Wal-
we were not doing well, during Mart, Tesco were capitalizing on value
2008-2013 we had to deal with some creation for money, we were doing
drawbacks in terms of health and hygiene, product the same too. However, our competitors started doing
availability, category stagey, marketing strategy and so the same as well. For the next level of differentiation, we
forth. We wanted to go for a rapid expansion and were ran different campaigns like safe, carbide-free food. We
little baffled about brand positioning. Then we tried to brought relevant technologies to ensure that the product
understand the value proposition of Supermarket, how is safe. For one-notch more value creation, we added
it will take shape in the next 5-10 years. At that juncture, a sub-brand “Life-style” to create a new top brand to
we set the right strategy for each category. We realized reinforce the mother brand.
a Supermarket should have some traffic builders, some In 2013-2014, we were the market leader, in 2016, we
profit generators, some destination categories and became the Number# 1 brand in Supermarket spectrum.
convenience categories. We demarcated the roles of each We changed the format of stores and this new Shwapno
category and that’s where it clicked for Shwapno and it outfit actually drew the attention of consumers. Apart
became market leader. By the “role of each category”, from the mid segment, we now have all brackets of
I mean we had to have a clear sense of what a certain consumers in this platform, which is amazing. In terms
16 of 40
of experience and ambiance, we are doing better than much profitable than the catchy-neighborhood ones.
many others of our competitions. In 2017, we got two
gold awards in communication award in across all SUPERMARKET IS NOT ABOUT MAKING COST
categories. The styling of brand is changing very fast now. DOWN AND GETTING SOME CUSTOMERS
HERE AND THERE, IT IS ABOUT CREATING
IN 2017, WE HAD ISSUES MAKING PROFIT OR PERCEPTION AND EXPERIENCE. LOOK-
MAKING SUSTAINABILITY AND WE ALSO MADE AND-FEEL IS AN ESSENTIAL FEATURE FOR A
IT BY HAVING A POSITIVE EDITDA SINCE SUPERMARKET.
JULY’17. NOW, TIME HAS COME TO REBUILD
THE WHOLE COMPANY, BRINGING A NEW MBR: How do you plan for the e-commerce platform
CULTURE FOR THE MILLENIALS. of Shwapno?
MBR: Could you please share the sourcing process of Sabbir Hasan Nasir: We recently launched the
Shwapno? e-commerce site of Shwapno which is on beta testing
mode. We want to create an integrated retail experience
Sabbir Hasan Nasir: We buy FMCG products from the through both online and offline shopping by 2019. Wal-
manufacturers. For fresh produce like fish and others, Mart is moving very first for integrated retail experience.
50% comes from the villages and 50% comes from the This is important because according to my anticipation is
whole sale market. The sourcing of other products is by 2030, the global online-offline ratio could be 40%- 60%
100% from suppliers. In our case, we have ACI at our and in Bangladesh the will be 20%- 80% or 30%- 70%.
back, thus we have some connections with farmers.
From different corners of Bangladesh, we collect fish and MBR: The tagline of Shwapno is –“Better shopping
fruits and distribute to all outlets. We are trying really with affordable price”. How do you ensure lower price
hard to make direct sourcing into 75%- 80% and to end level than competitors for some of the products?
this, we are thinking of new strategies since scalability is
an issue while talking about direct sourcing. Last year, Sabbir Hasan Nasir: We value the hard-earned money
the company turnover was USD 93 million, and this year of our consumers. In some of the cases and categories,
we expect USD 120-125 million. Our CAGR in last 3-4 our price level is little lower than competitors because of
years has been 34%, which is well above the industry scalability and direct sourcing. These are the two benefits
growth rate 14%, so we are making the market. If we can we try to pass on to our customers.
continue this growth rate with the EBITDA positive, then
we expect to scale it up to half a billion by 2021 if every MBR: What initiatives you have taken so far to attract
other thing and the financing go right. At the juncture, the customers?
we can have 90%- 95% direct sourcing from village. Sabbir Hasan Nasir: If you see the industry CAGR and
Shwapno’s CAGR, that tells you the story. We have been
MBR: Please tell us about the growth of Shwapno?
very close to our customer, both in-store and off-the
store. Our BTL was very powerful. Because of the city
Sabbir Hasan Nasir: Shwapno is growing fast. As I
corporation governance, which prohibits us from using
mentioned, our CAGR is 34% in the last 3-4 years. From
posters, billboards; we have some different context now
retail point of view, our gross margin is about 22%, whereas,
and we will definitely come up with solutions to be close
the same for Wal-Mart is 24%. We believe that the gross
with our consumers.
margin will increase up to 28% because there are strategies
yet to be performed. The store-to-store CAGR varies in the MBR: Could you please share the challenges
bracket of 15%- 24%. The Uttara-3, Gulshan-1, Gulshan-2 encountered throughout the journey?
and Green Road outlets can be termed as the top revenue
generating stores. The market share of Shwapno in Sabbir Hasan Nasir: We can’t run BTL activities properly
Supermarket industry is 44%. We are planning to have 100 which is a hindrance to reach out to our customers.
