Enterprise of the Year

Wiring Bangladesh over the years

Md. Mozibar Rahman Chairman of BRB Cable Industries Ltd.

Electricity is a critical backbone of the modern economy and Bangladesh has taken important steps in connecting more and more outreach areas since independence. This has been made possible by a well-functioning support industry including a mushrooming electrical cables sector. The leader of that sector, BRB Cable Industries Ltd. was the winner of this year's coveted 'Enterprise of the Year' award. Within a short period of time, this company has been able to achieve a remarkably strong footing - a research conducted by the World Market Wares & Cables ranked BRB as number 33 among the 3,000 companies surveyed in 200 countries. This ranking can be considered as a true national achievement.

BRB was established by Md. Mozibar Rahman in 1979 in the BSCIC Industrial area of Kushtia with production commencing in the following year. Rahman was convinced of the attractiveness of the sector as he knew the country's electricity requirement would increase in future from the 10% outreach that existed at that time. At the initial stage, various obstacles affected production volume among which financial problems constituted the most severe impediment. This was ultimately resolved by Agrani Bank and Rahman restarted the business in 1983. In 1996, BRB expanded its operations and imported the latest machinery from Japan, Germany, India, Belgium and Italy to establish a second unit in order to meet the increasing market demand. Ever since, BRB has grown in leaps and bounds to become the largest cable manufacturer in the country.

BRB's product portfolio has all kinds of electrical wires & cables, aluminum conductors, telephone cables & super enameled copper wire. It has different types of product lines such as 33KV XLPE insulated high voltage cables, 132KV ASCR conductor, FRLS cables, instrumentation cables, jelly field telephone cables, etc. Emphasis on product quality has remained key over the years as the company received ISO 9002 certification and continued to invest in R&D to maintain its standards. Major raw materials used in production include copper wire rod, aluminum wire rod, high carbon galvanized steel wire, aluminum alloy wire rod, PVC compound and LDPE/XLPE compound. Value addition is around 50% in this sector as all raw materials are imported; yet the potential for growth and export remains high.

BRB's business has boomed over the last ten years with growing domestic demand. Turnover itself has more than doubled in the last five years and now stands at Tk 2.9 bln. Production capacity ranges between 12,500 and 14,000 metric tons per year in a factory size of almost 600 thousand square feet. The company proudly houses the most sophisticated and elaborate testing facility available in the country. At the marketing front, BRB supplies both to the public and private sector. To cater to its retail clients, the company operates through a web of 20 sales centers nationally. BRB has been strong on exports throughout the last decade with goods worth Tk. 72 million shipped in 2004.

In light of the current socio-political environment, labor relations have been outstanding in BRB companies. The group employs a total of 2,000 employees. But in its more than 25 years of history, there has been no significant dissatisfaction that has led to any labor unrest. The management of the company has a professional structure with a group of very competent and experienced management officials at the wheel.

In recognition of its achievements, BRB Cable Industries has received important national and international awards like the National Export Award (Gold) - 1997-98, Sher E Bangla Fazlul Haque Gold Medal, 10th Golden America Award etc. Rahman acknowledges the support extended by his employees, customers, suppliers and financiers for his phenomenal success today.

But Rahman is also outspoken about the many challenges he has to face on a daily basis. A major impediment in his routine operations has turned out to be his decision to locate his factory away from Dhaka in Kushtia. Even though the government has long encouraged entrepreneurs to move out of Dhaka, practical realities are far from perfect. Transaction costs are high in all respects, starting from higher transportation charges, higher salaries required to attract employees, and lack of gas supply to the fact that all banks and major offices are located in Dhaka. “Hence, growth is slower than what would be possible in Dhaka, profits are lower”, he admits. But industrialization is important in distant areas to avoid the infrastructural strains on the capital city. Rahman also faces significant problems in exporting electrical cables. He believes the economy would benefit tremendously if the government extended its focus beyond the traditional export basket and allowed special export facilities to all products. Discussion with hands-on businesspeople will bring new perspectives to light, for the relevant government authorities, beyond the ones that are usually discussed.

Over the years, Rahman has continued to expand his industrial effort by establishing various other ventures like MRS industries, Kiam Metal Industries, and BRB Polymer Ltd. The utensils produced by Kiam Metals are very popular with the local consumers and are successfully competing with imported products. Similarly, the import substitute products of MRS Industries have also earned generous consumer satisfaction. With numerous other diversification plans in the offing starting from plywood to knitwear, BRB is surely on it way to conquering many other accolades in future as well.