How many Cement plants are producing in Bangladesh 2020?
History and Development of Portland Cement in Bangladesh
Cement is a major ingredient for the construction industry. The process of producing cement is highly energy intensive. The process requires procuring limestone, shell, and clay. Afterwards, the raw materials are crushed and heated at a temperature in excess of 1,000 degree Celsius to produce clinker. For producing final grade of cement, clinker is mixed with gypsum and grounded to fine powder. The cost of the whole process amounts to 29% energy, 27% raw materials, 32% labor, and 12% depreciation. The intensity of uses of cement depends on the rate of urbanization and the amount of development projects undertaken.
The development of cement industry in Bangladesh dates back to the early-fifties. Till 1990 about 95% of the country’s demand for cement had been met through import. Some enthusiastic entrepreneurs ventured into setting up cement plants during 1997 to 2000 which opened a new era in this sector. Prior to the inception, Bangladesh used to import cement from global market. As new players entered into the market with no participants, they tapped into the already existing huge demand for cement. The dependency on import lowered in the following years. Currently local producers and multinational companies have engaged in cement production to fulfill the local demand.
Product nature:
There are several types of common cement which can be grouped into five general categories: Gray Ordinary Portland Cement, White Portland Cement, Masonry or Mortar, Oil-well Cement and Blended Cement and three strength classes: ordinary, high and very high. At present, the ratio of production of PCC and OPC is around 95:5. PCC gives equal strength and durability like OPC. Only 65-80% of clinker is required to produce PCC while 95% of clinker is required to produce OPC. So, worldwide PCC has become popular which requires less clinker.
Global Scenario:
Fuelled by the extensive growth of Chinese cement market and cement markets of developing countries, the global cement market has experienced a massive growth. According to IMARC group, the global market rose to volume of around 5.0 billion tons in 2016 which was around 3.7 billion tons in the year 2012. Chinese market has continued to be the biggest driver of growth alongside countries from North America as USA has continued to recover from recessionary conditions that began in 2007. In the upcoming years India is expected to garner the fastest growth in terms of demand for cement generating 8.0% growth rate per year in the next five years.
Three-fourth of the cement produced in the country is consumed in Dhaka and Chittagong division and the rest in other divisions
Challenges & Prospects
The cement industry currently faces challenges of low utilization of resources, a growing overcapacity, as well as sensitivity to prices of raw material and energy required for production. The market is also highly sensitive to changes in foreign exchange rates as majority of fuel/raw materials are imported. Recently the devaluation of the taka against USD (from Tk 80/USD to Tk 85/USD) further raised costs in 2018 causing manufacturers to raise their prices for the first time in 6 years.
Costs of production are further exacerbated due to government policy of allowing less truck loads to reduce pressure on roads. This has in turn pushed producers to turn to barges for transport on water to reduce costs. Although producers are seeking to transport cement and raw materials by boat, an inadequate supply of barges hinders progress. All together, these factors are contributing to operational inefficiencies despite measure taken by producers to reduce costs, such as strategically locating facilities to reduce high transportations costs.
Despite the many challenges at work, the cement industry has recently announced record sales in 2018, due to the increased consumption in rural and infrastructure projects. This year sales of 33 Mn TT took place, a 12% growth in consumption. Exports to India have also been on the rise with a 24% growth during July 17 to May 18 according to Export Promotion Bureau.
Geographical breakdown of consumption:
In Bangladesh, business operation of the most of the cement manufacturers is geographically concentrated. Cement consumption also varies region wise. Out of the total production, three-fourth of the cement produced in the country is consumed in Dhaka and Chittagong division and the rest in other divisions.
This made cement a regional commodity where lower distribution cost makes it remunerative to its producers. However, a major change is now apparent in the rural economy of Bangladesh that resulted in increased consumption of cement in those areas. Especially the demand for cement is grown in the northern, western and southern part of Bangladesh.
The regional deviation is mainly due to the nonexistence of balance of demand and supply; difference of per capita income of the population and the level of industrial developments of the regions. Another important feature of cement industry is that it highly depends on plant location. High transportation costs make it infeasible for the manufacturers to supply cement to distant areas of the plant location.
To gain optimum control in a specific locality, cement manufacturers establish production facilities there. Such initiatives are not only driven by the intention of reducing high transportation cost, but also required by the product nature itself as quality of cement starts to diminish after production. For example, LafargeHolcim Cement leads the Sylhet market as they have a plant there.