outlets in next 3, 4 years. We think that in 2021 we will be Additionally, the 15% vat would be a barrier for us, it’s
in a breakeven position and towards to profit. good that the plan is postponed. We think this VAT policy
will be totally unfair and discriminatory. Sometimes, the
MBR: What is your strategy for store placement?
administration personnel visit the Supermarkets and
Sabbir Hasan Nasir: In early days, the stores were located charge us without any justification. To my opinion, there
more on the neighborhoods. When I took over the should be a central laboratory where we can take the
company, I changed the strategy and took the brand to sample of our product and ensure the quality. Also, there
high-streets. I believe “A brand should behave like brand”. is labor scarcity. Because the employees of our stores are
The financial also shows that the high-street stores are mainly our students so they don’t sustain for a long time.
17 of 40
SHAHEEN KHAN
EXPERT OPINION CEO, GEMCON FOOD AND AGRICULTURAL PRODUCTS LTD (MEENA BAZAR)
As part of its Supermarket Industry coverage, MBR had the opportunity for
a one-to-one conversation with Mr. Shaheen Khan, CE0, Gemcon Food and
Agricultural Products Ltd (Meena Bazar). He talked about the steady 15 years
journey of Meena Bazar, how it became a part of consumers’ daily life and how
he envisages the retail chain store in the years to come.
Shaheen Khan
CEO, Gemcon Food and Agricultural Products Ltd (Meena Bazar)
MBR: Meena Bazar was established in 2002, at a time profit above 20% mark once we increase the number
when the concept of Supermarket in Bangladesh of outlets which will result in better sourcing, getting
just initiated. What thoughts incited you to start the better deals and strong bargaining power.
retail chain shop?
Every day, 10000 plus customers are visiting a Meena
Shaheen Khan: After 1900, the urban Dhaka was facing
Bazar outlet for buying their necessary stuffs. This is a
a wind of change and a lot of international chains were
huge platform for new brands to promote their product
entering into Bangladesh. At that juncture, we realized
and attract the potential customer base. We offer space
that there is a quiescent demand for a platform where all
to renowned brands to shelve and sell their products
the necessities of daily life of a consumer will be under
which is also one of our revenue sources. However, the
one roof. Then the absence and need of the platform-
scope is limited since scarcity of space.
namely Supershop dawned upon to us. Simultaneously,
the Chairman of Gemcon group has a passion for
MBR: As the market trend suggests, the consumers are
healthy and organic lifestyle. Therefore, both the
inclined to shop in Supermarkets with passing days.
untapped market demand
and our CEO’s vision What are the initiatives
blended together and the taken by Meena Bazar to
upshot is –“Meenabazar”. attract the consumer base?
18 of 40
MBR: Could you please elaborate the sourcing Shaheen Khan: VAT, government policy and lack
process of Meena Bazar? Does it follow direct/ of commercial space are the major challenges for
indirect sourcing? Supermarket sector. VAT should be uniform for all
retailers because, this is the only attribute that makes
Shaheen Khan: We don’t follow the 100% direct Supermarket less lucrative to consumers. Supermarkets
sourcing. Our sourcing process is a combination of both cannot go for expansion if the policy remains unchanged.
direct and indirect sourcing. Since, we are yet to catch Imposition of VAT has built a negative notion in
up with the desired volume of purchase, 100% direct consumers’ mind, many of them are not even aware that
sourcing is not affordable currently. For vegetables, perishable products don’t follow under VAT policy.
we follow 50% of direct sourcing and 50% of indirect
sourcing. Direct sourcing has some problems: all the best ANOTHER CHALLENGE FOR SUPERMARKET
quality vegetable doesn’t grow in a single place and the DIFFUSION IS SCARCITY OF COMMERCIAL
transportation cost doesn’t allow us to source different PLACES IN DHAKA CITY.
type of vegetable from different locations directly. We try
Super markets cannot just rent a random place and start
to collect multiple items from different sources to get the
running. People come to my store for having a good
best quality product. We also have some direct sources
shopping experience and I have to offer them that.
where farmers cultivate product for us. We directly
collect fish from Rajshahi hatchery, which are sold at Supermarkets need a huge initial investment, we have
regular basis. We are only one Supermarket don’t get the to import machineries which are quite expensive and
process chicken from the supplier. tax makes it even more costly. Our neighboring country
Supermarkets gained traction in terms of number of
We are the only Supermarket that has its own meat
outlets and sales only because their government took
processing unit. We collect chicken/beef from the firms
initiatives for the betterment of the industry.
and process those in our processing unit.
