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8/19/2019 Comparative Case Studies of Bangladeshi Business Houses, Ispahani and Nasir Group
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1. Introduction:
Bangladesh is a developing country that is classified as a Next Eleven emerging market
and one of the Frontier Five. According to a recent opinion poll, Bangladesh has the second most
pro-capitalist population in the developing world. uccessful corporate groups owned !y
Bangladeshi people can !e considered as one of the reasons !ehind the growth of Bangladesh"s
economy. ome !ig names in the !usiness sector of Bangladesh is not #ust making their names
known in Bangladesh, they are making their presence known throughout the world. For
comparative case studies in the group report, we have !een assigned two Bangladeshi Business
$ouses% Nasir group of &ndustries and &spahani group.
Nasir 'roup is one of the largest Bangladeshi industrial conglomerates. (he industries
under this conglomerate include Float 'lass, )elamine, *rinting and *ackages, (o!acco,
Footwear, 'lassware and (u!e, Energy aving +amp etc.
(he &spahani 'roup is a pioneer in many fields including (ea, consumer foods, textiles,
yarn, #ute, shipping, real estate and remains one of the most successful and respected !usiness
houses in Bangladesh.
2. Origins and Biological Evolution of Companies:
2.1 Nasir Group of Industries:
(he company is named after its owner Nasir ddin Biswas, he is -years-old. $e never
kept his dreams in his eyes only. (he !iggest temptation of his life was to convert the dreams into
a masterpiece of reality. (he name of such a masterpiece is Nasir 'roup of &ndustries.
From a small trader in the /012s, now he runs a group of ten units, from float glass to energy-
saving !ul!s, all leaders in the sectors. 3ith nearly (k 4,222 crore in annual turnover, the
conglomerate has set excellent repayment standards over the years and !ecome a preferred client
for !anks.
5& go for the products that are not availa!le in Bangladesh as those will generate
employment and save foreign currencies from import payments and products that are not made in
Bangladesh, !ut have a huge demand in the country,6 $e says. $e also claimed that such
products also help in saving foreign currencies.
/ 7 * a g e
https://en.wikipedia.org/wiki/Bangladeshhttps://en.wikipedia.org/wiki/Conglomerate_(company)https://en.wikipedia.org/wiki/Teahttps://en.wikipedia.org/w/index.php?title=Consumer_foods&action=edit&redlink=1https://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Shippinghttps://en.wikipedia.org/wiki/Shippinghttps://en.wikipedia.org/wiki/Real_estatehttps://en.wikipedia.org/wiki/Conglomerate_(company)https://en.wikipedia.org/wiki/Teahttps://en.wikipedia.org/w/index.php?title=Consumer_foods&action=edit&redlink=1https://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Shippinghttps://en.wikipedia.org/wiki/Real_estatehttps://en.wikipedia.org/wiki/Bangladesh
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2.2 Ispahani Group:
(hroughout their history they have endeavored to support and advance worthwhile
causes. (hey have esta!lished schools and colleges in Bangladesh as well as the renowned
&slamia Eye $ospital. (he latter is a centre of excellence for providing modern, efficient and
cost-effective eye care. 3ith a specialist line up of up to 2 doctors, 89 surgeons, trained nurses,
paramedics and other staff, &slamia Eye $ospital has !een looking after the eye care needs of
thousands of Bangladeshis since its inception in /02.
Furthermore, the 'roup sponsors various cricket, foot!all, golf and tennis tournaments as
well as the National :ricket +eague. (he corporate offices are located in :hittagong, ;haka and
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Bangladesh and its !est selling !rands such as )irapore Best +eaf and )irapore ;ou!le
:ham!er (ea Bags are household names.
Cn the other hand, in Nasir 'roup of industries, this started its #ourney as a !usiness pro#ect
of small trader, has several esta!lished industries among which to!acco products" industries
and glass manufacturing are prominent. Nasir group is the !iggest and first float glass
manufacturer in Bangladesh. &ts main exporting markets are North America, outh America,
3estern Europe, Eastern Europe, Eastern Asia, outheast Asia, )id East, Africa, and
Cceania.
Both of the companies play a very important role in Bangladeshi conglomerate industry. (hey
together employ thousands of people directly and indirectly throughout the country. (hrough
maintaining high standards overall, they present high standard goods for our country and
outside of the country as well.
3. !iversit" in Business:
3.1 Nasir Group of Industries:
Nasir group is one of the prominent industries in our country. &t consists of /2 industries
in different sectors with different products. A !rief overview is given for each of its !usiness
units !elow%Nasir Biri Industries #imited $NBI#%: Nasir Biri &ndustries +td. is another part of Nasir 'roup
of &ndustries@ it was esta!lished in /011 in kushtia. NB&+ manufactures handmade :igarettes
DBrand name% Nasir Biri have huge domestic market. At present NB&+ have />> decimal land
and more than /2,222 workers.