Bangladesh Cement Industry-Introduction
Bangladesh is on its way to creating a solid concrete foundation for its future through various mega projects aiming to develop the nation’s infrastructure. With more than $3.5bn budgeted in FY19 for the 7 infrastructure mega projects including bridges, rail lines, power plants, and a metro rail , the cement market in the country looks to be a bullish market.
Besides these large scale projects, however, a higher income per capita for the greater population also has led to greater consumption as building personal homes, a somewhat tradition of Bangladeshis, has become more affordable. Developments in real estate and commercial/public institutions have also contributed to consumption.
An increasing number of migrants traveling from rural areas to the big cities for opportunities of better education, jobs, and wages, increasing urbanization in the country is also fueling greater growth in the industry.
The cement industry in Bangladesh has been showing double digit growth over the last 5 years. The nation currently consumes less that one fourth of the world’s general consumption of 500 kg cement per capita, but looks to be rapidly closing the gap. High growth in this sector is further reflected considering Bangladesh is one of the largest global importers of clinkers.
According to On Field Investment Research (OFIR), global demand for cement declined by 2.8%, mainly due to a fall in consumption in China, which also produces 60% of global supply. Outside China demand increased by 3.2%
Market Fundamentals
Of the 5 types of Portland cement used in the world, Bangladesh uses Ordinary Portland Cement (OPC) and Portland Composite Cement (PCC), with the former composed 95% of clinker and latter 65%-80% . As a result PCC has been gaining popularity in the country due to its cost effectiveness, low environmental impact, and versatility in various applications. The cement sector in Bangladesh is heavily influenced by seasonality due to Bangladesh’s subtropical monsoon climate. September/October to April/May are peak seasons with demand declining during May/June to August/September, with activity of varying depending on the duration of the rainy season. Over the past 5 years, the industry has seen a compound annual growth rate (CAGR) of 12.67%, significantly greater than the country’s GDP growth even considering future targets by the government set at 10%.
However, the market is highly dependent on imported goods required for production including oil, clinker, limestone, and gypsum, and as a result also carries a considerable risk in foreign exchange rates. Of the main imported goods required for production, clinker alone comprises of 60-70% of the total materials used. Bangladesh mainly sources clinkers from China, Thailand, Vietnam, and Malaysia. High cost of logistics has also been a major cost driver in the past and has only been on the rise as government policy has reduced the allowed load of trucks by half to reduce pressure on the roads.
According to a survey report by the Bangladesh Cement Manufacturers Association, Bangladesh currently has a production capacity of 54 Mn MT, producing only 32 Mn MT with overall operations utilization at around 80%. 2018 saw the market’s highest sales of 33 Mn MT. Currently, 82% of the local demand for cement is met locally, with imports making up for the gap.
Bangladesh Cement Manufacturers Association-BCMA:
The Bangladesh Cement Manufacturers Association (BCMA) is the association of cement companies of Bangladesh.
For the past few years, the BCMA has been exporting cement to various countries of the world, including India, European countries and African countries. The BCMA produces standard quality cement, and has experienced increasing foreign demand every year.
Cement companies as BCMA members:
The Bangladesh Cement Manufacturers Association members include :
- M.I. Cement Factory Ltd. (Crown Cement),
- Emirates Cement Bangladesh UltraTech Cement,
- S. Alam Cement Ltd (Minar Brand S. Alam Cement),
- Confidence Cement Ltd.,
- Holcim Bangladesh,
- Lafarge Surma Cement Ltd.,
- Meghna Cement Mills Ltd.,
- Mir Cement Ltd.
- Madina Cement Industries Ltd (Tiger Brand Cement)
Belal Hossen, executive director of the Bangladesh Cement Manufacturers Association (BCMA) told the Dhaka Tribune:
“The cement sector is growing day by day as demands keep soaring. At the same time, foreign currency earning is also increasing through limited scale exports.”
Cement Pricing in Bangladesh:
There exists high price war in the cement industry. To avail extra market share,
Pricing is a key in the crowded market with excess capacity. Several national level
producers practice fluctuating pricing policy between regions to achieve competitiveness
benefits.
Currently, the standard price of one bag (50 kg) cement produced by the
multinational & local companies range within BDT 370 to BDT410 per bag. The cement
price in Bangladesh has been witnessing down trend since last three years and dropped
by roughly 5-6% per bag compared to the prices in 2016.
