Bangladesh's growing economy and its booming construction section have prompted Indian giant Aditya Birla Group to launch its cement brand, UltraTech, in Bangladesh.
"The cement business is a great business to be in, and Bangladesh has enormous potential for growth. I believe that UltraTech is uniquely positioned to capitalise on these developments, given its unique brand values and customer orientation," said Vivek Agarwal, chief executive of international business of UltraTech.
Earlier, Aditya Birla Group acquired Dubai-based ETA Star Cement Company in April last year, and, by extension, the local operation of Emirates Cement in Bangladesh.
Even though the UltraTech boss refused to disclose the size of investment in Bangladesh, it was reported in the Times of India that the enterprise value of the deal would be around Rs 1,700 crore (approximately $382.06 million).
In conversation with The Daily Star, Agarwal pledged to introduce the latest in technical know-how and an environmentally sound manufacturing process during its stay in Bangladesh.
"We'll add value to the Bangladeshi cement market through technological innovation. The methods to grind clinker or add gypsum or handle fly ash always differ from company to company."
Agarwal said: "We have already brought our technical know-how, which would help us make a difference."
Its plant in Muktarpur, Munshiganj, has a production capacity of 2,000 tonnes a day. The company introduced equipment that would prevent fly ash, an ingredient to make cement, from polluting the environment.
The company will also manage to meet its own energy requirements. It has set up a 10 megawatt captive power plant inside the factory. The company will produce half a million tonnes of cement a year in Bangladesh.
Agarwal is optimistic about good market response from the already self-sufficient market.
"See, the buying behaviour and product features are almost identical in markets between India and Bangladesh. Since we have a very good reputation in Sri Lanka, Bahrain, UAE and India, we hope that we'll win this market as well," he said confidently.
UltraTech will import clinker from India and UAE, he said.
The company has 11 integrated plants and one white cement plant in India, one clinkerisation plant in UAE, 15 grinding units -- 11 in India, 2 in UAE, one in Bahrain and Bangladesh each -- and five terminals -- four in India and one in Sri Lanka.
In 2009, the group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine.
Source: The Daily Star
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