Nasir &o'acco Industries #imited $N&I#%: Nasir (o!acco &ndustries +td, went into
commercial production in /001.3ith a land area of 4/9 ;ecimal D9 !igha for the factory and
a work force of 822 in the factory and /122 in the market this company ranks fourth in the
country. (he company export cigarettes, cut to!acco and cut rolled expanded stem D:E, cork
tipping paper and filter rods. (he !rands of its cigarettes are Nasir 'old, Asia and (op (en.
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Nasir #eaf &o'acco Industries #imited $N#&%: (his unit of Nasir 'roup of &ndustries is a
grower, processor, packer and exporter of different varieties of Bangladeshi (o!acco. tarting in
/00> it has !een catering to the needs of many local cigarette manufacturers and since 422/ has
!een regularly exporting to!acco to A, European and Asian markets. 3ith 822 workers and
41 decimal of land its factory is fully e=uipped with state of the art automated American
machinery and testing la!oratory.
Nasir Glass $(loat% Industries #imited $NGI#%: Nasir 'lass &ndustries +imited, the !iggest
and first float glass manufacturer in Bangladesh. &t produces different sied and colored float
glass according to the re=uirements of the !uyer. (he manufacturing plant is located within the
short distance of the capital city ;haka, at ripur in 'aipur made at a cost of (k 822 crore.
Built in 4229, Nasir 'lass &ndustry, the country"s first float glass plant, has a capacity to produce 2,222 tones of float glass, strong enough for furniture, !esides window and door
panes. (he glass factory produces clear and tinted heat a!sor!ing glass, clear, !rone, !lue and
dark gray and light gray glass. &t sells glass at much lower price compared to that of the
imported glasses with similar =uality. A!out 92/ G /222 *eople are employed directly or
indirectly in this industry. &ts total annual sales volume is aroundH/ )illion G H4.9
)illion. &ts main exporting markets are North America, outh America, 3estern Europe,
Eastern Europe, Eastern Asia, outheast Asia, )id East, Africa, and Cceania.
Bangladesh )elamine Industries #imited $B)I#%: Bangladesh )elamine is the pioneer of
manufacturing melamine ta!leware in Bangladesh. &ts continual effort undenia!ly ac=uired
Ipeople"s trust" in the process. Not only Bangladesh )elamine succeeded in the field of local
market !ut also at the same time, it !egun its wings over the sky of glo!al market for its very
efficient use of modern technology, skilled management, strict =uality control. Now Bangladesh
)elamine exports its products in different countries across the world with a very competitive
price. Around /922 people work in this company and it started its commercial operation !ack in
/0>9.
Nasir *rinting *ac+aging industries #imited $N**I#%: (hey are involved in corrugated paper
!oard making, multicolor printing and carton making. )ain products of this industry are
corrugated paper !oards with and without prints. (hey also make carton !oxes for packaging of
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glassware, garments, to!acco, froen shrimps, cosmetics, food materials, medicines, ceramics,
lighting wares etc. *lant capacity of this industry is a!out 82 million pieces of !oxes J annum
Dassorted.
Nasir Glass,are - &u'e Industries #imited $NG&I#%: (his industry is involved in doing
!usiness regarding glass manufacturing. (heir ma#or products are 'lass ta!leware Dtum!lers,
cups K saucers, !owls, mugs, dishes etc. and glass tu!ing Dfor fluorescent tu!e lamps K :F+
lamps% all white J clear. As per their designed capacity, they can produce around 'lassware /22
tons J day@ tu!ing 42 tons J day.
Bangladesh (oot,ear Industries #imited $B(I#%: tarting in /001, Bangladesh Footwear
&ndustries +imited has turned into one of the !iggest footwear manufacturers in Bangladesh.
3ith a highly professional, skilled and well-trained production unit they are specialied in
manufacturing gents, ladies K kids footwear such as shoes, keds and sandals using the !est
=uality ELA K *L: materials. (o ensure =uality this industry uses the !est availa!le
technologies and machine such as single color, two colors, three colors automatic rotary type
in#ection molding machines. Around 4222 people are employed in this industry.