Reduction in raw material price along with stiff competition in the market has forced the
Cement manufacturers to reduce the cement price. The raw-materials for cement
witnessed a downward price trend over the last four years. Among the key raw-materials,
Clinker witnessed 14.1% price fall in 2016 from that of the 2015.
Seasonality:
Cement sector in Bangladesh experiences high seasonality. Peak season is considered during the winter season (November to April) while demand for cement goes slow during the monsoon (June to October) period. The demand for cement sharply declines during the monsoons due to slowdown in construction activities. According to the industry personnel, 60% of the total yearly sales are generated in the first half of the year and rest 40% sales are generated in the second half of the year due to seasonality.
Peak Season | Dull/off season |
November to April/May | June to October (Depends on monsoon) |
Though the yearly capacity of cement sector was saturated with overcapacity, market demand gets matched or cross the effective capacity during the peak season. Furthermore, the cement industry, like most other capital intensive industries, is cyclical in nature with respect to supply. Manufacturers give incentive, commission and foreign trip campaign to the employed executives and dealers/distributors/traders over the year while taking promotional activities in off pick season.
60% of the total yearly sales is generated during the first half of the year, while the rest is generated in the second half
Major Cement Companies in Bangladesh and Installed Capacity
Top 10 producers meet approximately 81% of total demand
Approximately 81% of the total market share is held by top ten manufacturers. Among the top 10 cement market players in Bangladesh, 8 are local and 2 are multinational.3 Multinational cement companies are facing intense competition from local companies which are gaining more business through lower pricing, superior products offerings, extensive branding and better relationship marketing.
By the end of 2018, local manufacturers had grabbed 86% of the market, a reversal in scenario from 15 years earlier, when the multinational companies ruled the industry, according to data from the Bangladesh Cement Manufacturers Association4. After failing to penetrate the market, two of the global cement group, UAE based Emirates Cement and Mexico-based cement manufacturer Cemex divested their Bangladesh operations by 2016.
In recent years, cement producers have significantly increased production capacity anticipating huge demand in the industry given soaring income level, outstanding economic growth, and the number of mega-projects being undertaken.
|
No |
Major Cement Companies |
Promoter |
Brand |
Installed Capacity (Million MT/Year) |
|
1 |
Shah Cement |
Abul Khair Group |
Shah Cement |
6.05 |
|
2 |
Bashundhara Cement |
Bashundhara Group |
Bashundhara Cement |
5.05 |
|
3 |
Aman Cement |
Aman Group |
Amancem |
3.76 |
|
4 |
Unique Cement (Fresh) |
Meghna Group |
Fresh Cement |
3.60 |
|
5 |
Seven Rings Cement |
Shun Shing Group International Ltd. |
Seven Rings Cement |
3.50 |
|
6 |
LafargeHolcim Bangladesh Ltd. |
LafargeHolcim and Cementos Molins |
Supercrete (PLC); Holcim Strong Structure (PCC); Holcim Red (OPC); Holcim Grey; PLASTERCRETE |
Cement: 3.4 Clinker: 1.4 |
|
7 |
Crown Cement |
M. I. Cement Factory Ltd. |
Crown Cement |
3.30 |
|
8 |
Premier Cement |
Premier Cement Mills Limited |
Premier Cement |
3.00 |
|
9 |
HeidelbergCement Bangladesh Limited |
HC Netherlands Holding B.V (39.8%), HC Asia Holding GmbH, Germany (20.86%) |
Scan Cement & Ruby Cement |
2.38 |
|
10 |
Meghna Cement |
Bashundhara Group |
King Brand Cement |
0.90 |
|
11 |
Akij Cement |
Akij Group |
Akij Cement |
1.20 |
|
12 |
Confidence Cement |
Confidence Group |
Confidence Cement |
1.05 |
|
13 |
Royal Cement |
Kabir Steel Group & BSA Group |
Royal Cement |
1.00 |
|
14 |
Aramit Cement |
Aramit Group |
Camel Brand Cement |
0.61 |
|
15 |
Anwar Cement |
Anwar Group |
Anwar Cement |
0.60 |
- Source: Annual Reports of Listed Companies (2017-18), Company Websites & EBLSL Research
- PLC=Portland Limestone Cement;
- PCC= Portland Composite Cement;
- OPC=Ordinary Portland cement
Cost of Raw Material, Transportation, Fuel, and Power for Cement Industry in Bangladesh
Raw Material, Transportation, Fuel, and Power
Price of all major raw materials such as clinker, slag, fly ash, gypsum and limestone went up significantly in last two years. 90% of the clinker, the main raw material for cement, is imported from Vietnam. In late 2017, Chinese government started to discourage clinker production from integrated plants having wet kilns to reduce environmental damage.