Growth of Supermarket depends on the government’s
MBR: How the farmers are benefitted from providing
vision about the city, if the government wants a neat and
products to Meena Bazar rather to any traditional
clean and more organized city then they have to think
kitchen market?
about restructuring and rejuvenating the Supermarket
Shaheen Khan: Farmers and consumers are the greatest industry and relocate the street hawkers, vendor to those
beneficiary stakeholders. Farmers are getting the fair Supermarkets for an organized and planned urbanization.
price when we directly outsource from them. When
MBR: What is your vision regarding Meena Bazar
farmers sell their product at a traditional process, the
down the line?
larger chunk of the price is eaten up by the middle men,
which increases the price of a product and consumers Shaheen Khan: We don’t believe in rapid growth rather,
bear the brunt. Farmers get the fair price when we follow steady growth which is why we didn’t added
Supermarkets directly purchase the products. Currently, more outlets. We are planning for next 3-5 years. Now,
many NGOs are working with farmers to train them on we intend to add 10 to 15 outlets within 3 to 5 years
better cultivation, NGOs give us the reference and we in Dhaka, Chittagong area. We would like to keep our
directly collect fresh quality products from them. promise to our customers that we always give healthy,
organic and quality products to our customers.
MBR: “Gourmet Bazar” is an initiative of Gemcon
Group to capture the premium slice of the consumer MBR: Please enlighten us about this sector growth.
base. What was the strategy behind undertaking this
initiative? Shaheen Khan: If we say according to the number of
outlets then we have 20% of market share. Supermarkets
Shaheen Khan: Offering exclusive and organic food growth has fall down when government added 4%
which is rare to find in Bangladesh, was the strategy VAT on product but the demand is increasing now we
behind initiating Gourmet Bazar. We try to make are again hopeful for an incremental growth. When
Gourmet Bazar a destination where customers will the sales fall down because of VAT then Supermarket
get exclusive, organic and healthy product. Although Owner Association decide that Supermarket will give
Meena Bazar has a separate section for organic products Vat discount they will collect 2 % of VAT from the
which we produce in our firm at Panchagarh, however, customers and they will subsidize 2% after a certain
Gourmet Bazar will be an international organic market. period Supermarkets couldn’t afford that any more then
Association decided no more VAT discount. Rent the
MBR: Could you please share with us the challenges space to renowned brand is one of the revenue sources
encountered throughout the journey? to the Supermarkets.
19 of 40
ENTREPRENEURS’ CORNER EXCLUSIVE SWEETS LTD.
Challenges
20 of 40
IDLC NEWS IDLC NEWS
21 of 40
KEY
INFO
EXPORT EARNINGS DROP BY BANGLADESH MOVES TO WITHIN
22 of 40
ECONOMY AT
PRIVATE CREDIT
GROWTH HITS
A GLANCE
58-month high at
SEEING ECONOMIC
17.84%
in August’17 TREND IN DATA
SPREAD OF LENDING LIQUIDITY POSITION OF
& DEPOSIT RATE THE SCHEDULED BANKS
0.59%
7.62%
Specialised Banks
11.09% State owned Banks
4.8 Private Banks
4.76
41.20% (Other than Islamic)
4.73 4.72
4.71 4.72 Private Banks (Islamic)
4.7
4.65 4.69
4.69 Foreign Banks
4.62
4.65 39.50%
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Total liquid assets for December 2015 was BDT 2577.94 billion
INFLATION EXPORT
2% 40%
7.00%
6.19%
5.58% 5.33% 7.37% 7.51%
4.49%
6.53% 6.84% 6.95% JUTE WOVEN GARMENTS
6.89% 6.94%
5.56% 5.41% 3.30% 3.44% 3.67% 3.53%
5.10% 3.10% 3.18%
3.07%
4.30% 5.38%
43% 2% 19%
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 KNITWEAR FROZEN FOOD OTHERS
Inflation rate in July 2017 decreases as both food and non-food inflation lowers down
23 of 40
SPOTLIGHT ON STARTUP KIKSHA.COM
KIKSHA.COM
Launched in 2016, kiksha.com.com is one of the leading B2C ecommerce ventures in Bangladesh. MBR had a
one to one conversation with Zeeshan Kingshuk Huq, Co-founder & CEO of kiksha.com to get an idea about the
inception and vision of the venture.
24 of 40
No concrete payment policy for online marketing
expenses: E-commerce sector doesn’t have any
fixed policy approved by government or any
regulatory body. Making payments while running
promotional activities through Facebook - is still a
concern. However, Zeeshan was optimistic as the
government is on the last stage of finalizing the
policy for E-commerce.
25 of 40
YOUTH LEADERSHIP INDEPENDENT MARKETERS’ ASSOCIATION (IMA)
INDEPENDENT MARKETERS’
ASSOCIATION (IMA)
Independent Marketers’ Association (IMA)is the premier marketing club in Independent University, Bangladesh
(IUB) which is dedicated to youth development, and youth empowerment by means of various informative and
challenging events, seminars and workshops. MBR recently had an opportunity to have a one-to-one conversation
with Abul Khayer Jyote, the coordinator of IMA.
