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    Abul Khair Steels

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    Mahmudur Rahman
    Abul Khair Steels is the largest steel producer in Bangladesh, with a production capacity of 1.2 million metric tons annually. It was formed in 2009 with a mission to provide quality steel products and support nation building. Their vision is to become a leading global steel brand by 2030. They were the first in Bangladesh to use TMT technology to improve the mechanical and chemical properties of steel. Through strategic placement of distribution depots across Bangladesh and investments in production technology, Abul Khair Steels has become a market leader in a short time due to their high quality products and services.

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    Abul Khair Steels

    Uploaded by

    Mahmudur Rahman
    7K views39 pages
    Abul Khair Steels is the largest steel producer in Bangladesh, with a production capacity of 1.2 million metric tons annually. It was formed in 2009 with a mission to provide quality steel products and support nation building. Their vision is to become a leading global steel brand by 2030. They were the first in Bangladesh to use TMT technology to improve the mechanical and chemical properties of steel. Through strategic placement of distribution depots across Bangladesh and investments in production technology, Abul Khair Steels has become a market leader in a short time due to their high quality products and services.

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    Abul Khair Steels is the largest steel producer in Bangladesh, with a production capacity of 1.2 million metric tons annually. It was formed in 2009 with a mission to provide quality steel products and support nation building. Their vision is to become a leading global steel brand by 2030. They were the first in Bangladesh to use TMT technology to improve the mechanical and chemical properties of steel. Through strategic placement of distribution depots across Bangladesh and investments in production technology, Abul Khair Steels has become a market leader in a short time due to their high quality products and services.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    7K views39 pages

    Abul Khair Steels

    Uploaded by

    Mahmudur Rahman
    Abul Khair Steels is the largest steel producer in Bangladesh, with a production capacity of 1.2 million metric tons annually. It was formed in 2009 with a mission to provide quality steel products and support nation building. Their vision is to become a leading global steel brand by 2030. They were the first in Bangladesh to use TMT technology to improve the mechanical and chemical properties of steel. Through strategic placement of distribution depots across Bangladesh and investments in production technology, Abul Khair Steels has become a market leader in a short time due to their high quality products and services.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 39

    Abul Khair Steels

    Formed in 2009 Pioneer of steel products Single largest most advanced steel mill in

    Bangladesh Known for quality, excellent personalized customized support service Used the TMT technology for the 1st time in Bangladesh Production capacity of 1.2 million metric ton

    AKS mission statement

    The Mission of the Company is to make life of the people secured and safe by providing quality products and to be a partner in the nation building activities

    Vision
    By

    2030 Abul Khair Steel would like to become a brand name throughout the World in steel industry

    Psychographic Variables

    Loyalty Status

    Benefits

    Behavioral

    User Rates

    User Status

    Target market

    High price

    AKS Baizid Steel KSRM

    Low technology RSRM GPH Low price

    High technology

    Marketing Mix

    product

    price

    Marketing mix
    promotion place

    What is TMT bar?


    TMT = thermo mechanical treatment use the technology of Oxygen Lancing before the

    procedure of TMT bar. Procedure for TMT bar: tempering, quenching ,slitting , chilling Due to this technology , both mechanical and chemical quality of the steel is improved. Which enables the product to bear extreme weight.

    Steel billets, Square bars, Scrap steels


    Scraps steels are

    Raw material

    collected from local market


    Rest of the raw

    materials are imported from China. Japan, South Korea, Iran and Thailand

    Production process

    Production Procedures
    Oxygen Lancing: The raw materials are refined to get a

    controlled mixtures of carbon, silicon, manganese, sulfur etc. Tempering: billets are heated at 1200 degree Celsius to make it ready for quenching. Quenching: after tempering, the outer surface of the billets are cooled. Slitting: the billets are cut down with heavily pressurized water. Chilling: final process of TMT bar production where the steel bars are given the actual shape of TMT bar

