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PART ONE

OVERVIEW

CHAPTER – 1 Recognition of Need

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Chapter1
Recognition of Need
1.1 Introduction

ICI Bangladesh Manufacturers Limited was a subsidiary of world renowned multinational ICI
Plc. and was a listed public limited company under Dhaka Stock Exchange. In 1992 ICI Plc.
divested its shareholding through a management buyout and the company name was changed
from ICI Bangladesh Manufacturers Limited to Advanced Chemical Industries (ACI) Limited.
ACI Formulations Limited, a subsidiary of ACI, became a public listed company through direct
listing and ACI Limited stands for the name “Advanced Chemical Industries limited” which
refers that they started their business with Pharmaceutical goods. After that they spread different
brunches of product lines within their operation.

ACI salt company is also a part of ACI limited.ACI Salt Limited was incorporated as a private
limited company on June 13, 2004 under the Companies Act, 1994. The objective of the
Company is to provide 100% edible salt for human consumption by using modern vacuum
evaporation process technology. For last many years the company has been serving the country
with premium grade edible salt with impeccable reputation with 100% purity

1.2 Present System

1.2.1 Organization
Organization implies structure and order. It is the arrangement of components that helps to
achieve objectives. ACI company limited structure is given below. ACI salt company managed
by their more than 300 skilled and trained manpower and a large speedy over 80 vehicles.

1.2.2 Category
ACI salt limited hassome working category -

 Innovative technology.
 Marketing strategy.
 Human Resource (HR).
 Commercial Department.
 MIS Department.
 Training.
 Administration.

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 ACI’s salt-refining plant produces pure iodized salt through the Vacuum Evaporation
System. The company uses technology from China Heavy Machineries Corporation
(CHMC) and state-of-the-art machinery from Switzerland, combined with their self-made
engineering designs, in establishing and operating the plant. The end product is high quality,
free-flowing salt with even, crystallized grains and a high NaCl content.

Fig 1.1 Organization Structure of ACI limited

Chairman

Managing
director

Executive Executive Executive Executive


director director Supports
director director
consumer Agribusiness logistics pharmaceuti
brands
cals

Consumer Brand Mobile Foods International Finance


brands commodi
core ty

Communicati
Business General on
director Manager,
sales

Human
Regional sales
Head of resource
manager
marketing

Management
Zonal manager information
PM system

Territory sales
manager Distributi
BM on

Sales
Executives Representaati
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Fig 1.2 Organization Structure of ACI Salt limited

Managing director

Executive director

Business manager, cc & PH

Sales Product Manager PD


manager manager & RA

Area manager Product officer Product development


officer

Marketing officer

Sales officer

 ACI salt company uses some marketing strategy for their product price, placement, and
promotion. ACI pure salt uses sales force & trade promotion activities to create customer
demand for this product. The producer promotes the product to wholesaler, wholesaler
promotes the product to retailer, and retailer promotes the product to customer to buy. All
this things are decided by managing director of this company.
 ACI HR works with a vision for creating a work-environment to foster creativity, innovation
and productivity for achieving business excellence through dynamic and dedicated people.

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 Commercial Department of ACI is one of the most vital functional departments of the
Company which deals with the supply chain activities of ACI.

.
 MIS department of ACI ensures the overall IT related supports for the company. This
department manages a smooth operation of software’s, hardware trouble shooting and
business databases related to sales and inventory.
 Administration processes the account section and the management section. They deal with
the cash flow management system of the company.