MBR: Tell us about the start of this club for the students and club members specifically. To
mention few, IMA has worked with Brand Forum
IMA: It hasn’t been long since IMA has commenced its Bangladesh, in the happening of a renowned IDEA
journey on the vision it sees. It rings a bell, last year, on Competition, knows as Youth Fest 2017. The active
the month of August, how interestingly the idea popped members of IMA have volunteered, participated in the
up into our Club Coordinator Abul Khair Jyote’s mind, event. Also, two of the active members of IMA, Sabbir
and now that it’s a full-fledged club. The major purpose Ahmed and Imran Khan, both majoring in Marketing,
behind the formation of this club was to ensure that have earned the divisional champion award in the Idea
the students are consistently engaged with all activities Competition.
related to Marketing, and today’s business world, which
by the way, has indeed proven to be productive and Moreover, IMA club members always get the first
worthy. The inauguration was held along with Prof. invitation when it comes to different seminars and
Sarwar Uddin Ahmed, Dean, School of Business. workshop arranged by itself and other prominent
Although IMA started with just a handful people organizations like Brand Forum Bangladesh. Among
working on it, but today, it has successfully enrolled the plenty of achievements, one that is the most
400+ active members, who are responsible behind the successful thing that IMA organizes, is the Marketing
consistent growth of this club. Carnival in IUB. Abul Khair Jyote, Club Coordinator
of IMA, has never failed to impress the students
IMA, as the name says it all, is concentrated on the through organizing this carnival event.
branches of Marketing. It deals with ideas, creativity and
communication. Why is it important? IMA believes that Carnival Event is a real-life and practical example of
it can serve the students in a way, where there is a room Marketing experience for the students and everyone
for the students to maximize their potentials and work else attending the event. The carnival deals with selling
on self-development. In this era, the corporate world is products in stalls, promoting and learning consumer
no more a walk in the park. It requires hard-work, self- behavior, which in Marketing, is significantly essential.
driven and committed people to survive and sustain Students set up the stalls to exhibit their products,
in the business/corporate world today. We inculcate communicate and convince people to try out their
the corporate flavor in our students, which will guide products in an attempt for sale and negotiate the pricing
them to ace in whatever field they work in their career of products. The day-long event ends with electrifying
progression, it may not be marketing. We believe IMA concerts.The purpose of all these activities is to keep
is the platform where the students can allow themselves the students motivated and consistent in terms of
to enhance their credibility. not only theoretical knowledge but also practical or
real-life scenario. We believe that Marketing has a
MBR: Briefly share the club activities (competitions, lot to do with hands-on experience. Only theoretical
workshops, seminars) and club achievements. knowledge will not make somebody a good marketing
professional. Hence, we prepare our students during
IMA: IMA actively focuses on activities such as the early stage of their undergraduation so that they
workshops, seminars and business competitions can get a glimpse of the true corporate life.
26 of 40
Since the club is just one year old, it is too short a time wisher for the club. It’s a great thing that IMA has a
to achieve something big. However, the way we are team who are full of potentials and possesses leadership
preparing out students, they will indeed ace in whatever quality which profoundly helped IMA to overcome any
field they work. obstacles it faced through organizing massive events
like Marketing Carnival.
MBR: Briefly describe your recruitment process.
What qualities do you look for in potential members? MBR: How do you want to see your members down
the line once they get in the professional world?
IMA: Recruitment for IMA members are held every
semester. IMA maintains the standard recruitment IMA: IMA believes that it has the ability to transform
process and because of that, despite getting innumerable and shape up each and every individual engaged with
applications every time, it chooses very few. Students go the club. Through various tasks, responsibilities, the
through a registration process and an application fill- club members too believe that they have maximized
up process. Then they get called up for the interview their potentials by achieving the goals of the club.
where IMA coordinator Abul Khair Jyote himself takes Prior than anything, IMA envisages its members to be
the interview. The prime criterion to be a member of a better human being and then a better professional.
this club is to have a major/minor in Marketing and It is needless to mention how this will put an impact
he/she must be a student of Independent University, down the line once they in the professional world
Bangladesh. The qualities IMA looks for within and they will undoubtedly be the gold fish among the
the students are being self-driven, committed and plenty of fish in the sea. We believe in our students
spontaneous. If a student possesses these qualities, their and are hopeful that they will carry the legacy of the
skills can be honed to a standard level when they will be club wherever and in what capacity they work in
prepared to join the corporate. future.
MBR: What challenges do you face? How do you MBR: What are the club’s plans for the future?
overcome them?
IMA: There is no end to improvement. The club’s future
IMA: Almost all the events and activities by IMA plan would be to create a sustainable platform for the
requires huge amount of time, effort and commitment. marketing students where they can allow themselves to
Some challenges are inevitable, and only can be work on self-development create possibilities not only
overcome by people who are determined and well- locally but globally.