Later, Chinese manufacturers started importing clinker from its nearest source – Vietnam. Following the sudden increased demand, Clinker price rose by almost $10 per ton. So, cement manufacturers had to increase cement price in the beginning of 2018. Now, clinker is being imported at around $47 – $50 per ton.
Importing Clinker, Gypsum, Fly Ash, and Iron Slag
Bangladesh needs to import almost all of the raw materials used in cement manufacturing. Bangladesh has a scarcity of mineral resources, such as limestone, and hence, is not capable of meeting demand for clinker, the prime material of cement.
Only two companies have clinker production facilities at their plants:
- Chhatak Cement Factory Ltd, a government owned company, and
- Lafarge Surma Cement Ltd.
Lafarge Surma Bangladesh produces 1.3 million tons to 1.4 million tons of clinker a year, accounting for 7-8 percent of the yearly market demand.
As a result, major cement manufacturers are importing required raw materials including clinker, gypsum, fly ash and iron slag from abroad and using grinding technology to produce cement.
Most of the manufacturers import clinker from Vietnam, China, Hong Kong, India, and Indonesia. Few manufacturers use local limestone collected from Sylhet. Majority portion of imported fly ash is sourced from India; slag is imported from China, India, Japan and Singapore while Gypsum is sourced from China, India, Indonesia and Japan.
Financial Highlights of Listed Companies
Financial Highlights of Listed Companies
Based on Annual Reports (2017-18, Consolidated)
Particulars (BDT Million) | LHBL* | MI Cement | Confidence Cement | Premier Cement |
Revenue | 16,631.53 | 12,559.31 | 3,916.78 | 10,049.87 |
Gross Profit | 4,099.95 | 1,643.42 | 328.64 | 1,516.88 |
Operating Income | 4,276.59 | 1,790.82 | 336.83 | 1,529.72 |
Profit Before Tax | 1,882.74 | 410.23 | 410.61 | 578.46 |
Net Income | 1,114.65 | 315.61 | 374.24 | 442.18 |
Total Assets | 26,888.23 | 19,713.91 | 8,200.82 | 13,468.00 |
Current Assets | 7,149.19 | 11,304.32 | 3,183.25 | 6,658.34 |
Fixed Assets | 19,739.04 | 8,409.59 | 5,017.57 | 6,809.65 |
Total Liability | 11,309.91 | 12,589.56 | 4,097.48 | 9,190.75 |
Current Liability | 6,977.70 | 9,829.56 | 3,733.96 | 8,557.80 |
Long Term Liability | 4,332.21 | 2,760.00 | 363.51 | 632.95 |
Equity | 15,578.32 | 7,124.36 | 4,103.34 | 4,277.24 |
Total Debt | 2,977.00 | 10,718.00 | 3,070.00 | 7,052.00 |
Retained Earnings | 3,666.29 | 2,047.15 | 1,995.83 | 2,282.94 |
…Next Three Cement Companies
Particulars (BDT Million) | Meghna Cement | HBL* | Aramit Cement |
Revenue | 5,533.35 | 11,151.29 | 1,723.28 |
Gross Profit | 568.93 | 1,931.51 | 272.60 |
Operating Income | 701.90 | 1,949.68 | 276.92 |
Profit Before Tax | 108.60 | 1,177.34 | (132.28) |
Net Income | 81.45 | 809.76 | (154.61) |
Total Assets | 6,881.42 | 8,641.42 | 4,100.33 |
Current Assets | 5,148.85 | 4,654.11 | 3,024.62 |
Fixed Assets | 1,732.57 | 3,987.31 | 1,075.72 |
Total Liability | 6,018.99 | 3,969.55 | 3,897.12 |
Current Liability | 4,566.49 | 3,250.49 | 3,144.66 |
Long Term Liability | 1,452.50 | 719.06 | 752.46 |
Equity | 862.43 | 4,671.87 | 203.22 |
Total Debt | 4,388.00 | 135.00 | 2,986.00 |
Retained Earnings | 439.83 | 3,477.57 | (246.29) |
- Source: Annual Reports of listed companies (2017-18)
- LHBL – LafargeHolcim Bangladesh Limited,
HBL – HeidelbergCement Bangladesh LimitedNext
Bangladesh Introduction
Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 162 million people. In terms of land mass, Bangladesh ranks 92nd, spanning 148,460 square kilometees (57,320 sq mi), making it one of the most densely-populated countries in the world.
