Assignment On Meghana Group of Industries

History

MEGHNA GROUP OF INDUSTRIES Started in 1976 is one of the largest and fastest growing industrial conglomerates in Bangladesh Entrepreneur by Mr. Mostafa Kamal. Meghna Group of Industries produces most essential food and beverage for human and animal consumption but also construction material, packaging materials and electricity in its plants located at Meghna Ghat, Sonargaon, in the district of Narayangonj. The group has about 10000 permanent & casual employees. Its annual  turnover is  approximately TK. 4000 crore (around US$ 600.00 Million) and thus contributes much to the industrialization and  development  of the socio-economic condition of the Bangladesh in terms  of reducing unemployment, saving valuable  foreign currency  and reducing import dependencies and earning foreign currencies through exports of its products .

During the early seventies, the supply situation of essential commodities in Bangladesh was in turmoil. Business initiatives were very limited despite huge demand in the local market due to inadequate Government policy. People were suffering from scarcity of most essential commodities. Such an uncertain situation prompted Mr. Mostafa Kamal to be in the business. He established trading companies and organized countrywide distribution chain. Gradually he got himself involved in more risky ventures of import trade in the early eighties. His companies participated in the bulk trade of essential commodities of everyday need, like wheat, sugar, refined edible oils, milk, peas, lentils etc. 

When the supply and demand situation eased out to a tolerable extent, Mr. Mostafa Kamal had Meghna Group of Industries under the able leadership of its Chairman and Managing Director Mr. Mostafa Kamal. oreseen the necessity of industrial development of the country. As the economy of the country is based mainly on agriculture, he felt the necessity to develop food processing industry that would help reduce import dependency of the country. So he established edible oil refineries to produce refined palm and soybean oil locally. Mr. Mostafa Kamal selected the site around the embankment of the river Meghna, which is one of the major rivers in Bangladesh, as his industrial park due to better communication facility. He then established his first industrial unit – Meghna Vegetable Oil Industries Ltd., in 1990. Gradually he developed and established other food and edible oil processing industries one after another in quick succession. This has now turned to a fast growing industrial conglomerate named as

The  group produces most essential commodities like Cement, Milk Powder, Soyabean Oil, Palm Oil, Sugar, Mustard Oil, Coconut Oil, Natural Flour (Atta), Refined Flour (Maida), Semolina (Suji), Salt, Spices, Steering ( Dalda), Margarine (Ghee), Mineral Water, Tea, Poultry and Fish Feeds, P.P. Woven Bag, Duplex board, Liner paper etc. in its own industrial park, located at Meghnaghat, Sonargaon, Narayangonj. It also has a large trading wing engaged in bulk trade of commodities and chemicals such as Wheat, Corn, Sugar, Dun Peas, Chick Peas, Yellow Peas, Rape Seeds, Mustard Seeds, PP Resin, Pet Chips, Soda Ash Light, Caustic Soda Solid/Flakes, Tallow, Oleic Acid and many other raw materials for use in its industries. 

The Group has its own Power Plant of 60 MW capacity to meet its power requirement. United Sugar mills Ltd. is the latest entrant in the Meghna Group with a production capacity of 1000 MT sugar per day. Tanveer Paper mills, the latest edition of this family is capable of producing 120 MT duplex boards and liner paper everyday. The group has  established  a power  plant named  Unique  Power Plant Ltd. - I of 28 MW capacity engineered by world famous Rolls-Royce Marine AS to  meet its own power requirement and also to supply to REB and neighboring  industries. It has no.  II unit having  6 MW capacity to run its sugar industry and meanwhile there has  been  an agreement  with REB to supply 3 MW from this plant to REB grid. Another 25 MW capacity power plant is under implementation.

The group has about ten thousand (10000) permanent & casual employees. Its annual turnover is approximately TK. 4000 crore (around US$ 600.00 Million) and it has thus contributed much to the industrialization and development of the socio-economic condition of the country in terms of reducing unemployment, saving valuable foreign currency and reducing import dependencies and earning foreign currencies through exports of its products .