27 of 40
DR. SYED FERHAT ANWAR
TRAILBLAZERS PROFESSOR, IBA, UNIVERSITY OF DHAKA
Changing places, changing culture Science as core discipline. At that time, his father was in
Karachi. Right after the exam, the liberation started. He
Dr. Syed Ferhat Anwar is the only child of his parents. fought for his homeland and he was the Prisoner of War
His father was an army professional who worked in the (POW) in his camp which was in Loraly hills. This place
capacity of a doctor. His father was transferred to many is 8000 feet above from the sea level. At that juncture,
positions from rural to urban, aligned to his nature he and some of his friends got permission to sit for
of profession. As a result, Ferhat also had to travel a the second part of SSC examination in the camp. He
lot in his childhood, changing a number of schools. was notified that he was given permission to sit for the
They did not hold on to a place for long, for which exam before 18 days of the final exam. There were 11
he barely developed friends. With changing territory candidates and and only one stack book were given for
and versatility in culture, Ferhat had developed a lot the 11 candidates. Since, there was no lab in the camp,
more experience than that of a traditional kid. As he he had to take Arts as his HSC discipline. He was in the
perceives, travelling to places served him in ambivalent camp for 3 years as a prisoner of war and after that, he
ways. From his early childhood, he was involved and and his family back to Bangladesh.
interested in extra curriculum activities more than
studies. Due to the quick transfers of his father one after Arts instilled the foundation of human values in him.
another and the magnitude of cultural shifts, he learnt He felt that any work/studies that is dedicated to a
to deal with challenges and to grow different mindsets greater human cause can make much difference and
on a certain something. That was the time, the seed of add some real value to the world. In his progression in
innovation was inculcated in him. career, he always adhered to these human values.
Prior the liberation war, SSC examination was taken Barely anybody could beat the unique combination of
into parts, one in class 9 and the last one in class Science and Arts as disciplines in SSC and HSC of Dr. Syed
10.Ferhatattended his Part 1 exam in Dhaka with Ferhat Anwar. The human values of Arts touched him and
28 of 40
created an interest in him to study Arts further. However, already had his first international publication. He is
his family trend ran counter to his interest and he was the only person who had the opportunity to complete
asked to build his profession in medical. Ferhat grew a thesis on two disciplines: Biochemistry and Pharmacy.
discomfort for medical after witnessing the bloodshed In 1982, he joined BRAC as a Staff Economist. At the
war; therefore, he decided he would not go for it. first week, Dr. Abed asked him to visit Sunamgonj to
see the activities of BRAC. He was moved with the
AT THE END, THE humanitarian objective of BRAC. He could connect the
human values of Arts with his job, which made him feel
EXPECTED HAPPENED attached to his responsibility.
WHEN A YOUNG GUY During BRAC tenure, Ferhat developed many projects
WANTS TO STUDY for BRAC. He laid off the initial phase of Aarong and
BRAC Export. He always had this knack for innovation,
PSYCHOLOGY AND hence loved to come up with new ideas and implement
those.
IS FORCED TO STUDY
MEDICAL: HE ENDED UP Brac created a new perception about the business world
to him and as he remarks about his brac experience,
AT THE BIOCHEMISTRY “My learning from brac, i will never forget, they create
my human values.”
LAB.
After 5 years of service in BRAC, he left the organization
He got admission in the Department of Biochemistry in and got an offer from Beximco Pharmaceuticals Ltd.
University of Dhaka. On the same say, he got a call from IBA and they offered
him the position of lecturer. Most of Ferhat’s life events
A life-turning accident happened by chance, not that he planned for any. He
Ferhat was passing an enjoyable time in the decided that he would grab the offer who would call
Biochemistry Lab. One day he and his two friends were him first. Thus, upon getting the call from IBA before
working in the lab and wrapping up. One of his friends Beximco, he joined there as a faculty member.
was washing glass wares and she didn’t notice that there
was sodium in one bottle. Naturally, when sodium Teaching icons
and water mixed, it burst and she got tremendously
injured and started bleeding a lot. They both took her When Ferhat was a MBA student in IBA, he did not
to the hospital and later, she started recovering. That like the Marketing course since his background was
night, Ferhat returned home all blood-drenched and in Science and he was skilled in quantitative subjects
his mother opened the door. Being the only child of like Finance. Dr. Zahid Hussain, Lead Economist,
his parents, Ferhat was immediately asked to shift his The World Bank taught him finance. Zahid Hussain’s
career path from Biochemistry to something safer in teaching style always inspired him to connect to his
order to avoid such bloodshed. students in a non-conventional manner. Another
person who had quite an influence on his teaching style
Interestingly, at that juncture he took an admission test is Dr. Saad Andalib, Vice Chancellor, BRAC University.
for MBA in IBA out of peer pressure. He and his 5 other
friends attended the test. With no preparation, he passed The first course taken by him was Finance. Later on, he
it with flying colors and the other 5 couldn’t make it taught Accounting, Law and then he started teaching
there. Meanwhile, his mother was also pushing him to the core courses of Marketing.
shift to any other discipline other than Biochemistry.
