Notes on understanding the entityBackgroundMcDonald Steel Building products ltd. (MSBPL) is the pioneer in pre-engineered steel building construction in Bangladesh. McDonald has experience in Pre-Fabricated Steel Buildings for about twenty years & established its own production facility in 1998. It was first in Bangladesh to deliver pre-engineered building solutions through the delivery of high quality support services, industry leading expertise and a strong commitment to improve overall performance in the industry.

ProductsThe Company delivers products related to pre-engineered and structural steel buildings from its factory located in Gazipur. The Company produces a range of steel products for the following structures: Factory Buildings Warehouses Power Plant Shed Gymnasiums Poultry and Dairy Farms Cold Storages Railway Platform Shed Office and Residential Multi storied Buildings High Rise Shopping Centers Showrooms Supermarkets Distribution Centers Aircraft Hangers Exhibition Halls Labour Camps Entertainment Parks School and College Low cost housing Steel Mills Hospitals Diagnostic Centers Bridge Girders Water Towers Steel Platforms Steel Over Bridges Steel Stairs Various other usages

CustomersThe Companies target customers are generally industrial undertakings. The major target customers are companies in the garments sector, but the Company also manufactures steel structures for government structures, hospital buildings, commercial buildings etc. The marketing department of the Company assesses and selects its customers based on market information that is collected by its employees (criteria of selection: reputation, size of project, historical payment tendencies).The following outlines a list of major clients of the Company: ACI Formulation Ltd. City Group Berger Paint Bangladesh Ltd. Coats Bangladesh Ltd. Jamuna Bridge Project (all facility buildings) Kallol Group Lafarge Surma Cement Plant Square Pharmaceuticals Ltd ViyellatexApproximate number of clients: 326.

CompetitorsFrom our preliminary discussion with the management, we have gauged that the industry for pre-fabricated steel structures is highly competitive. It has been historically seen that former employees of the company go on to create other competitor companies and those are the ones leading the market. The Company assumes that it holds the fifth position concurrently, in spite of being a pioneer in this field.The major competitors are listed as follows according to their market share:1. Buildtrade2. Sarker Steel3. Bangladesh Building System4. PEB Steel Alliance Limited

SuppliersThe suppliers of the company supply the basic raw materials such as Bondek, Colorbond-XRY, Mild Steel Plate, Purlin Feed Raw etc. Most of these raw materials are imported from overseas; the color sheets are imported from India and MS plates are usually imported from Japan. Some of the items are also procured locally, but this amount is insignificant.The key suppliers from whom the Company procures its raw materials are as follows: 1. Nippon Steel & Sumikin Bussan Corporation, Japan.2. Tata Bluescope Steel Limited, India.3. ArcelorMittal International Luxembourg S.A.Joint venture with supplierIn 2014, McDonald Steel Building Company has formed a joint venture Nippon Steel & Sumikin Bussan Corporation, Japan. The joint venture was formed with the intention of trading MS Steel plates in the local market.