Akij Group

Akij Biri Factory Ltd. Akij Biri Factory Limited Akij Biri factory is one of the leading biri manufacturing companies in Bangladesh. It was established by late Sheikh Akij Uddin. Behind the Akij group establishment Akij Biri played a very important role. Sheikh Akij Uddin (owner of Akij Group) started the handmade biri business since 1948. Now Akij Biri has eight biri making factories in all over the country. The product is distributed under strong distribution system with a reasonable price. For that reason, the company has large number of satisfied loyal customers with strong brand image.This sector gave a real boost to the revenue of the conglomerate as well as making a substantial contribution to country’s economy. History of the company After 1947 After 1947 the founder, Akij uddin got married and started a business of small grocery shop. In that shop one of the daily products was the â€Å"Leaf Biri†. This product changed his life dramatically. The leaf biri was m ade by â€Å"Tendu Leaf† which was imported from India. During that time it had a huge demand in the countryside. In 1950 Then he thought that if he made this biri by himself then it would be more profitable for him.Then in 1950 Akij and one of his friend’s father Nitai bidhuvushon started to produce handmade biri. In a few days it became so popular. After a while there was an accident happened in his shop. But after the accident he again started to produce the biri. Within in a few days the demand of biri reached from his village to Doulatpur industrial area. In 1955 In 1955 he went to Navaran and started to live there. Beside his house he and his cousin established a factory. That time this biri became a brand name, which is Akij Biri. During the time the two major competitors were Ohab biri and Jalil biri.Akij Uddin sold his biri in low price than his competitors to increase the demand in the market. The daily demand stands to 25/30 thousands. The fame extended out to Jessore, Khulna, Khushtia, Faridpur and in other districts also. In the meantime he became involved with jute business. After 1972 Aftar the liberation war of Bangladesh again he started his biri business and with his vast struggle he was able to create the same demand of Akij biri. In 1977 the daily demand of akij biri stands to on an average 14 lakhs. In 1979 this demand became 1 crore in a day. From that time to till the akij biri is serving the maximum demand of the country.Company Profile Name of the Group| Akij Group| Company Name| Akij tobacco Company| Tobacco Experience| Since 1950| Yearly Turnover| US$ 700 Million| Chairman| Sheikh Mohiuddin| Managing Director| SK. Aziz Uddin| Directors| SK. Momin Uddin And SK. Amin Uddin| Nature of Business| Tobacco and Allied Products| Human Resources| Officers and Workers Total 25,000 plus Person| Products/Allied| Processed/Packed Tobacco, Cigerettes, Cut Rags, Expanded Cut Stem. | Brands| Akij Biri, Akij King (Hand Made Cigarettes)| Monthly Production| Akij Biri- 2000 Million sticks| Fixed Asset| US$ 85 Million|Export Market| Singapore, Middle East, Malaysia etc. | Name of the Banker| Standard Chartered, HSBC & Shonali Bank Bangladesh Ltd. | Corporate Office| Akij Chamber, 73 Dilkusha C/A, Dhaka- 1000, Bangladesh| Telephone| +8802-9560177| Email| [email  protected] org,| Web| www. akijtobacco. com| Strategy of the company Akij Biri Company’s main strategy is to keep low the price and make it available for all lower income people. The raw material of this product is very much available in Bangladesh that’s why it is easy and cost effective to produce and keep the product price low than other company in the market.Organogram of the company Chairman Managing Directors Directors Directors Audit Department Marketing Department Account Department Transport Department Finance Department Purchase Department Products & Tobaccos Tobaccos| Growing Areas| Akij Biri| Akij King| Flue Cured Virginia| K ushtia/ Jessore Belt, Chittagong Hill Areas| | | Burley Tobacco| Rangpur/ Dinajpur Belt, Manikgonj Leaf area| | | DV (Dark Varginia)Jati (cross Varginia)Motihara (Rustica)Talim ( Rustica)| Rangpur/ Dinajpur Belt| | | Competitors : Biri is a large industry in Bangladesh. There are many brands who are manufacturing biris like * Aziz Biri, Abul Biri, * Bengal Biri, * Momtaz Biri, * Raja Biri etc. At present, Akij biri is the largest biri company in Bangladesh and strong competitors to others. As Akij biri is the market leader and they have the 45% share of the market on the basis of market survey, revenue board, and internal report etc. So it means that the other biri brands are not in that position