That is how the chapter of IBA begins. Challenges
Start of Professional Career
Ferhat does not believe that he encountered massive
Although he joined the MBA program in IBA, he challenges in life. However, it’s not possible for an
kept working on Biochemistry Lab since, by then, he aspiring man without challenges. In 1990, he had
29 of 40
a major accident where he lost his eyesight. It took
him 3 years to regain the eyesight of one eye and he Advice to the young professionals
has a partial eyesight for 15 years. However, it did not
intimidate him in any way. He faced discrimination • Every person is born with a purpose and the
due to his eyesight when he was about to be promoted purpose is unique. Your job is to find the
as Assistant Professor from Lecturer. One of his class- purpose and work on it. At the same time,
mate cum student told the board that as he doesn’t need also remember that your purpose should
promotion since he has a short eyesight and there was not be confined to you only. While fulfilling
huge competition and limited amount of seat. it, you must see what you are doing for the
greater cause.
Dr. Syed Ferhat Anwar did not bother what people
had remarks about him. That particular statement • Believe in teamwork, both in university
assignments and in real life. If you help
pushed him to strive more and more and he worked
someone in a particular task, you will always
tremendously hard to prove his worth. He performed
get him/her bny your side in your bad times.
very well and lastly, he was promoted to Assistant
Professor.
• Never say no. Young generation should try
hard and soul to achieve their goals. They
Marketing practices in Bangladesh should not give up their hopes and give in to
the complexities. Failure is a part of life. You
Being a true marketing professional, Dr. Syed Ferhat must master the art of tackling it and make
Anwar has a wide array of knowledge in market your venture successful.
research. His opinion regarding the marketing practices
of Bangladesh goes like this: the companies have been • Don’t do too many things at one time. Try to
following the multinational practices. They hardly try to identify your strength because your strength
innovate and come up with their own tools, which may will offset your weakness. Look within you.
hit the target market. Every organization has different You must have some unique trait that can
strengths, weaknesses, and different target segments. take you to heights. If people help follow
Organizations who tried to understand the local market others than they never can success in their
and came up with their innovative marketing tools, life. You can be selfish. Selfish is not bad
eventually aced in the businesses. Square and Beximco thing, however, self-centered is harmful.
Pharmaceuticals are cases in point. The pharmaceutical
industry is doing extremely good in marketing which
is reflected their financial performance. Square and
Beximco made its place in the top 10 multinational Happiest Recreation
companies.
DR. SYED FERHAT
The startups are doing very well too. They are coming
up with different business models with innovative ideas. ANWAR’S HAPPIEST
The RMG sector is mainly production based where they
have limited scope of innovation. But they also did quite
RECREATION IS HIS
well after the Rana Plaza incident in 2011. Amongst
the Top 10 green factories, majorities are Bangladeshi.
FAMILY.
Bangladeshis have proved that they are very innovative, He loves to travel and till date he travelled to more than
they can work under challenges and can perform better 20 countries. Having a diversified childhood, he has this
than others. Now we are not only focusing on finance knack of coming up with innovative ideas. He has been
or profit only, we are working in those areas which have intrinsically involved with the education system: served
something to do with human values to a greater extent. as the Pro-Vice Chancellor of East West University.
Bangladeshi companies are becoming multinational. Currently, he is working on a project to bring foreign-
That’s a new trends we are witnessing now-a-days and quality education in Bangladesh with a Malaysian
it is all because we are touching human lives in some or University. He strongly believes that people have to be
other aspects. people-oriented.
30 of 40
31 of 40
INDUSTRY
UPDATE
AGENT BANKING ACCOUNTS NUMBER OF AGENT BANKING
WITNESS INCREASE OF 60.18% ACCOUNTS
About 3.3 lakh agent
AGENT BANKING banking accounts were
opened in the first half of 2017, which is an
1000000
increase of 60.18%. Of the 17 licensed banks for 872865
900000
agent banking, 12 are already running their own
agent banking operations. Dutch-Bangla Bank 800000 712499
Limited is the market leader with its 1,454 agent 700000
outlets and 5.75 lakh agent banking accounts. 544536
600000
The Central Bank has decided to agent banking to
500000
reach the poor segment of the society and existing
bank customers with a range of financial services, 400000
RMG
RMG EXPORT SHINES STRONG IN
EURO
32 of 40
LPG MARKET BOOMING
WITHOUT REGULATIONS
Consumption of Liquefied
POWER Petroleum Gas (LPG) has been
increasing at a faster pace since 2013 with
growing allegations of charging higher prices and
supplying the cooking gas without maintaining
quality and quantity. Ban on providing new gas
connections to households since 2013, price fall
and rise of consciousness among eligible people
about hazardous arrangements of daily cooking
are the major reasons for the booming market,
said officials.Last year, the annual consumption
exceeded 4, 00,000 tonnes of LPG, which was less
than 1, 00,000 tonnes until 2013. Bangladesh has
40 million households and commercial units that
require cooking gas and of them, demand from only
3.7 million is met by supplying natural gas through
pipelines. However, absence of regulations in the
sector was creating dissatisfaction among the
consumers.
