Bangladesh Building Systems Ltd. (BBS) is a pre-engineered steel building manufacturer incorporated in 2003. It sources 50% of raw materials from abroad and 50% locally. BBS manufactures pre-engineered steel buildings at its factory in Gazipur through welding, cutting, and galvanizing processes. It distributes products through owned and rented vehicles. BBS faces competition from other domestic pre-engineered steel building manufacturers. The company aims to continue innovating its production line and exceeding customer expectations with modern technology and skilled workforce.
6. COMPANY OVERVIEW
• The company was incorporated in 19 July, 2003 as a ‘Private' company limited by shares and
registered with the Registrar of Joint Stock Companies & Firms of Bangladesh under the
Companies Act, 1994. It has started its commercial production in the year 2005. On 30 October,
2010 the company registered itself as a Public Limited Company under the Companies Act, 1994.
The registered office of the company is located at House No. 26, Road No. 03, Block-I, Banani,
Dhaka-1213 and its factory is situated in it’s own premises at Jaina Bazar, Dhaka Mymensingh
Highway, Telehate, Sreepur, Gazipur.
10. Supply chain of BBS
Raw Material
Manufacturing
Warehouse
Distribution
11. Sources and Availability of Raw Materials and
Principals Suppliers:
• Bangladesh Building Systems Ltd. procures 50% of raw materials from
foreign suppliers of China, Japan,Hong-Kong & India and Rest of the
50% Raw Material is procured locally. BBSL Principal Supplier’s list is
given below:
15. Distribution Channel:
• BBSL has one Covered Van and one Delivery Van for smooth delivery
of building materials products to customers at project site. Capacity
of which are 5.00 tons and 1.50 tons respectively. Moreover, regular
basis distributions of products have been made through rented
vehicles under the control of BBSL.
17. Nature of Business:
• BBSL always gear up to excel stakeholders’ expectation with its modern technology and
sophisticated professional work force. The principal activities of the company are to manufacture
of various Pre- Engineered Steel Buildings Structure according to the designs and provide full
pledge architectural and consultancy services and marketing of the Pre-Engineered Steel Building
under “BBS” brand. Simultaneously to expedite this race BBSL Product Research and
Development Department (PRD) works to innovate or introduce new concept and machinery in
the production line for the diversified demand of their reverence clients.
18. Principal Products and Services:
• BBSL builds pre-engineered steel buildings like factories, warehouses, convention centers,workshop, air craft
hangers, commercial show rooms, distribution centers, restaurants, CNG stations,multi storied buildings and
so on. It also provides 3 (three) years after sales services for any type of damages on its build structure. BBSL
provides high valued services in terms of designing, fabricatin and installation of Steel Buildings to its esteem
clients.
• The company has good market image for providing a wide range of building materials products and services.
The basic products of the company are produced both by imported and local materials. The segments of
products are as follows:
1. M.S. plate;
2. Pre painted Zn/Al sheeting coils;
3. Different diameters nut and bolts;
19. Cont.
4. Glass wool;
5. Aluminum foil;
6. Different diameters screws;
7. Rotary and power ventilators;
8. Shutter doors motors;
9. Sag rods;
10. Silicon;
11. Anchor bolts;
12. Both way tape;
13. Stove bolts;
14. Checker plates;
15. M.S pipes etc.
20. Relative Contribution of Products Contributing more than 10%
of the Total Revenue:
• The company produces a single product - pre-engineered steel
buildings, which accounts for more than10% of total revenue.
22. Competitive Market Condition in the Business:
• The following are the major Pre-Engineered Steel Building Manufacturer and competitor of BBSL in
Bangladesh:
1. Build Trade Engineering Ltd.;
2. PEB Steel Alliance Ltd.;
3. Zamil Steel;
4. McDonalds Steel Building Ltd.;
5. Kirby Building Systems Ltd.
6. Steel Mark;
7. Zakir Steel Zone Ltd.;
8. Modern Structural Ltd.;
9. Sarker Steel Ltd.
10. Others
23. Sources of and requirement for Power and Water or
any others utilities:
• Power: Bangladesh Building Systems Ltd. meets up its power
requirement from Rural Electrification Board (REB) with 11KVA and
33KVA lines and two of its own Generators (500KVA & 270KVA).
• Water: Water requirement is met by its own 3 nos. deep tube well.
24. RISK FACTORS & MANAGEMENT’S PERCEPTION ABOUT THE RISKS
• Interest Rate Risk:
• Interest rate risk is the risk that company faces due to unfavorable movement in the interest rates.
• Changes in the government’s monetary policy along with increased demand for loans/investments tend to
• increase the interest rates. Such rises in interest rates mostly affect companies having floating rate loans
• or companies investing in debt securities.