to compete with them. They are mainly considering cigarette brands as their substitutes. Their dominant regions are Tangail, Mymensingh, Kushtia including other districts of the southern part of Bangladesh. Management of Akij biriThe whole function of Akij Biri is relying on supply chain ma nagement. Akij biri first collect raw materials from their different suppliers. The main market is Rangpur. After collecting the tobacco they usually preserve it for 6 months to 1 year for better taste and quality. Akij biri always try to produce better quality product and also ensure the standard of the product. The objective behind the management efforts are: * ensure the product accessibility * continue the quality of the product * maintain low price for the customers. The management main focus is to remain the market leader for the long run.That is why it makes its products so much available and low priced. The company has also extensively marketing set up, unique and exclusive products that makes the company more strong and market leader. It has also own tobacco fields and available raw materials that make the company able to sell the product at comparative reasonable price. Production The production process of Akij biri is purely labor based. Almost every process is done by la bor. They use three different machines for dying, cutting, crashing, and mixing. The basic steps in manufacturing of Akij biri are generally as follows- * Sun cure * Washing Crashing * Mixing of different ingredients * Making paper tube * Packaging Distribution Akij biri has its own strong distribution channel. The product is available throughout the country with the help of an organized distribution channel. The finished product is delivered to the sales centers of Akij Biri. Akij Biri has in total of 12 sales centers in Bangladesh. These are Dhaka, Mymensingh, Brahmanbaria, Sylhet, Comilla, Chittagong, Faridpur, Rajshahi, Bogra, Khulna and Jessore. The company has divided the whole area of the country into 200 territories and each of them having a single distribution point.Then it is distributed to 700,000 retail outlets throughout Bangladesh from these points. To deliver the goods to the outlets the company planned 7,000 different routes so that each route is planned to deliver a t 100 retail outlets. Sales and Marketing As Akij Biri is only for a certain group of customers, right marketing efforts are needed to capture profit. The target customer of Akij biri is low socioeconomic group of people from both urban and rural areas. The price of the biri is low for the target customers and for grab the large demand of the customers. In our country it is banned to advertise any kind of tobacco product.There are some strict rules and law to show the advertisement in TV channel, printing media etc. But the availability, brand image and low price is working as marketing of the products. So the marketing strategy mainly depends on the distribution and sales strategy. The reason behind continuing biri business of Akij group Akij biri is one of the big company and many people are working in this company and in our country it has a great demand within lower income people. At earlier period it was a small business. But now it is expanded a lot and fulfills the maximum de mand of the customers in this segment.It is their turning business to establish themselves as a group of a big company. The profit that comes from Akij biri is 10%. The Akij group mainly get the brand value for this business, then it expanded its business in different sectors but this Akij biri business changes the way of doing business in the time of late Sheikh Akij Uddin. The low income people greatly depend in this biri. It was the first initiative of doing business in Bangladesh by Akij uddin. And now many people are working there and their family members also depend on this company.And they doing business as market leader after 1950, so now it serves a large amount of customers in the market as a giant company. So they are continuing the business still now because it earns a huge profit and it has huge demand in market and the main reason is Akij group gain its huge brand name because of Akij biri.. Dhaka Tobacco Industries A Dhaka Tobacco industry is included in the Akij Grou p in late seventies when government has decided to handover the factory to private sector from the nationalized sector. Now the company is working on eight different product brands.It also makes franchise license with the Philips Morris International Company and introduce Marlboro cigarettes in Bangladesh. History of the company The founder of Akij uddin came to