MI Cement Factory Ltd has stated that it has become Bangladesh's cement export leader. The company achieved national export trophy three times for its outstanding performance in cement export. Demand for its Crown Cement brand is gradually increasing at home and abroad. In addition, Crown Cement is contributing to the country's development through foreign currency earning.
Bangladesh imported cement before 1995, but gradually the country's cement production base increased its output to reduce the need for these. Exports commenced in 2003 as MI Cement Factory shipped its Crown Cement across its borders. It is the only brand that has been awarded with National Export Trophy (gold) twice consecutively in 2008-09 and 2009-10, and National Export Trophy (bronze) in 2013-14, according to the company.
During FY2017-18, MI Cement Factory earned foreign exchange to the tune of about BDT555.54m (US$6.6m).
Earlier this year, the cement producer received ISO 9001: 2015 (QMS) certification (Certificate No: 04-B-09-QMS 0074, valid untill 28 November 2021) to manufacture and export of Portland, Portland composite and ground blastfurnace slag cement.
Company financial result for 2017-18
The total installed capacity and actual output of the company for the year ended 30 June 2018 stood at 3.324Mta and 2.198Mt, respectively, compared to 1.74Mta and 1.565Mt in previous year. According to the company's 2017-18 annual report, sales revenue has increased by 33.1 per cent due to a rise in sales volume by 33.5 per cent when compared with 2016-17. Cost of goods sold (COGS) has increased by 39.1 per cent in the year 2017-18 over previous year due to increase in cost of raw materials consumed, packing cost, fuel/power consumption cost and factory overheads, which were beyond the control of the management.
In 2017-18 administrative expenses and selling and distribution expenses increased by 47.1 per cent and 20.5 per cent, respectively. As a result, in 2017-18, net profit (after tax) decreased by 52.3 per cent from BDT661.08m to BDT315.61m as well as net profit margin (after tax) also decreased by 64 per cent than that of previous year.
MI Cement Factory Ltd is a public limited company and one of the leading manufacturers of cement at West Mukterpur, Munshiganj, in central Bangladesh. Initially the plant was installed with a 600tpd capacity. In 2002 capacity was raised to 800tpd on the second line while four years later, a third 1400tpd line was built. In 2011 the 3000tpd fourth line was construction. The latest expansion of the works in 2017 saw an extra 5200tpd installed in a fifth line, taking total plant capacity to 11,000tpd, or 3.3Mta.