For the uncompromising product quality and strong management policy most of the industrial units of the Meghna Group has been awarded ISO9001; 2000 certification. The group has been awarded the Nawab Sir Salimullah Gold Medal presented by the Honorable President of the People’s Republic of Bangladesh for its magnificent performance in the industrialization of the country and also awarded the International Star Award for Quality (ISAQ) in Gold Category by BID (Business Initiative Directions) in Geneva in October, 2005 for commitment to Quality and Excellence. BID based in Spain has also awarded the Group with World Quality Commitment Award in Platinum Category in Paris, 2006 and Quality Summit Award in Diamond Category in New York, 2007 for outstanding performance in Quality Commitment and industrialization.

Mr. Mostafa Kamal Chairman and Managing Director of the Meghna Group being the main architect of the industrial park has also established different schools, colleges, mosques and madras has to offer free education to the people for uplifting their lifestyle and socio economic condition in both general as well as religious sector.

Mission & Vision

The Mission of MGI as a private sector investor is to foster industrial entrepreneurship in the country by supplementing public sector through new and innovative business idea and thereby to enhance pace of industrialization towards a tangible socio-economic development of Bangladesh.

The Vision of MGI is to become a leading industrial group of the country starving to make Bangladesh self-sufficient in producing various consumer and industrial goods. MGI is also looks for becoming a market leader in matters of quality products and satisfaction of customers through competitive prices and services.

Objectives

·         To supplement public sector efforts in the industrialization of the country.

·         To produce quality consumer and industrial goods particularly for day-to-day use and human consumption in an affordable price.

·         To earn foreign currency through export of finished products.

·         To reduce import dependencies of the country.

·         To generate employment and reduce poverty.

·         To promote socio-economic development of the country.

·         To ensure effective human resource management towards achieving the goals and objectives of the group.

·         To help develop professional efficiency and specialization of MGI staff through training.

·      To develop MGI as a market leader in quality products and competitive prices          and services.

·      To discharge Corporate Social Responsibilities (CSR) by promoting education, assisting natural disaster affected people and sponsoring games and sports and cultural events.

Core competencies

·         Uncompromising product quality for the utmost satisfaction of the consumers.

·         Delivery of goods/products with highest care and perfect packaging/manner. Well qualified and experienced personnel/staff suited for specific jobs/tasks engaged at each level of management and production.

·         Effective human resource management prioritized for optimum and efficient performance and production.

·         On the job training at home and professional training abroad for HR development.

·         Efficient administration and personnel management with virtually no staff turnover.

·         Excellent relationship between the management and the employees.

·         Excellent and conducive environment at the working place.

·         Maintenance of excellent liaison and relationship with govt. ministries and departments, financial institutions and fellow industrial groups/companies.

·         Issue of gender balance well addressed.

·         Sound financial position and policy ensuring transparency at all levels.

Management

The Board of Directors comprises the following personalities:

Mr. Mostafa Kamal                       Chairman & Managing Director

Ms. Beauty Akhter                        Director

Miss. Tahmina Binthe Mostafa    Director

Miss. Tanjima Binthe Mostafa     Director

The executives involved in the running of the group are; 

Name                                                               Designation            Profile

Mr. Mohd. Jashim Uddin                                Executive              Company Affairs

              Director

Mr. S M Muzibur Rahman, FCA                     GM                       Finance & Accounts

Mr. Kartick Chandra Das                                GM                       Technical

Lt. Col. Md. Quaderuzzaman (Retd)              GM                       Administration (Factory)

Mr. Md. Abu Zafar                                          GM                       Consumer Goods

Mr. Abu Mohammad Habibullah                    GM                       Administration (Head

                                                                                                      Office)

Mr. Md. Harun-Or-Rashid                              GM                       Marketing (Fibre &

                                                                                                      Feeds)

Mr. Khandakar Ataur Rahman                        GM                       Marketing (Cement)

Mr. Afzal Hossain                                           GM                       Foreign Trade

Eng. Md. Harun-Or-Rashid                             GM                       Project

Lt. Col. Saiful Islam, E. Bengal, MBA           GM                       Logistics

(Retd)

Mr. S.M. Zahirul Huq                                      In-charge              Procurement

Mr. Yousuf Ali, ACMA                                  Sr. DGM               Cost & Budget

Lt. Commander M. Sahadat Hossain (Rtd.)   DGM                    Shipping

Mr. Pronob K. Majumder, ACMA                  DGM                    Accounts

Mr. Md. Noor Islam, ACMA                          AGM                    Accounts

Mr. Md. Zakir Hossain                                    Head of IT            IT

Mr. Md. Hasan Imam                                      Sr. Manager          Ad & Creative

The Group

The Meghna Group of Industries comprises the following units:

Consumer Goods:

• Tanveer Dal Mill & Flour Mills Ltd.
• Meghna Tea Company.
• Tanveer Mustard Oil Mill and Coconut Oil Mills Ltd.
• United Sugar Mills Ltd.
• United Edible Oils Ltd
• United Mineral Water & PET Industries Ltd.
• United Salt Industries Ltd.
• Tanveer Oils Ltd.
• Tanveer Food Ltd.
• Janata Flour & Dal Mills Ltd.

