Crown Cement champions worker welfare

Mollah Mohammad Majnu, Managing Director of Crown Cement PLC, one of Bangladesh's leading cement manufacturers, shares insights into the company's founding philosophy, growth trajectory, commitment to workers, and outlook for Bangladesh's cement industry in a candid interview with Shiabur Rahman of The Financial Express. The full version of the interview is as follows:

Question: Could you share with us the story of the founding and early years of Crown Cement?

Answer: Crown Cement's journey began as a family business rooted in a deep commitment to quality and service. My late father, Mohammad Khabiruddin Mollah, started with cement import and trade. He rose from humble beginnings and believed that no business can sustain itself in the long term without an uncompromising commitment to quality. We hold onto that principle as our cornerstone. I studied biochemistry at the University of Dhaka, which complements the technical side of cement production. The chemistry behind cement is quite complex, and having a technical understanding has helped us immensely in maintaining product quality. The Bangladesh Standards and Testing Institution (BSTI) allows for 27 different types of cement; currently, we are licensed to produce four types. We tailor our offerings to match the diverse needs of the market.

Q: What were some of the major challenges Crown Cement faced in its formative stages, and how did the company overcome them?

A: Like any new venture, we faced scepticism and stiff competition. Initially, many consumers were price-sensitive and often opted for cheaper options without verifying quality. We took it upon ourselves to educate the market on the importance of using high-quality cement, especially for long-term structural integrity. Another major challenge was logistics and the efficient supply of raw materials, all of which are imported. Over time, we streamlined our supply chain and invested in modern technology and quality assurance systems. Our consistency and customer education gradually won trust and helped us to grow.

Q: What is the guiding vision of Crown Cement today, and how has it evolved over the years?

A: Our vision has always been to be a partner in national development. We want to be more than just a cement company. We aim to be an enabler of dreams, whether it's building homes, roads, or megaprojects. From the very beginning, we have focused on three pillars: quality, innovation, and social responsibility. Over time, we've also embraced sustainability and technological excellence. As the market matured, we adapted with it, shifting from just being a supplier to becoming a solution provider.

Q: How does Crown Cement differentiate itself in a highly competitive market?

A: As I said we lay the highest emphasis on quality and that has set us apart. But beyond that, our commitment to social responsibility has become a defining characteristic. We were the first cement company in Bangladesh to take initiatives for worker safety and skill development. Additionally, we provide technical support for complex infrastructure projects. Crown Cement is recognised not just for product quality but also for reliability and service excellence.

Q: Could you please give us an overview of the cement industry in Bangladesh today and Crown Cement's share in the overall market?

A: The current cement market in Bangladesh is estimated at around 40 million tonnes annually. Per capita consumption stands at 210 kg, significantly lower than neighbouring countries. India, for instance, averages 400 kg, and in China, it's nearly 1,700 kg. Given our population density and the increasing trend toward vertical housing, we foresee per capita consumption rising to at least 800 kg in the foreseeable future. The combined installed capacity of Bangladesh cement industry is around 80 million tonnes against the annual demand of40 million tonnes. Crown Cement is proud to be among the top players accounting for more than10 percent of the market share.

Q: Your company pioneered cement export from Bangladesh. How was your experience in those markets? How can other companies follow you in export?

A: Cement export from Bangladesh was initiated by Crown Cement and we are the only company to receive three National Export trophies from the government. We primarily export to India's north-eastern states, which are logistically closer to Bangladesh than to mainland India. These states are landlocked and depend heavily on imports for construction materials. The opportunity is clear-what takes 30 days to deliver from India's mainland can be done in a day from Bangladesh. However, we lack government support in the form of export incentives. A law passed few years ago promised export duty rebates, but we have yet to receive them. If these issues are resolved, there is considerable opportunity for others to enter the export market. Additionally, we are exploring new markets in Bhutan and Nepal.

Q: The combined installed production capacity of cement factories is double the local demand. Do you think it as a challenge or as an opportunity?