Bangladesh shares land borders with :
- India to the west, north, and east,
- Myanmar in the southeast, and
- The Bay of Bengal to the south.
It is narrowly separated from Nepal and Bhutan by the Siliguri Corridor, and from China by Sikkim, in the north, respectively.
Dhaka, the capital and largest city, is the nation’s economic, political and cultural hub. Chittagong, the largest sea port, is the second-largest city.
Bangladesh is the only country in the world that was created on the basis of language and ethnicity.The Bengalis make up 98% of the total population of Bangladesh, making it one of the most ethnically homogeneous states in the world. The large Muslim population of Bangladesh makes it the third-largest Muslim-majority country.
The country is divided into eight administrative divisions and sixty-four districts. Although the country continues to face the challenges of the Rohingya refugee crisis,corruption, and the adverse effects of climate change. Bangladesh is one of the emerging and growth-leading economies of the world, and is also one of the Next Eleven countries, with one of the fastest real GDP growth rates. The Bangladeshi economy is the 39th-largest in the world by nominal GDP, and the 29th-largest by PPP.
Bangladesh Sea and River Ports:
Rank | Port | Type |
1 | Seaport | |
2 | River port | |
3 | Seaport | |
4 | River port | |
5 | River port | |
6 | River port | |
7 | Seaport | |
8 | River port | |
9 | River port |
Creating the country of Bangladesh:
Modern Bangladesh is thought to have been settled around 1000 BC by people known as the “Bang.” This ancient name is seen in modern words such as the country name, Bangladesh. A region of India, Bengal (where Calcutta is located), also takes its name from the Bang. In the thirteenth century AD , Bangladeshis began converting from Hinduism to Islam. Bangladeshi Muslims (followers of Islam) spoke the Bengali language and displayed a deep commitment to Bengali culture.
Britain was a colonial power in India until 1947. It granted independence to its empire that year and created two countries: India and Pakistan. India was predominantly Hindu and Pakistan was predominantly Muslim. The two areas of land designated as the new country of Pakistan were separated by about 1000 miles (1600 kilometers).
These areas were East Pakistan and West Pakistan. Most people in both areas were Muslim, but their language and customs were different from each other. The people of East Pakistan fought for independence from West Pakistan for years. In 1971, after a short, brutal war, they won it, creating the country of Bangladesh.
Cement Plants located in Bangladesh
- Integrated Plants: 2
- Clinker Plants: 0
- Grinding Plants: 40
No. | Group Name | Company Name | Facility Name | City |
1 | A Hossain Group | Dubai Bangladesh Cement Mills Limited | Mongla Dubai | Mongla |
2 | Abul Khair Group | Shah Cement Industries Limited | Munshigonj Shah | Dhaka |
3 | Akij Group | Akij Cement Company Limited (ACCL) | Narayanganj Akij | Narayangon |
4 | Aman Group | Aman Cement Mills Limited | Haria 2 grinding plant | Sonargaon |
5 | Aman Group | Aman Cement Mills Limited | Ullapara Unit 1 | |
6 | Anwar Group | Anwar Cement Limited | Meghnaghat Anwar | Dhaka |
7 | Aramit Group | Aramit Cement | Aramit | Chittagong |
8 | Bangladesh Chemical Industries Corporation (BCIC) | Chhatak Cement Company Limited | Chhatak BCIC | Sylhet |
9 | Bashundhara Group | Bashundhara Industrial Complex Limited (BICL) | Madangonj BICL | Madonganj |
10 | Bashundhara Group | Bashundhara Industrial Complex Limited (BICL) | Mongla BICL | Mongla |