• Management Perception:
• In order to manage this risk and overcome it, the company exercise good management in its cash flows,
• coupled with continued strength in sales and marketing. BBSL is very careful in forecasting the prices of
• international steels and manage its costs in an effective manner, so as to ensure that the debt repayments
• are met on schedule, even if the interest rates were to rise. BBSL will try to enhance its equity capital
• rather than borrowed fund.
25. Industry Risks:-
Profitability may be affected:
• The company is operating in a moderate competitive industry with low profit & highly sensitive to
the
• market. Moreover the company faces competition from a small number of private sector mills
those are
• found to be steady in the market. Inability of offering competitive products will hinder the
company’s
• growth potential.
Management Perception:
• The company has successfully accessed the market till date and is working on offering new and
better
• quality products at competitive terms. Moreover, the company’s track record of previous years for
• operating profitability and highly market potential environment establishes its capability.
26. Cont.
Potential or Existing Government Regulations:
• The company operates under Companies Act 1994, Customs Act 1969, and Labor Law 2006, Income Tax
• Ordinance 1984, Income Tax Rules 1984, Value Added Tax (VAT) Act 1991, Value Added Tax (VAT)
• Rules 1991 and other related regulations. Any abrupt changes of the policies made by the regulatory
• authorities may adversely affect the business of the company.
Management Perception:
• Since, the company operates in steel sector; the Government regulations are mostly investment-friendly.
• However, unless any policy change that may negatively and materially affect the industry as a whole, the
• business of the company is expected not to be affected. As it is an emerging sector, it is highly expected
• that the Government will not frustrate the growth of the industry with adverse policy measures.
27. Application For Shares :Instructions
• 1. As per provision of the Depository Act, 1999 and regulations made there under shares will only be
• issued in dematerialized condition. Please mention your BO (Beneficiary Owner) account number in
• the Application Form. If you do not mention your valid BO (Beneficiary Owner) account, your
• application will be treated as invalid.
• 2. All information must be written or typed in block letters in English and must not be abbreviated.
• 3. An application must not be for less than 500 Ordinary Shares and must be for a multiple of 500
• ordinary shares. Any application not meeting this criterion will not be considered for allotment
• purpose.
• 4. An application must be accompanied by a foreign demand draft drawn on a bank payable at Dhaka or cheque drawn out of foreign
currency deposit account maintained in Bangladesh for the full value of shares favoring “Bangladesh Building Systems Ltd.” and crossed
“Account Payee only”.
• 5. An application shall be sent by the applicant directly to the Company by .................... so as to reach
• the Company by ................ Applications sent after .......... or received by the Company after ..............
• will not be considered for allotment purpose.
29. • BBS Cables Ltd., a sister concern of Bangladesh Building Systems Ltd. (BBSL) which is a leading Pre-
Engineered Steel Building Manufacturer in Bangladesh, has been incorporated in 2009. BBS Cables Ltd. is
looking forward to managing expertise and obtaining technology to provide better engineering solutions
through supplying quality electrical Cables, Wires, Conductors and better Customer Service. Now at the eve
of the 21st century globalization, electric power has become an integral part for infrastructural
development. With the rapid urbanization from corner to corner worldwide, the necessity of transmitting
power assumes significant for sustainable industrial growth. So, our objective is to manufacture electrical
Cables, Wires and Conductors of the highest quality and provide unparallel Customer Service to contribute
to our national economic growth. We strongly believe that the relentless effort to quality and continuous
improvement is the only key to long term success.
30. Vision
A winning industrial leader creating superior values for business and community beyond the boundary.
Mission
We achieve our vision through honesty & integrity, business ethics,global reach, technological expertise,
quality, building long term relationships with all our associates, customers, partners and employees.
31. Values
Customer Delight: A promise to fulfill customer expectations.
Pursuit of Excellence: A promise to continuous improvement of our
teams, services and products as well to become the best
.
Integrity and Transparency: A promise to be ethical, sincere, honest
and transparent.
Leadership by Example: A promise to create standards in our
business and transactions through mutual trust.
34. Conclusion
• BBS always gears up to excel stakeholders' expectation with its modern technology and
sophisticated professional workforce. At present BBS capacity is to produce 15000 MT steel
building products. which could cover 40.00,000 Sft floor area per year. Simultaneously to expedite
this race BBS Product Research and Development Department (PRD) works to innovate or
introduce new concept and machinery in the production line for the diversified demand of our
esteem clients. Customer satisfaction, trouble free construction, accurate fit of components are
the dominant priority of BBS, regardless of the complexity of the project. In addition, BBS have a
technically well expertise management team, where 25 graduate engineers and other
professionals have been working with full enthusiasm to meet the customer expectations. BBS
team sprit really sets it in the rock top position of the general acceptance in the PEB market.