Abul Khair Steels
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Transcript of Abul Khair Steels
Abul Khair Steels
Formed in 2009 Pioneer of steel productsSingle largest most advanced steel mill in
Bangladesh Known for quality, excellent personalized
customized support serviceUsed the TMT technology for the 1st time in
BangladeshProduction 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
Target market
High price
Low price
High technology
Low technology
AKS
KSRM
RSRM
GPH
BaizidSteel
Marketing Mix
Marketing mix
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.
Raw material
Steel billets, Square bars, Scrap steels
•Scraps steels are 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: RussiaTested and approved by BUET
ContinuedSkilled 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 BSRM’s 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 depotsCoverage: Whole BangladeshAssortments: All the depots are in convenient
positionLocations: Depots are in the main regions Inventory: keep total 30% inventoryTransportation: Has own transportationLogistics: Well positioned
Channel
Depots are located inDhaka, Chittagong, Khulna, Faridpur, Sylhet,
Jessore, Barisal, Rajshahi, Rangpur, and Cox’s 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.
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
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 engineersTaking the sponsorship of various reunion
program of school and collegesAKS do sales promotion in rehab fair by using
leading real estate companies
Advertising
Web sitesElectronic mediaPrinting mediaBillboardsOutdoor
SitesSites Electronic mediaElectronic media
Face bookTwitterAlibaba.com
TV RadioWebsites
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 p’s 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.