Dhaka with his family after the liberation war. In 1978-1979 he bought the Dhaka tobacco Industry (DTI) from the government sector in an auction. In this time his coworker Din Islam helped a lot. For the office he bought a land in industrial area, Dilkusha. After that he again bought Asian tobacco Limited. When the demand was increasing a lot, he rented Khulna Tobacco Industry and started other 10 units in the various part of the country.The Dhaka Tobacco factory is located at Morkun near Tongi and lot of investment into men and machineries has turned the factory into a modern cigarettes production unit. It employs about 120 0 people who work in a congenial atmosphere to deliver right quality to satisfy the million of smokers’ taste and needs. At present company has invested 15 million taka in this industry. Dhaka Tobacco Industry controls the 15% of the share of Bangladesh’s cigarettes with its production of quality cigarettes. Now after fulfilling the country’s demand Navy and Sheikh are exported to Middle East and Malaysia.In 2008, it introduces Marlboro cigarettes with the help of world famous Philip Morris International franchising license. Its production capacity is 150 million daily. Every day on an average it produces 120 million. Now approximately one billion cigarettes are produced per month by the company’s factory in Tongi, Gazipur. One hundred million of the Navy brand are exported quality and are sold in Dubai. Company Strategy The company produces its goods by considering the quality of the cigarettes to compete with the competitors. It also considers the price factor. Akij roup has huge raw materials suppliers on this field, so it becoms easy for the company to produce quality product with low price and grab the huge customers than the competitors. So the company strategies comply with the corporate strategy. The company always tries to compete with the multinational company also by producing quality products and also maintaining the price. The company strictly follows the ZERO DEFECTS strategy in producing the products. Products of Dhaka Tobacco Industries Product Range| Competitors| High Segment| * Castle Full Flavor * Castle Lights| 1. Benson & hedges 2. Gold leaf 3.Gudam gharam 4. Pine 5. Black 6. Pall-mall 7. Hollywood 8. Ni 9. Lincoln 10. Dunhill 11. Sunmoon 12. Star etc. | Medium segment| * Navy| | Lower Medium Segment| * Sheikh * Real| | Low Segment| * Five star * K-2 * Surma & Diamond * Red & white| | * Presently DTI enjoys more than 10%market share in the high segment * Presently DTI enjoys more than 48%market share in the medium segment * Presently DTI enjoys more than 80%market in the lower medium segment * Presently DTI enjoys more than 50%market in the low segment The competitors of Dhaka Tobacco Industry are the main problem.There are strong competitors in the market and who serve a large number of people. British American Tobacco is one of the strong competitors of it. BATB is providing verity of products in the market. Dhaka Tobacco also has various cigarettes for different segments. By various segments quality products it is serving huge customers and make its brand name. It is also ensure the Zero Defects product strategy to stay in the market and to compete with the rivalry. By franchising Marlboro it also create a different zone for customer to meet their need for competing with the multinational companies.By this way it compete in the market along with different rivalry and also able to get profit. The business unit also has its own raw materials. That makes the company more benefi ciary in producing the products and can able to serve different segment with different ranges products. The transportation cost also low for having own production farms. Management of the company is also very conscious about their product growth. The product is maintained the required quality and price range to compete with the competitors. These also give the company a extra benefit. That makes the company strong against its competitors.Akij Zarda Factory Limited The factory was established in 2000. It produces various flavored chewing tobacco. It basically fulfill the demand of various types of customer who use Jarda in betel leaf, cigarettes etc. The Talim and Rustica Tobacco (motihar) is mainly used in producing the Zarda. Akij Company has its own farming area where it produces Tobacco. That makes the Zarda Company more beneficiaries behind establishment of it. Products Akij zarda Factory Ltd. is producing four kinds of Zarda to fulfill the different customers in diversified tas te. Product Range| Competitors|Special Patti| * 50 gm * 25 gm * 12. 