Cement:

• Unique Cement Industries Ltd.

Paper:

• Tanveer Paper Mills Ltd.

Packaging & Printing:

• M. M. Printing & Packaging Co. Ltd.
• United Fibre Industries Ltd.
• Tanveer Polymer Industries Ltd.

Power & Electricity:

• Unique Power Plant Ltd.
• Everest Power Generation Co. Ltd.

Poultry & Fish Feed:

• United Feeds Ltd.

Steel:

• Tanveer Steel Mills Ltd.

Shipping, Logistics & Transport:

• Mercantile Shipping Lines Ltd.
• G. Shipping Lines Ltd.
• United Shipping Lines.
• United Dockyard & Ship Builders.

Housing:

• Meghna Properties Ltd.

Others:

• Kamal Trading Co.
• Kamal Imports & Exports Ltd.
• Everest CNG Refueling & Conversion Ltd.

 Products of MGI

“FRESH” is the brand name of most of the consumer products of Meghna Group of Industries. This branding scheme descends from the “family branding strategy”.

 Meghna Products are distributed through an effective nationwide marketing network. It enjoys the services of an efficient marketing force, positioned at strategic points in the national network from the East to west and north to south, rather say, form Teknaf to Tetulia.

The products manufactured in different units are as follows:

• FRESH brand Full Cream Milk Powder
• FRESH brand Sugar
• FRESH brand Atta, Moida (Flour) and Suji (Semolina)
• FRESH brand Spices (Chilli, Turmeric, Coriander, Cumin Powder)
• FRESH brand Tea
• FRESH brand Iodized Salt
• FRESH brand Super Refined Soybean Oil
• FRESH brand Super Refined Palm Oil
• FRESH brand Steering and Margarine
• FRESH brand Mustard Oil
• FRESH brand Coconut Oil
• FRESH brand Ordinary Portland Cement
• FRESH brand Poultry Feed
• FRESH brand Fish Feed
• SUPER FRESH brand Soybean Oil
• SUPER FRESH brand Vegetable Oil
• SUPER FRESH brand Mineral Water
• PURE Brand Vegetable Oil
• SUPER PURE brand Soybean Oil
• SUPER PURE brand Vegetable Oil
• GOLAP Brand Mustard Oil
• Poly-propylene Woven Bags
• Electricity

                        

Future plan

For the scarcity of electricity many production firm can not produce their product timely. So MGI is going to start their two power plant project. One is Unique Power Plant Ltd. (1) and another is Unique Power Plant Ltd. (2). The two plants will produce more than 33MW electricity by which they can meet there own need and sale the surplus power to the nearby industries.

The MGI is also implementing another power plant namely Everest Power Generation Company Ltd. under SPP 25.7 MW capacity at a cost of 120 crores.

THE SOCIAL COMMITMENTS

To meet the necessity of the society Mr. Mostafa Kamal has immense contribution towards social needs. The group has not only focused on building new and better industries aimed at providing employment to hundreds of skilled and unskilled labor but at the same time has worked towards establishing of Hospitals, setting up of schools, colleges, madrasas and orphanages so that people could get better education and health facilities.

These institutions, established and run by Mr. Mustafa Kamal, have helped in improving the standard of education and health care in both Dhaka city and as well as in remote areas of Bangladesh.

FINDINGS & ANALYSIS

OB Practices in Meghna group 

As a big organization this organization always uses OB because it has many employees and OB teaches everyone how to manage the employees and how to manage the conflicts. Without practicing OB, it is hardly possible to manage organization because OB comes to continue the organization by managing conflicts and other obstacles.

This organization has many levels. Every levels it is using OB because there are many conflicts among the employees. From the top level to lower level it is using OB. Here OB is most useful. Sometimes, it is seen that by discussion it is not possible to reduce the problem, here they use OB. OB is the only way   which can solve the problem.