11 | Bashundhara Group | Meghna Cement Mills Limited (MCML) | Mongla Meghna | Mongla |
12 | BSA Group of Companies | Royal Cement Limited (RCL) | Bara Kumira | Chittagong |
13 | Confidence Group | Confidence Cement Limited (CCL) | Shitakunda | Sitakunda |
14 | Deshbandhu Group | Deshbandhu Group | Deshbandhu plant | Dhaka |
15 | Doreen Group | Eastern Cement Industries Limited (ECIL) | Siddhirgonj | Siddhirgonj |
16 | Hadib Group Ltd | Diamond Cement Ltd | Diamond Cement | Chittagong |
17 | HeidelbergCement AG | HeidelbergCement Bangladesh Limited | Chittagong | Chittagong |
18 | HeidelbergCement AG | HeidelbergCement Bangladesh Limited | Kanchpur | Dhaka |
19 | HeidelbergCement Bangladesh Limited | Emirates Cement Bangladesh Limited | Munshigonj Emirates | Mukterpur |
20 | Holcim Cement (Bangladesh) Ltd | Saiham Cement Industries Ltd. | Mongla Holcim | Bagerhat |
21 | Imam Group | Prime Cement Ltd | Chhatak | Chhatak |
22 | Khansons Group | Olympic Cement Ltd. (OCL) | Barisal | Barisal |
23 | LafargeHolcim Ltd | Holcim Cement (Bangladesh) Ltd | Meghnaghat 2 | Narayangonj |
24 | LafargeHolcim Ltd | Holcim Cement (Bangladesh) Ltd | Menghnaghat 1 | Narayangonj |
25 | LafargeHolcim Ltd | LafargeHolcim Bangladesh Ltd | Chhatak | Chhatak |
26 | Madina Group | Madina Cement Industries Bangladesh | Meghnaghat Tiger | Meghnaghat |
27 | Meghna Group of Industries | Unique Cement Industries Limited | Meghnaghat Unique | Narayanganj |
28 | Metrocem Group | Metrocem Cement Limited | Munshigonj Metrocem | Munshigonj |
29 | MI Cement | MI Cement | Munshiganj – MI Cement | Dhaka |
30 | Mir Group | Mir Cement Limited | Murapara Mir | Murapara |
31 | N.G.S. Cement Industries Limited | N.G.S. Cement Industries Limited | Chittagong N.G.S. | Chittagong |
32 | Nitol Niloy Group | Nitol Cement Industries Ltd. | Jessore Grey | Jessore |
33 | Nitol Niloy Group | Nitol Cement Industries Ltd. | Jessore White | Jessore |
34 | Premier Cement Mills Limited | Premier Cement Mills Limited | Chattogram | Chattogram |
35 | Premier Cement Mills Limited | Premier Cement Mills Limited | Munshigonj | Munshigonj |
36 | S. Alam Group | S. Alam Cement Limited | Chittagong Alam | Chittagong |
37 | Sena Kalyan Sangstha (SKS) | Sena Kalyan Sangstha (SKS) | Mongla Cement Factory | Mongla |
38 | Shun Shing Group International Ltd | Seven Circle Bangladesh Ltd. (SCBL) | Kaligonj Grinding Plant | Kaligonj |
39 | Shun Shing Group International Ltd | Seven Circle Bangladesh Ltd. (SCBL) | Shun Shing Cement Mills Ltd | Khulna |
40 | Siam City Cement, PLC (SCCC) Group | Siam City Cement (Bangladesh) Limited | Narayanganj | Narayanganj |
41 | Taher Group | Alhaj Mostafa-Hakim Cement Industries Limited | Chota Kumira | Chittagong |
42 | Taiheiyo Cement Bangladesh | Bengal Tiger Cement Inds. Ltd. | Panchdona | Narayangonj |
Multinational cement companies in Bangladesh are:
- HeidelbergCement Bangladesh Ltd.
- Lafarge Surma Cement Ltd. / LafargeHolcim Bangladesh Limited.
- Holcim (Bangladesh) Ltd.
- CEMEX Cement Bangladesh Ltd. (CCBL)
- Emirates Cement Bangladesh Ltd.
- Seven Circle (BD) Ltd
President of the People's Republic of Bangladesh
Mr. Mohammad Abdul Hamid is the current President of Bangladesh. He was elected to his first term in April 2013, and re-elected to his current second term in 2018.
Prime Minister of the People's Republic of Bangladesh
Ms. Sheikh Hasina, is a Bangladeshi politician serving as the 10th Prime Minister of Bangladesh, having held the office since January 2009. Having previously served as Prime Minister for five years, she is the longest-serving Prime Minister in the history of Bangladesh.