Nasir Energ" saving #amp Industries #imited $NE#I#% Nasir Energy aving +amp
&ndustries +td DNE+&+ is a part of Nasir 'roup of &ndustries. (hey manufacture the !est
=uality energy saving lamp using the !est technology K technicians. &t is for the first time in
Bangladesh that the :F+ lighting products are !eing made, starting from the !asic components
like glass tu!es, stems, filaments. *hosphors, *lastic holders, electronic components, metallic
caps etc. using automatic machines of latest editions. (he designed capacity of this industry is
producing 2,222 pieces lampsJday.
Bis,as *rinting - *ac+aging Industries #imited: Biswas *rinting K *ackaging &ndustries +td
DB**&+ is a leading *rinting industry in Bangladesh. (hey are specialied in export =uality
corrugated paper !oard handling multi-color printing and carton making for packaging of
medicines, foods, cosmetics, froen shrimps, to!acco, garments, glassware, ceramics and
lighting wares. (hey use the fully automated production technologies and !est =uality
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medium papers from
8/19/2019 Comparative Case Studies of Bangladeshi Business Houses, Ispahani and Nasir Group
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Nasir Energ" saving #amp Industries Bangladesh )elamine Industries
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Nasir Glass,are - &u'e Industries
Nasir Glass $(loat% Industries
Nasir #eaf &o'acco Industries Bangladesh (oot,ear Industries
3.2 Ispahani Group
Compan" *rofile
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&"pe *rivate
Industr" :onglomerate
(ounded />42
(ounder )ira )ohammed &spahani
/ead0uarters :hittagong, Bangladesh
e" people )ira Ali Behro &spahani,:hairman*roducts (ea, consumer
foods, textiles,yarn, #ute, shipping, real estate
u'sidiaries ).). &spahani +imited
&spahani Foods +imited
*ahartali (extile and $osiery )ills
Broad Band (elecom ervices +imited
outh East (rading +imited
&slamia Eye $ospital
Crient Airways
Emplo"ee approximately 42,222 people
&urnover )ore than 822 crore
Corporate #ogo
Competitive dvantage of Ispahani:
A group of experienced and professional management team is engaged in running day-to-
day !usiness operations of the :ompany. (he group gained reputation in tea, food and textile
!usiness for its industrial skill, long experience and good distri!ution channel. (he company has
an unrivalled distri!ution network of over 02 sales centres under 42 onal offices in :hittagong,
;haka, ;haka North, Bogra, Barisal, :omilla,
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Messor, a#shahi and Faridpur. &t also owns four of the finest tea gardens in Bangladesh%
'haipore, )irapore, arreen and Neptune, all of which are e=uipped with state-of-the-art tea
manufacturing machinery. ignificant competition in the industry is evident due to pressure from
new entries !ut the incremental demand !oth in local K foreign market signals growth of the
industry. Cther strengths of the company include continuous investment in infrastructure to
ensure =uality production, investment in human resources training, price competitiveness which
comes from economies of scale in purchasing and marketing, a!ility to respond =uickly to
market changes, and esta!lished goodwill in the market.
uccess tor"
(he &spahani group has !een the forerunner in numerous fields and has achieved
noteworthy success in its many endeavors. &spahani (ea is a household name and is the largest
tea trading company in the country. &t dominates the domestic tea market !y capturing a!out 92
percent of the national !randed tea market and >2 percent of the !randed tea-!ag segment.
*articularly, the )irapore !rand is a widely popular name distri!ution partners often identify
the entire company as the O)irapore (eaO company. *ahartali (extile and $osiery )ills
D*($), esta!lished in /09 with />,222 spindles, is one of the pioneers in local textile
manufacturing. (he shipping division has !een representing many world-renowned shipping
lines and non-vessel operating common carriers in Bangladesh for the last 92 years. ).).
&spahani +td. was again a pioneer in private sector power generation in /09/ at *ahartali.
(urnover of the core group of companies amounted to more than (k 822 crore in 42/@ its export
figures are also impressive. (ea and cotton yarns exported in 42/ were worth (k />4.1 crore
!ringing the cumulative total amount exported in the last five years to a!out (k 88.> crore.