33 of 40
MONTH IN BRIEF
investment
deficit plans to assemble 50 banking accounts
lakh and symphony
in increased assemble 60 lakh sets
soared to
Balance of Payments
In millions of USD 378
480 Bangladesh’s Government
balance of resumes borrowing
Trade Balance from banks to meet
payments entered
budget deficit
-178
the negative
-236
Overall Balance territory for the
-497
Current account
Balance
first time in16
-1056 years in July
July FY17 July FY18
34 of 40
MONTH IN BRIEF
35 of 40
For the Record
volume will
increase MANY COUNTRIES IN THE WORLD
HAVE IMPOSED LIMITS ON CASH
ICT expert Mustafa
Jabbar on PayPal’s TRANSACTIONS.
introduction in ABU HENA MD RAZEE HASSAN, DEPUTY GOVERNOR, BANGLADESH
Bangladesh from BANK on Government’s would-be initiative to put caps on cash transactions
October 19 to curb illegal money flow
36 of 40
ANALYTICS
SEEING
TRENDS
IN THE
DATA
THE WAY WE WORK NOW In 2012, the central bank approved 9 more banks in addition to
existing 47 commercial banks in Bangladesh. These are: NRB Bank
AN EVALUATION OF THE Limited, NRB Commercial Bank Limited, and NRB Global Bank
PERFORMANCE OF NEW Limited, Union Bank Limited, Modhumoti Bank Limited, Farmers
COMMERCIAL BANKS BankLimited, Meghna Bank Limited, Midland Bank Limited and South
Bangla Agriculture & Commerce Bank Limited. The report shows a
comparative performance analysis of the nine banks in terms of their
operating efficiency, NPL and profit.
Operating Profit to Total Assets Return on Assets (ROA) 2013 2014 2015 2016
3.2%
7%
7%
6%
6%
6%
6%
6%
6%
2.1%
2.1%
2.0%
5%
5%
5%
5%
5%
5%
1.9%
1.9%
1.8%
1.8%
4%
1.6%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
1.5%
1.4%
1.2%
3%
3%
3%
3%
3%
1.0%
1.0%
0.9%
0.8%
0.7%
0.6%
0.5%
0.5%
2%
2%
2%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
Commercial Global
NBR NRB NRB Modhumoti Meghna Midland SBAC Union FBL
-0.4%
Commercial Global
-0.5%
4.0
16.9%
15.2%
14.1%
13.8%
12.4%
11.2%
11.0%
10.4%
9.6%
9.5%
9.2%
8.5%
1.9
8.1%
7.3%
6.3%
1.5
5.3%
5.0%
4.9%
1.0
1.0
0.7
2.4%
0.6
0.5
1.9%
1.9%
1.6%
0.4
1.2%
0.9%
1.1%
0.9%
0.8%
0.7%
0.3
0.2
0.3
0.5%
0.5%
0.3%
0.3%
0.3%
-0.3%
0.0
0.1
0.1
0.0
0.0
0.0
NBR NRB NRB Modhumoti Meghna Midland SBAC Union FBL NBR NRB NRB Modhumoti Meghna Midland SBAC Union FBL
Commercial Global Commercial Global
-1.8%
-1.7%
37 of 40
CAPITAL MARKET REVIEW MONTHLY MARKET STATISTICS
Monthly Commentary l
After reaching the 6,000.0 points’ benchmark in of the month’s total turnover centered on Banks.
August, 2017, DSEX stayed afloat over that level in Telecommunication sector also supplemented the
September. By the mid-September, DSEX climbed market gain, advancing by 6.4%, as the largest
234.1 (+3.9%) points and created its all-time high market capitalization stock GP went up by 6.6%.
of 6,240.6 points. Moving forward some natural Meanwhile, Engineering sector was the worst loser
correction took place, which lasted throughout among the major sectors, falling by 5.3%. Textile
the month. In the end, DSEX closed the month also declined sharply, by 5.1%.
at 6,092.8 points, netting an 86.4 (+1.4%) points
gain. Blue-chip index DS30 also followed similar Investors’ participation level in the market was
pattern of topping out at middle and correcting very encouraging. Total daily turnover averaged to
thereon. DS30 closed the month 1.8% higher than be BDT 10.5 bn. However, turnover level declined
the close of the previous month. in the later part of the month, as market was in the
correction phase.