5 gm| * Hakim puri * Mokim puri * Shova * Baba * Roton| Golden Patti(surovi)| * 50 gm * 25 gm * 12. 5 gm| | Akij Zarda (Beli)| * 50 gm * 25 gm * 12. 5 gm| | Vhiza Patti| * 25 gm * 10 gm| | The Zarda Factory Limited is a small sister concern of Akij Group. It has an available raw material that helps a lot in producing Zarda. The processing system of leaf also good and the products meet a wide range of customer demand. Akij Company has its own strong brand name, which also makes the products become more popular in the market.The company’s strong rivalry is Hakimpuri zard, but Akij Zarda become able to compete with it by its quality product and price range. The main corporation philosophy is by maintaining the quality of the product also make the product available for the general people. The Zarda Company’s philosophy is also complying with the corporate philosophy. So the factory is not so much big siste r concern of the Akij Group but it makes a different place in the market by providing various types of Zarda. The Tobacco industry of this company also gives it the extra benefit in producing Zarda. Akij Match Factory Ltd.Akij Match Factory Limited Akij Match Factory Ltd. Is one of the most successful companies in Bangladesh which serves a huge number of customers in this market. It is situated at a beautiful site near Muktapur Ghat on the bank of the river Sitalakshaya. It is purely automatic match factory which produces 100% carbonized high quality safety matches. Most of the raw materials come from various parts of Bangladesh by river. The river Sitalakshaya facilitates a lot in transportation that flows near the river. History of the Company It was established in 1992 but started its operation from 1997.The main objective of this company is to produce great quality product by using the latest modern technology. It has two brands which are very much popular in the market. Dolphin is the first product of the company. Immediately after the introduction of the brand it became very popular among the customer because of high quality and intensive distribution channel in the country. After that it produces the Firebox match, which is also become very popular in the market. Now this factory has capacity to produce 30 thousands and on an average 27 thousands piece they produced daily.In the market the company provides approximately 4 lakhs 50 thousands piece matches and 3 lakhs 50 thousands Firebox in a month. Products * Dolphin * Firebox Quality of the product is very strictly controlled. Non standard products (wood layers or sticks) are discarded at every stage. But these things are not washed out. The sticks, wood layers and any other scrap wood will be used in AKIJ Particle and Hardboard Mills. The faults in the discarded matches are dealt with and these are packed manually. Rotary packers packed the mass of match and these go straightforwardly to the market.De velop up of business In that time, when Akij Company introduced Dolphin matches then in the market there was some renowned brand like projapati. So as an infant company it faced some initial problem like to grab the customer of that market and make it available to the remote area of the country etc. The company is fulfilling its own objective by producing modern quality matches. Dramatically Dolphin brand becomes so popular to the customer for its availability and quality. Now fire fox is doing the same job. It is now grab the maximum market share and customer.It is now a leading brand in the market for its quality and popularity. The matches provide great services to the customer and availability of the product make it so strong in the market. So here also company complies the strategy with the prorate strategy. Akij corporations limited It is a sister concern of Akij Group. Akij Corporation Limited is the one of the most structured distribution company in the Bangladesh. Akij Grou p is country’s one of the leading business conglomerates. In 1992 Initially Akij Corporation Limited was known as Amin Enterprise and started its operation in 1992.In 1997 In June 1997 Amin Enterprise was renamed as Aminuddin Enterprise Limited In 2001 In 2001 Aminuddin Enterprise Limited was again renamed as Akij Corporation Limited. Akij Corporation Limited is accountable for the marketing and distribution of three industries of Akij Group that is Dhaka Tobacco Industries, Akij Match Factory Limited and Akij Zarda (chewing tobacco) Factory. * Akij matches’ unused wood stick are used in paticle boar * Akij automotive by akij motor ltd * Akij tobacco to akij leaf processing unit * Akij power plant is used in akij particle board industry