A: It's both a challenge and an opportunity. While overcapacity can strain pricing and margins, it also positions us well for future demand growth. Bangladesh still has a significant housing gap, and the necessity of vertical expansion due to land scarcity means cement will remain a critical material. Even building a modest home requires a considerable amount of cement. So, in my view, the market will continue to grow. Moreover, our strategic location and access to ports allow us to leverage regional export opportunities and transform this overcapacity into a strength rather than a liability.

Q: Your company was the first among cement manufacturers to work on workers' safety and their skill development. What was your experience in that effort?

A: The construction industry is inherently hazardous. It is prone to accidents and cement, being a chemical product, can cause skin and respiratory issues if not handled properly. We launched our "Nirmane Nirapotta" campaign to improve safety awareness. We conduct workshop on safety at construction sites and safety briefing session at contractor & mason meet program to increase awareness about workplace safety. We provide personal protective equipment including helmets, gloves, goggles, and safety boots among contractors and masons. Beyond that, we offer financial support up to 1 lac taka in case of injury or fatality taking place at construction sites. Over 80,000 workers are now registered under this initiative. It's not just CSR-it's our responsibility. This programme has also increased productivity and loyalty among workers, reinforcing the value of investing in human capital.

Q: Do you have any plans for further capacity expansion or entry into new segments of the construction material sector?

A: Yes, we are actively exploring concrete production and other allied segments. With increasing demand for stronger and more resilient construction materials, diversification is both a necessity and an opportunity. We also plan to invest in energy-efficient technologies and automation to enhance both output and quality. Furthermore, we are considering entry into prefabricated building components, which could revolutionize the construction process in Bangladesh.

Q: The local cement sector has been facing numerous challenges, higher raw material prices, and economic slowdowns. How has Crown Cement been addressing these challenges?

A: All our raw materials are imported, and fluctuations in global markets have a direct impact on our costs. The government's current tax policies, especially the practice of collecting advance income tax based on projected profits, add to our burden. It's unrealistic to assume a high profit margin in this industry. Add to that high interest rates, the situation becomes even more challenging. We are advocating policy reforms that reflect the real dynamics of the industry.

Q: As a leading player in the cement sector, what are your expectations from the next fiscal year's national budget?

A: We expect the government to reassess its tax policies. The advance income tax system needs reform. Cement should be recognised as a necessity, not a luxury. Additionally, we urge the government to consider reducing bank interest rates to encourage investment and expansion in manufacturing. Infrastructure development must also be prioritised in the national budget, as it directly stimulates cement demand and, by extension, economic growth.

Q: Do you have any specific recommendations regarding government policies or fiscal measures that may support the cement industry?

A: Yes, first, the government should streamline export incentives and remove bottlenecks in duty refunds. Second, it should abolish or rationalise advance income tax mechanisms that hurt our cash flow. Third, we need to address the high cost of capital through monetary policy adjustments. Without these changes, even socially responsible businesses will struggle to survive. Moreover, long-term industrial policy should promote green manufacturing practices, for which cement factories should receive grants and tax credits.

Q: What innovations or technological upgrades is Crown Cement focusing on to remain competitive and environmentally responsible?

A: We are committed to sustainability and efficiency. This includes adopting waste heat recovery systems, and reducing clinker factor in cement. Automation systems are also being integrated to ensure quality and minimise waste. Our goal is to align profitability with planet-friendly practices.

Q: Looking ahead, where do you see Crown Cement and Bangladesh's cement industry in the next five years?

A: I believe the industry is going through major transformation. As infrastructure development continues and urbanisation accelerates, the demand for cement will rise significantly. Crown Cement will continue to lead through quality, innovation, and social responsibility. We envision a future where Bangladeshi cement brands are not just local champions but respected global players.

Q: Do you have any message you wish to convey to your customers, shareholders, and employees?

A: We wish to say to our valued customers, "thank you for believing in our brand and our mission." To our shareholders we would like to say, "we are dedicated to long-term value creation." And to our hardworking employees and partners, we would say, "your commitment is the backbone of our success."

Let's continue building a stronger, safer, and more prosperous Bangladesh together. We are in this journey not just as a company, but as a contributor to the nation's future.

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