KYCR Coil Industries Ltd. - Dhaka Stock Exchange

efficient production capabilities. These competitors may limit the opportunity of the Company to
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condition and prospects of the Company could be adversely affected if it is unable to compete
with its competitors and sell its products at competitive prices.
Management Perception
Few companies with famous brands are the key players in the industry. The Company markets
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market share in the industry. Besides, it has established the brand name across various
territories in the country that is believed to be a positive indicator for the Company in order to
grasp more market shares in the near future.
4. Technology
The technology used for manufacturing of steel determines not only the quality of steel
produced but also the cost of production. The more sophisticated the manufacturing process, the
lower will be the cost of production and therefore, higher the profitability.
Management perception
Highly automated and competitive machineries are available with the company for the
manufacturing of steel. In Bangladesh, the Company has so far been one of the pioneers in
setting up Cold Rolled Mill with State of the Art European Technology for further processing of
the input materials. Moreover, the company has NOF plant that gives the Company a
competitive edge as galvanization of steel is carried out rarely by companies in Bangladesh.
5. Potential and Existing Government Regulations
The company operates under The Companies Act, Taxation Policy adopted by NBR, Regulations
of Securities and Exchange Commission (SEC) and rules adopted by other relevant regulatory
organizations. Any abrupt changes in the policies formulated by those bodies may leave adverse
impact on the business of the Company.
Management perception
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operation and hence affect the profitability in turn. The management of the Company is aware of
the recent guidelines prescribed by all the relevant authorities and complies with such from time
to time whilst enhancing the performance of the Company.
6. Raw materials supply
Steady supply of raw materials is important to the steel industry since steel manufacturing is a
continuous process. Companies which have control on over supply of their raw materials are
more capable of being cost efficient than the others which do not possess such control. The
control on over supply could be in the form of long-term supply contracts with suppliers.
Management perception
Management has long years of experience in this arena and also they have maintained a very
strong positive relationship with various suppliers (Large Supplier Base) where raw materials are
sourced at competitive prices. Main raw material of KYCR is the Hot Rolled Sheet and Zinc which
are imported from different sources. Over the last decade, the company has enjoyed continuous
flow of supply of raw materials in time and it has nevertheless forecasted better improvement in
the near future. For ensuring regular supply, the Company has MOU with leading global
suppliers like POSCO and HYUNDAI.
7. Power and Other Utilities
Power is an important factor in the steel manufacturing industry. Interruption of power supply
affects the flow of steel manufacturing. Companies with uninterrupted power supply can get
competitive edge over their competitors if such supply is in shortage in the overall industry.