Video Clips about Cement in Bangladesh (Ads)
The Largest Cement producer in Bangladesh
Shah Cement
10 Million Tonnes per Annum/Cement Capacities
Bangladesh depends on imports and it is one of the largest importers of clinkers globally. Of the 32 cement producers that are currently in operation, only two have clinker production facilities in their own plants. One is Chhatak Cement Factory Ltd, a government owned company, with limited production capacity and the other is LafargeHolcim Bangladesh Limited.
Based on study by EBL securities revealed that Shah Cement holds 14% of the market share, while Lafarge Holcim holds 11.8%, Bashundhara Group, 9.1%, Seven Rings Cement 8.1%, Heidelberg Cement 8%, Premier Cement 6.6%, M.I. Cement (Crown Cement) 6.6%, Fresh Cement 6.5%, Akij Cement 4.2%, and Confidence cement 2%, according to the study.
Shah Cement at a glance:
Shah Cement started on the March 2002. Shah Cement Industries Ltd. is the largest Cement producing plant in Bangladesh, with a capacity of 10 million metric tons per annum.
The plant is situated at Muktarpur, Munshigonj, in the land intersection of two rivers Shitolokkha & Dhaleshwari. It is the largest and one of the most technologically advanced cement plants in Bangladesh. Shah Cement partnered with FLSmidth to commission the world’s most advanced and largest Vertical Mill in Cement Manufacturing. It is the world’s largest single unit mill of its kind.
The world’s largest Vertical Roller Mill at Shah Cement is expected to significantly contribute in improving the quality of housing and play a critical role in the infrastructure development of the country. With its Guinness World Record recognized milestone, Shah Cement is proud to take Bangladesh to a newer height.
Shah Cement Plant is equipped with both inbound & outbound logistic comprising of own ocean going vessels, huge number of cover fleets, barges & bulk carriers to supply in the market place just in time.
Its own bagging plant is one of the largest in this region capable of producing 3 Lac packs per day powered by Hi-tech Star Linger machinery from Austria.
To ensure uninterrupted power supply round the clock, Shah Cement has own power plant of 17-megawatt capacity.
Shah Cement’s commitment to sustainable development, its high ethical standards in business dealings and on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen.
To provide customer with the best quality concrete, Shah Cement has its own mixing plant, which is equipped with modern PLC-based computer controlled program.
Shah Cement’s efforts in introducing Ready Mixed Concrete coupled with the promotion of bulk cement handling facilities have been responsible for redefining the pace and quality of construction activity in metropolitan cities and in mega infrastructure projects.
The World’s Largest Vertical Roller Mill
has been added in Shah Cement Manufacturing. Guinness World Record has recognized the unique achievement of Shah Cement and has recorded it as the World’s single Largest Cement Vertical Roller Mill facility.
Shah Cement awarded “the best cement brand”
The Leading Cement Brand of the country, Shah Cement was awarded as the ‘Best Cement Brand 2017’ by Bangladesh Brand Forum for the 3rd time which is given based on the joint countrywide survey conducted by Bangladesh Brand Forum and market research agency Kantar Millward Brown.
Shah Cement awarded “Superbrand” in Bangladesh
A concern of Abul Khair Group, the organization received the award for being consistent with their product quality and providing excellent customer service. It was among the 29 brands from diverse industries to have been awarded as the ‘Superbrands’ of Bangladesh for the year 2018-2020.
The future of the Cement business in Bangladesh
Industry outlook
The future potential of the country’s cement industry is strong. According to the industry
specialists, the outlook for cement in 2017-2021 remains promising with an expected CAGR of 15% ,mainly driven by the residential sector (Annual reports of listed companies).
Growing housing up-gradation among individual homemakers is driving the major contribution in cement consumption.
Industrial construction taking place in economic zones is also accelearting the growth. At the same time, major infrastructural projects are also in the pipeline to support economic growth agenda. Due to rapid pace of urbanization, industrialization, large-scale infrastructural and Governmental development projects as well as construction of various commercial and residential buildings, demand for cement has markedly increased and the growth is expected to be continued in the future. The trend of demand for cement is expected to continue till FY 2035.
Capital market performance
Currently there are seven listed cement manufacturing companies in Bangladesh capital
market which are:
- Aramit Cement Ltd. (ARAMITCEM),
- Confidence Cement Ltd.(CONFIDCEM),
- Heidelberg Cement Bangladesh Ltd. (HEIDELBCEM),
- Lafarge Surma Cement Ltd. (LAFSURCEML),
- Meghna Cement Mills Ltd. (MEGHNACEM),
- M.I. Cement Factory Ltd. (MICEMENT) and
- Premier Cement Mills Ltd. (PREMIERCEM).