In most cases, the managers are using OB more because they are the responsible to reduce problem. They are careful about OB.  It may true that all the managers don’t know that what is written in the books but they know how to apply OB because of contingency approach.

They are managing the conflicts as well as the politics. Politics is the part and parcel of the organization. It is important to manage the politics because politics is harmful. If there is s huge politics, the productivity will be decreased. So it is important to face politics by using OB. without OB it is not possible to manage politics.

Like politics, the employees create problems by willingly or unwillingly. Here OB is applicable. This organization always use the rules of OB. it is the key to run this organization. If they can’t use OB, it is not possible to reduce problem. Only OB is   the study which can help to reduce any kind of problem. Like upper class managers lower class managers use OB too. They raise the productivity by using OB. 

Human behavior is always complex. It is not possible to satisfy all the employees. But OB is the only study which can take step to satisfy everyone.

Detailed Study of an OB Topic (Power and Politics)

What is organization politics?

When the employees of the organization are involved with politics for getting power or extra advantages by considering the organization or without considering the organization, it is called organization politics.

Purpose of politics:

When we have visited to this organization, we have studied about power and politics of this organization. This organization is a big and a number of employees are working here so politics is a part and parcel of daily activities of the employees. People can’t resolve politics but it can be managed. So for managing the politics, OB is needed.

It is said that absolute power makes a man corrupted absolutely. But it is seen that most of the people of this organization are getting power by doing politics. From the top level to lower level people are trying to get power. The main purpose of doing politics is to getting power. The people of the organization think that power is the only way which can retain them in this organization though the environment may not be their favorable.

In this organization, the employees are involved with politics. Many of them are the leader of labor union. They have absolute power. So that it is not possible to manager to discharge them from job because they are involved with politics. Here it is necessary to use OB to manage politics. 

Management is so much concern about the politics but they have no alternatives, as a result, they don’t interfere with employees’ politics but they are managing it with very cleaver. Sometimes it is seen that employees are attending in meeting which are held by the labor union. It is a great reason to decrease the productivity. So to overcome this problem this organization has made a step. They have said that they will give a annual bonus according to the employees performance. After announcing this statement, the employees are so much interested to increase productivity rather than politics. But it is true that this statement could not wipe out politics but could manage it no doubt.

Then we have talked to the employees, they have said that they have no conflict among them but if any conflicts arise the management come and solve it with carefully. Though there are a bit disagreement about politics between the management and the labors, both are satisfied with their work.    

How they manage political conflicts:

It is hardly easy to manage the politics in the organization because not all the employees like to be interacted by others. If the managers try to do something that the employees don’t like, the employees may be dissatisfied as a result the productivity will be decreased. Politics is like that which can makes them dissatisfied. 

When the managers see that employees are going to play absolute politics, they don’t directly interfere. Because they know that if they try to do that, employees can get the chance to movement. It’s the prime reason why they don’t interfere directly. Here managing the absolute politics is a major challenge to them.

As a result, they are playing some discipline steps to manage politics.

Step 1 (Discussion): when they see that the employees are playing too much politics and which makes a conflicts that can hamper the production, they make a discussion and try to search a solution.

Step 2 ( relationship): when they see that there are some employees who have already take the absolute power and whom are aware to join in the discussion because of absolute power, the top order managers make personal relationship with them. Because they think if they make a relationship with them, it is easy to achieve the goal of that organization.

Step 3 (vice versa): when they see that any employee is playing politics, the top manager is also playing political role on his politics to protect employee’s politics.

Conclusion

The OB practice in MGI is quite satisfactory. They are using different strategy to improve employee skill, improve job satisfaction, decrease turnover and made good organization member. The salary, bonus and other facilities providing to the employee is enough good. They are using different policies to control the employee behavior. As they have reward for good performance, they also have punishment for harmful work of the employee.

Recommendation

As MGI is an established organization its need to update its OB strategies. In some cases they are using the traditional method to justify and control their employee. So it may cause a big crisis for the organization. MGI also need to increase work for the society. The society expects a lot from the MGI.

References

• Meghana Group of Industries

Fresh villa, House # 15, Road # 34, Gulshan 1, Dhaka

• WWW.meghanagroup.biz
• info@meghanagroup.com
• Stepen P Robins & Timoty A. Judge “Organizational Behaviour” 13^th edition