Soft drinks market in Bangladesh recovering
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Domestic soft drinks market shows a sign of recovery as manufacturers said they posted higher sales in the first half of 2008 due mainly to a hot summer and late arrival of monsoon rain. Industry people also attributed the recovery to relatively stable price level of soft drinks restoration of confidence among distribution channels as many retailers and distributors got panicked during the government’s drive against illegal roadside outlets. “We have had excellent sales. The market is recovering due to rise in demand,” said Arif Hossain, market development manager of leading Transcom Beverage, the franchisee of Pepsico International.
The official of Transcom, whose 7up brand controls clear drink segment of the market, said the company recorded about 20 percent growth in the January-June period of 2008. Overall sales of the company increased by about 15 percent during the 2007-08 fiscal year, he said. The country’s soft drinks market, according to insiders, started to pick up since 2003 and hit a record high of over Tk 1000 crore in 2005-06 fiscal year. But the market dropped the following year partly because of political uncertainty, slow down in investment and crackdown on illegal roadside outlets. The soft drinks supply chain is now recovering, said an official of Abdul Monem Ltd, one of the two bottlers of Coca-Cola, the leading brand among cola category drinks. The soft drinks market, comprising categories such as cola, clear, cloudy lemon and orange, reached about Tk 900 crore in the fiscal year 2007-08 from Tk 800 crore a year ago, said an official of Akij Food and Beverage Ltd (AFBL). AFBL’s flagship brand Mojo secured a major portion of the cola drink segment after it launched the brand in April 2006, the official said, adding that his company’s soft drink sales recorded about 22 percent growth in 2007-08 fiscal year. “Stable price and late arrival of monsoon has helped the market recover,” said the official of AFBL. The official said the rising price of the raw materials such as petrochemical affects the overall business. The market has not recovered much, said Md Akhtaruzzaman, marketing manager of RC brand marketer Partex Beverage, whose RC lemon leads the market in cloudy lemon segment. He claimed that his company secured about 15 percent growth in sales in January-June period of 2008. Source: sohel@thedailystar.net, http://www.thedailystar.net/story.php?nid=45181 |
<!–  One of several CNG filling stations between Kanchpur Bridge and Jatrabari of the capital which BNP big shots built on the Kutubkhali canal, drastically reducing Dhaka’s drainage capability. PHOTO: STAR –> |
Eskayef becomes first local firm to export medicine to Indonesia
Eskayef Bangladesh Ltd, one of the leading pharmaceutical companies in the country, has sent its first consignment of medicines to Indonesia, according to a press release. This is the first consignment of medicines to Indonesia by any pharmaceutical company from Bangladesh. Indonesia with a population of 237 million is a very potential export market for the Bangladeshi pharmaceutical products.
In May 2007 a business delegation from Indonesia came to Bangladesh and visited Eskayef plant. The delegates were convinced of the standard of Eskayef Bangladesh, and signed an agreement. After completing relevant registration formalities, Eskayef Bangladesh started exporting to Indonesia. AM Faruque said, “Indonesia is a regulated market and the country has a very strong pharmaceutical base. Due to our high quality standard, we have got the approval and started exporting to Indonesia.”
“We are already exporting our products to many countries across four continents,” he added.
Bangladesh Revenue exceeds target for first time – NBR earns Tk1000cr more
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NBR Chairman Abdul Mazid briefs the press yesterday
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The actual revenue target for the fiscal 2007-08 was Tk43, 850crore. It stood at Tk45, 970crore in the revised target. The board earnings stood at Tk47, 200crore, which was Tk37, 219crore in the fiscal year 2006-07.
The growth in revenue earnings compared to the 2006-07 fiscal also saw a record 27 percent rise. The board’s year on year revenue growth was between 9 and 14 percent in the last four fiscal years. “This is for the first time the revenue earnings not just exceeded its target but also increased than the revised one,” NBR Chairman Muhammad Abdul Mazid told a press briefing yesterday. Usually, revised target cuts the actual revenue target. But the revised target for the fiscal 2007-08 was set more than the actual target, he added.
Previously unrecovered taxes also contributed to make a big earning figure.. The board recovered Tk1200crore due tax from the Bangladesh Petroleum Corporation (BPC). It also got extra Tk804crore as tax from undisclosed money holders, Mazid said. According to him, greater transparency and accountability in tax administration, cooperation of the taskforce and an improvement in tax paying culture are the main reasons to have such significant earnings.
Income tax also witnessed a significant growth of 33 percent in the 2006-07 fiscal, which was 22 percent in the corresponding fiscal. The revenue growth in case of VAT (value added tax) doubled to 22 percent in the ‘07 fiscal. From import, tax-earning growth was 27 percent in ‘08 fiscal, which was only 2 percent in the fiscal year 2006-07.
During the press briefing, NBR also disclosed the country’s largest taxpayers’ lists. When asked about plans to disclose the tax dodgers’ names, its chairman said it should be published. According to the NBR chairman, tobacco companies are on the top of the highest taxpayer lists followed by the mobile phone companies.
According to the NBR list, Grameenphone is on top of the bank dominance income tax paying list. The top income tax paying organisations with the amounts paid are Grameenphone- Tk 435 crore, Standard Chartered Bank- Tk 220 crore, Chevron Bangladesh Blocks 13 and 14 Ltd- Tk 180 crore, Islami Bank Bangladesh Ltd- Tk161 crore, Titas Gas (TND) Company Ltd- Tk136 crore, HSBC- Tk118 crore, Southeast Bank Ltd- Tk88 crore, Pubali Bank Ltd- Tk 78 crore, Citibank NA Ltd- Tk76 crore and Prime Bank Ltd- Tk 67 crore.
The ten top VAT payers with the amounts paid are British-American Tobacco- Tk 2,828 crore, Grameenphone- Tk 1,438 crore, Dhaka Tobacco- Tk 1,180 crore, Titas Gas Field- Tk 764 crore, Sheba Telecom- Tk 601 crore, Habiganj Gas Field- Tk 465 crore, AKTEL- Tk 277 crore, Kailastila Gas Field- Tk 196 crore, Rural Electrification Board- Tk 105 crore and Rashidpur Gas Field- Tk 101 crore.