Bank remained to be the center of all activities
and top gainer in this month as well. The sector Meanwhile, MSCI Frontier market index increased
posted 6.7% gain in September. RUPALIBANK by 1.8% this month. Among the regional peers,
(+28.1%), SIBL (+21.0%), SHAHJABANK Pakistan and Vietnam outperformed Bangladesh;
(+19.6%) and PREMIERBANK (+19.3%) shined increasing by 2.9% and 2.8% respectively
the brightest among all the banks. Overall, 40.8% compared to 1.4% advancement of DSEX
Indices Index Point, Sep 2017 1M Return 3M Return YTD Return 3Y Return
Bangladesh
Peer Countries
Pakistan (KSE 100) 42,409.3 2.9% -8.9% -11.3% 42.7%
Sri Lanka (CSE - All Share) 6,438.2 0.7% -4.6% 3.4% -11.2%
Vietnam (VNI) 804.4 2.8% 3.6% 21.0% 34.3%
563.7 0.4% 4.9% 12.9% -18.7%
38 of 40
Top Twenty Market Cap (September, 2017)
Daily Avg. Turnover
DSE Code Sector Mcap1 (USD Mn) 1M Return 3M Return YTD Return 3Y Return
(USD Mn)
SQURPHARMA Pharmaceuticals & chemicals 2,601.6 2.3 7.0% 5.5% 22.8% 49.1%
BATBC Food & Allied 2,225.7 0.6 -0.4% 5.8% 23.5% 13.3%
RENATA Pharmaceuticals & chemicals 879.3 0.1 2.2% 0.7% 7.7% 70.2%
UPGDCL2 Fuel & Power 749.5 0.3 -4.4% -9.9% 17.7% N/A
OLYMPIC Food & Allied 673.3 0.2 -0.7% -2.4% -11.8% 92.9%
TITASGAS Fuel & Power 583.6 0.3 -3.3% -5.9% -3.6% -39.8%
BXPHARMA Pharmaceuticals & chemicals 536.9 0.8 -1.5% -5.5% 32.2% 74.7%
SUMITPOWER Fuel & Power 521.5 2.0 1.4% 3.9% 14.6% 22.0%
MJLBD Fuel & Power 446.1 1.1 -3.0% -1.8% -0.3% 6.0%
MARICO Pharmaceuticals & chemicals 436.6 0.1 8.7% 9.4% 21.7% 9.0%
2
3Y return of UPGDCL is unavailable as it was listed in 2015
Top Ten Gainers’ List (September, 2017) Top Ten Losers’ List (September, 2017)
DSE Code 28-Sep-17 31-Aug-17 % Change DSE Code 31-Aug-17 31-Jul-17 % Change
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Top Ten Closed End Funds based on 5 years’ (CAGR) performance:
"Price1 "NAV1 "Price/ "Dividend 2 NAV Return3 "Redemption
DSE Code Fund Manager
(BDT)" (BDT)" NAV" Yield (%)" Year"
2017 YTD 2016 2014-16 2012-16
NLI1STMF VIPB 15.0 15.98 93.9% 10.0% 22.6% 20.0% 17.7% 15.7% 2023
SEBL1STMF VIPB 14.0 14.99 93.4% 9.6% 22.3% 19.3% 16.5% 14.2% 2021
GRAMEENS2 AIMS 14.9 19.31 77.2% 7.4% 20.0% 15.1% 13.6% 12.1% 2021
RELIANCE1 AIMS 10.8 15.09 71.6% 9.3% 18.9% 17.1% 10.7% 11.8% 2027
IFILISLMF1 ICB AMCL 8.3 10.25 81.0% 10.8% 16.1% 14.0% 12.9% 11.0% 2023
1JANATAMF RACE 7.0 11.95 58.6% 2.9% 19.3% 6.5% 12.2% 9.8% 2020
ABB1STMF RACE 7.0 12.49 56.0% 4.3% 19.7% 8.9% 9.9% 9.8% 2019
FBFIF RACE 6.5 12.02 54.1% 3.1% 17.5% 9.1% 9.3% 8.8% 2018
POPULAR1MF RACE 6.7 11.88 56.4% 5.2% 20.3% 8.2% 11.1% 8.7% 2019
PHPMF1 RACE 7.1 11.82 60.1% 3.5% 22.5% 7.4% 10.9% 8.0% 2019
1
Price as on September 25, 2017; NAV as latest published
2
On latest cash dividend declared
3
CAGR computed for respected periods, except for 2017, adjusted for dividend. YTD returns of funds debuting within the year represent return generated since debut, hence is not
directly comparable with return of funds that operated throughout the year.
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BRANCH ADDRESS BRANCH ADDRESS
SAVAR BRANCH
‘Savar New Market’ (3rd Floor) World Trade Center (5th Floor)
Holding No. 3, Savar Poroshova 102-103 Agrabad Commercial
Savar, Dhaka 1340 Area, Chittagong 4100
Tel: +880 9609994352 Tel: +88 02 9817647-9 Tel: +880 (31) 711034
COMILLA BRANCH
Artisan Nasir Center (3rd Floor)
437 Nazrul Avenue, Kandirpar
Comilla 3500
Tel: +880 (81) 64 907-8, 72881 Tel: +88 09609994352
BARISAL BRANCH ELEPHANT ROAD BRANCH CHOWMUHANI BRANCH RAJSHAHI BRANCH FARIDPUR BRANCH
L L Tower (2nd Floor) Pearsons Tower (1st Floor) N S S Bhaban (2nd Floor) Sahidullah Tower – 1 (2nd Floor) Hafeez Building (2nd Floor)
Holding No. 119, Sadar Road 299 Elephant Road Feni Road, Chowmuhani 32/A Ranibazar, Ghoramara, Boalia 94 Mojib Sorok
Barisal 8200 Dhaka 1205 Noakhali 3821 Rajshahi 6100 Faridpur 7800
Tel: +880 9609994352 Tel: +880 9609994352 Tel: +880 9609994352 Tel: +880 9609994352 Tel: +880 9609994352
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