    Production procedure
    Tempering Quenching

    Slitting

    Chilling

    Quality
    The latest technology for graded steel bars. It is made from 100% purified steel billets. Maintains national and international bar standards: BDS ISO 6935: BANGLADESH BS4444: Great Britain ASTM: USA DIN 488: Germany NFA 350 16:France JIS 3112:Japan AUS 4671: Australia NSZ 4671: New Zealand GOST 10884: Russia Tested and approved by BUET

    Continued
    Skilled stuff.
    Full automation. Have a full, highly skilled team of 12 persons from BAO steel", China , which is one of the finest steel mill in the world. Gets training and technological support from Cumming steel mill

    Features of TMT bar

    Features of TMT bar

    Service level
    Whenever there is a complaint, the sales and

    marketing department goes there with a team of 50 people. The team call back the products to their research center and verify the problem. Every month they do a survey on their quality acceptance from the customers.

    Pricing
    Average selling price is 73000 Tk per ton and

    Average cost is 70000 Tk per ton. The main competitor BSRMs average selling price is 77000 Tk No pricing list for retailer and middleman.

    Pricing Policy
    BSRM selling price is 77000tk per ton where AKS

    selling price is 73000 tk. AKS selling price is comparatively low because they enjoy economies of scale Due to high sales volume which leads to more use raw materials, self established power plants and as well as has a agreement with Govt. for supply of gas.

    Allowance policy: 500 to 1000 tk per ton to

    wholesalers. Credit term: no specific credit terms. In special cases, gives 15 to 30 days of credit term to loyal customers. Payment period: Depending on letter of credit (LC), pays within 1 to 6 months to suppliers.

    Place
    Channel: 8 to 10 depots Coverage: Whole Bangladesh Assortments: All the depots are in convenient

    position Locations: Depots are in the main regions Inventory: keep total 30% inventory Transportation: Has own transportation Logistics: Well positioned

    Channel
    Depots are located in Dhaka, Chittagong, Khulna, Faridpur, Sylhet, Jessore, Barisal, Rajshahi, Rangpur, and Coxs Bazar.

    Coverage
    Depots are situated in such a way that it is easy to

    cover whole of Bangladesh. AKS factory is in Chowdhury Ghata, Barowalia, CTG which is covering the whole Bangladesg according to their demand.

    Inventory
    Keeps 30% on hand. In

    case of emergency AKS use this 30%. These inventories are kept in all the warehouse. Inventory is also kept for special purposes such as order form loyal customers, additional need for real states.

    Location
    As we can see, depots are in the main regions of

    Bangladesh. Depots are in places where it is more populated.


    Depots are supporting AKS to give desired service to

    the customers.

    Transportation

    AKS has their own

    transportation for delivery of goods to depot. They have many trucks to make moving of goods time effective. Though after delivering goods to the depot AKS plays no further role in transportation

    Logistics
    People

    can visit the depots easily. They are easy to access and people does not have to go through any hassle. Transfer of goods from the factory to selected depots is suitable.

    Sales promotion
    Pull strategy: Spends a lot on advertising. Every year

    they spend around 30 cores for advertising. Seminars with BUET engineers Taking the sponsorship of various reunion program of school and colleges AKS do sales promotion in rehab fair by using leading real estate companies

    Advertising

    Web sites
    Electronic media

    Printing media
    Billboards

    Outdoor

    Sites
    Face book

    Electronic media
    TV

    Twitter
    Alibaba.com

    Radio
    Websites

    Print Media
    Newspaper Selective magazines

    Public Relation
    Open air concerts- Last year on 31st December they

    held the biggest concert in Bangladesh. Environmental work.

    Conclusion
    So far AKS has done excellent work in steel industry. They gained the trust of consumers in short period of time through high quality and service. They have already 25% loyal customers. As far as we can see the 4 ps of AKS are quiet good enough to support its mission and vision and which is helping to achieve its target profit. It is easy to say that Abul Khair Steels has become a key player in steel industry.

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