1.2.3 Working procedure


Next to water, salt is the most essential item in human diet. As a product point of view of ACI
Salt Ltd., this essential item must provide the consumer a constant feeling of healthy, nutritious
& premium quality. Following that point of view, ACI Pure Salt is processed through fully
automatic machine of vacuum evaporated technology, clearly distinctive quality of 100% pure,
Free Flow, Crystal White & Perfectly Iodized, packed in attractive food-grade flexible
packages.ACI Pure Salt is processed through the true Cutting Edge Technology of Switzerland.
Its high quality food grade, multilayer laminated packaging ensures the iodine contents to remain
active for longer period and at the same time protects the salt from moisture or any impurities.
Besides, product packaging is an important issue. ACI provides a good packaging which also
helps in positioning in customer’s mind. ACI Pure Salt packaging includes logo, positioning
statement, expire date.ACI Pure Salt is offered in two ways, packet & jar. ACI pure salt offered
in packet where 1kg packet & also ½ kg packet are availableIn the market.ACI Pure Salt jar
is available in market. Where one jar quantity is 750 gm. and another with 135 gm.

At the very first ACI pure salt is manufactured in the factory then from the factory half of
the amount of salt is sent directly to the distribution points and then to the retailers by
using some rented vehicles and rest half of the amount of salt is sent to depots to store.
When in need then from the depots to distribution point.

1.2.4Mission statement
ACI's Mission is to enrich the quality of life of the people through responsible application of
knowledge, technology and skills. ACI is committed to the pursuit of excellence through world-
class products, innovative processes and empowered employees, to provide the highest level of
satisfaction to our customers.

1.2.5 Vision Statement


 Provide products and services of high and consistent quality, ensuring value for money to our
customers.
 Endeavour to attain a position of leadership in each category of our businesses.
 Develop our employees by encouraging empowerment and rewarding innovation.

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 Ensure superior return on investment through judicious use of resources and efficient
operations, utilizing our core competencies.

1.2.6 Goal

 Provide the consumer a constant feeling of healthy, nutritious with premium quality.
 To ensures 100% purity.
 Available the product in everywhere, where customers want

1.3 Problem Identification


There are some initial problems found in this organization -

 Packaging is not very suitable for market.


 Trade offer are not checked by employees.
 They don’t give sufficient offer for customers.
 Monitoring system is not very well.
 Sales representatives are not sufficient.
 They don’t give enough facilities for their buyer.

1.4 Initial solution of the problems


There are some recommendations for ACI Pure salt-

 Packaging should be improved. Like packets size, design, color etc.We offer you several
types and forms of salt packaging bags such as: straight bags, flat base bags, quad-welding
bags, pillow-shaped bags.
 Trade offer should be checked and doing something different from its competitor may help
the brand to remain strong.The trade price of the ACI pure salt is 525BDT. However, Mollah
super trade price is 500BDT including trade offers. Confidence trade price is 475 BDT. It is
therefore, the price gap between the ACI pure salt and others salt brands was high. Retailers
purchase lower trade priced products.
 More discount offer for its customers should be provided.Consumer Offer(Salt shaker/Salt
Pot for 2/3 kg packet, Sachet pack)They should give 15% -20% discount for a certain time
for customers while other brand don’t give . Generally the first and last week of every month
is considered as the buying cycle for salt.
 An effective monitoring system should be implemented. We have found ACI market share
was very low. While we were asking to retailers, they complained for irregular
monitoring.SR (Sales Representative) and distributorsdidn’t come frequently for providing
ACI salt. It is therefore, others salt brand got chance to grab that market.
 More focus needed of its communication with the retailer, sales representative. They should
heir more sales representative for selling product and communicate with the customers.

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 Buyers should give much priority .Like they should give enough information of the product.
Sample must send to the buyers. And mainly the best price should offer to the buyers that
they can afford. And product should supply in given time is also developed.

1.5 Conclusion

Working capital management is one of the most important finance functions for any
manufacturing company. ACI Ltd as one of the largest company of the country has to manage
working capital for maintaining current activities and increase profitability. It maintains different
types of inventory level for different inventory levels and manage large amount of cash,
receivables and payables. As a result ACI Ltd faces many problems in determining optimum
guideline of working capital management. So ACI Ltd can reduce inventory periods, receivables
period, and daily sales outstanding and accelerate sales volume to ensure efficient WCM policy.

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