Corporate ocial esponsi'ilit":
Ever heedful of its social responsi!ilities, the &spahani family has spent huge amounts,
over the years, to support and advance worthwhile causes. Family mem!ers have esta!lished
numerous schools and colleges in !oth ;haka and :hittagong@ &spahani )irapore (ea has !een
sponsoring the National :ricket +eague for the last three years. Furthermore, the &spahani group
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often sponsors various cricket, foot!all, golf and tennis tournaments in :hittagong. (he &slamia
Eye $ospital was founded in ;haka in /02 as a charita!le dispensary and has now !een
upgraded to a 422-!ed state-of-the-art eye hospital. upported !y a specialist lineup of 19
surgeons and doctors, this one-of-a-kind institution has played an outstanding role in meeting the
eye care needs of this country
*roduct *ort (olio
(ea 'arden (ea (rade
:otton (extiles Mute
hipping eal Estate
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http://www.ispahanibd.com/?page_id=1622http://www.ispahanibd.com/?page_id=1634http://www.ispahanibd.com/?page_id=1639http://www.ispahanibd.com/?page_id=1639http://www.ispahanibd.com/?page_id=1645http://www.ispahanibd.com/?page_id=1652http://www.ispahanibd.com/?page_id=1656http://www.ispahanibd.com/?page_id=1622http://www.ispahanibd.com/?page_id=1634http://www.ispahanibd.com/?page_id=1639http://www.ispahanibd.com/?page_id=1645http://www.ispahanibd.com/?page_id=1652http://www.ispahanibd.com/?page_id=1656
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Foods *oultry
&:( Energy
*ackaging $ospitality K +eisure
/4 7 * a g e
http://www.ispahanibd.com/?page_id=1659http://www.ispahanibd.com/?page_id=1665http://www.ispahanibd.com/?page_id=1668http://www.ispahanibd.com/?page_id=1670http://www.ispahanibd.com/?page_id=1677http://www.ispahanibd.com/?page_id=1659http://www.ispahanibd.com/?page_id=1665http://www.ispahanibd.com/?page_id=1668http://www.ispahanibd.com/?page_id=1670http://www.ispahanibd.com/?page_id=1677
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Agro (rading
International )ar+et:
/8 7 * a g e
http://www.ispahanibd.com/?page_id=1674http://www.ispahanibd.com/?page_id=1672http://www.ispahanibd.com/?page_id=1674http://www.ispahanibd.com/?page_id=1672
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h" Conglomerate Business4
)ira alman &spahani, managing director of the group, replied, O;ifferent !usinesses
emerged !ecause of different reasons we entered the travel and &* sectors !y spinning of
internal departments which were doing a good #o!. (he foods segment was an attractive idea
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considering the distri!ution synergies with the existing tea !usinessO. (he name &spahani
represents something of value to the average person today it stands for dependa!ility and =uality
product, a perception that has !een possi!le only after years of consistent performance.
Challenges facing '" Ispahani
:hallenges facing this generation of &spahanis are different from those handled !y
predecessors. (he overall market is now more competitive, =uality and productivity are more
critical factors today than ever !efore. )anagement, however, considers the future to !e
promising for !oth tea and textiles which is the primary revenue-generating sectors of the group.
(ea has increasingly !ecome less vulnera!le to volatility in international markets since >2
percent of local production is now consumed domestically. Forecasts for textiles are also
optimistic since competitiveness and short lead times in the future will have to mean local
sourcing. &n that scenario, anyone offering =uality products at competitive prices while managing
cost efficiencies, productivity, and up-to-date learning should !e a!le to survive the post )FA
Dmulti fi!re arrangement challenges.
3.3 Comparative ssessment:
(o start with a keen comparative assessment, it needs to !e mentioned that !oth of the
companies secure a pioneering position in :onglomerate !usiness in terms of product, operations
and strategies approaching in different industrial sector. Nasir 'roup of &ndustries which was
started !ack in /012 as a small trader and now owns /2 different !usiness units in different sector
including Float 'lass, )elamine, *rinting and *ackages, (o!acco, Footwear, 'lassware and
(u!e, Energy aving +amp etc. 3hereas &spahani 'roup of &ndustries started their !usiness long
years !ack then Nasir group in />42 and now owns > to 0 su!sidiaries including (ea, :onsumer
food, (extile, Parn, Mute, hipping, eal estate etc.
:oncentrating on product differentiation Nasir group is the !iggest and first float glass
manufacturer in Bangladesh and they have a huge exporting market in 0 different countries
which helps to earn a lot of foreign currency thus improving our economic condition. (hey
always try to go for those products which are not availa!le in Bangladesh mainly with an aim to
generate employment. Cn the other hand &spahani group are well recognied for its vast (ea
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manufacturing and (ea trading !usiness activities as a result they own 92 market share of
national !rand tea K >2 market share of !randed tea !ag. nlike Nasir group, &spahani 'roup
invests a huge amount in : activities. (hey have esta!lished a chool, :ollege and a hospital
named &slamia Eye $ospital in /02. Beyond this they also act as a sponsor of various cricket,
foot!all, tennis, golf etc.
&n comparison of distri!ution strategy &spahani group have strong distri!ution strategy
then Nasir group. (hey have a wide distri!ution network of 02 sales centers and 42 onal
offices. Further more &spahani group is involved in continuous investment in &nfrastructure,
$uman esource training to ensure greater product =uality. (hey also have competitive pricing
strategy which ena!les them in achieving economics of scale.