Out of them two are multinational and others are local manufacturers.
Among the listed cement manufacturing companies, only LafargeHolcim is the fully integrated cement manufacturing company in Bangladesh and the rest of all are basically grinders.
Heidelberg cement has the highest production capacity among the listed companies in the cement sector. Following table represent the present installed capacity of listed cement manufacturing companies and their capacity utilization scenario in the last financial year.
Sponsors hold significant of the shares of PREMIERCEM (80.83%) followed by MICEMENT (67.1%) and LAFSURCEML (64.7%). None of the listed cement manufacturing company has government ownership. As on date, institutional holding is highest in the HEIDELBCEM (26.7%) followed by CONFIDCEM (23.5%). Both the listed multinational company i.e. HEIDELBCEM and LAFSURCEML has 1.5% and 1.4% foreign holding respectively.
Among the local companies, MICEMENT and PREMIERCEM has 0.4% and 0.1% foreign shareholding. Public holding is highest in CONFIDCEM (50.9%) and lowest in PREMIERCEM
(9.3%).
Competitive Landscape
Currently in Bangladesh there are 32 cement manufacturing companies of which 7 are currently listed and 4 are multinationals. 30 Mn MT of cement per annum is being produced with local companies holding 80% of the market share due to their competitive advantage in price and quality.
Despite the many market players, the industry is dominated by 10 major companies of which only 2 are multinationals, one (Lafarge Holcim) of which is second in market due to a recent acquisition. Surprisingly, although 2 global cement companies, Emirates Cement and Cemex are divesting their operations, a Saudi business firm is soon set to enter the market in the near future. MI Cement has also recently announced an expansion set to increase production capacity 76% by 2021 from a current 11,000 tonnes per day to 19,400.
The Way Forward
Prospects for overall growth in the sector is bright for the country in terms of increasing demand due to:
- urbanization,
- real estate development, and
- government projects,
However, uncertainty in price fluctuations due to imports of raw materials, fuel, logistics, and foreign exchange may get the better of the industry. Competitors are also expanding their capacity despite having unutilized facilities in anticipation of increasing demands. It is almost certain without a doubt that growth in this sector will continue, however, a question of profitability in terms of rising costs must be addressed for the industry to further flourish.
In the same way that a large majority of cement producers have their own private road transportation, we may see an increase in barges for water transportation to reduce costs. New technologies are also being adopted in order to improve operational efficiencies to not only reduce wastage in the industry, but also reduce the amount of clinker required for production without sacrificing quality. This is especially important in the future as new players enter the market, and competitors seek greater profits in a current situation of price wars between competitors.
A Video by LargeHolcim Bangladesh Ltd
FOB Prices for Clinker, Grey Cement, and White Cement/ per MT
Cement Clinker
$19
Portland Cement Clinker-Type II
Status: Fresh, and High-Quality
Standard: ASTM C-150
Delivery: FOB-BIK Port
Payment Terms: TT
Grey Cement
$36
Grey Cement-Type II
Status: Fresh, and High-Quality
Standard: ASTM C 150- Type II
Delivery: FOB-BIK Port
Payment Terms: TT
White Cement
$61
Portland White Cement-52,5
Status: Fresh, and High-Quality
Standard: EN 197-1, 52,5
Delivery: FOB-BND Port
Payment Terms: TT
Gypsum
Rock
$8
GYPSUM rock
Status: High-Quality
Standard: Purity 90-95%
Delivery: FOB-BND Port
Payment Terms: TT
Order Procedures
CIF offer
Letter of Intent-LOI in the first level
For CIF offer, our sales team should determine all details such as the product cost, transit to the port of loading, loading to the vessel (or stuffing), customs duties, etc.
we require to obtain accurate information on the inquiry as Letter of Intent-LOI in the first level. Please mail us LOI to our Sales Team.
We hope you find detailed information about the answer to the question of How many Cement Plants are producing in Bangladesh 2020? in this article.
Datis Export Group supplies all types of Portland Cement (Grey, and White) and Cement Clinker. Our sales team will manage to export the Cement to any destination port for Bulk and Bagged containerized cargoes.
You can send us your cement inquiry by email to our sales office. Our branches will manage to supply and export the cement through the best-reputed cement factories in the region.