5. (uture *ro6ections:
5.1 Nasir Group of Industries:
At Nasir group, they think of new pro#ects, work out its cost-!enefits, and visualie its
potentials and long term impact on the national economy taking full cogniance of its effects on
our environment. &nnovativeness is one of their key issues. (hey have excelled in areas of
plastics, melamine, footwear, float glass, :F+ lamps, etc. and now they are forging ahead for
entirely a new pro#ect i.e. very high grade glass ta!leware and glass tu!ing for fluorescent and
energy savings lamps, never made !efore in Bangladesh. New pro#ects of Nasir 'roup in hands
are Float 'lass line, maie, starch, corn oil and feeds etc. (hey strongly !elieve that they can
make more varieties of products of different designs compared to what they have currently
availa!le in the market. (hey are determined to understand the customers of Bangladesh and
continuously release new products to move with the time to suit the changing tastes of the people
using !est availa!le raw materials procured from around the world and also using the !estavaila!le machinery leaving no scope of dou!t.
(he on-trial industry will not only serve our dining ta!les !ut will also add to the decor of
houses !y providing the energy saving compact and non-compact fluorescent lamps. )ost of
their industries are import su!stitute industry with high export to &ndia, (hailand, Nepal, Bhutan,
ri-+anka, some European countries, A etc. (hey provide not only direct employment of
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a!out /2222 people !ut indirect employment of many folds over. (he !ackward and forward
linkage industries arising out of their production lines add su!stantial economic !enefits to the
nation and further more employment.
5.2 Ispahani Group
Future plans of the company include expansion of tea, textiles, &* and poultry divisions
of the group. (he group?s financing strategies have remained outside of the pu!lic stock market
!ut the owners may consider it as an option for new !usinesses. ince their initial e=uity was
invested in /08 which has grown manifolds over the years a pu!lic offering at this point of time
will result in huge capital gains tax however it is a plan for smaller and new investments. ince
the theme of the Bangladesh Business Awards is OBringing 'lo!al :orporate tandards to
BangladeshO, they asked what glo!al standards &spahani has succeeded in implementing locally.
(he director?s response was, OExposure to international !enchmarks. 3e send managers from the
tea and textiles divisions a!road regularly to attend training sessions and trade fairs so that they
can keep a!reast of what?s happening in their fieldsO. (oday, after centuries of !usiness in the
su!continent, the $ouse of &spahani is still dedicated to its mission of excellence in providing
high =uality goods and services, making a positive impact on the overall community, and
attaining leadership positions in all its operating sectors
7. Conclusion: Nasir 'roup is focused on creating a strong and sound future for accelerated growth
!enefiting all. Nasir 'roup shall continue to act in the !est interests of its customers, employees,
shareholders and of course, Bangladesh. (he company is trying to supply export =uality products
at a cheap rate than its competitors and imported glasses. o it is competing !oth on the !asis of
=uality and price. (he company is also enhancing its promotional activities to raise its sales
volume and maximie profit. (he company uses a short vertical distri!ution channel to distri!ute
its products. At a glance to compete in a competitive market, where !oth domestic and
international competition is present, Nasir group of industries can !e considered as a successful
one.
&spahani group as one of the largest conglomerate !usiness in Bangladesh !esides
pioneering in (ea manufacturing, they always endeavored to support worthwhile cause !y
esta!lishing school, college and hospital. (hey always initiated to create a social worth full life
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!y providing =uality education to students thus ena!ling them to !uild their own identity in
society. (hey hold a good percentage of market shares in Bangladeshi (ea )anufacturing
&ndustry thus securing more than 822 corer annual turnover. As a competitive advantage they
have achieved price competitiveness compared to any other (ea manufacturing company in
Bangladesh. (hey have proactive strategies which ena!les them to respond according to market
changes.
eferences:
• http%JJen.wikipedia.orgJwikiJNasirQ'roup
• http%JJwww.nasirgroup.com.!dJmd.htm
• http%JJwww.thedailystar.netJnew;esignJnews-details.phpRnidS/928
•
http%JJwww.nasirgroup.com.!dJa!out-usJ• http%JJwww.nasirgroup.com.!dJproduct.htm
• http%JJwww.glassonwe!.comJdirectoryJdetails.phpRidS1819
• http%JJwww.tradekey.comJcompanyJNasir-'lass-&ndustries-+td-84>0>>.html
• http%JJwww.assignmentpoint.comJ!usinessJreport-on-nasir-glass-industries-limited.html
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